Safestore Holdings (LSE:SAFE) has reported a 5.5% rise in revenue for its financial year ended 31 October 2023, with like-for-like revenue up 1.7% in constant exchange rates.
Earnings (underlying EBITDA) were reported as 4.5% higher for the year (at constant exchange rates), whilst the company noted only 0.3% of like-for-like cost increases on the prior 12 months of trading.
The self-storage firm reported continuing growth efforts, which included the addition of some 500,000 square feet of lettable area across 13 sites, and, notably, highlighted its entry into the German market during the year through a new joint venture.
“Importantly, the underlying fundamentals of the European self storage industry with limited supply, strong barriers to entry and a steadily growing product awareness are as strong as ever,” chief executive Frederic Vecchioli said in a statement.
“We believe that the COVID period has acted as an accelerator of growth for the still relatively immature self-storage industry.
“Whilst demand (as measured by enquiry growth) stabilised during the year at a level that is below 2022, we are still seeing enquiry levels that are ahead of the pre-COVID period.”
Vecchioli added: “I'm confident that Safestore will continue to play a leading role in the development of the self storage industry across Europe, delivering significant further value to its stakeholders.
“Our industry leading business model remains unchanged and we have substantial EPS growth to deliver both from filling the 1.9 million sq ft of fully invested, currently unlet space, and from the new sites and expansion of existing sites in our pipeline, across major cities in the UK and continental Europe.”
Safestore operates 190 storage sites - 133 in the UK and 29 in France, with the remainder spread across Spain, the Netherlands, Belgium and Germany.
The company today recommended a final dividend of 20.2p per share, marking a 1% increase in the full year dividend to 30.1p.
In London, Safestore shares began Wednesday’s trading on the back foot, down 1.6%, changing hands at 836.5p each.