CubeSmart(US:CUBE)2025-12-02 21:44Financial Performance - Net income attributable to common shareholders for Q3 2025 was $82.9 million, down from $100.8 million in Q3 2024, with diluted EPS decreasing to $0.36 from $0.44[6] - Adjusted FFO for Q3 2025 was $149.0 million, compared to $153.0 million in Q3 2024, with adjusted FFO per diluted share decreasing by 3.0% to $0.65[7] - Total revenues for Q3 2025 were $285.08 million, an increase of 5.4% compared to $270.89 million in Q3 2024[46] - Rental income reached $243.4 million in Q3 2025, up from $230.95 million in Q3 2024, reflecting a growth of 5.4%[46] - Net income attributable to the Company for Q3 2025 was $82.93 million, compared to $100.8 million in Q3 2024, representing a decrease of 17.7%[46] - Basic earnings per share attributable to common shareholders decreased to $0.36 in Q3 2025 from $0.45 in Q3 2024[46] - Net income for Q3 2025 was $82,416,000, down from $100,950,000 in Q3 2024, representing a decline of 18.3%[48] - Net operating income (NOI) for Q3 2025 was $166,454,000, a decrease of 1.5% from $168,966,000 in Q3 2024[48] - Funds From Operations (FFO) attributable to common shareholders for Q3 2025 was $148,971,000, a decrease from $153,012,000 in Q3 2024[51] - Earnings per share (EPS) attributable to common shareholders was $0.36 for Q3 2025, down from $0.45 in Q3 2024[51] Revenue and Expenses - Total revenues increased by $14.2 million, while property operating expenses rose by $9.0 million compared to Q3 2024, primarily due to acquisitions and new developments[17] - Property operating expenses for Q3 2025 were $90.85 million, up from $81.87 million in Q3 2024, indicating an increase of 11.9%[46] - Total operating expenses for Q3 2025 were $70,793,000, a slight increase of 0.3% from $70,578,000 in Q3 2024[48] - Interest expense increased from $22.8 million in Q3 2024 to $29.4 million in Q3 2025, attributed to a higher average outstanding debt balance and increased interest rates[18] Occupancy and Performance Metrics - Same-store NOI decreased by 1.5% year-over-year, driven by a 1.0% decrease in revenues and a 0.3% increase in operating expenses[10] - Same-store occupancy averaged 89.9% during the quarter, ending at 89.0%[10] - Period end occupancy rate was 89.0% in Q3 2025, down from 90.2% in Q3 2024[48] - Average occupancy for the period was 89.9% in Q3 2025, down from 90.7% in Q3 2024[48] - Realized annual rent per occupied square foot remained stable at $22.99 in Q3 2025 compared to $23.00 in Q3 2024[48] Acquisitions and Investments - The company acquired an 80% interest in HVP IV for $452.8 million, including $44.4 million to repay existing indebtedness[8] - The company entered contracts to acquire three properties in Arizona, Florida, and New Jersey for a total of $65.3 million, expected to close in Q4 2025[9] Assets and Liabilities - Total assets increased to $6.76 billion as of September 30, 2025, compared to $6.39 billion at the end of 2024, marking a growth of 5.7%[44] - Unsecured senior notes increased to $3.22 billion in Q3 2025 from $2.78 billion in Q4 2024, reflecting a rise of 15.9%[44] - Total liabilities rose to $3.90 billion as of September 30, 2025, compared to $3.44 billion at the end of 2024, an increase of 13.3%[44] Dividends and Future Estimates - The company declared a quarterly dividend of $0.52 per common share, paid on October 15, 2025[22] - The company estimates 2025 diluted EPS to be between $1.46 and $1.50, and adjusted FFO per share to be between $2.56 and $2.60[23] Risks and Challenges - The Company continues to face risks including adverse economic conditions and competition in the self-storage market, which could impact future performance[40] - The Company reported a total of 606 same-store results, which are critical for evaluating performance consistency[47]