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Safestore investing in growth

a view of Safestore's site in old trafford manchester

Safestore says that over the year ended 31 October 2024, its EPRA NAV rose by 14.6% to 1091p from 952p, but adjusted diluted EPRA earnings per share fell by 11.7% to 42.3p. Revenue was flat at £223.4m The occupancy rate fell to 74.6% from 77.0% of the maximum lettable area (MLA). There is a 1% increase in the dividend for the year to 30.4p.

A fall in underlying EBITDA is said to reflect market inflationary pressures on key cost lines and the impact of new developments.

In other key highlights:

Strategic progress

  • Opening of ten new stores and extensions in the year with a further five opened following year end, adding a total of 386,000 sq ft of MLA
  • Development pipeline of an additional 26 stores with a total of 1.3m sq ft MLA, equivalent of 16% of the portfolio at year end with potential to add, together with other open non like-for-like stores, £35m-£40m of future EBITDA
  • Acquisition of 19,800 sq ft trading store in Chelsea Embankment, London
  • Purchase of the freehold interests of two stores in Le Marais (Paris) and Manchester
  • Continued growth of German joint venture portfolio with three development opportunities secured in the year
  • Following year end, entered into a joint venture with Nuveen to acquire the EasyBox self-storage business in Italy with ten operating stores and two under development totalling 780,000 sq ft of MLA. This follows the Group strategy of entering high-potential markets with low levels of supply alongside partners. Safestore will operate the business, leveraging Group capabilities

Strong and flexible balance sheet

  • 13.6% increase in property revaluation (including investment properties under construction) to £3,284.1m (FY 2023: £2,890.9m)
  • Exercise of revolving credit facility (RCF) accordion option to increase facility size by £100.0m to £500.0m.
  • Exercise of RCF extension option to increase maturity date by one year to November 2028
  • Net debt £899.5m (FY 2023: £810.3m). Group loan-to-value ratio (LTV) at 25.1% (FY 2023: 25.4%) and interest cover ratio (ICR) at 4.3x (FY 2023: 6.7x)
  • Ample liquidity with unutilised bank facilities of £144.3m at 31 October 2024 (FY 2023: £197.0m)
  • €51.0m US private placement (USPP) matured and repaid in FY 2024 and in December 2024, following year end, new €70.0m USPP issued with an eight-year term

SAFE : Safestore investing in growth

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