Core Insights - CubeSmart (NYSE:CUBE) is recognized as one of the top self-storage real estate investment trusts (REITs) in the US, projected to be among the top three by 2025 [2] - The company reported strong earnings in Q2 2025, with revenue of $282.3 million, reflecting a 6% increase year-over-year and exceeding analysts' expectations by $6.77 million [3] - CubeSmart maintains a quarterly dividend of $0.52 per share, resulting in a dividend yield of 5.14% as of October 1 [4] Financial Performance - Revenue for Q2 2025 was $282.3 million, marking a 6% increase compared to the same period last year [3] - The company noted improvements in key operating ratios and a stable market environment, aided by reduced new supply and seasonal price increases [3] Dividend Information - CubeSmart has a consistent history of paying dividends, currently offering a quarterly dividend of $0.52 per share [4] - The dividend yield stands at 5.14%, making it an attractive option for income-focused investors [4]

Core Insights - CubeSmart is a real estate investment trust specializing in self-storage facilities, providing affordable storage solutions for both residential and commercial customers [1] Financial Performance - CubeSmart is set to report its Q3 2025 earnings on October 30, with analysts expecting an EPS of $0.49, a decrease from $0.67 in the same period last year [2] - Quarterly revenue is anticipated to reach $282.68 million, an increase from $270.89 million a year earlier [2] - For Q2 2025, the company reported FFO of $0.65, slightly above the consensus estimate of $0.64, and revenues of $282.30 million, exceeding the consensus of $273.74 million [6] Historical Investment Performance - If an investor had purchased CubeSmart stock 10 years ago at approximately $26.86 per share, a $10,000 investment would have grown to $14,784 based on stock price appreciation alone, with dividends adding an additional $5,719, resulting in a total investment value of $20,503 [3][4][5] - This represents a total return of 105.03%, significantly lower than the S&P 500 total return of 318.52% over the same period [5] Dividend Information - CubeSmart's current dividend yield is 5.24%, and over the past decade, it has paid approximately $15.36 in dividends per share [4] Future Outlook - Analysts have a consensus rating of "Buy" for CubeSmart, with a price target of $47.33, indicating a potential upside of over 19% from the current stock price [6] - The company has shown improved seasonal performance in rental metrics, supported by stabilizing fundamentals and better pricing strategies [7]

Core Viewpoint - CubeSmart (NYSE:CUBE) is recognized as one of the best warehouse and self-storage stocks to invest in currently [1] Group 1: Upgrade and Price Target - Evercore ISI upgraded CubeSmart from 'In Line' to 'Outperform' and raised its price target to $48 from $47 [2] - The upgrade is attributed to attractive valuation metrics and favorable housing market conditions [2] Group 2: Financial Performance - CubeSmart has solid profit margins of 72.3%, indicating strong financial health [3] - Analysts believe the stock is undervalued, suggesting potential for price appreciation [3] Group 3: Market Position - CubeSmart is among the top three owners and operators of self-storage properties in the U.S., reinforcing its strong market position [3] - The company is highlighted as one of the best warehouse stocks available [3]

Industry Overview - The warehousing and self-storage market is projected to grow at a 7.5% compound annual growth rate (CAGR) from 2025 to 2029, with a market value of $798.45 billion in 2024, expected to reach $1.159 trillion by the end of the forecast period [2] - Key growth drivers include urbanization, population growth, and the rise of online shopping, leading to high demand for secure and flexible storage solutions [3] - The Asia-Pacific region is expected to lead the industry by 2025, with North America following closely [2] Market Challenges - Consumer awareness of self-storage services is low, with only 43% of the population familiar with them and just 8.7% actively considering using these services [3] - Customer satisfaction is high, but 39% of customers perceive pricing as expensive, indicating potential for new operators to address cost concerns [3] Technological Advancements - Warehouse and self-storage providers are investing in digital tools such as smart security and automation to enhance efficiency and improve customer experience [4] - The need for diversified storage and distribution hubs is highlighted by companies like Shein, which is leasing a warehouse in China to mitigate U.S.-China tariff risks [4] Investment Opportunities - A list of the 13 Best Warehouse and Self-Storage Stocks to Buy has been curated based on strong market capitalization and hedge fund sentiment [7] - The strategy of imitating top stock picks from hedge funds has shown significant outperformance, with a return of 373.4% since May 2014 [8] Company Highlights - **Americold Realty Trust, Inc. (NYSE:COLD)**: Recognized for its innovative cold-storage facility in Arkansas, which features advanced automated systems and sustainability measures [10][11] - **CubeSmart (NYSE:CUBE)**: Upgraded by Evercore ISI with a new price target of $48, citing attractive valuation metrics and potential housing market tailwinds [13][14] - **National Storage Affiliates Trust (NYSE:NSA)**: Received a price target increase from $31 to $32, indicating a recalibration of future cash flow expectations [15][16]

Group 1 - The company focuses on identifying high-quality management teams by analyzing free cash flow, efficient capital allocation, and consistently superior results [1] - The founder has nearly 40 years of investing and analysis experience, with a background as a CPA and CFA charter holder [1] - The company emphasizes a broad perspective on macroeconomics and detailed operational insights, drawing from diverse career experiences [1] Group 2 - The company operates an independent research and publishing firm, Bern Factor LLC, located in Virginia [1] - The founder has been involved in investment analysis since 1985 and has a deep interest in stock market history [1] - The company encourages readers to explore its investing philosophy through its website and specific industry analyses [1]

Core Viewpoint - CubeSmart, the third-largest owner and operator of self-storage properties in the U.S., announced a public offering of $450 million in senior unsecured notes due 2035, with a yield to maturity of 5.295% [1][2]. Group 1: Offering Details - The offering consists of $450 million aggregate principal amount of 5.125% senior unsecured notes priced at 98.656% of the principal amount [1]. - The notes will be fully guaranteed by CubeSmart and are expected to close on August 20, 2025, subject to customary closing conditions [1][2]. - The proceeds from the offering will be used to repay outstanding indebtedness under the unsecured revolving credit facility and for general corporate purposes [2]. Group 2: Management and Underwriters - Wells Fargo Securities, BofA Securities, and PNC Capital Markets LLC are acting as joint book-running managers for the offering [3]. - Regions Securities LLC and US Bancorp are serving as senior co-managers, while several other firms are acting as co-managers [3]. Group 3: Company Overview - As of June 30, 2025, CubeSmart owned or managed 1,532 self-storage properties across the United States [6]. - CubeSmart is recognized as one of the top three owners and operators of self-storage properties in the U.S. according to the 2025 Self Storage Almanac [6]. - The company's mission focuses on simplifying organizational and logistical challenges for customers through innovative solutions and exceptional service [7].

