UK Self-Storage Operator Safestore Releases Financial Results for Period Ending July 31

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the third quarter of its 2016 fiscal year, which ended July 31. The report indicates Safestore experienced growth in revenue, rental rates and occupancy at its self-storage facilities in France and the United Kingdom.

Total revenue for the period was up 4.5 percent to £28.6 million, with “like-for-like” growth for the group up 6.6 percent, using constant exchange rate, in both operating regions. Same-store revenue in the U.K. grew 7.5 percent, while the company’s Paris business increased 2.3 percent compared to the same period in 2015.

Occupancy across the company’s portfolio was 74.8 percent at the end of the period, an increase of 2.6 percent. U.K. occupancy was 73 percent, up three points from a year ago. Rental rates increased 3 percent in the U.K. year over year. In France, occupancy was 82 percent, up 1.2 percent from a year ago, while rental rates increased 0.6 percent.

"I am pleased to report continuing positive trading across the business and we remain, as ever, focused on the significant organic growth opportunity represented by our 1.2 million square feet of currently unlet space from the existing estate,” said Frederic Vecchioli, CEO. “Market dynamics remain favorable and, combined with positive current trading and the impact of the recent weakening of Sterling on the translation of our Parisian results, as we approach the end of the current financial year, we are confident in generating cash tax adjusted earnings slightly ahead of current market expectations.”

Safestore completed its acquisition of Space Maker Stores Ltd. on July 29. After downward adjustments, the final purchase price was £40.9 million. The deal adds 12 U.K. locations to the company’s portfolio. Subsequent to the end of the quarter, the company also opened a 33,200-square-foot facility in the London borough of Wandsworth. It has four projects comprising 192,500 square feet under development.

Safestore operates 131 self-storage facilities, including 95 facilities it owns in the U.K. and 24 in France. Its wholly owned properties comprise more than 5 million square feet of storage space, while its entire portfolio serves approximately 49,000 customers.