imaginima A common theme of research on REITer’s Digest is that REITs come in all shapes and sizes. There are REITs, both big and small, that invest in a whole ecosystem of asset classes. Many even specialize in specific subcategories of property types. Today, we are going to dive into one of only a handful of companies operating in the self-storage industry. We will discuss CubeSmart (NYSE:CUBE) and the self-storage market at large. CubeSmart recently reported earnings for the first quarter. After seve ...

[FORM 10-Q](index=1&type=section&id=FORM%2010-Q) Common Shares Outstanding (As of April 24, 2024) | Category | Shares Outstanding as of April 24, 2024 | | :----------- | :-------------------------------------- | | Common Stock | 224,972,363 | [EXPLANATORY NOTE](index=2&type=section&id=EXPLANATORY%20NOTE) - This report consolidates the quarterly reports of CubeSmart (the Parent Company, a REIT) and CubeSmart, L.P. (the Operating Partnership) to provide a comprehensive business view, reduce redundant disclosures, and enhance efficiency[23](index=23&type=chunk)[24](index=24&type=chunk)[43](index=43&type=chunk) - The Parent Company is the sole general partner of the Operating Partnership, holding a **99.4% interest** as of March 31, 2024[19](index=19&type=chunk) - The Operating Partnership holds most of the company's assets and conducts its business, while the Parent Company primarily acts as the general partner, issuing public equity and guaranteeing the Operating Partnership's debt[42](index=42&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) - This report contains forward-looking statements based on assumptions and expectations that may not be realized, subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[30](index=30&type=chunk) - Key risks include adverse changes in economic conditions, increased competition, failure to execute business plans, pandemic impacts, reduced capital availability and increased costs, rising interest rates, financing risks, REIT qualification maintenance risks, acquisition and development failures, increased taxes, non-performance by joint venture partners, asset valuation declines, and cybersecurity breaches[49](index=49&type=chunk)[32](index=32&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 its subsidiaries, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with corresponding statements for CubeSmart, L.P. and its subsidiaries, accompanied by detailed notes explaining organizational structure, accounting policies, and financial specifics [Consolidated Balance Sheets (CubeSmart and Subsidiaries)](index=9&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Key Data (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :----------------------- | :------------- | :---------------- | | Total Assets | 6,208,888 | 6,225,020 | | Total Liabilities | 3,346,849 | 3,344,212 | | Total Equity | 2,803,786 | 2,820,532 | | Storage Properties, Net | 5,938,734 | 5,951,236 | | Cash and Cash Equivalents| 5,587 | 6,526 | [Consolidated Statements of Operations (CubeSmart and Subsidiaries)](index=10&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Consolidated Statements of Operations Key Data (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | | :--------------------------------------- | :------ | :------ | | Total Revenue | 261,406 | 256,528 | | Operating Expenses | 143,379 | 136,130 | | Net Income | 94,858 | 97,942 | | Net Income Attributable to Company Common Shareholders | 94,527 | 97,566 | | Basic Earnings Per Share | 0.42 | 0.43 | | Diluted Earnings Per Share | 0.42 | 0.43 | [Consolidated Statements of Comprehensive Income (Loss) (CubeSmart and Subsidiaries)](index=11&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Consolidated Statements of Comprehensive Income (Loss) Key Data (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | | :----------------------- | :----- | :----- | | Net Income | 94,858 | 97,942 | | Other Comprehensive Income | 20 | 20 | | Comprehensive Income | 94,878 | 97,962 | [Consolidated Statements of Equity (CubeSmart and Subsidiaries)](index=12&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20EQUITY) Consolidated Statements of Equity Key Data (in thousands USD) | Metric | Balance as of December 31, 2023 | Balance as of March 31, 2024 | | :------------------------------- | :------------------------------ | :--------------------------- | | Total CubeSmart Shareholders' Equity | 2,798,828 | 2,782,108 | | Noncontrolling Interests (Subsidiaries) | 21,704 | 21,678 | | Total Equity | 2,820,532 | 2,803,786 | [Consolidated Statements of Cash Flows (CubeSmart and Subsidiaries)](index=13&type=section&id=CUBESMART%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Consolidated Statements of Cash Flows Key Data (For the Three Months Ended March 31, in thousands USD) | Activity | 2024 | 2023 | | :----------------------------------------------- | :-------- | :-------- | | Net Cash Provided by Operating Activities | 150,150 | 136,706 | | Net Cash Used in Investing Activities | (34,220) | (25,560) | | Net Cash Used in Financing Activities | (116,534) | (111,289) | | Cash and Cash Equivalents and Restricted Cash, End of Period | 7,613 | 8,782 | [Consolidated Balance Sheets (CubeSmart, L.P. and Subsidiaries)](index=14&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Key Data (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :----------------------- | :------------- | :---------------- | | Total Assets | 6,208,888 | 6,225,020 | | Total Liabilities | 3,346,849 | 3,344,212 | | Total Capital | 2,803,786 | 2,820,532 | | Storage Properties, Net | 5,938,734 | 5,951,236 | | Cash and Cash Equivalents| 5,587 | 6,526 | [Consolidated Statements of Operations (CubeSmart, L.P. and Subsidiaries)](index=15&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Consolidated Statements of Operations Key Data (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | | :--------------------------------------- | :------ | :------ | | Total Revenue | 261,406 | 256,528 | | Operating Expenses | 143,379 | 136,130 | | Net Income | 94,858 | 97,942 | | Net Income Attributable to CubeSmart, L.P. | 95,068 | 98,180 | | Basic Earnings Per Unit | 0.42 | 0.43 | | Diluted Earnings Per Unit | 0.42 | 0.43 | [Consolidated Statements of Comprehensive Income (Loss) (CubeSmart, L.P. and Subsidiaries)](index=16&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Consolidated Statements of Comprehensive Income (Loss) Key Data (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | | :----------------------- | :----- | :----- | | Net Income | 94,858 | 97,942 | | Other Comprehensive Income | 20 | 20 | | Comprehensive Income | 94,878 | 97,962 | [Consolidated Statements of Capital (CubeSmart, L.P. and Subsidiaries)](index=17&type=section&id=CUBESMART%2C%20L.P.%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CAPITAL) Consolidated Statements of Capital Key Data (in thousands USD) | Metric | Balance as of December 31, 2023 | Balance as of March 31, 2024 | | :------------------------------- | :------------------------------ | :--------------------------- | | Total CubeSmart, L.P. Capital | 2,798,828 | 2,782,108 | | Noncontrolling Interests (Subsidiaries) | 21,704 | 21,678 | | Total Capital | 2,820,532 | 2,803,786 | [Notes to Unaudited Consolidated Financial Statements](index=19&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. Organization and Nature of Operations](index=19&type=section&id=1.%20ORGANIZATION%20AND%20NATURE%20OF%20OPERATIONS) - CubeSmart operates as a self-managed and self-administered real estate investment trust (REIT), conducting its business through CubeSmart, L.P. and its subsidiaries[8](index=8&type=chunk) - As of March 31, 2024, the company owned (or partially owned and consolidated) self-storage properties in the District of Columbia and **24 states**, operating as one reportable business segment[8](index=8&type=chunk) - The company typically experiences seasonal fluctuations in property occupancy, with slightly higher occupancy rates during summer months due to increased moving activity[98](index=98&type=chunk) [2. Summary of Significant Accounting Policies](index=19&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The unaudited consolidated financial statements are prepared in accordance with SEC rules and regulations for interim financial reporting, including all necessary adjustments for a fair presentation of financial position, results of operations, and cash flows[99](index=99&type=chunk) - The company records self-storage properties at cost less accumulated depreciation, with depreciation for buildings, improvements, and equipment recognized on a straight-line basis over estimated useful lives of **5 to 39 years**[204](index=204&type=chunk) - Upon property acquisition, the purchase price is allocated to acquired tangible and intangible assets and assumed liabilities based on their estimated relative fair values[183](index=183&type=chunk) - Long-lived assets are reviewed for impairment when indicators such as declining occupancy and poor operating performance arise, and are evaluated based on their recoverability[184](index=184&type=chunk) - Investments in unconsolidated real estate ventures are accounted for using the equity method, with regular assessments for other-than-temporary impairment[208](index=208&type=chunk) - ASU No. 2023-07—Segment Reporting (Topic 280), issued in November 2023, is not expected to have a material impact on the company's consolidated financial statements[122](index=122&type=chunk) [3. Storage Properties](index=21&type=section&id=3.