REG - Safestore Hldgs plc - 1st Quarter Trading Update

Safestore HoldingsAnnouncement

20/02/2025 07:15

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RNS Number : 7768X  Safestore Holdings plc  20 February 2025

 

20 February 2025

 

Safestore Holdings plc

First quarter trading update for the period 1 November 2024 to 31 January 2025

 

Improving LFL growth across all markets supported by growth from opened
developments

 

 Key Measures - Total                                                        Q1 2025(1)  Q1 2024  Change    Change

                                                                                                            CER(2)
 Group
 Revenue (£'m)                                                               56.7        55.3     2.6%      3.5%
 Closing Occupancy (let sq ft - million)(3)                                  6.36        6.11     4.1%
 Closing Occupancy (% of MLA)                                                71.5%       74.3%    (2.8ppt)
 Maximum Lettable Area (sq ft - million) (4)                                 8.90        8.21     8.2%
 Average Storage Rate (£)                                                    29.76       30.06    (1.0%)    0.0%
 REVPAF (£)(5)                                                               25.63       26.83    (4.5%)    (3.7%)

 

 Key Measures - Like-For-Like(6)                                              Q1 2025  Q1 2024  Change  Change

                                                                                                        CER
 Group
 Revenue (£'m)                                                                55.8     54.8     1.7%    2.9%
 Closing Occupancy (let sq ft - million)                                      6.25     6.11     2.3%
 Closing Occupancy (% of MLA)                                                 75.9%    74.5%    1.4ppt
 Average Occupancy (let sq ft - million)                                      6.23     6.13     1.6%
 Maximum Lettable Area (MLA)                                                  8.23     8.20     0.3%
 Average Storage Rate (£)                                                     29.88    30.07    (0.6%)  0.4%
 REVPAF (£)                                                                   26.94    26.63    1.2%    2.2%

 

Highlights

·     Group revenue for the quarter in CER increased 3.5% year on year with
contribution from both LFL and new stores

·     Like-for-like Group revenue for the quarter in CER up 2.9%

·     Like-for-like UK revenue for the quarter up 1.2%

·     Like-for-like average rate for the quarter up 0.4% in CER

·     Like-for-like closing occupancy at 75.9% (FY 2024: 74.5%)

·     Opening of six new stores and one extension during Q1 2025 adding
304,100 sq ft of MLA

·     Group Property Pipeline of 1.30m sq ft representing 14.6% of the
portfolio as at 31 January 2025

 

Frederic Vecchioli, Chief Executive Officer, commented:

 

"We have delivered improving revenue growth in all markets in the first
quarter.

 

In particular, we are pleased to see like-for-like occupancy in the UK
continuing the improving trajectory we saw in the second half of last year led
by strong domestic demand with space occupied by these customers closing the
quarter 7.3% ahead of last year.

 

In addition, we have seen strong growth levels in Expansion markets delivering
a 30.6% increase in revenue in the quarter, with all countries contributing,
demonstrating the opportunity from our new, stabilising and mature
like-for-like stores in these markets.

 

We continue to make progress in opening our pipeline of stores in line with
the programme we disclosed in January with six new stores and an extension
opening in the quarter, adding over 300,000 sq ft of MLA to the portfolio. Our
future development pipeline includes a further seven stores projected to open
this year, with a total 8% increase in MLA projected for the year.

 

Whilst there remain macroeconomic uncertainties, we are confident of the
position of the Group to realise the opportunities for growth across our
markets from both our existing portfolio and our development pipeline."

