CubeSmart (CUBE) Q1 2025 earnings summary

Executive summary

• First quarter performance exceeded expectations, with key metrics trending toward the higher end of guidance and strong top-of-funnel demand observed.

• Owned or managed 1,528 self-storage properties as of March 31, 2025, with 659 owned and 869 managed for third parties across 39 states and D.C.

• Acquired the remaining 80% interest in HVP IV (28 stores) for $452.8 million in Q1 2025, consolidating these assets and expanding presence in key markets.

• Net income attributable to common shareholders was $89.2 million, down from $94.5 million in Q1 2024.

• FFO per share as adjusted was $0.64, a penny above guidance and flat year-over-year.

Financial highlights

• Total revenues for Q1 2025 were $273.0 million, up 4.4% from $261.4 million in Q1 2024.

• Same-store revenue declined 0.4% year-over-year, improving from a 1.6% decline in the previous quarter.

• Same-store NOI decreased 0.8% for the quarter due to a 0.4% revenue decline and 0.6% expense increase.

• Net income attributable to common shareholders was $89.2 million, down 5.6% year-over-year.

• Quarterly dividend of $0.52 per share was declared and paid in April 2025.

Outlook and guidance

• 2025 full-year diluted EPS guidance: $1.41–$1.49; FFO, as adjusted, per share: $2.51–$2.59.

• Guidance for top-line growth remains unchanged due to economic uncertainty, but expense performance allowed a modest improvement to the midpoint of FFO per share guidance.

• Same-store revenue and expense growth expected between -2.0% and 0.0%; same-store NOI growth projected at 3.25%–4.50% for the year.

• Second quarter FFO guidance assumes flat results at the midpoint, with expense timing and other income line items impacting sequential trends.

• Management believes current liquidity and access to capital are sufficient to execute the business plan and remain in covenant compliance.