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UK Self-Storage Operator Safestore Reports Fiscal 2014 Financial Results

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for its 2014 fiscal year, which ended Oct. 31. The report indicates Safestore experienced growth in revenue, move-ins and occupancy at its self-storage facilities in France and the United Kingdom.

January 23, 2015

2 Min Read
UK Self-Storage Operator Safestore Reports Fiscal 2014 Financial Results

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for its 2014 fiscal year, which ended Oct. 31. The report indicates Safestore experienced growth in revenue, move-ins and occupancy at its self-storage facilities in France and the United Kingdom.

Total revenue for the year was up 1.9 percent to £97.9 million, with “like-for-like” growth of 4.4 percent, using constant exchange rate, in both operating regions. The increases were attributed primarily to improved occupancy and rental rates.

Occupancy across the company’s portfolio was 68.8 percent at year-end, an increase of 3.5 percent. U.K. occupancy was 66.6 percent, up 3.5 points from 2013. Move-ins increased 19.8 percent during the year and jumped 35.4 percent in the fourth quarter, officials said in a press release. Occupancy at the company’s Paris holdings closed the year at 77.2 percent, up 5.3 points.

Officials were particularly pleased with the continued performance of the company’s Paris locations. Move-ins during the fourth quarter were at a record level, and the region posted its 16th consecutive year of revenue growth, according to the release. Average annual revenue growth for Safestore’s Paris facilities has been 5.8 percent during the last five years, officials said.

“I am pleased with the good progress we have made in driving operational improvements during the course of the year,” said Frederic Vecchioli, CEO. “Our industry-leading Web platform has driven 12 percent growth in U.K. inquiries; and the sales team, at the same time as managing to increase the conversion rate of these inquiries, has also achieved an increase in pricing by reducing discounts. Our market-leading business in Paris continues to perform well, recording its 16th year of uninterrupted revenue growth.”

The board of directors recommended a final dividend of 5.30 pence per share, an increase of 36 percent from 2013. The resulting full-year dividend of 7.45 pence per share is a 30 percent increase year over year.

“As we enter the new financial year, we remain focused on the long-term opportunity of filling the 1.6 million square feet of currently unlet space, the equivalent of 40 full stores,” Vecchioli added. “We will continue our strategy of driving the operational performance of the business whilst leveraging further our size and expertise in generating inquiries through the Internet. We anticipate that the recent progress in the business and the renewed confidence of our sales team will continue to deliver further operational improvement as we enter the new financial year.”

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. It serves approximately 48,000 total customers and employs about 525 people.

Sources:

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