CubeSmart Reports Second Quarter 2024 Results
CubeSmart (NYSE: CUBE) reported its Q2 2024 results, with diluted EPS of $0.41 and FFO per share of $0.64. The company experienced a 0.3% growth in same-store revenue but a 1.2% decrease in same-store NOI due to a 4.2% increase in operating expenses. CubeSmart opened two development projects for $61.8 million and added 39 stores to its third-party management platform. The company maintained its 2024 guidance, projecting FFO per share between $2.61 and $2.67. Despite economic uncertainties, CubeSmart reported resilient customer demand and a stronger seasonal uplift in Q2.
CubeSmart (NYSE: CUBE) ha riportato i risultati per il secondo trimestre del 2024, con un utili per azione diluiti di $0.41 e un FFO per azione di $0.64. L’azienda ha registrato una crescita dello 0.3% nei ricavi delle stesse strutture, ma una riduzione dell'1.2% nel NOI delle stesse strutture a causa di un aumento delle spese operative del 4.2%. CubeSmart ha aperto due progetti di sviluppo per un valore di $61.8 milioni e ha aggiunto 39 negozi alla sua piattaforma di gestione terzi. L'azienda ha mantenuto le previsioni per il 2024, prevedendo un FFO per azione tra $2.61 e $2.67. Nonostante le incertezze economiche, CubeSmart ha riportato una domanda dei clienti resiliente e un significativo aumento stagionale nel secondo trimestre.
CubeSmart (NYSE: CUBE) reportó sus resultados del segundo trimestre de 2024, con un EPS diluido de $0.41 y un FFO por acción de $0.64. La empresa experimentó un crecimiento del 0.3% en ingresos de mismas propiedades pero una disminución del 1.2% en NOI de mismas propiedades debido a un aumento del 4.2% en los gastos operativos. CubeSmart abrió dos proyectos de desarrollo por un total de $61.8 millones y añadió 39 tiendas a su plataforma de gestión de terceros. La empresa mantuvo su guía para 2024, proyectando un FFO por acción entre $2.61 y $2.67. A pesar de las incertidumbres económicas, CubeSmart reportó una demanda de clientes resiliente y un aumento estacional más fuerte en el segundo trimestre.
CubeSmart (NYSE: CUBE)는 2024년 2분기 결과를 발표했으며, 희석 주당순이익(EPS) $0.41와 주당 자산운영수익(FFO) $0.64을 기록했습니다. 회사는 동일 점포 수익이 0.3% 증가했으나, 운영비용의 4.2% 증가로 인해 동일 점포 NOI가 1.2% 감소했습니다. CubeSmart는 6180만 달러 규모의 개발 프로젝트 두 건을 열었고, 제3자 관리 플랫폼에 39개 매장을 추가했습니다. 회사는 2024년 전망을 유지하며, 주당 FFO가 $2.61에서 $2.67 사이일 것으로 예상하고 있습니다. 경제적 불확실성에도 불구하고, CubeSmart는 고객 수요가 탄탄하고 2분기에 더 강한 시즌 성장을 경험했다고 보고했습니다.
CubeSmart (NYSE: CUBE) a annoncé ses résultats pour le deuxième trimestre 2024, avec un BPA dilué de $0.41 et un FFO par action de $0.64. L'entreprise a connu une croissance de 0.3% des revenus des magasins comparables, mais une diminution de 1.2% du NOI des magasins comparables en raison d'une augmentation de 4.2% des dépenses d'exploitation. CubeSmart a ouvert deux projets de développement d'une valeur de 61,8 millions de dollars et a ajouté 39 magasins à sa plateforme de gestion tierce. L'entreprise a maintenu ses prévisions pour 2024, s'attendant à un FFO par action compris entre $2.61 et $2.67. Malgré les incertitudes économiques, CubeSmart a signalé une demande client résiliente et une meilleure hausse saisonnière au deuxième trimestre.