Core Viewpoint - CubeSmart (CUBE) is rated as a buy for income-focused investors interested in equity real estate investment trusts (REITs) due to better-than-expected Q2 earnings results and raised guidance for the rest of the year [1] Financial Performance - The company reported Q2 earnings results that exceeded expectations [1] - Management has raised guidance for the remainder of the year, indicating positive future performance [1]

[Report Cover Page & General Information](index=1&type=section&id=Report%20Cover%20Page%20%26%20General%20Information) This document is the quarterly report (Form 10-Q) for the period ending June 30, 2025 - This is a quarterly report (Form 10-Q) for the period ending June 30, 2025[2](index=2&type=chunk) - The registrants include CubeSmart (the Parent Company, a Maryland real estate investment trust) and CubeSmart, L.P. (the Operating Partnership, a Delaware limited partnership)[2](index=2&type=chunk) - Both CubeSmart and CubeSmart, L.P. are classified as **large accelerated filers**[3](index=3&type=chunk) CubeSmart Common Shares Outstanding | Category | Shares Outstanding as of July 30, 2025 | | :--- | :--- | | Common Shares, $0.01 par value per share | 228,035,275 | [Explanatory Note](index=2&type=section&id=Explanatory%20Note) This report combines the Form 10-Q filings for CubeSmart and its operating partnership, CubeSmart, L.P - This report combines the Form 10-Q quarterly reports for CubeSmart (Parent Company, REIT) and CubeSmart, L.P. (Operating Partnership) for the period ended June 30, 2025, as they operate as a single enterprise[6](index=6&type=chunk) - As of June 30, 2025, the Parent Company owned approximately **99.5%** of the interest in the Operating Partnership and has full authority over its daily operations as its sole general partner[7](index=7&type=chunk) - The Parent Company's primary asset is its investment in the Operating Partnership, which holds substantially all of the company's assets and conducts its business operations[9](index=9&type=chunk) - The consolidated financial statements of the Parent Company and the Operating Partnership are nearly identical, with main differences in the equity (or capital) sections[10](index=10&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements based on assumptions and expectations that are inherently subject to risks and uncertainties - Forward-looking statements in this report are based on assumptions and expectations that may not be realized and are subject to risks, uncertainties, and other factors[22](index=22&type=chunk) - Key risks include adverse economic conditions in the real estate and self-storage markets, increased competition, inflation, rising interest rates, reduced capital availability, financing risks, failure to maintain REIT status, and risks related to acquisitions, cybersecurity, and regulatory changes[23](index=23&type=chunk)[25](index=25&type=chunk) - The company cautions readers against undue reliance on these statements and undertakes no obligation to update them beyond what is required by securities laws[24](index=24&type=chunk) [Part I. FINANCIAL INFORMATION](index=7&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CubeSmart and CubeSmart, L.P., as of June 30, 2025 [CUBESMART AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS](index=9&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Key Data (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total assets | $6,709,320 | $6,394,181 | +$315,139 | | Storage properties, net | $6,413,603 | $6,038,186 | +$375,417 | | Cash and cash equivalents | $8,741 | $71,560 | -$62,819 | | Total liabilities | $3,820,046 | $3,440,313 | +$379,733 | | Revolving credit facility | $366,300 | — | +$366,300 | | Total CubeSmart shareholders' equity | $2,813,678 | $2,871,856 | -$58,178 | [CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS](index=11&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Consolidated Statements of Operations Key Data (in thousands of USD, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $282,303 | $266,209 | +$16,094 | +6.0% | | Total operating expenses | $170,413 | $148,754 | +$21,659 | +14.6% | | Net income attributable to the Company | $82,960 | $93,964 | -$11,004 | -11.7% | | Basic earnings per share | $0.36 | $0.42 | -$0.06 | -14.3% | | Diluted earnings per share | $0.36 | $0.41 | -$0.05 | -12.2% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $555,339 | $527,615 | +$27,724 | +5.3% | | Total operating expenses | $328,571 | $292,133 | +$36,438 | +12.5% | | Net income attributable to the Company | $172,157 | $188,491 | -$16,334 | -8.7% | | Basic earnings per share | $0.75 | $0.83 | -$0.08 | -9.6% | | Diluted earnings per share | $0.75 | $0.83 | -$0.08 | -9.6% | [CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)](index=12&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Comprehensive Income Attributable to the Company (in thousands of USD) | Period | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Three months ended June 30 | $82,980 | $93,984 | -$11,004 | -11.7% | | Six months ended June 30 | $172,197 | $188,531 | -$16,334 | -8.7% | [CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY](index=13&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20EQUITY) Total CubeSmart Shareholders' Equity (in thousands of USD) | Date | Amount | | :--- | :--- | | June 30, 2025 | $2,813,678 | | December 31, 2024 | $2,871,856 | - For the six months ended June 30, 2025, dividends on common shares were **$0.52 per share**[34](index=34&type=chunk) [CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS](index=15&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Consolidated Statements of Cash Flows Key Data (Six months ended June 30, in thousands of USD) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $303,800 | $321,012 | -$17,212 | | Net cash from investing activities | $(491,395) | $(54,563) | -$436,832 | | Net cash from financing activities | $124,264 | $(267,396) | +$391,660 | | Cash, cash equivalents, and restricted cash at end of period | $14,332 | $7,270 | +$7,062 | - The significant increase in cash used in investing activities was primarily due to the **$451.1 million** payment to acquire the remaining 80% interest in 191 IV CUBE LLC[36](index=36&type=chunk) - Cash from financing activities shifted from a net outflow to a net inflow, mainly driven by a **$373.8 million** increase in net proceeds from the revolving credit facility[36](index=36&type=chunk) [CUBESMART, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS](index=16&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Key Data (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total assets | $6,709,320 | $6,394,181 | +$315,139 | | Storage properties, net | $6,413,603 | $6,038,186 | +$375,417 | | Cash and cash equivalents | $8,741 | $71,560 | -$62,819 | | Total liabilities | $3,820,046 | $3,440,313 | +$379,733 | | Revolving credit facility | $366,300 | — | +$366,300 | | Total CubeSmart, L.P. capital | $2,813,678 | $2,871,856 | -$58,178 | [CUBESMART, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS](index=17&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Consolidated Statements of Operations Key Data (in thousands of USD, except per unit data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $282,303 | $266,209 | +$16,094 | +6.0% | | Total operating expenses | $170,413 | $148,754 | +$21,659 | +14.6% | | Net income attributable to CubeSmart, L.P. | $83,361 | $94,488 | -$11,127 | -11.8% | | Basic earnings per unit | $0.36 | $0.42 | -$0.06 | -14.3% | | Diluted earnings per unit | $0.36 | $0.41 | -$0.05 | -12.2% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $555,339 | $527,615 | +$27,724 | +5.3% | | Total operating expenses | $328,571 | $292,133 | +$36,438 | +12.5% | | Net income attributable to CubeSmart, L.P. | $173,011 | $189,556 | -$16,545 | -8.7% | | Basic earnings per unit | $0.75 | $0.83 | -$0.08 | -9.6% | | Diluted earnings per unit | $0.75 | $0.83 | -$0.08 | -9.6% | [CUBESMART, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)](index=18&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Comprehensive Income Attributable to CubeSmart, L.P. (in thousands of USD) | Period | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Three months ended June 30 | $83,381 | $94,508 | -$11,127 | -11.8% | | Six months ended June 30 | $173,051 | $189,596 | -$16,545 | -8.7% | [CUBESMART, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CAPITAL](index=19&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CAPITAL) Total CubeSmart, L.P. Capital (in thousands of USD) | Date | Amount | | :--- | :--- | | June 30, 2025 | $2,813,678 | | December 31, 2024 | $2,871,856 | - For the six months ended June 30, 2025, distributions on OP Units were **$0.52 per unit**[45](index=45&type=chunk) [CUBESMART, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS](index=21&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Consolidated Statements of Cash Flows Key Data (Six months ended June 30, in thousands of USD) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $303,800 | $321,012 | -$17,212 | | Net cash from investing activities | $(491,395) | $(54,563) | -$436,832 | | Net cash from financing activities | $124,264 | $(267,396) | +$391,660 | | Cash, cash equivalents, and restricted cash at end of period | $14,332 | $7,270 | +$7,062 | - The significant increase in cash used in investing activities was primarily due to the **$451.1 million** payment to acquire the remaining 80% interest in 191 IV CUBE LLC[47](index=47&type=chunk) - Cash from financing activities shifted from a net outflow to a net inflow, mainly driven by a **$373.8 million** increase in net proceeds from the revolving credit facility[47](index=47&type=chunk) [NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS](index=22&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. ORGANIZATION AND NATURE OF OPERATIONS](index=22&type=section&id=1.%20ORGANIZATION%20AND%20NATURE%20OF%20OPERATIONS) - CubeSmart operates as a self-administered and self-managed real estate investment trust (REIT) through CubeSmart, L.P. and its subsidiaries[48](index=48&type=chunk) - As of June 30, 2025, the company owned (or partially owned and consolidated) self-storage properties in the District of Columbia and 25 states, which it operates as a single reportable segment[48](index=48&type=chunk) - The Parent Company owns approximately **99.5%** of the partnership interests in the Operating Partnership and serves as its sole general partner in an UPREIT structure[49](index=49&type=chunk) - The company typically experiences slightly higher store occupancy during the summer months due to increased moving activity[49](index=49&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=22&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and SEC rules for interim financial reporting[50](index=50&type=chunk) - The Operating Partnership qualifies as a variable interest entity (VIE), and the Parent Company's assets and liabilities primarily represent those of the Operating Partnership[51](index=51&type=chunk)[52](index=52&type=chunk) - All of the Parent Company's debt represents obligations of the Operating Partnership, and the Parent Company guarantees the Operating Partnership's unsecured debt obligations[53](index=53&type=chunk) [3. STORAGE PROPERTIES](index=24&type=section&id=3.%20STORAGE%20PROPERTIES) Book Value of Company's Real Estate Assets (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Land | $1,703,015 | $1,645,549 | | Buildings and improvements | $6,148,331 | $5,759,848 | | Equipment | $155,294 | $147,709 | | Construction in progress | $49,805 | $33,723 | | Finance lease right-of-use assets | $41,945 | $41,945 | | Storage properties | $8,098,390 | $7,628,774 | | Less: accumulated depreciation | $(1,684,787) | $(1,590,588) | | Storage properties, net | $6,413,603 | $6,038,186 | Summary of Company's Acquisition and Disposition Activities (January 1, 2024 to June 30, 2025) | Year | Asset/Portfolio | Transaction Date | Number of Stores | Transaction Price (in thousands of USD) | | :--- | :--- | :--- | :--- | :--- | | 2025 Acquisitions | HVP IV Assets | February 2025 | 28 | $452,785 | | 2024 Acquisitions | Connecticut Asset | January 2024 | 2 | $20,200 | | | Oregon Asset | November 2024 | 1 | $10,450 | | | Pennsylvania Asset | November 2024 | 1 | $11,500 | | | Hines Portfolio | December 2024 | 14 | $157,250 | [4. INVESTMENT ACTIVITY](index=25&type=section&id=4.%20INVESTMENT%20ACTIVITY) - On February 20, 2025, the company acquired the remaining **80%** interest in HVP IV for **$452.8 million**, resulting in the consolidation of its 28 stores into the company's financial statements[57](index=57&type=chunk) - In December 2024, the company acquired an **85%** interest in seven consolidated joint ventures (the Hines Portfolio), which own 14 stores, for approximately **$157.3 million**[58](index=58&type=chunk) - As of June 30, 2025, the company had incurred **$39.0 million** in development costs for two self-storage projects in New York, with an expected total cost of **$45.7 million** and completion in Q3 2025[60](index=60&type=chunk) Stores Opened from January 1, 2024 to June 30, 2025 | Store Location | Number of Stores | Opening Date | Ownership % | Total Construction Cost (in thousands of USD) | | :--- | :--- | :--- | :--- | :--- | | Astoria, NY | 1 | Q2 2024 | 70% | $45,900 | | Clark, NJ | 1 | Q2 2024 | 90% | $15,900 | [5. INVESTMENTS IN UNCONSOLIDATED REAL ESTATE VENTURES](index=27&type=section&id=5.%20INVESTMENTS%20IN%20UNCONSOLIDATED%20REAL%20ESTATE%20VENTURES) Summary of Investments in Unconsolidated Real Estate Ventures (in thousands of USD) | Unconsolidated Real Estate Venture | Ownership % | Stores at June 30, 2025 | Stores at Dec 31, 2024 | Investment Book Value at June 30, 2025 | Investment Book Value at Dec 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Fontana Self Storage, LLC | 50% | 1 | 1 | $13,016 | $13,200 | | Rancho Cucamonga Self Storage, LLC | 50% | 1 | 1 | $19,824 | $20,107 | | 191 V CUBE LLC | 20% | 6 | 6 | $10,490 | $11,353 | | 191 IV CUBE LLC | 20% | - | 28 | — | $14,591 | | CUBE HHF Northeast Venture LLC | 10% | 13 | 13 | $1,287 | $1,469 | | CUBE HHF Limited Partnership | 50% | 28 | 28 | $30,023 | $31,253 | | Total | | 49 | 77 | $74,640 | $91,973 | - HVP IV was consolidated on February 20, 2025, after the company acquired the remaining 80% interest and is no longer listed as an unconsolidated joint venture[64](index=64&type=chunk)[65](index=65&type=chunk) Summary of Financial Position of Unconsolidated Ventures (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Storage properties, net | $374,458 | $684,067 | | Total assets | $388,442 | $701,193 | | Debt | $251,838 | $472,633 | | CubeSmart's equity | $44,091 | $60,993 | Summary of Operating Results of Unconsolidated Ventures (in thousands of USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $14,296 | $24,840 | $34,418 | $49,426 | | Net income | $843 | $205 | $714 | $2,120 | | Company's share of net income | $547 | $425 | $926 | $1,270 | [6. OTHER ASSETS](index=30&type=section&id=6.%20OTHER%20ASSETS) Composition of Other Assets (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Intangible assets, net | $25,962 | $10,332 | | Accounts receivable, net | $9,907 | $10,372 | | Prepaid property taxes | $7,429 | $9,272 | | Prepaid insurance | $9,962 | $5,768 | | Due from related parties | $24,648 | $18,866 | | Assets related to deferred compensation arrangements | $65,108 | $63,761 | | Operating lease right-of-use assets | $48,920 | $49,435 | | Ground lease receivable | — | $6,249 | | Notes receivable | $5,000 | $5,000 | | Other | $7,711 | $4,573 | | Total other assets, net | $204,647 | $183,628 | - On October 8, 2024, the company provided a **$5.0 million** loan to the owner of a third-party managed store at an annual interest rate of **10.00%**, maturing on May 7, 2026[71](index=71&type=chunk) [7. UNSECURED SENIOR NOTES](index=30&type=section&id=7.