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CubeSmart(CUBE) - 2025 Q1 - Quarterly Results
CUBECubeSmart(CUBE)2025-05-02 11:23

Financial Performance - Net income attributable to common shareholders for Q1 2025 was 89.2million,downfrom89.2 million, down from 94.5 million in Q1 2024, with diluted EPS decreasing to 0.39from0.39 from 0.42[5] - Adjusted FFO for Q1 2025 was 148.1million,slightlyupfrom148.1 million, slightly up from 146.4 million in Q1 2024, maintaining FFO per diluted share at 0.64forbothperiods[6]−TotalrevenuesforQ12025were0.64 for both periods[6] - Total revenues for Q1 2025 were 273.036 million, an increase of 4.0% from 261.406millioninQ12024[43]−NetincomeattributabletothecompanyforQ12025was261.406 million in Q1 2024[43] - Net income attributable to the company for Q1 2025 was 89.197 million, compared to 94.527millioninQ12024,reflectingadecreaseof5.094.527 million in Q1 2024, reflecting a decrease of 5.0%[43] - Same-store rental income decreased by 0.8% to 220.912 million in Q1 2025 from 222.739millioninQ12024[45]−BasicearningspershareattributabletocommonshareholdersforQ12025was222.739 million in Q1 2024[45] - Basic earnings per share attributable to common shareholders for Q1 2025 was 0.39, down from 0.42inQ12024[43]−FFOattributabletotheCompany′scommonshareholdersandthird−partyOPunitholdersincreasedto0.42 in Q1 2024[43] - FFO attributable to the Company's common shareholders and third-party OP unitholders increased to 148.149 million from 146.409million,showingagrowthofabout1.2146.409 million, showing a growth of about 1.2%[49] - Earnings per share attributable to common shareholders remained stable at 0.39 for both basic and diluted shares, compared to 0.42inthepreviousyear[49]RevenueandExpenses−Totalrevenuesincreasedby0.42 in the previous year[49] Revenue and Expenses - Total revenues increased by 11.6 million, while property operating expenses rose by 5.9millioncomparedtoQ12024,primarilyduetoacquisitionsandnewdevelopments[14]−Interestexpenseincreasedto5.9 million compared to Q1 2024, primarily due to acquisitions and new developments[14] - Interest expense increased to 26.1 million in Q1 2025 from 22.9millioninQ12024,attributedtoahigheraverageoutstandingdebtbalanceandincreasedinterestrates[15]−Interestexpenseonloansincreasedto22.9 million in Q1 2024, attributed to a higher average outstanding debt balance and increased interest rates[15] - Interest expense on loans increased to 26.100 million in Q1 2025, compared to 22.919millioninQ12024[43]−Realestatedepreciationandamortizationforrealpropertyincreasedto22.919 million in Q1 2024[43] - Real estate depreciation and amortization for real property increased to 56.689 million from 49.249million,ariseofapproximately15.149.249 million, a rise of approximately 15.1%[49] Occupancy and Property Performance - Same-store NOI decreased by 0.8% year-over-year, driven by a 0.4% decline in revenues and a 0.6% increase in operating expenses[12] - Same-store occupancy averaged 89.5% during the quarter, ending at 89.7%[9] - Period end occupancy for same-store properties was 89.7%, down from 90.3% in the prior year[45] - The company reported a gross margin of 71.5% for same-store results, slightly down from 71.7% in the previous year[45] - The company experienced a 10.4% increase in other property-related income, rising to 10.498 million from 9.507millionyear−over−year[45]AssetsandLiabilities−Totalassetsincreasedto9.507 million year-over-year[45] Assets and Liabilities - Total assets increased to 6.740 billion as of March 31, 2025, up from 6.394billionasofDecember31,2024[41]−Totalliabilitiesincreasedto6.394 billion as of December 31, 2024[41] - Total liabilities increased to 3.817 billion as of March 31, 2025, compared to 3.440billionasofDecember31,2024[41]DividendsandShareholderReturns−Thecompanydeclaredaquarterlydividendof3.440 billion as of December 31, 2024[41] Dividends and Shareholder Returns - The company declared a quarterly dividend of 0.52 per common share, paid on April 15, 2025[17] - Dividends per common share and unit increased to 0.52from0.52 from 0.51, reflecting a growth of approximately 2.0%[49] - The payout ratio of FFO rose to 81.3% from 79.7%, indicating a higher proportion of FFO being distributed as dividends[49] Shareholder Metrics - Weighted average diluted shares outstanding increased to 229,169 from 226,575, representing an increase of about 0.7%[49] - Weighted average basic shares outstanding increased to 228,663 from 225,767, reflecting an increase of about 1.1%[49] Future Estimates - The company estimates 2025 diluted EPS to be between 1.41and1.41 and 1.49, and adjusted FFO per share to be between 2.51and2.51 and 2.59[20] Acquisitions and Investments - The company acquired the remaining 80% interest in the HVP IV portfolio for 452.8million,whichincluded452.8 million, which included 44.4 million to repay existing indebtedness[7] - The company has two joint venture development properties under construction, with a total anticipated investment of 36.9million,ofwhich36.9 million, of which 18.5 million has been invested as of March 31, 2025[8] Noncontrolling Interests - Net income attributable to noncontrolling interests in the Operating Partnership decreased to 453,000from453,000 from 541,000, a decline of approximately 16.2%[49] - The Company's share of unconsolidated real estate ventures decreased to 1.810millionfrom1.810 million from 2.092 million, a decline of about 13.5%[49]