Key Highlights

  • Diluted EPS was $0.42, compared with $0.36 a year earlier.
  • FFO as adjusted per diluted share rose 1.5% to $0.66.
  • Same-store NOI increased 2.1% across 623 stores.
  • Same-store occupancy averaged 90.5% and ended the quarter at 89.9%.
  • The company repurchased 2.1 million shares for $83.9 million.

EPS rises to $0.42 and FFO edges up

CubeSmart (NYSE:CUBE), a self-storage real estate Investment trust based in Malvern, Pennsylvania, reported third quarter 2026 results on October 29, 2026. Net Income attributable to common shareholders was $94.4 million, compared with $82.9 million, and diluted EPS rose to $0.42 from $0.36.

FFO, as adjusted, was $150.3 million versus $149.0 million. On a per diluted share basis, it increased 1.5% to $0.66 from $0.65.

CEO Christopher Marr said results reflected strong execution, with positive same-store Revenue and NOI growth supported by higher occupancy and improving rental activity.

Same-store growth and occupancy

Same-store NOI across 623 stores rose 2.1% year over year, resulting from a 1.9% increase in revenues and a 1.3% increase in operating expenses. The same-store pool covers 45.2 million rentable square feet, about 93.3% of the square footage of the company's 662 consolidated stores.

Same-store occupancy averaged 90.5% during the quarter and ended at 89.9%, so occupancy finished below the quarterly average on a calculated basis.

Mr. Marr said the company is encouraged by broadening momentum across the portfolio.

Heitman joint venture and development

CubeSmart agreed to contribute 15 wholly owned stores to a newly formed joint venture with an affiliate of Heitman Capital Management at an agreed value of $197.0 million. The company will receive cash and own a 20% interest, while Heitman will own the remaining 80%.

On development, the company had one joint venture property under construction at September 30, 2026. It anticipates investing $28.0 million in total and had invested $10.8 million to date.

That implies an average value of roughly $13.1 million per store for the joint venture contribution on a calculated basis.

Calculated ratios

Net income attributable to common shareholders grew about 13.9%, while FFO as adjusted grew just under 1% in dollars. The 15 stores in the joint venture equal about 2.3% of the 662 consolidated stores, and the 882 third-party managed stores outnumber the consolidated portfolio by about 33%.

The company's same-store occupancy of 89.9% at quarter-end sits 0.6 percentage points below the 90.5% average.

Why NOI outpaced revenue

Same-store revenue grew 1.9% while operating expenses grew 1.3%, so the 2.1% NOI growth came from expenses rising more slowly than revenue. The company added 32 stores to third-party management in the quarter and 90 in the nine months, which expands fee-based income without the capital needed to own the stores.

The share repurchase and the $300 million senior note Redemption show how the company is deploying capital between Buybacks and Balance Sheet management, alongside a small development commitment of $28.0 million.

Buybacks, Debt redemption and third-party management

The company repurchased 2.1 million common shares for $83.9 million, an average of $39.09 per share, and redeemed $300 million of unsecured senior notes.

Its third-party management platform added 32 stores in the quarter and 90 in the nine months, bringing the total to 882 stores with 58.2 million rentable square feet.

Readers tracking the name will likely follow same-store occupancy, how the joint venture closes and whether management fee growth continues.