%20STORAGE%20PROPERTIES) Summary of Storage Property Carrying Values (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :----------------------------- | :------------- | :---------------- | | Land | 1,599,314 | 1,594,742 | | Buildings and Improvements | 5,542,740 | 5,517,544 | | Equipment | 141,954 | 144,372 | | Construction in Progress | 71,635 | 69,010 | | Right-of-Use Assets - Finance Leases | 41,945 | 41,945 | | Total Storage Properties | 7,397,588 | 7,367,613 | | Less: Accumulated Depreciation | (1,458,854) | (1,416,377) | | Storage Properties, Net | 5,938,734 | 5,951,236 | [4. Investment Activity](index=23&type=section&id=4.%20INVESTMENT%20ACTIVITY) - In the first quarter of 2024, the company acquired **two properties** in Connecticut for a total purchase price of **$20.2 million**, including **$0.9 million** in intangible assets (in-place leases)[5](index=5&type=chunk)[125](index=125&type=chunk) - In 2023, the company acquired **one property** in New Jersey for **$22 million**, recognizing approximately **$0.5 million** in amortization expense[126](index=126&type=chunk) - In 2023, the company sold the California Yacht Club for **$0.8 million**, recognizing a **$0.2 million loss**; additionally, an Illinois property was involuntarily condemned for **$8 million**, resulting in a **$4.8 million gain**[127](index=127&type=chunk)[302](index=302&type=chunk) - As of March 31, 2024, the company had invested in **four consolidated joint ventures** for self-storage properties, with accumulated development costs of **$57.3 million** and estimated total construction costs of **$109.7 million**[128](index=128&type=chunk) [5. Investment in Unconsolidated Real Estate Ventures](index=24&type=section&id=5.%20INVESTMENT%20IN%20UNCONSOLIDATED%20REAL%20ESTATE%20VENTURES) Summary of Investments in Unconsolidated Real Estate Ventures (As of March 31, 2024) | Joint Venture Name | CubeSmart Ownership Percentage | Number of Properties (March 31, 2024) | Investment Carrying Value (in thousands USD, March 31, 2024) | | :--------------------------------- | :----------------------------- | :------------------------------------ | :----------------------------------------------------------- | | Fontana Self Storage, LLC | 50% | 1 | 13,461 | | Rancho Cucamonga Self Storage, LLC | 50% | 1 | 20,524 | | 191 V CUBE LLC (HVP V) | 20% | 6 | 12,628 | | 191 IV CUBE LLC (HVP IV) | 20% | 28 | 16,385 | | CUBE HHF Northeast Venture LLC (HHFNE) | 10% | 13 | 909 | | CUBE HHF Limited Partnership (HHF) | 50% | 28 | 32,320 | | **Total** | | **77** | **96,227** | - The company's share of earnings from unconsolidated real estate ventures decreased from **$2.6 million** in Q1 2023 to **$0.8 million** in Q1 2024, a **$1.7 million (66.9%) reduction**, primarily due to an excess distribution from HVPSE in Q1 2023[108](index=108&type=chunk)[215](index=215&type=chunk) Summary of Unconsolidated Real Estate Ventures Operating Results (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | | :----------------------- | :----- | :----- | | Total Revenue | 24,586 | 24,064 | | Net Income | 1,915 | 1,620 | | Company's Share of Net Income | 845 | 2,551 | [6. Other Assets](index=25&type=section&id=6.%20OTHER%20ASSETS) Composition of Other Assets (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :----------------------------------------- | :------------- | :---------------- | | Intangible Assets, Net | 2,036 | 1,806 | | Accounts Receivable, Net | 7,907 | 8,944 | | Prepaid Real Estate Taxes | 5,738 | 8,171 | | Prepaid Insurance | 2,174 | 4,879 | | Due from Related Parties | 20,018 | 18,045 | | Assets Related to Deferred Compensation Arrangements | 62,142 | 60,038 | | Right-of-Use Assets - Operating Leases | 50,179 | 50,476 | | Ground Lease Receivables | 6,206 | 6,193 | | Other | 6,233 | 4,732 | | **Total Other Assets, Net** | **162,633** | **163,284** | [7. Unsecured Senior Notes](index=27&type=section&id=7.