CubeSmart (CUBE) Stock Forecast & Price Target

CubeSmart's stock outlook is bolstered by a significant projected increase in effective rent, with a 28% rise anticipated for 2025, alongside a notable occupancy improvement of 190 basis points compared to the previous year. The company also reported its first positive move-in rates since early 2022, increasing by 2.5% in the third quarter of 2025, which underscores a rebound in tenant demand. Furthermore, revisions to revenue growth assumptions suggest a 25 basis points increase, coupled with a reduction in operating expense growth by 163 basis points, resulting in an improved midpoint net operating income (NOI) growth forecast of 88 basis points.

CubeSmart is experiencing negative financial indicators, evidenced by a 100 basis point year-over-year decline in occupancy rates and a downtick in core funds from operations (FFO) estimates for 2025 and 2026 due to a slower revenue ramp. The company faces continued supply pressure in key Sunbelt markets and significant risks related to economic trends, particularly a decline in moving activity and weakness in the New York City metropolitan area, where it has substantial exposure. Additionally, competitive pressures in the third-party management sector and increasing regulatory scrutiny within the self-storage industry pose further challenges to CubeSmart’s financial outlook.