11:57 AM EDT, 09/10/2024 (MT Newswires) -- CubeSmart ( CUBE ) will likely benefit from its "unique overweight" presence in the New York City area, RBC Capital Markets said in a note to clients emailed Tuesday.

Supply headwinds in the NYC area have "faded faster than for the broader group, which could lead to continued rent outperformance," RBC said, adding that the company has the "only geographically distinct portfolio among the storage [real estate investment trusts]."

CubeSmart ( CUBE ) owns 615 stores and manages 879 stores on behalf of third parties, providing the company with the highest exposure to third-party management in the group, according to the note.

Also, CubeSmart's ( CUBE ) "leverage profile is better than both its current credit ratings and its target, which provides significant capacity when acquisition volumes pick back up," RBC said.

RBC started coverage of CubeSmart ( CUBE ) with an outperform rating and a $56 price target.

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