%20UNSECURED%20SENIOR%20NOTES) Summary of Unsecured Senior Notes (in thousands USD) | Note Name | March 31, 2024 | December 31, 2023 | Effective Interest Rate | Maturity Date | | :----------------- | :------------- | :---------------- | :---------------------- | :------------ | | 4.000% Due 2025 | 300,000 | 300,000 | 3.99% | November 2025 | | 3.125% Due 2026 | 300,000 | 300,000 | 3.18% | September 2026| | 2.250% Due 2028 | 550,000 | 550,000 | 2.33% | December 2028 | | 4.375% Due 2029 | 350,000 | 350,000 | 4.46% | February 2029 | | 3.000% Due 2030 | 350,000 | 350,000 | 3.04% | February 2030 | | 2.000% Due 2031 | 450,000 | 450,000 | 2.10% | February 2031 | | 2.500% Due 2032 | 500,000 | 500,000 | 2.59% | February 2032 | | **Principal Balance** | **2,800,000** | **2,800,000** | | | | Less: Net Issuance Discount | (9,735) | (10,148) | | | | Less: Net Debt Issuance Costs | (12,740) | (13,362) | | | | **Unsecured Senior Notes, Net** | **2,777,525** | **2,776,490** | | | - As of March 31, 2024, the Operating Partnership complied with all senior note financial covenants, including a leverage ratio not exceeding **60%**, an interest coverage ratio exceeding **1.5:1.0**, and a secured debt leverage ratio not exceeding **40%**[134](index=134&type=chunk)[246](index=246&type=chunk) [8. Revolving Credit Facility](index=27&type=section&id=8.%20REVOLVING%20CREDIT%20FACILITY) - The company amended and restated its credit agreement on October 26, 2022, which includes an **$850 million** unsecured revolving credit facility maturing on February 15, 2027[154](index=154&type=chunk)[264](index=264&type=chunk) - As of March 31, 2024, the borrowing rate under the revolving credit facility was **6.37%**, with **$831 million** available for borrowing[135](index=135&type=chunk)[247](index=247&type=chunk) - For the three months ended March 31, 2024, the Operating Partnership complied with all financial covenants under the Second Amended and Restated Credit Agreement[136](index=136&type=chunk)[231](index=231&type=chunk)[304](index=304&type=chunk) [9. Mortgage Loans and Notes Payable](index=29&type=section&id=9.%20MORTGAGE%20LOANS%20AND%20NOTES%20PAYABLE) Summary of Mortgage Loans and Notes Payable (in thousands USD) | Mortgage Loans and Notes Payable | Carrying Value as of March 31, 2024 | Carrying Value as of December 31, 2023 | Effective Interest Rate | Maturity Date | | :------------------------------- | :---------------------------------- | :------------------------------------- | :---------------------- | :------------ | | Annapolis I, MD | 4,651 | 4,703 | 3.78% | May 2024 | | Brooklyn XV, NY | 14,657 | 14,746 | 2.15% | May 2024 | | Long Island City IV, NY | 11,862 | 11,946 | 2.15% | May 2024 | | Long Island City II, NY | 17,719 | 17,834 | 2.25% | July 2026 | | Long Island City III, NY | 17,723 | 17,839 | 2.25% | August 2026 | | Flushing II, NY | 54,300 | 54,300 | 2.15% | July 2029 | | **Principal Balance** | **120,912** | **121,368** | | | | Add: Unamortized Fair Value Adjustment | 7,103 | 7,689 | | | | Less: Net Debt Issuance Costs | (776) | (871) | | | | **Mortgage Loans and Notes Payable, Net** | **127,239** | **128,186** | | | - As of March 31, 2024, the company's mortgage loans were secured by self-storage properties with a net carrying value of approximately **$354.6 million**[115](index=115&type=chunk) [10. Accumulated Other Comprehensive Loss](index=29&type=section&id=10.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) - Accumulated other comprehensive loss primarily represents unrealized losses on interest rate swaps[157](index=157&type=chunk) Summary of Changes in Accumulated Other Comprehensive Loss (For the Three Months Ended March 31, 2024, in thousands USD) | Metric | Amount | | :----------------------------------------------- | :----- | | Balance as of December 31, 2023 | (413) | | Reclassification of Realized Loss on Interest Rate Swaps | 20 | | Balance as of March 31, 2024 | (393) | | Less: Portion Attributable to Noncontrolling Interests | 2 | | **Total Accumulated Other Comprehensive Loss Included in Equity** | **(391)**| [11. Risk Management and Use of Financial Instruments](index=30&type=section&id=11.%20RISK%20MANAGEMENT%20AND%20USE%20OF%20FINANCIAL%20INSTRUMENTS) - The company faces credit risk in cash accounts, but management considers the risk of loss low due to high credit ratings of major financial institutions[158](index=158&type=chunk) - The company uses derivative instruments, such as interest rate swap agreements, to manage interest rate risk, not for speculative purposes, aiming to minimize risk and/or borrowing costs[159](index=159&type=chunk) - As of March 31, 2024, and December 31, 2023, all of the company's derivative instruments were settled[160](index=160&type=chunk) - In Q1 2024, the company reclassified **$20 thousand** of unrealized losses from accumulated other comprehensive loss to interest expense, with an estimated **$0.1 million** expected to be reclassified over the next 12 months[305](index=305&type=chunk) [12. Fair Value Measurements](index=30&type=section&id=12.