 

 

Trading Performance

 

Total Group

 

 Revenue (millions)                 Q1 2025   Q1 2024   Change     Change

                                                                   CER
 Group (GBP)                        £56.7     £55.3     2.6%       3.5%
 UK (GBP)                           £41.0     £40.4     1.4%
 Paris (EUR)                        €12.9     €12.6     2.3%
 Expansion markets (EUR) (7)        €5.9      €4.5      30.6%

 Average Rate (per sq ft)           Q1        Q1        Change     Change

2025
2024

                                                                   CER
 Group (GBP)                        £29.76    £30.06    (1.0%)     0.0%
 UK (GBP)                           £30.17    £30.23    (0.2%)
 Paris (EUR)                        €42.13    €41.42    1.7%
 Expansion markets (EUR)            €23.85    €22.60    5.5%

 REVPAF (per sq ft)                 Q1        Q1        Change     Change

2025
2024

                                                                   CER
 Group (GBP)                        £25.63    £26.83    (4.5%)     (3.7%)
 UK (GBP)                           £27.40    £27.94    (1.6%)
 Paris (EUR)                        €35.78    €36.82    (2.8%)
 Expansion markets (EUR)            €16.75    €17.17    (2.5%)

 Closing Occupancy (million sq ft)  Q1        Q1        Change

2025
2024
 Group                              6.36      6.11      4.1%
 UK                                 4.45      4.31      3.2%
 Paris                              1.11      1.11      0.0%
 Expansion markets                  0.80      0.69      16.8%

 Closing Occupancy (% of MLA)       Q1        Q1        Change

2025
2024
 Group                              71.5%     74.3%     (2.8ppt)
 UK                                 74.4%     74.4%     0.0ppt
 Paris                              77.0%     81.5%     (4.5ppt)
 Expansion markets                  54.1%     64.6%     (10.5ppt)

 MLA (million sq ft)                Q1        Q1        Change

2025
2024
 Group                              8.90      8.21      8.2%
 UK                                 5.98      5.80      3.1%
 Paris                              1.44      1.36      5.7%
 Expansion markets                  1.48      1.05      39.4%

 

 

Like-for-like

 

 Revenue (millions)                 Q1 2025   Q1 2024   Change
 Group (GBP at CER)                 £56.3     £54.8     2.9%
 UK (GBP)                           £40.4     £40.0     1.2%
 Paris (EUR)                        €12.8     €12.6     1.7%
 Expansion markets (EUR)            €5.6      €4.5      22.9%

 Average Rate (per sq ft)           Q1        Q1        Change

2025
2024
 Group (GBP at CER)                 £30.20    £30.07    0.4%
 UK (GBP)                           £30.16    £30.23    (0.2%)
 Paris (EUR)                        €42.37    €41.42    2.3%
 Expansion markets (EUR)            €24.31    €22.62    7.4%

 REVPAF (per sq ft)                 Q1        Q1        Change

2025
2024
 Group (GBP at CER)                 £27.21    £26.63    2.2%
 UK (GBP)                           £27.72    £27.56    0.6%
 Paris (EUR)                        €37.01    €36.82    0.5%
 Expansion markets (EUR)            €21.10    €17.21    22.6%

 Closing Occupancy (million sq ft)  Q1        Q1        Change

2025
2024
 Group                              6.25      6.11      2.3%
 UK                                 4.41      4.31      2.1%
 Paris                              1.10      1.11      (1.2%)
 Expansion markets                  0.75      0.69      9.3%

 Closing Occupancy (% of MLA)       Q1        Q1        Change

2025
2024
 Group                              75.9%     74.5%     1.4ppt
 UK                                 76.1%     74.6%     1.5ppt
 Paris                              79.2%     81.5%     (2.3ppt)
 Expansion markets                  70.7%     64.7%     6.0ppt

 MLA (million sq ft)                Q1        Q1        Change

2025
2024
 Group                              8.23      8.20      0.3%
 UK                                 5.79      5.79      0.0%
 Paris                              1.38      1.36      1.7%
 Expansion markets                  1.05      1.05      0.0%

 

UK

Trading performance in the UK continued to improve in Q1 2025 with
like-for-like revenue up 1.2% year on year. This was driven by stable average
rates, down 0.2%, with an improvement in occupancy which closed the quarter
2.1% higher than prior year.

 

The like-for-like occupancy position reflects a continuation of the steadily
improving trajectory seen through the second half of FY 2024. This positive
momentum is driven by increasing domestic demand, with space occupied by these
customers increasing 7.3% year on year (FY 2024: 4.3% increase).

