CubeSmart(US:CUBE)2022-02-25 19:55Financial Data and Key Metrics Changes - The company reported a 15.8% revenue growth for same-store performance in Q4 2021, with a 20.6% increase in NOI for the quarter [13] - Average occupancy in Q4 was 93.8%, ending the quarter at 93.3% [13] - FFO per share as adjusted was $0.58 for the quarter, representing a 23.4% growth over the previous year [14] Business Line Data and Key Metrics Changes - The Southeast and Southwest markets led the same-store revenue growth, contributing to the overall robust performance [13] - The non-same-store portfolio and third-party management business also showed solid performance due to strong operating fundamentals [14] Market Data and Key Metrics Changes - The Acela corridor markets returned to more normalized seasonality, with expectations for the West Coast and Sun Belt markets to follow suit in 2022 [22][23] - In New York, occupancy improved by approximately 75 basis points compared to the previous year [38] Company Strategy and Development Direction - The company is focused on disciplined external growth, highlighted by the $1.7 billion acquisition of LAACO Limited, which added a 59-store portfolio [15] - The company aims to continue providing personalized services while enhancing digital experiences for customers [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the normalization of demand trends in New York and other markets as the pandemic's impact lessens [36][37] - The company anticipates a gradual return to traditional seasonality across most markets in 2022 [8] Other Important Information - The company completed an equity offering of 15.5 million common shares at $51 per share, raising net proceeds of $765 million [17] - Property tax increases are expected to be in the 4% to 7% range for 2022, consistent with previous years [75] Q&A Session Summary Question: What are the geographic trends post-COVID? - Management noted that the Acela corridor has normalized, with expectations for the West Coast and Sun Belt markets to follow [22][23] Question: Update on the supply picture in New York? - Management provided insights on varying supply impacts across boroughs, with expectations for a decline in new openings in 2023 [30][31] Question: Demand picture in New York relative to the Sun Belt? - Demand trends in New York have been positive, with rental volumes improving compared to last year [34] Question: Guidance for Storage West? - The magnitude of expected accretion remains unchanged, with increased confidence due to successful integration [40] Question: Visibility around stabilizing and growing the third-party management platform? - The company aims to continue providing excellent service and expects to add between 100 and 200 stores to the platform annually [46] Question: Changes in lease duration since pre-COVID levels? - About 60% of customers have been with the company for over a year, indicating longer lease durations compared to pre-COVID levels [69] Question: Property taxes in 2022? - Property tax increases are expected to be in the 4% to 7% range, with no relief anticipated [75] Question: Impact of labor challenges in New York City? - Labor sourcing remains a challenge, but existing staff continue to perform well [85]