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Lok'n Store First Half Revenue Rises As Occupancy Levels Grow

12th February 2019

Self storage provider Lok'nStore Group PLC said that its revenue rose during the first half of the financial year on higher occupancy levels.

For the six months to the end of January, the self storage firm reported revenue up 7.7% on the prior year. Revenue in the firm's core segment self storage was up 9.2%.

At the end of January, self-storage unit occupancy was up 8.0% on the same period a year ago, while the price per let square foot was up 1.4%.

During the half, in line with its tactical approach to sell assets and capital allocation, Lok'n Store disposed of its document storage business, Saracen Datastore Ltd for GBP7.64 million in cash. This was higher than the unit's net book value at the end of July of GBP5.4 million.

"Disposal proceeds will be used to fund the ongoing investment into Lok'nStore's highly accretive development pipeline of new landmark self storage centres, fulfilling the company's objective of growing asset value by recycling capital from lower growth assets into high growth landmark stores," Lok'n Store said.

Furthermore, two new sites were acquired in Stevenage and Wolverhampton with the company planning to develop them into landmark stores.

Following the development of the new sites, Lok'n Store will be operating from 41 locations of which 21 are held freehold, 8 leasehold and 12 are managed stores.

Lok'n Store will publish its interim results on April 29, their shares were trading up 2.4% at 430.00 pence each.