%20FAIR%20VALUE%20MEASUREMENTS) - The company uses a fair value hierarchy (Level 1, Level 2, Level 3) to measure the fair value of financial assets and liabilities, prioritizing observable inputs[141](index=141&type=chunk)[161](index=161&type=chunk)[13](index=13&type=chunk) - As of March 31, 2024, and December 31, 2023, the fair values of cash and cash equivalents, restricted cash, accounts receivable, other financial instruments, accounts payable, accrued expenses, and other liabilities approximated their carrying values[163](index=163&type=chunk) Carrying Value and Estimated Fair Value of Debt (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :------------ | :------------- | :---------------- | | Carrying Value| 2,923,164 | 2,922,776 | | Fair Value | 2,607,864 | 2,631,221 | [13. Noncontrolling Interests](index=32&type=section&id=13.%20NONCONTROLLING%20INTERESTS) - Noncontrolling interests represent third-party ownership in the company's consolidated joint ventures, primarily established for developing, owning, and operating new properties[144](index=144&type=chunk) Summary of Consolidated Joint Ventures (As of March 31, 2024, in thousands USD) | Consolidated Joint Venture | Number of Properties | Ownership Percentage | Total Assets | Total Liabilities | Related Party Loans | | :--------------------------------- | :------------------- | :------------------- | :----------- | :---------------- | :------------------ | | New Rochelle Investors, LLC | 1 | 70% | 24,855 | 1,253 | 599 | | 1074 Raritan Road, LLC | 1 | 90% | 14,141 | 7,931 | 6,642 | | 350 Main Street, LLC | 1 | 90% | 5,862 | 19 | — | | Astoria Investors, LLC | 1 | 70% | 43,338 | 28,937 | 27,397 | | CS Lock Up Anoka, LLC | 1 | 50% | 10,216 | 5,625 | 5,540 | | CS Valley Forge Village Storage, LLC | 1 | 70% | 19,149 | 14,873 | 14,792 | | CS Vienna, LLC | 1 | 80% | 30,200 | 35,325 | 34,875 | | SH3, LLC | 1 | 90% | 36,621 | 521 | — | | **Total** | **8** | | **184,382** | **94,484** | **89,845** | [14. Commitments and Contingencies](index=34&type=section&id=14.%20COMMITMENTS%20AND%20CONTINGENCIES) - As of March 31, 2024, third parties held **1,288,205 OP units** with a total redemption value of **$58.3 million**[146](index=146&type=chunk) - The company has entered into **four construction agreements** for new self-storage properties with developers, expecting to pay approximately **$38.5 million** in installments during 2024 and 2025[147](index=147&type=chunk) - The company is involved in claims arising in the ordinary course of business, for which management has adequately provided for potential liabilities, included in accounts payable, accrued expenses, and other liabilities[148](index=148&type=chunk) [15. Related Party Transactions](index=34&type=section&id=15.%20RELATED%20PARTY%20TRANSACTIONS) - The company provides management services to certain joint ventures and other related parties, with management fee income of **$1.2 million** for both Q1 2024 and Q1 2023[169](index=169&type=chunk) - As of March 31, 2024, amounts due from related parties totaled **$20 million**, and mortgage loans receivable from consolidated joint ventures amounted to **$89.8 million**[149](index=149&type=chunk) - The company recognized **$0.1 million** in revenue for both Q1 2024 and Q1 2023 as the lessor for ground leases related to the HVP IV properties in Texas[14](index=14&type=chunk)[171](index=171&type=chunk) [16. Earnings Per Share and Unit and Shareholders' Equity and Capital](index=36&type=section&id=16.%20EARNINGS%20PER%20SHARE%20AND%20UNIT%20AND%20SHAREHOLDERS'%20EQUITY%20AND%20CAPITAL) Earnings Per Share Calculation Components (CubeSmart Common Shareholders, in thousands USD, except per share amounts) | Metric | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net Income Attributable to Company Common Shareholders | 94,527 | 97,566 | | Weighted Average Basic Shares | 225,767 | 225,294 | | Weighted Average Diluted Shares | 226,575 | 226,183 | | Basic Earnings Per Share | 0.42 | 0.43 | | Diluted Earnings Per Share | 0.42 | 0.43 | Earnings Per Unit Calculation Components (CubeSmart, L.P., in thousands USD, except per unit amounts) | Metric | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net