LONDON, UK / ACCESSWIRE / December 28, 2017 / Active-Investors has a free review on CubeSmart (NYSE: CUBE) following the Company's announcement that it will begin trading ex-dividend on December 29, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on December 28, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on CUBE:
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On December 14, 2017, CubeSmart announced that its Board of Trustees declared a quarterly dividend of $0.30 per common share for the period ending December 31, 2017. The dividend is payable on January 16, 2018, to common shareholders of record on January 02, 2018. The quarterly distribution represents an annualized dividend rate of $1.20 per share, a $0.12 per share increase from the previous annual rate of $1.08 per share.
CubeSmart's indicated dividend represents a yield of 4.21%, which is substantially above the average dividend yield of 3.78% for the financial sector. The Company has raised dividend for five years in a row.
CubeSmart has a dividend payout ratio of 76.4%, which indicates that the Company distributes approximately $0.76 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, CubeSmart is forecasted to report earnings of $0.78 for the next year compared to the Company's annualized dividend of $1.20. One of the primary reasons for the difference between earnings and annualized dividend is that CubeSmart is a Real Estate Investment Trust (REIT), structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, CubeSmart's net income attributable to the Company's common shareholders was $0.21 per share for Q3 2017 compared to $0.13 for Q3 2016. CubeSmart's FFO per share, as adjusted, increased 10.5% to $0.42 for Q3 2017, compared to $0.38 for Q3 2016. The FFO indicates that the Company should be able to comfortably cover its dividend payout.
As of September 30, 2017, CubeSmart had cash and cash equivalents of $6.23 million compared to $2.97 million as on December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
CubeSmart is a self-administered and self-managed real estate investment trust. The Company owns or manages 931 self-storage properties across the United States. According to the 2017 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the US. 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.
Stock Performance Snapshot
December 27, 2017 - At Wednesday's closing bell, CubeSmart's stock was marginally up 0.52%, ending the trading session at $29.02.
Volume traded for the day: 767.80 thousand shares.
Stock performance in the last three-month – up 12.31%; previous six-month period – up 20.77%; past twelve-month period – up 10.30%; and year-to-date – up 8.40%
After yesterday's close, CubeSmart's market cap was at $5.23 billion.
Price to Earnings (P/E) ratio was at 44.51.
The stock has a dividend yield of 4.14%.
The stock is part of the Financial sector, categorized under the REIT - Industrial industry. This sector was up 0.1% at the end of the session.
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