NYSE$CUBE

CubeSmart · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

CubeSmart's Q1 2020 performance reflected a blend of steady growth and proactive adaptation to emerging challenges, as the company reported an increase in EPS and FFO per share amidst strategic expansions and the launch of innovative customer solutions.

CubeSmart reported a solid first quarter with increased EPS and FFO per share. The company expanded its third-party management platform and made strategic acquisitions. Same-store NOI increased by 0.8%, driven by revenue growth. In response to the COVID-19 pandemic, CubeSmart launched SmartRental and implemented safety measures, while also withdrawing its 2020 guidance due to uncertainty.

  • Reported EPS attributable to common shareholders was $0.20.
  • Reported FFO per share, as adjusted, was $0.41.
  • Same-store NOI increased 0.8% year over year, driven by 1.7% revenue growth.
  • Added 66 stores to the third-party management platform, bringing the total to 707 stores.

Headline financials

Total Revenue

$164M

Previous: $153M+7.4%
EPS (adj)

$0.41

Previous: $0.40+2.5%
Same-Store Avg Occupancy

91.5%

No prior period
Total Period-End Occupancy

90.2%

No prior period
Capital Expenditures

-$118M

Previous: -$74.8M-58.1%
Free Cash Flow

-$80M

Previous: -$39.1M-104.8%
Net Income

$38.3M

Previous: $35.8M+7.1%
Operating Income

$98M

Previous: $92.3M+6.2%
Gross Profit

$108M

Previous: $101M+6.8%
Cash & Equivalents

$35.7M

Previous: $3.53M+911.0%
Total Assets

$4B

Previous: $3.81B+4.9%
Stock-Based Comp

$1.87M

Previous: $1.62M+15.6%

Revenue & EPS history

CubeSmart · Revenue · Quarterly

$164M

Q1 2020+7.4%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Due to the uncertainty of the COVID-19 pandemic, the company is withdrawing its previously issued 2020 guidance.

Tailwinds

  • Liquidity position remains solid.
  • Strength of investment-grade balance sheet.
  • Modest leverage levels.
  • $680.9 million of capacity on revolving line of credit as of the end of April.
  • Ability to fund remaining commitments.

Headwinds

  • Uncertainty surrounding the duration, scope and severity of the pandemic.
  • Difficult to predict the impact on future operational and financial results.
  • Company’s ability to operate its stores could be impacted.
  • Customers’ ability to make rental payments could be impacted.
  • Success of actions taken to contain or treat COVID-19 and reactions by consumers, companies, governmental entities and capital markets are highly uncertain and cannot be predicted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+10.8%

Q1 2020

Best reaction

-6.9%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-0.5%-1.2%
Q4 2025-1.5%-1.5%-12.7%
Q3 2025-5.3%-3.4%-4.7%
Q1 2025+3.8%+3.0%+4.4%
Q4 2024-2.9%+1.7%-2.7%
Q3 2024-1.9%+1.7%+2.7%
Q2 2024+2.4%-0.1%+8.9%
Q1 2024-3.2%-4.0%-0.0%
Q4 2023+2.2%+4.4%+1.8%
Q3 2023+6.7%+6.1%+20.6%
Q2 2023-4.9%-3.4%-2.9%
Q1 2023+0.9%-2.0%-0.6%
Q4 2022+1.1%-0.2%-2.7%
Q3 2022+6.9%+6.5%+3.1%
Q2 2022+4.4%+7.0%+1.0%
Q1 2022-6.9%-9.0%-11.1%
Q4 2021+3.3%+1.3%+4.8%
Q3 2021+1.4%-2.7%-3.5%
Q2 2021+1.2%+2.6%+7.5%
Q1 2021+2.6%+1.5%+6.1%
Q4 2020-2.8%-7.1%-1.1%
Q3 2020-2.2%-2.9%-4.3%
Q2 2020+3.5%+4.5%+9.5%
Q1 2020+10.8%+1.4%+22.4%
Q4 2019+2.7%+1.9%-32.5%
Q3 2019-6.8%-7.0%-10.6%
Q2 2019+0.0%+0.8%+5.4%
Q1 2019+1.4%+1.5%+7.3%
Q4 2018-0.9%+2.2%+8.4%
Q3 2018-0.1%+3.2%+6.4%
Q2 2018-2.4%-0.2%+0.8%
Q1 2018+5.1%+6.6%+9.3%
Q4 2017+0.3%-0.6%+7.7%
Q3 2017+3.4%+5.0%+12.5%
Q2 2017-2.3%-0.4%+0.1%
Q1 2017-6.3%-7.4%-7.4%
Q4 2016+6.8%+4.0%+2.4%
Q3 2016-2.3%-2.7%-7.2%
Q2 2016-0.8%-2.3%-9.5%
Q1 2016-2.1%
Q4 2015+1.2%
Q3 2015-2.1%
Q2 2015+1.7%
Q1 2015+2.3%
Q4 2014-1.8%
Q3 2014+5.3%
Q2 2014+2.9%
Q1 2014-0.3%
Q4 2013-0.5%
Q3 2013-6.2%
Q2 2013+4.2%
Q1 2013-0.3%
Q4 2012+1.4%
Q3 2012-0.5%
Q2 2012+0.9%
Q1 2012+0.0%
Q4 2011+0.0%
Q3 2011+0.1%
Q2 2010+4.1%
Q2 2011+4.1%
Q1 2011-0.5%
Q4 2010-3.0%
Q3 2010+1.7%
Q1 2010+4.6%

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