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CubeSmart(CUBE) - 2024 Q3 - Quarterly Results
CUBECubeSmart(CUBE)2024-11-18 21:38

Financial Performance - Reported diluted earnings per share (EPS) attributable to common shareholders was 0.44forQ32024,downfrom0.44 for Q3 2024, down from 0.45 in Q3 2023[5] - Funds from operations (FFO), as adjusted, per diluted share decreased 1.5% to 0.67forQ32024,comparedto0.67 for Q3 2024, compared to 0.68 for the same period last year[6] - Net income attributable to the company for Q3 2024 was 100,797,000,comparedto100,797,000, compared to 102,645,000 in Q3 2023, a decrease of 1.8%[27] - Basic earnings per share for Q3 2024 were 0.45,downfrom0.45, down from 0.46 in Q3 2023, a decline of 2.2%[27] - Funds From Operations (FFO) attributable to common shareholders for the three months ended September 30, 2024, was 153,012,slightlydownfrom153,012, slightly down from 154,029 in the prior year[29] Revenue and Expenses - Total revenues increased by 3.0million,whilepropertyoperatingexpensesincreasedby3.0 million, while property operating expenses increased by 4.3 million in Q3 2024 compared to Q3 2023[12] - Total revenues for Q3 2024 were 270,890,000,anincreasefrom270,890,000, an increase from 267,876,000 in Q3 2023, representing a growth of 0.4%[27] - Rental income for Q3 2024 was 230,954,000,slightlydownfrom230,954,000, slightly down from 232,468,000 in Q3 2023, a decrease of 0.6%[27] - Total operating expenses increased to 147,343,000inQ32024from147,343,000 in Q3 2024 from 141,591,000 in Q3 2023, reflecting a rise of 4.9%[27] - The company reported an increase in property operating expenses to 81,868,000inQ32024from81,868,000 in Q3 2024 from 77,546,000 in Q3 2023, an increase of 5.9%[27] - Total operating expenses increased by 5.3% to 69,020forthethreemonthsendedSeptember30,2024,comparedto69,020 for the three months ended September 30, 2024, compared to 65,556 in the same period last year[28] Occupancy and Operations - Same-store net operating income (NOI) decreased 3.1% year over year, driven by a 0.8% decrease in revenues and a 5.3% increase in operating expenses[4] - Same-store occupancy averaged 90.8% during Q3 2024, ending at 90.2%[4] - The period end occupancy rate was 90.2% for both the three months ended September 30, 2024, and 2023, indicating stability in occupancy levels[28] - The realized annual rent per occupied square foot was 23.05forthethreemonthsendedSeptember30,2024,nearlyunchangedfrom23.05 for the three months ended September 30, 2024, nearly unchanged from 23.06 in the prior year[28] Investments and Future Outlook - The company is under contract to acquire two stores in Oregon and Pennsylvania for an aggregate purchase price of approximately 22.0million,expectedtocloseinQ42024[6]−Thecompanyanticipatesinvestingatotalof22.0 million, expected to close in Q4 2024[6] - The company anticipates investing a total of 36.9 million in two joint venture development properties in New York, expected to open in Q3 2025[7] - The company estimates fully diluted EPS for 2024 will be between 1.72and1.72 and 1.76, and fully diluted FFO per share, as adjusted, will be between 2.62and2.62 and 2.66[17] Dividends - The company declared a quarterly dividend of 0.51percommonshare,paidonOctober15,2024[16]−Thedividendpercommonshareincreasedto0.51 per common share, paid on October 15, 2024[16] - The dividend per common share increased to 0.51 for the three months ended September 30, 2024, compared to 0.49inthesameperiodof2023[29]−ThepayoutratioofFFOforthethreemonthsendedSeptember30,2024,was76.10.49 in the same period of 2023[29] - The payout ratio of FFO for the three months ended September 30, 2024, was 76.1%, up from 72.1% in the same period last year[29] Financial Position - Total assets as of September 30, 2024, were 6,192,415,000, a slight decrease from 6,225,020,000attheendof2023[26]−Totalliabilitiesdecreasedto6,225,020,000 at the end of 2023[26] - Total liabilities decreased to 3,319,783,000 as of September 30, 2024, from 3,344,212,000attheendof2023[26]−Cashandcashequivalentswere3,344,212,000 at the end of 2023[26] - Cash and cash equivalents were 43,507,000 as of September 30, 2024, down from 6,526,000attheendof2023[26]Risks−Thecompanycontinuestofacerisksincludingeconomicconditionsintherealestateindustryandcompetitionfromnewself−storageproperties[24]AdvertisingExpenses−Advertisingexpensessurgedby34.16,526,000 at the end of 2023[26] Risks - The company continues to face risks including economic conditions in the real estate industry and competition from new self-storage properties[24] Advertising Expenses - Advertising expenses surged by 34.1% to 8,095 for the three months ended September 30, 2024, compared to $6,036 in the same period last year[28]