Income Attributable to CubeSmart, L.P. | 95,068 | 98,180 | | Weighted Average Basic Units | 227,057 | 226,717 | | Weighted Average Diluted Units | 227,865 | 227,606 | | Basic Earnings Per Unit | 0.42 | 0.43 | | Diluted Earnings Per Unit | 0.42 | 0.43 | Summary of OP Units Outstanding | OP Unit Holder | March 31, 2024 | March 31, 2023 | | :----------------------------- | :------------- | :------------- | | OP Units Held by Third Parties | 1,288,205 | 1,418,549 | | OP Units Held by General Partner | 224,965,172 | 224,671,525 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's operating results, financial condition, and cash flows for Q1 2024, focusing on revenue, expenses, investment activities, liquidity, and non-GAAP financial measures, while highlighting strategies in self-storage property operations, acquisitions, and development [Overview](index=39&type=section&id=Overview) - The company is an integrated self-storage real estate company with in-house capabilities for operating, designing, developing, leasing, managing, and acquiring self-storage properties[176](index=176&type=chunk) - As of March 31, 2024, the company owned **613 self-storage properties**, totaling approximately **44.4 million square feet**, and managed **860 properties** for third parties, totaling **1,473 properties**[176](index=176&type=chunk) - Company revenue primarily derives from customer storage space rentals and property management fees, with operating performance dependent on the ability to maintain and increase occupancy and rental rates[198](index=198&type=chunk) - Properties in New York, Florida, California, and Texas contributed **17%, 14%, 11%, and 9%**, respectively, to total revenue in Q1 2024[180](index=180&type=chunk) [Summary of Critical Accounting Policies and Estimates](index=41&type=section&id=Summary%20of%20Critical%20Accounting%20Policies%20and%20Estimates) - This section outlines critical accounting policies and estimates deemed essential by management for preparing the unaudited consolidated financial statements, which require management judgment and assumptions, and involve a degree of uncertainty[181](index=181&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) - As of March 31, 2024, the company owned **598 same-store properties** and **15 non-same-store properties**. Same-store properties had an ending occupancy rate of **90.4%**, compared to **91.7%** in the prior year period[187](index=187&type=chunk)[190](index=190&type=chunk) Operating Results Comparison (For the Three Months Ended March 31, in thousands USD) | Metric | 2024 | 2023 | Change | Change Rate | | :--------------- | :------ | :------ | :------ | :---------- | | Total Revenue | 261,406 | 256,528 | 4,878 | 1.9% | | Operating Expenses | 143,379 | 136,130 | 7,249 | 5.3% | | Net Operating Income | 184,369 | 185,401 | (1,032) | (0.6%) | | Net Income | 94,858 | 97,942 | (3,084) | (3.1%) | - Total revenue increased by **1.9%**, primarily due to increased revenue from non-same-store properties acquired or opened in 2023 and 2024, higher other property-related income from increased customer storage protection plan participation, and increased property management fees[237](index=237&type=chunk) - Property operating expenses increased by **8.3%**, primarily due to higher real estate taxes and property insurance for same-store properties[238](index=238&type=chunk) - Interest expense on loans decreased by **3.3%**, primarily due to a lower average outstanding debt balance and a slight decrease in the average effective interest rate[239](index=239&type=chunk) - Earnings from real estate ventures decreased by **66.9%**, primarily due to an excess distribution from HVPSE in Q1 2023[215](index=215&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash flow from operating activities is the company's primary source of liquidity, used to fund debt payments, distributions, and capital expenditures[242](index=242&type=chunk) Cash Flow Activities Comparison (For the Three Months Ended March 31, in thousands USD) | Activity | 2024 | 2023 | Change | | :---------------------------------------- | :-------- | :-------- | :------ | | Net Cash Provided by Operating Activities | 150,150 | 136,706 | 13,444 | | Net Cash Used in Investing Activities | (34,220) | (25,560) | (8,660) | | Net Cash Used in Financing Activities | (116,534) | (111,289) | (5,245) | - Net cash provided by operating activities increased by **$13.4 million**, primarily attributable to the timing and amount of payments for certain accounts payable