New Morningstar Analyst Report - CubeSmart

Thanks to dividend cuts and multiple capital raises, CubeSmart has considerably deleveraged and unencumbered its balance sheet during the past couple of years. While it has to digest its New York Storage Deluxe acquisitions, we generally think its financial health is on much higher ground than before. But while CubeSmart's operations have benefited from a rebound in consumer sentiment and a currently goldilocks multifamily sector, it nonetheless is captive to a highly competitive self-storage property sector. As such, we suggest a fair discount to our fair value estimate before investing.