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Safestore's profits halve as gains on property revaluations tail off

"We remain on course to meet the board's full-year expectations," said Frederic Vecchioli, Safestore's CEO

Safestore
Safestore saw double digit percentage new let growth on a like-for-like basis in both the UK and Paris

Storage giant Safestore Holdings PLC (LON:SAFE) said the self-storage market remains resilient to macroeconomic uncertainty.

The company said its large size will enable it to invest in its digital marketing platforms and storage sites more efficiently than its rivals in the UK and Paris, giving it “significant low-cost growth potential”.

READ Safestore's new year off to good start in London & Paris

The company saw a dramatic 53.4% fall in pre-tax profit to £38.2mln in the six months to the end of April from £81.9mln the year before but that was because this time around the gain from an increase in the value of its properties was much reduced.

Underlying earnings, or EBITDA, rose 5.9% (or 6.1% on a constant exchange rates basis) to £41.4mln from £39.1mln the year before on revenue that grew 5.6% (5.9% on a constant exchange rates basis) to £73.1mln from £69.2mln the previous year.

The net asset value per share, based on the European Public Real Estate Association (EPRA) measurement, rose 13.7% to 406p from 357p the previous year.

The occupancy rate at the end of April had risen to 73.0% from 71.5% the year before.

The interim dividend was hiked by 7.8% to 5.5p from 5.1p.

“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,” said Frederic Vecchioli, the chief executive officer of Safestore.

“As we enter our peak trading period we are well-placed to meet this demand with our 1.72mln sq ft of currently unlet, fully invested space, and our pipeline of five stores that will add a further 252,000 sq ft,” he added.

Quick facts: Safestore Holdings

Price: 724.5 GBX

LSE:SAFE
Market: LSE
Market Cap: £1.52 billion
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