CubeSmart reported its financial results for the fiscal year ending December 31, 2024, revealing a total revenue of $1.066 billion, a 1.5% increase from $1.050 billion in 2023. The company's net income attributable to common shareholders was $391.2 million, down 4.8% from $410.8 million in the previous year. The decrease in net income was primarily attributed to increased operating expenses, which rose by 7.8% to $317.8 million, driven by higher costs related to employee medical coverage and property taxes.
The company experienced a slight decline in occupancy rates, with an average occupancy of 88.8% for its 631 self-storage properties, down from 89.8% in 2023. Despite this, CubeSmart managed to maintain a diverse customer base, with no single customer representing a significant portion of its revenue. The company also expanded its portfolio, acquiring four new properties and increasing its total rentable square footage to approximately 45.8 million.
In terms of strategic developments, CubeSmart acquired an 85% ownership interest in seven consolidated joint ventures, which collectively own 14 self-storage properties, for $157.3 million. The company also completed the construction of two joint venture development properties in New Jersey and New York, with a total cost of $61.8 million. These acquisitions and developments are part of CubeSmart's strategy to enhance its market presence and capitalize on growth opportunities in the self-storage sector.
Operationally, CubeSmart managed a total of 1,533 stores, including 902 third-party managed properties across 40 states. The company reported a significant increase in property management fee income, which rose by 13.4% to $41.4 million, reflecting the growth in the number of stores under management. As of December 31, 2024, CubeSmart employed 3,104 teammates, with a focus on enhancing employee engagement and development through training programs.
Looking ahead, CubeSmart plans to continue its focus on selective acquisitions and the development of new self-storage properties. The company anticipates spending between $12.5 million to $17.5 million on capital improvements and approximately $22.0 million to $27.0 million on new developments in 2025. CubeSmart remains committed to maximizing cash flow and maintaining its status as a Real Estate Investment Trust (REIT), with a strong emphasis on operational efficiency and customer service.
About CubeSmart
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