CubeSmart Reports Fourth Quarter and Annual 2024 Results
CubeSmart (NYSE: CUBE) reported its Q4 and full-year 2024 results, showing mixed performance amid a volatile self-storage environment. Key Q4 metrics include:
- Diluted EPS of $0.45, down from $0.50 year-over-year
- FFO per diluted share of $0.68, decreasing 2.9% from $0.70
- Same-store NOI decreased 3.7%, with revenues down 1.6% and operating expenses up 4.7%
- Same-store occupancy averaged 89.6%, ending at 89.3%
The company made significant acquisitions, including an 85% interest in 14 stores for $157.3 million and two additional stores for $22.0 million. Post-quarter, CUBE acquired a 28-store portfolio for $452.8 million. The company increased its quarterly dividend by 2% to an annualized rate of $2.08 per share and expanded its third-party management platform to 902 stores.
For 2025, CubeSmart projects diluted EPS between $1.40-$1.49 and FFO per share between $2.50-$2.59.
CubeSmart (NYSE: CUBE) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando una performance mista in un ambiente di self-storage volatile. Metrica chiave del Q4 include:
- EPS diluito di $0.45, in calo rispetto a $0.50 rispetto all'anno precedente
- FFO per azione diluita di $0.68, con una diminuzione del 2.9% rispetto a $0.70
- NOI same-store diminuito del 3.7%, con ricavi in calo dell'1.6% e spese operative aumentate del 4.7%
- L'occupazione same-store è stata in media dell'89.6%, chiudendo a 89.3%
La società ha effettuato acquisizioni significative, inclusa una partecipazione dell'85% in 14 negozi per $157.3 milioni e due negozi aggiuntivi per $22.0 milioni. Dopo il trimestre, CUBE ha acquisito un portafoglio di 28 negozi per $452.8 milioni. L'azienda ha aumentato il suo dividendo trimestrale del 2% a un tasso annualizzato di $2.08 per azione e ha ampliato la sua piattaforma di gestione di terzi a 902 negozi.
Per il 2025, CubeSmart prevede un EPS diluito compreso tra $1.40 e $1.49 e FFO per azione tra $2.50 e $2.59.
CubeSmart (NYSE: CUBE) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto en un entorno de autoalmacenamiento volátil. Métricas clave del Q4 incluyen:
- EPS diluido de $0.45, una disminución de $0.50 en comparación con el año anterior
- FFO por acción diluida de $0.68, disminuyendo un 2.9% desde $0.70
- NOI en tiendas comparables disminuyó un 3.7%, con ingresos cayendo un 1.6% y gastos operativos aumentando un 4.7%
- La ocupación en tiendas comparables promedió 89.6%, cerrando en 89.3%
La compañía realizó adquisiciones significativas, incluyendo un interés del 85% en 14 tiendas por $157.3 millones y dos tiendas adicionales por $22.0 millones. Después del trimestre, CUBE adquirió un portafolio de 28 tiendas por $452.8 millones. La empresa aumentó su dividendo trimestral en un 2% a una tasa anualizada de $2.08 por acción y amplió su plataforma de gestión de terceros a 902 tiendas.
Para 2025, CubeSmart proyecta un EPS diluido entre $1.40 y $1.49 y FFO por acción entre $2.50 y $2.59.
큐브스마트 (NYSE: CUBE)는 2024년 4분기 및 전체 연도 실적을 발표했으며, 변동성이 큰 셀프 스토리지 환경 속에서 혼합된 성과를 보였습니다. 4분기 주요 지표는 다음과 같습니다:
- 희석 주당 순이익(EPS) $0.45, 전년 대비 $0.50에서 감소
- 희석 주당 자산운용수익(FFO) $0.68, $0.70에서 2.9% 감소
- 동종 매장 순운영소득(NO이) 3.7% 감소, 수익 1.6% 감소, 운영비용 4.7% 증가
- 동종 매장 점유율 평균 89.6%, 89.3%로 종료
회사는 14개 매장에 대한 85% 지분을 $157.3백만에 인수하고, 추가로 두 개의 매장을 $22.0백만에 인수하는 등 중요한 인수를 진행했습니다. 분기 후, CUBE는 28개 매장 포트폴리오를 $452.8백만에 인수했습니다. 회사는 분기 배당금을 2% 인상하여 주당 연간 $2.08로 설정하고, 제3자 관리 플랫폼을 902개 매장으로 확장했습니다.
