CubeSmart raises full-year FFO forecast as third-quarter revenue lands in line

CubeSmart (CUBE) said on Oct. 29 that its third-quarter total revenue was $293.97 million, in line with the $294.07 million consensus estimate compiled by Finnhub. The company also raised the low end of its full-year funds from operations forecast. Shares rose 2.1% in regular trading as of 9:40 a.m. ET on Oct. 30, from a regular-session close of $41.08.

CubeSmart is one of the top three owners and operators of self-storage properties in the United States, according to the 2026 Self-Storage Almanac.

Quarter results

The company’s results for the three months ended Sept. 30 were as follows:

• Total revenue: $293.97 million vs. $285.08 million a year earlier
• Diluted earnings per share attributable to common shareholders: 42 cents vs. 36 cents a year earlier
• FFO, as adjusted, per diluted share: 66 cents vs. 65 cents a year earlier

Net income attributable to the company’s common shareholders was $94.4 million, compared with $82.9 million a year earlier. Total revenues increased $8.9 million from the same quarter of 2025, the company said, mainly from higher occupancy and rental rates in its same-store portfolio.

FFO, as adjusted, was $150.3 million, compared with $149.0 million a year earlier.

Same-store results

Same-store net operating income rose 2.1% from a year earlier. Same-store total revenues increased 1.9%, and same-store operating expenses rose 1.3%.

Same-store average occupancy was 90.5% in the quarter, compared with 89.9% a year earlier. Period-end occupancy was 89.9%, up from 89.0%.

The company added 32 stores to its third-party management platform in the quarter, bringing the total to 882 stores.

2026 guidance

The company now expects fully diluted earnings per share for 2026 of $1.60 to $1.62. It expects fully diluted FFO, as adjusted, per share of $2.58 to $2.60, up at the low end from the $2.54 to $2.60 range it gave in its previous results release. The forecast excludes the impact of any potential future speculative investment activity.

“The strength of our year-to-date performance supported improvements to all of our full-year same-store and FFO guidance ranges,” Chief Financial Officer Tim Martin said.

Balance sheet and transactions

CubeSmart agreed to contribute 15 wholly-owned stores to a newly formed joint venture with an affiliate of Heitman Capital Management for an agreed-upon value of $197.0 million. The company will receive cash and hold a 20% interest, while Heitman will hold the remaining 80%. The transaction is scheduled to close in the fourth quarter of 2026.

The company used borrowings under its unsecured revolving credit facility to redeem $300 million of unsecured senior notes due in September 2026. It also repaid three mortgage loans with an aggregate balance of $40.3 million.

During the quarter, the company repurchased 2.1 million common shares for $83.9 million, at an average price of $39.09 per share. As of Sept. 30, 8.0 million shares remained available under the program.

After the quarter ended, the company entered into a $300 million unsecured term loan maturing Jan. 10, 2031, at SOFR plus 0.80%. Proceeds repaid amounts drawn under the revolving credit facility.

The company paid a quarterly dividend of 53 cents per share on Oct. 15, up from 52 cents a year earlier.