Executive Summary

Q3 results were in line with expectations: total revenues rose 5.2% year over year to $285.1M while diluted EPS fell to $0.36; FFO, as adjusted, per diluted share was $0.65 .
Revenue beat S&P Global consensus by ~$2.1M*, but EPS missed by roughly $0.02* as higher interest expense and D&A offset top-line growth .
Management raised 2025 midpoints for FFO/share and same-store metrics; same-store revenue/NOI midpoints improved and expense growth midpoint declined versus Q2 guidance .
First positive year-over-year move-in rates since Q1 2022 and diminishing new supply support a “slow, steady stabilization”; management sees positive same-store revenue more likely in the back half of 2026, barring a demand catalyst .

What Went Well and What Went Wrong

What Went Well

Stabilization took hold: Q3 saw the first Y/Y positive move-in rates since Q1 2022, with +2.5% in the quarter; management cited diminishing new supply and more constructive pricing in peak season (“slow, steady stabilization”) .
Expense control: Same-store expenses grew just 0.3% Y/Y; utilities and property insurance ran favorable after the May renewal .
Guidance raised: Midpoints for FFO/share and same-store revenue/NOI were increased versus Q2; EPS and FFO ranges nudged higher at the low end .

What Went Wrong

Same-store softness persists: Same-store NOI fell 1.5% Y/Y on a 1.0% revenue decline and 0.3% expense increase; average occupancy slipped to 89.9% and end occupancy to 89.0% .
EPS pressure: Diluted EPS declined Y/Y to $0.36, driven by higher interest expense (+$6.6M Y/Y to $29.4M) and higher depreciation/amortization .
Sun Belt drag: Markets like Atlanta, Phoenix, and parts of Texas remain pressured as deliveries continue; contrast with stronger performance in NYC, DC, and Chicago .

Financial Results

Consolidated Results and Same-Store KPIs

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($M)	$273.0	$282.3	$285.1
Diluted EPS ($)	$0.39	$0.36	$0.36
FFO, as adjusted, per diluted share ($)	$0.64	$0.65	$0.65
Same-Store NOI Growth (Y/Y, %)	(0.8%)	(1.1%)	(1.5%)
Same-Store Avg Occupancy (%)	89.5%	90.6%	89.9%
Same-Store Gross Margin (%)	71.5%	70.4%	70.2%

Notes:

Q3 revenues up $14.2M Y/Y; interest expense up $6.6M Y/Y; D&A higher Y/Y .
Same-store realized annual rent per occupied square foot was $22.99 (flat Y/Y) in Q3; end occupancy 89.0% vs 90.2% last year .

Estimate Comparison (S&P Global consensus)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue – Consensus ($M)	266.7*	275.5*	283.7*
Revenue – Actual ($M)	273.4	282.9	285.7
Rev Beat/(Miss)	+6.7*	+7.3*	+2.1*
EPS – Consensus ($)	0.382*	0.379*	0.381*
EPS – Actual ($)	0.39	0.36	0.36
EPS Beat/(Miss)	+0.01*	(0.02)*	(0.02)*

Values marked with * are from S&P Global consensus; Values retrieved from S&P Global.

Drivers of revenue beat/EPS miss in Q3: higher interest expense from greater average debt and rates; higher D&A; expense control partly offset .

Additional KPIs and Portfolio

Third-party managed stores: 863 at 9/30/25; +46 in Q3; 56.6M rentable sf .
Consolidated portfolio: 660 stores; 48.2M rentable sf; physical occupancy 88.6% at quarter end .
Net debt/EBITDA: 4.7x at quarter end (CFO) .
Financing: Issued $450M 10-year senior unsecured notes at 5.125% coupon (5.295% YTM) on Aug 20; proceeds repaid revolver and for general purposes .
Dividend: $0.52 per share declared July 29; paid Oct 15 .