2025년을 위해 큐브스마트는 희석 EPS를 $1.40-$1.49로, 주당 FFO를 $2.50-$2.59로 예상하고 있습니다.
CubeSmart (NYSE: CUBE) a publié ses résultats du quatrième trimestre et de l'année complète 2024, montrant des performances mitigées dans un environnement de self-stockage volatile. Métriques clés du Q4 incluent:
- BPA dilué de 0,45 $, en baisse par rapport à 0,50 $ d'une année sur l'autre
- FFO par action diluée de 0,68 $, en baisse de 2,9 % par rapport à 0,70 $
- Le NOI des magasins comparables a diminué de 3,7 %, avec des revenus en baisse de 1,6 % et des dépenses d'exploitation en hausse de 4,7 %
- Le taux d'occupation des magasins comparables a été en moyenne de 89,6 %, se terminant à 89,3 %
La société a réalisé des acquisitions significatives, y compris une participation de 85 % dans 14 magasins pour 157,3 millions de dollars et deux magasins supplémentaires pour 22,0 millions de dollars. Après le trimestre, CUBE a acquis un portefeuille de 28 magasins pour 452,8 millions de dollars. L'entreprise a augmenté son dividende trimestriel de 2 % à un taux annualisé de 2,08 $ par action et a élargi sa plateforme de gestion tierce à 902 magasins.
Pour 2025, CubeSmart projette un BPA dilué entre 1,40 $ et 1,49 $ et un FFO par action entre 2,50 $ et 2,59 $.
CubeSmart (NYSE: CUBE) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung in einem volatilen Self-Storage-Umfeld zeigen. Wichtige Kennzahlen für das Q4 sind:
- Verwässerter EPS von $0.45, ein Rückgang von $0.50 im Jahresvergleich
- FFO pro verwässerter Aktie von $0.68, ein Rückgang um 2.9% von $0.70
- NOI der gleichen Geschäfte sank um 3.7%, mit einem Rückgang der Einnahmen um 1.6% und einem Anstieg der Betriebskosten um 4.7%
- Die Belegung der gleichen Geschäfte lag im Durchschnitt bei 89.6% und endete bei 89.3%
Das Unternehmen hat bedeutende Akquisitionen getätigt, darunter eine 85% Beteiligung an 14 Geschäften für $157.3 Millionen und zwei zusätzliche Geschäfte für $22.0 Millionen. Nach dem Quartal erwarb CUBE ein Portfolio von 28 Geschäften für $452.8 Millionen. Das Unternehmen erhöhte seine vierteljährliche Dividende um 2% auf einen annualisierten Satz von $2.08 pro Aktie und erweiterte seine Drittverwaltungsplattform auf 902 Geschäfte.
Für 2025 prognostiziert CubeSmart einen verwässerten EPS zwischen $1.40 und $1.49 und FFO pro Aktie zwischen $2.50 und $2.59.
- Quarterly dividend increased 2% to $2.08 annualized
- Added 29 stores to third-party management platform in Q4
- Strategic acquisition of 28-store portfolio post-quarter
- Strong liquidity position maintained
- Same-store NOI decreased 3.7% year-over-year
- Q4 EPS declined to $0.45 from $0.50 year-over-year
- FFO per share decreased 2.9% to $0.68
- Same-store revenues declined 1.6%
- Operating expenses increased 4.7%
Insights
CubeSmart's Q4 and full-year 2024 results reveal ongoing challenges in the self-storage sector, with same-store NOI declining 3.7% year-over-year driven by a 1.6% revenue decrease and a concerning 4.7% jump in operating expenses. The expense growth primarily stems from property tax increases, a potential ongoing pressure point for margins.
The company's financial metrics show deterioration across key indicators: Q4 diluted EPS fell to $0.45 from $0.50 year-over-year, while FFO per share dropped 2.9% to $0.68. Full-year results followed the same pattern with EPS declining to $1.72 from $1.82 and FFO per share decreasing 1.9% to $2.63.