%20UNSECURED%20SENIOR%20NOTES) Summary of Unsecured Senior Notes (in thousands of USD) | Unsecured Senior Notes | June 30, 2025 | December 31, 2024 | Effective Interest Rate | Issue Date | Maturity Date | | :--- | :--- | :--- | :--- | :--- | :--- | | $300M 4.000% Guaranteed Notes due 2025 | $300,000 | $300,000 | 3.99% | Various | November 2025 | | $300M 3.125% Guaranteed Notes due 2026 | $300,000 | $300,000 | 3.18% | August 2016 | September 2026 | | $550M 2.250% Guaranteed Notes due 2028 | $550,000 | $550,000 | 2.33% | November 2021 | December 2028 | | $350M 4.375% Guaranteed Notes due 2029 | $350,000 | $350,000 | 4.46% | January 2019 | February 2029 | | $350M 3.000% Guaranteed Notes due 2030 | $350,000 | $350,000 | 3.04% | October 2019 | February 2030 | | $450M 2.000% Guaranteed Notes due 2031 | $450,000 | $450,000 | 2.10% | October 2020 | February 2031 | | $500M 2.500% Guaranteed Notes due 2032 | $500,000 | $500,000 | 2.59% | November 2021 | February 2032 | | Total principal outstanding | $2,800,000 | $2,800,000 | | | | | Less: Discount on issuance of unsecured senior notes, net | $(7,668) | $(8,495) | | | | | Less: Loan procurement costs, net | $(9,631) | $(10,874) | | | | | Total unsecured senior notes, net | $2,782,701 | $2,780,631 | | | | - For the three and six months ended June 30, 2025, the Operating Partnership was in compliance with all financial covenants under the unsecured senior notes[74](index=74&type=chunk) [8. REVOLVING CREDIT FACILITY](index=32&type=section&id=8.%20REVOLVING%20CREDIT%20FACILITY) - The company amended its unsecured credit agreement on October 26, 2022, which includes an **$850 million** unsecured revolving credit facility maturing on February 15, 2027[75](index=75&type=chunk) - As of June 30, 2025, the borrowing rate under the revolving credit facility was **5.48%**, with **$483.1 million** of available borrowing capacity[76](index=76&type=chunk) - For the three and six months ended June 30, 2025, the Operating Partnership was in compliance with all financial covenants under the credit agreement[77](index=77&type=chunk) [9. MORTGAGE LOANS AND NOTES PAYABLE](index=32&type=section&id=9.%20MORTGAGE%20LOANS%20AND%20NOTES%20PAYABLE) Summary of Mortgage Loans and Notes Payable (in thousands of USD) | Mortgage Loans and Notes Payable | Book Value at June 30, 2025 | Book Value at Dec 31, 2024 | Effective Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | Long Island City II, NY | $17,126 | $17,368 | 2.25% | July 2026 | | Long Island City III, NY | $17,127 | $17,371 | 2.25% | August 2026 | | Allen, TX | $7,328 | $7,432 | 6.29% | August 2026 | | Dallas-Fort Worth, TX | $108,000 | $108,000 | 6.23% | May 2029 | | Flushing II, NY | $54,300 | $54,300 | 2.15% | July 2029 | | Total principal outstanding | $203,881 | $204,471 | | | | Add: Unamortized fair value adjustment | $5,331 | $6,137 | | | | Less: Loan procurement costs, net | $(4,120) | $(4,693) | | | | Total mortgage loans and notes payable, net | $205,092 | $205,915 | | | - As of June 30, 2025, the company's mortgage loans were secured by self-storage properties with a net book value of approximately **$399.7 million**[79](index=79&type=chunk) Future Principal Repayment Requirements for Mortgage Loans and Notes Payable as of June 30, 2025 (in thousands of USD) | Year | Amount | | :--- | :--- | | 2025 | $595 | | 2026 | $40,986 | | 2027 | — | | 2028 | — | | 2029 | $162,300 | | 2030 and thereafter | — | | Total principal repayments | $203,881 | [10. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=34&type=section&id=10.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) - Accumulated other comprehensive loss represents the unrealized loss on interest rate swaps[80](index=80&type=chunk) Summary of Changes in Accumulated Other Comprehensive Loss (Six months ended June 30, 2025, in thousands of USD) | Metric | June 30, 2025 | | :--- | :--- | | Beginning balance at December 31, 2024 | $(332) | | Reclassification of realized loss on interest rate swaps | $40 | | Ending balance at June 30, 2025 | $(292) | | Less: Portion included in noncontrolling interests in the Operating Partnership | $2 | | Total accumulated other comprehensive loss included in equity | $(290) | [11. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS](index=34&type=section&id=11.%20RISK%20MANAGEMENT%20AND%20USE%20OF%20FINANCIAL%20INSTRUMENTS) - The company uses derivative instruments, such as interest rate swap agreements, solely to manage interest rate risk exposure, not for speculative purposes[83](index=83&type=chunk) - As of June 30, 2025, and December 31, 2024, all derivative instruments entered into by the company had been settled[84](index=84&type=chunk) - In January 2019, the company settled an interest rate swap agreement for **$0.8 million**, with the termination premium being reclassified to interest expense over the life of the 2029 notes[86](index=86&type=chunk) - For the three and six months ended June 30, 2025, the reclassification of unrealized losses on interest rate swaps increased interest expense by **$20 thousand** and **$40 thousand**, respectively[86](index=86&type=chunk) [12. FAIR VALUE MEASUREMENTS](index=36&type=section&id=12.%20FAIR%20VALUE%20MEASUREMENTS) - The company uses a fair value hierarchy (Level 1, 2, and 3) to measure financial assets and liabilities, prioritizing observable inputs[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) Carrying Value and Estimated Fair Value of Company's Debt (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Carrying Value | $3,354,093 | $2,986,546 | | Fair Value | $3,170,176 | $2,728,503 | - The fair value of debt is estimated based on a discounted cash flow analysis using market rates for comparable debt and is classified as Level 2 in the fair value hierarchy[90](index=90&type=chunk)[92](index=92&type=chunk) [13. NONCONTROLLING INTERESTS](index=38&type=section&id=13.%20NONCONTROLLING%20INTERESTS) Summary of Company's Consolidated Joint Ventures (As of June 30, 2025, in thousands of USD) | Consolidated Joint Venture | Number of Stores | Ownership % | Total Assets | Total Liabilities | Related Party Loan | | :--- | :--- | :--- | :--- | :--- | :--- | | Hines Capital | 14 | 85% | $178,906 | $117,260 | — | | New Rochelle Investors, LLC | 1 | 70% | $38,191 | $15,322 | $13,096 | | 1074 Raritan Road, LLC | 1 | 90% | $15,526 | $10,832 | $10,601 | | 350 Main Street, LLC | 1 | 90% | $15,748 | $9,278 | $7,882 | | Astoria Investors, LLC | 1 | 70% | $44,832 | $30,740 | $29,955 | | CS Lock Up Anoka, LLC | 1 | 50% | $9,461 | $5,575 | $5,535 | | CS Valley Forge Village Storage, LLC | 1 | 70% | $18,175 | $14,882 | $14,792 | | CS Vienna, LLC | 1 | 80% | $28,899 | $34,873 | $34,193 | | SH3, LLC | 1 | 90% | $35,889 | $326 | — | | Total | 22 | | $385,627 | $239,088 | $116,054 | - As of June 30, 2025, and December 31, 2024, third parties held **1,103,240** and **1,194,705** Operating Partnership Units (OP Units), respectively[94](index=94&type=chunk) - The redemption value of the 1,103,240 OP Units held by third parties totaled **$46.9 million** as of June 30, 2025[94](index=94&type=chunk) [14. SEGMENT INFORMATION](index=38&type=section&id=14.