Register Log-in Investor Type

News

Lok’nStore’s development pipeline to add 33% to portfolio

Lok'nStore's development pipeline to add 33% to portfolio

AIM-listed self-storage company Lok’nStore has said its development pipeline will add 33.1% to the lettable area of its portfolio.

The company gave an update on its new store development pipeline which comprises:

  • The exchange of contracts to purchase a new 56,000 sq ft store in Staines that is due to open in 2022;
  • The purchase of a site in Peterborough with planning to be submitted for a 50,000 sq ft store;
  • Granted a resolution to grant planning permission for its largest ever store, in Bournemouth, of 76,000 sq ft; and
  • Construction underway at sites in Warrington, Salford, Stevenage and Wolverhampton.

In total the new developments will add 592,700 sq ft of lettable space to its portfolio. The group’s total secured store pipeline is now 11 sites which will take it to 47 stores when fully developed.

The new stores will be funded out of its existing revolving credit facility, operating cash flow, and proceeds of sale of surplus land and managed stores.

It said net debt would rise to around £60m in 2023 and the loan-to-value ratio (LTV) will increase to between 20% and 25%.

Andrew Jacobs, executive chairman, said: “We continue to execute on our objective to open more stores whilst maintaining the strength of our balance sheet and remaining conservatively geared. In recent months we have continued to progress the development of our new store pipeline with further new acquisitions and commencement of building works.

“Our total secured pipeline is now 11 stores and we are on site at four of these that will open by the beginning of 2022. The pipeline of new stores will add considerable momentum to sales and earnings growth allowing further increases in dividends.”

LOK : Lok’nStore’s development pipeline to add 33% to portfolio

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…