Interim Results Announcement for the six months ended 30 April 2010 (Unaudited)
'Rental rate and occupancy growth in both the UK and Paris'
Financial Highlights:
• Revenue increase of 2.8% to £42.4 million (2009: £41.3 million)
• Underlying EBITDA1 increase of 2.3% to £22.9 million (2009: £22.4 million)
• EPRA Adjusted Earnings per share3 ("EPS") increase of 17.6% to 3.68 pence (2009: 3.13 pence)
• Basic EPS3 of 2.56 pence (2009: a loss per share of 3.60 pence)
• As at 30 April 2010, Safestore's property portfolio was valued at £655.4 million, an increase of £7.6 million or 1.2% since October 2009
• Interim dividend increased by 3.0% to 1.70 pence (2009: 1.65 pence)
• New and increased bank facilities to August 2013
Operational Highlights:
• Average rental rate up 1.1% to £25.51 per square foot ("sq ft") on the same period last year
• Occupancy increased by 53,000 sq ft in the period compared to a loss of 11,200 sq ft in the comparable period last year. Overall, closing occupancy2 is 122,000 sq ft up on April 2009 at 2.83 million sq ft
• Over 40,000 customers, up 6.5% from April 2009
• Increased level of enquiries
• Good balance between business and domestic customers
• Continued benefits of UK national network - not dependent on London or housing market
• Continued strong performance in Paris
• Management contract for the 12 store Space Maker chain awarded to Safestore in May 2010
Steve Williams, Safestore's Chief Executive, commented:
"It is encouraging that the business has continued to perform well in what is still a challenging market.
The first half has seen an increase in revenue and underlying EBITDA over the same period last year which has been mainly driven by a solid rental rate and much improved occupancy movement performance in both the UK and Paris.
The second half of the year has begun positively with high levels of new enquiries and reservations, nearing the record levels seen in late 2007. We continue to see progression on the rate per sq ft and we have seen the underlying occupancy movement trading ahead of the prior year for 11 consecutive months. We believe that our operationally focused business model will continue to show resilience and our diversified store portfolio and customer base will continue to mitigate trading risk.
In May 2010, we were pleased to announce that Safestore has been awarded a six year management contract for the Space Maker self storage business. This gives the Company an additional revenue stream and the opportunity to grow the earnings of the business. The contract effectively commenced at the start of May 2010 and will be immediately earnings enhancing.
Safestore is the UK's largest self storage company and its strong balance sheet, cashflow generation and the new increased bank facilities will enable the Company to continue to selectively acquire new sites. This along with the natural operational gearing within the business model offer significant organic growth opportunities from the existing portfolio and keeps Safestore well positioned to take advantage of the favourable longer term trends for the self storage industry. The Board remains confident of the outcome for the full year.
1 EBITDA before exceptional items, contingent rent, gain/(loss) on investment properties and fair value movement of derivatives (underlying EBITDA)
2 Closing occupancy includes 21,000 sq ft of bulk tenancy (10,000 sq ft at 31 October 2009)
3 See note 9
