CubeSmart (CUBE) has reported a 27.67 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $26.85 million, or $0.13 a share in the quarter, compared with $37.12 million, or $0.20 a share for the same period last year.     

Revenue from real estate activities during the quarter increased 15.27 percent or $17.55 million to $132.55 million.

Cost of revenue rose 10.41 percent or $3.98 million during the quarter to $42.22 million. Gross margin for the quarter expanded 140 basis points over the previous year period to 68.15 percent.

Total expenses were $90.85 million for the quarter, up 9.20 percent or $7.65 million from year-ago period. Operating margin for the quarter expanded 381 basis points over the previous year period to 31.46 percent.

Operating income for the quarter was $41.70 million, compared with $31.80 million in the previous year period. However, the adjusted operating income for the quarter stood at $81.53 million compared to $75.43 million in the prior year period. At the same time, adjusted operating margin contracted 409 basis points in the quarter to 61.51 percent from 65.59 percent in the last year period.

For financial year 2017, the company projects diluted earnings per share to be in the range of $0.70 to $0.75.

For the first-quarter 2017, The company projects diluted earnings per share to be in the range of $0.13 to $0.14.

Income from operating leases during the quarter rose 14.66 percent or $14.92 million to $116.65 million.

Income from management fees during the quarter jumped 67.25 percent or $1.23 million to $3.05 million. Revenue from other real estate activities during the quarter was $12.84 million, up 12.31 percent or $1.41 million from year-ago period.

"Our strong 2016 performance marks the fourth consecutive year of FFO growth exceeding 15% and same-store NOI growth exceeding 9.0%, demonstrating the strength of our operating platform, the dedication and daily focus of our teammates across the country, and the benefit of owning one of the highest quality portfolios in the industry," commented president and chief executive officer Christopher P. Marr. "Demand for storage continues to be steady and broad-based and the impact from new supply is in line with our expectations. Looking forward to 2017, we remain focused on executing our internal and external growth strategies and generating attractive risk-adjusted returns for shareholders by maintaining a disciplined approach to capital allocation."

Total assets grew 11.95 percent or $370.86 million to $3,475.03 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,759.38 million as on Dec. 31, 2016, up 26.28 percent or $366.20 million from year-ago.

Return on assets moved down 42 basis points to 1.16 percent in the quarter. At the same time, return on equity moved down 76 basis points to 1.41 percent in the quarter.