Safestore Interim Results, June 2015

18th June 2015

Self storage operator, Safestore, have released their interim results for June 2015, some of the highlights of which are:
Improving Operational Delivery:
  •    Good performance across the UK with enquiry growth, increased conversion and continued strong new lets.
  •    Closing occupancy up 3.4 ppts in the UK.
  •    UK average rate growth of 7.5% in the period with improved move-in rates.
  •    National Accounts UK business space grows 25%.
  •    Continuing robust Paris performance growing occupancy, rate and revenue.
  •    Acquisition of High Wycombe freehold and a further five leasehold extensions since the end of last financial year.
  •    Planned redevelopment of Wandsworth store increasing MLA by 25,000 sq ft.
Good Financial Performance:
  •   Group like-for-like revenue up 11.2% and closing occupancy up 3.6 ppts.
  •   Like-for-like revenue growth of 13.4% in the UK and 5.9% in Paris.
  •   Cash Tax Adjusted Earnings per Share up 26.7% at 7.6 pence.
  •   Interim dividend of 3.0p, increased by 40% since April 2014.
  •   Full year Cash Tax Adjusted Earnings Per Share to be in line with Board expectations.
Frederic Vecchioli, Safestore's Chief Executive Officer, commented:
"The key initiatives taken over the last 18 months to enhance operational performance are now reflected in sustained and improved trading. Growing enquiries, stronger conversion and improved pricing has driven double digit like-for-like growth in the UK, while our strongly positioned Parisian business has delivered a robust performance and its seventeenth year of consecutive growth, reflecting its market leading position.
"Although it is still early in the second half of the financial year, I am confident that the progress we have made to date will be reflected in the financial results for the full year and that we will deliver cash tax adjusted earnings per share in line with Board expectations.
"As our positive momentum continues I look forward to the opening of our two London developments at Chiswick in 2016 and Wandsworth, announced today, in 2017 and to considering further selective development and acquisition opportunities in our key markets."