Trump says Nvidia not allowed to sell advanced AI chips to China- 60 Minutes
Investing.com -- CubeSmart (NYSE:CUBE) shares rose 2.4% in after-hours trading Thursday after the self-storage real estate investment trust reported third-quarter revenue that exceeded analyst expectations, despite facing occupancy challenges in certain markets.
The company reported third-quarter revenue of $285.08 million, surpassing the consensus estimate of $281.89 million. However, earnings per share came in at $0.36, missing analyst expectations of $0.38. Adjusted funds from operations (FFO) per share was $0.65, down 3.0% from $0.67 in the same period last year.
Same-store net operating income (NOI) decreased 1.5% YoY, resulting from a 1.0% decrease in revenues and a 0.3% increase in operating expenses. Same-store occupancy averaged 89.9% during the quarter, ending at 89.0%, compared to 90.2% at the end of the third quarter of 2024.
"Overall, third quarter results were in line with our expectations. Our coastal and more urban markets maintained their strong performance while our sunbelt properties continued to experience tradeoffs between rate and occupancy," said Christopher P. Marr, President and Chief Executive Officer.
CubeSmart updated its full-year 2025 guidance, now expecting earnings per share between $1.46 and $1.50, below the analyst consensus of $1.51. The company raised its FFO guidance to between $2.56 and $2.60 per share, improving the midpoint from previous guidance.
Chief Financial Officer Tim Martin noted, "In August, we raised $450 million through a successful bond offering, our first in almost four years, showcasing our access to attractively-priced capital. Continued stabilizing trends through the third quarter positioned us to further increase the midpoints of our full year FFO per share and same-store guidance ranges."
During the quarter, CubeSmart added 46 stores to its third-party management platform, bringing the total to 863 managed properties. The company also opened one development property in New York for a total cost of $18.1 million.
Interest expense increased to $29.4 million from $22.8 million in the year-ago period, reflecting both higher average debt balances and increased interest rates. The weighted average effective interest rate rose to 3.32% from 2.99% a year earlier.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.