CubeSmart (NYSE: CUBE) has earned an upgrade from BofA Securities, shifting from Neutral to Buy with a new price target of \$50. This move comes on the heels of CubeSmart’s standout performance in densely populated urban centers—particularly its dominant position in New York City, which represents 16.5% of its portfolio. While overall same-store revenue dipped slightly by 0.4% in Q1 2025, the New York metropolitan area bucked the trend with a 2.8% gain, reinforcing confidence in the company’s strategic focus.
đź“Š Another contributing factor to the upgrade is CubeSmart’s thoughtful 2025 guidance, which was initially conservative but has since been revised upward, indicating management’s confidence in its earnings trajectory. The company also boasts one of the lowest leverage ratios in its peer group, giving it ample flexibility for external growth. Supplementing this bullish view is recent BofA data showing a 2.4% year-over-year increase in consumer spending within CubeSmart’s core markets—well ahead of the 0.7% growth seen a year ago.
💰 CubeSmart’s dividend profile is another highlight. The company has reliably paid dividends for 21 consecutive years and recently raised its quarterly payout by 2.0%, marking its 15th straight year of dividend growth. With a current yield of approximately 4.85% and a payout ratio of 75%, CubeSmart offers a healthy mix of income stability and growth potential. Its commitment to shareholder returns makes it particularly attractive for dividend-focused investors looking for dependable yield in the REIT space.
Overall, CubeSmart’s urban market momentum, strong balance sheet, and disciplined dividend growth strategy paint a compelling picture for both growth and income-focused portfolios.