New Morningstar Analyst Report - U-Store-It Trust

Thanks to dividend cuts and multiple capital raises, CubeSmart has considerably deleveraged and unencumbered its balance sheet during the last couple of years. Though in better financial condition, we caution that its debt load still could cause problems for CubeSmart down the road if credit markets don't cooperate. Moreover, while CubeSmart's operations have benefited from a rebound in consumer sentiment, it nonetheless is captive to a highly competitive, no-moat self-storage property sector. As such, we suggest a substantial discount to our fair value estimate prior to investing.