CubeSmart (CUBE) Stock Forecast & Price Target

CubeSmart has demonstrated a significant upward trajectory in its financial metrics, with the 2025 trough-to-peak effective rent showing a robust increase of 28% and occupancy rising by 190 basis points compared to prior year figures. The company's quarterly performance shows a positive trend with move-in rates increasing by 2.5% in the third quarter of 2025, marking its first positive result since early 2022. Additionally, revised guidance indicates enhanced revenue growth expectations coupled with reduced operating expense growth, leading to an anticipated 88 basis points increase in net operating income (NOI) growth at the midpoint.

CubeSmart's stock outlook is negatively influenced by a decline in October occupancy rates, which fell by 100 basis points year-over-year, combined with expectations for ongoing supply pressures in key Sunbelt markets that are projected to delay recovery until 2026. The company's core funds from operations (FFO) per share estimates for 2025 and 2026 have been reduced, reflecting a slower revenue ramp and prompting a decrease in the stock target price, indicating a more cautious financial outlook. Additionally, external risks such as low moving velocity in population shifts, weakness in the New York City market where CubeSmart has significant exposure, increased competition in third-party management, and rising regulatory scrutiny add further challenges to the company's revenue stability.