Davis Selected Advisers Makes New Investment in CubeSmart $CUBE

Key Points

• Davis Selected Advisers opened a new position in CubeSmart, buying 90,930 shares in Q4 valued at about $3.28 million.
• CubeSmart slightly beat Q1 estimates (EPS $0.36 vs. $0.34; revenue $281.9M vs. $275.3M) but issued cautious Q2/FY2026 guidance, triggering mixed analyst reactions and a consensus "Hold" with an average price target near $43.57.
• The REIT pays a quarterly dividend of $0.53 (annualized $2.12, ~5.3% yield), but the payout ratio is elevated at roughly 146%, raising concerns about dividend sustainability.

Davis Selected Advisers purchased a new position in shares of CubeSmart (NYSE:CUBE - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 90,930 shares of the real estate investment trust's stock, valued at approximately $3,278,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Fifth Third Bancorp boosted its holdings in shares of CubeSmart by 16.9% during the 4th quarter. Fifth Third Bancorp now owns 2,319 shares of the real estate investment trust's stock worth $84,000 after buying an additional 335 shares in the last quarter. Mutual Advisors LLC boosted its holdings in shares of CubeSmart by 52.1% during the 4th quarter. Mutual Advisors LLC now owns 11,415 shares of the real estate investment trust's stock worth $412,000 after buying an additional 3,908 shares in the last quarter. New York State Teachers Retirement System lifted its holdings in shares of CubeSmart by 12.1% in the 4th quarter. New York State Teachers Retirement System now owns 169,105 shares of the real estate investment trust's stock worth $6,096,000 after purchasing an additional 18,308 shares in the last quarter. State of New Jersey Common Pension Fund D lifted its holdings in shares of CubeSmart by 1.7% in the 4th quarter. State of New Jersey Common Pension Fund D now owns 122,663 shares of the real estate investment trust's stock worth $4,422,000 after purchasing an additional 2,014 shares in the last quarter. Finally, AMG National Trust Bank lifted its holdings in shares of CubeSmart by 10.7% in the 4th quarter. AMG National Trust Bank now owns 44,810 shares of the real estate investment trust's stock worth $1,615,000 after purchasing an additional 4,323 shares in the last quarter. 97.61% of the stock is currently owned by institutional investors.

CubeSmart Price Performance

Shares of NYSE:CUBE opened at $40.14 on Friday. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 1.24. The stock's fifty day simple moving average is $38.84 and its two-hundred day simple moving average is $38.16. CubeSmart has a 1-year low of $35.09 and a 1-year high of $44.13. The stock has a market cap of $9.15 billion, a PE ratio of 27.68, a price-to-earnings-growth ratio of 6.39 and a beta of 1.11.

CubeSmart (NYSE:CUBE - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The real estate investment trust reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.02. CubeSmart had a return on equity of 11.70% and a net margin of 28.93%.The business had revenue of $281.93 million for the quarter, compared to analysts' expectations of $275.25 million. During the same period last year, the business earned $0.64 EPS. The business's revenue was up 3.3% on a year-over-year basis. CubeSmart has set its FY 2026 guidance at 2.520-2.600 EPS and its Q2 2026 guidance at 0.620-0.640 EPS. As a group, analysts forecast that CubeSmart will post 2.58 EPS for the current fiscal year.

CubeSmart Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a dividend of $0.53 per share. The ex-dividend date was Wednesday, April 1st. This represents a $2.12 annualized dividend and a yield of 5.3%. CubeSmart's dividend payout ratio (DPR) is 146.21%.

Key CubeSmart News

Here are the key news stories impacting CubeSmart this week:

• Positive Sentiment: Beat near-term estimates: Q1 EPS of $0.36 topped consensus ~$0.34 and revenue of $281.9M exceeded estimates; FFO/share of $0.63 slightly beat the Zacks consensus of $0.62. CubeSmart Reports First Quarter 2026 Results CubeSmart Surpasses Q1 FFO and Revenue Estimates
• Neutral Sentiment: Management commentary (earnings call) provided color on operations and the outlook; the transcript is available for detail on occupancy, pricing and capital deployment decisions that drove the guidance. CubeSmart Q1 2026 Earnings Call Transcript
• Negative Sentiment: Cautious forward guidance: Q2 2026 EPS guided to $0.620–$0.640 (consensus ~0.640) and FY2026 EPS to $2.520–$2.600 (street ~2.57). The guidance range and a slight year-over-year decline in FFO/EPS raise near‑term growth concerns. CubeSmart Earnings & Guidance Summary
• Negative Sentiment: Analysts are reworking valuations and price targets after the mixed print and guidance; coverage notes emphasize slower FFO growth and the need to monitor operating trends. How The CubeSmart Story Is Shifting As Analysts Rework Valuation Targets
• Negative Sentiment: Net income and some per‑share metrics are down year‑over‑year (FFO $0.63 vs $0.64 a year ago), underscoring the company’s slower growth trajectory despite the quarter’s beats. CubeSmart Posts Lower Q1 Earnings, Provides 2026 Outlook

Insiders Place Their Bets

In other CubeSmart news, insider Jeffrey P. Foster sold 23,148 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $41.02, for a total transaction of $949,530.96. Following the transaction, the insider directly owned 205,057 shares in the company, valued at approximately $8,411,438.14. This trade represents a 10.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.76% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CUBE. Wells Fargo & Company cut their target price on CubeSmart from $40.00 to $39.00 and set an "equal weight" rating on the stock in a report on Thursday, April 16th. Royal Bank Of Canada increased their target price on CubeSmart from $43.00 to $46.00 and gave the stock an "outperform" rating in a report on Monday, March 2nd. BNP Paribas Exane upgraded CubeSmart from a "neutral" rating to an "outperform" rating and set a $43.00 target price on the stock in a report on Wednesday, March 18th. Wall Street Zen upgraded CubeSmart from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Wolfe Research cut CubeSmart from an "outperform" rating to a "peer perform" rating in a report on Monday, January 26th. Six analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, CubeSmart presently has a consensus rating of "Hold" and an average price target of $43.57.

CubeSmart Profile

CubeSmart NYSE: CUBE is a publicly traded real estate investment trust (REIT) specializing in the ownership, operation and management of self-storage facilities across the United States. The company's portfolio comprises properties in primary and secondary markets, catering to both individual and business customers seeking flexible, short-term and long-term storage solutions. CubeSmart's facilities feature a range of unit sizes, climate-controlled options and advanced security features, supported by on-site managers and centralized customer service operations.

In addition to traditional self-storage units, CubeSmart offers specialty services such as vehicle and boat storage, retail sales of packing and moving supplies, and tenant insurance programs.

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