CubeSmart Reports Third Quarter 2025 Results

Core Viewpoint - CubeSmart reported third-quarter results that met expectations, with strong performance in coastal and urban markets, while sunbelt properties faced challenges in balancing rate and occupancy [2] Financial Results - 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 [4] - 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 [5] - 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][13] Investment Activity - No acquisitions were made in Q3 2025, but the company acquired an 80% interest in HVP IV for $452.8 million earlier in the year [6] - Contracts were signed to acquire three properties in Arizona, Florida, and New Jersey for a total of $65.3 million, expected to close in Q4 2025 [7] - One development property in New York was opened at a cost of $18.1 million, with another joint venture property under construction, anticipating a total investment of $19.0 million [8] Third-Party Management - The third-party management platform expanded to 863 stores, totaling 56.6 million rentable square feet, with 46 stores added in Q3 2025 [11] Operating Results - The total consolidated portfolio included 660 stores with 48.2 million rentable square feet and a physical occupancy rate of 88.6% as of September 30, 2025 [14] - 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 [15] Financing Activity - The company issued $450 million in unsecured senior notes due 2035, with proceeds used to repay debt and for general corporate purposes [17] Quarterly Dividend - A quarterly dividend of $0.52 per common share was declared on July 29, 2025, and paid on October 15, 2025 [19] 2025 Financial Outlook - The company estimates fully diluted EPS for 2025 to be between $1.46 and $1.50, and adjusted FFO per share to be between $2.56 and $2.60 [21]