and accrued expenses[216](index=216&type=chunk) - Net cash used in investing activities increased by **$8.7 million**, primarily due to **$20.1 million** in storage property acquisitions in Q1 2024, compared to no acquisitions in the prior year period[241](index=241&type=chunk) - Net cash used in financing activities increased by **$5.2 million**, primarily due to higher cash distributions to common shareholders and noncontrolling interests in the Operating Partnership[217](index=217&type=chunk) - As of March 31, 2024, the company had approximately **$5.6 million** in available cash and cash equivalents, and **$831 million** available under its revolving credit facility[226](index=226&type=chunk) - The company anticipates recurring capital expenditures of **$15 million to $20 million**, planned capital improvements and property upgrades of **$13 million to $18 million**, and new property development costs of **$18 million to $28 million** for the remainder of 2024[244](index=244&type=chunk)[222](index=222&type=chunk) - Through its at-the-market equity program, the company may issue and sell up to **60 million shares** of common stock, though no common stock was sold in Q1 2024[249](index=249&type=chunk)[266](index=266&type=chunk) [Non-GAAP Financial Measures](index=53&type=section&id=Non-GAAP%20Financial%20Measures) - Net Operating Income (NOI) is a key metric used by management to assess property operating performance, helping to measure property economic productivity and eliminate the effects of capital structure and depreciation[251](index=251&type=chunk)[252](index=252&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) - Funds From Operations (FFO) is a widely used performance measure for real estate companies, providing a more comparable assessment of operating performance by excluding non-operating items such as gains/losses on real estate sales, impairment charges, and depreciation and amortization[254](index=254&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) Reconciliation of FFO Attributable to Company Common Shareholders and Third-Party OP Unit Holders (in thousands USD) | Metric | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :----------------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net Income Attributable to Company Common Shareholders | 94,527 | 97,566 | | Add: Real Estate Depreciation and Amortization | 49,249 | 48,916 | | Add: Company's Share in Unconsolidated Real Estate Ventures | 2,092 | 2,134 | | Less: Net Gain on Sale of Real Estate | — | (1,713) | | Add: Noncontrolling Interests in Operating Partnership | 541 | 614 | | **FFO Attributable to Company Common Shareholders and Third-Party OP Unit Holders** | **146,409** | **147,517** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discloses the company's market risks, particularly the impact of interest rate fluctuations on revenue, cash flows, and the fair value of financial instruments, detailing sensitivity analyses for fixed and variable-rate debt [Market Risk](index=55&type=section&id=Market%20Risk) - The company's future revenues, cash flows, and the fair value of financial instruments are dependent on market interest rates[274](index=274&type=chunk) - As of March 31, 2024, the company's consolidated debt included **$2.92 billion** in fixed-rate mortgage loans and unsecured senior notes, and **$18.4 million** in variable-rate unsecured credit facility borrowings[276](index=276&type=chunk) [Effect of Changes in Interest Rates on our Outstanding Debt](index=55&type=section&id=Effect%20of%20Changes%20in%20Interest%20Rates%20on%20our%20Outstanding%20Debt) - If market interest rates increase by **100 basis points**, the fair value of fixed-rate debt would decrease by approximately **$115.5 million**; a **100 basis point decrease** would result in an increase of approximately **$119.7 million**[259](index=259&type=chunk) - If market interest rates for variable-rate debt increase/decrease by **100 basis points**, annual interest expense would decrease/increase by approximately **$0.2 million** accordingly[285](index=285&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) This section discloses the management's assessment of disclosure controls and procedures for both the Parent Company and Operating Partnership, confirming their effectiveness at a reasonable assurance level, and reports no material changes in internal control over financial reporting [Controls and Procedures (Parent Company)](index=55&type=section&id=Controls%20and%20Procedures%20(Parent%20Company)) - As of