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

CubeSmart (NYSE:CUBE) announced a quarterly dividend on Tuesday, December 17th,Wall Street Journal reports. Investors 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 dividend on an annualized basis and a dividend yield of 4.57%. The ex-dividend date of this dividend is Thursday, January 2nd. This is an increase from CubeSmart’s previous quarterly dividend of $0.51.

CubeSmart has increased its dividend payment by an average of 14.2% per year over the last three years and has increased its dividend annually for the last 14 consecutive 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. 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 Trading Down 0.8 %

NYSE:CUBE opened at $45.54 on Wednesday. The stock has a market capitalization of $10.30 billion, a price-to-earnings ratio of 25.73, a PEG ratio of 13.00 and a beta of 0.84. CubeSmart has a 1 year low of $39.80 and a 1 year high of $55.14. The stock has a fifty day moving average price of $48.47 and a two-hundred day moving average price of $48.51. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.20 and a current ratio of 0.20.

CubeSmart (NYSE:CUBE) last announced its quarterly earnings results on Thursday, October 31st. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.24). The company had revenue of $270.90 million during the quarter, compared to analysts’ expectations of $267.49 million. CubeSmart had a net margin of 37.79% and a return on equity of 14.33%. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.68 EPS. As a group, sell-side analysts anticipate that CubeSmart will post 2.63 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Wells Fargo & Company upped their price target on CubeSmart from $48.00 to $50.00 and gave the stock an “equal weight” rating in a report on Monday, October 21st. UBS Group cut CubeSmart from a “buy” rating to a “neutral” rating and raised their price target for the company from $53.00 to $54.00 in a research report on Friday, September 13th. Barclays decreased their price objective on shares of CubeSmart from $55.00 to $54.00 and set an “equal weight” rating on the stock in a research report on Monday, October 28th. Scotiabank dropped their target price on shares of CubeSmart from $53.00 to $52.00 and set a “sector outperform” rating for the company in a report on Monday, November 25th. Finally, Royal Bank of Canada lowered their price target on shares of CubeSmart from $56.00 to $53.00 and set an “outperform” rating on the stock in a research report on Monday, November 4th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target 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.