On November 3, 2023, CubeSmart (CUBE, Financial) announced its operating results for the third quarter of 2023. Despite a decrease in net income, the company showed a steady performance with an increase in FFO and promising investment activities.
Financial Performance
CubeSmart (CUBE, Financial) reported a net income of $102.6 million for Q3 2023, a decrease from $112.9 million in Q3 2022. The decrease was primarily due to a $45.7 million gain in 2022 related to the sale of 14 properties within the HVPSE joint venture. However, FFO, as adjusted, increased to $154.0 million in Q3 2023, compared to $150.0 million in Q3 2022.
Investment and Development Activities
The company is under contract to acquire a store in New Jersey for $22.0 million, expected to close in Q4 2023. Additionally, CubeSmart (CUBE, Financial) has agreements with developers for the construction of self-storage properties in high-barrier-to-entry locations. As of September 30, 2023, the company had three joint venture development properties under construction, with a total anticipated investment of $75.2 million.
Same-Store Results and Operating Results
Same-store revenues for Q3 2023 increased by 2.3% and same-store operating expenses increased by 3.0% from Q3 2022. The company's total consolidated portfolio included 611 stores containing 44.1 million rentable square feet and had physical occupancy of 90.7% as of September 30, 2023.
Financial Outlook
For 2023, CubeSmart (CUBE, Financial) estimates its fully diluted earnings per share to be between $1.78 and $1.80, and its fully diluted FFO per share, as adjusted, to be between $2.65 and $2.67.
About CubeSmart (CUBE, Financial)
CubeSmart (CUBE) is a self-administered and self-managed real estate investment trust. The company's self-storage properties are designed to offer affordable, easily accessible, and, in most locations, climate-controlled storage space for residential and commercial customers. CubeSmart is one of the top three owners and operators of self-storage properties in the United States, according to the 2023 Self-Storage Almanac.
Explore the complete 8-K earnings release (here) from CubeSmart for further details.