CubeSmart (NYSE: CUBE) berichtet über die Ergebnisse für das zweite Quartal 2024, mit einem verwässerten EPS von $0.41 und einem FFO pro Aktie von $0.64. Das Unternehmen verzeichnete ein Wachstum von 0.3% im Umsatz der gleichen Läden, aber einen Rückgang von 1.2% im NOI der gleichen Läden aufgrund eines Anstiegs der Betriebskosten um 4.2%. CubeSmart eröffnete zwei Entwicklungsprojekte im Wert von 61,8 Millionen Dollar und fügte 39 Geschäfte zu seiner Drittanbieter-Management-Plattform hinzu. Das Unternehmen hielt an seiner Prognose für 2024 fest und rechnet mit einem FFO pro Aktie zwischen $2.61 und $2.67. Trotz wirtschaftlicher Unsicherheiten berichtete CubeSmart von einer stabilen Kundennachfrage und einem stärkeren saisonalen Anstieg im zweiten Quartal.
- Opened two development projects for $61.8 million
- Added 39 stores to third-party management platform, totaling 879 stores
- Maintained 2024 FFO guidance range of $2.61 to $2.67 per share
- 0.3% growth in same-store revenue
- Decreased interest expense by $0.7 million year-over-year
- 1.2% decrease in same-store NOI
- 4.2% increase in same-store operating expenses
- Diluted EPS decreased from $0.43 in Q2 2023 to $0.41 in Q2 2024
- FFO per share decreased 3.0% year-over-year to $0.64
- Same-store physical occupancy decreased from 92.6% to 91.9% year-over-year
Insights
CubeSmart's Q2 2024 results reveal a mixed performance in a challenging economic environment. The company reported diluted EPS of
The same-store portfolio, comprising 598 stores, saw a
On a positive note, CubeSmart's third-party management platform expanded significantly, adding 39 stores in Q2 and bringing the total to 879. This growth in managed properties could provide a stable revenue stream and economies of scale in the future.
The company's development activities, including the opening of two properties for
Looking ahead, CubeSmart maintained its 2024 guidance midpoint, projecting FFO per share between
CubeSmart's Q2 2024 results offer valuable insights into the self-storage market dynamics. The same-store occupancy rate of
The company's ability to achieve
CubeSmart's strategic focus on high-barrier-to-entry locations for new developments is noteworthy. The opening of two properties in New Jersey and New York, totaling
The expansion of the third-party management platform is a significant trend. Adding 107 stores in the first half of 2024 demonstrates CubeSmart's strong brand and operational expertise. This asset-light growth strategy can enhance returns on capital and provide valuable market insights across a broader portfolio.
The guidance for 2024, projecting same-store revenue growth between
MALVERN, Pa., Aug. 01, 2024 (GLOBE NEWSWIRE) -- CubeSmart (NYSE: CUBE) today announced its operating results for the three and six months ended June 30, 2024.
“As expected, we experienced a marginally stronger seasonal uplift in demand during the second quarter and a customer base who continues to be resilient in an uncertain economy,” commented President and Chief Executive Officer Christopher P. Marr. “Our data-driven approach to operations continues to allow us to optimize our performance in the face of changing macro conditions.”
Key Highlights for the Second Quarter
- Reported diluted earnings per share (“EPS”) attributable to the Company’s common shareholders of
$0.41 . - Reported funds from operations (“FFO”), as adjusted, per diluted share of
$0.64 . - Same-store (598 stores) net operating income (“NOI”) decreased
1.2% year over year, resulting from0.3% revenue growth and a4.2% increase in operating expenses. - Same-store occupancy averaged
91.5% during the quarter, ending at91.9% . - Opened for operation two development projects for a total cost of
$61.8 million . - Added 39 stores to our third-party management platform, bringing our total third-party managed store count to 879.
