CubeSmart(US:CUBE)2019-10-25 18:09Financial Data and Key Metrics Changes - The company reported a headline result of $0.44 per share of FFO as adjusted, which was at the high end of the guidance range [11] - Same-store revenue growth was 1.5%, while same-store expenses grew by 5.3%, resulting in same-store NOI growth of 0.1% during the quarter [11][12] - Same-store occupancy ended the quarter at 92.5%, with an average of 93.1% during the quarter [12] Business Line Data and Key Metrics Changes - The company acquired 2 stores during the quarter for just under $18 million, with year-to-date investments totaling $189 million into wholly owned store acquisitions [13] - The third-party management platform added 48 stores in the third quarter, bringing the total to 652 stores under management [15] Market Data and Key Metrics Changes - The company observed a slowdown in deliveries in its top 12 markets, with significant declines noted in Chicago, Miami, Dallas, and Houston [7][9] - The company reported a 120 basis points increase in year-over-year occupancy despite the new supply impact in Brooklyn [9] Company Strategy and Development Direction - The company remains focused on external growth through joint ventures and acquisitions, while maintaining a conservative balance sheet [10] - The company expects new store openings in its top 12 markets to peak in 2019 and decline in 2020, which is anticipated to alleviate some pricing pressure [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the impact of new supply, indicating that the customer base remains resilient [60] - The company anticipates continued pressure on pricing in supply-impacted markets but expects a gradual reduction in the rate of deceleration [7][10] Other Important Information - The company issued $350 million in senior unsecured notes at 3% interest, maturing in 2030, to fund acquisition and development activities [16] - The company narrowed its full-year guidance for FFO per share as adjusted to a range of $1.67 to $1.69 [17] Q&A Session Summary Question: Change in guidance and impact of Brooklyn - Management indicated that results in Brooklyn were better than anticipated, and the adjustment in guidance was due to mathematical challenges in reaching the high end of the range [20][21] Question: Supply impact and lag time - Management noted a typical lag of 9 to 13 months between peak supply and its impacts on pricing [23] Question: Increase in property taxes - Management acknowledged significant pressure on property tax growth, particularly in Texas and other major MSAs, and expects this trend to continue [28][29] Question: Revenue-management experiments - Management confirmed ongoing revenue-management experiments, which may have put some pressure on quarterly revenue growth [33] Question: Opportunities in the market - Management stated that while there are always opportunities, they do not see a significant market shift prompting owners to sell due to distress [36][37] Question: Net effective rate trends - Management reported no sharp changes in net effective rates, with some markets experiencing pressure due to supply [42] Question: Brooklyn development project - Management discussed the complexities of the Brooklyn development project and confirmed it is expected to open before the end of the year [56][57]