%20SEGMENT%20INFORMATION) - The company operates in a single business segment: the ownership, operation, development, management, and acquisition of self-storage properties[95](index=95&type=chunk) - The company's Chief Operating Decision Maker (CODM) is the CEO, who manages the company on a consolidated basis and uses net income as the measure of segment profit or loss[97](index=97&type=chunk)[98](index=98&type=chunk)[100](index=100&type=chunk) Self-Storage Segment Revenues and Significant Segment-Level Expenses (Six months ended June 30, in thousands of USD) | Metric | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $555,339 | $527,615 | +$27,724 | +5.3% | | Property taxes | $60,266 | $54,048 | +$6,218 | +11.5% | | Personnel expenses | $43,784 | $44,668 | -$884 | -2.0% | | Advertising | $14,407 | $12,016 | +$2,391 | +19.9% | | Total property operating expenses | $171,962 | $160,134 | +$11,828 | +7.4% | | Depreciation and amortization | $125,644 | $101,752 | +$23,892 | +23.5% | | Interest expense on loans | $55,190 | $45,686 | +$9,504 | +20.8% | | Net income | $171,177 | $189,044 | -$17,867 | -9.5% | [15. COMMITMENTS AND CONTINGENCIES](index=42&type=section&id=15.%20COMMITMENTS%20AND%20CONTINGENCIES) - The company has agreements with developers to construct two new self-storage properties, with an expected payment of approximately **$10.0 million** in 2025[103](index=103&type=chunk) - The company is involved in claims arising from the ordinary course of business, for which management believes adequate provisions have been made[104](index=104&type=chunk) [16. RELATED PARTY TRANSACTIONS](index=42&type=section&id=16.%20RELATED%20PARTY%20TRANSACTIONS) Related Party Management Fee Revenue (in thousands of USD) | Period | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Three months ended June 30 | $600 | $1,200 | -$600 | -50.0% | | Six months ended June 30 | $1,500 | $2,400 | -$900 | -37.5% | Due from Related Parties (in thousands of USD) | Date | Amount | | :--- | :--- | | June 30, 2025 | $24,648 | | December 31, 2024 | $18,866 | - As of June 30, 2025, the company had outstanding mortgage receivables of **$116.1 million** from its consolidated joint ventures[106](index=106&type=chunk) - For the six months ended June 30, 2025, the company recognized **$0.1 million** in ground lease income[108](index=108&type=chunk) [17. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL](index=43&type=section&id=17.%20EARNINGS%20PER%20SHARE%20AND%20UNIT%20AND%20SHAREHOLDERS'%20EQUITY%20AND%20CAPITAL) Earnings Per Share Attributable to Company Common Shareholders (in thousands of USD, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic EPS | $0.36 | $0.42 | | Diluted EPS | $0.36 | $0.41 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic EPS | $0.75 | $0.83 | | Diluted EPS | $0.75 | $0.83 | - For the three months ended June 30, 2025, dividends declared per common share were **$0.52**[109](index=109&type=chunk) Earnings Per Unit Attributable to CubeSmart, L.P. (in thousands of USD, except per unit amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic EPU | $0.36 | $0.42 | | Diluted EPU | $0.36 | $0.41 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic EPU | $0.75 | $0.83 | | Diluted EPU | $0.75 | $0.83 | Summary of OP Units Outstanding | Category | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | OP Units outstanding held by third parties | 1,103,240 | 1,238,205 | | OP Units outstanding held by the General Partner | 228,033,843 | 225,196,862 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of the company's financial condition and results of operations [Overview](index=45&type=section&id=Overview) - The company is an integrated self-storage real estate company with capabilities in design, development, acquisition, operation, leasing, and management of self-storage properties[115](index=115&type=chunk) - As of June 30, 2025, the company owned (or partially owned and consolidated) **659** self-storage properties totaling approximately **48.1 million** rentable square feet and managed **873** stores for third parties, for a total of **1,532** stores[115](index=115&type=chunk) - The company's operating performance depends on retaining existing customers, leasing available space to new customers, and maintaining or increasing pricing levels[116](index=116&type=chunk) - The company continues to focus on maximizing internal growth opportunities and selectively pursuing targeted acquisitions and developments of self-storage properties[119](index=119&type=chunk) - For the six months ended June 30, 2025, stores in New York, Florida, Texas, and California contributed approximately **17%**, **14%**, **11%**, and **10%** of total revenues, respectively[121](index=121&type=chunk) [Summary of Critical Accounting Policies and Estimates](index=47&type=section&id=Summary%20of%20Critical%20Accounting%20Policies%20and%20Estimates) - The consolidated financial statements include all accounts of the company and its majority-owned and/or controlled subsidiaries, with the portion not owned by the company presented as noncontrolling interests[123](index=123&type=chunk) - The company records self-storage properties at cost less accumulated depreciation, with the purchase price allocated to tangible and intangible assets based on estimated relative fair values[125](index=125&type=chunk)[126](index=126&type=chunk) - The company reviews long-lived assets for impairment when events indicate that their carrying value may not be recoverable; **no impairment losses** were recognized for the periods ended June 30, 2025 and 2024[129](index=129&type=chunk) - The company accounts for its investments in unconsolidated real estate joint ventures using the equity method and assesses them for other-than-temporary impairment; **no impairment losses** were recognized for the periods ended June 30, 2025 and 2024[132](index=132&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) [Acquisition and Development Activities](index=51&type=section&id=Acquisition%20and%20Development%20Activities) Change in Number of Owned (or partially owned and consolidated) Stores (January 1, 2024 to June 30, 2025) | Date | Number of Stores | | :--- | :--- | | Balance at January 1, 2024 | 631 | | Stores acquired in 2025 | 28 | | Stores developed in 2024 | 2 | | Stores acquired in 2024 | 16 | | Balance at June 30, 2025 | 659 | [Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024](index=52&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202025%20to%20the%20three%20months%20ended%20June%2030%2C%202024) Comparison of Results of Operations (Three months ended June 30, in thousands of USD) | Metric | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $282,303 | $266,209 | +$16,094 | +6.0% | | Property operating expenses | $89,028 | $83,097 | +$5,931 | +7.1% | | Depreciation and amortization | $66,488 | $51,035 | +$15,453 | +30.3% | | Interest expense on loans | $29,090 | $22,767 | +$6,323 | +27.8% | | Net income | $82,432 | $94,186 | -$11,754 | -12.5% | | Net income attributable to Company common shareholders | $82,960 | $93,964 | -$11,004 | -11.7% | - The increase in total revenues was primarily attributable to additional revenue from the non-same-store portfolio of properties acquired or opened in 2024 and 2025[142](index=142&type=chunk) - The increase in interest expense on loans was due to a higher average outstanding debt balance (from **$2.96 billion** to **$3.43 billion**) and a higher weighted-average effective interest rate (from **3.01%** to **3.32%**) during the 2025 period[145](index=145&type=chunk) Same-Store Portfolio Performance (Three months ended June 30) | Metric | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Rental income | $222,645 | $224,165 | $(1,520) | (0.7)% | | Other property related revenues | $12,043 | $11,634 | $409 | 3.5% | | Total revenues | $234,688 | $235,799 | $(1,111) | (0.5)% | | Property operating expenses | $69,366 | $68,569 | $797 | 1.2% | | Net operating income (NOI) | $165,322 | $167,230 | $(1,908) | (1.1)% | | Occupancy at period-end | 91.1% | 91.8% | -0.7% | | | Annualized realized rent per sq. ft. | $22.45 | $22.41 | +$0.04 | | | Number of stores | 606 | 606 | | | [Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024](index=54&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202025%20to%20the%20six%20months%20ended%20June%2030%2C%202024) Comparison of Results of Operations (Six months ended June 30, in thousands of USD) | Metric | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $555,339 | $527,615 | +$27,724 | +5.3% | | Property operating expenses | $171,962 | $160,134 | +$11,828 | +7.4% | | Depreciation and amortization | $125,644 | $101,752 | +$23,892 | +23.5% | | Interest expense on loans | $55,190 | $45,686 | +$9,504 | +20.8% | | Net income | $171,177 | $189,044 | -$17,867 | -9.5% | | Net income attributable to Company common shareholders | $172,157 | $188,491 | -$16,334 | -8.7% | - The increase in total revenues was primarily attributable to additional revenue from the non-same-store portfolio of properties acquired or opened in 2024 and 2025[150](index=150&type=chunk) - The increase in interest expense on loans was due to a higher average outstanding debt balance (from **$2.98 billion** to **$3.31 billion**) and a higher weighted-average effective interest rate (from **3.02%** to **3.25%**) during the 2025 period[154](index=154&type=chunk) Same-Store Portfolio Performance (Six months ended June 30) | Metric | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Rental income | $443,557 | $446,904 | $(3,347) | (0.7)% | | Other property related revenues | $22,541 | $21,141 | $1,400 | 6.6% | | Total revenues | $466,098 | $468,045 | $(1,947) | (0.4)% | | Property operating expenses | $135,404 | $134,189 | $1,215 | 0.9% | | Net operating income (NOI) | $330,694 | $333,856 | $(3,162) | (0.9)% | | Occupancy at period-end | 91.1% | 91.8% | -0.7% | | | Annualized realized rent per sq. ft. | $22.50 | $22.51 | $(0.01) | | | Number of stores | 606 | 606 | | | [Cash Flows](index=56&type=section&id=Cash%20Flows) Comparison of Cash Flows (Six months ended June 30, in thousands of USD) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $303,800 | $321,012 | $(17,212) | | Net cash from investing activities | $(491,395) | $(54,563) | $(436,832) | | Net cash from financing activities | $124,264 | $(267,396) | $391,660 | - The decrease in cash flow from operating activities was primarily due to the timing and amount of payments for certain accounts payable and accrued expenses[155](index=155&type=chunk) - The increase in cash used in investing activities was mainly due to the **$451.1 million** payment to acquire the remaining 80% interest in 191 IV CUBE LLC[156](index=156&type=chunk) - The shift in cash flow from financing activities from a net outflow in 2024 to a net inflow in 2025 was primarily due to a **$373.8 million** increase in net proceeds from the revolving credit facility[157](index=157&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) [Liquidity Overview](index=56&type=section&id=Liquidity%20Overview) - The company's primary source of liquidity is cash flow from operating activities, which is used to fund debt service, distributions, and capital expenditures[158](index=158&type=chunk) - As a REIT, the company is required to distribute at least **90%** of its REIT taxable income annually, creating significant short-term and long-term liquidity needs[159](index=159&type=chunk) - For the remainder of fiscal 2025, expected recurring capital expenditures are **$5.5 million to $10.5 million**, planned capital improvements are **$5.0 million to $10.0 million**, and new store development costs are **$9.0 million to $14.0 million**[160](index=160&type=chunk)[161](index=161&type=chunk) - Scheduled principal repayments on outstanding debt for the remainder of 2025 are approximately **$300.6 million**[162](index=162&type=chunk) - As of June 30, 2025, the company had approximately **$8.7 million** in available cash and cash equivalents and **$483.1 million** available for borrowing under its revolving credit facility[166](index=166&type=chunk) [Unsecured Senior Notes](index=58&type=section&id=Unsecured%20Senior%20Notes) Summary of Unsecured Senior Notes (in thousands of USD) | Unsecured Senior Notes | June 30, 2025 | December 31, 2024 | Effective Interest Rate | Issue Date | Maturity Date | | :--- | :--- | :--- | :--- | :--- | :--- | | $300M 4.000% Guaranteed Notes due 2025 | $300,000 | $300,000 | 3.99% | Various | November 2025 | | $300M 3.125% Guaranteed Notes due 2026 | $300,000 | $300,000 | 3.18% | August 2016 | September 2026 | | $550M 2.250% Guaranteed Notes due 2028 | $550,000 | $550,000 | 2.33% | November 2021 | December 2028 | | $350M 4.375% Guaranteed Notes due 2029 | $350,000 | $350,000 | 4.46% | January 2019 | February 2029 | | $350M 3.000% Guaranteed Notes due 2030 | $350,000 | $350,000 | 3.04% | October 2019 | February 2030 | | $450M 2.000% Guaranteed Notes due 2031 | $450,000 | $450,000 | 2.10% | October 2020 | February 2031 | | $500M 2.500% Guaranteed Notes due 2032 | $500,000 | $500,000 | 2.59% | November 2021 | February 2032 | | Total principal outstanding | $2,800,000 | $2,800,000 | | | | | Less: Discount on issuance of unsecured senior notes, net | $(7,668) | $(8,495) | | | | | Less: Loan procurement costs, net | $(9,631) | $(10,874) | | | | | Total unsecured senior notes, net | $2,782,701 | $2,780,631 | | | | - For the three and six months ended June 30, 2025, the Operating Partnership was in compliance with all financial covenants under the unsecured senior notes[169](index=169&type=chunk) [Revolving Credit Facility](index=60&type=section&id=Revolving%20Credit%20Facility) - The company amended and restated its unsecured credit agreement, which includes an **$850 million** unsecured revolving credit facility maturing on February 15, 2027[170](index=170&type=chunk) - As of June 30, 2025, the borrowing rate under the revolving credit facility was **5.48%**, with **$483.1 million** of available borrowing capacity[171](index=171&type=chunk) - For the three and six months ended June 30, 2025, the Operating Partnership was in compliance with all financial covenants under the credit agreement[172](index=172&type=chunk) [Mortgage Loans and Notes Payable](index=60&type=section&id=Mortgage%20Loans%20and%20Notes%20Payable) Summary of Mortgage Loans and Notes Payable (in thousands of USD) | Mortgage Loans and Notes Payable | Book Value at June 30, 2025 | Book Value at Dec 31, 2024 | Effective Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | Long Island City II, NY | $17,126 | $17,368 | 2.25% | July 2026 | | Long Island City III, NY | $17,127 | $17,371 | 2.25% | August 2026 | | Allen, TX | $7,328 | $7,432 | 6.29% | August 2026 | | Dallas-Fort Worth, TX | $108,000 | $108,000 | 6.23% | May 2029 | | Flushing II, NY | $54,300 | $54,300 | 2.15% | July 2029 | | Total principal outstanding | $203,881 | $204,471 | | | | Add: Unamortized fair value adjustment | $5,331 | $6,137 | | | | Less: Loan procurement costs, net | $(4,120) | $(4,693) | | | | Total mortgage loans and notes payable, net | $205,092 | $205,915 | | | [At-the-Market Equity Program](index=60&type=section&id=At-the-Market%20Equity%20Program) - The company launched a new at-the-market equity program on March 3, 2025, allowing for the sale of up to **13,510,817** CubeSmart common shares[174](index=174&type=chunk) - As of June 30, 2025, **no common shares** had been sold under the new program[175](index=175&type=chunk) - Net proceeds from the program will be used for working capital and general corporate purposes[175](index=175&type=chunk) [Non-GAAP Financial Measures](index=62&type=section&id=Non-GAAP%20Financial%20Measures) [NOI](index=62&type=section&id=NOI) - Net Operating Income (NOI) is defined as total continuing revenues less continuing property operating expenses and is a key metric for measuring store-level operating performance[176](index=176&type=chunk)[177](index=177&type=chunk) - NOI should not be considered a substitute for operating income or net income and has limitations, including difficulty in comparing