CubeSmart (CUBE) Stock Forecast & Price Target

CubeSmart has demonstrated significant growth potential, as indicated by a 28% increase in trough-to-peak effective rent and a 190 basis point rise in occupancy rates in 2025, which are improvements over the figures for 2024. In addition, the company reported a 2.5% increase in move-in rates during the third quarter of 2025, marking the first positive movement in this metric since the first quarter of 2022. The revision in guidance assumptions reflects a projection of 25 basis points higher revenue growth and 163 basis points lower operating expense growth, contributing to an 88 basis point increase in net operating income growth at the midpoint.

CubeSmart has experienced a year-over-year decline in October occupancy by 100 basis points, with future revenue growth anticipated to face challenges, particularly in Sunbelt markets, which may not see recovery until 2026. Projected core funds from operations (FFO) per share for 2025 and 2026 have been reduced, highlighting a slower revenue ramp and reflecting less favorable estimates that have led to a lowered target price. Furthermore, the company is susceptible to broader economic trends, competitive pressures in third-party management, and regulatory scrutiny, particularly within high-exposure markets like New York City, all contributing to a negative outlook for its stock.