CubeSmart (CUBE) Q3 2024 Earnings Call Transcript
CubeSmart (NYSE:CUBE ) Q3 2024 Earnings Conference Call November 1, 2024 11:00 AM ET Company Participants Josh Schutzer – Vice President of Finance Chris Marr – President and Chief Executive Officer Tim Martin – Chief Financial Officer Conference Call Participants Jeffrey Spector – Bank of America Michael Goldsmith – UBS Juan Sanabria – BMO Capital Markets Daniel Tricarico – Scotiabank Nick Joseph – Citi Todd Thomas – KeyBanc Capital Markets Omotayo Okusanya – Deutsche Bank Ki Bin Kim – Truist Mike Mueller – JPMorgan Eric Luebchow – Wells Fargo Brendan Lynch – Barclays Operator Thank you for standing by. My name is John, and I will be your conference operator today.
CubeSmart (CUBE) Reports Q3 Earnings: What Key Metrics Have to Say
While the top- and bottom-line numbers for CubeSmart (CUBE) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
CubeSmart (CUBE) Misses Q3 FFO Estimates
CubeSmart (CUBE) came out with quarterly funds from operations (FFO) of $0.67 per share, missing the Zacks Consensus Estimate of $0.68 per share. This compares to FFO of $0.68 per share a year ago.
Here's Why CubeSmart (CUBE) is Poised for a Turnaround After Losing -10.81% in 4 Weeks
CubeSmart (CUBE) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Urbanization Fuels CubeSmart's Expansion, But Headwinds Lie Ahead
CubeSmart is well-positioned in the self-storage industry, leveraging urbanization and e-commerce trends, but faces short-term challenges with rising costs and flatlining revenue. CubeSmart's strong market presence, strategic expansion, and impressive dividend growth highlight its long-term potential, despite recent financial headwinds and lowered 2024 earnings guidance. Financial performance shows mixed signals: steady demand and high occupancy rates, but same-store revenue growth and NOI are struggling against rising operating expenses.
Four REIT stocks pass a strict quality screen, with dividend yields up to 6.19%
Investors can never predict the exact timing of interest-rate cuts, but many expect the Federal Open Market Committee to begin reducing the target range for the federal-funds rate on Sept. 18, following its next policy meeting.
The 3 Best REITs to Buy in August 2024
In recent years, real estate investment trusts (REITs) have notably underperformed compared to broader market indices, largely due to elevated interest rates. High interest rates place significant pressure on REIT share prices for two primary reasons.
CubeSmart (CUBE) Meets Q2 FFO Estimates
CubeSmart (CUBE) came out with quarterly funds from operations (FFO) of $0.64 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.66 per share a year ago.
CubeSmart Q2 Earnings Preview: Can Self-Storage Make A Summer Rebound?
CubeSmart (CUBE) is an underrated REIT in the self-storage sector, benefiting from a generational shift in living habits during the pandemic. CubeSmart is an owner, developer, and manager of self-storage assets in infill markets such as the East and West coast. CUBE releases Q2 earnings on August 1, providing a bellwether for the self-storage industry.
CubeSmart: One Of The Most Boring Business Models Delivers The Most Consistent Returns
CubeSmart operates as a REIT that provides self storage facilities across the US. CUBE has remained consistent in earnings growth due to a steadily increasing portfolio of properties. The current dividend yield sits at 4.2% and has increased at a double-digit growth rate over the last decade.
