Bank of Montreal Can Acquires Stake in CubeSmart
November 16, 2023
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CUBESMART ($NYSE:CUBE): The Bank of Montreal, one of Canada’s leading banking institutions, recently announced its acquisition of a stake in CubeSmart, a real estate investment trust. This acquisition marks an important milestone in the company’s history, as it further strengthens its foothold in the real estate industry. CubeSmart is a publicly-traded real estate investment trust that specializes in self-storage properties. With this acquisition, Bank of Montreal has solidified its presence in the real estate industry. With CubeSmart’s expansive portfolio and strong financial performance, Bank of Montreal believes that this investment will prove to be a sound one.
Bank of Montreal is confident that this partnership will give CubeSmart the opportunity to further expand its operations, and create more value for its shareholders. This acquisition marks an important milestone for both Bank of Montreal and CubeSmart. Bank of Montreal will benefit from CubeSmart’s expertise and experience in the self-storage industry, while CubeSmart will benefit from Bank of Montreal’s financial stability and resources. With this acquisition, both companies are looking forward to a long-term and mutually beneficial relationship.
Market Price
On Thursday, it was announced that Bank of Montreal Can had acquired a stake in CUBESMART. Following this news, the stock opened at $37.0 but closed at $36.6, down by 1.1% from the previous closing price of $37.0. This slight drop in share value has been attributed to investors’ apprehensions towards the changes that may arise due to the deal. Nevertheless, the company maintains that their commitment to their customers will remain unchanged. CubeSmart“>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cubesmart. CubeSmart“>More…
| Total Revenues | Net Income | Net Margin |
| 1.05k | 379.95 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cubesmart. CubeSmart“>More…
| Operations | Investing | Financing |
| 610.11 | -72.37 | -536.04 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cubesmart. CubeSmart“>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.23k | 3.36k | 12.48 |
Key Ratios Snapshot
Some of the financial key ratios for Cubesmart are shown below. CubeSmart“>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 45.3% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale has recently conducted an analysis of CUBESMART’s fundamentals, and we have concluded that it is classified as an ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividend payments. This company would likely be of interest to investors who are looking for steady dividends and a safe, reliable return. CUBESMART scores highly on our health assessment, with a rating of 8 out of 10. This indicates that the company is in a relatively strong financial position, allowing it to safely ride out any economic crisis without being at risk of bankruptcy. Furthermore, our analysis also reveals that CUBESMART is strong in its asset, dividend, growth, and profitability scores, making it a potentially attractive investment for those looking for more stability in their portfolio. CubeSmart“>More…
Peers
CubeSmart is in the business of self-storage. Its competitors are LXP Industrial Trust, Terreno Realty Corp, Big Yellow Group PLC.
– LXP Industrial Trust ($NYSE:LXP)
LXP Industrial Trust is a publicly traded real estate investment trust that owns and operates a portfolio of light industrial properties in the United States. The company’s portfolio consists of approximately 26 million square feet of industrial space located in 21 states. LXP Industrial Trust is headquartered in Dallas, Texas.
– Terreno Realty Corp ($NYSE:TRNO)
Terreno Realty Corp is a real estate investment trust that primarily acquires, owns, and operates industrial properties in key logistics markets in the United States. As of December 31, 2020, the company’s portfolio consisted of 106 industrial properties totaling approximately 15.4 million square feet of leasable space.
– Big Yellow Group PLC ($LSE:BYG)
Big Yellow Group PLC is a United Kingdom-based self-storage company. The Company’s self-storage is a form of storage in which goods are stored in a rented space that the customer can access. The Company operates a portfolio of self-storage centres across the United Kingdom.
Summary
The Bank of Montreal recently purchased a stake in CubeSmart, a leading real estate investment trust. This move indicates that the bank believes CubeSmart to be a valuable investment opportunity. Analysts note that CubeSmart offers exposure to the self-storage sector, which is largely unaffected by economic fluctuations and has been growing in value recently.
Additionally, its portfolio of properties provides higher returns than other asset classes, and its exposure to the Northeast and Mid-Atlantic regions presents opportunities for capital appreciation. Furthermore, CubeSmart’s management team has a proven track record of strong financial performance, consistently meeting or exceeding financial targets for operating income, funds from operations, and adjusted funds from operations. With these positive indicators, the Bank of Montreal’s stake purchase suggests that CubeSmart is a prudent and potentially profitable investment.
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