CubeSmart(US:CUBE)2025-05-02 20:23Property Management and Operations - As of March 31, 2025, the company owned 659 self-storage properties with approximately 48.1 million rentable square feet, compared to 631 properties and 45.8 million square feet as of December 31, 2024[116]. - The company managed a total of 1,528 stores, including 869 stores for third parties, as of March 31, 2025[116]. - For the three months ended March 31, 2025, the company's stores in New York, Florida, Texas, and California contributed approximately 17%, 14%, 11%, and 10% of total revenues, respectively[122]. - The company experienced seasonal fluctuations in occupancy levels, typically higher during summer months due to increased moving activity[118]. - The company focuses on maximizing internal growth opportunities while selectively pursuing targeted acquisitions and developments of self-storage properties[120]. - The company acquired 28 stores from January 1, 2024, to March 31, 2025, increasing the total from 631 to 659 stores[138]. - The company has no significant customer concentration, with no single customer representing a significant portion of revenues[122]. Financial Performance - Total revenues increased from $261.4 million for the three months ended March 31, 2024, to $273.0 million for the three months ended March 31, 2025, an increase of $11.6 million, or 4.4%[143]. - Property operating expenses increased from $77.0 million for the three months ended March 31, 2024, to $82.9 million for the three months ended March 31, 2025, an increase of $5.9 million, or 7.7%[144]. - Depreciation and amortization increased from $50.7 million for the three months ended March 31, 2024, to $59.2 million for the three months ended March 31, 2025, an increase of $8.4 million, or 16.6%[145]. - Interest expense on loans increased from $22.9 million during the three months ended March 31, 2024, to $26.1 million during the three months ended March 31, 2025, an increase of $3.2 million, or 13.9%[146]. - Cash provided by operating activities decreased from $150.2 million for the three months ended March 31, 2024, to $146.3 million for the three months ended March 31, 2025, reflecting a decrease of $3.8 million[147]. - Cash used in investing activities increased from $34.2 million for the three months ended March 31, 2024, to $467.3 million for the three months ended March 31, 2025, reflecting an increase of $433.1 million[148]. - Cash provided by financing activities was $259.1 million for the three months ended March 31, 2025, compared to cash used of $116.5 million for the three months ended March 31, 2024, reflecting a change of $375.6 million[149]. - For the three months ended March 31, 2025, net income attributable to the company's common shareholders was $89.197 million, compared to $94.527 million for the same period in 2024[176]. - Funds from operations (FFO) attributable to the company's common shareholders and third-party OP unitholders for the three months ended March 31, 2025, was $148.149 million, slightly up from $146.409 million in 2024[176]. Debt and Liquidity - As of March 31, 2025, the company had approximately $10.8 million in available cash and cash equivalents, and approximately $467.0 million of availability for borrowings under its Revolver[158]. - The average outstanding debt balance increased from $2.99 billion during the three months ended March 31, 2024, to $3.20 billion during the three months ended March 31, 2025[146]. - As of March 31, 2025, the total outstanding unsecured senior notes amounted to $2,781.666 million, slightly up from $2,780.631 million as of December 31, 2024[159]. - The effective interest rates on the unsecured senior notes range from 2.10% to 4.46%, with a weighted average effective interest rate of 3.994% for the 2025 notes[160]. - The company has an $850 million unsecured revolving credit facility maturing on February 15, 2027, with borrowings under the facility having an interest rate of 5.44% as of March 31, 2025[162][163]. - As of March 31, 2025, $467 million was available for borrowing under the revolving credit facility, reduced by an outstanding letter of credit of $0.6 million[163]. - The total mortgage loans and notes payable, net, as of March 31, 2025, was $205.500 million, down from $205.915 million as of December 31, 2024[165]. Risk Management - The company’s operating results are sensitive to changes in economic conditions affecting consumer spending, which could impact growth and profitability[119]. - The company aims to manage interest rate risk through derivative financial instruments to mitigate the impact of interest rate fluctuations on earnings and cash flows[180]. - A 100 basis point increase in market interest rates on variable-rate debt would decrease future earnings and cash flows by approximately $3.8 million annually[182]. - A 100 basis point decrease in market interest rates on variable-rate debt would increase future earnings and cash flows by approximately $3.8 million annually[182]. - A 100 basis point increase in market interest rates would decrease the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $101.1 million[183]. - A 100 basis point decrease in market interest rates would increase the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $105.3 million[183]. Compliance and Governance - The company replaced its prior at-the-market equity distribution program with a new program allowing the sale of up to 13,510,817 common shares, with no shares sold under the new program as of March 31, 2025[166][167]. - The company was in compliance with all financial covenants under the unsecured senior notes and the revolving credit facility as of March 31, 2025[161][164].