[Explanatory Note](index=2&type=section&id=Explanatory%20Note) This report combines the quarterly reports on Form 10-Q for CubeSmart (the "Parent Company") and CubeSmart, L.P. (the "Operating Partnership"), detailing their nearly identical financial statements for clearer investor presentation - This report is a combined Form 10-Q for CubeSmart, a REIT, and its operating entity, CubeSmart, L.P[4](index=4&type=chunk) - As of September 30, 2022, the Parent Company (CubeSmart) **owned a 99.4% interest** in the Operating Partnership[5](index=5&type=chunk) - The primary substantive difference between the two entities' financial statements is the treatment of equity, as the Parent Company has publicly traded equity while the Operating Partnership does not[8](index=8&type=chunk) [Part I. Financial Information](index=9&type=section&id=Part%20I) [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CubeSmart and CubeSmart, L.P. for the periods ended September 30, 2022, including balance sheets, statements of operations, comprehensive income, equity/capital, cash flows, and detailed notes [Consolidated Financial Statements (CubeSmart & CubeSmart, L.P.)](index=9&type=section&id=Consolidated%20Financial%20Statements%20%28CubeSmart%20%26%20CubeSmart%2C%20L.P.%29) Presents the consolidated balance sheets, statements of operations, comprehensive income, equity/capital, and cash flows for both CubeSmart (the Parent Company) and CubeSmart, L.P. (the Operating Partnership), reflecting their nearly identical financial positions due to the UPREIT structure CubeSmart Consolidated Balance Sheet Highlights (Unaudited) | Account | Sep 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Assets | $6,371,170 | $6,548,079 | | Total Liabilities | $3,446,907 | $3,549,699 | | Total CubeSmart Shareholders' Equity | $2,851,654 | $2,871,563 | CubeSmart Consolidated Operations Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2022 (in thousands) | Three Months Ended Sep 30, 2021 (in thousands) | Nine Months Ended Sep 30, 2022 (in thousands) | Nine Months Ended Sep 30, 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $261,408 | $212,564 | $748,637 | $600,652 | | Net Income | $113,440 | $90,569 | $210,300 | $184,250 | | Diluted EPS | $0.50 | $0.43 | $0.93 | $0.88 | [Notes to Unaudited Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations of the company's accounting policies and activities, including its UPREIT structure, acquisition and disposition activities, debt, risk management, and the impact of Hurricane Ian - The company operates as a self-managed REIT through an UPREIT structure, with CubeSmart as the parent and CubeSmart, L.P. as the operating partnership. As of September 30, 2022, the company **owned or partially owned 611 self-storage properties**[69](index=69&type=chunk)[172](index=172&type=chunk) - During the nine months ended September 30, 2022, the company acquired **three stores for an aggregate price of $75.7 million**[83](index=83&type=chunk) - On August 30, 2022, the HVPSE unconsolidated joint venture **sold all 14 of its stores for $235.0 million**, resulting in a **gain of approximately $114.1 million** for the venture[109](index=109&type=chunk) - The company **incurred $1.6 million in charges** during Q3 2022 related to damages from Hurricane Ian, based on initial assessments and insurance deductibles[159](index=159&type=chunk) - Subsequent to the quarter end, on October 26, 2022, the company amended and restated its **credit facility**, increasing the **unsecured revolver to $850.0 million** and extending the maturity to February 15, 2027[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, highlighting strong performance driven by acquisitions and same-store revenue growth, cash flow activities, liquidity, and capital resources [Overview](index=53&type=section&id=Overview) The company is an integrated self-storage REIT that owned 611 properties and managed 663 third-party stores as of September 30, 2022, focusing on internal growth and acquisitions in key markets like New York, Florida, California, and Texas - As of September 30, 2022, the company **owned 611 self-storage properties** and **managed an additional 663 stores** for third parties, bringing the **total portfolio to 1,274 stores**[172](index=172&type=chunk) - For the nine months ended September 30, 2022, stores in New York, Florida, California, and Texas contributed approximately **16%**, **15%**, **11%**, and **9%** of total revenues, respectively[179](index=179&type=chunk) [Results of Operations](index=59&type=section&id=Results%20of%20Operations) The