Third quarter 2026
Filed Oct 30, 2026CubeSmart Reports Third Quarter 2026 Results
Third-quarter same-store NOI increased 2.1%, supported by 1.9% same-store revenue growth, higher occupancy and improving rental activity. GAAP diluted EPS rose to $0.42 and FFO, as adjusted, per diluted share rose to $0.66, while the Company improved its full-year same-store and FFO guidance ranges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $294.0M | – | $ 8.9 million |
| Rental income, three months ended September 30GAAP | $247.8M | – | – |
| Other property related income, three months ended September 30GAAP | $36.05M | – | – |
| Property management fee income, three months ended September 30GAAP | $10.16M | – | – |
| Property operating expenses, three months ended September 30GAAP | $95.79M | – | $ 4.9 million |
| Depreciation and amortization, three months ended September 30GAAP | $55.95M | – | – |
| General and administrative expense, three months ended September 30GAAP | $16.50M | – | – |
| Total operating expenses, three months ended September 30GAAP | $168.2M | – | – |
| Interest expense on loans, three months ended September 30GAAP | $31.08M | – | $ 1.7 million |
| Net income, three months ended September 30GAAP | $94.31M | – | – |
| Net income attributable to the Company, three months ended September 30GAAP | $94.36M | – | – |
| Diluted earnings per share attributable to common shareholders, three months ended September 30GAAP | $ 0.42 | – | – |
| FFO attributable to the Company's common shareholders and third-party OP unitholders, three months ended September 30non-GAAP | $150.3M | – | – |
| FFO, as adjusted, attributable to the Company's common shareholders and third-party OP unitholders, three months ended September 30non-GAAP | $150.3M | – | – |
| FFO, as adjusted per diluted share and unit, three months ended September 30non-GAAP | $ 0.66 | – | 1.5% |
| Same-store total revenues, three months ended September 30other | $246.7M | – | 1.9 % |
| Same-store total operating expenses, three months ended September 30other | $74.07M | – | 1.3 % |
| Same-store net operating income, three months ended September 30non-GAAP | $172.6M | – | 2.1 % |
| Same-store gross margin, three months ended September 30other | 70.0 % | – | – |
| Same-store period end occupancy, three months ended September 30other | 89.9 % | – | – |
| Same-store period average occupancy, three months ended September 30other | 90.5 % | – | – |
| Same-store realized annual rent per occupied square foot, three months ended September 30other | $ 22.81 | – | 0.5 % |
| Total revenues, nine months ended September 30GAAP | $862.4M | – | – |
| Total operating expenses, nine months ended September 30GAAP | $506.0M | – | – |
| Net income attributable to the Company, nine months ended September 30GAAP | $266.8M | – | – |
| Diluted earnings per share attributable to common shareholders, nine months ended September 30GAAP | $ 1.17 | – | – |
| FFO, as adjusted, attributable to the Company's common shareholders and third-party OP unitholders, nine months ended September 30non-GAAP | $437.6M | – | – |
| FFO, as adjusted per diluted share and unit, nine months ended September 30non-GAAP | $ 1.92 | – | – |
| Same-store net operating income, nine months ended September 30non-GAAP | $505.0M | – | 0.0 % |
| Cash and cash equivalents as of September 30, 2026GAAP | $14.31M | – | – |
| Unsecured senior notes, net, as of September 30, 2026GAAP | $2.63B | – | – |
| Revolving credit facility as of September 30, 2026GAAP | $850.1M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteFully diluted earnings per share between $1.60 and $1.62
- NoteFully diluted FFO per share, as adjusted, between $2.58 and $2.60
- NoteThe 2026 same-store pool consists of 623 properties totaling 45.2 million rentable square feet.
- NoteThe impact of any potential future speculative investment activity is excluded from guidance.
Capital returns
- Repurchased 2.1 million common shares of beneficial interest for $83.9 million at an average purchase price of $39.09 per share.
- 8.0 million shares remained available for repurchase under the program as of September 30, 2026.
- Declared a quarterly dividend of $0.53 per common share on July 28, 2026, which was paid on October 15, 2026 to common shareholders of record on October 1, 2026.
- Dividends per common share and unit were $0.53 for the three months ended September 30, 2026, compared with $0.52 for the three months ended September 30, 2025.
What drove it
- Same-store revenue growth was supported by higher occupancy and rental rates in the same-store portfolio.
- Same-store occupancy averaged 90.5% during the quarter and ended at 89.9%.
- Same-store other property related income increased 16.8 % to $ 13,254 (in thousands).
- The third-party management platform added 32 stores during the quarter and included 882 stores totaling 58.2 million rentable square feet as of September 30, 2026.
- The Company has agreed to contribute 15 wholly-owned stores to a joint venture with an affiliate of Heitman Capital Management for an agreed-upon value of $197.0 million.
