U.K. self-storage operator Lok’nStore Group PLC has released financial results for the half year that ended Jan. 31, 2023. The company’s same-store revenue increased 10% over the same time the previous year. The growth was driven by improvements in occupancy and pricing but was tempered by heightened operating costs, according to a source.

Company shares were down 2.7% to £9.37. The price per square foot of occupied space increased by 9.2%, and unit occupancy was up 2.6% from a year ago. Move-ins for the period were up 14%.

The company has several self-storage development projects underway, with four expected to open this year and one in early 2024. Once complete, the facilities will grow the operator’s rentable square feet by 49%.

“As we open new stores and build their occupancy, so their value increases significantly. The cash flow from these stores can then fund future growth and an increasing dividend to our shareholders,” said Andrew Jacobs, executive chairman.

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 38 self-storage facilities in Southern England.

Sources:
Morningstar, Lok'nStore Revenue Jumps in The First Half as Move-Ins Increase 14%
ShareCast, Lok'nStore Same-Store Revenues Up, Warns of Increased Cost Pressures