- CubeSmart, Extra Space and Public Storage reported improved third-quarter results, with CubeSmart same-store NOI up 2.1% and Extra Space same-store NOI up 4.6% as its expenses fell.
- Extra Space occupancy reached 94% versus 93.7% a year earlier, Public Storage averaged 92.5% with move-in rents up 1.6%, and CubeSmart’s same-store occupancy averaged 89%.
- Public Storage closed its National Storage Affiliates deal, adding over 1,100 stores, while CubeSmart and Extra Space kept growing their third-party management platforms.
The three largest self-storage REITs reported improved third-quarter results, with higher occupancy and firmer rental activity, according to Inside Self-Storage.
CubeSmart’s same-store NOI rose 2.1%, while Extra Space’s gained 4.6% as expenses fell.
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CubeSmart Turns the Corner
CubeSmart posted adjusted FFO of $0.66 a share. Same-store revenue grew 1.9%, and expenses rose 1.3% on higher staffing costs and property taxes. Occupancy in the same-store pool averaged 89% over the quarter.
CEO Christopher Marr said results showed growing momentum across the portfolio. CubeSmart’s third-party management roster grew by 32 stores to 882, and one joint-venture development in New York is due to open next fall.
Extra Space Leads
Extra Space’s same-store revenue rose 2.7% while expenses fell 1.8%. Core FFO of $2.17 a share was up 4.3%, and occupancy ended September at 94%, up from 93.7% a year ago.
It spent $48.6 million on four operating stores. Its managed-for-others roster rose by 78 sites to 1,963, plus 408 in joint ventures it doesn’t consolidate.
Public Storage Keeps Buying
Public Storage reported core FFO of $4.34 a share and average same-store occupancy of 92.5%. Move-in rents gained 1.6%, a swing from the first quarter’s 2.4% drop.
It completed the National Storage Affiliates and Public Storage Canada purchases, bringing in over 1,100 locations. In the quarter it bought 25 facilities with 1.7 million square feet for $258.4 million, and year to date it has bought or contracted 65 facilities for $713.2 million.
Zoom Out
The turn is clear against last quarter. In our brief on mixed Q2 NOI, CubeSmart’s same-store NOI fell 0.7% and Extra Space’s rose 3.5%.
Rate pressure hasn’t gone away. Yardi Matrix data in our self-storage rates brief put national advertised rates down 1.8% in September, with REIT asking rates down 3.3%.
Dividends and Scale
CubeSmart paid $0.53 a share on Oct. 15, Extra Space $1.62 on Sept. 15 and Public Storage $3.00 on Oct. 6.
By store count, Public Storage leads with 4,764 locations, followed by Extra Space at 4,411 and CubeSmart at 1,586 owned or managed.
Why It Matters
Supply is slowing and occupancy is improving, which supports the REITs’ case that the sector is stabilizing, even if street rates remain soft.
What’s Next
Public Storage has 3.3 million square feet in development at an estimated $571.2 million, plus expansions. About $466.6 million of its development and expansion spending remains, through roughly the next two years.
