Lifted by record-high occupancy, self-storage REIT CubeSmart enjoyed a nearly 18 percent jump in second-quarter revenue.
CubeSmart raked in $92.3 million during the quarter ended June 30, compared with $78.3 million during the same period a year ago. Profit during the quarter climbed to $7.8 million, up from $2.5 million in the year-ago period.
CEO Christopher Marr said during a conference call Aug. 8 with Wall Street analysts that record-high occupancy and aggressive rental strategies during the busy spring season drove the strong results.
“Asking-rent increases have accelerated throughout the year, a trend that has continued into July — a month in which we levered our high occupancy to be even more aggressive with our street-rate increases,” Marr said.
The company ended the quarter with 92.4 percent occupancy at its 346 same-store facilities, up from 90.1 percent during the same period last year. Same-store facilities are those that have been under CubeSmart’s control for at least a year. On Aug. 2, after the quarter wrapped up, the overall occupancy rate hit 93 percent, Marr said.
Same-store revenue rose 7.6 percent compared with the same time last year, with same-store profit growing by 9.7 percent.
The company bought nine facilities during the quarter for a combined total of $127.4 million. The facilities are in Florida, New York, Indiana, Massachusetts and Texas. CubeSmart already managed four of those locations.
Since June 30, the company has purchased two more facilities in Florida for $15.8 million, bringing its year-to-date acquisition spending to $246.6 million.
CubeSmart has four ongoing development projects with joint venture partners, representing an $80 million investment by the REIT. Three of those projects are in New York and one project is in Virginia; all of them are set for completion in 2015.
Marr also said the company has three “certificate of occupancy” deals in the works. Under those scenarios, private developers build facilities that CubeSmart then buys and operates.
“We spent a lot of time over the last 18 months looking for partners in specific markets who we have confidence can help us deliver on our value-creation pipeline,” Marr said.