Guidance Changes

Metric	Period	Previous Guidance (Q2 PR, 7/31/25)	Current Guidance (Q3 PR, 10/30/25)	Change
Same-store revenue growth	FY 2025	(1.25%) to (0.25%)	(1.00%) to (0.25%)	Raised midpoint
Same-store expense growth	FY 2025	1.50% to 3.00%	1.00% to 2.00%	Lowered midpoint
Same-store NOI growth	FY 2025	(2.75%) to (1.25%)	Sop (1.75%) to (0.75%)	Raised midpoint
Diluted EPS	FY 2025	$1.44 to $1.50	$1.46 to $1.50	Raised low end
FFO, as adjusted, per diluted share	FY 2025	$2.54 to $2.60	$2.56 to $2.60	Raised low end
Property mgmt fee income	FY 2025	$41.0M to $42.0M	$40.0M to $41.0M	Lowered
G&A expense	FY 2025	$63.0M to $64.0M	$64.0M to $65.0M	Higher
Interest & loan amort exp	FY 2025	$118.0M to $122.0M	$118.0M to $122.0M	Maintained
Acquisition of consolidated operating properties	FY 2025	$452.8M	$518.1M	Raised
Weighted avg shares & units	FY 2025	230.5M	230.5M	Maintained
Dividend (quarterly)	Q4 2025	$0.52 (declared 7/29)	$0.52 (latest declared)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Supply/demand stabilization	Q1: “positive start… improving occupancy and rate trends” ; Q2: “fundamentals have continued to stabilize”	First Y/Y positive move-in rates since Q1’22; pipeline shrinking; stabilization continuing	Improving, gradual
Pricing & promotions	Press releases emphasized better seasonal pricing in Q2	Move-in rates +2.5% in Q3; October ~1.9%; no change in promotions; gross=net	Stabilizing pricing power
Geographic dispersion	Noted high-quality/top-tier focus	Strength in NYC/DC/Chicago; Sun Belt (Atlanta/Phoenix/Charlotte/parts of Texas) lag due to supply and demand mix	Mixed by market
External growth	Q2: no acquisitions closed; JV development ongoing	3 stores under contract for Q4; JV development opened Port Chester; New Rochelle opening in Q4	Slight pickup
Leverage/financing	Q2: no ATM usage; credit facility drawn	$450M 2035 notes at 5.125%; net debt/EBITDA 4.7x; 2025 notes to roll to revolver then term out	Proactive terming-out
Technology/AI	Not highlighted in Q1/Q2 press	LLM leads <1%; not a material demand channel today	Minimal impact

Management Commentary

“It was a very solid third quarter for CubeSmart, which resulted in guidance increases across our key, same-store, and earnings metrics… the year has played out a bit better than we expected… lessening impact of new supply… constructive pricing… continued health of the consumer.” (CEO)
“For the quarter, we performed in line with our expectations, reporting FFO per share as adjusted of $0.65… same-store revenues declined 1%… expenses grew just 0.3%... favorable in utilities and property insurance.” (CFO)
“This was the first quarter since Q1 2022 where move-in rates… were positive year over year… we should be on improved footing heading into 2026.” (CEO)
“Our guidance implies negative revenue growth in Q4, although acceleration from Q3 at the midpoint… we’re seeing encouraging signs.” (CFO)

Q&A Highlights

Rate vs occupancy: Systems focus on maximizing revenue by market; strong urban markets (NYC, DC, Chicago) getting both rate and occupancy; Sun Belt markets still seeking balance .
Promotions unchanged: The +2.5% move-in rate was both gross and net; October move-in rate ~1.9% .
Timing of positive same-store revenue: With 4–5% monthly churn, revenue inflects slowly; conservatively expecting back half of 2026 without a demand catalyst .
Acquisitions/cap rates: 3 stores under contract for Q4; going-in yields low-5s, stabilizing near ~6% in years 2–3 (mixed bag of stabilization profiles) .
Supply outlook: Deliveries moderating overall but still present in certain Sun Belt markets; developers/lenders dynamics likely constrain new supply into at least 1H27 .

Estimates Context

Q3 revenue beat and EPS miss vs S&P Global consensus: revenue $285.7M vs $283.7M*; EPS $0.36 vs $0.381*; revenue outperformance but EPS headwind from higher interest expense and D&A .
Sequentially, revenue exceeded consensus in Q1 and Q2 as well, while EPS was inline to below in Q2 and above in Q1* .
With raised FY midpoints for FFO/share and same-store metrics, Street models may modestly lift FY FFO/share and lower property management fee income and slightly higher G&A to reflect updated ranges .