The following is a summary of the CubeSmart (CUBE) Q1 2024 Earnings Call Transcript:
Financial Performance:
CubeSmart reported flat year-on-year same-store revenues for Q1 2024.
Average occupancy dropped by 130 basis points to 90.4%.
Same-store operating expenses grew 5% resulting in a negative 1.9% same-store NOI growth for the quarter.
CubeSmart completed an acquisition of two stores in Connecticut for $20.2 million.
The company reported an FFO per share of $0.64 for Q1.
Quarterly Core FFO was $0.64 for H1 2024 with expectations of increasing to $0.68 in H2 reflecting a usual revenue increase in the summer rental season.
Business Progress:
CubeSmart added a record 68 third-party stores to its platform in Q1, totaling 860 stores under management.
Despite market uncertainties, occupancy levels and rates are expected to improve with the onset of summer.
The forward guidance for 2024 remains consistent with the expectations set in February.
Plans are underway to add a minimum of 130 new stores to the platform within the year.
The company saw web visits up by 6% and an improvement of 530 basis points in the conversion rate due to efficient marketing expenditure.
The company plans to reduce cost per click by around 9%, thereby curbing costs.
The company displays confidence in the long-term growth of the industry and continues to focus on providing the perfect rental for their customer base.
More details: CubeSmart IR
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