CubeSmart Raises Same-Store NOI Growth Outlook to 0.80% After Third-Quarter Improvement
Key Facts
On October 29, CubeSmart reported operating results for the three and nine months ended September 30, 2026, and raised its full-year outlook for same-store net operating income growth to a range of 0.00% to 0.80%. That compares with its previous outlook of a decline of 1.00% to growth of 0.25%, a revision reflecting improved operating metrics during the quarter. The company said net income attributable to common shareholders was $94.4 million, compared with $82.9 million in the third quarter of 2025. Diluted earnings per share rose to $0.42 from $0.36. Same-store net operating income across 623 stores grew 2.1% year over year.
Adjusted funds from operations were $150.3 million for the quarter, compared with $149.0 million a year earlier. On a diluted per-share basis, the measure rose 1.5% to $0.66 from $0.65. In a separate outlook update, CubeSmart said it expects diluted earnings per share of $1.60 to $1.62 for 2026 and adjusted funds from operations per share of $2.58 to $2.60. In July, the company had forecast diluted earnings per share of $1.58 to $1.64 and adjusted funds from operations per share of $2.54 to $2.60. The earnings-per-share outlook range therefore narrowed, while the low end of adjusted funds from operations guidance rose and the high end remained unchanged.
Same-store net operating income growth came from a 1.9% year-over-year increase in same-store revenue, alongside a 1.3% rise in operating expenses. Average occupancy during the quarter was 90.5%, and the quarter ended at 89.9%. The company attributed the revenue increase mainly to higher occupancy and rental rates across its same-store portfolio. By contrast, it said higher real estate taxes and personnel expenses were the main drivers of increased property operating expenses. The year-over-year comparison shows an improvement from the third quarter of 2025, when net operating income declined 1.5% and revenue fell 1.0%, while operating expenses rose 0.3%.
Occupancy metrics also improved compared with the end of the third quarter last year: same-store physical occupancy was 89.9% in September 2026, versus 89.0% in September 2025. The comparable level in September 2024 was 90.2%. In last year's results, net income attributable to shareholders fell to $82.9 million from $100.8 million in the third quarter of 2024. Adjusted funds from operations per diluted share also declined 3.0% to $0.65 from $0.67 in the year-earlier period. These figures place growth in net income and adjusted funds from operations per share in the current quarter on a recovery path following the declines in operating earnings reported in prior comparisons.
On capital allocation, CubeSmart repurchased 2.1 million shares during the quarter for $83.9 million, at an average price of $39.09 per share. A further 8.0 million shares remained available for repurchase under the program as of September 30. The company also agreed to contribute 15 wholly owned stores to a new joint venture affiliated with Heitman, at an agreed value of $197.0 million. CubeSmart will retain a 20% stake in the venture, while Heitman will own the remaining 80%; both companies will contribute cash. The transaction is expected to close in the fourth quarter of 2026; the company did not specify a more precise closing date in the disclosed information.
CubeSmart's revised 2026 outlook includes same-store revenue growth of 1.00% to 1.40%, up from the previous range of 0.50% to 1.25%. Alongside raising its same-store net operating income growth outlook, the company kept its diluted earnings per share and adjusted funds from operations per share guidance within the announced ranges. In the market, the stock closed at $41.08 on October 29, up from $40.33 in the previous session. Investing.com reported that earnings per share of $0.42 matched analysts' estimate, while quarterly revenue of $293.96 million exceeded the average forecast of $287.25 million. The company scheduled its third-quarter results call for 11:00 a.m. Eastern time on October 30, 2026, with a webcast on its investor relations website.