CubeSmart(CUBE) - 2025 Q1 - Quarterly Results

Financial Performance - Net income attributable to common shareholders for Q1 2025 was $89.2 million, down from $94.5 million in Q1 2024, with diluted EPS decreasing to $0.39 from $0.42[5] - Adjusted FFO for Q1 2025 was $148.1 million, slightly up from $146.4 million in Q1 2024, maintaining FFO per diluted share at $0.64 for both periods[6] - Total revenues for Q1 2025 were $273.036 million, an increase of 4.0% from $261.406 million in Q1 2024[43] - Net income attributable to the company for Q1 2025 was $89.197 million, compared to $94.527 million in Q1 2024, reflecting a decrease of 5.0%[43] - Same-store rental income decreased by 0.8% to $220.912 million in Q1 2025 from $222.739 million in Q1 2024[45] - Basic earnings per share attributable to common shareholders for Q1 2025 was $0.39, down from $0.42 in Q1 2024[43] - FFO attributable to the Company's common shareholders and third-party OP unitholders increased to $148.149 million from $146.409 million, showing a growth of about 1.2%[49] - Earnings per share attributable to common shareholders remained stable at $0.39 for both basic and diluted shares, compared to $0.42 in the previous year[49] Revenue and Expenses - Total revenues increased by $11.6 million, while property operating expenses rose by $5.9 million compared to Q1 2024, primarily due to acquisitions and new developments[14] - Interest expense increased to $26.1 million in Q1 2025 from $22.9 million in Q1 2024, attributed to a higher average outstanding debt balance and increased interest rates[15] - Interest expense on loans increased to $26.100 million in Q1 2025, compared to $22.919 million in Q1 2024[43] - Real estate depreciation and amortization for real property increased to $56.689 million from $49.249 million, a rise of approximately 15.1%[49] Occupancy and Property Performance - Same-store NOI decreased by 0.8% year-over-year, driven by a 0.4% decline in revenues and a 0.6% increase in operating expenses[12] - Same-store occupancy averaged 89.5% during the quarter, ending at 89.7%[9] - Period end occupancy for same-store properties was 89.7%, down from 90.3% in the prior year[45] - The company reported a gross margin of 71.5% for same-store results, slightly down from 71.7% in the previous year[45] - The company experienced a 10.4% increase in other property-related income, rising to $10.498 million from $9.507 million year-over-year[45] Assets and Liabilities - Total assets increased to $6.740 billion as of March 31, 2025, up from $6.394 billion as of December 31, 2024[41] - Total liabilities increased to $3.817 billion as of March 31, 2025, compared to $3.440 billion as of December 31, 2024[41] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.52 per common share, paid on April 15, 2025[17] - Dividends per common share and unit increased to $0.52 from $0.51, reflecting a growth of approximately 2.0%[49] - The payout ratio of FFO rose to 81.3% from 79.7%, indicating a higher proportion of FFO being distributed as dividends[49] Shareholder Metrics - Weighted average diluted shares outstanding increased to 229,169 from 226,575, representing an increase of about 0.7%[49] - Weighted average basic shares outstanding increased to 228,663 from 225,767, reflecting an increase of about 1.1%[49] Future Estimates - The company estimates 2025 diluted EPS to be between $1.41 and $1.49, and adjusted FFO per share to be between $2.51 and $2.59[20] Acquisitions and Investments - The company acquired the remaining 80% interest in the HVP IV portfolio for $452.8 million, which included $44.4 million to repay existing indebtedness[7] - The company has two joint venture development properties under construction, with a total anticipated investment of $36.9 million, of which $18.5 million has been invested as of March 31, 2025[8] Noncontrolling Interests - Net income attributable to noncontrolling interests in the Operating Partnership decreased to $453,000 from $541,000, a decline of approximately 16.2%[49] - The Company's share of unconsolidated real estate ventures decreased to $1.810 million from $2.092 million, a decline of about 13.5%[49]