$0.66 per share lifts CubeSmart’s adjusted FFO, prompting it to raise 2026 outlook

Key Facts

CubeSmart reported results on October 29 for the third quarter and the nine months ended September 30, 2026, recording adjusted FFO per diluted share of $0.66. That was an annual increase of 1.5%, compared with $0.65 in the same period of 2025. The chief financial officer said the result was at the high end of the company’s quarterly forecast. The following day, the stock rose 4.04%, and EL7 data showed it closed at $42.74 on October 30. The results came amid an improvement in same-store performance, followed by the company raising its operating outlook for the year.

Net income attributable to common shareholders rose to $94.4 million in the third quarter, from $82.9 million a year earlier. Diluted earnings per share also increased to $0.42, compared with $0.36 in the third quarter of 2025. These figures show another aspect of the improved results, alongside growth in the adjusted FFO measure highlighted by the company in its release. The release compares the quarter’s results with the corresponding period a year earlier. In the same release, the company reported results for the nine months ended September 30, 2026.

At the operating level, same-store net operating income grew 2.1% year over year in the third quarter. The sample comprised 623 stores, whose revenue rose 1.9% and operating expenses increased 1.3% compared with the prior year. The chief executive said growth in same-store revenue and net operating income was supported by higher occupancy and improved leasing activity. The company also attributed the revenue increase to higher occupancy and rents. It linked the increase in property operating expenses mainly to higher property taxes and employee expenses.

The 623 same stores represented the largest share of the operating portfolio included in the measurement. They accounted for about 93.3% of the rentable area at the 662 consolidated stores. They also represented about 94.7% of property net operating income in the third quarter. This means same-store performance covered most of the area and property operating revenue reported in the release. Net operating income at these stores had fallen 0.7% in the second quarter of 2026 compared with the same period of 2025, before returning to growth in the third quarter.

Chief Executive Christopher Marr said the company sees momentum broadening across its portfolio. He added that this bolsters its confidence in the business trajectory and its ability to deliver sustainable growth. In another part of its business, CubeSmart added 32 stores to its third-party management platform during the quarter. That brought the total number of third-party managed stores to 882 as of September 30, 2026. The addition shows expansion in its management business alongside results from stores it owns or consolidates in its financial statements.

The company translated the operating improvement into an upward revision to its full-year outlook. Its 2026 same-store net operating income growth range is now 0.00% to 0.80%, compared with a previous range of a 1.00% decline to 0.25% growth. It also raised the low end of its adjusted FFO per diluted share forecast to $2.58, from $2.54. The high end remained at $2.60, making the new range $2.58 to $2.60, versus $2.54 to $2.60 previously. The outlook update follows the return of same-store net operating income growth to positive territory in the third quarter.

In its capital allocation, the company repurchased 2.1 million shares during the quarter through its buyback program. The purchases totaled $83.9 million, at an average price of $39.09 per share. CubeSmart reported these figures as part of its third-quarter results. This came alongside adjusted FFO growth to $0.66 per share and a higher low end for its annual forecast. The figures provide details on share repurchases during the period, without the release specifying a particular effect of the program on quarterly results.

On financing after the end of the quarter, CubeSmart entered into a $300 million unsecured term loan. The loan matures on January 10, 2031, and the effective interest rate cited in the release was SOFR plus 0.80 percentage points, based on the company’s current credit rating and leverage. The company used the proceeds to repay amounts drawn under its revolving credit facility. In development, it has one project under construction through a joint venture in New York. Total investment was estimated at $28.0 million, of which $10.8 million had been invested as of September 30, 2026, with an opening expected in the third quarter of 2027.