CubeSmart (CUBE) shares tumbled more than 5% in extended trading on Thursday after the self-storage REIT reported disappointing fourth-quarter results and issued lackluster guidance for 2025, citing a volatile market environment.
For Q4 2024, CubeSmart's revenue of $231.4 million missed the consensus estimate of $266.4 million, while adjusted funds from operations of $0.68 per share were in line with expectations. Same-store net operating income declined 3.7% year-over-year due to a 1.6% drop in revenues and a 4.7% increase in operating expenses.
Looking ahead, the company expects full-year 2025 adjusted FFO of $2.50 to $2.59 per share, well below the consensus estimate of $2.67. CubeSmart also anticipates same-store revenue growth between -2% and 0% and net operating income growth of -4.25% to -1.75% in 2025, as the self-storage industry grapples with a deceleration in growth rates and macro uncertainty.