CubeSmart (CUBE) Q3 2025 earnings summary

Executive summary

• Delivered a solid third quarter with strong performance in coastal, urban, Mid-Atlantic, and Northeast markets, while Sun Belt markets continued to stabilize and rate-occupancy tradeoffs persisted.

• Owned or managed 1,523 self-storage properties as of September 30, 2025, with 660 owned or consolidated properties totaling 48.2 million rentable square feet.

• Revenue primarily derived from leasing self-storage space and management fees, with a business model focused on internal growth and targeted acquisitions.

• Move-in rates in the same-store portfolio turned positive year-over-year for the first time since Q1 2022, indicating gradual improvement.

• Seasonal occupancy fluctuations observed, with higher occupancy in summer months due to increased moving activity.

Financial highlights

• Q3 2025 total revenues were $285.1 million, up 5.2% year-over-year, but net income fell 17.7% to $82.9 million due to higher interest and operating expenses.

• FFO per share as adjusted was $0.65 for the quarter, with FFO at $149.0 million, down from $153.0 million in Q3 2024.

• Same-store revenues declined 1% year-over-year; average same-store occupancy fell to 89.9%.

• Same-store operating expenses grew 0.3% year-over-year, resulting in negative 1.5% same-store NOI growth.

• Rent per occupied square foot was $22.99 for Q3 2025, essentially flat year-over-year.

Outlook and guidance

• Full-year 2025 diluted EPS guidance is $1.46 to $1.50; FFO per share, as adjusted, is $2.56 to $2.60.

• Same-store revenue growth guidance: (1.00%) to (0.25%); same-store NOI growth: (1.75%) to (0.75%).

• Recurring capital expenditures for the remainder of 2025 expected to be $2.0–$7.0 million; planned improvements and upgrades $2.5–$7.5 million.

• Management believes current liquidity, including $108.4 million in cash and $849.3 million available under the revolver, is sufficient to meet business needs and covenants.

• Trends expected to stabilize through year-end, with better footing anticipated for 2026.