Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust (REIT) that owns or manages 1,530 self-storage properties across the United States [3] - According to the 2024 Self Storage Almanac, CubeSmart ranks as one of the top three owners and operators of self-storage properties in the U.S. [3] Financial Results Announcement - CubeSmart will release its financial results for the three-month period ended December 31, 2024, after the market close on February 27, 2025 [1] - A conference call to discuss these results will be held on February 28, 2025, at 11:00 a.m. ET [1] Conference Call Details - A live webcast of the conference call will be available on the investor relations page of CubeSmart's corporate website [2] - Telephone participants can join the call by dialing 1 (800) 715-9871 with conference ID number 4783436 [2] - A telephonic replay of the call will be available until March 14, 2025, by dialing 1 (800) 770-2030 with the same conference ID [2] Company Mission - CubeSmart's mission is to simplify organizational and logistical challenges for customers through innovative solutions, unparalleled service, and genuine care [4] - The self-storage properties are designed to provide affordable, easily accessible, and climate-controlled storage space for both residential and commercial customers [4]

Distribution Summary - CubeSmart announced its 2024 distributions for common shares, with a total distribution of $2.04 per share, broken down into ordinary dividends and other components [1] - Each quarterly distribution is set at $0.51 per share, with the ordinary dividend portion being $0.485746 [1] - The fourth quarter 2024 distribution is considered a 2025 distribution for federal income tax purposes [2] Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust (REIT) that owns or manages 1,528 self-storage properties across the United States [2] - The company ranks among the top three owners and operators of self-storage properties in the U.S., according to the 2024 Self Storage Almanac [2] Mission and Services - The company's mission focuses on simplifying organizational and logistical challenges for customers through innovative solutions and exceptional service [3] - CubeSmart's self-storage properties are designed to provide affordable, easily accessible, and climate-controlled storage options for both residential and commercial customers [3]

Leadership Changes - Joel Keaton, Chief Operating Officer, will retire on April 30, 2025, and will serve as a consultant to ensure a smooth transition [1][2] - Amy Cross will be promoted to Executive Vice President, Technology, Data Science, and Marketing, having led the transformation of CubeSmart's IT function [6] - Guy Middlebrooks will be promoted to Executive Vice President, Operations, overseeing field operations and third-party management [6] Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust, owning or managing 1,528 self-storage properties across the U.S. [3] - The company is recognized as one of the top three owners and operators of self-storage properties in the U.S. according to the 2024 Self Storage Almanac [3] Company Mission - CubeSmart aims to simplify organizational and logistical challenges for customers through innovative solutions, unparalleled service, and genuine care [4] - The self-storage properties are designed to provide affordable, easily accessible, and climate-controlled storage space for both residential and commercial customers [4]

Leadership Changes - Joel Keaton, Chief Operating Officer, will retire effective April 30, 2025, and will serve as a consultant post-retirement to ensure a smooth transition [1][3] - Guy Middlebrooks will be promoted to Executive Vice President, Operations, overseeing field operations and third-party management [2][7] - Amy Cross will be promoted to Executive Vice President, Technology, Data Science, and Marketing, having led the transformation of CubeSmart's IT function [7] Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust, owning or managing 1,528 self-storage properties across the United States [4] - The company is recognized as one of the top three owners and operators of self-storage properties in the U.S. according to the 2024 Self Storage Almanac [4] Company Mission - CubeSmart's mission is to simplify organizational and logistical challenges for customers through innovative solutions, unparalleled service, and genuine care [5] - The self-storage properties are designed to offer affordable, easily accessible, and climate-controlled storage space for both residential and commercial customers [5]

Investment Strategy - The company combines a business education background with professional experience across various industries to identify investment opportunities in sectors such as Media, Marketing, Public Relations, Travel, Tourism, Hospitality, Corporate Events, and Software as a Service [1] - The investment approach focuses on long-term wealth building, with a typical holding period of 10 years or more, emphasizing the compounding effect of reinvesting dividends from well-managed organizations [1] - The strategy includes balancing current income with sustainable growth, seeking investments with substantial margin of safety and a wide moat, and capitalizing on short-term market fears to acquire quality assets at fair prices [1] Asset Management - The company has been managing personal and family assets for 15 years, aiming to build wealth that compounds across multiple generations [1] - The best investment ideas have been in Real Estate Investment Trusts (REITs) and dividend growth stocks, utilizing fundamental analysis alongside reasonable future cash flow expectations [1] - A general asset location strategy involves holding dividend growth stocks in taxable brokerage accounts while utilizing a Roth IRA for REIT and Business Development Company (BDC) investments [1]

