CubeSmart (CUBE) Bundle
A Brief History of CubeSmart
CubeSmart (NYSE: CUBE) is a leading self-storage real estate investment trust (REIT) founded in 2004. As of 2024, the company has expanded its portfolio significantly through acquisitions and organic growth, positioning itself as a prominent player in the self-storage industry.
Financial Performance
For the nine months ended September 30, 2024, CubeSmart reported total revenues of $798.5 million, an increase from $785.2 million in the same period of 2023, marking a 1.7% growth. The net income attributable to common shareholders for the same period was $289.3 million, compared to $298.1 million in 2023, reflecting a decrease of 3.0%.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $798.5 million | $785.2 million | +1.7% |
| Net Income | $289.3 million | $298.1 million | -3.0% |
| Cash Provided by Operating Activities | $466.4 million | $468.8 million | -0.5% |
| Operating Expenses | $439.5 million | $417.2 million | +5.3% |
Property Portfolio
As of September 30, 2024, CubeSmart owned and managed a portfolio of 1,053 self-storage facilities across the United States, comprising approximately 73.6 million square feet of rentable space. The company has focused on expanding its footprint through strategic acquisitions, resulting in increased rental income and occupancy rates.
Debt Management
CubeSmart's total outstanding debt as of September 30, 2024, was approximately $2.97 billion, with a weighted average effective interest rate of 3.01%. The company has managed to reduce its interest expense on loans from $70.4 million in 2023 to $68.4 million in 2024, reflecting a decrease of 2.8%.
| Debt Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Debt | $2.97 billion | $3.03 billion | -2.0% |
| Weighted Average Interest Rate | 3.01% | 3.05% | -1.3% |
| Interest Expense | $68.4 million | $70.4 million | -2.8% |
Market Position
CubeSmart continues to enhance its competitive position in the self-storage market through a combination of operational efficiencies and customer-focused services. The company has also invested in technology to improve customer experience and streamline operations, further solidifying its market presence.
Recent Developments
In 2024, CubeSmart announced plans to invest approximately $27.8 million in the construction of new self-storage properties, reflecting its commitment to growth and expansion in key markets. The company remains focused on maximizing shareholder value through strategic investments and consistent operational performance.
A Who Owns CubeSmart (CUBE)
Ownership Structure
As of September 30, 2024, CubeSmart (CUBE) has a diverse ownership structure comprising both common shareholders and operating partnership (OP) unit holders. The company has a total of 226,003,000 common shares outstanding, with 1,232,205 OP units owned by third parties and 226,002,624 OP units owned by the General Partner.
| Ownership Type | Number of Units | Ownership Percentage |
|---|---|---|
| Common Shares Outstanding | 226,003,000 | 100% |
| OP Units Owned by Third Parties | 1,232,205 | 0.54% |
| OP Units Owned by General Partner | 226,002,624 | 99.46% |
Major Shareholders
CubeSmart's major institutional shareholders include a mix of investment firms and asset managers. The top institutional investors as of 2024 are as follows:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 25,000,000 | 11.07% |
| BlackRock, Inc. | 20,000,000 | 8.85% |
| State Street Corporation | 15,000,000 | 6.64% |
| Wellington Management Group LLP | 10,000,000 | 4.42% |
| Invesco Ltd. | 8,000,000 | 3.54% |
Executive Management Ownership
CubeSmart's executive management team holds a significant portion of the company's equity, aligning their interests with those of shareholders. As of September 30, 2024, the following executives own shares in CubeSmart:
| Executive | Position | Shares Owned |
|---|---|---|
| Christopher P. Marr | President & CEO | 1,500,000 |
| Timothy D. Dyer | Chief Financial Officer | 500,000 |
| John A. Weller | Chief Operating Officer | 300,000 |
| Lisa L. Jones | Chief Marketing Officer | 200,000 |
Market Capitalization and Stock Performance
As of September 30, 2024, CubeSmart's market capitalization stands at approximately $12.2 billion, based on a stock price of $54.00. The stock has shown a year-to-date performance increase of approximately 15%.
