MALVERN, PA — CubeSmart (NYSE: CUBE) reported steady third-quarter 2025 results that reflected both resilience and recalibration across its national self-storage portfolio. The Malvern-based real estate investment trust (REIT) posted diluted earnings per share of $0.36 and adjusted funds from operations (FFO) of $0.65 per share — down slightly from last year but within management’s expectations.
President and CEO Christopher P. Marr said the company’s performance was “in line with our expectations,” highlighting strong results in coastal and urban markets despite pressure in some Sunbelt regions. “We are encouraged as operating trends continue to stabilize and are confident that our systems position us well to maximize long-term revenue within our highest-quality portfolio,” Marr said.
Financial and Operational Performance
Net income attributable to shareholders totaled $82.9 million, down from $100.8 million in the same quarter last year, while total revenue rose 5.2% to $285.1 million. Property operating expenses climbed to $90.8 million, primarily due to new acquisitions and development activity.
Same-store net operating income decreased 1.5% year over year, driven by a 1% decline in same-store revenue and a 0.3% increase in expenses. Average same-store occupancy during the quarter was 89.9%, ending the period at 89.0%.
Interest expenses increased from $22.8 million to $29.4 million, as CubeSmart’s average outstanding debt balance rose to $3.44 billion, with a higher weighted average interest rate of 3.32%.
Investment and Expansion Activity
CubeSmart continued its disciplined approach to expansion. During the third quarter, the company opened one new development property in New York at a total cost of $18.1 million and maintained one additional joint venture project under construction, expected to open in late 2025.
Earlier in the year, CubeSmart completed the $452.8 million acquisition of the remaining 80% interest in a 28-store real estate venture, HVP IV. Looking ahead, the company plans to close on three additional properties in Arizona, Florida, and New Jersey, valued at $65.3 million.
The company’s third-party management platform continued to expand, adding 46 stores in the quarter and bringing the total to 863 managed locations encompassing 56.6 million rentable square feet.
Financial Position and Capital Management
In August, CubeSmart’s operating partnership issued $450 million of unsecured senior notes due 2035 at a 5.125% interest rate — its first bond issuance in nearly four years. Chief Financial Officer Tim Martin said the move underscored the company’s ability to “access attractively priced capital” in a challenging rate environment.
CubeSmart’s quarterly dividend remained strong at $0.52 per share, paid on October 15. The company’s payout ratio of FFO stood at 80%, in line with prior quarters.
2025 Guidance and Outlook
The REIT raised the midpoint of its full-year guidance, projecting 2025 diluted earnings per share between $1.46 and $1.50 and adjusted FFO per share between $2.56 and $2.60. Same-store net operating income is now expected to range from a decline of 1.75% to 0.75%, showing improvement from earlier estimates.
CubeSmart ended the quarter with 660 consolidated stores totaling 48.2 million rentable square feet and occupancy of 88.6%.
As the self-storage industry adapts to evolving demand and cost dynamics, CubeSmart’s combination of conservative growth, strong capital discipline, and high-quality urban portfolio continues to anchor its position among the top U.S. storage REITs.
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