U.K. self-storage company Lok'nStore Group PLC has reported a “continued strong performance” based on preliminary figures for the first half of its 2016 fiscal year, which ended Jan. 31. The company reported a 5.4 percent increase in same-store self-storage revenue from the first half of 2015. Same-store occupancy was up 2.4 percent year over year, and average price per square foot increased 3.3 percent compared to the same period last year.
The company’s records-storage business also grew, with revenue increasing 14.7 percent compared to the same period a year ago. The number of stored boxes increased 11 percent during the 12 months that ended on Jan. 31.
CEO Andrew Jacobs indicated the operator’s financial status was strong, giving the company flexibility to grow its portfolio in the future. “Following the receipt of the additional £2 million for the sale of the old site in [Reading, England] and the £3.5 million for the sale of the [Swindon, England] operation, debt and leverage remain low and the reduced interest margin on our new bank facility further reduces finance costs,” he said in a released statement. “The new bank facility underlines the financial strength of Lok'nStore with its modest gearing, valuable property assets, and strong and growing cash flow. With its substantially improved terms and structure, we are able to invest in the future growth of the business.”
New locations in Aldershot, Maidenhead and Reading, England, have performed well, Jacobs said, providing confidence that new locations scheduled to open soon in Bristol, Chichester and Southampton, England, “will provide added impetus to sales and earnings growth.”
The company is expected to publish its first-half financial results on April 25.
Founded in 1995, Lok’nStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. It operates 24 self-storage facilities and two records-storage locations in Southern England. The self-storage portfolio is comprised of 12 freehold or long-leasehold properties, eight leasehold sites and four locations under management. It owns 20 of its operating facilities.
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