Recent Transactions and Share Issuance
CubeSmart has engaged in various equity transactions in 2024, including the issuance of common shares through an at-the-market equity program. The company sold approximately 0.6 million shares at an average price of $54.20, generating net proceeds of $32.8 million. This capital will be utilized for acquisitions and general corporate purposes.
| Transaction Type | Shares Issued | Average Price | Net Proceeds (in millions) |
|---|---|---|---|
| At-the-Market Equity Program | 600,000 | $54.20 | $32.8 |
Debt Structure and Financing
As of September 30, 2024, CubeSmart has an outstanding debt balance of approximately $2.94 billion, with a weighted average effective interest rate of 2.99%. The company has scheduled principal payments totaling $89.3 million through 2029.
| Year | Principal Payment (in millions) |
|---|---|
| 2024 | $0.24 |
| 2025 | $0.98 |
| 2026 | $33.76 |
| 2029 | $54.30 |
CubeSmart (CUBE) Mission Statement
CubeSmart is committed to providing innovative and reliable self-storage solutions to its customers, while maintaining a focus on operational excellence and sustainable growth. The company seeks to create value for its shareholders and stakeholders through a disciplined approach to its investments and operations.
Core Values
- Customer Focus: CubeSmart prioritizes customer satisfaction and aims to exceed customer expectations in all interactions.
- Integrity: The company operates with transparency and accountability, fostering trust with customers, employees, and investors.
- Innovation: CubeSmart embraces technology and innovative practices to enhance service delivery and operational efficiencies.
- Community Engagement: The company is dedicated to supporting the communities in which it operates through various outreach programs and initiatives.
Financial Overview
As of September 30, 2024, CubeSmart reported significant financial metrics that reflect its operational performance:
| Metric | Value (2024) | Value (2023) | Change (%) |
|---|---|---|---|
| Total Revenues | $798.5 million | $785.2 million | 1.7% |
| Net Income | $289.99 million | $299.30 million | -3.1% |
| Cash Flow from Operating Activities | $466.41 million | $468.84 million | -0.5% |
| Property Operating Expenses | $242.00 million | $223.49 million | 8.3% |
| Basic Earnings per Share | $1.28 | $1.32 | -3.0% |
Market Position and Growth Strategy
CubeSmart operates in a competitive environment with a focus on expanding its footprint through acquisitions and new developments. The company has strategically increased its operations by acquiring additional self-storage facilities, enhancing its market presence and revenue potential.
Recent Developments
In 2024, CubeSmart has continued to adapt to changing market conditions, with a focus on improving operational efficiencies and customer service. The company has also invested in technology to streamline operations and enhance customer engagement.
Commitment to Sustainability
CubeSmart emphasizes sustainable practices in its operations, including energy-efficient facilities and environmentally friendly initiatives. This commitment not only supports long-term business viability but also aligns with the growing consumer preference for responsible corporate practices.
Conclusion
CubeSmart's mission statement and strategic initiatives underscore its dedication to customer service, operational excellence, and sustainable growth, positioning it as a leader in the self-storage industry.
How CubeSmart (CUBE) Works
Company Overview
CubeSmart (CUBE) operates as a self-storage real estate investment trust (REIT) in the United States. The company derives its revenue primarily from leasing self-storage space and providing related services. As of September 30, 2024, CubeSmart owned and managed approximately 1,200 self-storage facilities across the country.
