CubeSmart (CUBE) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results were at the high end of expectations, with positive same-store revenue growth for the first time since mid-2024, driven by steady demand and fewer vacates, narrowing the year-over-year occupancy gap to 20 basis points by April.

• Owns and manages 662 self-storage properties across 26 states and DC, with 48.5 million rentable square feet as of March 31, 2026; manages 854 additional third-party stores, totaling 1,516 stores under management.

• Urban markets in the Northeast and Midwest outperformed, while Sun Belt and West Coast markets showed early signs of recovery from supply headwinds.

• The company remains focused on building a high-quality portfolio in primary markets, leveraging strong demographics and density for long-term value creation.

• Focus remains on maximizing internal growth, selective acquisitions, and development of new properties.

Financial highlights

• Total revenues for Q1 2026 were $281.9 million, up 3.3% from $273.0 million in Q1 2025.

• Net income attributable to shareholders was $82.9 million, down 7.1% from $89.2 million year-over-year.

• Same-store revenue grew 0.6% year-over-year, while same-store operating expenses increased 5.8%, mainly due to inflation and elevated snow removal costs.

• Same-store NOI declined by 1.5% for the quarter.

• FFO, as adjusted, was $144.2 million ($0.63 per diluted share), down from $148.1 million ($0.64 per share) in Q1 2025.

Outlook and guidance

• Full-year 2026 diluted EPS guidance is $1.55–$1.63; FFO, as adjusted, per share guidance is $2.52–$2.60.

• Guidance for 2026 remains unchanged, with expectations for gradual improvement in operating trends and top-line growth, especially as the peak leasing season approaches.

• Recurring capital expenditures for the remainder of 2026 expected to be $20–25 million; planned capital improvements and upgrades $14.5–19.5 million; new store development $3.5–8.5 million.

• Expense growth is expected to moderate in the second half of the year as comps ease.

• Guidance excludes speculative investment activity due to timing and terms uncertainty.