Long Pond Capital LP Invests $47.36 Million in CubeSmart $CUBE

Key Points

• Long Pond Capital LP invested approximately $47.36 million in CubeSmart, acquiring over 1.1 million shares, which constitutes about 3.1% of its portfolio.
• CubeSmart reported a 0.65 earnings per share for the last quarter, surpassing estimates, with revenue up 6% year-over-year, leading to a dollar dividend of $0.52 announced for October.
• The firm has received mixed ratings from analysts, with six rating it as a "Buy" and a consensus target price of $46.93, despite some price target adjustments in recent research reports.

Long Pond Capital LP purchased a new stake in shares of CubeSmart (NYSE:CUBE - Free Report) in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 1,108,821 shares of the real estate investment trust's stock, valued at approximately $47,358,000. CubeSmart comprises approximately 3.1% of Long Pond Capital LP's investment portfolio, making the stock its 15th largest holding. Long Pond Capital LP owned 0.49% of CubeSmart at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of CUBE. Mariner LLC raised its position in CubeSmart by 2.5% during the 4th quarter. Mariner LLC now owns 13,653 shares of the real estate investment trust's stock valued at $585,000 after purchasing an additional 328 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of CubeSmart by 176.0% during the 4th quarter. Tower Research Capital LLC TRC now owns 19,283 shares of the real estate investment trust's stock worth $826,000 after acquiring an additional 12,296 shares during the period. Hsbc Holdings PLC grew its holdings in shares of CubeSmart by 9.6% during the 4th quarter. Hsbc Holdings PLC now owns 360,492 shares of the real estate investment trust's stock worth $15,431,000 after acquiring an additional 31,506 shares during the period. Adage Capital Partners GP L.L.C. purchased a new position in shares of CubeSmart during the 4th quarter worth approximately $4,285,000. Finally, Two Sigma Securities LLC purchased a new position in shares of CubeSmart during the 4th quarter worth approximately $282,000. Institutional investors own 97.61% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on CUBE shares. Bank of America upgraded CubeSmart from a "neutral" rating to a "buy" rating and upped their target price for the stock from $44.00 to $50.00 in a report on Tuesday, May 13th. Scotiabank upped their target price on CubeSmart from $40.00 to $45.00 and gave the stock a "sector perform" rating in a report on Monday, May 12th. Wolfe Research started coverage on CubeSmart in a report on Monday, May 19th. They set an "outperform" rating and a $48.00 target price on the stock. BNP Paribas Exane started coverage on CubeSmart in a report on Tuesday, June 24th. They set a "neutral" rating and a $46.00 target price on the stock. Finally, BMO Capital Markets upgraded CubeSmart from a "market perform" rating to an "outperform" rating and upped their target price for the stock from $48.00 to $49.00 in a report on Friday, June 20th. Six investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, CubeSmart currently has an average rating of "Hold" and a consensus target price of $46.69.

CubeSmart Stock Down 0.1%

CUBE stock traded down $0.06 during midday trading on Thursday, hitting $40.66. The company's stock had a trading volume of 1,439,133 shares, compared to its average volume of 1,781,714. The company has a market cap of $9.27 billion, a PE ratio of 24.79, a P/E/G ratio of 9.06 and a beta of 0.94. CubeSmart has a 12 month low of $34.24 and a 12 month high of $55.14. The company has a current ratio of 0.06, a quick ratio of 0.06 and a debt-to-equity ratio of 1.18. The firm's 50-day moving average is $41.09 and its 200-day moving average is $41.33.

CubeSmart (NYSE:CUBE - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The real estate investment trust reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.02. The firm had revenue of $282.30 million for the quarter, compared to analysts' expectations of $275.71 million. CubeSmart had a return on equity of 13.12% and a net margin of 35.44%.The company's revenue was up 6.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.64 EPS. CubeSmart has set its Q3 2025 guidance at 0.640-0.660 EPS. FY 2025 guidance at 2.540-2.600 EPS. On average, equities research analysts forecast that CubeSmart will post 2.64 earnings per share for the current fiscal year.

CubeSmart Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be issued a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a dividend yield of 5.1%. The ex-dividend date of this dividend is Wednesday, October 1st. CubeSmart's dividend payout ratio is presently 126.83%.

CubeSmart Company Profile

CubeSmart is a self-administered and self-managed real estate investment trust. 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. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.