Q: Do you have any thoughts on CUBE? I don’t have a lot of REIT exposure in my portfolio (just a small position in DIR.UN and some ARE at a large loss).
Thinking of maybe either taking a tax-loss on ARE and redeploying into CUBE or else just buying CUBE with cash available in my portfolio (my sells are usually wrong, so I tend not to sell often).
Thinking of maybe either taking a tax-loss on ARE and redeploying into CUBE or else just buying CUBE with cash available in my portfolio (my sells are usually wrong, so I tend not to sell often).
5i Research Answer:
While on the expensive side of things (15x cash flow), CUBE is a decent mid cap REIT with an attractive distribution that has shown some growth. Growth is low but cash flow is steady. We like the self-storage space. Payout ratio is OK at 82%. We would be comfortable owning this for income. It is of course much different than ARE. With ARE at new highs we would be more inclined to keep it today.