Safestore comfortable with outlook after 'robust' first half
Self storage operator saw a slight dip in interim underlying profits due to declines in occupancy levels and rental rates, but said it remains "comfortable" with full-year expectations, with third-quarter trends consistent with the first half.
Frederic Vecchioli, Safestore's chief executive, said the company delivered a "robust first-half performance while investing in the future growth pipeline", with four new stores set to open in the second half, and 16 new stores earmarked for next year and beyond.
"Safestore in the UK is facing well documented inflationary cost headwinds, but we have identified cost savings which will help mitigate some of the impact of these in the full year and into next year," Vecchioli said.
Underlying EBITDA totalled £66.1m over the six months to 30 April, down 1.5% over last year despite a 3.3% increase in revenues to £112.8m.
While the current lettable area expanded by 6.6% to 8.58m square feet, the occupancy level fell 1.8 percentage points to 74.4% of the current lettable area. The average storage rate also fell to £29.98/sq ft from £30.16/sq ft.
Statutory operating profits were down 39.4% at £112.9m as a result of a lower gain from investment properties revaluation, which fell to £49.5m from £121.7m last year.
Shares were up 3.6% at 646/5p by 0810 BST.
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