CubeSmart stock poised for growth as New York self storage market stabilizes

Published 25/09/2025, 13:52
CubeSmart stock poised for growth as New York self storage market stabilizes

Investing.com - CubeSmart (NYSE:CUBE), a $3.82 billion market cap self-storage REIT offering an attractive 7.67% dividend yield, is positioned to benefit from improving self storage fundamentals in the New York City metropolitan area, according to a recent KeyBanc analysis. The real estate investment trust derives 24.5% of its Same Store Net Operating Income from the NYC metro area, including 15.5% from the Bronx, Brooklyn, and Queens. InvestingPro data shows the company maintains a healthy 72.33% gross profit margin despite current market challenges.

The New York metro area, despite being one of the most densely populated regions in the country, has faced challenges in recent years with approximately 29% new supply growth since 2019 combined with pandemic-related population outflows. KeyBanc now reports that supply pressures have abated in recent quarters, marked by a slowdown in deliveries, while population growth has resumed. According to InvestingPro’s comprehensive analysis, which includes over 30 key financial metrics and exclusive insights available to subscribers, CubeSmart maintains a FAIR overall financial health score of 2.12.

Self storage fundamentals in New York City proper benefit from a structural supply/demand imbalance, with less than 3 square feet per capita compared to the national average of over 6 square feet per capita. This scarcity makes New York Self Storage among the most prized holdings in the sector, according to the analysis.

While CubeSmart has the highest exposure to the NYC market as a percentage of its portfolio, Extra Space Storage (NYSE:EXR) and Public Storage (NYSE:PSA) also maintain significant presence in the region. Extra Space has the largest absolute store count with 129 locations and 9.9 million square feet in its same-store pool located in the New York Metro.

KeyBanc analyst Todd M. Thomas noted that with both new supply growth forecast to moderate across the New York MSA and population growth stabilizing, "we see potential for Self Storage fundamentals in the New York MSA to continue to outperform in the years ahead," adding that this "bodes well for CUBE and others with exposure to the New York region."

In other recent news, National Storage Affiliates Trust released its second-quarter 2025 earnings report, showing mixed results. The company reported an earnings per share (EPS) of $0.19, which fell just short of the analyst forecast of $0.20. Revenue was reported at $188.84 million, narrowly missing the expected $188.87 million. These figures provide investors with key insights into the company’s recent performance. The earnings and revenue results are important indicators for investors assessing the company’s financial health. No analyst upgrades or downgrades were mentioned in the recent reports. However, the data from the earnings call is crucial for analysts and investors alike. These recent developments highlight the company’s current financial standing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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