Cubesmart Positions Itself For Growth And Financial Flexibility

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CubeSmart, headquartered in Malvern, announced Oct. 14 an underwritten public offering of 6.5 million common shares of beneficial interest, par value $0.01 per share.

The self-administered and self-managed real estate investment trust focused on self-storage facilities also said it has granted the underwriters of the offering a 30-day option to purchase up to an additional 975,000 common shares. Barclays and Jefferies LLC are acting as the joint book-running managers of the offering.

CubeSmart expects to use all of the net proceeds of the offering for general business purposes, including facility acquisitions, developments, joint ventures, capital expenditures, working capital, and other general corporate purposes.

In late September CubeSmart’s senior unsecured bonds and issuer ratings were upgraded to Baa2 from Baa3 by Moody’s Investors Service, with a stable outlook. Also, the company’s 7.75-percent Series A Cumulative Redeemable Preferred Shares (NYSE: CUBE-A) and preferred issuer ratings were upgraded to Baa3 from Ba1, also with a stable outlook.

CubeSmart Chief Financial Officer Tim Martin said the rating improves the firm’s financial flexibility to support growth by lowering debt costs and expanding access to capital.

Moody’s analyst Alice Chung said in a company news release CubeSmart has one of the best portfolios in its asset class.

According to the 2014 Self-Storage Almanac, CubeSmart is one of the top four owners and operators of self-storage facilities in the United States.

 

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