Management's 2025 guidance of $2.50-$2.59 FFO per share suggests further compression from 2024's $2.63, indicating continued headwinds despite their optimism about reaching an "inflection point." This guidance appears cautious and realistic given current market conditions, though it raises questions about growth catalysts.
Despite these challenges, CubeSmart continues aggressive external growth, acquiring a majority stake in 14 stores for $157.3 million in Q4 and subsequently purchasing the remaining 80% of HVP IV for $452.8 million, adding 28 properties. This counter-cyclical acquisition strategy could prove advantageous if they're securing assets at favorable valuations during a market slowdown.
The company's third-party management platform continues to be a bright spot, growing by 160 stores in 2024 to reach 902 properties. This capital-light growth avenue provides fee income and potential acquisition pipelines without heavy investment.
The 2% dividend increase to an annualized $2.08 per share, while modest, demonstrates management's confidence in cash flow stability despite the challenging environment. However, if FFO continues declining as projected, dividend coverage metrics will tighten.
With average same-store occupancy at 89.6% (down from prior year but still healthy), CubeSmart maintains solid operational fundamentals despite revenue pressures, positioning them to potentially outperform when market conditions improve.
MALVERN, Pa., Feb. 27, 2025 (GLOBE NEWSWIRE) -- CubeSmart (NYSE: CUBE) today announced its operating results for the three and twelve months ended December 31, 2024.
“Operating trends in the quarter were in line with our expectations given the volatile self-storage environment,” commented President and Chief Executive Officer Christopher P. Marr. “Looking forward to 2025, we are optimistic that we have reached an inflection point in the trend of decelerating growth rates, although we remain cautious given the macro uncertainty. Our expectation is that self-storage fundamentals in 2025 will be consistent with the last two years as there is no obvious catalyst for a sharp acceleration. Self-storage remains a great business long-term, and we are well-positioned to create value through the continued evolution of our operating platform, our creative avenues for external growth, and our strong liquidity position.”
Key Highlights for the Fourth Quarter
- Reported diluted earnings per share (“EPS”) attributable to the Company’s common shareholders of
$0.45 . - Reported funds from operations (“FFO”), as adjusted, per diluted share of
$0.68 . - Same-store (598 stores) net operating income (“NOI”) decreased
3.7% year over year, resulting from a1.6% decrease in revenues and a4.7% increase in operating expenses. - Same-store occupancy averaged
89.6% during the quarter, ending at89.3% . - Closed on the acquisition of an
85% interest in consolidated joint ventures that collectively own 14 stores for$157.3 million . - Closed on the acquisition of two stores totaling
$22.0 million . - Increased the quarterly dividend
2.0% to an annualized rate of$2.08 per common share from the previous annualized rate of$2.04 per common share. - Added 29 stores to our third-party management platform, bringing our total third-party managed store count to 902.
Financial Results
Net income attributable to the Company’s common shareholders was
Net income attributable to the Company’s common shareholders for the year ended December 31, 2024 was
FFO, as adjusted was
FFO, as adjusted was
Investment Activity
Acquisition Activity
During the quarter ended December 31, 2024, the Company acquired an
During the quarter, the Company also acquired two stores in Oregon (1) and Pennsylvania (1) for an aggregate purchase price of approximately
Subsequent to December 31, 2024, the Company acquired the remaining
Development Activity
The Company has agreements with developers for the construction of self-storage properties in high-barrier-to-entry locations. During the year ended December 31, 2024, the Company opened for operation two development properties, one located in New Jersey and one located in New York, for a total cost of
As of December 31, 2024, the Company had two joint venture development properties under construction. The Company anticipates investing a total of
Third-Party Management
As of December 31, 2024, the Company’s third-party management platform included 902 stores totaling 59.1 million rentable square feet. During the three and twelve months ended December 31, 2024, the Company added 29 stores and 160 stores, respectively, to its third-party management platform.
