UK Self-Storage Operator Safestore Releases Financial Results 2017 Fiscal Year

U.K. self-storage operator Safestore Holdings PLC has released a financial statement for its 2017 fiscal year, which ended Oct. 31. The report indicates the company experienced growth in revenue, rental rates and occupancy at its self-storage facilities in France and the United Kingdom.

Total revenue for the year was up 10 percent to £129.9 million, with “like-for-like” growth for the group up 3.3 percent, using constant exchange rate, in both regions. Same-store revenue in the U.K. grew 3.1 percent, while the company’s Paris business increased 4 percent compared to the previous year. Despite the growth, pre-tax profit was down 16.9 percent for the year, which the company attributed to “exceptional refinancing costs” of £16.3 million.

Occupancy across the company’s portfolio was 72.6 percent at the end of the period, an increase of 1.6 percent. Same-store occupancy was 75 percent, an increase of 1.3 percent. U.K. occupancy was 71.6 percent, up 1.9 percent from a year ago, while rental rates in the region declined .7 percent year over year, though same-store facilities increased rates .9 percent. In France, occupancy across the entire portfolio was 76.6 percent, up .3 percent from a year ago, while rental rates increased 1.1 percent.

"We have had a successful year through a combination of organic and acquisitive growth combined with a strong operational performance. Over the last 18 months, our market-leading positions in the U.K. and Paris have been consolidated, supported by the acquisitions of Space Maker and Alligator Self Storage, which added 24 stores to the U.K. portfolio and boosted earnings from the outset,” said Frederic Vecchioli, CEO. “Organically, we have developed and opened six new stores in the U.K. and Paris, with a pipeline of a further four new stores opening in London, Birmingham and Paris.

"We enter the new financial year in a strong position with substantial growth potential from the integration of Alligator Self Storage and the development of three new sites,” Vecchioli continued. “However, our priority and the largest opportunity remains the significant upside from our 1.7 million square feet of invested unlet space. We remain confident in the future and focused on the continued delivery of value to all shareholders."

Safestore operates 146 self-storage facilities, including 120 facilities it owns in the U.K. and 26 in France. Its wholly owned properties comprise more than 5.7 million square feet of storage space, while its entire portfolio serves approximately 60,000 customers.