CubeSmart Q1 2020 Earnings Report
Key Takeaways
CubeSmart reported a solid first quarter with increased EPS and FFO per share. The company expanded its third-party management platform and made strategic acquisitions. Same-store NOI increased by 0.8%, driven by revenue growth. In response to the COVID-19 pandemic, CubeSmart launched SmartRental and implemented safety measures, while also withdrawing its 2020 guidance due to uncertainty.
Reported EPS attributable to common shareholders was $0.20.
Reported FFO per share, as adjusted, was $0.41.
Same-store NOI increased 0.8% year over year, driven by 1.7% revenue growth.
Added 66 stores to the third-party management platform, bringing the total to 707 stores.
CubeSmart
CubeSmart
Forward Guidance
Due to the uncertainty of the COVID-19 pandemic, the company is withdrawing its previously issued 2020 guidance.
Positive Outlook
- Liquidity position remains solid.
- Strength of investment-grade balance sheet.
- Modest leverage levels.
- $680.9 million of capacity on revolving line of credit as of the end of April.
- Ability to fund remaining commitments.
Challenges Ahead
- Uncertainty surrounding the duration, scope and severity of the pandemic.
- Difficult to predict the impact on future operational and financial results.
- Company’s ability to operate its stores could be impacted.
- Customers’ ability to make rental payments could be impacted.
- Success of actions taken to contain or treat COVID-19 and reactions by consumers, companies, governmental entities and capital markets are highly uncertain and cannot be predicted.