CubeSmart (CUBE) investor relations material

Executive summary

• First quarter 2026 results met expectations, with stable operating trends and a return to positive same-store revenue growth, driven by steady demand, focused execution, and reduced new supply headwinds.

• Net income attributable to shareholders was $82.9 million, down from $89.2 million year-over-year, with diluted EPS at $0.36 compared to $0.39 in Q1 2025.

• Net rentals surged 240% year-over-year, narrowing the occupancy gap to 20 basis points by end of April, positioning well for the busy season.

• Urban markets in the Northeast and Midwest outperformed, while Sun Belt and West Coast markets showed early signs of recovery.

• Owns and manages 662 self-storage properties across 26 states and DC, with 48.5 million rentable square feet as of March 31, 2026; manages 854 additional third-party stores, totaling 1,516 stores under management.

Financial highlights

• Total revenues for Q1 2026 were $281.9 million, up 3.3% from $273.0 million in Q1 2025.

• Same-store revenue grew 0.6% year-over-year; move-in rates and occupancy improved sequentially.

• Same-store operating expenses increased 5.8% year-over-year, mainly due to higher snow removal and marketing costs.

• Same-store NOI declined -1.5% for the quarter; FFO, as adjusted, was $144.2 million ($0.63 per share), down from $148.1 million ($0.64 per share) in Q1 2025.

• Quarterly dividend of $0.53 per share was declared and paid in April 2026.

Outlook and guidance

• Full-year 2026 diluted EPS guidance is $1.55–$1.63; FFO, as adjusted, per share guidance is $2.52–$2.60.

• 2026 earnings guidance and assumptions remain unchanged, except for a slightly lower share count due to repurchases.

• Same-store revenue and expense growth expected between -0.25% and 1.25%; NOI growth projected between -1.75% and 0.25%.

• Recurring capital expenditures for the remainder of 2026 expected to be $20–25 million; planned capital improvements and upgrades $14.5–19.5 million; new store development $3.5–8.5 million.

• Management believes current liquidity, including cash, equity financing, and available credit, is sufficient to execute the business plan and remain in compliance with covenants.