Same-Store Results
The Company’s same-store portfolio as of December 31, 2024 included 598 stores containing 43.0 million rentable square feet, or approximately
Same-store physical occupancy as of December 31, 2024 and 2023 was
Operating Results
As of December 31, 2024, the Company’s total consolidated portfolio included 631 stores containing 45.8 million rentable square feet and had physical occupancy of
Total revenues increased
Interest expense decreased from
Financing Activity
During the three months ended December 31, 2024, the Company sold 1.7 million common shares of beneficial interest through its at-the-market (“ATM”) equity program at an average sales price of
Quarterly Dividend
On December 13, 2024, the Company declared a quarterly dividend of
2025 Financial Outlook
“Over the last few months, we executed on a pair of attractive investment opportunities to creatively grow the portfolio and create long-term value. In February, we closed on the buyout of our partner’s interest in the HVP IV joint venture, which consisted of 28 high-quality, purpose-built stores in top markets. The venture achieved the strategic objectives of both parties, and this exit allowed us to monetize our promote to acquire the assets at an attractive valuation,” commented Chief Financial Officer Tim Martin. “In the fourth quarter, we also closed on an investment into a joint venture where we were able to acquire a majority interest in a portfolio of 14 complementary, high-quality stores in the Dallas market.”
The Company estimates that its fully diluted earnings per share for 2025 will be between
| 2025 Full Year Guidance Range Summary | Current Ranges for Annual Assumptions | ||||||
| Same-store revenue growth | (2.00 | %) | to | 0.00 | % | ||
| Same-store expense growth | 3.25 | % | to | 4.75 | % | ||
| Same-store NOI growth | (4.25 | %) | to | (1.75 | %) | ||
| 2025 Acquisition Activity to Date (1) | |||||||
| Dilution from properties in lease-up | $ | (0.01 | ) | to | $ | (0.02 | ) |
| Property management fee income | $ | 42.0M | to | $ | 44.0M | ||
| General and administrative expenses | $ | 61.5M | to | $ | 63.5M | ||
| Interest and loan amortization expense | $ | 118.0M | to | $ | 124.0M | ||
| Full year weighted average shares and units | 230.5M | ||||||
| Diluted earnings per share attributable to common shareholders | $ | 1.40 | to | $ | 1.49 | ||
| Plus: real estate depreciation and amortization | 1.10 | 1.10 | |||||
| FFO, as adjusted, per diluted share | $ | 2.50 | to | $ | 2.59 | ||
| 1st Quarter 2025 Guidance | Range | ||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.35 | to | $ | 0.37 | ||
| Plus: real estate depreciation and amortization | 0.26 | 0.26 | |||||
| FFO, as adjusted, per diluted share | $ | 0.61 | to | $ | 0.63 | ||
(1) Includes acquisitions closed and under contract as of February 27, 2025.
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, February 28, 2025 to discuss financial results for the three and twelve months ended December 31, 2024.
A live webcast of the conference call will be available online from the investor relations page of the Company’s corporate website at investors.cubesmart.com. Telephone participants may join on the day of the call by dialing 1 (800) 715-9871 using conference ID number 4783436.
After the live webcast, the webcast will be available on CubeSmart’s website. In addition, a telephonic replay of the call will be available through March 14, 2025 by dialing 1 (800) 770-2030 using conference ID number 4783436.
Supplemental operating and financial data as of December 31, 2024 is available in the investor relations section of the Company’s corporate website.
About CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2024 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
Non-GAAP Financial Measures
Funds from operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (the “White Paper”), as amended, defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of real estate and related impairment charges, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a key performance indicator in evaluating the operations of the Company's stores. Given the nature of its business as a real estate owner and operator, the Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States. The Company believes that FFO is useful to management and investors as a starting point in measuring its operational performance because FFO excludes various items included in net income that do not relate to or are not indicative of its operating performance such as gains (or losses) from sales of real estate, gains from remeasurement of investments in real estate ventures, impairments of depreciable assets, and depreciation, which can make periodic and peer analyses of operating performance more difficult. The Company’s computation of FFO may not be comparable to FFO reported by other REITs or real estate companies.
FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of the Company’s ability to make cash distributions. The Company believes that to further understand its performance, FFO should be compared with its reported net income and considered in addition to cash flows computed in accordance with GAAP, as presented in its consolidated financial statements.
FFO, as adjusted represents FFO as defined above, excluding the effects of acquisition related costs, gains or losses from early extinguishment of debt, and other non-recurring items, which the Company believes are not indicative of the Company’s operating results.