results across companies[177](index=177&type=chunk)[178](index=178&type=chunk) [FFO](index=64&type=section&id=FFO) - Funds from Operations (FFO) is a widely used performance measure for real estate companies, defined as net income excluding gains or losses from property sales, plus real estate depreciation and amortization[180](index=180&type=chunk) - Management uses FFO as a key performance indicator to evaluate store-level operations, as it excludes certain expenses not relevant to operating performance[181](index=181&type=chunk) - FFO should not be considered an alternative to net income and does not represent cash generated from operating activities or the company's ability to make cash distributions[182](index=182&type=chunk) FFO Attributable to Company Common Shareholders and Third-Party OP Unitholders (in thousands of USD) | Period | 2025 | 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Three months ended June 30 | $148,912 | $145,970 | +$2,942 | +2.0% | | Six months ended June 30 | $297,061 | $292,379 | +$4,682 | +1.6% | [Off-Balance Sheet Arrangements](index=64&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company has no off-balance sheet arrangements or relationships with unconsolidated entities other than its co-investment partnerships that have not been discussed in the report[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discloses the company's market risks, particularly interest rate risk, and its strategies for managing these risks [Market Risk](index=66&type=section&id=Market%20Risk) - The company's investment policy for cash and cash equivalents is to preserve principal and liquidity while maximizing returns on available funds[188](index=188&type=chunk) - The company's interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower overall borrowing costs[189](index=189&type=chunk) [Effect of Changes in Interest Rates on our Outstanding Debt](index=66&type=section&id=Effect%20of%20Changes%20in%20Interest%20Rates%20on%20our%20Outstanding%20Debt) - As of June 30, 2025, the company's consolidated debt included **$3.0 billion** of fixed-rate debt and **$366.3 million** of variable-rate borrowings[190](index=190&type=chunk) - A **100 basis point increase** in market interest rates on variable-rate debt would increase annual interest expense by approximately **$3.7 million**[191](index=191&type=chunk) - A **100 basis point decrease** in market interest rates on variable-rate debt would decrease annual interest expense by approximately **$3.7 million**[191](index=191&type=chunk) - A **100 basis point increase** in market interest rates would decrease the fair value of fixed-rate debt by approximately **$96.7 million**[192](index=192&type=chunk) - A **100 basis point decrease** in market interest rates would increase the fair value of fixed-rate debt by approximately **$101.0 million**[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures for both CubeSmart and CubeSmart, L.P [Controls and Procedures (Parent Company)](index=66&type=section&id=Controls%20and%20Procedures%20(Parent%20Company)) - As of the end of the reporting period, the Parent Company's management evaluated the effectiveness of its disclosure controls and procedures[193](index=193&type=chunk) - The evaluation concluded that the Parent Company's disclosure controls and procedures were **effective at a reasonable assurance level**[194](index=194&type=chunk) - There were **no material changes** to the Parent Company's internal control over financial reporting during the most recent fiscal quarter[196](index=196&type=chunk) [Controls and Procedures (Operating Partnership)](index=68&type=section&id=Controls%20and%20Procedures%20(Operating%20Partnership)) - As of the end of the reporting period, the Operating Partnership's management evaluated the effectiveness of its disclosure controls and procedures[197](index=197&type=chunk) - The evaluation concluded that the Operating Partnership's disclosure controls and procedures were **effective at a reasonable assurance level**[198](index=198&type=chunk) - There were **no material changes** to the Operating Partnership's internal control over financial reporting during the most recent fiscal quarter[199](index=199&type=chunk) [Part II. OTHER INFORMATION](index=68&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company has no ongoing legal proceedings expected to have a material adverse effect on its financial condition - The company has no ongoing legal proceedings that are expected to have a material adverse effect on its financial condition, results of operations, or cash flows[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section discloses the repurchase of common shares and the issuance of unregistered equity securities [Repurchases of Parent Company Common Shares](index=69&type=section&id=Repurchases%20of%20Parent%20Company%20Common%20Shares) Repurchases of Parent Company Common Shares (Three months ended June 30, 2025) | Period | Total Number of Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - April 30 | 4,351 | $42.03 | | May 1 - May 31 | — | — | | June 1 - June 30 | — | — | | Total | 4,351 | $42.03 | - The repurchased shares represent common shares withheld by the Parent Company to satisfy employee tax obligations upon the vesting of restricted shares[202](index=202&type=chunk) - The Board of Directors approved a repurchase program for up to **3.0 million** common shares in June 2007, but no repurchases have been made under this program to date[202](index=202&type=chunk) [Unregistered Sales of Equity Securities](index=69&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities) - During the three months ended June 30, 2025, the Parent Company issued **38,965** common shares to redeem an equivalent number of OP Units held by limited partners, exempt from registration under Section 4(a)(2) of the Securities Act of 1933[203](index=203&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) This section covers trading arrangements for directors and executives, as well as recent changes to tax law [Trading Arrangements](index=69&type=section&id=Trading%20Arrangements) - During the three months ended June 30, 2025, no director or executive officer of the company adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[204](index=204&type=chunk) [Tax Law Changes](index=69&type=section&id=Tax%20Law%20Changes) - On July 4, 2025, the "One Big Beautiful Bill Act" (OBBBA) was signed into law, making significant changes to U.S. federal income tax law[205](index=205&type=chunk) - OBBBA permanently extends the **20% deduction** for "qualified REIT dividends" for individuals and other non-corporate taxpayers[205](index=205&type=chunk) - For taxable years beginning after December 31, 2025, OBBBA increases the REIT asset test percentage limit for taxable REIT subsidiaries (TRSs) from **20% to 25%**[205](index=205&type=chunk) - For taxable years beginning after December 31, 2024, OBBBA restores the exclusion of depreciation, depletion, and amortization from adjusted taxable income when calculating the net interest expense deduction[205](index=205&type=chunk)[206](index=206&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including incentive plans, officer certifications, and financial information in Inline XBRL format - Exhibits include the amended and restated CubeSmart 2007 Equity Incentive Plan, various certifications by the CEO and CFO of CubeSmart and CubeSmart, L.P., and financial information in Inline XBRL format[209](index=209&type=chunk) [Signatures](index=74&type=section&id=Signatures) The report was duly signed by the company's executive officers on August 1, 2025 - The reports for both CubeSmart and CubeSmart, L.P. were signed on August 1, 2025, by Christopher P. Marr (CEO), Timothy M. Martin (CFO), and Matthew D. DeNarie (CAO)[214](index=214&type=chunk)[217](index=217&type=chunk)

