Imagine owning a business with a steady stream of clients who pay you regularly, whether they use your services or not.
Now, add to that the fact that this business requires little maintenance and has a high retention rate.
Sounds like a dream investment, doesn’t it?
This business isn’t in the glamorous tech sector or the headline-grabbing biotech industry.
It’s in a space that’s much simpler, yet often overlooked: self-storage.
A market that thrives on our human tendency to accumulate, and at times, over-accumulate.
Now, picture investing in a leader in this industry, a company with hundreds of facilities across the United States.
A company that not only benefits from our hoarding habits but also returns a portion of its profits to shareholders in the form of dividends.
An investment that could offer both growth potential and income generation.
That investment is CubeSmart (CUBE).
As one of the top three owners and operators of self-storage properties in the U.S., CubeSmart has a robust portfolio of self-storage facilities offering a wide range of sizes and types of storage options.
The self-storage industry is characterized by stable demand and high customer retention, driven by life events like moving, downsizing, or storing seasonal items.
This makes it a resilient business model, with predictable cash flows.
CubeSmart is also structured as a Real Estate Investment Trust (REIT), meaning it’s required to distribute at least 90% of its taxable income to shareholders as dividends.
As such, investing in CubeSmart gives you the potential for both capital appreciation and income generation.
Investing in CubeSmart isn’t without risks.
Market saturation, changes in consumer habits, and economic downturns could impact its performance.
However, the stable demand for storage, CubeSmart’s strategic locations, and its strong operational performance could make it an attractive proposition for investors seeking both growth and income.
