CubeSmart has recently released its 10-Q report, revealing its operations as a self-managed and self-administered real estate investment trust (REIT) conducted solely through CubeSmart, L.P. and its subsidiaries. As of March 31, 2024, the company owned or partially owned and consolidated self-storage properties in the District of Columbia and 24 states throughout the United States, operating under one reportable segment: owning, operating, developing, managing, and acquiring self-storage properties.
In ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CubeSmart reported owning 615 self-storage properties containing approximately 44.4 million rentable square feet as of September 30, 2024. The company also managed 893 stores for third parties, bringing the total number of stores owned and/or managed to 1,508. CubeSmart derives its revenue from customers leasing 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's financial performance is subject to seasonal fluctuations, with occupancy levels generally higher during the summer months due to increased moving activity. The company's results are also sensitive to changes in overall economic conditions that impact consumer spending and moving trends. CubeSmart continues to focus on maximizing internal growth opportunities and selectively pursuing targeted acquisitions and developments of self-storage properties.
The company's self-storage properties are located in major metropolitan and suburban areas, with no single customer representing a significant concentration of revenues. Stores in New York, Florida, California, and Texas provided approximately 18%, 14%, 11%, and 9% of total revenues for the nine months ended September 30, 2024, respectively.
CubeSmart's critical accounting policies and estimates include the basis of presentation, self-storage properties, long-lived assets, and investments in unconsolidated real estate ventures. The company accounts for its investments in unconsolidated real estate ventures under the equity method of accounting.
CubeSmart's results of operations are presented in conjunction with its unaudited consolidated financial statements and accompanying notes, reflecting only the existing stores for each period presented. The company considers its same-store portfolio to consist of only those stores owned and operated on a stabilized basis at the beginning and end of the applicable periods presented. As of September 30, 2024, CubeSmart owned 598 same-store properties and 17 non same-store properties. Today the company's shares have moved -1.1% to a price of $47.33. For more information, read the company's full 10-Q submission here.
