REG - Lok'nStore Group - Property and new store pipeline update

Lok'n StoreAnnouncement

24/05/2023 07:00

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RNS Number : 4161A  Lok'nStore Group PLC  24 May 2023

24 May 2023

Lok'nStore Group plc

Property and new store pipeline update

The board of Lok'nStore Group plc, the fast-growing self-storage company, is
pleased to announce a number of new value creating transactions.

Highlights

·    Completion of a new 20-year lease at our existing Eastbourne store

·    Contracts exchanged for new Landmark Managed Store in Bromborough,
Wirral

·    New Landmark store development continues with four new stores
expected to open in the next 12 months

·    Excellent trading at our recently opened Landmark store in Bedford

·    Trading is buoyant with stores revenue up 13.2% year on year for the
quarter ending April 2023.

New lease

We are pleased to announce the completion of a new lease for our existing
Eastbourne store.  The new lease runs for twenty years with a tenant only
break clause after five years.  As with all other leased stores within the
Group's portfolio, the new lease benefits from being within the terms of the
1954 Landlord and Tenant Act. The store has been trading successfully since
its opening in 2003.

New store

 

Contracts have been exchanged on a site for a new 49,500 sq. ft. Landmark
store in Bromborough, Wirral.   The site, which already benefits from
planning permission, will be owned by an existing Managed Store client.
Through our well-established Managed Store program, Lok'nStore will receive
one off fees for finding and securing the site, development advice and use of
the Lok'nStore brand.  Once open, we will receive a recurring monthly
management fee as a percentage of revenue and a valuable additional recurring
performance fee once returns reach an agreed level.

 

We expect the developer to be onsite in the coming months with the store
expected to open in late 2024.

Further new store pipeline progress

The new Landmark store in Bedford opened in February 2023 and early trading
has been excellent.  Building work continues at our new Landmark store
developments in Peterborough, Staines, Basildon and Kettering, all of which
will be open in the next 12 months, adding a further 208,000 sq. ft. of
trading space to the undersupplied UK self-storage market.

Our total pipeline of 11 secured new stores will result in the Group operating
52 stores when fully developed. Of the 11 pipeline stores, 6 have planning
permission, of which 4 are on site.

Beyond our secured pipeline, we have four more sites progressing with lawyers
and continue to see many opportunities beyond this.  This pipeline of new
stores will add considerable momentum to sales and earnings growth over the
medium term.

 

Trading momentum continues

 

Trading continues to be buoyant with stores revenue up 13.2% year on year for
the quarter ending April 2023.

Commenting on the recent progress Andrew Jacobs, Chair, said:

"Trading continues to be excellent with stores revenue up 13.2% year on year
in the quarter ending April 2023.  We continue to deliver on our objective of
opening more Landmark stores whilst maintaining the strength of our balance
sheet and remaining conservatively geared.

"Our secured pipeline is now 11 stores which will add considerable momentum to
earnings growth in the coming years, and we are continually assessing more new
sites.  The transactions announced today, will add further value to the
group, and demonstrates that Lok'nStore is well positioned to build and open
more new stores in the under-supplied UK self-storage market".

-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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