CUBE Earnings Prediction
The chart below shows how CUBE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CUBE sees a +1.71% change in stock price 10 days leading up to the earnings, and a +3.02% change 10 days following the report. On the earnings day itself, the stock moves by +0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
CUBE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
267.73M
0.98%
-1.17%
Gross Margin
52.01%
-3.76%
2.24%
Operating Margin
46.35%
-4.33%
1.62%
Net Margin
38.06%
-10.80%
2.12%
EPS
0.45
-10.00%
2.27%
No Data Available
CUBE Earnings Analysis
CubeSmart Corporation (CUBE.N) Earnings Conference Call
Positive
Same-Store Revenue Improvement: The fourth quarter of 2024 may have marked an inflection point in the trend of decelerating same-store revenue growth, with year-over-year growth beginning to improve.
Occupancy Gap Improvement: The year-over-year same-store occupancy gap narrowed from negative 100 basis points at year-end 2024 to negative 50 basis points as of the end of February.
Rental Rate Improvement: Rents for new customer rentals improved their year-over-year gap from negative 10.3% in Q4 to negative 7.4% last week.
Customer Financial Health: Key metrics related to existing customers, such as write-offs, continue to perform at historically normal levels, indicating economic health among customers.
Joint Venture Acquisition Success: The company successfully closed out a joint venture investment, acquiring its partner’s interest in an accretive transaction, enhancing its portfolio in tier-one markets.
Equity Capital for Acquisitions: CubeSmart raised equity capital at attractive valuations, allowing for strategic acquisitions and leveraging capacity to fund purchases.
Dividend Increase Announcement: The company reported a 2% increase in its quarterly dividend, raising it to an annualized $2.08 per share, representing a 4.9% dividend yield.
Strategic Acquisition Highlights: The acquisition of an 85% interest in a 14-store portfolio in the Dallas MSA was highlighted as a strategic and accretive transaction, complementing existing assets.
Resilience in Self-Storage Sector: The company successfully navigated through cycles of uncertainty over the past 30 years, demonstrating resilience in the self-storage sector.
Negative
Same-Store NOI Decline: Same-store NOI declined 3.7% in the fourth quarter, indicating ongoing revenue pressure.
Negative Same-Store Revenue Growth: Same-store revenue growth was negative 1.6% for the quarter, driven by continued pressure on asking rates and a drop in occupancy levels.
Occupancy Level Decline: Occupancy levels dropped 120 basis points on average compared to last year, reflecting a decline in demand.
Same-Store Expense Increase: Same-store expenses grew 4.7% during the quarter, largely due to a 17.5% increase in real estate taxes compared to last year.
Housing Market Forecast Concerns: The company acknowledged that previous forecasts regarding housing market improvements were overly optimistic, indicating a lack of confidence in future growth.
Occupancy and Rate Decline: The guidance for 2025 indicates a potential decline in occupancy levels and mid-single digit decreases in rates compared to 2024.
FFO Per Share Decline: The FFO per share expectation for 2025 is down about nine cents from 2024, primarily due to the performance of the core same-store portfolio.
Same-Store NOI Decline: The midpoint expectation for same-store NOI is down 3%, which directly impacts the FFO per share guidance.
CUBE FAQs
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CUBE Earning Call Sentiment
CubeSmart (NYSE:CUBE) Q4 2024 Earnings Call Transcript
CUBE.N
1.28%Positive
The earnings call reveals several concerns: increased expenses due to high real estate taxes, a decrease in FFO per share expectations for 2025, and declining same-store NOI guidance. Despite some positive aspects like dividend increase and store acquisitions, the Q&A highlights uncertainties in market conditions, slow improvement expectations, and cautious management outlook. The lack of clear guidance and potential competitive pressures further contribute to a negative sentiment. Considering these factors, the stock price is likely to experience a negative movement in the short term.
