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CubeSmart (NYSE:CUBE) operates as a self-managed and self-administered real estate investment trust (REIT). As of March 31, 2024, it owned (or partially owned and consolidated) self-storage properties in the District of Columbia and 24 states throughout the United States.
It is set to report its Q4 2024 earnings on Feb. 27, 2025. Wall Street analysts expect the company to post an EPS of $0.69, down from $0.70 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $266.45 million, up from $265.13 million in the previous year.
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The company's stock traded at approximately $21.64 per share 10 years ago. If you had invested $10,000, you could have bought roughly 462 shares. Currently, shares trade at $46.64, meaning your investment's value could have grown to $21,553 from stock price appreciation alone. However, CubeSmart also paid dividends during these 10 years.
CubeSmart's dividend yield is currently 4.37%. Over the last 10 years, it has paid about $13.44 in dividends per share, which means you could have made $6,210 from dividends alone.
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Summing up $21,553 and $6,210, we end up with the final value of your investment, which is $27,763. This is how much you could have made if you had invested $10,000 in CubeSmart stock 10 years ago. This means a total return of 177.63%. However, this figure is significantly less than the S&P 500 total return for the same period, which was 245.05%.
CubeSmart has a consensus rating of "Neutral" and a price target of $49.5 based on the ratings of 17 analysts. The price target implies more than a 6% upside from the current stock price. Check out this article by Benzinga for nine analysts' insights on CubeSmart.
On Oct. 31, the company announced its Q3 2024 earnings, posting an FFO of $0.67, in line with expectations and revenues of $270.89 million, beating the consensus estimate of $265.272 million, as reported by Benzinga.
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"The third quarter saw a continuation of trends as we remain in a competitive environment for new customer rental rates while the existing customer remains very resilient," commented President and Chief Executive Officer Christopher P. Marr.
The company estimates that its fully diluted earnings per share for 2024 will be between $1.72 and $1.76 and that its fully diluted FFO per share, as adjusted, for 2024 will be between $2.62 and $2.66.
Given just a 6% expected upside potential, growth-focused investors may not find CubeSmart stock attractive. Conversely, the stock can be a good option for income-focused investors, who can benefit from the company's solid dividend yield of 4.37% and consistent hikes. CubeSmart has raised its dividend consecutively for the last 13 years.
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Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio.
In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.
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This article If You Invested $10,000 In CubeSmart Stock 10 Years Ago, How Much Would You Have Now? originally appeared on Benzinga.com
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