CubeSmart (CUBE) has reported a 58.64 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $24.99 million, or $0.14 a share in the quarter, compared with $15.75 million, or $0.08 a share for the same period last year.
Revenue during the quarter grew 11.92 percent to $133.04 million from $118.87 million in the previous year period.
Cost of revenue rose 11.57 percent or $4.66 million during the quarter to $44.87 million. Gross margin for the quarter expanded 10 basis points over the previous year period to 66.27 percent.
Total expenses were $92.65 million for the quarter, up 2.77 percent or $2.50 million from year-ago period. Operating margin for the quarter expanded 620 basis points over the previous year period to 30.36 percent.
Operating income for the quarter was $40.39 million, compared with $28.73 million in the previous year period.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.52 to $1.57.
Revenue from real estate activities during the quarter increased 11.92 percent or $14.17 million to $133.04 million.
Income from operating leases during the quarter rose 11.49 percent or $12.06 million to $117.06 million.
Income from management fees during the quarter jumped 41.97 percent or $0.89 million to $3 million. Revenue from other real estate activities during the quarter was $12.98 million, up 10.37 percent or $1.22 million from year-ago period.
"Solid first quarter results have us well positioned as we enter the high-volume spring and summer rental season," commented president and chief executive officer Christopher P. Marr. "Our managed portfolio increased 12.7% during the quarter as third-party owners continue to recognize the benefit of using CubeSmart’s sophisticated operating platform to lease-up and manage their new stores. We remain focused on maximizing property level cash flow through operational excellence and disciplined capital allocation."
Total assets grew 8.09 percent or $259.43 million to $3,466.12 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,773.96 million as on Mar. 31, 2017, up 22.26 percent or $322.94 million from year-ago.
Return on assets moved up 24 basis points to 1.10 percent in the quarter. At the same time, return on equity moved up 68 basis points to 1.52 percent in the quarter.
Debt moves up Total debt was at $1,598.96 million as on Mar. 31, 2017, up 23.33 percent or $302.47 million from year-ago. Shareholders equity stood at $1,639.42 million as on Mar. 31, 2017, down 2.63 percent or $44.33 million from year-ago. As a result, debt to equity ratio went up 21 basis points to 0.98 percent in the quarter.
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