 

Partially offsetting the strong domestic occupancy, demand from business
customers remained soft, with a 4.4% year on year decline in occupied space
year on year (FY 2024: 6.0% decline), but is showing signs of stabilisation.
In order for us to better serve our changing customer base, we are continuing
with our programme of partitioning larger units, over 250 sq ft, into smaller
ones.

 

Total revenue in the UK also has the benefit of an additional £0.6m income
from newly opened stores and extensions. REVPAF for all stores declined by
1.6% year on year which reflects the opening of new space yet to fully fill;
on a like-for-like basis REVPAF grew 0.6%.

 

Paris

In Q1 2025, like-for-like revenue grew 1.7%. The growth in the quarter
continues to be driven by improving rental rates which were up 2.3% year on
year offset by a 1.2% year on year decline in closing occupancy.

 

Expansion markets

Overall expansion markets delivered 22.9% like-for-like revenue growth in Q1
2025 with positive momentum in all markets.

 

In Q1 2025 like-for-like growth in Spain of 32.6% was driven by improvement in
occupancy, supported by immature stores moving towards stabilisation. In the
Netherlands, like-for-like growth was 13.2% led by increased rental rates and
with the support of closing occupancy 3.6% higher than last year.
Like-for-like revenue in Belgium grew 19.9% in the quarter where we continue
to see strong increases in both rental rates and occupancy levels.

 

In addition, new stores and expansions contributed an additional €0.3
million in revenue in the quarter, taking total revenue year on year growth to
30.6% for the quarter.

Acquisitions

In Q1 2025, we entered into a 50/50 joint venture with Nuveen Real Estate to
acquire the Italian self-storage provider EasyBox for €175m. This consists
of ten complete stores and two turn-key developments across Italy's main
economic regions, with a total MLA of 780,000 sq ft. The Italian market holds
the potential for strong growth with low levels of self-storage supply at just
0.03 sq ft of space per capita and a number of wealthy, densely populated
urban areas.

 

Openings

 

In Q1 2025 we completed the development of six new stores alongside one
extension, adding 304,100 sq ft of MLA to the Group.

 

Opened Q1 2025

                                    FH/LH  MLA    Type
 New Developments
 London - Lea Bridge                FH     80.9   New Build
 London - Walton                    FH     20.7   Conversion
 Madrid - North East (Barajas)      FH     57.2   Conversion
 Madrid - South West (Carabanchel)  FH     45.4   Conversion
 Barcelona - Central 2 (Manso)      LH     20.0   Conversion
 Pamplona                           FH     64.5   Conversion
 Extensions
 Paris - Pyrénées                   LH     15.4   Extension
 Total opened in Q1 2025                   304.1

 

Pipeline

 

We have a total pipeline of 24 developments and extensions opening in the
remainder of FY 2025 and beyond which is expected to add a total of 1.30
million sq ft, representing 14.6% of portfolio MLA as at end of Q1.

 

There is a pipeline of seven stores with 378,800 sq ft of MLA projected to be
opening during the remainder of FY 2025. This brings a total additional MLA
projected to be delivered in FY 2025 to 682,900 sq ft.

 

Remaining 2025 Opening (all New Developments)

                                   FH/LH  MLA    Type                Status
 Paris - East 1 (Noisy-le-Grand)   FH     60.0   Conversion          C, UC
 Paris - West 3 (Mantes-Buchelay)  FH     58.0   New Build           C, UC
 Paris - North West 1 (Taverny)    FH     54.0   Conversion          C, UC
 Paris - La Défense                FH     44.0   Mixed-Use Facility  C, UC
 Randstad - Amsterdam              FH     65.4   New Build           C, UC
 Randstad - Utrecht                FH     50.0   Conversion          C, UC
 Brussels - Zaventem               FH     47.4   New Build           C, UC
 Total remaining to open in 2025          378.8

 

