Financial Performance - As of September 30, 2025, CubeSmart has a total of 1,523 properties and an enterprise value of $12.7 billion, with a 5-year total shareholder return of 65%[3] - The company achieved a 56% growth in Funds From Operations (FFO) per share, as adjusted, over the past five years, and a 59% increase in dividends during the same period[3] - CubeSmart's same-store Net Operating Income (NOI) has a compound annual growth rate (CAGR) of 6.8% over the last five years[3] - The company generated $41 million in management fee revenue from 863 properties, enhancing profitability through additional revenue streams[21] - FFO per share growth has consistently outperformed the peer average over the past three years, with a sector-leading expense control that is 300 basis points lower than peers[26] - The annual dividend per share has increased by 273% since 2014, with 15 consecutive years of dividend increases[27] - The company has generated a 10-year total shareholder return of +182%, outperforming the peer average of +168%[28] Market Position and Strategy - The company has a diversified portfolio with 91% of its owned NOI coming from the top 40 metropolitan statistical areas (MSAs) across 41 states and Washington D.C.[11] - CubeSmart's focus on quality markets with strong demographics supports stable long-term demand trends and cash flow stability[12] - The New York City market shows a competitive advantage with the lowest supplied market at 2.6 square feet per capita, significantly below the national average of 7.8 square feet per capita[13] - CubeSmart's strategic joint ventures have resulted in $900 million in acquisitions, with 47 properties currently in existing ventures[19] - The company focuses on acquiring high-quality assets in markets with strong demographics and demand trends, aiming for long-term value creation[16] Growth and Development - CubeSmart's acquisition volume over the past five years totals $2.8 billion, indicating a strong growth strategy through acquisitions[3] - CubeSmart's consolidated acquisitions since 2010 total $6.1 billion, with $2.1 billion from third-party management, and 76% of acquisitions located in top-25 MSAs[18] - The company has achieved a 231% increase in stores on the platform since 2010, with a customer base growth of 608,000, reaching a total of 799,000 customers[17] - CubeSmart's new development delivered amounts to $764 million, with $19 million in projects currently in the pipeline, all located in top-10 MSAs[20] - A total of 109 stores were added to the third-party management platform, with 863 stores under management as of September 30[24] Financial Health - The company has a Baa2/BBB credit rating, reflecting a solid financial position and investment-grade status[3] - CubeSmart's debt maturity schedule shows a net debt to EBITDA ratio of 4.7x and a fixed charge coverage ratio of 5.6x, indicating a disciplined balance sheet strategy[23] - The company has a weighted average interest rate of 3.36% and 100% of its debt is fixed rate, ensuring stability while funding growth[23] Operational Efficiency - The operational platform is designed to maximize property cash flows and includes dynamic pricing strategies to optimize revenue[14] - The company has implemented a sophisticated technological platform to enhance customer service and operational efficiencies[14] - CubeSmart's mobile app enhances customer interaction, contributing to revenue maximization through individually optimized customer rate increases[1] Future Projections - Same-store revenue growth for 2025 is projected to be between 1.00% and 2.00%[24] - Same-store expense growth is expected to range from (1.75%) to (0.75%) for the same period[24] - The same-store occupancy rate was reported at 88.6%, reflecting a decrease of 70 basis points year-over-year[25] Recent Transactions - The company acquired the remaining 80% interest in the HVP IV joint venture for $452.8 million, including $44.4 million to repay the venture's debt[24] - The average portfolio occupancy at the time of acquisition for newly developed stores was 91.1%[22]

Group 1 - The company High Yield Landlord is offering new members a promotion of $100 off and a 30-day money-back guarantee to encourage sign-ups at the beginning of 2026 [1] - High Yield Landlord has released its Top Picks for 2026, suggesting a strategic focus on identifying promising investment opportunities for the upcoming year [1] Group 2 - Jussi Askola, the President of Leonberg Capital, leads the investing group High Yield Landlord, which specializes in REIT investing and provides real-time updates on portfolio transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and a chat room for direct interaction with Jussi and his team of analysts [2]

