CubeSmart Q1 profit falls as expenses rise

CubeSmart

30/04/2026 21:34

Overview

U.S. self-storage REIT's Q1 revenue rose slightly, while EPS and adjusted FFO per share declined

Same-store NOI fell 1.5% as operating expenses outpaced revenue growth

Company repurchased 0.9 mln shares for $33.4 mln during the quarter

Outlook

CubeSmart sees 2026 diluted EPS at $1.55 to $1.63

Company expects 2026 FFO, as adjusted, per diluted share of $2.52 to $2.60

CubeSmart expects Q2 diluted EPS of $0.38 to $0.40

Result Drivers

ACQUISITIONS AND NEW DEVELOPMENTS - Revenue growth was mainly driven by contributions from property acquisitions and recently opened development properties

OPERATING EXPENSES - Higher same-store operating expenses, especially for advertising and personnel, weighed on profitability

INTEREST EXPENSE - Increased interest expense due to higher average outstanding debt balance and higher interest rates

Company press release: ID:nGNX453JN2

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Rental income
$239.93 mln
Q1 EPS
$0.36
Q1 Net Income
$82.75 mln
Q1 Adjusted FFO
$144.20 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 12 "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 $42.00, about 5.8% above its April 29 closing price of $39.71

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)