The Company defines net operating income, which it refers to as “NOI,” as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income (loss): interest expense on loans, loan procurement amortization expense, loss on early extinguishment of debt, acquisition related costs, equity in losses of real estate ventures, other expense, depreciation and amortization expense, general and administrative expense, and deducting from net income (loss): equity in earnings of real estate ventures, gains from sales of real estate, net, other income, gains from remeasurement of investments in real estate ventures and interest income. NOI is a measure of performance that is not calculated in accordance with GAAP.
Management uses NOI as a measure of operating performance at each of its stores, and for all of its stores in the aggregate. NOI should not be considered as a substitute for net income, cash flows provided by operating, investing and financing activities, or other income statement or cash flow statement data prepared in accordance with GAAP.
The Company believes NOI is useful to investors in evaluating operating performance because it is one of the primary measures used by management and store managers to evaluate the economic productivity of the Company’s stores, including the ability to lease stores, increase pricing and occupancy, and control property operating expenses. Additionally, NOI helps the Company’s investors meaningfully compare the results of its operating performance from period to period by removing the impact of its capital structure (primarily interest expense on outstanding indebtedness) and depreciation of the basis in its assets from operating results.
Forward-Looking Statements
This presentation, together with other statements and information publicly disseminated by CubeSmart (“we,” “us,” “our” or the “Company”), contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the “Exchange Act.” Forward-looking statements include statements concerning the Company’s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “estimates,” “may,” “will,” “should,” “anticipates,” or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, future events and actual results, performance, transactions or achievements, financial and otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. As a result, you should not rely on or construe any forward-looking statements in this presentation, or which management or persons acting on their behalf may make orally or in writing from time to time, as predictions of future events or as guarantees of future performance. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation or as of the dates otherwise indicated in such forward-looking statements. All of our forward-looking statements, including those in this presentation, are qualified in their entirety by this statement.
There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this presentation. Any forward-looking statements should be considered in light of the risks and uncertainties referred to in Item 1A. “Risk Factors” in our Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission (“SEC”).
These risks include, but are not limited to, the following:
- adverse changes in economic conditions in the real estate industry and in the markets in which we own and operate self-storage properties;
- the effect of competition from existing and new self-storage properties and operators on our ability to maintain or raise occupancy and rental rates;
- the failure to execute our business plan;
- adverse consumer impacts and declines in general economic conditions from inflation, rising interest rates and wage stagnation including the impact on the demand for self-storage, rental rates and fees and rent collection levels;
- reduced availability and increased costs of external sources of capital;
- financing risks, including rising interest rates, the risk of over-leverage and the corresponding risk of default on our mortgage and other debt and potential inability to refinance existing or future debt;
- counterparty non-performance related to the use of derivative financial instruments;
- risks related to our ability to maintain our qualification as a real estate investment trust (“REIT”) for federal income tax purposes;
- the failure of acquisitions and developments to close on expected terms, or at all, or to perform as expected;
- increases in taxes, fees and assessments from state and local jurisdictions;
- the failure of our joint venture partners to fulfill their obligations to us or their pursuit of actions that are inconsistent with our objectives;
- reductions in asset valuations and related impairment charges;
- negative publicity relating to our business or industry, which could adversely affect our reputation;
- increases in operating costs, including, without limitation, insurance, utility and other general expenses, which could adversely affect our financial results;
- cybersecurity breaches, cyber or ransomware attacks or a failure of our networks, systems or technology, which could adversely impact our business, customer and employee relationships or result in fraudulent payments;
- risks associated with generative artificial intelligence tools and large language models and the conclusions that these tools and models may draw about our business and prospects in connection with the dissemination of negative opinions, characterizations or disinformation;
- changes in real estate, zoning, use and occupancy laws or regulations;
- risks related to or consequences of earthquakes, hurricanes, windstorms, floods, wildfires, other natural disasters or acts of violence, pandemics, active shooters, terrorism, insurrection or war that impact the markets in which we operate;
- potential environmental and other material liabilities;
- governmental, administrative and executive orders, regulations and laws, which could adversely impact our business operations and customer and employee relationships;
- uninsured or uninsurable losses and the ability to obtain insurance coverage, indemnity or recovery from insurance against risks and losses;
- changes in the availability of and the cost of labor;
- other factors affecting the real estate industry generally or the self-storage industry in particular; and
- other risks identified in Item 1A of our Annual Report on Form 10-K and, from time to time, in other reports that we file with the SEC or in other documents that we publicly disseminate.
