Investing in CubeSmart REIT for Steady Returns

Investing in CubeSmart REIT can provide a stable source of income through its dividend payments. CubeSmart REIT has a history of increasing its dividend payments annually, with a 10-year average annual dividend growth rate of 7.1%.

The company's focus on self-storage facilities provides a relatively stable and recession-resistant income stream. This is because people will always need storage space, regardless of economic conditions.

CubeSmart REIT's portfolio consists of over 1,200 storage facilities across the US, with a total of over 700,000 storage units. This extensive portfolio provides a diversified revenue stream and helps to mitigate risks associated with individual property performance.

Investors can expect to receive a dividend yield of around 4.5% per year, based on the company's current dividend payment and stock price.

CubeSmart's financial performance has been impressive, with revenue increasing by 4.16% in 2023 to $1.05 billion, and earnings jumping by 41.03% to $410.76 million.

The company has reported higher revenues for four straight years, with a 69% increase from $597.9 million in 2018 to a record-high $1.0 billion in 2022.

Here's a breakdown of CubeSmart's revenue growth over the years:

Analysts expect the company to report earnings of $1.76 per diluted share for full-year 2023, followed by $1.85 per diluted share for 2024.

CubeSmart has consistently churned out positive free cash flow (FCF), which is a positive sign, considering the company's ability to pay out dividends.

The company's free cash flow has been steadily increasing, from $285.4 million in 2018 to $612.9 million in 2022.

CubeSmart's dividend payout ratio of 110.5% isn't unusual for a REIT, and the company's expected earnings over the next two years suggest that dividends will likely continue rising.

The company's current quarterly dividend of $0.49 per share translates to a yield of 5.12%, which is higher than its five-year average dividend yield of 3.8%.

Public Storage and CubeSmart are both strong contenders for investment, but let's take a closer look at CubeSmart. With a Value Score of 23, Growth Score of 91, and Estimate Revisions Score of 20, CubeSmart's grades are impressive.

CubeSmart's dividend history is also noteworthy, with 19 consecutive years of paying dividends and a 13-year streak of dividend growth. The company's 2023 annualized dividend of $1.96 per share is up 13.9% from its 2022 annualized dividend of $1.72 per share.

Here's a quick comparison of CubeSmart's growth scores with Public Storage:

Both CubeSmart and Public Storage have very strong growth scores, but it's essential to consider your individual needs and risk tolerance before making an investment decision.

Returns Distribution Density is a crucial aspect of investment analysis. It helps us understand the potential risks and rewards associated with a particular investment. CubeSmart's Returns Distribution Density is a great example of this. According to the data, the Mean Return is -0.31, indicating a slight decline in value.

The Value At Risk is -3.12, which means there's a possibility of a significant decline in value. However, it's essential to note that this is just one aspect of the Returns Distribution Density. The Potential Upside is 2.21, showing that there's still room for growth.

To better understand CubeSmart's Returns Distribution Density, let's take a look at the Standard Deviation, which is 1.48. This indicates a moderate level of volatility, which can be beneficial for investors who are looking for opportunities to buy low and sell high.

Overall, CubeSmart's Returns Distribution Density suggests that while there are potential risks involved, there are also opportunities for growth and returns.

Value Grades are a crucial aspect of stock evaluation. AAII's A+ Investor provides a Value Grade for each stock, which is derived from a stock's Value Score. The Value Score is the percentile rank of the average of the percentile ranks of six key valuation ratios.

To determine a stock's Value Grade, AAII considers the following six ratios: price-to-sales, price-earnings, enterprise-value-to-EBITDA, shareholder yield, price-to-book-value, and price-to-free-cash-flow. A stock must have a valid ratio and ranking for at least two of these ratios to receive a Value Score.

Here's a breakdown of the Value Grades:

Public Storage has a Value Score of 17, which falls into the Ultra Expensive category. CubeSmart has a Value Score of 23, which is considered Expensive. Keep in mind that a Value Grade is just one aspect of stock evaluation, and investors should consider multiple factors when making investment decisions.

Public Storage and CubeSmart are two notable players in the self-storage industry, with strong growth prospects. Both companies have received A grades for their growth, indicating very strong growth scores of 91.

These growth scores are based on a comprehensive evaluation of three key metrics: consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations. The growth scores are then ranked against the entire stock universe to determine the final grade.

Here's a comparison of the growth scores of Public Storage and CubeSmart:

Urbanization is driving the growth of the self-storage industry, and CubeSmart is well-positioned to take advantage of this trend.

CubeSmart's strong position in the industry is largely due to its ability to adapt to changing consumer behaviors, particularly the rise of e-commerce.

The company's focus on urban areas has proven to be a key factor in its success, as more and more people move to cities and require convenient storage solutions.

CubeSmart's growth score of 91, which is considered very strong, is a testament to its ability to capitalize on these trends.

Here's a breakdown of the growth scores for Public Storage and CubeSmart:

CubeSmart operates in a competitive self-storage industry, with several notable players vying for market share.

National Storage Affiliates Trust is a major competitor of CubeSmart, offering similar storage solutions to customers across the US.

Extra Space Storage is another prominent competitor, boasting a large network of facilities and a strong online presence.

Public Storage is a well-established brand with a long history of providing storage services, making it a formidable competitor in the industry.

Public Storage and CubeSmart have a number of grades that can help you make a more informed investment decision.

The Value Score for Public Storage is 17, while CubeSmart's Value Score is 23, indicating that CubeSmart may be a more valuable investment option.

The Growth Score for both Public Storage and CubeSmart is 91, suggesting that they have similar growth potential.

In addition to Value and Growth, A+ Investor also provides grades for Momentum and Quality.

Momentum grades can help you identify stocks that are experiencing anomalously high rates of return.

Public Storage and CubeSmart have a number of key metrics that are used to calculate their Quality Grade, including return on assets (ROA), return on invested capital (ROIC), and gross profit relative to assets.

By joining A+ Investor, you can see whether Public Storage and CubeSmart pass any of the 60+ stock screens that have outperformed the market since their creation.