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CubeSmart (CUBE) is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United States.

The company's real estate portfolio is composed of buildings with numerous enclosed storage areas for both residential and commercial customers to rent mainly on a month-by-month basis.

Most of CubeSmart's facilities are located in Florida, Texas, California, New York, and Illinois. Cumulatively, these states account for both the majority of the square footage in the company's real estate portfolio and the majority of its revenue.

CubeSmart derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.

CubeSmart began paying variable quarterly dividends in January, 2005 and is headquartered in Malverne PA.

Three key data points gauge CubeSmart or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CUBE Price

Over the past year, CubeSmart  share price fell about 7.5% from $46.52 to $43.02 as of Monday’s market close.

If CUBE trades in the range of $33.00 to $48.00 this next year, its recent $43.02 share price might rise to $47.00 by next year. Of course, CUBE’s price could drop about the same $3.98 estimated amount, or more.

My annual upside estimate of $3.98 however, nearly the same as the median of one year price targets from 12 analysts tracking CUBE for brokers.

CUBE Dividend

CubeSmart has declared variable quarterly  dividends since January, 2005. CUBE’s most recent Q dividend of $0.51 was declared December 7  to shareholders of record December 29th. The annual payout totalled $2.04 and the latest quarterly payment was made January 16th.

A forward looking $2.04 annual dividend yields 4.74% at Monday’s $43.02 share price.

CUBE Returns

To put it all together, add the estimated annual dividend of $2.04 to the estimated price upside of $3.98 to find a $6.02 gross gain.

At Monday’s $43.02 share price, a little over $1000 would buy 23 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.435 per share.

Subtracting that likely $0.435 brokerage cost from the $6.02 gross gain produces a net gain of $5.585 X 23 shares = $128.46 for a 12.85% estimated net gain.

You might choose to pounce on CubeSmart It is a 9 year-old Pennsylvania-based Personal Storage Real Estate Investment Trust.

Furthermore, the estimated $47.40 of annual dividend income from $1k invested is about 0.102 times greater than CUBE’s recent $43.02 single share price.

The exact track of CUBE’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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