CubeSmart – Real Estate Trust with 613 Properties

CubeSmart has recently released its 10-Q report, providing a comprehensive look at the company's financial performance and operations. CubeSmart is a self-administered and self-managed real estate investment trust, specializing in affordable and easily accessible self-storage properties for residential and commercial customers. As of March 31, 2024, CubeSmart owned or partially owned and consolidated 613 self-storage properties, containing approximately 44.4 million rentable square feet, and managed an additional 860 stores for third parties. The company operates in 24 states and the District of Columbia, with a focus on maximizing internal growth opportunities and selectively pursuing targeted acquisitions and developments of self-storage properties.

In its 10-Q report, CubeSmart highlights that it derives most of its revenue from customers who lease space at its stores and fees earned from managing stores. The company's operating results depend on its ability to retain existing customers, lease available self-storage cubes to new customers, and maintain or increase pricing levels. CubeSmart also notes that it experiences seasonal fluctuations in store occupancy, with slightly higher levels during the summer months due to increased moving activity.

The report discusses CubeSmart's critical accounting policies and estimates, emphasizing the importance of judgment and assumptions in preparing the financial statements. The company's accounting policies include the recording of self-storage properties at cost less accumulated depreciation and the assessment of long-lived assets for impairment when events and circumstances indicate potential declines in occupancy and operating results.

CubeSmart also provides insights into its investments in unconsolidated real estate ventures, detailing its use of the equity method of accounting and the assessment of potential impairment losses. The report states that no impairment losses related to the company's investments in unconsolidated real estate ventures were recognized during the three months ended March 31, 2024.

Additionally, the 10-Q report includes a discussion of CubeSmart's results of operations, highlighting the company's same-store portfolio and its usefulness in evaluating performance without the effects of acquisitions, developments, or dispositions. As of March 31, 2024, CubeSmart owned 598 same-store properties and 15 non same-store properties, with the non same-store property portfolio results including acquisitions from 2023 and 2024. Following these announcements, the company's shares moved -1.5%, and are now trading at a price of $40.76. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.