CubeSmart Just Raised Its Dividend. Should You Buy CUBE Stock Here?
CubeSmart, one of the largest self-storage REITs in the U.S., has faced a challenging year. The company’s stock has dropped 17% over the past 12 months and 16% since January. Despite this, analysts remain divided on its future prospects.
In the third quarter of 2025, CubeSmart reported mixed financial results. Total revenues climbed 5.2% compared to the same period last year, yet same-store net operating income (NOI) fell by 1.5%. Earnings per share (EPS) dropped to $0.36, while adjusted funds from operations (FFO) per share declined by 3%.
The company recently raised its quarterly dividend by 1.9% to $0.53 per share. This marks the 16th straight year of dividend increases, keeping the yield at 5.70%—above the sector median. However, its high payout ratio of 80.8% leaves little room for error if business conditions weaken.
Analysts have differing views on CubeSmart’s outlook. KeyBanc downgraded the stock from 'Overweight' to 'Sector Weight', pointing to concerns over growth and industry-wide challenges. Meanwhile, RBC Capital kept an 'Outperform' rating with a $46 price target, calling it their 'top idea for 2026'. Truist Securities maintained a 'Buy' recommendation, setting a $42 target and forecasting a 20.8% total return.
Projections suggest FFO per share will dip 1.5% to $2.59 in fiscal 2025 before rising 1.9% to $2.64 in 2026. The company operates over 1,500 self-storage properties nationwide, solidifying its position as a major player in the sector.
CubeSmart’s stock performance has lagged behind broader market benchmarks, yet its long history of dividend growth remains a key feature. With analysts split on its future, investors will be watching whether the company can turn its financial momentum around in the coming year.
