CubeSmart Announces $450 Million Senior Unsecured Notes Offering

Strategic Insights -

CubeSmart, the third-largest owner and operator of self-storage properties in the United States, has announced an underwritten public offering of $450 million aggregate principal amount of 5.125% senior unsecured notes due 2035. The notes will be guaranteed by CubeSmart and are expected to be used to repay outstanding indebtedness under the company's unsecured revolving credit facility and for working capital and other general corporate purposes. The offering is expected to close on August 20, 2025, subject to customary closing conditions.

Key Takeaways:

  • CubeSmart priced an offering of $450 million aggregate principal amount of 5.125% senior unsecured notes due 2035, with a yield to maturity of 5.295%.
  • The notes were priced at 98.656% of the principal amount, with CubeSmart guaranteeing the notes.
  • The operating partnership expects to use the net proceeds from this offering to repay outstanding indebtedness under its unsecured revolving credit facility and for working capital and other general corporate purposes.
  • The offering is expected to close on August 20, 2025, subject to customary closing conditions.
  • Wells Fargo Securities, BofA Securities, and PNC Capital Markets LLC are acting as joint book-running managers for the offering.
  • Regions Securities LLC and US Bancorp are acting as senior co-managers for the offering.
  • Barclays, BMO Capital Markets, Citizens, JMP Securities, LLC, Goldman Sachs & Co. LLC, and Truist Securities are acting as co-managers for the offering.
  • This offering will be made under CubeSmart's existing automatic shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 3, 2023.
  • The prospectus supplement related to this public offering and accompanying prospectus will be filed with the SEC.
  • The Company's self-storage properties cover 1,532 properties across the United States and are designed to provide affordable, easily accessible, and climate-controlled storage space for residential and commercial customers.

Statistics:

  • $450 million aggregate principal amount of 5.125% senior unsecured notes due 2035 offered.
  • Yield to maturity of 5.295%.
  • Notes priced at 98.656% of the principal amount.
  • CubeSmart guarantees the notes.
  • Operating partnership expects to use net proceeds from the offering to repay outstanding debt, $450 million.
  • 98 properties acquired in 2024, as compared to 85 in 2023.
  • Portfolio occupancy of 94.7% as of June 30, 2024.
  • Daily same-store revenue increased by 3.8% compared to Q2 2023.

Sources:

  • GlobeNewswire
  • CubeSmart's press release dated August 2025
  • CubeSmart's Annual Report on Form 10-K for the year ended December 31, 2024
  • CubeSmart's existing automatic shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 3, 2023