MALVERN, PA — CubeSmart (NYSE: CUBE) recently reported first-quarter earnings that declined from a year earlier as higher expenses and interest costs offset modest revenue growth, the company said.
Net income attributable to common shareholders fell to $82.9 million, or $0.36 per diluted share, for the three months ended March 31, 2026, from $89.2 million, or $0.39 per share, a year earlier. Adjusted funds from operations (FFO) totaled $144.2 million, or $0.63 per share, down from $148.1 million, or $0.64 per share.
Same-store net operating income declined 1.5% year over year, reflecting a 0.6% increase in revenue and a 5.8% rise in operating expenses. Average same-store occupancy was 89.0% for the quarter and ended at 89.3%.
The company said total revenues increased by $8.9 million, driven by contributions from acquisitions and recently opened development properties, while operating expenses rose $7.1 million, primarily due to higher advertising and personnel costs.
Interest expense increased to $29.8 million from $26.1 million, reflecting higher average debt levels and rising interest rates. The company’s average outstanding debt rose to $3.48 billion, and its weighted average interest rate increased to 3.33%.
During the quarter, CubeSmart opened one joint venture development property in New York at a total cost of $28.0 million and acquired an initial store in Arizona through a newly formed joint venture with an affiliate of CBRE Investment Management for $13.6 million. CubeSmart holds a 15% interest in the venture and contributed $2.1 million.
The company said it added 33 stores to its third-party management platform, bringing the total to 854 locations encompassing 56.3 million rentable square feet.
CubeSmart repurchased 0.9 million shares for $33.4 million at an average price of $36.64 per share during the quarter, with 11.2 million shares remaining authorized for repurchase.
The company declared a quarterly dividend of $0.53 per share, paid April 15 to shareholders of record as of April 1.
Looking ahead, CubeSmart said it expects full-year 2026 diluted earnings per share between $1.55 and $1.63 and adjusted FFO per share between $2.52 and $2.60.
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