CubeSmart (CUBE) Q4 2025 earnings summary

Executive summary

• Fundamentals stabilized in 2025, positioning for growth in 2026 with improving operating and financial metrics, especially in urban Northeast and Midwest markets, while Sun Belt and West Coast markets show early signs of recovery.

• Fourth quarter 2025 saw diluted EPS of $0.34 and adjusted FFO per share of $0.64, both down year-over-year.

• Net income for Q4 2025 was $78.7M, down from $101.9M in Q4 2024; full-year net income was $333.8M, down from $391.2M in 2024.

• Move-in rates turned positive year-over-year in the second half of 2025, with Q4 2025 at +2.8% and similar trends continuing into early 2026.

• Only 19% of same-store assets face new supply impact in 2026, the lowest since 2017, with the magnitude of supply headwinds declining.

Financial highlights

• Same-store revenue growth accelerated to -0.1% in Q4 2025, nearly flat, reflecting stabilization.

• Same-store expenses grew 2.9% in Q4, driven by higher marketing, R&M, and offset by lower real estate taxes and insurance.

• Same-store NOI declined 1.1% for Q4 2025.

• FFO per share as adjusted was $0.64 for Q4 2025; full-year adjusted FFO per share was $2.58 (down 1.9% YoY).

• Quarterly dividend increased 1.9% to an annualized $2.12 per share, representing a 5.3% yield at quarter-end.

Outlook and guidance

• 2026 FFO per share guidance is $2.52–$2.60; diluted EPS guidance is $1.55–$1.63.

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

• Same-store revenue guidance assumes a stable macro environment, less new supply impact, improving pricing, and narrowing occupancy gap.

• Expense growth in 2026 expected to be higher due to tough comps, real estate taxes, personnel costs, and significant winter-related costs.

• Only 19% of same-store portfolio expected to face new supply in 2026, down from 24% in 2025 and 50% at the 2019 peak.