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Cubesmart (CUBE)
NYSE:CUBE
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Cubesmart
(NYSE:CUBE)
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Select Model
Rating:68Neutral
Price Target:
$39.00
â–²(8.64% Upside)
CubeSmart's overall stock score reflects strong financial performance and strategic growth, tempered by technical weakness and mixed earnings outlook. The company's robust dividend yield and improved guidance provide a positive outlook, but challenges in same-store revenue and market-specific difficulties weigh on the score.
Positive Factors
Strategic Growth
CubeSmart's strategic growth and milestones, including a 65% five-year total shareholder return, position it well for long-term success in the self-storage industry.
Cash Flow Management
Strong cash flow management ensures CubeSmart can support future investments and debt servicing, enhancing its financial stability and growth potential.
Third-Party Management Expansion
Expanding the third-party management platform increases CubeSmart's market presence and revenue streams, supporting long-term growth and diversification.
Negative Factors
Decline in Same-Store Revenues
Declining same-store revenues indicate challenges in maintaining growth in existing locations, potentially impacting overall revenue stability.
Negative Same-Store NOI Growth
Negative NOI growth suggests operational inefficiencies and cost pressures, which could hinder profitability if not addressed.
Challenging Sunbelt Markets
Challenges in Sunbelt markets due to supply issues and variable demand may limit growth opportunities and require strategic adjustments.
Cubesmart (CUBE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.23B
Dividend Yield5.69%
Average Volume (3M)1.99M
Price to Earnings (P/E)23.0
Beta (1Y)0.49
Revenue Growth4.19%
EPS Growth-12.19%
CountryUS
Employees3,104
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.36
Shares Outstanding228,035,930
10 Day Avg. Volume2,573,484
30 Day Avg. Volume1,985,646
Financial Highlights & Ratios
PEG Ratio-5.01
Price to Book (P/B)3.38
Price to Sales (P/S)9.10
P/FCF Ratio15.37
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue11.53
Enterprise Value/Gross Profit18.17
Enterprise Value/Ebitda17.97
Forecast
1Y Price Target
$43.40Price Target Upside20.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.48
Revenue Forecast (FY)$1.10B
Cubesmart Business Overview & Revenue Model
Company DescriptionCubeSmart 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 secure storage space for residential and commercial customers. According to the 2020 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
How the Company Makes MoneyCubeSmart generates revenue primarily through rental income from its self-storage facilities. The company charges customers for the use of storage units, with fees varying based on unit size, location, and additional services such as climate control. In addition to rental income, CubeSmart may earn revenue from ancillary services such as retail sales of packing supplies and insurance for stored items. The company's revenue model is also supported by its strategic partnerships with local businesses and online platforms that enhance its marketing reach and customer acquisition. Furthermore, CubeSmart's focus on operational efficiency and customer retention contributes to stable and growing revenue streams.
Cubesmart Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. CubeSmart is seeing some positive trends in move-in rates and financial management, but faces challenges with declining same-store revenue and NOI, alongside market-specific difficulties, particularly in the Sunbelt. The company is cautiously optimistic, with a strategy focused on gradual improvement and stability.Q3-2025 Updates
Positive Updates
Positive Move-in Rates
For the first time since Q1 2022, move-in rates in the same-store portfolio were positive year-over-year, indicating improving fundamentals.
Successful Financial Management
CubeSmart successfully issued $450 million in 10-year senior unsecured notes with a yield to maturity of 5.29%, marking their first market return in four years.
Third-Party Management Expansion
CubeSmart added 46 stores to its third-party management platform this quarter, bringing the total to 863 stores.
Guidance Increase
The company raised guidance with a $0.01 increase in FFO per share as adjusted and improved same-store NOI expectations, despite anticipating negative revenue growth in Q4.
Negative Updates
Decline in Same-Store Revenues
Same-store revenues declined by 1% compared to last year, with average occupancy down by 80 basis points to 89.9%.
Negative Same-Store NOI Growth
Negative 1% revenue growth combined with 0.3% expense growth resulted in a negative 1.5% same-store NOI growth for the quarter.
Challenging Sunbelt Markets
Sunbelt markets like Atlanta, Phoenix, and Charlotte are still finding their footing with ongoing supply challenges and variable demand.
Occupancy and Rate Balance Issues
Occupancy and rate balance varies by market, with some areas still struggling to achieve growth in both metrics simultaneously.
