CubeSmart (NYSE:CUBE) Q1 2024 Earnings Conference Call April 26, 2024 11:00 AM ET Company Participants Josh Schutzer - Vice President of Finance Christopher Marr - President and Chief Executive Officer Timothy Martin - Chief Financial Officer Conference Call Participants Spenser Allaway - Green Street Michael Goldsmith - UBS Samir Khanal - Evercore ISI Todd Thomas - KeyBanc Capital Markets Jeff Spector - Bank of America Merrill Lynch Eric Wolfe - Citi Ki Bin Kim - Truist securities Keegan Carl - Wolfe Resea ...

CubeSmart (CUBE) came out with quarterly funds from operations (FFO) of $0.64 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.65 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this self-storage company would post FFO of $0.68 per share when it actually produced FFO of $0.70, delivering a surprise of 2.94%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.CubeSmart, which belo ...

CubeSmart (NYSE:CUBE) Q4 2023 Earnings Conference Call March 1, 2024 11:00 AM ET Corporate Participants Josh Schutzer - Vice President-Finance Chris Marr - President & Chief Executive Officer Tim Martin - Chief Financial Officer Conference Call Participants Kassandra Fieber - Truist securities Eric Wolfe - Citi Elizabeth Doykan - Bank of America Juan Sanabria - BMO Capital Markets Michael Goldsmith - UBS Keegan Carl - Wolfe Research Spenser Allaway - Green Street Samir Khanal - Evercore ISI Eric Luebchow - ...

CubeSmart (CUBE) reported $265.13 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.6%. EPS of $0.70 for the same period compares to $0.36 a year ago.The reported revenue represents a surprise of +0.68% over the Zacks Consensus Estimate of $263.34 million. With the consensus EPS estimate being $0.68, the EPS surprise was +2.94%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Gladstone Commercial (GOOD) and CubeSmart (CUBE) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate rev ...

