CubeSmart: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 1 June 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Same-store NOI fell in quarter: In the first quarter, same-store revenue rose 0.6%, same-store expenses rose 5.8% and same-store NOI fell 1.5%. Source
• FFO per share shown two ways: The first-quarter highlights appear in two copies: one gives $0.63 FFO, as adjusted, per share with 33 stores added to management and a $13.6 million joint venture stake; the other gives $0.68, 88 stores and $18.6 million. Source
• Lowest-supplied NYC market: Supply across the three core outer boroughs is 2.8 square feet per capita, the lowest nationally and under half the 7.2 national average. The NYC portfolio is the largest purpose-built Class-A group in the outer boroughs. Source
• Occupancy 90.5%, down 30 bps: Year-to-date occupancy through May 31 was 90.5% on the same-store pool, down 30 bps year over year. Same-store rentals and vacates are charted against 2025. Source
• Leverage and coverage metrics: Net debt to EBITDA was 4.9x and fixed charge coverage 6.4x as of March 31, 2026. Total debt to enterprise value was 29.2%, with an $850.0 million revolving line. Source

“A company built to perform throughout all phases of the cycle”

CubeSmart, press release

Guidance

What changed from last quarter

• New: The company took a 15% ownership position in a newly formed joint venture that bought its first store during the quarter. Source

Results and growth drivers

• Same-store NOI fell in quarter: In the first quarter, same-store revenue rose 0.6%, same-store expenses rose 5.8% and same-store NOI fell 1.5%. Source
• FFO per share shown two ways: The first-quarter highlights appear in two copies: one gives $0.63 FFO, as adjusted, per share with 33 stores added to management and a $13.6 million joint venture stake; the other gives $0.68, 88 stores and $18.6 million. Source

Segments and regions

• Lowest-supplied NYC market: Supply across the three core outer boroughs is 2.8 square feet per capita, the lowest nationally and under half the 7.2 national average. The NYC portfolio is the largest purpose-built Class-A group in the outer boroughs. Source
• Supply pipeline waning in NYC: Management said the NYC supply pipeline is waning because legislation removed self-storage eligibility for the ICAP tax incentive program. Source
• Owned NOI in core markets: Management said 91% of owned store NOI for the quarter came from the top-40 MSAs. The portfolio spans 197 markets across 41 states and Washington DC. Source
• Secondary markets via partners: Third-party management and joint ventures add exposure to secondary and tertiary markets, further diversifying the portfolio. Source

“Focus on Efficient Operations Sector-leading expense control against an inflationary backdrop”

CubeSmart, press release

Customers and operating platform

• Customer touchpoints across channels: Management cites about 9 million website visitors and 935k sales-center calls a year (full year 2025). It says about 40% of customers rent through SmartRental. Source
• Dynamic pricing balances occupancy and rate: Management said real-time pricing decisions balance occupancy and rate to maximize revenue, and that optimized rate increases enhance revenue. Source
• Third-party management platform size: Management reported 854 third-party managed properties as of March 31, 2026 and 265+ relationships, with $40M of management fee revenue for 2025. Source

Costs and expense control

• Expense growth below sector in 2025: Same-store expense growth in 2025 was 1.2% for CUBE against 3.1% for the sector average, 190 bps better. Source
• Three-year expense growth below sector: Three-year average same-store expense growth was 2.5% for CUBE against 4.2% for the sector, 170 bps better. Source
• Expense growth since 2020 below sector: Same-store expense growth since 2020 was 2.9% for CUBE against 3.5% for the sector, 60 bps better. Source

“Creative capital deployment focused on long-term value creation”

CubeSmart, press release

Demand and occupancy

• Occupancy 90.5%, down 30 bps: Year-to-date occupancy through May 31 was 90.5% on the same-store pool, down 30 bps year over year. Same-store rentals and vacates are charted against 2025. Source
• Development headwinds reduce deliveries: Management said development headwinds are reducing new deliveries, which it describes as a tailwind for operational performance. Source
• Long-run cash flow track record: Management cites a proven track record of cash flow growth across cycles, and fragmented ownership as a source of external growth and consolidation. Source

Capital, debt and returns

• Share repurchases in quarter: One copy of the first-quarter highlights says the company repurchased 0.9 million common shares for $33.4 million at an average price of $36.64 per share. Source
• Leverage and coverage metrics: Net debt to EBITDA was 4.9x and fixed charge coverage 6.4x as of March 31, 2026. Total debt to enterprise value was 29.2%, with an $850.0 million revolving line. Source
• Debt maturities and interest rate: Weighted average maturity is 4.0 years and 87.9% of debt is fixed rate. The weighted average interest rate is 3.37% on one copy of the debt slide and 8.87% on the other. Source
• Balance sheet supports raising capital: Management said it raised $2.5 billion of capital over five years and that its investment-grade balance sheet gives access to a range of capital sources. Source
• Sixteen years of dividend increases: Management says it has raised the dividend for sixteen consecutive years, the longest active streak among storage REITs. Annual dividend per share rose 203% from 2015. Source

Growth strategy and investment

• Acquisitions since 2010: Since 2010 consolidated acquisitions total $6.2 billion, including $2.1 billion from third-party management, with 82% in top-25 MSAs as of March 31, 2026. Source
• Joint ventures add value: Joint ventures include $914 million acquired, 48 properties in existing ventures and 46 properties acquired from joint ventures upon exit. Source
• Development deliveries and refresh: Management reports $792 million of new development delivered, and aims to refresh the portfolio with purpose-built, trophy assets. Source

Leadership and governance

• Experienced management team: The team averages 15 years with CubeSmart, 16 years in self-storage and 18 years at publicly traded REITs. Christopher Marr is President and Chief Executive Officer. Source
• Board composition and independence: The board has nine trustees, eight of them independent, with a separate board chair and chief executive. The ISS governance rating of 2 places the company in the top 20% of public companies. Source
• Shareholder rights provisions: Shareholders have annual trustee elections, annual say-on-pay votes, a single voting class of stock and the right to call a special meeting. Source

Coming up, as management said on 1 June 2026

• Development pipeline: Management lists $28M of projects in the pipeline as of March 31, 2026, with development in top-10 MSAs. Source

Figures management reported

Risks management discussed

• Demand: Management said low existing home sales weigh on the seasonal part of demand, though it views this as pent-up demand when trends normalize. Source
• Operational: Management cites expense control against an inflationary backdrop as an operating focus. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.