Core Points - CubeSmart announced a quarterly dividend of $0.53 per common share for the period ending December 31, 2025, payable on January 16, 2026, to shareholders of record on January 2, 2026 [1] - The company has achieved its 16th consecutive annual increase in dividends, highlighting its commitment to returning value to shareholders [1] - CubeSmart is recognized as one of the top three owners and operators of self-storage properties in the U.S., managing 1,527 self-storage properties nationwide [1] Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust (REIT) focused on self-storage properties [1] - The company's mission is to address organizational and logistical challenges faced by customers through innovative solutions and exceptional service [2] - CubeSmart's self-storage facilities are designed to be affordable, easily accessible, and often climate-controlled, catering to both residential and commercial customers [2]

Group 1 - CubeSmart (NYSE:CUBE) is recognized among the 15 Dividend Stocks with a yield of over 4% for 2025 [1] - Mizuho analyst Ravi Vaidya has reduced the price target for CubeSmart from $43 to $38, maintaining a Neutral rating, citing disappointing performance expectations for 2025 [2] - The company reported positive move-in rates in its same-store portfolio for the first time since Q1 2022, attributing this to a favorable pricing environment and customer support [3] Group 2 - In Q3 2025, CubeSmart's same-store occupancy averaged 89.9%, ending at 89%, and the company opened a new development property costing $18.1 million [4] - CubeSmart added 46 stores to its third-party management platform, bringing the total to 863 managed stores [4]

Core Viewpoint - The article discusses the selection of Real Estate Investment Trusts (REITs) for a long-term investment horizon of ten years, indicating that the choice of REITs would vary significantly based on market conditions and individual investment strategies [1] Group 1 - The question posed by a reader highlights the importance of long-term investment strategies in the REIT sector [1] - The author suggests that the selection of REITs is influenced by various factors, including market trends and economic conditions [1]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with other industries such as consumer discretionary, REITs, and utilities [1]

Group 1 - The company has received over 500 five-star reviews from satisfied members, indicating strong customer satisfaction and perceived value [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - New members can gain immediate access to the latest top investment picks and receive a discount of $100 upon joining [2] Group 2 - Jussi Askola, the President of Leonberg Capital, is a recognized expert in REIT investing, having authored award-winning academic papers and passed all three CFA exams [3] - Leonberg Capital provides consulting services to hedge funds, family offices, and private equity firms, focusing on value-oriented investment strategies [3] - The investing group High Yield Landlord, led by Jussi Askola, offers features such as multiple portfolios, buy/sell alerts, and direct access to analysts for real-time investment insights [3]

Core Insights - Current market conditions suggest it is a favorable time to invest in Real Estate Investment Trusts (REITs) due to stable core and headline inflation rates at 3.0% [1] - A significant majority, 75% of investors, anticipate a decrease in the Fed Funds rate, which could further enhance the attractiveness of REIT investments [1] Investment Focus - The article emphasizes the importance of investing in income-producing asset classes, particularly REITs, which provide reliable income, diversification, and act as a hedge against inflation [1]

Core Insights - CubeSmart, a real estate investment trust, reported Q3 2025 earnings with FFO of $0.65, meeting expectations, while revenues of $285.08 million exceeded the consensus estimate of $281.65 million [2] - The company maintains a dividend yield of 5.58%, having paid $2.08 per share in dividends over the last 12 months [1][2] - For the full year 2025, CubeSmart estimates EPS to be between $1.46 and $1.50, and FFO per share between $2.56 and $2.60 [3] Financial Performance - The stock price of CubeSmart has fluctuated between $34.24 and $50.70 over the past 52 weeks [1] - The CEO noted that coastal and urban markets performed strongly, while sunbelt properties faced trade-offs between rate and occupancy [3] Dividend Insights - To earn $100 per month from CubeSmart dividends, an investment of approximately $21,505 is required, based on the current dividend yield [4][5] - The calculation for dividend yield is based on annual dividend payments divided by the stock's current price, which can fluctuate over time [5][6]

