CubeSmart Reports Second Quarter 2025 Results

Core Viewpoint - CubeSmart reported stable operating fundamentals with modest improvements in seasonal performance compared to the previous year, driven by reduced new supply and better pricing strategies for new customers [2][3]. Financial Results - Net income attributable to common shareholders for Q2 2025 was $83.0 million, down from $94.0 million in Q2 2024, with diluted EPS decreasing to $0.36 from $0.41 [3][8]. - Adjusted FFO for Q2 2025 was $148.9 million, slightly up from $146.0 million in Q2 2024, with FFO per diluted share increasing by 1.6% to $0.65 [4][40]. Investment Activity - No acquisitions were made in Q2 2025, but the company acquired an 80% interest in HVP IV for $452.8 million, which included repayment of $44.4 million of existing debt [5][6]. - The company has two joint venture development properties under construction, with a total anticipated investment of $36.9 million, of which $27.0 million has been invested as of June 30, 2025 [6]. Same-Store Results - The same-store portfolio included 606 stores with a net operating income (NOI) decrease of 1.1% year-over-year, attributed to a 0.5% decline in revenues and a 1.2% rise in operating expenses [8][9]. - Same-store occupancy averaged 90.6% during the quarter, ending at 91.1%, compared to 91.8% in the previous year [9][41]. Operating Results - Total consolidated portfolio as of June 30, 2025, included 659 stores with 48.1 million rentable square feet and a physical occupancy of 90.8% [10][11]. - Total revenues increased by $16.1 million, while property operating expenses rose by $5.9 million compared to Q2 2024, primarily due to acquisitions and new developments [11][12]. Financing Activity - Interest expense increased to $29.1 million in Q2 2025 from $22.8 million in Q2 2024, driven by a higher average outstanding debt balance and increased interest rates [12][13]. Quarterly Dividend - A quarterly dividend of $0.52 per common share was declared on May 20, 2025, and paid on July 15, 2025 [14]. 2025 Financial Outlook - The company estimates fully diluted EPS for 2025 to be between $1.44 and $1.50, and adjusted FFO per share to be between $2.54 and $2.60 [15][16].