Concerns
- Property operating expenses increased $ 4.9 million, primarily due to increases in property taxes and personnel expenses.
- Interest expense on loans increased to $ 31,082 (in thousands) from $ 29,380 (in thousands), attributable to a higher average outstanding debt balance and higher interest rates.
- Nine-month FFO, as adjusted per diluted share and unit was $ 1.92, compared with $ 1.94 in the prior-year period.
- Same-store net operating income for the nine months ended September 30 was $ 504,980 (in thousands), compared with $ 505,082 (in thousands) in the prior-year period.
What to watch
- Execution and closing of the fourth-quarter 2026 Heitman joint venture transaction involving 15 stores.
- Performance of same-store occupancy, rental rates and property operating expenses relative to the improved 2026 outlook.
- Use of proceeds and refinancing effects from the $300 million unsecured term loan.
- Progress on the New York joint venture development property, which is expected to open during the third quarter of 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $ 14,311 (in thousands) as of September 30, 2026.
- The Company redeemed $300 million of outstanding unsecured senior notes due September 2026 using borrowings under its unsecured revolving credit facility.
- The Company repaid three mortgage loans with an aggregate balance of $40.3 million during the quarter.
- Subsequent to September 30, 2026, the Company entered into a $300 million unsecured term loan scheduled to mature on January 10, 2031. At the Company's current credit rating and leverage level, the effective interest rate is SOFR + 0.80%.
- Average outstanding debt balance was $3.55 billion during the three months ended September 30, 2026, compared with $3.44 billion during the three months ended September 30, 2025.
- Weighted average effective interest rate on outstanding debt was 3.37% for the three months ended September 30, 2026, compared with 3.32% during the three months ended September 30, 2025.
Analysis
CubeSmart reported improved third-quarter operating performance. Total revenues were $ 293,968 (in thousands), compared with $ 285,080 (in thousands) in the prior-year quarter, while net income attributable to the Company rose to $ 94,355 (in thousands) from $ 82,930 (in thousands). Diluted earnings per share attributable to common shareholders increased to $ 0.42 from $ 0.36. FFO, as adjusted, was $ 150,335 (in thousands), compared with $ 148,971 (in thousands), and FFO, as adjusted per diluted share and unit increased 1.5% to $ 0.66.
Same-store operations drove the quarter. Same-store total revenues rose 1.9 % to $ 246,708 (in thousands), while same-store operating expenses increased 1.3 % to $ 74,068 (in thousands), producing 2.1 % growth in same-store NOI to $ 172,640 (in thousands). Same-store gross margin was 70.0 %, compared with 69.8 %. Period average occupancy was 90.5 %, compared with 89.9 %, and period-end occupancy was 89.9 %, compared with 89.0 %. Realized annual rent per occupied square foot increased 0.5 % to $ 22.81.
The quarter also showed cost and financing pressure. Property operating expenses increased $ 4.9 million, primarily from property taxes and personnel expenses. Interest expense on loans rose to $ 31,082 (in thousands) from $ 29,380 (in thousands), as the average outstanding debt balance increased to $3.55 billion from $3.44 billion and the weighted average effective interest rate increased to 3.37% from 3.32%. For the nine-month period, FFO, as adjusted per diluted share and unit was $ 1.92, compared with $ 1.94, while same-store NOI was $ 504,980 (in thousands), compared with $ 505,082 (in thousands).
Capital allocation included $83.9 million of share repurchases for 2.1 million shares and redemption of $300 million of unsecured senior notes. The Company subsequently replaced revolving-credit borrowings with a $300 million unsecured term loan scheduled to mature on January 10, 2031. CubeSmart also expects to close a joint venture contribution of 15 wholly-owned stores with an agreed-upon value of $197.0 million in the fourth quarter of 2026. Management improved its full-year same-store and FFO guidance ranges and guided to fully diluted earnings per share of $1.60 to $1.62 and fully diluted FFO per share, as adjusted, of $2.58 to $2.60.
Management, verbatim
Third quarter results reflected strong execution across our operating platform, with positive same-store revenue and NOI growth supported by higher occupancy and improving rental activity.
Christopher P. Marr, President and Chief Executive Officer
We are encouraged by the broadening momentum across the portfolio, reinforcing our confidence in the trajectory of the business and our ability to generate durable growth.
Christopher P. Marr, President and Chief Executive Officer
The strength of our year-to-date performance supported improvements to all of our full-year same-store and FFO guidance ranges.
Tim Martin, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter metrics.
- GAAP operating income.
- Cash flow from operating activities.
- Free cash flow.
- Full-year 2026 revenue guidance.
- Full-year 2026 gross margin guidance.
- Full-year 2026 operating expense guidance.
- Full-year 2026 tax-rate guidance.
- Exact prior guidance ranges from the second-quarter earnings release, which was referenced but not provided.
- A quantitative full-year same-store guidance range in the filing text provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.