Given these uncertainties, we caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise except as may be required in securities laws.
Contact:
CubeSmart
Josh Schutzer
Vice President, Finance
(610) 535-5700
| CUBESMART AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Storage properties | $ | 7,628,774 | $ | 7,367,613 | |||
| Less: Accumulated depreciation | (1,590,588 | ) | (1,416,377 | ) | |||
| Storage properties, net (includes VIE amounts of | 6,038,186 | 5,951,236 | |||||
| Cash and cash equivalents (includes VIE amounts of | 71,560 | 6,526 | |||||
| Restricted cash (includes VIE amounts of | 6,103 | 1,691 | |||||
| Loan procurement costs, net of amortization | 2,731 | 3,995 | |||||
| Investment in real estate ventures, at equity | 91,973 | 98,288 | |||||
| Other assets, net | 183,628 | 163,284 | |||||
| Total assets | $ | 6,394,181 | $ | 6,225,020 | |||
| LIABILITIES AND EQUITY | |||||||
| Unsecured senior notes, net | $ | 2,780,631 | $ | 2,776,490 | |||
| Revolving credit facility | — | 18,100 | |||||
| Mortgage loans and notes payable, net (includes VIE amounts of | 205,915 | 128,186 | |||||
| Lease liabilities - finance leases | 65,668 | 65,714 | |||||
| Accounts payable, accrued expenses and other liabilities | 229,581 | 201,419 | |||||
| Distributions payable | 119,600 | 115,820 | |||||
| Deferred revenue | 38,918 | 38,483 | |||||
| Total liabilities | 3,440,313 | 3,344,212 | |||||
| Noncontrolling interests in the Operating Partnership | 51,193 | 60,276 | |||||
| Commitments and contingencies | |||||||
| Equity | |||||||
| Common shares $.01 par value, 400,000,000 shares authorized, 227,764,975 and 224,921,053 shares issued and outstanding at December 31, 2024 and 2023, respectively | 2,278 | 2,249 | |||||
| Additional paid-in capital | 4,285,570 | 4,142,229 | |||||
| Accumulated other comprehensive loss | (330 | ) | (411 | ) | |||
| Accumulated deficit | (1,415,662 | ) | (1,345,239 | ) | |||
| Total CubeSmart shareholders’ equity | 2,871,856 | 2,798,828 | |||||
| Noncontrolling interests in subsidiaries | 30,819 | 21,704 | |||||
| Total equity | 2,902,675 | 2,820,532 | |||||
| Total liabilities and equity | $ | 6,394,181 | $ | 6,225,020 | |||
| CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | |||||||||||
| For the year ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| REVENUES | |||||||||||
| Rental income | $ | 911,161 | $ | 911,999 | $ | 879,289 | |||||
| Other property related income | 113,646 | 101,793 | 96,166 | ||||||||
| Property management fee income | 41,424 | 36,542 | 34,169 | ||||||||
| Total revenues | 1,066,231 | 1,050,334 | 1,009,624 | ||||||||
| OPERATING EXPENSES | |||||||||||
| Property operating expenses | 317,750 | 294,780 | 293,260 | ||||||||
| Depreciation and amortization | 205,703 | 201,238 | 310,610 | ||||||||
| General and administrative | 59,663 | 57,041 | 54,623 | ||||||||
| Total operating expenses | 583,116 | 553,059 | 658,493 | ||||||||
| OTHER (EXPENSE) INCOME | |||||||||||
| Interest: | |||||||||||
| Interest expense on loans | (90,820 | ) | (93,065 | ) | (93,284 | ) | |||||
| Loan procurement amortization expense | (4,067 | ) | (4,141 | ) | (3,897 | ) | |||||
| Equity in earnings of real estate ventures | 2,499 | 6,085 | 48,877 | ||||||||
| Other | 1,158 | 6,281 | (10,355 | ) | |||||||
| Total other expense | (91,230 | ) | (84,840 | ) | (58,659 | ) | |||||
| NET INCOME | 391,885 | 412,435 | 292,472 | ||||||||
