U.K. self-storage operator Safestore Holdings PLC has released its interim financial statement for the first half of its 2019 fiscal year, which ended April 30. 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 5.9 percent to £73.1 million, with “like-for-like” growth for the group also up 5.9 percent, using constant exchange rate, in both operating regions. Same-store revenue in the U.K. grew 5.6 percent, while the company’s Paris business increased 6.3 percent compared to the same period in 2018.
Occupancy across the company’s portfolio was 73 percent at the end of the period, an increase of 1.5 percent. Same-store occupancy was 74.3 percent, an increase of 2.2 percent. U.K. occupancy was 71.9 percent, a 1.6 percent bump from a year ago. Rental rates across the U.K. portfolio increased 2.4 percent year over year, while same-store facilities increased rates 2.6 percent. In France, occupancy was 77.7 percent, up .7 percent from a year ago, while rental rates fell 1.4 percent.
"Safestore's performance has been robust in the first half of the year and continues to build on the strong earnings and dividend growth achieved over the last five years,” said Frederic Vecchioli, CEO. “The self-storage market remains resilient to macroeconomic uncertainty, and we continue to capture growing levels of demand in the U.K. and in Paris, with double-digit new let growth on a like-for-like basis in both markets.”
The company has added 38 locations since expanding its acquisition and development program in 2016. It currently has five projects in its pipeline, which are expected to add 252,000 square feet to its portfolio. “Going forward, we expect to be able to continue to seize consolidation opportunities as well as new development sites that can be turned relatively quickly into new stores,” Vecchioli 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, Interim Results for the 6 Months Ended 30 April 2019