company's results were significantly impacted by acquisition and development activities, with total revenues growing **23.0%** to **$261.4 million** and **Net Operating Income (NOI)** increasing **24.4%** to **$184.7 million** for Q3 2022, driven by higher rental rates and acquired properties Q3 2022 vs Q3 2021 Performance | Metric | Q3 2022 (in thousands) | Q3 2021 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $261,408 | $212,564 | 23.0% | | Total Net Operating Income (NOI) | $184,680 | $148,499 | 24.4% | | Same-Store NOI | $147,587 | $127,873 | 15.4% | | Net Income | $113,440 | $90,569 | 25.3% | Nine Months 2022 vs Nine Months 2021 Performance | Metric | 9M 2022 (in thousands) | 9M 2021 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $748,637 | $600,652 | 24.6% | | Total Net Operating Income (NOI) | $527,870 | $411,608 | 28.2% | | Same-Store NOI | $421,000 | $355,440 | 18.4% | | Net Income | $210,300 | $184,250 | 14.1% | - Same-store rental income for Q3 2022 **increased by $19.9 million** (**11.6%**) primarily due to higher rental rates, with **realized annual rent per occupied square foot** up **12.8%**[203](index=203&type=chunk)[204](index=204&type=chunk) - **Equity in earnings of real estate ventures** increased by **$45.7 million** in Q3 2022, primarily due to gains from the sale of **14 stores** by the HVPSE joint venture[212](index=212&type=chunk) - A **$1.6 million charge** related to Hurricane Ian damage was recorded in Q3 2022 and included in **property operating expenses**[215](index=215&type=chunk) [Cash Flows](index=66&type=section&id=Cash%20Flows) For the nine months ended September 30, 2022, **cash from operating activities** increased by **$103.6 million** to **$446.5 million**, while **cash used in investing activities** decreased by **$98.7 million** to **$31.2 million**, and **cash used in financing activities** increased by **$261.2 million** to **$420.4 million** Cash Flow Comparison (Nine Months Ended Sep 30) | Activity | 2022 (in thousands) | 2021 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $446,496 | $342,940 | $103,556 | | Net Cash used in Investing Activities | ($31,221) | ($129,949) | $98,728 | | Net Cash used in Financing Activities | ($420,389) | ($159,150) | ($261,239) | - The decrease in **cash used for investing** was driven by a **$43.3 million** reduction in development costs and a **$44.4 million** increase in **cash distributed from real estate ventures**[234](index=234&type=chunk) - The increase in **cash used for financing** was primarily due to a **$195.1 million** decrease in proceeds from the "**at-the-market**" **equity program** and an **$85.7 million** increase in **distributions paid to shareholders**[235](index=235&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash flow from operations, its **revolving credit facility**, and access to equity and debt markets, with **$5.2 million** in cash and **$663.4 million** available on its **credit facility** as of September 30, 2022 - As of September 30, 2022, the company had approximately **$5.2 million in cash** and **$663.4 million available under its revolving credit facility**[243](index=243&type=chunk) - The company maintains an "**at-the-market**" (ATM) **equity program**. During the first nine months of 2022, it **sold 0.1 million shares for net proceeds of $4.9 million**. As of September 30, 2022, **5.8 million shares remained available for issuance**[254](index=254&type=chunk) - On October 26, 2022, the company entered into a Second Amended and Restated **Credit Facility**, increasing its **unsecured revolver from $750 million to $850 million** and extending the maturity to February 15, 2027[255](index=255&type=chunk) [Non-GAAP Financial Measures](index=72&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, including **Net Operating Income (NOI)**, **Funds from Operations (FFO)**, and **FFO, as adjusted**, with Q3 2022 **FFO** at **$148.4 million** and **FFO, as adjusted**, at **$150.0 million** - **Net Operating Income (NOI)** is defined as total continuing revenues less continuing property operating expenses and is used to measure operating performance at the store level[256](index=256&type=chunk) - **Funds from Operations (FFO)** is defined per the Nareit White Paper as net income excluding gains/losses from property sales and real estate depreciation. **FFO, as adjusted**, further excludes items like acquisition costs and other non-recurring items[262](index=262&type=chunk)[266](index=266&type=chunk) FFO Reconciliation (in thousands) | Metric | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Income Attributable to Common Shareholders | $112,888 | $209,401 | | **FFO attributable to common shareholders and OP unitholders** | **$148,439** | **$410,021** | | Transaction-related expenses | — | $10,546 | | Property damage related to hurricane | $1,578 | $1,578 | | **FFO, as adjusted, attributable to common shareholders and OP unitholders** | **$150,017** | **$422,145** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with **$2.95 billion** in **fixed-rate debt** and **$86.0 million** in **floating-rate debt** as of September 30, 2022 - As of September 30, 2022, consolidated debt consisted of **$2.95 billion in fixed-rate notes and loans**, and **$86.0 million in floating-rate borrowings**[277](index=277&type=chunk) - A hypothetical **100 basis point** increase in market interest rates would **decrease future annual earnings and cash flows by approximately $0.9 million** from variable-rate debt[278](index=278&type=chunk) - A hypothetical **100 basis point** increase in market interest rates would **decrease the fair value of the company's outstanding fixed-rate debt by approximately $138.8 million**[279](index=279&type=chunk) [Item 4. Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO of both the Parent Company and the Operating Partnership, concluded that disclosure controls and procedures are effective, with no material changes in internal control over financial reporting during the most recent fiscal quarter - The Chief Executive Officer and Chief Financial Officer of both CubeSmart and CubeSmart, L.P. concluded that their respective disclosure controls and procedures are effective[283](index=283&type=chunk)[286](index=286&type=chunk) - No changes occurred in internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[284](index=284&type=chunk)[287](index=287&type=chunk) [Part II. Other Information](index=81&type=section&id=Part%20II) [Item 1. Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not involved in any legal proceedings, other than routine matters, that are expected to have a material adverse effect on its financial condition, results of operations, or cash flows - Other than routine actions, there are no pending legal proceedings against the company that are expected to have a material adverse effect[288](index=288&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity, noting that during Q3 2022, **952 common shares** were withheld to cover employee tax obligations, and no repurchases have been made under the **3.0 million share** repurchase program to date - The Board of Trustees approved a share repurchase program for up to **3.0 million common shares**, but no repurchases have been made under this program to date[291](index=291&type=chunk) - During Q3 2022, **952 common shares** were withheld to cover employee tax obligations related to vested restricted shares[290](index=290&type=chunk) [Item 5. Other Information](index=82&type=section&id=Item%205.%20Other%20Information) On October 26, 2022, the company amended and restated its **credit facility**, increasing the **unsecured revolving credit line to $850 million** and extending the maturity to February 15, 2027, with pricing based on SOFR plus a **0.775% margin** and a **0.15% facility fee** - On October 26, 2022, the company amended and restated its **credit facility**, increasing the **unsecured revolver to $850 million** and extending the maturity to February 15, 2027[292](index=292&type=chunk) - The new **credit facility's** pricing is tied to SOFR, with the current rate based on a **margin of 0.775%**, a **0.15% facility fee**, and a **0.10% SOFR adjustment**[293](index=293&type=chunk) [Item 6. Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Second Amended and Restated Credit Agreement, certifications by the CEO and CFO, and the Inline XBRL financial data files - Key exhibits filed include the new Second Amended and Restated Credit Agreement (Exhibit 10.1) and CEO/CFO certifications (Exhibits 31 and 32)[299](index=299&type=chunk)

CubeSmart (NYSE:CUBE) Q2 2022 Earnings Conference Call August 5, 2022 11:00 AM ET Company Participants Josh Schutzer - Vice President-Finance Chris Marr - President & Chief Executive Officer Tim Martin - Chief Financial Officer Conference Call Participants Keegan Carl - Berenberg Capital Markets Juan Sanabria - BMO Capital Markets Samir Khanal - Evercore ISI Ki Bin Kim - Truist Michael Mueller - JPMorgan Operator Hello everyone, and welcome to the CubeSmart Second Quarter 2020 Earnings Call. My name is Vic ...

