Safestore Holdings PLC (LON:SAFE) has reported growth in its like-for-like (LFL) revenues for the third quarter as occupancy rates crept upwards.
The FTSE 250 self-storage provider reported in a trading update that LFL revenues had risen 5.9% to £34mln in the period, while its closing occupancy had risen 3.3 percentage points to 77.8% of its max lettable area.
Occupancy rates to fall in fourth quarter
The firm also reported LFL revenue growth across both of its geographies, with UK and Paris revenues up 5.9% to £25.3mln and 4.3% to €9.8mln respectively.
In its outlook, Safestore said it expected occupancy rates to decline in the fourth quarter, in keeping with “normal industry trading patterns”, although it was still in line to meet expectations for the full year.
Frederic Vecchioli, Safestore’s chief executive, said the firm’s recent openings in London at Marble Arch, Paddington, and Mitcham, and in Paris at Combs-la-Ville were performing “ahead of their business plans” while the 12-store Alligator portfolio, which the company acquired last November, was performing in line with expectations.
Vecchioli added that he was “confident” the firm’s leading market positions in the UK and Paris would enable it to “withstand any macro-economic uncertainty” over the coming months.
In a note to clients, analysts at City broker Liberum commented that they saw an almost 70% earnings upside to Safestore from its existing portfolio if it achieved 90% occupancy and rates in line with its peers.
They added that the UK storage industry could still double its footprint, citing that storage per capita in the UK was “significantly lower” than markets where it has been established for longer.
In early trading Wednesday, Safestore shares were up 0.4% at 536p.