CubeSmart Q1 EPS $0.36, FFO $0.63, NOI Falls 1.5%, Occupancy 89.3%
CUBE•CubeSmart reported Q1 2026 FFO per share of $0.63 and diluted EPS of $0.36, with same-store NOI down 1.5% on a 5.8% expense increase. Occupancy averaged 89.3%, share repurchases reached $33.4M at $36.64, and the company opened a $28M development property, acquiring a $13.6M joint-venture store.
1. Q1 Financial Results
CubeSmart reported net income of $82.9 million, diluted EPS of $0.36 and FFO as adjusted of $144.2 million, or $0.63 per share. Interest expense rose by $3.7 million to $29.8 million, reflecting a higher average debt balance and increased interest rates.
2. Portfolio Performance
Same-store NOI declined 1.5% year over year, driven by a 0.6% revenue rise offset by a 5.8% expense increase, with average occupancy at 89.0% rising to 89.3% at quarter-end. The consolidated portfolio comprised 662 stores totaling 48.5 million rentable square feet, while third-party management grew by 33 stores to 854 stores (56.3 million square feet).
3. Investment and Development Activity
During the quarter, CubeSmart acquired a store in Arizona for $13.6 million through a newly formed joint venture in which it holds a 15% interest and opened a New York development property at a cost of $28.0 million. One joint-venture development project remains under construction, with $8.0 million invested of the anticipated $28.0 million total.
4. Capital Deployment
The company repurchased 0.9 million common shares for $33.4 million at an average price of $36.64, leaving 11.2 million shares available under its program. A quarterly dividend of $0.53 per share was declared on February 24 and paid on April 15 to shareholders of record on April 1.
