CubeSmart (NYSE:CUBE), a $9.4 billion real estate investment trust currently trading at $41.36, announced today that its Chief Operating Officer, Joel D. Keaton, will retire effective April 30, 2025. According to InvestingPro analysis, the company appears to be trading above its Fair Value. Following his retirement, Keaton has agreed to serve as a non-employee consultant to the company for up to one year.
The agreement between Keaton and CubeSmart stipulates that he will provide consulting services through April 30, 2026, or an earlier date if mutually agreed upon. Keaton's consultancy will focus on transition services, special research projects, and strategic planning as directed by CubeSmart's CEO.
For his consulting role, Keaton will receive $100,000 monthly from May 1, 2025, through December 31, 2025, and then $50,000 monthly for the remainder of the term. Additionally, he has committed to non-competition and non-solicitation covenants during his consultancy.
Details of this agreement are expected to be included in CubeSmart's Annual Report on Form 10-K for the period ending December 31, 2024. This announcement is based on a press release statement.
In other recent news, CubeSmart, the self-administered and self-managed real estate investment trust, announced significant leadership changes. Joel Keaton, the company's Chief Operating Officer, is set to retire in 2025, with Amy Cross and Guy Middlebrooks stepping up to fill executive roles. On the financial front, despite a slight shortfall in Q3 2024 revenue, gains in other income have offset this, and the company's full-year Funds From Operations (FFO) per share guidance remains unchanged.
CubeSmart has also been the subject of recent analyst activity. The company's stock rating was downgraded from "Buy" to "Hold" by Jefferies due to weaker-than-expected move-in rates in Q4. Concurrently, RBC Capital Markets reduced its price target on CubeSmart but maintained its Outperform rating.
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