CubeSmart Q3 revenue rises as occupancy and rental activity improve
Overview
U.S. self-storage REIT's Q3 revenue and adjusted FFO per share grew modestly yr/yr
Diluted EPS for Q3 rose to $0.42 from $0.36 a year earlier
Company repurchased 2.1 mln shares for $83.9 mln and redeemed $300 mln in senior notes
Outlook
CubeSmart raises 2026 same-store revenue growth outlook to 1.00%-1.40% from 0.50%-1.25%
Company now expects 2026 same-store NOI growth of 0.00%-0.80%, up from (1.00%)-0.25%
CubeSmart sees 2026 FFO, as adjusted, per diluted share at $2.58-$2.60
Result Drivers
HIGHER OCCUPANCY - Co said increased occupancy and improving rental activity drove same-store revenue and NOI growth
RENTAL RATE GAINS - Co attributed revenue growth to higher rental rates in its same-store portfolio
OPERATING EXPENSES - Co said property operating expenses rose due to higher property taxes and personnel expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Rental income | $247.76 mln | ||
Q3 EPS | $0.42 | ||
Q3 Net Income | $94.31 mln | ||
Q3 Adjusted FFO | $150.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for CubeSmart is $43.00, about 6.6% above its October 28 closing price of $40.33
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)