- CubeSmart posted a solid beat and raise for the second quarter of 2025 with key performance indicators exceeding expectations year-to-date.
- FFO per share as adjusted was $0.65, at the high end of guidance.
- Move-in rates improved, down 4% in Q2 compared to down 8% in Q1 and down 10% in Q4 2024.
- Net debt-to-EBITDA ratio stood at 4.7x, with $300 million senior unsecured notes maturing in November 2025.
- Same-store operating expenses grew 1.2%, better than expectations, resulting in negative 1.1% same-store NOI growth.
- Same-store revenue growth was down 0.5% year-over-year, with average occupancy down 80 basis points to 90.6%.
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- Deposit costs were managed below 2%, with cumulative deposit beta reaching mid-50% range, matching terminal beta from the rising rate cycle.
- Loan growth was strong, with commercial loans up about $3 billion year-to-date, and average loans up $1.6 billion period-end.
- Net charge-offs were $102 million, down 7% sequentially, with credit metrics improving for the sixth consecutive quarter.
- Net interest income grew 28% year-over-year and 4% sequentially, with net interest margin increasing 8 basis points to 2.66%.
- Noninterest income rose 10% year-over-year, driven by investment banking, commercial mortgage servicing, commercial payments, and wealth management.
- Pre-provision net revenue increased by $44 million sequentially, marking the fifth consecutive quarter of growth, with aggregate PPNR up over 60% since Q1 2024.
- Reported second quarter earnings per share of $0.35, with revenues up 21% year-over-year and expenses up about 6% excluding charitable contributions.
- Tangible book value per share increased 3% sequentially and 27% year-over-year.
- Adjusted EBITDA reached a record $126 million, up 63% from $77 million a year ago.
- Commissions and related expenses as a percentage of revenue improved by 80 basis points to 81.84%.
- Compass delivered all-time high revenue of $2.06 billion in Q2 2025, a 21.1% year-over-year increase.
- Free cash flow hit a record $68 million, improving from $40.4 million in Q2 2024 despite a $28.75 million class action settlement payment.
- GAAP net income was $39.4 million, a 90% increase from $20.7 million in the prior year quarter.
- Market share rose to 6.09%, up 96 basis points year-over-year and 8 basis points sequentially.
- Non-GAAP operating expenses increased to $250 million, driven by acquisitions including Christie's International Real Estate.
- Total transactions increased 20.9% year-over-year, with organic transactions up 6.3%, outperforming the market decline of 0.9%.
- Adjusted EBITDA grew 13% year-over-year, reflecting revenue growth and higher fee income.
- Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
- Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
- Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
- Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
- Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
- Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
- Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
- Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
- Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
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