the end of the reporting period, the Parent Company's Chief Executive Officer and Chief Financial Officer assessed and concluded that its disclosure controls and procedures are effective at a reasonable assurance level[278](index=278&type=chunk)[288](index=288&type=chunk) [Controls and Procedures (Operating Partnership)](index=57&type=section&id=Controls%20and%20Procedures%20(Operating%20Partnership)) - As of the end of the reporting period, the Operating Partnership's Chief Executive Officer and Chief Financial Officer assessed and concluded that its disclosure controls and procedures are effective at a reasonable assurance level[289](index=289&type=chunk) [Changes in Internal Control Over Financial Reporting](index=57&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No changes in internal control over financial reporting for either the Parent Company or the Operating Partnership occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[262](index=262&type=chunk)[290](index=290&type=chunk) [Part II. OTHER INFORMATION](index=57&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses that the company currently has no pending legal proceedings, other than routine litigation and administrative actions arising in the ordinary course of business, which are not expected to have a material adverse effect on the company's financial condition, results of operations, or cash flows - The company currently has no pending legal proceedings, other than routine litigation and administrative actions arising in the ordinary course of business, which are not expected to have a material adverse effect on the company's financial condition, results of operations, or cash flows[280](index=280&type=chunk)[291](index=291&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on Parent Company common stock repurchases, primarily involving shares withheld for employee tax obligations, and mentions a board-approved but unexecuted share repurchase program [Repurchases of Parent Company Common Shares](index=58&type=section&id=Repurchases%20of%20Parent%20Company%20Common%20Shares) Parent Company Common Share Repurchase Information (For the Three Months Ended March 31, 2024) | Period | Total Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Repurchased Under Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Repurchased Under the Plans or Programs | | :----------------- | :----------------------- | :--------------------------- | :---------------------------------------------------------------------------- | :------------------------------------------------------------------------------- | | January 1 - January 31 | 17,736 | $46.17 | Not Applicable | 3,000,000 | | February 1 - February 29 | 278 | $43.69 | Not Applicable | 3,000,000 | | March 1 - March 31 | 167 | $43.60 | Not Applicable | 3,000,000 | | **Total** | **18,181** | **$46.11** | **Not Applicable** | **3,000,000** | - Repurchased shares represent common stock withheld by the company to cover employee tax obligations upon the vesting of restricted shares[293](index=293&type=chunk) - The Parent Company's Board of Trustees approved a repurchase program on September 27, 2007, authorizing the repurchase of up to **3 million shares** of common stock, though no repurchases have been made under this plan to date[281](index=281&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) This section states that no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by the company's trustees or officers during Q1 2024 [Trading Arrangements](index=58&type=section&id=Trading%20Arrangements) - During the three months ended March 31, 2024, no Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements were adopted or terminated by any of the company's trustees or officers[294](index=294&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO and CFO certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906) and financial information in Inline XBRL format - This section lists the exhibits filed with the report, including CEO and CFO certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906) and financial information in Inline XBRL format[296](index=296&type=chunk) [SIGNATURES OF REGISTRANT](index=60&type=section&id=SIGNATURES%20OF%20REGISTRANT) - This report was signed by Christopher P. Marr, Chief Executive Officer, Timothy M. Martin, Chief Financial Officer, and Matthew D. DeNarie, Chief Accounting Officer of CubeSmart on April 26, 2024[2](index=2&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk)

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 ...