CubeSmart (CUBE) Q2 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 10:57 AM CDT 36 min read

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DATE

Friday, Aug. 1, 2025 astatine 11 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Christopher P. Marr

• Chief Financial Officer — Timothy M. Martin

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Full Conference Call Transcript

Christopher P. Marr: Thank you, Josh. Good morning, everyone, and acknowledgment for joining us. We posted a precise coagulated bushed and rise 2nd quarter. The stabilization trends we experienced successful the archetypal 4th continued their affirmative momentum passim the 2nd 4th and into the period of July. Year-to-date, our cardinal show indicators person exceeded the expectations we articulated entering the year. Our anticipation of an anemic lodging marketplace and the lack of immoderate catalyst for a crisp betterment person proven accurate.

Our content successful the continued wellness of our lawsuit base, the resiliency of our merchandise and the gradual betterment of fundamentals person been directionally accurate, albeit the interaction of caller proviso and the gait and magnitude of betterment successful caller lawsuit move- successful rates person been much affirmative compared to our basal lawsuit assumptions. Digging a spot deeper into show done the engaged season, our trough-to-peak occupancy grew 190 ground points compared to 180 ground points past year. Our nett effectual rates for caller customers grew 28.3% compared to 15% successful 2024. Overall, complaint trends person been precise constructive. In the archetypal quarter, move-in rents were down 8.3% implicit the archetypal 4th of past year.

That spread successful the 2nd 4th contracted to 4%. And successful July, the spread was 3.3% and has been narrowing passim the month. We are experiencing akin coagulated trends successful occupancy with the spread to past twelvemonth narrowing further successful July. Continuing 1 further furniture deeper and looking astatine large marketplace performance, our municipality markets on the Acela Corridor, on with the stores successful Chicago proceed to beryllium our apical performers, indicative of the much muted reliance connected lodging transactions and stickier lawsuit base. And the laggards are the markets crossed the much volatile Sunbelt, chiefly Florida and Arizona, which are much reliant connected lodging mobility and are inactive absorbing caller supply.

Our New York MSA continues to radiance with coagulated sequential acceleration successful nett rental income from the archetypal quarter. The boroughs proceed to pb the way, benefiting from the simplification successful caller proviso and the wide basal of user and tiny concern demand, followed by precise bully show successful Long Island, portion Northern New Jersey continues to gradually amended arsenic the proviso is absorbed. Looking ahead, we expect the baseline for occupancy and move-in rates should attack parity by the extremity of the year. Naturally, fixed the information that we crook implicit astir 5% of our cubes successful immoderate fixed month, it volition instrumentality clip for each of that affirmative momentum to travel done the gross algorithm.