Safestore to focus on filling empty space

Safestore has published results for the year ended 31 October 2014 that show its EPRA NAV growing by 3.6% to 218p, an increase in the dividend from 5.75p to 7.45p. They reported a fall in earnings per share from 57.8p to 23.2p (-60%) but there was a 31.8p per share impact from a deferred tax credit that arose as they converted to REIT status – cash tax adjusted earnings per share rose by 21.6%.

There was a small fall in the average storage rate – from £24.39 to £24.24 but they say the trend at the end of the year and since is positive. Occupancy at the end of the year was up from 65.3% to 68.8% but they still had 1.6m sq ft of space unoccupied. they say that reducing this is their focus for 2015.

The loan to value ratio fell to 37% as debt was reduced by £75m, principally financed by the sale of their Whitechapel site for net proceeds of £40.5m, the January 2014 equity placing of 18.6m new ordinary shares at 175p per share, raising net proceeds of £31.6m, and from internally generated free cash flow.

SAFE : Safestore to focus on filling empty space