CubeSmart's Occupancy Gains Support Pricing Outlook for 2027, RBC Says

MT Newswires Live11-03 00:22

CubeSmart's (CUBE) Q3 occupancy gains should position the company to have more pricing power heading into 2027 as the self-storage market continues to absorb new supply, RBC Capital Markets said in a Monday note.

The firm described the competitive environment as constructive, with operators pulling back on promotional activity as recently opened stores reach higher occupancy. CubeSmart's occupancy increased 90 basis points year over year at the end of Q3, compared with flat occupancy at the end of Q2.

RBC said weaker move-in rents during Q3 reflected a deliberate near-term focus on occupancy, adding that rates turned positive late in the quarter and into October.

The firm raised its 2026 and 2027 core funds from operations estimates by $0.02 per share each, citing higher revenue growth that more than offset higher refinancing costs.

RBC maintained its $47 price target on the stock, with an outperform rating.

CubeSmart shares were more than 2% higher in Monday trading.

Price: 43.65, Change: +0.91, Percent Change: +2.13

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