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) CubeSmart is a self-storage REIT owning 611 properties and managing 795, focused on maximizing cash flow and strategic growth Owned and Managed Property Portfolio (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | Owned Properties | 611 | | Rentable Square Feet (Owned) | ~44.1 million | | States of Operation (Owned) | 24 states and DC | | Managed Properties for Third Parties | 795 | | Total Owned and/or Managed Stores | 1,406 | - The company's business strategy focuses on maximizing cash flow, acquiring stores in targeted markets, disposing of non-core assets, and expanding its third-party management business to source future acquisition opportunities[33](index=33&type=chunk)[39](index=39&type=chunk) 2023 Acquisition and Disposition Activity | Activity | Number of Stores | Transaction Price (in thousands) | | :--- | :--- | :--- | | Acquisition (New Jersey) | 1 | $22,000 | | Disposition (Illinois) | 1 | $8,000 | - Revenue is geographically concentrated, with four states contributing over half of the total revenues for FY2023: New York (**17%**), Florida (**15%**), California (**11%**), and Texas (**9%**)[36](index=36&type=chunk) - As of December 31, 2023, the company employed **3,040** teammates in the United States, with an average tenure of **3.5 years**, and a workforce that is **56%** female and approximately **45%** self-identified as belonging to a racial or ethnic minority group[54](index=54&type=chunk)[62](index=62&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces operational, financial, regulatory, and organizational risks, including economic downturns, market concentration, and interest rate fluctuations - The company's financial performance is highly dependent on economic conditions in its key markets of New York, Florida, California, and Texas, which together accounted for approximately **52%** of total 2023 revenues[72](index=72&type=chunk) - Significant competition exists from other self-storage REITs and local operators for both customers and acquisition opportunities, which could pressure rental rates and increase acquisition costs[84](index=84&type=chunk)[86](index=86&type=chunk) - The company faces risks from climate change, including potential damage to properties from severe weather events and increased costs related to transitioning to a low-carbon economy[92](index=92&type=chunk) - Failure to maintain its status as a REIT would subject the company to U.S. federal income tax, significantly reducing cash available for distribution to shareholders[108](index=108&type=chunk) - The company faces refinancing risk associated with significant outstanding balances on debt maturities ("balloon payments") and is subject to restrictive covenants in its credit facilities and senior notes[126](index=126&type=chunk)[131](index=131&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[170](index=170&type=chunk) [Cybersecurity](index=28&type=section&id=Item%201C.%20Cybersecurity) The company integrates cybersecurity into its risk management, overseen by a dedicated team and the Audit Committee, with no material incidents since January 2021 - The company's information security strategy is guided by the Critical Security Controls from the Center for Internet Security, Inc., and it engages external experts for regular audits and threat assessments[174](index=174&type=chunk)[175](index=175&type=chunk) - The Board's Audit Committee, which includes two independent Trustees with significant information technology experience, has primary responsibility for overseeing cybersecurity risks and receives annual briefings from the Cybersecurity Leadership Team[183](index=183&type=chunk)[184](index=184&type=chunk) - The company has not experienced any cybersecurity incidents resulting in material financial loss since January 1, 2021, and is not aware of any threats likely to materially affect its business or financial condition[177](index=177&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) As of December 31, 2023, CubeSmart owned 611 properties totaling 44.1 million rentable square feet with 89.8% occupancy, and plans significant capital expenditures for 2024 Owned Properties by State (Top 5 as of Dec 31, 2023) | State | Number of Stores | Total Rentable Square Feet | % of Total Rentable SF | Ending Occupancy | | :--- | :--- | :--- | :--- | :--- | | Florida | 90 | 6,787,173 | 15.4% | 90.9% | | Texas | 76 | 5,447,787 | 12.3% | 90.3% | | California | 63 | 4,786,036 | 10.9% | 90.4% | | New York | 59 | 4,722,118 | 10.7% | 90.8% | | Arizona | 48 | 3,092,942 | 7.0% | 87.8% | | **Total** | **611** | **44,131,804** | **100.0%** | **89.8%** | - The company holds ownership interests (ranging from **10%** to **50%**) in seven unconsolidated real estate ventures, which collectively own **77** self-storage properties with approximately **5.6 million** net rentable square feet[193](index=193&type=chunk) - For 2024, planned capital expenditures are projected to be between **$69.0 million** and **$89.0 million**, covering improvements, recurring expenses, and new development[196](index=196&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material legal proceedings that would adversely affect its financial condition or operations - There are no material legal proceedings pending against the company[198](index=198&type=chunk) [Mining Safety Disclosures](index=32&type=section&id=Item%204.%20Mining%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[199](index=199&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CubeSmart's common shares trade on the NYSE, with 161 record holders and a share repurchase program, showing a 97.56% cumulative return over five years - The Parent Company's common shares trade on the NYSE under the symbol **CUBE**. As of December 31, 2023, there were **161** registered holders of record[203](index=203&type=chunk) - A share repurchase program for up to **3.0 million** common shares is in place, but no shares have been repurchased under this program to date[202](index=202&type=chunk) Cumulative Total Shareholder Return (2018-2023) | Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CubeSmart | 100.00 | 114.12 | 127.44 | 222.49 | 163.95 | 197.56 | | S&P 500 Index | 100.00 | 131.49 | 155.68 | 200.37 | 164.08 | 207.21 | | FTSE NAREIT All Equity REIT Index | 100.00 | 128.66 | 122.07 | 172.49 | 129.45 | 144.16 | [Reserved](index=33&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Total revenues increased **4.0%** to **$1.05 billion** in 2023, with net income up **41.0%** to **$410.8 million**, and strong liquidity maintained Comparison of Operations (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,050,334 | $1,009,624 | 4.0% | | Net Operating Income (NOI) | $755,554 | $716,364 | 5.5% | | Net Income Attributable to Common Shareholders | $410,757 | $291,263 | 41.0% | | Same-Store Rental Income | $882,011 | $853,939 | 3.3% | - The **3.7%** increase in total rental income was primarily driven by higher rental rates, as evidenced by a **4.8%** increase in realized annual rent per occupied square foot in the same-store portfolio[239](index=239&type=chunk) - Depreciation and amortization expense decreased by **35.2%** (**$109.4 million**), mainly due to reduced amortization of in-place lease intangibles related to stores acquired in 2021[241](index=241&type=chunk) FFO Reconciliation (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $410,757 | $291,263 | | FFO attributable to common shareholders | $615,106 | $562,654 | | FFO, as adjusted | $609,435 | $574,466 | - As of December 31, 2023, the company had **$6.5 million** in cash and **$831.3 million** available for borrowing under its revolving credit facility, indicating a strong liquidity