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Dec 31, 2024
CubeSmart Q4 2024 Earnings Report
CubeSmart reported a decline in same-store NOI and occupancy in Q4 2024, while maintaining strong financial flexibility.
Key Takeaways
CubeSmart's Q4 2024 results reflected continued challenges in the self-storage sector, with same-store net operating income declining 3.7% year-over-year due to increased expenses and lower revenue. Total revenue increased slightly to $1.07 billion, driven by growth in property management fees. The company maintained a high occupancy rate of 89.3% and improved financial flexibility with strong cash flow and acquisitions.
Reported total revenue of $1.07 billion, up slightly year-over-year.
GAAP EPS was $0.45, while adjusted FFO per share was $0.68.
Same-store NOI declined 3.7% YoY, with occupancy ending at 89.3%.
Acquired an 85% interest in 14 stores for $157.3 million.
Forward Guidance
CubeSmart expects stable self-storage fundamentals in 2025, with moderate revenue growth and expense management challenges.
Positive Outlook
- 2025 revenue expected to be stable despite economic uncertainties.
- Expansion through acquisitions, including 28-store joint venture buyout.
- Property management fees projected to grow to $42M - $44M.
- Same-store revenue expected to stabilize within a (2.0%) to 0.0% range.
- Dividend increased to $2.08 per share annually, reflecting financial strength.
Challenges Ahead
- Same-store NOI projected to decline between (4.25%) and (1.75%).
- Occupancy may face continued pressure from elevated supply.
- Higher property taxes and insurance costs will impact expenses.
- Interest and loan amortization expenses projected between $118M and $124M.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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