CubeSmart Reports Q3 2023 Earnings: Net Income Decreases, FFO Increases
November 4, 2023
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CUBESMART ($NYSE:CUBE): CubeSmart, a real estate investment trust specializing in self-storage facilities, recently reported its Q3 earnings for 2023, which showed a decline in net income and an increase in Funds from Operations (FFO). The company announced a net income of $102.6M and FFO of $154M for the quarter. The company also offers self-storage solutions to individual customers and commercial customers, such as small businesses. Despite the decline in net income, CubeSmart’s FFO increased during the quarter.
This indicates that the company is continuing to invest in its properties and is seeing a positive return from those investments. It also suggests that the company is able to generate revenue through increased occupancy rates at its properties. CubeSmart’s Q3 earnings report is encouraging news for investors looking for a reliable real estate investment trust.
Stock Price
On Friday, CubeSmart reported its third quarter earnings for 2023, showcasing a decrease in net income but an increase in FFO. The stock opened at $35.4 and closed at a higher price of $36.2, up 4.1% from its prior closing price of $34.8. This was a significant increase from the previous day, indicating that investors were pleased with CubeSmart’s performance.
CubeSmart’s positive performance was attributed to their favorable occupancy rates and rent growth during the quarter, as well as their successful investments in new properties and expansion projects. Overall, investors seemed to be pleased with the quarterly report, evidenced by the increase in share price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cubesmart. CubeSmart_Reports_Q3_2023_Earnings_Net_Income_Decreases_FFO_Increases”>More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | 390.19 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cubesmart. CubeSmart_Reports_Q3_2023_Earnings_Net_Income_Decreases_FFO_Increases”>More…
| Operations | Investing | Financing |
| 596.24 | -48.77 | -547.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cubesmart. CubeSmart_Reports_Q3_2023_Earnings_Net_Income_Decreases_FFO_Increases”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.28k | 3.4k | 12.47 |
Key Ratios Snapshot
Some of the financial key ratios for Cubesmart are shown below. CubeSmart_Reports_Q3_2023_Earnings_Net_Income_Decreases_FFO_Increases”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 42.3% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale’s examination of CUBESMART’s fundamentals has revealed that it has an impressive health score of 8/10 when it comes to cashflows and debt. This score indicates that the company is in a good position to both pay off its debts and fund its operations in the future. Additionally, our analysis has classified CUBESMART as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. These qualities make CUBESMART an attractive option for investors who are primarily focused on dividend payments. Furthermore, its strong performance in other categories such as asset, dividend, growth, and profitability make it an appealing choice for investors looking for a well-rounded investment. CubeSmart_Reports_Q3_2023_Earnings_Net_Income_Decreases_FFO_Increases”>More…
Peers
CubeSmart is in the business of self-storage. Its competitors are LXP Industrial Trust, Terreno Realty Corp, Big Yellow Group PLC.
– LXP Industrial Trust ($NYSE:LXP)
LXP Industrial Trust is a publicly traded real estate investment trust that owns and operates a portfolio of light industrial properties in the United States. The company’s portfolio consists of approximately 26 million square feet of industrial space located in 21 states. LXP Industrial Trust is headquartered in Dallas, Texas.
– Terreno Realty Corp ($NYSE:TRNO)
Terreno Realty Corp is a real estate investment trust that primarily acquires, owns, and operates industrial properties in key logistics markets in the United States. As of December 31, 2020, the company’s portfolio consisted of 106 industrial properties totaling approximately 15.4 million square feet of leasable space.
– Big Yellow Group PLC ($LSE:BYG)
Big Yellow Group PLC is a United Kingdom-based self-storage company. The Company’s self-storage is a form of storage in which goods are stored in a rented space that the customer can access. The Company operates a portfolio of self-storage centres across the United Kingdom.
Summary
CubeSmart reported its Q3 2023 Earnings indicating a decrease of net income to $102.6M and an increase of FFO to $154M. The stock price reacted positively to the news, moving up on the same day. Investment analysis indicates that CubeSmart is performing well financially, despite the decrease in net income. The increase in FFO suggests that the company is able to generate cash flow, which is beneficial for investors.
In addition, the positive reaction from the stock market is a sign of market confidence in CubeSmart’s success. As such, investors should consider CubeSmart as a potential investment opportunity, with the potential of gaining returns.
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