| Net income attributable to noncontrolling interests in the Operating Partnership | (2,159 | ) | (2,535 | ) | (1,931 | ) | |||||
| Net loss attributable to noncontrolling interests in subsidiaries | 1,454 | 857 | 722 | ||||||||
| NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 391,180 | $ | 410,757 | $ | 291,263 | |||||
| Basic earnings per share attributable to common shareholders | $ | 1.73 | $ | 1.82 | $ | 1.29 | |||||
| Diluted earnings per share attributable to common shareholders | $ | 1.72 | $ | 1.82 | $ | 1.29 | |||||
| Weighted average basic shares outstanding | 226,353 | 225,424 | 224,928 | ||||||||
| Weighted average diluted shares outstanding | 227,150 | 226,241 | 225,881 | ||||||||
| Same-Store Results (598 stores) (in thousands, except percentages and per square foot data) (unaudited) | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | Percent | December 31, | Percent | ||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Rental income | $ | 220,721 | $ | 225,669 | (2.2 | )% | $ | 886,464 | $ | 894,926 | (0.9 | )% | |||||||||||
| Other property related income | 10,687 | 9,491 | 12.6 | % | 42,614 | 38,988 | 9.3 | % | |||||||||||||||
| Total revenues | 231,408 | 235,160 | (1.6 | )% | 929,078 | 933,914 | (0.5 | )% | |||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Property taxes (1) | 24,459 | 20,822 | 17.5 | % | 101,330 | 95,894 | 5.7 | % | |||||||||||||||
| Personnel expense | 13,238 | 13,390 | (1.1 | )% | 54,804 | 53,534 | 2.4 | % | |||||||||||||||
| Advertising | 3,666 | 4,405 | (16.8 | )% | 21,403 | 20,508 | 4.4 | % | |||||||||||||||
| Repair and maintenance | 2,837 | 2,899 | (2.1 | )% | 11,242 | 10,642 | 5.6 | % | |||||||||||||||
| Utilities | 5,276 | 5,275 | 0.0 | % | 22,889 | 22,711 | 0.8 | % | |||||||||||||||
| Property insurance | 3,278 | 3,124 | 4.9 | % | 12,968 | 11,051 | 17.3 | % | |||||||||||||||
| Other expenses | 9,060 | 9,103 | (0.5 | )% | 37,446 | 35,690 | 4.9 | % | |||||||||||||||
| Total operating expenses | 61,814 | 59,018 | 4.7 | % | 262,082 | 250,030 | 4.8 | % | |||||||||||||||
| Net operating income (2) | $ | 169,594 | $ | 176,142 | (3.7 | )% | $ | 666,996 | $ | 683,884 | (2.5 | )% | |||||||||||
| Gross margin | 73.3 | % | 74.9 | % | 71.8 | % | 73.2 | % | |||||||||||||||
| Period end occupancy | 89.3 | % | 90.3 | % | 89.3 | % | 90.3 | % | |||||||||||||||
| Period average occupancy | 89.6 | % | 90.8 | % | 90.6 | % | 91.7 | % | |||||||||||||||
| Total rentable square feet | 43,029 | 43,029 | |||||||||||||||||||||
| Realized annual rent per occupied square foot (3) | $ | 22.89 | $ | 23.14 | (1.1 | )% | $ | 22.75 | $ | 22.69 | 0.3 | % | |||||||||||
| Reconciliation of Same-Store Net Operating Income to Net Income | |||||||||||||||||||||||
| Same-store net operating income (2) | $ | 169,594 | $ | 176,142 | $ | 666,996 | $ | 683,884 | |||||||||||||||
| Non same-store net operating income (2) | 5,399 | 3,428 | 17,265 | 11,549 | |||||||||||||||||||
| Indirect property overhead (4) | 16,985 | 14,269 | 64,220 | 60,121 | |||||||||||||||||||
| Depreciation and amortization | (52,741 | ) | (50,566 | ) | (205,703 | ) | (201,238 | ) | |||||||||||||||
| General and administrative expense | (15,151 | ) | (13,982 | ) | (59,663 | ) | (57,041 | ) | |||||||||||||||
| Interest expense on loans | (22,384 | ) | (22,626 | ) | (90,820 | ) | (93,065 | ) | |||||||||||||||
| Loan procurement amortization expense | (1,036 | ) | (1,030 | ) | (4,067 | ) | (4,141 | ) | |||||||||||||||