Financial Results
Net income attributable to the Company’s common shareholders was
FFO, as adjusted, was
Investment Activity
Development Activity
The Company has agreements with developers for the construction of self-storage properties in high-barrier-to-entry locations. During the three months ended June 30, 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 June 30, 2024, the Company had two joint venture development properties under construction. The Company anticipates investing a total of
Third-Party Management
As of June 30, 2024, the Company’s third-party management platform included 879 stores totaling 57.4 million rentable square feet. During the three and six months ended June 30, 2024, the Company added 39 stores and 107 stores, respectively, to its third-party management platform.
Same-Store Results
The Company’s same-store portfolio as of June 30, 2024 included 598 stores containing 43.0 million rentable square feet, or approximately
Same-store physical occupancy as of June 30, 2024 and 2023 was
Operating Results
As of June 30, 2024, the Company’s total consolidated portfolio included 615 stores containing 44.4 million rentable square feet and had physical occupancy of
Revenues increased
Interest expense decreased from
Financing Activity
During the three months ended June 30, 2024, the Company did not sell any common shares of beneficial interest through its at-the-market ("ATM") equity program. As of June 30, 2024, the Company had 5.8 million shares available for issuance under the existing equity distribution agreements.
Quarterly Dividend
On May 21, 2024, the Company declared a quarterly dividend of
2024 Financial Outlook
“This quarter, we opened two Class-A development projects in the New York MSA, continuing to create value through our joint venture development program,” commented Chief Financial Officer Tim Martin. “As we’ve moved through the summer rental season, overall performance led us to maintain the midpoint of our guidance ranges for both same-store NOI and FFO per share.”
The Company estimates that its fully diluted earnings per share for 2024 will be between
| 2024 Full Year Guidance Range Summary | Current Ranges for Annual Assumptions | Prior Guidance (1) | |||||||||||||||||
| Same-store revenue growth | (0.75 | %) | to | 0.25 | % | (1.25 | %) | to | 1.25 | % | |||||||||
| Same-store expense growth | 4.50 | % | to | 6.00 | % | 5.50 | % | to | 7.00 | % | |||||||||
| Same-store NOI growth | (3.00 | %) | to | (1.00 | %) | (4.00 | %) | to | 0.00 | % | |||||||||
| Acquisition of consolidated operating properties | $ | 100.0M | to | $ | 200.0M | $ | 100.0M | to | $ | 200.0M | |||||||||
| Dilution from properties in lease-up | $ | (0.02 | ) | to | $ | (0.03 | ) | $ | (0.02 | ) | to | $ | (0.03 | ) | |||||
| Property management fee income | $ | 40.5M | to | $ | 42.5M | $ | 40.5M | to | $ | 42.5M | |||||||||
| General and administrative expenses | $ | 59.5M | to | $ | 61.5M | $ | 59.5M | to | $ | 61.5M | |||||||||
| Interest and loan amortization expense | $ | 97.0M | to | $ | 99.0M | $ | 97.0M | to | $ | 99.0M | |||||||||
| Full year weighted average shares and units | 227.7M | 227.7M | 227.7M | 227.7M | |||||||||||||||
| Diluted earnings per share attributable to common | |||||||||||||||||||
| shareholders | $ | 1.71 | to | $ | 1.77 | $ | 1.69 | to | $ | 1.79 | |||||||||
| Plus: real estate depreciation and amortization | 0.90 | 0.90 | 0.90 | 0.90 | |||||||||||||||
| FFO, as adjusted, per diluted share | $ | 2.61 | to | $ | 2.67 | $ | 2.59 | to | $ | 2.69 | |||||||||
| (1) Prior guidance as included in our first quarter earnings release dated April 25, 2024. | |||||||||||||||||||
| 3rd Quarter 2024 Guidance | Range | ||||||||||||||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.44 | to | $ | 0.46 | ||||||||||||||
| Plus: real estate depreciation and amortization | 0.22 | 0.22 | |||||||||||||||||
| FFO, as adjusted, per diluted share | $ | 0.66 | to | $ | 0.68 | ||||||||||||||
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, August 2, 2024 to discuss financial results for the three months ended June 30, 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 August 16, 2024 by dialing 1 (800) 770-2030 using conference ID number 4783436.
