12:00 PM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price by $5 to $41, using forward P/FFO of 15.5x our 2024 FFO estimate, in line with self-storage REIT peers. We lower our 2024 FFO estimate by $0.04 to $2.64 and trim 2025 by $0.01 to $2.76. CUBE reports Q1 2024 FFO of $0.64 vs. $0.65, in line with consensus. Same-store NOI dropped 1% Y/Y as flat revenues were met with expenses that rose 5% Y/Y. Higher expenses were driven by a 45% increase in property insurance and 11% increase in "other," partially offset by a 15% decrease in advertising spend. Pricing power remains rather weak, with realized rent per occupied sq. ft. up just 1.3% Y/Y on average occupancy that fell 120 bps Y/Y to 90.2%. Management noted that customer length of stay has shown signs of potential normalization following the pandemic, a trend we will be closely monitoring due to the potential implications on existing customer rent increases that have been key given pressure on new street rates. CUBE acquired two properties for 20.2M during Q1. Shares currently yield 4.9%.