National Bank of Canada FI Has $40,000 Stock Position in CubeSmart (NYSE:CUBE)
National Bank of Canada FI reduced its position in shares of CubeSmart (NYSE:CUBE – Free Report) by 98.5% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 830 shares of the real estate investment trust’s stock after selling 52,776 shares during the period. National Bank of Canada FI’s holdings in CubeSmart were worth $40,000 at the end of the most recent reporting period. Other hedge funds and other institutional investors have also bought and sold shares of the company. Daiwa Securities Group Inc. increased its stake in shares of CubeSmart by 4.1% in the third quarter. Daiwa Securities Group Inc. now owns 71,808 shares of the real estate investment trust’s stock worth $2,738,000 after purchasing an additional 2,826 shares during the period. M&T Bank Corp raised its stake in CubeSmart by 4.7% during the 3rd quarter. M&T Bank Corp now owns 28,845 shares of the real estate investment trust’s stock valued at $1,100,000 after purchasing an additional 1,283 shares during the last quarter. Nisa Investment Advisors LLC grew its position in CubeSmart by 9.1% in the 3rd quarter. Nisa Investment Advisors LLC now owns 93,451 shares of the real estate investment trust’s stock worth $3,563,000 after purchasing an additional 7,831 shares during the last quarter. California Public Employees Retirement System increased its holdings in shares of CubeSmart by 2.7% during the 3rd quarter. California Public Employees Retirement System now owns 416,789 shares of the real estate investment trust’s stock worth $15,892,000 after purchasing an additional 11,019 shares during the period. Finally, OVERSEA CHINESE BANKING Corp Ltd increased its holdings in shares of CubeSmart by 4.1% during the 3rd quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 75,149 shares of the real estate investment trust’s stock worth $2,865,000 after purchasing an additional 2,993 shares during the period. 97.61% of the stock is currently owned by institutional investors and hedge funds. CubeSmart Price Performance Shares of CubeSmart stock opened at $44.36 on Monday. CubeSmart has a 1-year low of $33.17 and a 1-year high of $47.81. The firm’s 50-day moving average price is $43.23 and its two-hundred day moving average price is $43.03. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $9.98 billion, a price-to-earnings ratio of 24.64 and a beta of 0.72. CubeSmart (NYSE:CUBE – Get Free Report) last released its quarterly earnings results on Friday, April 26th. The real estate investment trust reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.22). The business had revenue of $261.41 million for the quarter, compared to the consensus estimate of $253.91 million. CubeSmart had a return on equity of 14.48% and a net margin of 38.64%. The firm’s revenue was up 1.9% on a year-over-year basis. During the same quarter last year, the company earned $0.65 earnings per share. On average, equities analysts predict that CubeSmart will post 2.64 earnings per share for the current fiscal year. CubeSmart Announces Dividend The business also recently declared a quarterly dividend, which was paid on Monday, April 15th. Investors of record on Monday, April 1st were given a dividend of $0.51 per share. The ex-dividend date was Thursday, March 28th. This represents a $2.04 annualized dividend and a yield of 4.60%. CubeSmart’s dividend payout ratio (DPR) is 113.33%. Analyst Upgrades and Downgrades A number of research firms recently weighed in on CUBE. Barclays started coverage on CubeSmart in a research report on Wednesday, March 27th. They set an “equal weight” rating and a $48.00 target price on the stock. Evercore ISI upped their target price on CubeSmart from $43.00 to $45.00 and gave the company an “in-line” rating in a research note on Monday, March 4th. Wells Fargo & Company lifted their price target on shares of CubeSmart from $42.00 to $46.00 and gave the stock an “equal weight” rating in a research note on Friday, April 5th. Raymond James restated an “outperform” rating and issued a $48.00 price objective on shares of CubeSmart in a research note on Thursday, March 28th. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of CubeSmart in a research report on Tuesday, January 30th. They set a “sell” rating and a $40.00 target price on the stock. One research analyst has rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $46.33. Read Our Latest Analysis on CubeSmart CubeSmart Company Profile (Free Report) CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States. Read More Five stocks we like better than CubeSmart Following Congress Stock Trades MarketBeat Week in Review – 5/13 – 5/17 Trading Stocks: RSI and Why it’s Useful Take-Two Interactive Software Offers 2nd Chance for Investors What Are the U.K. Market Holidays? How to Invest and Trade Deere & Company’s Q2 Report: Strong Revenue, Cautious Outlook
