EXR - CubeSmart: Why Its Best Days Could Be Over
2024-03-09 09:52:21 ET
Summary
- Self-storage industry growth has slowed down because of people moving to suburbs and having more storage space at home.
- This lead to the industry being stagnant and not delivering many profits.
- Financially, CubeSmart is stable; however, there is not much growth predicted in the near future.
- I present my analysis which leads me to a hold rating.
Dear readers,
Today I want to cover a self-storage REIT CubeSmart (CUBE). I last wrote about the company in March 2023 using their Q4 2022 results and issued a hold rating because I thought it was overvalued based on a relative multiple, which was almost the same as the historical average, and an implied cap rate of only 5.4%. Today I will assess the latest Q4 2023 results and see how the company has been performing....
CubeSmart: Why Its Best Days Could Be Over