Supplemental operating and financial data as of June 30, 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 impacts from pandemics, quarantines and stay at home orders, including the impact on our ability to operate our self-storage properties, the demand for self-storage, rental rates and fees and rent collection levels;
- reduced availability and increased costs of external sources of capital;
- increases in interest rates and operating costs;
- financing risks, including 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;
- 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;
- changes in real estate, zoning, use and occupancy laws or regulations;
- risks related to or consequences of earthquakes, hurricanes, windstorms, floods, 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;
- our ability to attract and retain talent in the current labor market;
- 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) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Storage properties | $ | 7,415,426 | $ | 7,367,613 | ||||
| Less: Accumulated depreciation | (1,503,487 | ) | (1,416,377 | ) | ||||
| Storage properties, net (includes VIE amounts of | 5,911,939 | 5,951,236 | ||||||
| Cash and cash equivalents (includes VIE amounts of | 5,656 | 6,526 | ||||||
| Restricted cash | 1,614 | 1,691 | ||||||
| Loan procurement costs, net of amortization | 3,364 | 3,995 | ||||||
| Investment in real estate ventures, at equity | 94,053 | 98,288 | ||||||
| Other assets, net | 167,830 | 163,284 | ||||||
| Total assets | $ | 6,184,456 | $ | 6,225,020 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Unsecured senior notes, net | $ | 2,778,560 | $ | 2,776,490 | ||||
| Revolving credit facility | 10,600 | 18,100 | ||||||
| Mortgage loans and notes payable, net | 95,388 | 128,186 | ||||||
| Lease liabilities - finance leases | 65,685 | 65,714 | ||||||
| Accounts payable, accrued expenses and other liabilities | 230,287 | 201,419 | ||||||
| Distributions payable | 116,014 | 115,820 | ||||||
| Deferred revenue | 40,576 | 38,483 | ||||||
| Total liabilities | 3,337,110 | 3,344,212 | ||||||
| Noncontrolling interests in the Operating Partnership | 55,930 | 60,276 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Common shares $.01 par value, 400,000,000 shares authorized, 225,196,862 and 224,921,053 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,252 | 2,249 | ||||||
| Additional paid-in capital | 4,154,269 | 4,142,229 | ||||||
| Accumulated other comprehensive loss | (371 | ) | (411 | ) | ||||
| Accumulated deficit | (1,386,056 | ) | (1,345,239 | ) | ||||
| Total CubeSmart shareholders’ equity | 2,770,094 | 2,798,828 | ||||||
| Noncontrolling interests in subsidiaries | 21,322 | 21,704 | ||||||
| Total equity | 2,791,416 | 2,820,532 | ||||||
| Total liabilities and equity | $ | 6,184,456 | $ | 6,225,020 | ||||
| CUBESMART AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| REVENUES | ||||||||||||||||
| Rental income | $ | 226,791 | $ | 225,910 | $ | 451,981 | $ | 449,494 | ||||||||
| Other property related income | 28,958 | 25,760 | 55,274 | 50,144 | ||||||||||||
| Property management fee income | 10,460 | 9,135 | 20,360 | 17,695 | ||||||||||||
| Total revenues | 266,209 | 260,805 | 527,615 | 517,333 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Property operating expenses | 83,097 | 74,821 | 160,134 | 145,948 | ||||||||||||