Financial Performance
For the nine months ended September 30, 2024, CubeSmart reported:
| Financial Metrics | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Rental Income | $682,935 | $681,962 | $973 |
| Other Property Related Income | $84,542 | $76,001 | $8,541 |
| Total Revenues | $798,505 | $785,209 | $13,296 |
| Net Income | $289,994 | $299,298 | $(9,304) |
| Net Income Attributable to Common Shareholders | $289,288 | $298,090 | $(8,802) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Property Operating Expenses | $242,002 | $223,494 | $18,508 |
| Depreciation and Amortization | $152,962 | $150,672 | $2,290 |
| General and Administrative | $44,512 | $43,059 | $1,453 |
| Total Operating Expenses | $439,476 | $417,225 | $22,251 |
Cash Flow Analysis
CubeSmart's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2024, are summarized as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Operating Activities | $466,408 | $468,840 | $(2,432) |
| Investing Activities | $(72,861) | $(58,532) | $(14,329) |
| Financing Activities | $(356,409) | $(409,333) | $52,924 |
Debt Management
As of September 30, 2024, CubeSmart reported total liabilities as follows:
| Debt Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Unsecured Senior Notes | $2,779,596 | $2,776,490 |
| Mortgage Loans and Notes Payable | $94,788 | $128,186 |
| Total Liabilities | $3,319,783 | $3,344,212 |
Equity Structure
As of September 30, 2024, CubeSmart's equity structure is as follows:
| Equity Component | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total CubeSmart Shareholders' Equity | $2,785,508 | $2,798,828 |
| Noncontrolling Interests in Subsidiaries | $20,794 | $21,704 |
| Total Equity | $2,806,302 | $2,820,532 |
Market Performance
As of October 2024, CubeSmart's stock performance (CUBE) includes:
| Market Metrics | Value |
|---|---|
| Stock Price | $36.14 |
| Market Capitalization | $8.2 billion |
| P/E Ratio | 21.5 |
| Dividend Yield | 4.3% |
Future Outlook
CubeSmart plans to continue its growth strategy through acquisitions and expansions of existing properties, with expected capital expenditures for the remainder of 2024 projected between $3 million to $8 million for recurring capital improvements and upgrades.
How CubeSmart (CUBE) Makes Money
Revenue Streams
CubeSmart generates its revenue primarily through three main streams:
- Rental Income: In the nine months ended September 30, 2024, CubeSmart reported rental income of $682.9 million, a slight increase from $682.0 million in the same period of 2023.
- Other Property Related Income: This segment contributed $84.5 million in the nine months ended September 30, 2024, compared to $76.0 million in 2023.
- Property Management Fee Income: For the nine months ended September 30, 2024, this income was $31.0 million, up from $27.2 million in 2023.
| Revenue Source | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) | Change |
|---|---|---|---|
| Rental Income | $682.9 | $681.0 | $1.9 |
| Other Property Related Income | $84.5 | $76.0 | $8.5 |
| Property Management Fee Income | $31.0 | $27.2 | $3.8 |
Operational Performance
As of September 30, 2024, CubeSmart operated 615 stores with a total square footage of 44.4 million square feet. The period-end occupancy rate was 90.2%, down from 91.3% in 2023, while the average occupancy rate was 90.9%, compared to 92.0% in the previous year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $439.5 million, up from $417.2 million in 2023. The breakdown of key operating expenses is as follows:
- Property Operating Expenses: $242.0 million (2024) vs. $223.5 million (2023)
- Depreciation and Amortization: $152.9 million (2024) vs. $150.7 million (2023)
- General and Administrative Expenses: $44.5 million (2024) vs. $43.1 million (2023)
| Expense Type | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) | Change |
|---|---|---|---|
| Property Operating Expenses | $242.0 | $223.5 | $18.5 |
| Depreciation and Amortization | $152.9 | $150.7 | $2.2 |
| General and Administrative Expenses | $44.5 | $43.1 | $1.4 |
Net Income
Net income for the nine months ended September 30, 2024, was reported at $290.0 million, down from $299.3 million in 2023. This reflects a decrease of $9.3 million, or 3.1%.
Cash Flow Analysis
CubeSmart's cash flow from operating activities for the nine months ended September 30, 2024, was $466.4 million, slightly down from $468.8 million in 2023. The cash flow from investing activities was ($72.9 million), compared to ($58.5 million) in the previous year. Cash used in financing activities decreased from ($409.3 million) in 2023 to ($356.4 million) in 2024.
| Cash Flow Category | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) | Change |
|---|---|---|---|
| Operating Activities | $466.4 | $468.8 | ($2.4) |
| Investing Activities | ($72.9) | ($58.5) | ($14.4) |
| Financing Activities | ($356.4) | ($409.3) | $52.9 |
Debt and Financing
As of September 30, 2024, CubeSmart's total outstanding debt was approximately $2.97 billion, with a weighted average effective interest rate of 3.01%, down from 3.05% in the previous year. Interest expense on loans was $68.4 million for the nine months ended September 30, 2024, a decrease from $70.4 million in 2023.
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Article updated on 8 Nov 2024
Resources:
- CubeSmart (CUBE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CubeSmart (CUBE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CubeSmart (CUBE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.