Safestore Holdings PLC (LON:SAFE) has entered the Spanish market as it continues stacking positive like-for-like (LFL) revenue growth.
Alongside its final results for the year ended 31 October, the self-storage provider said it bought OhMyBox, which has four stores in Barcelona, for €17.25mln at the end of December.
READ: Safestore dips its toe into the Netherlands market
The acquisition follows the joint venture with Carlyle announced in August to incorporate six stores in the Netherlands and the addition of three stores to the UK estate carried out independently.
The company said the eight weeks to 31 December saw an 6% increase in LFL revenue compared to the same period last year, improving on 5% rise seen in the financial year just passed.
Profit before tax shrinks
Underlying profit (EBITDA) was 5% higher than last year at £87.5mln, while statutory profit before tax slid 20% to £147.3mln due to a drop of £38mln in investment property gains.
Debt widened 6% to £443mln as a result of the expansion plans, with £49mln in the bank at the end of the period.
Current unlet space available is 1.5mln square feet to offer some upside in the portfolio.
Liberum downgrade
Broker Liberum forecast 5% LFL revenue growth in the full year, with four new store openings in the pipeline, but its recommendation was downgraded to ‘hold’ from ‘buy’, due to the share price increase combined with slower growth expectations.
But the target price was lifted to 820p from 710p and analysts said the group’s cash generative model makes it attractive and its regional diversity is set to generate growth.
“Rising long-term demand for storage space, above-average barriers to entry and latent occupancy and rate upside all underpin long-term growth potential at Safestore,” analysts said in a note.
Shares were muted at 794.5p on Tuesday morning.