REG - Lok'nStore Group - Trading Update

Lok'n StoreAnnouncement

28/06/2023 07:00

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RNS Number : 1187E  Lok'nStore Group PLC  28 June 2023

28 June 2023

Lok'nStore Group plc

Property, new store pipeline and trading update

The board of Lok'nStore Group plc, the fast-growing self-storage company, is
pleased to announce the following property and new store pipeline update.

Highlights

v New Landmark freehold store opened in Peterborough

v Positive planning permission news at two Landmark freehold pipeline sites

v Continued buoyant H2 trading

Further new store pipeline progress

Our new Landmark freehold store in Peterborough opened on 27 June 2023.  This
46,000 sq. ft. store has a total project cost of £7.5 million.  With both
Peterborough and the Bedford store (opened February 2023) now open and trading
they will be independently valued by JLL as a trading asset for the first time
at our July 2023 year-end. The Board anticipates each to be NAV accretive at
first-time valuation.  Early trading at Bedford continues to be excellent.

Building work continues at our new Landmark store developments in Staines
(long-leasehold) and Kettering (managed store). At Basildon (leasehold) we are
now fitting out the building, all of which will be open in the next 12 months,
adding a further 162,100 sq. ft. of trading space to the undersupplied UK
self-storage market.

Planning permissions update

 

We have received an indicative intention to formally grant planning permission
under delegated powers in Barking, Greater London, subject to the agreement of
planning conditions.  At c.84,000 sq. ft, this freehold Landmark store will
be our biggest store to date when it opens.

 

We have also received a grant from the Planning Committee for our updated
planning permission at our freehold site in Cheshunt, Hertfordshire, subject
to the agreement of planning conditions.  With this permission we intend to
build a c.60,000 sq. ft Landmark store along with retail space for a discount
food retailer. They will pay a lease premium to Lok'nStore on completion of
planning matters and a further payment to Lok'nStore on completion of the
building.  The net remaining capital expenditure to complete this project is
c.£6.5 million.

 

Trading momentum continues

Our total secured pipeline of 10 new stores will result in the Group operating
52 stores when fully developed, increasing the owned store trading space by
37.7%.

Trading continues to be buoyant with H2 stores' revenue expected to be up
c.10.5% year on year.

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

"Trading continues to be excellent with store revenue expected to be up
c.10.5% in the 2(nd) half of our financial year ending 31(st) July 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 of 10 stores will add considerable momentum to earnings
growth in the coming years.  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

 Neil Newman, Managing 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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