CubeSmart (NYSE:CUBE) Announces Dividend Increase - $0.52 Per Share

CubeSmart (NYSE:CUBE - Get Free Report) declared 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 annualized dividend and a dividend yield of 4.57%. The ex-dividend date is Thursday, January 2nd. This is a boost from CubeSmart's previous quarterly dividend of $0.51.

CubeSmart has increased its dividend by an average of 14.2% annually over the last three years and has raised its dividend annually for the last 14 consecutive years. CubeSmart has a 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 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

CUBE traded down $0.35 on Tuesday, reaching $45.54. The stock had a trading volume of 1,092,061 shares, compared to its average volume of 1,346,907. The business's 50-day moving average price is $48.47 and its two-hundred day moving average price is $48.51. The company has a market cap of $10.30 billion, a P/E ratio of 25.73, a price-to-earnings-growth ratio of 13.00 and a beta of 0.84. CubeSmart has a 12-month low of $39.80 and a 12-month high of $55.14. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 1.02.

CubeSmart (NYSE:CUBE - Get Free Report) last announced its earnings results on Thursday, October 31st. The real estate investment trust reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.24). CubeSmart had a return on equity of 14.33% and a net margin of 37.79%. The business had revenue of $270.90 million for the quarter, compared to analyst estimates of $267.49 million. During the same period in the previous year, the company earned $0.68 earnings per share. The company's quarterly revenue was up 1.1% compared to the same quarter last year. Sell-side analysts forecast that CubeSmart will post 2.63 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CUBE. Scotiabank reduced their target price on CubeSmart from $53.00 to $52.00 and set a "sector outperform" rating for the company in a report on Monday, November 25th. Evercore ISI increased 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. Barclays lowered their target price on shares of CubeSmart from $55.00 to $54.00 and set an "equal weight" rating on the stock in a research note on Monday, October 28th. UBS Group lowered shares of CubeSmart from a "buy" rating to a "neutral" rating and upped their target price for the stock from $53.00 to $54.00 in a report on Friday, September 13th. Finally, Royal Bank of Canada decreased their price target on shares of CubeSmart from $56.00 to $53.00 and set an "outperform" rating on the stock in a research note on Monday, November 4th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $51.36.

CubeSmart Company Profile

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.