Safestore Final Results
8th January 2019
Strong Financial Performance:
- Group revenue for the year up 10.8%.
- Like for like Group revenue for the year up 5.2%.
UK up 5.2%.
- Paris up 5.1%
Underlying EBITDA up 11.0% which, combined with a gain on investment properties of £122.1m, drove an increase in Profit before tax of 134.9%.
Adjusted Diluted EPRA Earnings per Share up 15.5% at 26.8 pence; 13.8% increase in the final dividend to 11.15 pence giving a total for the year of 16.25 pence.
- Continued balanced approach to revenue management drives returns.
- Like for like closing occupancy of 76.6%.
- Like for like average occupancy for the year up 4.8%.
- Like for like average storage rate for the year up 0.2% with improving momentum as the year progressed underpinned by continuing improvements in marketing and pricing analytics.
- Total average storage rate down 3.3% reflecting dilutive impact of Alligator acquisition and new store openings.
- Alligator and new stores trading well and in line with business plans.
- Twelve Alligator stores acquired on 1 November 2017 for £55.9m now integrated into the business.
- Three new stores opened in the year at London Paddington Marble Arch, London Mitcham and Paris Poissy.
- Four new stores in the pipeline with 210,000 sq ft of new space scheduled to open in London Carshalton, Birmingham Merry Hill, Paris Pontoise and Paris Magenta.
Strong and Flexible Balance Sheet:
- Bank Facilities extended to June 2023.
- 20.9% increase in property valuation driven by the Alligator acquisition, reduced exit cap rates and revised stabilised occupancy assumptions.
- Group loan to value ratio at 31 October 2018 at 30% and interest cover ratio at 8.6x.
- After nearly ten years with the Group, in accordance with good governance recommendations, Chairman Alan Lewis
intention to retire from the Board.
Frederic Vecchioli, Safestore's Chief Executive Officer, commented:
"We have delivered another successful year of growth characterised by strong organic performance, efficient integration of our recent acquisitions and good performances from our recently opened new stores. The fully integrated Alligator portfolio of twelve stores, acquired at the beginning of the financial year, is performing well. We have continued to
high quality sites to open new stores and have successfully added four new stores to the pipeline which means we plan to open new stores in London-Carshalton, Paris-Pontoise, and Birmingham-Merry Hill during 2019, and subject to planning, Paris-Magenta in 2020.
Our strong balance sheet continues to provide the flexibility to target selected development and acquisition opportunities as they arise.
Over the last five years, the like for like occupancy has increased on average by 2.7ppts per year, moving from 63.1% to 76.6%. The Company is in an excellent position and, as ever, our top priority remains the significant organic growth opportunity represented by the 1.7m square feet of currently unlet space in our existing fully invested estate.
The start to the current financial year has been encouraging in all our geographies and our leading market positions in the UK and Paris, combined with our resilient business model, enable us to look forward to the future with confidence."