Part I. FINANCIAL INFORMATION [Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for CubeSmart and its Operating Partnership, including Balance Sheets, Statements of Operations, and Cash Flows [CubeSmart (Parent Company) Financial Statements](index=9&type=section&id=CubeSmart%20(Parent%20Company)%20Financial%20Statements) Presents CubeSmart's consolidated financial statements, highlighting revenue and net income growth, alongside changes in assets, liabilities, and equity CubeSmart Consolidated Statement of Operations Highlights (Three Months Ended June 30) | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $248,664 | $199,247 | 24.8% | | **Net Income** | $58,594 | $50,366 | 16.3% | | **Net Income Attributable to Common Shareholders** | $58,358 | $48,752 | 19.7% | | **Diluted EPS** | $0.26 | $0.24 | 8.3% | CubeSmart Consolidated Balance Sheet Highlights | Metric | June 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $6,428,799 | $6,548,079 | | **Total Liabilities** | $3,526,280 | $3,549,699 | | **Total CubeSmart Shareholders' Equity** | $2,823,947 | $2,871,563 | - Net cash provided by operating activities for the six months ended June 30, 2022, was **$284.3 million**, a significant increase from **$217.4 million** in the same period of 2021[41](index=41&type=chunk) [CubeSmart, L.P. (Operating Partnership) Financial Statements](index=15&type=section&id=CubeSmart%2C%20L.P.%20(Operating%20Partnership)%20Financial%20Statements) Presents CubeSmart, L.P.'s consolidated financial statements, which largely mirror the parent company's, with differences in capital and equity reflecting the partnership structure - The assets and liabilities of the Operating Partnership are the same as the Parent Company's, as the Parent Company's only material asset is its investment in the Operating Partnership[12](index=12&type=chunk) CubeSmart, L.P. Net Income Highlights (Six Months Ended June 30) | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $487,229 | $388,088 | 25.5% | | **Net Income** | $96,860 | $93,681 | 3.4% | | **Net Income Attributable to Common Unitholders** | $96,513 | $90,484 | 6.7% | [Notes to Unaudited Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and activities, covering organization, investment activities, debt structure, joint ventures, and EPS calculations - As of June 30, 2022, the company owned or partially owned **609 self-storage properties** across 24 states and the District of Columbia[59](index=59&type=chunk) - In the first six months of 2022, the company acquired two stores for **$55.0 million** and sold the Los Angeles Athletic Club (acquired via the LAACO transaction) for **$44.0 million**[73](index=73&type=chunk)[78](index=78&type=chunk) - The December 2021 acquisition of LAACO added **57 'Storage West' properties** and was accounted for as an asset acquisition with total capitalized costs of approximately **$1.72 billion**[79](index=79&type=chunk)[81](index=81&type=chunk)[86](index=86&type=chunk) - As of June 30, 2022, the company had investments in **7 unconsolidated joint ventures**, owning a total of **91 stores**[98](index=98&type=chunk) - Subsequent to the quarter end, the company acquired a self-storage property in Georgia for **$20.7 million**[161](index=161&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results, covering business overview, operational analysis, cash flow, liquidity, and reconciliation of non-GAAP measures like FFO and NOI [Overview](index=47&type=section&id=Overview) The company operates as a self-storage REIT, owning 609 properties and managing 680 for third parties, with revenues concentrated in key states - As of June 30, 2022, the company owned **609 self-storage properties** and managed **680 stores** for third parties, bringing the total portfolio to **1,289 stores**[163](index=163&type=chunk) - The company's revenue is geographically concentrated, with approximately **17% from New York**, **15% from Florida**, **11% from California**, and **9% from Texas** for the six months ended June 30, 2022[168](index=168&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Compares operating results for Q2 and H1 2022 versus 2021, highlighting significant growth in rental income driven by higher rates and acquisitions, alongside increased operating expenses Q2 2022 vs. Q2 2021 Performance Comparison (in thousands) | Metric | Q2 2022 | Q2 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $248,664 | $199,247 | $49,417 | 24.8% | | **Property Operating Expenses** | $73,472 | $63,751 | $9,721 | 15.2% | | **Net Operating Income (NOI)** | $175,192 | $135,496 | $39,696 | 29.3% | | **Net Income** | $58,594 | $50,366 | $8,228 | 16.3% | - Same-store rental income for Q2 2022 increased by **$23.0 million** (**14.2%**) year-over-year, primarily due to a **14.5%** increase in realized annual rent per occupied square foot[194](index=194&type=chunk) H1 2022 vs. H1 2021 Performance Comparison (in thousands) | Metric | H1 2022 | H1 2021 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $487,229 | $388,088 | $99,141 | 25.5% | | **Property Operating Expenses** | $144,039 | $124,979 | $19,060 | 15.3% | | **Net Operating Income (NOI)** | $343,190 | $263,109 | $80,081 | 30.4% | | **Net Income** | $96,860 | $93,681 | $3,179 | 3.4% | - For H1 2022, same-store rental income grew by **$47.0 million** (**14.9%**) year-over-year, driven by a **15.1%** increase in realized annual rent per occupied square foot[204](index=204&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses liquidity sources including cash flow, revolving credit facility, and equity markets, noting **$5.1 million** cash and **$580.5 million** available under its **$750 million** revolving credit facility - As of June 30, 2022, the company had **$5.1 million** in cash and cash equivalents and **$580.5 million** available for borrowing under its Revolver[226](index=226&type=chunk)[233](index=233&type=chunk) - Total outstanding unsecured senior notes remained at **$2.8 billion** as of June 30, 2022, with maturities ranging from 2025 to 2032[227](index=227&type=chunk) - The company was in compliance with all financial covenants under its Senior Notes and Credit Facility as of June 30, 2022[231](index=231&type=chunk)[234](index=234&type=chunk) - No common shares were sold under the "at-the-market" (ATM) equity program during the first six months of 2022, with **5.9 million shares** remaining available for issuance[235](index=235&type=chunk) [Non-GAAP Financial Measures](index=65&type=section&id=Non-GAAP%20Financial%20Measures) Defines and reconciles non-GAAP financial measures like NOI, FFO, and FFO as adjusted, used by management to evaluate operating performance FFO Reconciliation (in thousands) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Income Attributable to Common Shareholders** | $58,358 | $48,752 | $96,513 | $90,484 | | **Real Estate Depreciation & Amortization** | $80,357 | $54,761 | $164,398 | $109,486 | | **FFO Attributable to Common Shareholders & OP Unitholders** | $139,094 | $105,281 | $261,582 | $203,287 | | **Transaction-related expenses** | $1,138 | $0 | $10,546 | $0 | | **FFO, as adjusted** | $140,232 | $105,414 | $272,128 | $203,843 | [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risk exposure, primarily interest rate risk, with **$2.96 billion** in fixed-rate debt and **$168.9 million** in variable-rate debt as of June 30, 2022 - The company's primary market risk is interest rate fluctuations[251](index=251&type=chunk) - As of June 30, 2022, consolidated debt consisted of **$2.96 billion** in fixed-rate instruments and **$168.9 million** in floating-rate borrowings[255](index=255&type=chunk) - A **100 basis point** increase in market interest rates would increase annual interest expense on variable-rate debt by approximately **$1.7 million**[256](index=256&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both the Parent Company and Operating Partnership are effective, with no material changes to internal control over financial reporting - Management concluded that the disclosure controls and procedures for both the Parent Company and the Operating Partnership are **effective** as of the end of the period[259](index=259&type=chunk)[263](index=263&type=chunk) - There were **no changes** in internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[261](index=261&type=chunk)[264](index=264&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings are pending that would adversely affect its financial condition, results of operations, or cash flows - **No material legal proceedings** are pending against the company, only routine actions and administrative proceedings[265](index=265&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's common share repurchases, noting **2,104 shares** withheld for employee tax obligations and no repurchases under the **3.0 million** share program - The company has a share repurchase program for up to **3.0 million common shares**, under which **no repurchases** have been made to date[268](index=268&type=chunk) - In Q2 2022, **2,104 common shares** were withheld at an average price of **$53.27 per share** to cover employee tax obligations related to vested restricted shares[267](index=267&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL financial data - The filing includes **CEO and CFO certifications** as required by Rules 13a-14(a) and 15d-14(a) under the Exchange Act (**Sarbanes-Oxley Act Section 302**)[269](index=269&type=chunk) - Certifications pursuant to 18 U.S.C. Section 1350 (**Sarbanes-Oxley Act Section 906**) are also furnished with the report[269](index=269&type=chunk)

