Stor-Age Property REIT, which operates self-storage facilities in South Africa and the United Kingdom, has released its earnings report for the fiscal year that ended March 31. The company reported its fourth consecutive period of growth, achieving large gains in occupancy and rental rates. Property revenue grew 86.1 percent, while operating profit increased 86.5 percent year over year.
The company’s performance was “excellent when considering the prevailing tough macro environment and challenged local property sector” in South Africa, CEO Gavin Lucas said in a press release. The company’s R3.9 billion market capitalization is a 300 percent increase since Stor-Age debuted on the Johannesburg Stock Exchange in November 2015.
The company reported a closing occupancy of 85.3 percent for its South Africa properties and 78.2 percent for those in the United Kingdom. Same-store rental income increased 10.6 percent due to higher average occupancy and an 8.8 percent increase in average rental rate. “Purely organic drivers” drove a 9.2 percent increase in closing rental rates for the company’s South Africa portfolio.
Stor-Age broke ground on two new properties during the year and continued expanding parts of its existing portfolio. It also acquired three facilities. “These acquisitions have demonstrated not only our ability to identify and then close value-add transactions, but also our ability to integrate newly acquired trading stores seamlessly onto our operating platform,” Lucas said.
The company’s U.K. portfolio had a 9 percent increase in net rental income, with same-store “organic growth” at 6.2 percent. Stor-Age intends to add up to five new self-storage facilities under the Storage King brand on an annual basis but will remain focused largely on growing its presence in South Africa, the release stated.
Stor-Age issued a yearly dividend of 97.83 cents, an 11.1 percent increase over the previous fiscal year. The company has forecast an increase of up to 10 percent for its anticipated dividend at the close of the next fiscal year.
Headquartered in Cape Town and established in 2006 by the Lucas family, Stor-Age operates a 63-property portfolio, primarily in four South African metropolitan areas, that comprises approximately 407,000 square meters. It’s the operator appointed by Stor-Age Property Fund Managers Pty. Ltd. to manage and market the property portfolio owned by Stor-Age Property Holdings Pty. Ltd., and was listed on the Johannesburg Stock Exchange in November 2015.
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