CUBE

CubeSmart (self-storage REIT)

HARAM — SCREEN DOES NOT PASSstock

Is CUBE Halal?

Self-storage REIT with conventional mortgage and note financing; the latest asset-based debt screen fails.

What You Should Know

CubeSmart's March 31, 2026 Form 10-Q reports $6,598.136 million of assets, $3,505.201 million of tracked interest-bearing debt including finance leases, $7.258 million of cash, $28.524 million of receivables and $281.929 million of quarterly revenue. Debt/assets is 53.12%, above the examined asset-based limits. Self-storage operations are not inherently prohibited, but conventional REIT leverage and tenant-use uncertainty remain material.

⚠️ Concerns

  • Debt/assets of 53.12% exceeds the examined limits
  • Conventional mortgages, senior notes and finance leases
  • Tenant use is not screened at product or activity level
  • Gross interest income and prohibited revenue are not separately disclosed

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
53.12%Above limit
Below 33.333% under FTSE Yasaar

3,505.201 / 6,598.136

Cash + interest-bearing securities / assets
0.11%Within limit
Below 33.333% under FTSE Yasaar

7.258 / 6,598.136

Receivables + cash / assets
0.54%Within limit
Below 50% under FTSE Yasaar

35.782 / 6,598.136

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 53.12%, above the examined 33.333% limit; liquidity/assets is 0.11% and receivables-plus-cash/assets is 0.54%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 53.12%, above the examined MSCI limit; liquidity and receivables-plus-cash remain below their examined limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 53.12%, above the examined Malaysia limit; this is a calculation against SAC ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed and reproducible historical market-cap series is not stored; filing-based asset ratios are documented.

Business-activity disclosure

CubeSmart operates self-storage properties and related management and real-estate activities. The property business is not itself prohibited, but conventional REIT borrowing and interest expense are material and the filing does not quantify a universal prohibited-revenue numerator.

Limitation: The filing does not provide a scholar-approved prohibited-activity revenue numerator for all tenants, joint ventures and services.

Purification

Gross interest income and a complete prohibited-revenue numerator are unavailable; no fixed purification percentage is asserted.

Inputs, assumptions and primary sources
  • Amounts are USD millions from CubeSmart's March 31, 2026 Form 10-Q.
  • Tracked debt includes $3,439.667 million of consolidated long-term debt and $65.534 million of finance-lease liabilities; no separate current debt balance is added.
  • Cash is $7.258 million; no unrestricted interest-bearing securities balance is separately identified.
  • Receivables combine $8.930 million of accounts receivable and $19.594 million of other receivables.
  • Quarterly revenue is $281.929 million; gross interest income is not separately disclosed.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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