Q2 2024 CubeSmart Earnings Call Transcript
Key Points
- CubeSmart (CUBE) reported a 1.8% increase in rentals in its same-store portfolio compared to the second quarter of 2023.
- Same-store occupancy ended June at 91.9%, gaining 150 basis points during the quarter.
- The company added 39 stores to its third-party management platform, bringing the total to 879 stores under management.
- CubeSmart (CUBE) maintained a strong balance sheet with a 4.3 times debt to EBITDA ratio and effectively no floating rate exposure.
- The company opened two development projects in New York for a total cost of $61.8 million, demonstrating disciplined external growth.
- Same-store revenues grew only 0.3% compared to last year, with average occupancy for the same-store portfolio down about 110 basis points to 91.5%.
- Same-store operating expenses grew 4.2% over last year, driven by continued pressure on property insurance and timing issues related to repair and maintenance costs.
- The company reported a negative 1.2% same-store NOI growth due to the disparity between revenue growth and expense growth.
- Asking rates in the same-store pool began the quarter down roughly 13% to the prior year and ended June negative 9.8% compared to the end of June last year.
- CubeSmart (CUBE) experienced softness in key markets such as the West Coast of Florida, Atlanta, and Tucson, Arizona.
Thank you for standing by. My name is Kristina, and I will be your conference operator today. At this time, I would like to welcome everyone to the CubeSmart second quarter 2024 earnings call. (Operator Instructions)
At this time, I'd like to turn the call over to Josh Schutzer, VP of Finance.
Thank you, Kristina, good morning, everyone. Welcome to CubeSmart second quarter 2024 earnings call. Participants on today's call include Chris Marr, President and Chief Executive Officer; and Tim Martin, Chief Financial Officer. Our prepared remarks will be followed by a Q&A session. In addition to our earnings release, which was issued yesterday evening, supplemental operating and financial data is available under the Investor Relations section of the company's website at www.cubesmart.com.
The company's remarks will include certain forward-looking statements regarding earnings and strategy that involve risks, uncertainties and
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