CubeSmart Q2 revenue, EPS rise on higher rental rates

CubeSmart

30/07/2026 21:32

Overview
US self-storage REIT's Q2 rental income rose 1% yr/yr, EPS up from prior year
Q2 adjusted FFO per share fell 3% yr/yr as operating expenses increased
Company repurchased 1.1 mln shares for $42.5 mln, expanded credit facility to $1 bln

Outlook
CubeSmart raises midpoint of 2026 same-store revenue, NOI, and FFO guidance ranges
Company sees 2026 diluted EPS at $1.58 to $1.64 and FFO, as adjusted, at $2.54 to $2.60
CubeSmart expects Q3 diluted EPS of $0.40 to $0.42 and FFO, as adjusted, of $0.64 to $0.66

Result Drivers
RENTAL RATE INCREASES - Co said higher rental rates in the same-store portfolio were the main driver of revenue growth
OPERATING EXPENSES - Co said higher personnel expenses and property taxes drove the increase in property operating expenses

Company press release: ID:nGNX4gHDfx

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Rental income
 
$242.22 mln
 
Q2 EPS
 
$0.39
 
Q2 Net Income
 
$89.46 mln
 
Q2 Adjusted FFO
 
$143.10 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for CubeSmart is $43.00, about 1.3% above its July 29 closing price of $42.43
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
July 28 - Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls
July 29 - Public Storage misses quarterly FFO estimates on soft demand
July 27 - REIT UDR sees 2026 FFO below estimate as higher costs weigh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)