"For REITs like CubeSmart, cash flow matters far more than GAAP earnings. In fiscal 2024, the company generated $631.1 million in operating cash flow and paid out $461.8 million in dividends. That translates to a 73.1% payout ratio, leaving meaningful room for safety. Free cash flow tells an even stronger story. After subtracting $43.6 million in capital expenditures, CubeSmart generated $587.5 million in free cash flow, covering the dividend 1.27 times. That coverage has held steady, with 2023 showing 1.29x coverage."
"The balance sheet presents a more cautious picture. As of Q3 2025, CubeSmart carried $3.73 billion in total debt against $2.78 billion in equity, producing a debt-to-equity ratio of 1.34x. That ratio has climbed from 1.15x at the end of 2024, reflecting the company's recent $450 million unsecured note issuance. Interest coverage remains strong. Fiscal 2024 operating income of $483.1 million covered interest expense of $90.8 million by 5.32 times. That provides a solid cushion, though rising leverage and elevated interest rates bear watching."
CubeSmart operates a nationwide portfolio of self-storage facilities concentrated in high-barrier coastal and urban markets and paid a $0.53 quarterly dividend in January 2026, yielding 5.42%. Fiscal 2024 operating cash flow was $631.1 million versus $461.8 million in dividends, a 73.1% payout ratio. After $43.6 million of capital expenditures, free cash flow was $587.5 million, covering the dividend 1.27 times and remaining consistent with 2023. Total debt stood at $3.73 billion versus $2.78 billion in equity (1.34x debt-to-equity), up from 1.15x after a $450 million unsecured note. Interest coverage was 5.32x; higher rates could pressure cash available for dividends.
Read at 24/7 Wall St.
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