position[271](index=271&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuation, with **$2.92 billion** in fixed-rate debt and **$18.1 million** in variable-rate debt as of year-end 2023 - As of December 31, 2023, the company's consolidated debt included **$2.92 billion** of fixed-rate obligations and **$18.1 million** of floating-rate borrowings[290](index=290&type=chunk) - A hypothetical **100 basis point** increase in interest rates would result in an estimated **$0.2 million** increase in annual interest expense on the company's variable-rate debt[291](index=291&type=chunk) - A **100 basis point** increase in market interest rates would decrease the fair value of the company's outstanding fixed-rate debt by approximately **$122.2 million**[292](index=292&type=chunk) [Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements and supplementary data are included in a separate section of the report, starting on page F-1 - The required financial statements are located in a separate section of the report, beginning on page F-1[293](index=293&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=45&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None reported[294](index=294&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2023, with no material changes to internal controls - Both the Parent Company's and the Operating Partnership's management concluded that their respective disclosure controls and procedures were effective as of the end of the period[296](index=296&type=chunk)[301](index=301&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[298](index=298&type=chunk)[302](index=302&type=chunk) [Other Information](index=46&type=section&id=Item%209B.%20Other%20Information) No Trustees or officers adopted or terminated Rule 10b5-1 trading arrangements during the fourth quarter of 2023 - No Trustees or officers adopted or terminated Rule 10b5-1 trading arrangements during the three months ended December 31, 2023[304](index=304&type=chunk) Part III [Trustees, Executive Officers, and Corporate Governance](index=47&type=section&id=Item%2010.%20Trustees%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on Trustees, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information regarding Trustees, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement[309](index=309&type=chunk) [Executive Compensation](index=47&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement[310](index=310&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=47&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Security ownership information is incorporated by reference from the 2024 Proxy Statement, detailing equity compensation plan securities Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be issued upon exercise (a) | Weighted-average exercise price (b) | Securities available for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by shareholders | 2,763,159 | $34.75 | 1,332,836 | | Total | 2,763,159 | $34.75 | 1,332,836 | - Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the 2024 Proxy Statement[312](index=312&type=chunk) [Certain Relationships and Related Transactions, and Trustee Independence](index=47&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Trustee%20Independence) Information on related party transactions and trustee independence is incorporated by reference from the 2024 Proxy Statement - Information regarding certain relationships, related transactions, and trustee independence is incorporated by reference from the 2024 Proxy Statement[312](index=312&type=chunk) [Principal Accountant Fees and Services](index=47&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement[313](index=313&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=48&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This item provides an index of all financial statements, schedules, and exhibits filed with the report[315](index=315&type=chunk)[316](index=316&type=chunk) [Form 10-K Summary](index=53&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[325](index=325&type=chunk) Financial Statements and Supplementary Data [Consolidated Financial Statements](index=65&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **$1.05 billion** in revenues and **$410.8 million** in net income for FY2023, with **$611.1 million** in operating cash flow Consolidated Balance Sheet Highlights (as of Dec 31) | Account (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Storage properties, net | $5,951,236 | $6,048,003 | | Total Assets | $6,225,020 | $6,325,830 | | Total Liabilities | $3,344,212 | $3,428,030 | | Total CubeSmart shareholders' equity | $2,798,828 | $2,826,203 | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | Account (in thousands) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Revenues | $1,050,334 | $1,009,624 | $822,564 | | Net Income | $412,435 | $292,472 | $230,813 | | Net Income Attributable to Common Shareholders | $410,757 | $291,263 | $223,482 | | Diluted EPS | $1.82 | $1.29 | $1.09 | Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31) | Account (in thousands) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $611,136 | $591,466 | $449,185 | | Net cash used in investing activities | $(93,818) | $(48,767) | $(1,852,668) | | Net cash (used in) provided by financing activities | $(518,026) | $(547,092) | $1,410,572 | [Notes to Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, property transactions, unconsolidated ventures, debt instruments, lease obligations, and share-based compensation plans - In 2023, the company acquired one store for **$22.0 million** and disposed of one store for **$8.0 million** via an involuntary conversion[460](index=460&type=chunk) - As of December 31, 2023, the company held investments in seven unconsolidated real estate ventures, which collectively own **77** properties. The carrying value of these investments was **$98.3 million**[482](index=482&type=chunk) - The company had **$2.8 billion** in principal outstanding on unsecured senior notes and **$121.4 million** on mortgage loans and notes payable as of December 31, 2023[487](index=487&type=chunk)[493](index=493&type=chunk) - As of December 31, 2023, the company had **2,763,159** outstanding stock options and **360,529** non-vested restricted shares and performance units under its share-based compensation plans[533](index=533&type=chunk)[537](index=537&type=chunk)

Investors are always looking for stocks that are poised to beat at earnings season and CubeSmart (CUBE) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because CubeSmart is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator ...

In its upcoming report, CubeSmart (CUBE) is predicted by Wall Street analysts to post quarterly earnings of $0.68 per share, reflecting an increase of 1.5% compared to the same period last year. Revenues are forecasted to be $263.34 million, representing a year-over-year increase of 0.9%.The current level reflects a downward revision of 7.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial p ...

MALVERN, Pa., Jan. 31, 2024 (GLOBE NEWSWIRE) -- CubeSmart (NYSE:CUBE) today announced that the Company will release financial results for the three-month period ended December 31, 2023 after the market close on Thursday, February 29, 2024. An accompanying conference call will be held at 11:00 a.m. ET on Friday, March 1, 2024. A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.cubesmart.com. Telephone participants may join ...

CubeSmart (NYSE:CUBE) Q3 2023 Earnings Conference Call November 3, 2023 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 Jeff Spector - Bank of America Spenser Allaway - Green Street Smedes Rose - Citi Todd Thomas - KeyBanc Capital Markets Michael Goldsmith - UBS Juan Sanabria - BMO Capital Markets Kassandra Fieber - Truist Securities Steve Sakwa - Evercore Keegan Carl - ...