Financial Data and Key Metrics Changes - The company reported a solid second quarter with key performance indicators exceeding expectations, with same store revenue growth down 0.5% year-over-year and average occupancy at 90.6%, down 80 basis points [13][14] - Funds from Operations (FFO) per share was reported at $0.65, at the high end of guidance [15] - Net debt to EBITDA ratio remained strong at 4.7 times [16] Business Line Data and Key Metrics Changes - Same store operating expenses grew by 1.2% year-over-year, indicating effective expense control [14] - The company added 30 stores to its third-party management platform, bringing the total to 873 stores [15] Market Data and Key Metrics Changes - Urban markets along the Acela Corridor and stores in Chicago were top performers, while Sunbelt markets, particularly Florida and Arizona, lagged due to reliance on housing mobility [10][11] - The New York MSA showed solid sequential acceleration in net rental income, with boroughs leading the way due to reduced new supply [11][24] Company Strategy and Development Direction - The company expects occupancy and move-in rates to approach parity by the end of the year, with a focus on stabilizing operational trends [11] - The management is cautious about the potential volatility in consumer behavior due to ongoing governmental and monetary policy decisions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued improvement in operational trends through 2025, setting a positive outlook for 2026 [11][12] - The company acknowledged risks related to the housing market and the impact of new supply on performance [7][11] Other Important Information - The company is actively monitoring the market for long-term unsecured debt issuance as it prepares for the maturity of $300 million in senior unsecured notes [16] - The management highlighted the importance of expense efficiencies, particularly in insurance and property tax appeals, contributing to improved guidance [18][75] Q&A Session Summary Question: Revenue guidance adjustments - Management adjusted the top end of revenue guidance down due to lower expected demand levels, while raising the midpoint [20][21] Question: New York market performance - Positive trends in net rental income were noted, with some deceleration in growth, particularly in Northern New Jersey [22][24] Question: Customer turnover and recovery pace - The 5% monthly customer turnover impacts the pace of recovery, with improvements expected to take time to reflect in revenue [29][31] Question: Transaction market activity - The transaction market is seeing increased deal volume, but the company remains cautious about pricing and risk-adjusted returns [33][36] Question: Operating trends in Sunbelt markets - Sunbelt markets are expected to recover more slowly due to high supply levels, despite some positive trends emerging [40][42] Question: Impact of economic uncertainty on revenue management - The company will continue to monitor existing customer health and adjust strategies as needed, but remains optimistic about demand [43][44] Question: Expected deceleration in same store revenue - The deceleration is attributed to timing issues related to fee adjustments and the flow-through of rate increases [48][49] Question: Visibility on third-party management churn - Limited visibility on churn from third-party management, but the company is onboarding new stores to mitigate losses [50][52] Question: Construction starts and supply dynamics - No significant increase in construction starts is expected due to high costs and challenges in the market [58][60] Question: Update on Texas JV performance - The integration of the Texas JV portfolio is performing as expected, complementing existing assets [63][64] Question: Same store expense guidance - Expected acceleration in same store expenses is due to timing and inflationary pressures, with some favorable insurance renewals [72][75] Question: Customer acquisition and AI impact - Most traffic still comes from traditional searches, with AI tools not yet significantly impacting customer acquisition [77][78] Question: Credit rating comparison - The company acknowledges the disconnect in credit ratings compared to peers and is aware of the implications for investors [86][89]

Financial Data and Key Metrics Changes - The company reported a solid second quarter with key performance indicators exceeding expectations, with a trough to peak occupancy growth of 190 basis points compared to 180 basis points last year [11] - Net effective rates for new customers increased by 28.3% compared to 15% in 2024, indicating constructive rate trends [11] - Same store revenue growth was down 0.5% year over year, with average occupancy for the same store portfolio down 80 basis points to 90.6% during the quarter [14][15] - FFO per share as adjusted was reported at $0.65, at the high end of guidance [16] Business Line Data and Key Metrics Changes - The company added 30 stores to its third-party management platform, bringing the total to 873 stores at quarter end [16] - Same store operating expenses grew by 1.2% over last year, reflecting strong expense controls [15] Market Data and Key Metrics Changes - Urban markets along the Acela Corridor and stores in Chicago continued to perform well, while markets in the Sunbelt, particularly Florida and Arizona, lagged due to reliance on housing mobility [12] - The New York MSA showed solid sequential acceleration in net rental income, with boroughs leading the way due to reduced new supply and strong consumer demand [13] Company Strategy and Development Direction - The company expects occupancy and move-in rates to approach parity by the end of the year, with a focus on improving operational trends through 2025 [13] - The company is evaluating acquisition opportunities but has not found compelling risk-adjusted returns in the current market [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged risks of volatility due to ongoing governmental and monetary policy decisions but expressed confidence in continued improvement in operational trends [13] - The company anticipates that same store revenue growth will be slightly more negative in the third quarter but expects improvements in the fourth quarter [19] Other Important Information - Balance sheet metrics remain strong with net debt to EBITDA at 4.7 times [16] - The company is focused on issuing long-term unsecured debt as it approaches the maturity of its senior unsecured notes [16] Q&A Session Summary Question: What were the assumptions at the top end of revenue guidance? - Management indicated that the top end assumed stronger overall demand, which has not materialized, leading to a narrowing of expectations [22] Question: Can you provide color on the New York boroughs and Northern New Jersey? - Positive trends in net rental income were noted, with Northern New Jersey gradually improving as supply is absorbed [26] Question: How does the 5% customer churn affect recovery? - Management explained that even with good months, the 5% churn means it takes time for improvements to reflect in revenue [32] Question: What is the outlook for the transaction market? - The company noted an increase in deal volume but remains cautious about pricing and risk-adjusted returns [35][102] Question: What are the expectations for same store revenue in the third quarter? - Management indicated that timing and volatility from previous adjustments would impact revenue, but overall trends are positive [49] Question: How are operating expenses trending in Austin? - Operating expenses were impacted by taxes and supply pressures, with a difficult comp from the previous year [70] Question: What is the appetite for acquisitions? - The company is focused on high-quality assets in top markets but is currently not seeing attractive pricing for acquisitions [105]