CubeSmart

CUBE

Market cap $8.49B

U.S. equity markets staged a broad rally in the holiday-shortened week, while benchmark interest rates dipped to the cusp of multi-year lows, as investors leaned into December rate cut expectations. Reports that Kevin Hassett- a close Trump ally- has emerged as the frontrunner to succeed Fed Chair Powell in 2026 further sharpened expectations for a more explicitly dovish policy approach. The "Hasset trade" revived appetite for long-duration and rate-sensitive equity sectors, as investors priced in a lower terminal-rate environment and a steeper path of 2026 policy accommodation.

U.S. equity markets dipped in a volatile week, while benchmark interest rates pulled back from one-month highs, as renewed anxiety over stretched AI-driven valuations collided with mounting monetary policy uncertainty. Public commentary from Fed officials revealed an unusually fractured committee, with a divide that was deepened further by a mixed slate of employment data via the long-delayed September payrolls report. Payrolls data showed that the U.S. economy added 119k jobs in September- better than estimates- but prior months were revised lower and the unemployment rate rose to four-year highs.

A proposed 50-year mortgage and other government subsidies could improve housing affordability. This could have a major impact on various REIT property sectors. I discuss which REITs would benefit the most.

REITs are attractive now as inflation stabilizes and interest rates are expected to fall, boosting sector appeal and yield spreads. A rigorous screen identifies 37 equity REITs yielding 4.75%-plus and at least 20% undervalued. The list is then narrowed by forward revenue growth, dividend safety, and balance sheet quality to identify 13 Buried Treasures.

U.S. equity markets stumbled this week as unexpectedly hawkish Fed commentary clashed with fragile risk sentiment, muting investor relief over the deal to end the longest-ever government shutdown. December rate cut odds dipped below 50% after Fed officials firmly pushed back on rate-cut expectations, citing uneven inflation progress, pockets of financial-market froth, and the economic-data blackout. The S&P 500 finished flat, but hawkish commentary sparked renewed pressure on smaller-cap and rate-sensitive market segments, with the Mid-Cap 400 and Small-Cap 600 dipping 1%.

Over 200 U.S. REITs and homebuilders have reported third-quarter earnings results over the past five weeks, providing critical information on the state of the commercial and residential real estate industry. Overall, REIT earnings results were marginally better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balanced mix of sectors. Two-thirds of the sector (67 REITs) raised their full-year FFO outlook—above the historical average of 65%. Notable winners included Industrial, Senior Housing, Data Center, Retail, and Billboard REITs.

U.S. equity markets stumbled this week as stretched tech valuations collided with weakening consumer and labor market data, while the economic drag and uncertainty from the ongoing government shutdown build. Now it's real? The shutdown has now halted fiscal flows into several sizable government benefits programs - a sudden onset of fiscal austerity that could have non-trivial disinflationary impacts. Snapping a three-week winning streak, the S&P 500 dipped 1.7%. REITs led as earnings season wrapped up with a handful of surprisingly solid reports from some unlikely leaders.

US equity real estate investment trust indexes dropped during the final week of October. The Dow Jones Equity All REIT index closed the recent week down 3.29%, while the MSCI US REIT (RMZ) index fell 2.88%. The healthcare REIT index was the sole Dow Jones US real estate property sector index to close the week in the black, recording a 1.47% gain.

U.S. equity markets posted mixed performance this week- while long-term yields jumped- after the Federal Reserve cut short-term rates for a second-straight meeting, but reigned in expectations for future cuts. Fed Chair Powell hawkishly pushed back on market expectations, saying that another cut in December was "far" from certain and highlighting "strongly differing views" within the committee. Market breadth was exceptionally narrow this past week as post-earnings gains from a handful of mega-cap technology stocks offset weekly declines from over 70% of the S&P 500 constituents.

CubeSmart ( CUBE ) Q3 2025 Earnings Call October 31, 2025 11:00 AM EDT Company Participants Joshua Schutzer - VP of Finance & Head of Investor Relations Christopher Marr - CEO, President & Trustee Timothy Martin - CFO & Treasurer Conference Call Participants Samir Khanal - BofA Securities, Research Division Viktor Fediv - Scotiabank Global Banking and Markets, Research Division Todd Thomas - KeyBanc Capital Markets Inc., Research Division Juan Sanabria - BMO Capital Markets Equity Research Eric Wolfe - Citigroup Inc., Research Division Michael Griffin - Evercore ISI Institutional Equities, Research Division Ravi Vaidya - Mizuho Securities USA LLC, Research Division Spenser Allaway - Green Street Advisors, LLC, Research Division Brendan Lynch - Barclays Bank PLC, Research Division Eric Luebchow - Wells Fargo Securities, LLC, Research Division Michael Mueller - JPMorgan Chase & Co, Research Division Michael Goldsmith - UBS Investment Bank, Research Division Presentation Operator Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today.