U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the third quarter of its 2019 fiscal year, which ended July 31. The company experienced growth in revenue and occupancy for most of its operating portfolio in France and the United Kingdom, as well as moderate increases in average rental rates within the group.
Total revenue for the period was up 4.8 percent to £38.2 million, with “like-for-like” growth for the group up 4.2 percent, using constant exchange rate, in both operating regions. Same-store revenue in the U.K. grew 4 percent, while the company’s Paris business increased 6.1 percent compared to the same period in 2018.
Occupancy across the company’s portfolio was 77.5 percent at the end of the period, an increase of 1.7 percent. Same-store occupancy was 78.6 percent, an increase of 2.1 percent. U.K. occupancy was 76.7 percent, a 2 percent bump from a year ago. Rental rates across the U.K. portfolio increased 1.3 percent year over year, while same-store facilities increased rates 1.5 percent. In France, occupancy was 80.7 percent, up .2 percent from a year ago, while rental rates fell 1 percent.
"I am pleased to report another good performance in the third quarter despite annualizing a strong third quarter in 2018,” said Frederic Vecchioli, CEO. “Our top priority remains the significant organic growth opportunity represented by the 1.4 million square feet of unlet space in our existing fully invested estate.”
Subsequent to quarter-end, Safestore launched a joint venture (JV) in August with global private-equity firm The Carlyle Group to acquire the M3 Self Storage portfolio in The Netherlands. The company will invest €5.2 million for a 20 percent state in the Dutch operation. “The group’s investment in the JV is expected to be immediately accretive to group earnings per share from completion and will support the group's future dividend capacity,” officials said.
Safestore operates 146 self-storage facilities, including 119 facilities it owns in the U.K. and 27 in France. Its storage properties comprise 6.37 million square feet of storage space and serve approximately 64,000 customers.
Safestore, Third Quarter Trading Update for the Period 1 May 2019 to 31 July 2019