CubeSmart misses Q4 estimates, shares fall on weak guidance

Published 27/02/2025, 23:00
CubeSmart misses Q4 estimates, shares fall on weak guidance

MALVERN, Pa. - CubeSmart (NYSE:CUBE) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down 4.3% in after-hours trading as the self-storage operator also provided weaker-than-expected guidance for 2025.

The company posted adjusted earnings per share of $0.45, missing the consensus estimate of $0.46. Revenue came in at $231.41 million, well below analyst projections of $265.29 million. Same-store net operating income decreased 3.7% YoY, driven by a 1.6% decline in revenues and a 4.7% increase in operating expenses.

For 2025, CubeSmart expects full-year adjusted funds from operations (FFO) per share between $2.50 and $2.59, below the current analyst consensus of $2.63. The company projects same-store revenue growth between -2% to 0% and same-store net operating income to decline between -4.25% to -1.75%.

"Operating trends in the quarter were in line with our expectations given the volatile self-storage environment," said President and CEO Christopher P. Marr. "Looking forward to 2025, we are optimistic that we have reached an inflection point in the trend of decelerating growth rates, although we remain cautious given the macro uncertainty."

CubeSmart’s same-store occupancy averaged 89.6% during Q4, ending the period at 89.3%, down from 90.3% a year earlier. The company added 29 stores to its third-party management platform in the quarter, bringing the total to 902 managed properties.

Despite the challenging near-term outlook, Marr emphasized that "self-storage remains a great business long-term, and we are well-positioned to create value through the continued evolution of our operating platform, our creative avenues for external growth, and our strong liquidity position."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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