CubeSmart (NYSE:CUBE) to Issue Dividend Increase – $0.52 Per Share

CubeSmart (NYSE:CUBE) declared a quarterly dividend on Tuesday, December 17th,Wall Street Journal reports. Shareholders of record on Thursday, January 2nd will be given a dividend of 0.52 per share by the real estate investment trust on Thursday, January 16th. This represents a $2.08 annualized dividend and a yield of 4.80%. The ex-dividend date of this dividend is Thursday, January 2nd. This is a positive change from CubeSmart’s previous quarterly dividend of $0.51.

CubeSmart has raised its dividend by an average of 14.2% per year over the last three years and has raised its dividend every year for the last 14 years. CubeSmart has a dividend payout ratio of 115.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect CubeSmart to earn $2.70 per share next year, which means the company should continue to be able to cover its $2.04 annual dividend with an expected future payout ratio of 75.6%.

CubeSmart Stock Performance

Shares of CUBE stock opened at $43.31 on Thursday. CubeSmart has a 12-month low of $39.80 and a 12-month high of $55.14. The business’s fifty day simple moving average is $48.33 and its 200-day simple moving average is $48.48. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 1.02. The company has a market cap of $9.79 billion, a PE ratio of 24.47, a PEG ratio of 13.00 and a beta of 0.84.

CubeSmart (NYSE:CUBE) last posted its quarterly earnings data on Thursday, October 31st. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.24). The company had revenue of $270.90 million for the quarter, compared to analyst estimates of $267.49 million. CubeSmart had a net margin of 37.79% and a return on equity of 14.33%. The business’s revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.68 EPS. Analysts expect that CubeSmart will post 2.63 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on CUBE shares. Scotiabank cut their price objective on shares of CubeSmart from $53.00 to $52.00 and set a “sector outperform” rating on the stock in a research note on Monday, November 25th. Evercore ISI lifted their price objective on CubeSmart from $52.00 to $53.00 and gave the company an “in-line” rating in a research note on Monday, September 16th. Jefferies Financial Group upped their target price on CubeSmart from $53.00 to $62.00 and gave the stock a “buy” rating in a research note on Wednesday, September 18th. Barclays reduced their price target on CubeSmart from $55.00 to $54.00 and set an “equal weight” rating for the company in a research report on Monday, October 28th. Finally, Royal Bank of Canada cut their target price on shares of CubeSmart from $56.00 to $53.00 and set an “outperform” rating for the company in a report on Monday, November 4th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $51.36.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.