| Equity in earnings of real estate ventures | 811 | 1,603 | 2,499 | 6,085 | |||||||||||||||||||
| Other | 414 | 5,899 | 1,158 | 6,281 | |||||||||||||||||||
| Net income | $ | 101,891 | $ | 113,137 | $ | 391,885 | $ | 412,435 | |||||||||||||||
| (1) | For comparability purposes, certain amounts related to the expiration of certain real estate tax abatements have been excluded from the same-store portfolio results ( |
| (2) | Net operating income (“NOI”) is a non-GAAP (“generally accepted accounting principles”) financial measure. The above table reconciles same-store NOI to GAAP Net income. |
| (3) | Realized annual rent per occupied square foot is calculated by dividing annualized rental income by the weighted average occupied square feet for the period. |
| (4) | Includes property management fee income earned in conjunction with managed properties. |
| Non-GAAP Measure – Computation of Funds From Operations (in thousands, except percentages and per share and unit data) (unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income attributable to the Company's common shareholders | $ | 101,892 | $ | 112,667 | $ | 391,180 | $ | 410,757 | |||||||
| Add (deduct): | |||||||||||||||
| Real estate depreciation and amortization: | |||||||||||||||
| Real property | 50,926 | 48,627 | 199,250 | 194,845 | |||||||||||
| Company's share of unconsolidated real estate ventures | 2,007 | 2,093 | 8,170 | 8,446 | |||||||||||
| Gains from sales of real estate, net (1) | — | — | — | (1,477 | ) | ||||||||||
| Net income attributable to noncontrolling interests in the Operating Partnership | 543 | 665 | 2,159 | 2,535 | |||||||||||
| FFO attributable to the Company's common shareholders and third-party OP unitholders | $ | 155,368 | $ | 164,052 | $ | 600,759 | $ | 615,106 | |||||||
| Deduct: | |||||||||||||||
| Gain on involuntary conversion (2) | - | (4,827 | ) | - | (4,827 | ) | |||||||||
| Property damage related to hurricane, net of expected insurance proceeds | - | (844 | ) | - | (844 | ) | |||||||||
| FFO, as adjusted, attributable to the Company's common shareholders and third-party OP unitholders | $ | 155,368 | $ | 158,381 | $ | 600,759 | $ | 609,435 | |||||||
| Earnings per share attributable to common shareholders - basic | $ | 0.45 | $ | 0.50 | $ | 1.73 | $ | 1.82 | |||||||
| Earnings per share attributable to common shareholders - diluted | $ | 0.45 | $ | 0.50 | $ | 1.72 | $ | 1.82 | |||||||
| FFO per diluted share and unit | $ | 0.68 | $ | 0.72 | $ | 2.63 | $ | 2.70 | |||||||
| FFO, as adjusted per diluted share and unit | $ | 0.68 | $ | 0.70 | $ | 2.63 | $ | 2.68 | |||||||
| Weighted average basic shares outstanding | 227,581 | 225,546 | 226,353 | 225,424 | |||||||||||
| Weighted average diluted shares outstanding | 228,440 | 226,242 | 227,150 | 226,241 | |||||||||||
| Weighted average diluted shares and units outstanding | 229,656 | 227,571 | 228,400 | 227,634 | |||||||||||
| Dividend per common share and unit | $ | 0.52 | $ | 0.51 | $ | 2.05 | $ | 1.98 | |||||||
| Payout ratio of FFO, as adjusted | 76.5 | % | 72.9 | % | 77.9 | % | 73.9 | % | |||||||
| (1) | For the year ended December 31, 2023, |
| (2) | Relates to a store that was subject to an involuntary conversion by the Department of Transportation of the State of Illinois on December 19, 2023. This amount is included in the component of other (expense) income designated as Other within our consolidated statements of operations. |
FAQ
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