CubeSmart (NYSE:CUBE) Q1 2022 Earnings Conference Call April 29, 2022 11:00 AM ET Company Participants Josh Schutzer - Vice President, Finance Chris Marr - President and Chief Executive Officer Tim Martin - Chief Financial Officer Conference Call Participants Smedes Rose - Citi David Balaguer - Green Street Juan Sanabria - BMO Jeff Spector - Bank of America Samir Khanal - Evercore Ki Bin Kim - Truist Mike Mueller - JPMorgan Operator Good morning. Thank you for attending today’s CubeSmart First Quarter 2022 ...

Table of Contents sts UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022. or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number: 001-32324 (CubeSmart) 000-54462 (CubeSmart, L.P.) CUBESMART CUBESMART, L.P. (Exact Name of Registrant as S ...

Financial Data and Key Metrics Changes - The company reported a 15.8% revenue growth for same-store performance in Q4 2021, with a 20.6% increase in NOI for the quarter [13] - Average occupancy in Q4 was 93.8%, ending the quarter at 93.3% [13] - FFO per share as adjusted was $0.58 for the quarter, representing a 23.4% growth over the previous year [14] Business Line Data and Key Metrics Changes - The Southeast and Southwest markets led the same-store revenue growth, contributing to the overall robust performance [13] - The non-same-store portfolio and third-party management business also showed solid performance due to strong operating fundamentals [14] Market Data and Key Metrics Changes - The Acela corridor markets returned to more normalized seasonality, with expectations for the West Coast and Sun Belt markets to follow suit in 2022 [22][23] - In New York, occupancy improved by approximately 75 basis points compared to the previous year [38] Company Strategy and Development Direction - The company is focused on disciplined external growth, highlighted by the $1.7 billion acquisition of LAACO Limited, which added a 59-store portfolio [15] - The company aims to continue providing personalized services while enhancing digital experiences for customers [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the normalization of demand trends in New York and other markets as the pandemic's impact lessens [36][37] - The company anticipates a gradual return to traditional seasonality across most markets in 2022 [8] Other Important Information - The company completed an equity offering of 15.5 million common shares at $51 per share, raising net proceeds of $765 million [17] - Property tax increases are expected to be in the 4% to 7% range for 2022, consistent with previous years [75] Q&A Session Summary Question: What are the geographic trends post-COVID? - Management noted that the Acela corridor has normalized, with expectations for the West Coast and Sun Belt markets to follow [22][23] Question: Update on the supply picture in New York? - Management provided insights on varying supply impacts across boroughs, with expectations for a decline in new openings in 2023 [30][31] Question: Demand picture in New York relative to the Sun Belt? - Demand trends in New York have been positive, with rental volumes improving compared to last year [34] Question: Guidance for Storage West? - The magnitude of expected accretion remains unchanged, with increased confidence due to successful integration [40] Question: Visibility around stabilizing and growing the third-party management platform? - The company aims to continue providing excellent service and expects to add between 100 and 200 stores to the platform annually [46] Question: Changes in lease duration since pre-COVID levels? - About 60% of customers have been with the company for over a year, indicating longer lease durations compared to pre-COVID levels [69] Question: Property taxes in 2022? - Property tax increases are expected to be in the 4% to 7% range, with no relief anticipated [75] Question: Impact of labor challenges in New York City? - Labor sourcing remains a challenge, but existing staff continue to perform well [85]

Table of Contents (IRS Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32324 (CubeSmart) Commission file number 000-54462 (CubeSmart, L.P.) CUBESMART CUBESMART, L.P. ...