Company Overview - As of September 30, 2025, the company owned 660 self-storage properties with approximately 48.2 million rentable square feet, compared to 631 properties with 45.8 million rentable square feet as of December 31, 2024[124]. - The company managed a total of 1,523 stores, including 863 stores for third parties, as of September 30, 2025[124]. - The company acquired 28 stores in 2025, increasing the total from 631 at the beginning of the year to 660 by September 30, 2025[145]. - The company focuses on maximizing internal growth opportunities while selectively pursuing targeted acquisitions and developments of self-storage properties[128]. Revenue and Occupancy - For the nine months ended September 30, 2025, stores in New York, Florida, Texas, and California contributed approximately 17%, 14%, 11%, and 10% of total revenues, respectively[129]. - Total revenues increased from $270.9 million for the three months ended September 30, 2024, to $285.1 million for the three months ended September 30, 2025, an increase of $14.2 million, or 5.2%[150]. - Total revenues increased from $798.5 million for the nine months ended September 30, 2024 to $840.4 million for the nine months ended September 30, 2025, an increase of $41.9 million, or 5.2%[157]. - Period end occupancy decreased from 89.7% for the three months ended September 30, 2024, to 88.6% for the three months ended September 30, 2025[150]. - The company experienced seasonal fluctuations in occupancy levels, typically higher during summer months due to increased moving activity[126]. Financial Performance - Net income attributable to the company's common shareholders decreased from $100.8 million for the three months ended September 30, 2024, to $82.9 million for the three months ended September 30, 2025, a decrease of $17.9 million, or 17.7%[150]. - Funds from operations (FFO) attributable to common shareholders and third-party OP unitholders was $149.0 million for the three months ended September 30, 2025, compared to $153.0 million in 2024[191]. Expenses - Property operating expenses increased from $81.9 million for the three months ended September 30, 2024, to $90.8 million for the three months ended September 30, 2025, an increase of $9.0 million, or 11.0%[151]. - Depreciation and amortization increased from $51.2 million for the three months ended September 30, 2024, to $66.7 million for the three months ended September 30, 2025, an increase of $15.5 million, or 30.2%[152]. - General and administrative expenses increased from $14.3 million for the three months ended September 30, 2024, to $16.5 million for the three months ended September 30, 2025, an increase of $2.2 million, or 15.7%[153]. - Interest expense on loans increased from $22.8 million during the three months ended September 30, 2024, to $29.4 million during the three months ended September 30, 2025, an increase of $6.6 million, or 29.1%[154]. Debt and Financing - The average outstanding debt balance increased from $2.94 billion during the three months ended September 30, 2024, to $3.44 billion during the three months ended September 30, 2025[155]. - The weighted average effective interest rate on outstanding debt increased from 2.99% during the three months ended September 30, 2024, to 3.32% for the three months ended September 30, 2025[155]. - The average outstanding debt balance increased from $2.97 billion during the nine months ended September 30, 2024 to $3.35 billion during the nine months ended September 30, 2025[161]. - The weighted average effective interest rate on outstanding debt increased from 3.01% during the nine months ended September 30, 2024 to 3.28% for the nine months ended September 30, 2025[161]. - The company issued $450.0 million in unsecured senior notes due November 1, 2035, with an interest rate of 5.125%[173]. - As of September 30, 2025, the total outstanding unsecured senior notes amounted to $3,250.0 million, net of discounts and loan procurement costs[175]. - The company has an $850.0 million unsecured revolving credit facility maturing on February 15, 2027, with an effective interest rate of 5.27% as of September 30, 2025[177][178]. - The company reported net income attributable to common shareholders of $82.9 million for the three months ended September 30, 2025, compared to $100.8 million for the same period in 2024[191]. - The company had $849.3 million available for borrowing under the Revolver as of September 30, 2025, reduced by outstanding letters of credit totaling $0.7 million[178]. Cash Flow - Cash provided by operating activities increased from $466.4 million for the nine months ended September 30, 2024 to $472.0 million for the nine months ended September 30, 2025, reflecting an increase of $5.6 million[162]. - Cash used in investing activities increased from $72.9 million for the nine months ended September 30, 2024 to $513.0 million for the nine months ended September 30, 2025, reflecting an increase of $440.1 million[163]. - Cash provided by financing activities changed from a use of $356.4 million for the nine months ended September 30, 2024 to a provision of $78.0 million for the nine months ended September 30, 2025, reflecting a change of $434.4 million[164]. - As of September 30, 2025, the company had approximately $108.4 million in available cash and cash equivalents[172]. Market Sensitivity - The company's operating results are sensitive to changes in economic conditions that impact consumer spending, which could affect growth and profitability[127]. - A 100 basis point increase in market interest rates would decrease the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $125.3 million[198]. - Conversely, a 100 basis point decrease in market interest rates would increase the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $133.0 million[198]. - Changes in market interest rates affect the variable portion of the debt portfolio, impacting interest incurred and cash flows[197]. - The fixed portion of the debt portfolio is not affected by changes in market interest rates regarding interest incurred or cash flows[196].