CubeSmart Raises Full-Year Outlook After NOI Rebound

The Tip Desk · October 30, 2026 · 3 min read

Same-store NOI rose 2.1% in the third quarter, reversing a 0.7% year-over-year decline in the second quarter, and the REIT improved its 2026 same-store and FFO guidance ranges.

CubeSmart (CUBE), a self-administered real estate investment trust and one of the top three U.S. self-storage owners, reported that same-store net operating income rose 2.1% in the third quarter of 2026, reversing a 0.7% year-over-year decline in the second quarter.

The 623-store same-store pool generated $172.6 million of NOI, up from $169.0 million a year earlier. Same-store revenues increased 1.9% and operating expenses 1.3%, after a 0.8% revenue increase and a 4.4% expense increase in the prior quarter.

President and Chief Executive Officer Christopher P. Marr said third-quarter results reflected positive same-store revenue and NOI growth supported by higher occupancy and improving rental activity.

Period-average same-store occupancy was 90.5%, versus 90.4% in the second quarter. Period-end occupancy was 89.9%, down from 91.0% at June 30. Realized annual rent per occupied square foot was $22.81, up 0.5% from a year earlier.

Total revenues were $294.0 million, up $8.9 million from the year-ago quarter. Rental income was $247.8 million and other property-related income $36.1 million. The company said the revenue increase was primarily attributable to higher occupancy and rental rates in the same-store portfolio. Property operating expenses rose $4.9 million, which the company attributed primarily to higher property taxes and personnel expenses.

Net income attributable to common shareholders was $94.4 million, or $0.42 a share, compared with $82.9 million, or $0.36 a share, a year earlier. Funds from operations, as adjusted, were $150.3 million, or $0.66 a share, up 1.5% from $0.65 a share a year earlier. In the second quarter, adjusted FFO per share had fallen 3.1% to $0.63.

Interest expense on loans was $31.1 million, up from $29.4 million a year earlier. Average outstanding debt rose to $3.55 billion from $3.44 billion, and the weighted average effective interest rate increased to 3.37% from 3.32%.

In September the company used revolving-facility borrowings to redeem $300 million of unsecured senior notes due that month and repaid $40.3 million of mortgage loans. Unsecured senior notes, net, were $2.63 billion at September 30, versus $2.93 billion at year-end 2025. The revolving facility balance was $850.1 million.

CubeSmart repurchased 2.1 million shares for $83.9 million at an average $39.09, after buying 1.1 million shares for $42.5 million in the second quarter. Eight million shares remained available under the program.

The company added 32 stores to its third-party management platform, bringing the count to 882 stores and 58.2 million rentable square feet.

It agreed to contribute 15 wholly-owned stores covering about 0.9 million square feet to a joint venture with an affiliate of Heitman Capital Management for $197.0 million, taking cash and a 20% interest. The deal, first disclosed as subsequent to June 30, is scheduled to close in the fourth quarter of 2026.

Subsequent to quarter-end, CubeSmart entered a $300 million unsecured term loan maturing January 10, 2031 at SOFR plus 0.80% to repay revolving-facility draws. It declared a $0.53 quarterly dividend, paid October 15.

Chief Financial Officer Tim Martin said year-to-date performance supported improvements to all full-year same-store and FFO guidance ranges. The company now estimates fully diluted earnings of $1.60 to $1.62 a share for 2026 and fully diluted FFO, as adjusted, of $2.58 to $2.60 a share. Guidance excludes potential future speculative investment activity.