Safestore Holdings PLC (LON:SAFE) has highlighted “improved trading momentum” for its fourth quarter as the storage unit specialist noted record occupancy in the period.
In a trading update for the period to October 31 from August 1, the FTSE 250 company reported revenues of £42.8mln, up 5.7% year-on-year, while its closing occupancy rose by a record 9.6% to 5.45mln let square feet, with the group saying its UK occupancy rate has now recovered to its pre-lockdown position.
The revenue rise was mostly down to a 3.4% increase in storage revenues to £33.7mln, offsetting a 2.7% decline in ancillary revenues to £7.2mln.
Looking ahead, Safestore said it expects its adjusted diluted EPRA earnings per share will be in line with its expectations for the full year. While coronavirus was continuing to create uncertainty, the company said its performance during the crisis “demonstrates the business model's resilience” and that the firm is “in a good position to withstand any ongoing challenges”.
"Despite the pandemic, the company continues to be in a very strong position. Notwithstanding the recent strong occupancy performance, the business still has 1.4m square feet of currently unlet space in our existing fully invested estate, representing a significant organic growth opportunity in what remains a fragmented market”, Safestore chief executive Frederic Vecchioli said in a statement.
“Our leading market positions in the UK and Paris, combined with our balance sheet strength and resilient business model, leave us well positioned for the future. The Company remains on course to meet the Board's full year expectations", he added.
In a note on Wednesday, analysts at Liberum reiterated their ‘hold’ rating and 810p target price on the stock, saying the company had reported a “strong closing quarter” for its UK market but the valuation was now “up with events”.
Shares in Safestore rose 1.1% to 823.8p in early trading.