Group 1 - CubeSmart announced a quarterly dividend of $0.52 per common share for the period ending December 31, 2024, marking the 15th consecutive annual increase in dividends [1] - The dividend is payable on January 16, 2025, to shareholders of record on January 2, 2025 [1] - CubeSmart is recognized as one of the top three owners and operators of self-storage properties in the U.S., managing 1,538 self-storage properties [2] Group 2 - The company's mission focuses on simplifying organizational and logistical challenges for customers through innovative solutions and exceptional service [3] - CubeSmart's self-storage properties are designed to be affordable, easily accessible, and often climate-controlled for both residential and commercial customers [3]

Financial Performance - Reported diluted earnings per share (EPS) attributable to common shareholders was $0.44 for Q3 2024, down from $0.45 in Q3 2023[5] - Funds from operations (FFO), as adjusted, per diluted share decreased 1.5% to $0.67 for Q3 2024, compared to $0.68 for the same period last year[6] - Net income attributable to the company for Q3 2024 was $100,797,000, compared to $102,645,000 in Q3 2023, a decrease of 1.8%[27] - Basic earnings per share for Q3 2024 were $0.45, down from $0.46 in Q3 2023, a decline of 2.2%[27] - Funds From Operations (FFO) attributable to common shareholders for the three months ended September 30, 2024, was $153,012, slightly down from $154,029 in the prior year[29] Revenue and Expenses - Total revenues increased by $3.0 million, while property operating expenses increased by $4.3 million in Q3 2024 compared to Q3 2023[12] - Total revenues for Q3 2024 were $270,890,000, an increase from $267,876,000 in Q3 2023, representing a growth of 0.4%[27] - Rental income for Q3 2024 was $230,954,000, slightly down from $232,468,000 in Q3 2023, a decrease of 0.6%[27] - Total operating expenses increased to $147,343,000 in Q3 2024 from $141,591,000 in Q3 2023, reflecting a rise of 4.9%[27] - The company reported an increase in property operating expenses to $81,868,000 in Q3 2024 from $77,546,000 in Q3 2023, an increase of 5.9%[27] - Total operating expenses increased by 5.3% to $69,020 for the three months ended September 30, 2024, compared to $65,556 in the same period last year[28] Occupancy and Operations - Same-store net operating income (NOI) decreased 3.1% year over year, driven by a 0.8% decrease in revenues and a 5.3% increase in operating expenses[4] - Same-store occupancy averaged 90.8% during Q3 2024, ending at 90.2%[4] - The period end occupancy rate was 90.2% for both the three months ended September 30, 2024, and 2023, indicating stability in occupancy levels[28] - The realized annual rent per occupied square foot was $23.05 for the three months ended September 30, 2024, nearly unchanged from $23.06 in the prior year[28] Investments and Future Outlook - The company is under contract to acquire two stores in Oregon and Pennsylvania for an aggregate purchase price of approximately $22.0 million, expected to close in Q4 2024[6] - The company anticipates investing a total of $36.9 million in two joint venture development properties in New York, expected to open in Q3 2025[7] - The company estimates fully diluted EPS for 2024 will be between $1.72 and $1.76, and fully diluted FFO per share, as adjusted, will be between $2.62 and $2.66[17] Dividends - The company declared a quarterly dividend of $0.51 per common share, paid on October 15, 2024[16] - The dividend per common share increased to $0.51 for the three months ended September 30, 2024, compared to $0.49 in the same period of 2023[29] - The payout ratio of FFO for the three months ended September 30, 2024, was 76.1%, up from 72.1% in the same period last year[29] Financial Position - Total assets as of September 30, 2024, were $6,192,415,000, a slight decrease from $6,225,020,000 at the end of 2023[26] - Total liabilities decreased to $3,319,783,000 as of September 30, 2024, from $3,344,212,000 at the end of 2023[26] - Cash and cash equivalents were $43,507,000 as of September 30, 2024, down from $6,526,000 at the end of 2023[26] Risks - The company continues to face risks including economic conditions in the real estate industry and competition from new self-storage properties[24] Advertising Expenses - Advertising expenses surged by 34.1% to $8,095 for the three months ended September 30, 2024, compared to $6,036 in the same period last year[28]

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 September 30, 2024. 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 ...

