MALVERN, Pa. - CubeSmart (NYSE: NYSE:CUBE), a self-administered and self-managed real estate investment trust with a market capitalization of $9.38 billion, announced today that Joel Keaton, the company's Chief Operating Officer, will retire on April 30, 2025. Following his retirement, Keaton will transition to a consulting role to assist with the changeover. According to InvestingPro data, the company's stock has experienced a 13% decline over the past six months, though it maintains a GREAT financial health score.
In anticipation of Keaton's departure, CubeSmart has promoted Amy Cross to Executive Vice President, overseeing Technology, Data Science, and Marketing. Cross, previously Senior Vice President of Information Technology and Revenue Management, has been with CubeSmart for six years. Her tenure includes leading significant advancements in the company's IT and data operations. Before her time at CubeSmart, she served as Vice President of Digital Technology and Strategy at Aramark.
Guy Middlebrooks, currently Senior Vice President of Third Party Management, will step into the role of Executive Vice President of Operations. With 19 years at CubeSmart, Middlebrooks has been pivotal in expanding the company's managed portfolio. His new responsibilities will encompass field operations, third party management, and store transitions.
Christopher Marr, President and CEO of CubeSmart, expressed gratitude for Keaton's nearly 15 years of service and strategic contributions to the company's growth. Marr also conveyed confidence in the abilities of Cross and Middlebrooks to advance CubeSmart's strategy and enhance value creation.
CubeSmart, among the top three owners and operators of self-storage properties in the U.S., manages 1,528 self-storage facilities nationwide. The company is known for providing innovative solutions and services to address the organizational and logistical needs of its customers. With a robust 72.93% gross profit margin and a 21-year track record of consistent dividend payments, CubeSmart demonstrates strong operational efficiency. Discover more detailed insights about CubeSmart's performance metrics and future outlook with a InvestingPro subscription, which includes access to comprehensive Pro Research Reports covering 1,400+ top US stocks.
This leadership transition is based on a press release statement from CubeSmart.
In other recent news, CubeSmart, a self-storage real estate investment trust, has seen its stock rating downgraded to "Hold" from "Buy" by Jefferies due to weaker-than-expected move-in rates in Q4. Concurrently, RBC Capital Markets has reduced its price target on CubeSmart to $53, yet maintained its Outperform rating. Despite a minor shortfall in Q3 2024 revenue, gains in other income have offset this, with CubeSmart's performance in New York City highlighted as particularly strong.
Recent developments include CubeSmart's ambitious expansion plans, aiming to add over 130 stores annually, with two additional stores under contract for acquisition in Q4. The company has also raised $32.8 million through its equity program, maintaining a robust financial position. Furthermore, CubeSmart's full-year Funds From Operations (FFO) per share guidance remains unchanged, indicating confidence in its performance.
According to Jefferies, CubeSmart's urban-focused portfolio may not benefit from the housing recovery to the same extent as its peers, potentially exerting pressure on the company's stock multiples. However, RBC Capital Markets remains positive about CubeSmart's solid market position and its ability to navigate the competitive landscape in the self-storage industry. Despite regional declines, CubeSmart reported an increase in rental revenues by 7.4% in the New York MSA and an increase in marketing spend by 10% year-to-date to drive demand amidst competitive challenges.
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