Company Guidance
During CubeSmart's Third Quarter 2025 Earnings Call, the company provided optimistic guidance, highlighting improvements in key metrics. The company reported an FFO per share as adjusted of $0.65 and noted a decline in same-store revenues by 1%, with average occupancy down 80 basis points to 89.9%. Despite a 1.5% decrease in same-store NOI growth, CubeSmart raised its full-year guidance expectations, including a $0.01 increase at the midpoint for FFO per share as adjusted. Same-store revenue growth guidance was also improved, with a revised midpoint for expense growth at 1.5% for the year. The company successfully issued $450 million of 10-year senior unsecured notes with a yield to maturity of 5.29%, marking its return to the market after four years. Looking forward, CubeSmart anticipates continued stabilization of operational metrics and improved footing heading into 2026, although it does not expect a rapid reacceleration.Cubesmart Financial Statement Overview
Summary
Cubesmart demonstrates strong financial health with solid profitability, efficient operations, and robust cash flow generation. While leverage is moderate, it remains within industry norms. The company should focus on maintaining its cost structure to support gross margins.Income Statement
Cubesmart's income statement shows strong profitability with a TTM net profit margin of 32.17% and a consistent revenue growth trend. However, the gross profit margin has decreased significantly in the TTM period compared to previous years, indicating potential cost pressures. The EBIT and EBITDA margins remain robust, reflecting efficient operations.75
Positive
Balance Sheet
The balance sheet reflects moderate leverage with a TTM debt-to-equity ratio of 1.28, which is typical for the REIT industry. Return on equity is healthy at 12.60%, indicating effective use of equity capital. However, the equity ratio suggests a balanced but cautious approach to asset financing.70
Positive
Cash Flow
Cubesmart's cash flow statement is strong, with a TTM free cash flow to net income ratio over 1, indicating excellent cash generation relative to profits. The operating cash flow to net income ratio is also high, showing robust cash flow management. Free cash flow growth is positive, supporting future investment and debt servicing.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.07B | 1.05B | 1.01B | 822.56M | 679.36M |
| Gross Profit | 703.10M | 748.48M | 755.55M | 716.36M | 570.46M | 472.62M |
| EBITDA | 711.02M | 688.82M | 710.88M | 661.74M | 522.65M | 414.30M |
| Net Income | 356.98M | 391.18M | 410.76M | 291.26M | 223.48M | 165.62M |
Balance Sheet | ||||||
| Total Assets | 6.76B | 6.39B | 6.23B | 6.33B | 6.55B | 4.78B |
| Cash, Cash Equivalents and Short-Term Investments | 108.39M | 71.56M | 6.53M | 6.06M | 11.14M | 3.59M |
| Total Debt | 3.49B | 3.05B | 2.99B | 3.06B | 3.21B | 2.43B |
| Total Liabilities | 3.90B | 3.44B | 3.34B | 3.43B | 3.55B | 2.69B |
| Stockholders Equity | 2.78B | 2.87B | 2.80B | 2.83B | 2.87B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 651.46M | 631.07M | 611.14M | 591.47M | 449.19M | 351.03M |
| Operating Cash Flow | 636.69M | 631.07M | 611.14M | 591.47M | 449.19M | 351.03M |
| Investing Cash Flow | -614.48M | -173.96M | -93.82M | -48.77M | -1.85B | -511.44M |
| Financing Cash Flow | 46.46M | -387.67M | -518.03M | -547.09M | 1.41B | 108.20M |
Cubesmart Technical Analysis
Negative
35.90
Price Trends
37.63
Negative
38.75
Negative
39.64
Negative
Market Momentum
-0.45
Negative
43.74
Neutral
25.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBE, the sentiment is Negative. The current price of 35.9 is below the 20-day moving average (MA) of 36.27, below the 50-day MA of 37.63, and below the 200-day MA of 39.64, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUBE.
Cubesmart Risk Analysis
Cubesmart disclosed 51 risk factors in its most recent earnings report. Cubesmart reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cubesmart Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $45.74B | 27.09 | 20.00% | 4.63% | 2.30% | -0.22% | |
69 Neutral | $1.43B | 12.03 | 6.49% | 13.07% | -11.22% | -24.64% | |
68 Neutral | $8.23B | 23.03 | 12.82% | 5.69% | 4.19% | -12.19% | |
67 Neutral | $985.51M | 10.95 | 20.14% | 4.39% | -4.99% | 10123.98% | |
66 Neutral | $28.98B | 29.25 | 6.86% | 5.01% | 3.38% | 17.16% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $3.75B | 45.32 | 6.89% | 8.28% | -4.98% | -65.45% |
* Real Estate Sector Average
CUBE
Cubesmart
35.90
-4.39
-10.90%
EXR
Extra Space Storage
130.79
-9.93
-7.06%
PSA
Public Storage
260.66
-23.19
-8.17%
NSA
National Storage Affiliates
27.92
-6.92
-19.86%
IIPR
Innovative Industrial Properties
50.88
-8.35
-14.10%
PLYM
Plymouth Industrial Reit
21.88
4.99
29.54%
Cubesmart Corporate Events
Business Operations and StrategyFinancial Disclosures
CubeSmart Highlights Strong December 2025 Performance
Positive
Dec 2, 2025
CubeSmart’s December 2025 investor presentation highlights its strong performance and strategic growth in the self-storage industry. The company has achieved significant milestones, including a 65% five-year total shareholder return and a 56% growth in funds from operations per share. With a disciplined investment strategy and a robust management team, CubeSmart is well-positioned to capitalize on industry dynamics and deliver long-term value to shareholders.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
CubeSmart Reports Q3 2025 Results and Expands Platform
Neutral
Oct 31, 2025
CubeSmart reported its third quarter 2025 results, highlighting stable performance in coastal and urban markets, while sunbelt properties faced challenges balancing rate and occupancy. The company reported a decrease in same-store net operating income and occupancy, with diluted earnings per share at $0.36. CubeSmart also issued $450 million in unsecured senior notes and expanded its third-party management platform by adding 46 stores. The company anticipates closing acquisitions in Arizona, Florida, and New Jersey in the fourth quarter of 2025, and has ongoing development projects in New York.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.