2026 Opening (all New Developments)

                            FH/LH  MLA    Type        Status
 London - Woodford          FH     68.7   New Build   C, UC
 London - Watford           FH     57.5   New Build   C, UC
 London - Wembley           FH     55.3   New Build   C, UC
 London - Kingston          FH     55.0   New Build   CE, STP
 London - Romford           FH     41.0   New Build   C, PG
 Norwich                    FH     52.7   New Build   C, STP
 Hemel Hempstead            FH     51.3   New Build   CE, PG
 Shoreham                   FH     47.1   New Build   CE, PG
 Paris - West 4 (Orgeval)   FH     53.0   New Build   C, UC
 Paris - West 1 (Conflans)  FH     56.0   New Build   C, PG
 Paris - Colombes           FH     65.5   Conversion  C, PG
 Madrid - Perseo            FH     18.5   Conversion  C, PG
 Total opening in 2026             621.6

 

Beyond 2026 Opening (all New Developments)

                            FH/LH  MLA    Type       Status
 London - Old Kent Road     FH     75.6   New Build  C, STP
 London - Belvedere         FH     56.3   New Build  C, STP
 London - Bermondsey        FH     50.0   New Build  C, STP
 Welwyn Garden City         FH     51.0   New Build  CE, STP
 Barcelona - Hospitalet     FH     64.3   New Build  C, STP
 Total opening beyond 2026         297.2

 

MLA:

Maximum Lettable Area measured to the nearest thousand square feet

 

Status:

C = completed, CE = contracts exchanged, STP = subject to planning, PG =
planning granted, UC = under construction

 

Ends

 

 

1 - Q1 2025 is the quarter ended 31 January 2025

2 - CER is Constant Exchange Rates (Euro denominated results for the current
period have been retranslated at the exchange rate effective for the
comparative period, in order to present the reported results on a more
comparable basis)

3 - Occupancy excludes offices but includes bulk tenancy. As of 31 January
2025, closing occupancy includes {18,000 sq ft} of bulk tenancy (31 January
2024: 18,000 sq ft)

4 - MLA is Maximum Lettable Area measured in square feet ("sq ft")

5 - REVPAF is an alternative performance measure used by the business. REVPAF
stands for Revenue per Available Square Foot and is calculated by dividing
revenue for the period by weighted average available square feet for the same
period

6 - Like-for-like information includes only those stores which have been open
throughout both the current and prior financial years, with adjustments made
to remove the impact of new and closed stores, as well as corporate
transactions

7 - Expansion Markets comprises Spain, the Netherlands and Belgium plus
management fees earned in relation to the joint ventures in Germany and Italy

 

 

Enquiries

 

 Safestore Holdings PLC
 Frederic Vecchioli, Chief Executive Officer   via Instinctif Partners
 Simon Clinton, Chief Financial Officer
 www.safestore.com (http://www.safestore.com)

 Instinctif Partners
 Galyna Kulachek                               020 7457 2020

 Tim Pearson

 

Notes to Editors

 

·      Safestore is the UK's largest self-storage group with 205 stores on
31 January 2025; comprising 139 in the UK (including 78 in London and the
South East with the remainder in key metropolitan areas such as Manchester,
Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and
Bristol), 30 in the Paris region, 16 in Spain, 14 in the Netherlands and 6 in
Belgium. In addition, the Group operates 7 stores in Germany under a Joint
Venture agreement with Carlyle and 10 stores (and 2 under development) in
Italy under a Joint Venture agreement with Nuveen.

 

·      Safestore operates self-storage sites in close proximity to
customers including in the wealthiest and more densely populated UK and French
markets with significant numbers of sites inside the M25 and central Paris.

 

·      Safestore was founded in the UK in 1998. It acquired the French
business "Une Pièce en Plus" ("UPP") in 2004 which was founded in 1998 by the
current Safestore Group CEO Frederic Vecchioli.

 

·      Safestore has been listed on the London Stock Exchange since 2007.
It entered the FTSE 250 index in October 2015.

 

·      The Group provides storage to over 95,000 personal and business
customers.

 

·      As of 31 January 2025, Safestore had a maximum lettable area
("MLA") of 8.90 million sq ft (excluding the expansion pipeline stores) of
which 6.34 million sq ft was occupied.

 

·      Safestore employs over 800 people in the Group.

 

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