Chris Marr, president and CEO of CubeSmart L.P. (NYSE: CUBE), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.
Marr discussed the company’s recent $250 million debt offering.
“We definitely got lucky with the timing,” Marr said. With a 200 basis point spread and a 4 percent coupon, the offering provided an attractive cost of capital, according to Marr. Proceeds from the offering will be used to fund external growth, both in terms of acquisitions of stabilized assets and the CubeSmart development pipeline, he said.
Turning to industry fundamentals, “it’s difficult to come up with a new adjective other than fantastic,” Marr observed. He noted that robust customer demand and limited new supply are creating a “tailwind” for the industry at this time.
Marr also commented on the growing gap between large and small operators in the self-storage sector.
“The gap is continuing to widen, from a technical perspective and customer service perspective. The larger operators continue to take market share from the smaller folks,” Marr said.