REG - Lok'nStore Group - Trading Update

Lok'n StoreAnnouncement

13/02/2023 07:00

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RNS Number : 6496P  Lok'nStore Group PLC  13 February 2023

13 February 2023

Lok'nStore Group plc

Trading update

Continued trading momentum

Lok'nStore, the fast-growing self-storage company, is pleased to provide the
following update on trading for the six months to 31 January 2023.

Highlights:

o  Same store* revenue up 10.3%

o  Same store occupied unit space up 2.6%

o  Price per square foot up 9.2%

o  Move-ins up 13.5%

o  Net Asset Value expected to be broadly unchanged at year-end

o  Significant development of new store pipeline

Trading momentum continues

Trading in the six months to 31 January 2023 has remained buoyant.  Move-ins
in the period were up 13.5% and same-store* revenue was up 10.3% on the same
period last year.  Price per square foot of occupied space was up 9.2%.
Continued strong demand and good occupancy levels give us further pricing
momentum going forward.  Same-store occupied unit space was up 2.6% over 12
months.

As anticipated, we are seeing some cost pressure, specifically in the areas of
business rates and energy.  We believe these cost movements are shorter term
and expect the rate of cost growth to return to more normalised levels in due
course.  Beyond that we would expect any increases in absolute cost levels to
be driven mainly by the increasing number of stores.  Separately to our
operating costs, we are seeing loan interest costs rising because of Bank of
England base rate increases. We remain conservatively geared with a net Loan
to Value of c.8.8%

Net Asset Value broadly unchanged

Our trading assets will be independently revalued at our 31 July 2023 year
end.  The maiden valuations of three new stores combined with continuing
strong trading should materially offset any changes in exit yields and
discount rates that we are seeing in the market.  We therefore expect the Net
Asset Value per share at the end of FY23 to be broadly unchanged from the
£9.72 per share at the end of FY22.

Significant development of new store pipeline to drive growth

Building and fit out work continues at our new Landmark store developments in
Bedford, Peterborough, Staines and Basildon, all of which will be open in
calendar 2023.   Kettering is also on site for a managed store client and
due to open in early 2024.

When developed our current pipeline will add 48.8% to our owned trading space.
We continue to see a number of opportunities beyond the secured pipeline.

Interim results for the six months to 31 January 2023 will be announced on
Monday 24 April 2023

Commenting on trading in the six months to 31 January 2023 Andrew Jacobs,
Chair of Lok'nStore, said:

"Trading in the first half of FY23 has been buoyant with same-store revenue up
10.3%. Move- ins in the period were 13.5% ahead of the same period last year
and demonstrates the continued strong consumer demand for self-storage.

"When fully developed our current new store pipeline will add 48.8% to our
owned trading space. As we open new stores and build their occupancy, so their
value increases significantly.  The cash flow from these stores can then fund
future growth and an increasing dividend to our shareholders."

* Same Store excludes the effect of new stores open in 2022 and the four
stores sold on a sale and manage back basis in January 2022.

-Ends-

 Enquiries:

 Lok'nStore                                       01252 521 010

 Andrew Jacobs, Chair

 Ray Davies, Finance Director
 finnCap Ltd                                      020 7220 0500

 Julian Blunt/Seamus Fricker, Corporate Finance

 Alice Lane, Corporate Broking
 Peel Hunt LLP                                    020 7418 8900

 Capel Irwin/Carl Gough/Henry Nicholls
 Camarco                                            020 3757 4991

 Billy Clegg/Tom Huddart/Letaba Rimell

 

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