CubeSmart (NYSE:CUBE) Q3 2021 Earnings Conference Call November 5, 2021 11:00 AM ET Company Participants Joshua Schutzer - Director, Financial Analysis Christopher Marr - CEO, President & Trustee Timothy Martin - CFO & Treasurer Conference Call Participants Smedes Rose - Citigroup Elvis Rodriguez - Bank of America Merrill Lynch Todd Thomas - KeyBanc Capital Markets Juan Sanabria - BMO Capital Markets Joab Dempsey - Truist Securities Hong Zhang - JPMorgan Chase & Co. Spenser Allaway - Green Street Advisors O ...

[Part I. FINANCIAL INFORMATION](index=9&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CubeSmart and CubeSmart, L.P. for the period ended September 30, 2021, including balance sheets, statements of operations, comprehensive income, equity, and cash flows Consolidated Statements of Operations Highlights (Three Months Ended Sep 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $212,564 | $172,511 | +23.2% | | **Net Income** | $90,569 | $47,404 | +91.1% | | **Net Income Attributable to Common Shareholders** | $87,650 | $46,891 | +86.9% | | **Diluted EPS** | $0.43 | $0.24 | +79.2% | Consolidated Balance Sheet Highlights | Metric | Sep 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $4,836,054 | $4,778,142 | | **Total Liabilities** | $2,550,996 | $2,687,880 | | **Total Equity** | $1,945,501 | $1,840,848 | [Notes to Unaudited Consolidated Financial Statements](index=25&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section details accounting policies, investment activity, debt structure, and related party transactions, noting **$55.1 million** in acquisitions and **$2.05 billion** in unsecured senior notes - During the first nine months of 2021, the Company acquired three stores for an aggregate purchase price of approximately **$55.1 million**[77](index=77&type=chunk) - In the same period, the Company sold four properties for an aggregate sales price of **$38.6 million**, recording gains totaling **$28.8 million**[79](index=79&type=chunk) - The company holds investments in five unconsolidated real estate ventures with a total carrying value of **$111.4 million** as of September 30, 2021[93](index=93&type=chunk)[100](index=100&type=chunk) Unsecured Senior Notes Outstanding (as of Sep 30, 2021) | Series | Principal Balance (in thousands) | Maturity Date | | :--- | :--- | :--- | | 4.375% Notes | $300,000 | Dec-23 | | 4.000% Notes | $300,000 | Nov-25 | | 3.125% Notes | $300,000 | Sep-26 | | 4.375% Notes | $350,000 | Feb-29 | | 3.000% Notes | $350,000 | Feb-30 | | 2.000% Notes | $450,000 | Feb-31 | | **Total** | **$2,050,000** | | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=56&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting significant revenue and NOI growth driven by same-store portfolio strength, acquisitions, and liquidity - As of September 30, 2021, the company owned **545** self-storage properties and managed an additional **706** stores for third parties, totaling **1,251** stores[166](index=166&type=chunk) - Primary revenue sources for the nine months ended September 30, 2021, are concentrated in **New York (19%)**, **Florida (15%)**, **Texas (9%)**, and **California (8%)**[172](index=172&type=chunk) [Results of Operations](index=60&type=section&id=Results%20of%20Operations) Total revenues increased **23.2%** to **$212.6 million** and NOI grew **28.7%** to **$148.5 million** in Q3 2021, driven by same-store rental income growth Q3 2021 vs Q3 2020 Performance | Metric | Q3 2021 (in thousands) | Q3 2020 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $212,564 | $172,511 | +23.2% | | **Same-Store Rental Income** | $163,321 | $140,558 | +16.2% | | **Net Operating Income (NOI)** | $148,499 | $115,410 | +28.7% | | **Same-Store NOI** | $121,197 | $100,084 | +21.1% | - The increase in same-store rental income for Q3 2021 was primarily driven by a **14.4% increase** in realized annual rent per occupied square foot[193](index=193&type=chunk) - Depreciation and amortization expense increased by **46.7%** in Q3 2021 year-over-year, primarily due to newly acquired or developed stores[199](index=199&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$20.3 