CubeSmart to acquire Storage West platform for ~$1.69B

  • CubeSmart (NYSE:CUBE) entered into an agreement to acquire 100% of the outstanding partnership units of LAACO, owner of the Storage West platform for ~$1.69B,which includes ~$40.9M of LAACO debt that will be repaid at, or shortly after, the closing.
  • Storage West is the owner and operator of 59 self-storage assets in the highly desired western markets of Southern California (22), Phoenix Solar (17), Las Vegas (13), and Houston (7).
  • Two of these properties are owned by two separate joint ventures, each owned 50% by LAACO.
  • "This immediately accretive transaction is a unique opportunity to acquire a sizable portfolio of high-quality assets across the Southwest. The properties are all in top-40 MSAs that represent key growth markets with strong demographics that perfectly fit our external growth strategy and complement our existing portfolio," president & CEO Christopher P. Marr commented.
  • The purchase price will be financed through equity offering proceeds and proceeds from new long-term debt financing, such as a term loan or debt securities.
  • If debt financing is unavailable, it plans to finance any remaining portion of the acquisition purchase price with proceeds from a committed $1B senior unsecured bridge loan facility and/or unsecured revolving credit facility.
  • The transaction is expected to close in Q4.

    For this year the company, based in Malvern revenue will be around 813.04 million USD. This is according to the average of the analysts' estimates. This is hugely more than 2021's revenue of 679.18 million USD.

    Historical revenues and results Cubesmart plus estimates 2021

    historische koersen

    The analysts expect for 2021 a net profit of 224 million USD. For this year the consensus of Cubesmart 's result per share is a profit of 1.11 USD. Based on this the price/earnings-ratio is 49.39.

    Analysts expect a dividend of 1.42 USD per share. The dividend yield is then 2.59 percent. The average dividend yield of the real estate companies is an attractive 3.11 percent.

    Based on the current number of outstanding shares Cubesmart 's market capitalization is 10.61 billion USD. 71

    On Friday, the stock closed at 54.82 USD.

    Price data Cubesmart 2007-2021

    equity research cubesmart

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