UK Self-Storage Operator Safestore Releases Financial Results for First 6 Months of Fiscal 2015

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the first six months of its 2015 fiscal year, which ended April 30. The report indicates Safestore experienced growth in revenue, rental rates and occupancy at its self-storage facilities in France and the United Kingdom.

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the first six months of its 2015 fiscal year, which ended April 30. The report indicates Safestore experienced growth in revenue, rental rates and occupancy at its self-storage facilities in France and the United Kingdom.

Total revenue for the period was up 7.5 percent to £50.4 million, with “like-for-like” growth for the group up 11.2 percent, using constant exchange rate, in both operating regions. Like-for-like revenue in the U.K. grew 13.4 percent, while the company’s Paris business increased 5.9 percent compared to the same period in 2014.

Occupancy across the company’s portfolio was 68.9 percent at the end of the period, an increase of 3.6 percent. U.K. occupancy was 66.8 percent, up 3.4 points from a year ago. Rental rates increased 7.5 percent in the U.K. year over year. In France, occupancy was 77.2 percent, up 5.1 percent from a year ago, while rental rates increased 2.9 percent year over year.

"The key initiatives taken over the last 18 months to enhance operational performance are now reflected in sustained and improved trading,” said Frederic Vecchioli, CEO. “Growing inquiries, stronger conversion and improved pricing has driven double-digit, like-for-like growth in the U.K., while our strongly positioned Parisian business has delivered a robust performance and its 17th year of consecutive growth, reflecting its market-leading position.”

The board of directors recommended a six-month dividend of 3 pence per share, an increase of 39.5 percent from a year ago.

On the development front, Safestore acquired one freehold facility and five leasehold locations during the period. It also announced a planned expansion of a facility in the London borough of Wandsworth, which will add 25,000 square feet of storage space. “As our positive momentum continues, I look forward to the opening of our two London developments at Chiswick in 2016 and Wandsworth, announced today, in 2017, and to considering further selective development and acquisition opportunities in our key markets," Vecchioli said.

Safestore operates 121 self-storage facilities, including 97 wholly owned U.K. locations and 24 wholly owned facilities in France. The company also has 12 locations under management in the U.K. Its wholly owned properties comprise more than 5 million square feet of storage space, while its entire portfolio serves approximately 48,000 customers.

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