CUBE

Best Ideas Newsletter Portfolio Soars!

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Image shown: The top weighted ideas in the Best Ideas Newsletter portfolio continued to lead the charge during the trading session Friday, July 23. Facebook and Alphabet rallied on favorable reports from social media peers, while Vertex continues to recover thanks in part to encouraging views on CRISPR technology, while Visa looks to be back on track. DPZ had a strong trading session July 22 and experienced some profit taking. Image source: Seeking Alpha.  By Brian Nelson, CFA Add options commentary to your membership >> During the trading session July 23, shares of top-weighted Facebook (FB) surged 5.3%, to close at $369.79. In December 2018, Facebook’s shares were trading hands in the mid-$120s, and the past few years have been … Read more

CubeSmart Outperforms and Boosts Its Full-Year Guidance

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Image Source: CubeSmart – June 2021 IR Presentation By Callum Turcan We are big fans of the self-storage real estate investment trust (‘REIT’) industry given the ability for firms operating in this arena to generate meaningful free cash flows, a difficult task for most REITs considering their hefty capital expenditure requirements. CubeSmart (CUBE) is one of our favorites in the space and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. Shares of CUBE are up 38% year-to-date as of the end of normal trading hours on June 10, easily outpacing the 12% gain seen in the S&P 500 (SPY) during this period before taking dividend considerations into account. As of this writing, shares of … Read more

Public Storage and Philip Morris Are Stellar High-Yielding Opportunities

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Image Shown: Shares of Public Storage (depicted by the orange line) and Philip Morris International Inc (depicted by the blue line) have outperformed the S&P 500 (depicted by the yellow line) year-to-date as of midday trading on June 9, before taking dividend considerations into account. We continue to be huge fans of Public Storage and Philip Morris and include both firms as ideas in our High Yield Dividend Newsletter portfolio. By Callum Turcan Public Storage (PSA), the self-storage real estate investment trust (‘REIT’) primarily focused on the US, and Philip Morris International Inc (PM), the global tobacco giant behind the Marlboro brand and the IQOS offering, are two of our favorite high-yielding ideas. As one can see in the graphic … Read more

Public Storage’s Traditional Free Cash Flow Coverage of the Dividend Is Unique for a REIT

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Image Source: Mike Mozart By Brian Nelson, CFA Public Storage (PSA) reported better-than-expected fourth-quarter 2020 results February 24. For the period ending December 31, 2020, net income came in at $1.67 per common share, down from last year’s level but mainly because of a non-operating negative impact related to forex on Euro denominated debt ($35.1 million). On an operating basis, Public Storage’s self-storage net operating income advanced $16.5 million year-over-year in the quarter, which was only modestly offset by higher general and administrative expenses ($12.3 million). Underlying business performance at Public Storage remains very healthy, in our view. Core funds from operations (FFO) per share came in at $2.93 in the quarter, up 3.2% in the year-ago period (above the … Read more

Public Storage Receives Interest from Activist Investor

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Image Shown: A look at Public Storage’s geographical footprint at the end of 2019, keeping in mind some of these properties are owned by its strategic partners. Image Source: Public Storage – 2019 Annual Report By Callum Turcan We are big fans of the self-storage industry and include Public Storage (PSA) in our High Yield Dividend Newsletter portfolio. One of the greatest things about Public Storage is the ability for this self-storage real estate investment trust (‘REIT’) to generate sizable positive free cash flows, a rarity in the REIT world. We have covered this dynamic in detail in the past (link here). Shares of PSA yield ~3.6% as of this writing and we see room for significant payout growth over … Read more

Public Storage Continues to Shine

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Image Shown: Shares of Public Storage have recovered from the depths of the COVID-19 pandemic and have been on an upward climb over the past few months.   By Callum Turcan On November 4, Public Storage (PSA) reported earnings for the third quarter of 2020. As expected, headwinds created by the coronavirus (‘COVID-19’) pandemic weighed on its financial performance during this period; however, that did not stop the self-storage real estate investment trust (‘REIT’) from being very free cash flow positive. The long-term outlook for the self-storage industry in metropolitan areas in the US and elsewhere remains quite promising given the desire for households to maximize living space within their housing unit at a given budget. We include shares of … Read more

CubeSmart Is One of Our Favorite REITs

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Image Source: CubeSmart – October 2020 Deluxe Storage Transaction IR Presentation By Callum Turcan On November 5, the self-storage real estate investment trust (‘REIT’) CubeSmart (CUBE) reported third quarter earnings for 2020 that missed consensus top-line estimates but beat consensus funds from operations (‘FFO’) estimates. The REIT’s financial performance has taken a hit from the ongoing coronavirus (‘COVID-19’) pandemic, though CubeSmart adjusted by launching its contactless online rental program SmartRental back in April. Furthermore, after suspending its normal schedule for rental rate increases earlier this year, CubeSmart resumed those increases in June and July. CubeSmart has also since resumed its normal delinquency process, on a jurisdiction by jurisdiction basis. We include shares of CubeSmart as a holding in our High … Read more

Crown Castle Continues to Shine

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Image Shown: Crown Castle International Corp.’s growth trajectory continued in the third quarter of 2020. Image Source: Crown Castle International Corp. – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan Crown Castle International Corp. (CCI)–3.3% yield (as of this writing)–is a real estate investment trust (‘REIT’) that owns 40,000+ cell towers, ~70,000 small cell nodes (on air or under contract) and ~80,000 route miles of fiber that support numerous networking operations all across the US. We include shares of Crown Castle as a holding in our High Yield Dividend Newsletter given its ability to generate sizable free cash flows even after investing heavily in expanding its asset base. From 2017 to 2019, Crown Castle generated ~$0.75 billion in … Read more

Global Net Lease’s Yield Is Flashing Signs of Trouble

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Image Shown: An overview of Global Net Lease’s asset base. Image Source: Global Net Lease – Second Quarter of 2020 IR Earnings Presentation By Callum Turcan Global Net Lease (GNL) is a real estate investment trust (‘REIT’) focused on single tenant net-leased commercial properties in the US, Canada, and Europe. Sale and leaseback transactions are a common way the REIT grows its business. At the end of June 2020, a little less than two thirds of its annualized rental income came from properties in the US and Canada. Global Net Lease generated a little less than half of its annualized rental income from both office properties and industrial/distribution properties, with the remainder coming from retail properties. Shares of GNL yield … Read more

Public Storage Rebounds and Its Financials Remain Strong

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Image Shown: Shares of Public Storage have recovered a considerable amount of lost ground since the pandemic-induced drop in March 2020. We continue to like Public Storage as a holding in our High Yield Dividend Newsletter and are big fans of self-storage companies with significant exposure to the US. By Callum Turcan The self-storage real estate investment trust (‘REIT’) Public Storage (PSA) is included as a holding in our High Yield Dividend Newsletter portfolio. We strongly appreciate its free cash flows, which are relatively rare in the REIT industry given that the growth-related capital expenditures of most REIT’s tend to be enormous. Shares of PSA have rebounded strongly off their March 2020 lows and yield ~3.6% as of this writing. … Read more