CubeSmart Posts 4Q Results

We have reviewed CubeSmart's CUBE fourth-quarter earnings release, and our fair value estimate for the self-storage landlord is unchanged. The multi-family sector's strength continues to bolster CubeSmart's operating performance. On a year-over-year, same-store basis, the company saw 3.4% revenue growth and a 0.5% decline in operating expenses, which led to 5.7% net operating income growth. Underpinning the revenue growth was a 14.7% increase in other property-related income, and 3.1% occupancy growth. We're of the opinion that double-digit increases and declines are anomalous in the storage space, though we do recognize that the near term represents a goldilocks confluence of positives for multi-family fundamentals, which is accretive to CubeSmart and other storage landlords.