Regardless of a steady increase in customers, declining property value caused Safestore, one of the United Kingdom’s largest self-storage companies, to report a full-year loss for 2009. With 95 facilities in the U.K. and 22 in Paris, Safestore reported a pre-tax loss of £9.4 million for the year ending Oct. 31, 2009. The company had made a £14.9 million pre-tax profit the previous year.
The group reported strong occupancy growth of 57,000 square feet in 2009 vs. an occupancy loss of 195,000 square feet in 2008. Rental rates increased 4.9 percent to £25.24 per square foot. Total revenue from Safestore’s U.K. and French operations increased 1.9 percent, from £82.9 million to £84.4 million.
Even still, a £41.6 million loss in Safestore’s investment properties outdid its performance, with a sharp drop in property values during the first half of the year.
Source: Financial Times, Safestore reports full-year loss