CubeSmart (CUBE) Stock Forecast & Price Target

CubeSmart reported a notable increase in its 2025 trough-to-peak effective rent, showing a 28% rise and improved occupancy rates by 190 basis points, compared to the prior year's figures of 15% and 180 basis points, respectively. Positive movement in move-in rates, which were up 2.5% in the third quarter of 2025, marks the first growth since the first quarter of 2022, indicating a recovery in the self-storage market. The company's adjusted guidance for 2025 also reflects increased expectations for revenue growth and reduced operating expenses, leading to an anticipated 88 basis point rise in net operating income growth, alongside an increase in funds from operations per share estimates.

CubeSmart's outlook is negatively impacted by a notable decline in occupancy rates, with October figures showing a drop of 100 basis points year-over-year and expectations for a further sluggish revenue ramp through 2026. The company's normalized Funds From Operations per share (FFOps) are projected to decline by 1.0% in 2025 before experiencing a modest recovery, while ongoing supply pressures in key markets, particularly the Sunbelt region, may hinder demand recovery and lead to potential pricing and volume challenges. Additionally, rising competition for third-party management services and heightened regulatory scrutiny present further risks that could adversely affect CubeSmart's financial performance and market positioning.