CubeSmartNYSE: CUBE

CubeSmart (NYSE:CUBE ) Q3 2024 Earnings Conference Call November 1, 2024 11:00 AM ET Company Participants Josh Schutzer – Vice President of Finance Chris Marr – President and Chief Executive Officer Tim Martin – Chief Financial Officer Conference Call Participants Jeffrey Spector – Bank of America Michael Goldsmith – UBS Juan Sanabria – BMO Capital Markets Daniel Tricarico – Scotiabank Nick Joseph – Citi Todd Thomas – KeyBanc Capital Markets Omotayo Okusanya – Deutsche Bank Ki Bin Kim – Truist Mike Mueller – JPMorgan Eric Luebchow – Wells Fargo Brendan Lynch – Barclays Operator Thank you for standing by. My name is John, and I will be your conference operator today.

While the top- and bottom-line numbers for CubeSmart (CUBE) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

CubeSmart (CUBE) came out with quarterly funds from operations (FFO) of $0.67 per share, missing the Zacks Consensus Estimate of $0.68 per share. This compares to FFO of $0.68 per share a year ago.

MALVERN, Pa., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CubeSmart (NYSE: CUBE) today announced its operating results for the three and nine months ended September 30, 2024.

CubeSmart (CUBE) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

CubeSmart is well-positioned in the self-storage industry, leveraging urbanization and e-commerce trends, but faces short-term challenges with rising costs and flatlining revenue. CubeSmart's strong market presence, strategic expansion, and impressive dividend growth highlight its long-term potential, despite recent financial headwinds and lowered 2024 earnings guidance. Financial performance shows mixed signals: steady demand and high occupancy rates, but same-store revenue growth and NOI are struggling against rising operating expenses.

In recent years, real estate investment trusts (REITs) have notably underperformed compared to broader market indices, largely due to elevated interest rates. High interest rates place significant pressure on REIT share prices for two primary reasons.

CubeSmart (CUBE) came out with quarterly funds from operations (FFO) of $0.64 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.66 per share a year ago.

CubeSmart (CUBE) is an underrated REIT in the self-storage sector, benefiting from a generational shift in living habits during the pandemic. CubeSmart is an owner, developer, and manager of self-storage assets in infill markets such as the East and West coast. CUBE releases Q2 earnings on August 1, providing a bellwether for the self-storage industry.