Storage firm Safestore hails ‘excellent’ UK trading
Safestore, the self-storage firm, said full-year earnings are likely to hit the top end of expectations following strong trading in the first quarter, driven by an “excellent” UK result.
Group revenue was up 9.8 per cent and like-for-like sales were up 6.6 per cent, with a 8.3 per cent surge in UK sales.
Occupancy increased 6.8 percentage points, reaching 80.6 per cent. However like-for-like average rates dipped 0.9 per cent during the quarter ended 31 January.
The UK – where Safestore has recently opened sites in Carshalton, Sheffield and Gateshead – performed “very strongly”, with regional sites slightly out-performing London and the south east.
It said it anticipates its pipeline growing over the current months, and will “consider strategic, value-accretive investments as and when they arise”.
Safestore said that – if current momentum continues – it expects earnings per share for the year to be towards the top range of analyst forecasts.
Frederic Vecchioli, Safestore chief executive, said: “I am pleased to report that the strong performance of the final quarter of our 2020 financial year has continued throughout the first quarter of 2021 driven by an excellent UK result, complemented by solid performances from Paris and Spain. In addition, our JV with Carlyle, operating in Belgium and the Netherlands, is performing in line with its business plan.”
“Our priority, and largest opportunity, remains the significant upside from filling the 1.4m square feet of fully invested currently unlet space in our UK, Paris and Barcelona markets,” he added.
“Whilst the potential for disruption arising from current Covid restrictions remains, the inherent resilience of our business model as well as our recent and current trading allows me to look forward with confidence.
“The first quarter’s trading performance has provided us with a strong base for the rest of the financial year and, if the current momentum continues, we would anticipate that the business delivers Adjusted Diluted EPRA Earnings per Share for 2020/21 towards the top of the range of analysts’ forecasts”.