Europe/UK Self-Storage Operator Safestore Releases 4Q 2023 Results

Self-storage operator Safestore Holdings PLC, which has locations in Europe and the United Kingdom, has released its interim financial statement for the fourth quarter of its 2023 fiscal year, which ended Oct. 31. The company experienced growth in revenue and average rental rate for most of its operating portfolio, according to the report.

Total revenue for the period was up 1.4% to £57.6 million, while “like-for-like” growth for the group fell 0.4%, using constant exchange rate (CER). Average rental rates across the portfolio increased 2% to £30.22, while average rates for same-store facilities grew 2.8% to £31.57.

Occupancy across the Safestore portfolio was 77% at the end of the period, down from 82.1% a year ago. Same-store occupancy was 79.6%, which fell 3.2% from 82.8% a year ago. The group’s Paris locations had the highest closing occupancy during the period at 81.3%.

Safestore opened four new facilities and completed one expansion project during the quarter, adding 150,100 rentable square feet to its portfolio. The company has 30 development projects in its pipeline, which are expected to comprise 1.5 million square feet.

“We believe that the COVID period has acted as an accelerator of growth for the self-storage industry. Whilst demand stabilized during the year at a level that is below 2022, we are still seeing inquiry levels that are ahead of the pre-COVID period,” said CEO Frederic Vecchioli. “Looking beyond any potential short-term volatility, there remains a significant undersupply of high-quality self-storage capacity across the U.K. and Europe, which provides a structural growth driver for the industry.”

Safestore operates 190 self-storage facilities in Belgium, France, the Netherlands, Spain and the United Kingdom. Its storage properties comprise about 8.1 million square feet of storage space and serve approximately 90,000 customers.

Source: Safestore, Safestore Holdings PLC