CubeSmart Reports Q3 2025 Revenue Growth of 5.2% to $285.1 Million, Net Income Declines 17.7%

CubeSmart reported its financial results for the third quarter of 2025, revealing total revenues of $285.1 million, a 5.2% increase from $270.9 million in the same period last year. The growth was primarily driven by additional revenues from newly acquired and opened stores. However, net income attributable to the company decreased to $82.9 million, or $0.36 per share, compared to $100.8 million, or $0.45 per share, in the prior year, reflecting a decline of 17.7%. For the nine months ended September 30, 2025, total revenues reached $840.4 million, up 5.2% from $798.5 million in the same period of 2024, while net income fell to $255.1 million from $289.3 million.

The company experienced significant changes in its operational metrics, with property operating expenses rising to $90.8 million for the third quarter, an 11% increase from $81.9 million in the previous year. This increase was attributed to expenses associated with the newly acquired stores. Additionally, depreciation and amortization expenses surged by 30.2% to $66.7 million, reflecting the impact of new acquisitions. The company’s total assets increased to $6.76 billion as of September 30, 2025, compared to $6.39 billion at the end of 2024, driven by the acquisition of additional storage properties.

In terms of strategic developments, CubeSmart completed the acquisition of the remaining 80% interest in HVP IV, a real estate venture that owns 28 self-storage facilities, for $452.8 million in February 2025. This acquisition has been consolidated into the company’s financial statements, enhancing its asset base. As of September 30, 2025, CubeSmart owned or partially owned 660 self-storage properties, an increase from 631 properties at the end of 2024. The company also managed 863 stores for third parties, bringing the total number of stores owned and/or managed to 1,523.

The company’s operational performance indicators showed a slight decline in occupancy rates, with period-end occupancy at 88.6% compared to 89.7% in the previous year. The average realized annual rent per occupied square foot remained stable at $22.99. CubeSmart's financial leverage increased, with total unsecured senior notes rising to $3.22 billion from $2.78 billion at the end of 2024, reflecting the company’s strategy to finance growth through debt.

Looking ahead, CubeSmart remains focused on maximizing internal growth opportunities while selectively pursuing targeted acquisitions and developments. The company anticipates ongoing challenges from economic conditions that could impact consumer spending and rental payments. However, it believes that its diversified portfolio and operational strategies will enable it to navigate these challenges effectively. The company has approximately $108.4 million in cash and cash equivalents and $849.3 million available under its revolving credit facility, providing a solid liquidity position to support its business operations and growth initiatives.