Research Alert: Cubesmart Q1: Personnel & Property Tax Headwinds Limit Same-store Growth

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CUBE reported Q1 revenue of $282M (+3.3% Y/Y, $4M above consensus) driven primarily by acquisitions, with same-store revenue up just 0.2% Y/Y while NOI declined 1.5%. FFO per share was $0.63 (-1.6% Y/Y), in-line with consensus, as rising personnel expenses (+7.2%), advertising (+54.4%), and property taxes pressured margins. We continue to believe occupancy pressures from excess new builds will begin to ease in 2H 2026, particularly in underperforming Sun Belt markets. Management maintained FY 2026 FFO guidance of $2.52-$2.60 per share and same-store revenue growth guidance of -0.25% to +1.25%. We see same-store expenses accelerating and NOI turning negative in 2H 2026 based on current trends. Occupancy declined to 89.3% (down 30 bps Y/Y) as anticipated, though we expect improvement once new supply pressures subside. CUBE remained active with $33M in share repurchases and continued expanding through acquisitions and third-party management growth.