million** cash and **$749.4 million** credit facility availability, raising **$200.0 million** from equity program - As of September 30, 2021, the company had approximately **$20.3 million** in available cash and cash equivalents and **$749.4 million** of availability under its Amended and Restated Credit Facility[225](index=225&type=chunk) - During the first nine months of 2021, the company sold **5.0 million** common shares through its "at-the-market" equity program, generating net proceeds of **$200.0 million**[235](index=235&type=chunk) - The company was in compliance with all financial covenants under its Senior Notes and Revolving Credit Facility as of September 30, 2021[229](index=229&type=chunk)[233](index=233&type=chunk) [Non-GAAP Financial Measures](index=75&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures, with FFO attributable to common shareholders and OP unitholders reaching **$118.4 million** in Q3 2021 FFO Reconciliation (Three Months Ended Sep 30) | Metric (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $87,650 | $46,891 | | Real estate depreciation and amortization | $56,394 | $38,926 | | Gains from sales of real estate, net | ($28,815) | $0 | | Noncontrolling interests in the Operating Partnership | $3,149 | $474 | | **FFO attributable to common shareholders and OP unitholders** | **$118,378** | **$86,291** | [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with a 100 basis point increase potentially decreasing fixed-rate debt fair value by **$125.9 million** - The company's main market risk is from interest rate fluctuations impacting its debt portfolio[248](index=248&type=chunk)[250](index=250&type=chunk) - A hypothetical **100 basis point increase** in market interest rates would decrease the fair value of the company's outstanding fixed-rate debt by approximately **$125.9 million**[254](index=254&type=chunk) [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both the Parent Company and Operating Partnership were effective, with no material changes in internal control - The CEO and CFO concluded that the disclosure controls and procedures for both the Parent Company and the Operating Partnership are effective to provide reasonable assurance[256](index=256&type=chunk)[259](index=259&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[257](index=257&type=chunk)[262](index=262&type=chunk) [Part II. OTHER INFORMATION](index=82&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) No material legal proceedings are pending against the company, beyond routine actions, that would adversely affect financial condition - No material legal proceedings are pending against the company, other than routine actions and administrative proceedings[263](index=263&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **841** common shares in Q3 2021 to cover employee tax obligations, with no repurchases under the 3.0 million share program Share Repurchases (Q3 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2021 | 569 | $46.30 | | August 2021 | 47 | $53.50 | | September 2021 | 225 | $54.93 | | **Total** | **841** | **$49.01** | - The repurchased shares represent common shares withheld by the Parent Company to cover employee tax obligations upon the vesting of restricted shares[265](index=265&type=chunk) [Exhibits](index=83&type=section&id=Item%206.%20Exhibits) This section lists Form 10-Q exhibits, including CEO and CFO certifications and financial statements in Inline XBRL format - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[267](index=267&type=chunk) - Financial information is provided in Inline XBRL format as required by the SEC[267](index=267&type=chunk)

CubeSmart (NYSE:CUBE) Q2 2021 Results Conference Call July 30, 2021 11:00 AM ET Company Participants Joshua Schutzer - Vice President of Finance Christopher Marr - President and Chief Executive Officer Timothy Martin - Chief Financial Officer Conference Call Participants Jeff Spector - Bank of America Samir Khanal - Evercore ISI Todd Thomas - KeyBanc Capital Markets Smedes Rose - Citigroup Spenser Allaway - Green Street Advisors Ki Bin Kim - Truist Securities Jonathan Hughes - Raymond James Michael Muelle ...