| Depreciation and amortization | 51,035 | 50,358 | 101,752 | 100,687 | ||||||||||||
| General and administrative | 14,622 | 14,325 | 30,247 | 28,999 | ||||||||||||
| Total operating expenses | 148,754 | 139,504 | 292,133 | 275,634 | ||||||||||||
| OTHER (EXPENSE) INCOME | ||||||||||||||||
| Interest: | ||||||||||||||||
| Interest expense on loans | (22,767 | ) | (23,544 | ) | (45,686 | ) | (47,235 | ) | ||||||||
| Loan procurement amortization expense | (1,015 | ) | (1,041 | ) | (2,045 | ) | (2,081 | ) | ||||||||
| Equity in earnings of real estate ventures | 425 | 790 | 1,270 | 3,341 | ||||||||||||
| Other | 88 | 777 | 23 | 501 | ||||||||||||
| Total other expense | (23,269 | ) | (23,018 | ) | (46,438 | ) | (45,474 | ) | ||||||||
| NET INCOME | 94,186 | 98,283 | 189,044 | 196,225 | ||||||||||||
| Net income attributable to noncontrolling interests in the Operating Partnership | (524 | ) | (616 | ) | (1,065 | ) | (1,230 | ) | ||||||||
| Net loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 93,964 | $ | 97,879 | $ | 188,491 | $ | 195,445 | ||||||||
| Basic earnings per share attributable to common shareholders | $ | 0.42 | $ | 0.43 | $ | 0.83 | $ | 0.87 | ||||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.41 | $ | 0.43 | $ | 0.83 | $ | 0.86 | ||||||||
| Weighted average basic shares outstanding | 225,886 | 225,388 | 225,827 | 225,342 | ||||||||||||
| Weighted average diluted shares outstanding | 226,618 | 226,275 | 226,593 | 226,238 | ||||||||||||
| Same-Store Results (598 stores) | ||||||||||||||||||||||
| (in thousands, except percentages and per square foot data) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | Percent | June 30, | Percent | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
| REVENUES | ||||||||||||||||||||||
| Rental income | $ | 221,025 | $ | 221,623 | (0.3 | )% | $ | 440,785 | $ | 441,331 | (0.1 | )% | ||||||||||
| Other property related income | 11,475 | 10,098 | 13.6 | % | 20,860 | 19,570 | 6.6 | % | ||||||||||||||
| Total revenues | 232,500 | 231,721 | 0.3 | % | 461,645 | 460,901 | 0.2 | % | ||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||
| Property taxes (1) | 25,513 | 24,942 | 2.3 | % | 51,703 | 50,213 | 3.0 | % | ||||||||||||||
| Personnel expense | 13,894 | 13,430 | 3.5 | % | 27,676 | 26,701 | 3.7 | % | ||||||||||||||
| Advertising | 6,762 | 6,663 | 1.5 | % | 9,642 | 10,067 | (4.2 | )% | ||||||||||||||
| Repair and maintenance | 3,151 | 2,583 | 22.0 | % | 5,650 | 4,973 | 13.6 | % | ||||||||||||||
| Utilities | 5,178 | 5,198 | (0.4 | )% | 11,132 | 11,054 | 0.7 | % | ||||||||||||||
| Property insurance | 3,229 | 2,646 | 22.0 | % | 6,356 | 4,810 | 32.1 | % | ||||||||||||||
| Other expenses | 9,329 | 8,879 | 5.1 | % | 19,089 | 17,638 | 8.2 | % | ||||||||||||||
| Total operating expenses | 67,056 | 64,341 | 4.2 | % | 131,248 | 125,456 | 4.6 | % | ||||||||||||||
| Net operating income (2) | $ | 165,444 | $ | 167,380 | (1.2 | )% | $ | 330,397 | $ | 335,445 | (1.5 | )% | ||||||||||
| Gross margin | 71.2 | % | 72.2 | % | 71.6 | % | 72.8 | % | ||||||||||||||
| Period end occupancy | 91.9 | % | 92.6 | % | 91.9 | % | 92.6 | % | ||||||||||||||
| Period average occupancy | 91.5 | % | 92.6 | % | 90.9 | % | 91.9 | % | ||||||||||||||
