Self-storage Upgrade CUBE to OW, downgrade PSA to EW

Research evidence excerpt

Self-storage Upgrade CUBE to OW, downgrade PSA to EW

Equity Research

10 July 2026

Self-storage

Upgrade CUBE to OW, downgrade

PSA to EW

Our ratings changes are primarily based on relative valuation. U.S. REITs

Given YTD performance and current P/FFO multiples, we see NEUTRAL Unchanged

greater upside for CUBE than for PSA. We also remain OW- U.S. REITs

Brendan Lynch, CFArated on EXR.

+1 212 526 9428

brendan.lynch@barclays.com

BCI, US

Annabelle AyerOur view

+1 212 526 7387

Self-storage KPIs have begun a bottoming process which we anticipate will continue over the annabelle.ayer@barclays.com

next several years. Waning new supply is supportive of occupancy and pricing gains, a return to BCI, US

healthier SSNOI growth, and ultimately stronger FFOps growth. All industry participants should

Eileen Gao

benefit from these trends, but progress will likely be gradual. We are four years removed from +1 212 526 7836

the industry's peak and it is only now that SSRev is beginning to inflect. Absent a drop in eileen.gao@barclays.com

mortgage rates to spur housing turnover (which we consider unlikely), the recovery will likely BCI, US

playout equally slowly.

CubeSmart (CUBE) - Overweight, $46 price target (16% upside)

• Thesis: We upgrade CUBE to Overweight from Equal Weight after relative underperformance

YTD (+11% vs. PSA +24% and the RMZ +16%). Given its urban skew, CUBE's assets generate

superior pricing power, which we anticipate will continue as the market recovers. Further,

CUBE is providing a structural need for clients rather than a transitory solution, resulting in a

higher quality tenant base (low-teens churn per quarter vs. EXR and PSA's mid-teens). We

anticipate CUBE will remain disciplined in its capital deployment via select acquisitions and