Financial Data and Key Metrics - Same-store revenues declined by 0.8% year-over-year, with average occupancy down 120 basis points to 90.8% [15] - Same-store operating expenses grew by 5.3% year-over-year, driven by property insurance and increased marketing spend [15] - Same-store NOI growth was negative 3.1%, with FFO per share as adjusted at $0.67, meeting the midpoint of guidance [15] - The company raised $32.8 million through its at-the-market equity program at an average sales price of $54.20 per share [17] Business Line Performance - The New York MSA outperformed other markets, with rentals up year-over-year, led by a 7.4% increase in New York City boroughs, offset by an 11.6% decline in Northern New Jersey [9] - Same-store revenue growth in the New York MSA was strong, with the Bronx at 6.6% and Brooklyn at 5.8%, while Northern New Jersey lagged at negative 1.1% [10] - The DMV (District of Columbia, Maryland, Northern Virginia) showed a 3.2% year-over-year same-store revenue growth and a 110 basis point sequential improvement from Q2 [11] - Florida and Arizona markets underperformed due to new supply impacts [12] Market Performance - Lower beta urban markets, particularly New York, outperformed Sun Belt markets [8] - The New York MSA demonstrated solid demand, with rentals up year-over-year despite supply challenges in Northern New Jersey [9] - Florida and Arizona markets faced headwinds from new supply, impacting performance [12] Company Strategy and Industry Competition - The company remains disciplined in capital allocation and is prepared to act decisively on opportunities that fit its investment thesis [12] - CubeSmart continues to be a third-party manager of choice, adding 24 stores in Q3, bringing the total to 893 stores under management [17] - The company is seeing more constructive acquisition opportunities, with two stores under contract for Q4 and other transactions in progress [16] Management Commentary on Operating Environment and Future Outlook - Management noted a high beta environment with mixed demand signals, making it difficult to predict future performance with certainty [20] - The company is focused on attracting high-quality customers who are less sensitive to rate increases and tend to stay longer [27] - Management expects supply impacts to lessen in 2025, particularly in markets like New York and the DMV [64][65] Other Important Information - The company's balance sheet remains strong, with low leverage, no floating rate exposure, and full capacity on its line of credit [17] - CubeSmart celebrated its 20th anniversary as a NYSE-listed company, highlighting its long-term resilience and commitment to customer service [95] Q&A Session Summary Question: State of the market heading into 2025 - Management described the current environment as high beta, with mixed demand signals and significant volatility in interest rates [20] Question: Move-in, move-out rate spread - The churn gap was negative 27.4% in Q3 [21] Question: Marketing and pricing strategy - Marketing spend grew by 10% year-over-year for the first nine months, with web sales traffic up 26% in Q3 [24][28] - The company focuses on balancing marketing investment, price, and ECRIs to attract high-quality customers [27] Question: Competitive environment - Competition varies by market, with some stabilization in pricing but continued pressure in markets like West Coast Florida [30] Question: Customer behavior and quality - Customers who move in with significant discounts tend to have lower lengths of stay and higher credit issues, while those less sensitive to price stay longer [33] Question: Guidance and performance - The company tightened its full-year FFO per share range but maintained the midpoint, with same-store revenue and NOI guidance unchanged [36][37] Question: Acquisition market - The transaction market is becoming more constructive, with a narrowing bid-ask spread and higher-quality opportunities [42][43] Question: Impact of supply - Supply impacts have decreased, with 27% of stores affected in 2024, down from 50% in 2019 [68][69] Question: New development and capital allocation - The company is cautious about new development due to challenging market conditions but remains open to opportunities in specific markets [91][92] Question: Occupancy and ECRI trends - October occupancy was 89.9%, down 130 basis points year-over-year [60] - ECRI increases averaged in the high teens, with Street rates down 9.4% in late October [61]

Core Insights - CubeSmart (CUBE) reported revenue of $270.89 million for the quarter ended September 2024, reflecting a 1.1% increase year-over-year, and an EPS of $0.67 compared to $0.45 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $267.5 million by 1.27%, while the EPS fell short of the consensus estimate of $0.68 by 1.47% [1] Financial Performance Metrics - Property management fee income was reported at $10.67 million, slightly below the average estimate of $10.68 million, but showed an 11.7% year-over-year increase [3] - Rental income amounted to $230.95 million, which was lower than the average estimate of $232.91 million, representing a 0.7% decrease year-over-year [3] - Other property-related income was reported at $29.27 million, matching the average estimate and reflecting a 13.2% year-over-year increase [3] - Net Earnings Per Share (Diluted) was $0.44, slightly below the average estimate of $0.45 [3] Stock Performance - CubeSmart's shares have declined by 7.9% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [4]