| Total rentable square feet | 42,984 | 42,984 | ||||||||||||||||||||
| Realized annual rent per occupied square foot (3) | $ | 22.47 | $ | 22.28 | 0.9 | % | $ | 22.57 | $ | 22.33 | 1.1 | % | ||||||||||
| Reconciliation of Same-Store Net Operating Income to Operating Income | ||||||||||||||||||||||
| Same-store net operating income (2) | $ | 165,444 | $ | 167,380 | $ | 330,397 | $ | 335,445 | ||||||||||||||
| Non same-store net operating income (2) | 3,693 | 2,811 | 7,598 | 5,220 | ||||||||||||||||||
| Indirect property overhead (4) | 13,975 | 15,793 | 29,486 | 30,720 | ||||||||||||||||||
| Depreciation and amortization | (51,035 | ) | (50,358 | ) | (101,752 | ) | (100,687 | ) | ||||||||||||||
| General and administrative expense | (14,622 | ) | (14,325 | ) | (30,247 | ) | (28,999 | ) | ||||||||||||||
| Interest expense on loans | (22,767 | ) | (23,544 | ) | (45,686 | ) | (47,235 | ) | ||||||||||||||
| Loan procurement amortization expense | (1,015 | ) | (1,041 | ) | (2,045 | ) | (2,081 | ) | ||||||||||||||
| Equity in earnings of real estate ventures | 425 | 790 | 1,270 | 3,341 | ||||||||||||||||||
| Other | 88 | 777 | 23 | 501 | ||||||||||||||||||
| Net income | $ | 94,186 | $ | 98,283 | $ | 189,044 | $ | 196,225 | ||||||||||||||
| (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 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 | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income attributable to the Company's common shareholders | $ | 93,964 | $ | 97,879 | $ | 188,491 | $ | 195,445 | |||||
| Add (deduct): | |||||||||||||
| Real estate depreciation and amortization: | |||||||||||||
| Real property | 49,436 | 48,898 | 98,685 | 97,814 | |||||||||
| Company's share of unconsolidated real estate ventures | 2,046 | 2,115 | 4,138 | 4,249 | |||||||||
| Gains from sales of real estate, net (1) | — | — | — | (1,713 | ) | ||||||||
| Noncontrolling interests in the Operating Partnership | 524 | 616 | 1,065 | 1,230 | |||||||||
| FFO attributable to the Company's common shareholders and third-party OP unitholders | $ | 145,970 | $ | 149,508 | $ | 292,379 | $ | 297,025 | |||||
| Basic earnings per share attributable to common shareholders | $ | 0.42 | $ | 0.43 | $ | 0.83 | $ | 0.87 | |||||
| Diluted earnings per share attributable to common shareholders | $ | 0.41 | $ | 0.43 | $ | 0.83 | $ | 0.86 | |||||
| FFO per diluted share and unit | $ | 0.64 | $ | 0.66 | $ | 1.28 | $ | 1.30 | |||||
| Weighted average basic shares outstanding | 225,886 | 225,388 | 225,827 | 225,342 | |||||||||
| Weighted average diluted shares outstanding | 226,618 | 226,275 | 226,593 | 226,238 | |||||||||
| Weighted average diluted shares and units outstanding | 227,877 | 227,694 | 227,867 | 227,659 | |||||||||
| Dividend per common share and unit | $ | 0.51 | $ | 0.49 | $ | 1.02 | $ | 0.98 | |||||
| Payout ratio of FFO | 79.7 | % | 74.2 | % | 79.7 | % | 75.4 | % | |||||
| (1) | For the six months ended June 30, 2023, represents distributions made to the Company in excess of its investment in 191 IV CUBE Southeast LLC. This amount is included in the Company’s share of equity in earnings of real estate ventures. |
FAQ
What was CubeSmart's (CUBE) diluted EPS for Q2 2024?
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How many stores did CubeSmart (CUBE) add to its third-party management platform in Q2 2024?
