REG - Safestore Hldgs plc - Fourth quarter trading update
26/11/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241126:nRSZ6609Na&default-theme=true
RNS Number : 6609N Safestore Holdings plc 26 November 2024
26 November 2024
Safestore Holdings plc
Fourth quarter trading update for the period 1 August 2024 to 31 October 2024
Continued improvement in UK trading and strong growth in Expansion markets
Key Measures - Total Q4 Q4 Change(9) Change FY FY Change Change
2024
2023
CER(1)
2024
2023
CER(1)
Group
Revenue (£'m) 57.9 57.6 0.5% 1.2% 223.4 224.2 (0.3%) 0.2%
Closing Occupancy (let sq ft - million)(2) 6.41 6.23 2.9%
Closing Occupancy (% of MLA) (2) 74.6% 77.0% (2.4ppt)
Maximum Lettable Area (sq ft - million)(3) 8.59 8.09 6.2%
Average Storage Rate (£) £29.64 £30.22 (1.9%) (1.2%) £29.85 £30.26 (1.4%) (0.8%)
REVPAF (£)(4) £26.81 £28.24 (5.1%) (4.4%) £26.69 £27.70 (3.6%) (3.1%)
Key Measures - Like-For-Like(5) Q4 Q4 Change(9) Change FY FY Change Change
2024
2023
CER(1)
2024
2023
CER(1)
Group
Revenue (£'m) 56.1 55.9 0.4% 0.7% 217.9 218.9 (0.5%) 0.0%
Closing Occupancy (let sq ft - million) (2) 6.11 6.12 (0.2%)
Closing Occupancy (% of MLA) (2) 78.8% 79.3% (0.5ppt)
Average Occupancy (let sq ft - million) 6.16 6.18 (0.3%) 6.05 6.12 (1.1%)
Maximum Lettable Area (sq ft - million) (3) 7.75 7.72 0.4%
Average Storage Rate (£) £30.27 £30.50 (0.8%) (0.1%) £30.33 £30.46 (0.4%) 0.2%
REVPAF (£)(4) £28.75 £28.74 0.0% 0.7% £28.18 £28.39 (0.7%) (0.2%)
Highlights
· Q4 2024 revenue at CER grew 1.8% year on year excluding £0.6m of
insurance premium tax ("IPT") relating to the sale of customer goods insurance
in 2023 not repeated this year(6)
· On the same basis FY 2024 revenue grew 1.1% year on year after
excluding £2.2 million of IPT
· Like-for-like Group revenue returned to growth in the quarter
increasing 0.7% at CER
· Like-for-like closing occupancy at 78.8% broadly in line with prior
year end
· Like-for-like average rate for the Group for the quarter and full
year both broadly flat year on year at CER
· Opening of two new stores and extensions in the quarter with a
further five opened following year end, adding a total of 327,000 sq ft of
MLA. Development pipeline of an additional 26 stores with a total of 1.3m sq
ft MLA, equivalent of 16% of the portfolio at year end
· Continued momentum in UK domestic demand in Q4 with year end occupied
space 4.3% ahead of last year. Overall, UK occupancy broadly in line with
prior year reflecting softer business customer demand
· Expansion markets(8) (Spain, Netherlands and Belgium combined)
delivered 29.0% growth year on year for FY 2024
· Diluted EPRA Earnings per Share for the full year expected to be
broadly in line with consensus forecast(7)
Frederic Vecchioli, Chief Executive Officer, commented:
"We have delivered improved revenue performance in Q4, led by the UK, and have
returned to growth overall for the financial year.
In the UK, we are encouraged by the continued improvements in domestic
customer occupancy with increasingly positive levels of occupied space vs
prior year through the second half of the year. However, business customer
demand, particularly from smaller business customers, remains softer than in
2023.
We are pleased with the steady performance of our operations in Paris despite
challenging economic trading conditions.
We have presented our other countries combined together as "Expansion markets"
to reflect their importance in driving growth for the Group. These markets
have once again delivered strong performance in the quarter both in
like-for-like growth and in total revenue terms through the additional revenue
from new stores.
We have continued the successful delivery of new space with seven developments
and extensions adding 327,000 sq ft of MLA since the end of Q3. In the
financial year, we added 386,000 sq ft of MLA (equivalent to 5% of the start
of year MLA) through new stores and extensions which are expected to
significantly add to Group income as the stores mature.
Furthermore our development pipeline includes 26 additional stores with a
projected total MLA of 1,338,200 sq ft, reflecting 16% of year end MLA,
providing a clear pathway for further future revenue growth.
We maintain our guidance for full year Adjusted Diluted EPRA Earnings per
Share, which are projected to be broadly in line with consensus forecasts(7)."
Trading Performance
Revenue (millions) Q4 2024 Q4 2023 Change(9) FY 2024 FY 2023 Change
Group (GBP) £57.9 £57.6 0.5% £223.4 £224.2 (0.3%)
UK (GBP) £41.8 £42.6 (1.9%) £162.2 £166.2 (2.4%)
Paris (EUR) €13.2 €13.0 1.6% €51.3 €50.5 1.5%
Expansion markets (EUR) €6.0 €4.4 35.2% €20.6 €16.0 29.0%
Average Rate (per sq ft) Q4 Q4 Change FY FY Change
2024
2023
2024
2023
Group (GBP) £29.64 £30.22 (1.9%) £29.85 £30.26 (1.4%)
UK (GBP) £29.64 £30.26 (2.0%) £29.94 £30.25 (1.0%)
Paris (EUR) €43.17 €42.28 2.1% €42.28 €42.05 0.5%
Expansion markets (EUR) €24.93 €24.46 1.9% €24.40 €24.39 0.0%
REVPAF (per sq ft) Q4 Q4 Change FY FY Change
2024
2023
2024
2023
Group (GBP) £26.81 £28.24 (5.1%) £26.69 £27.70 (3.6%)
UK (GBP) £28.53 £29.58 (3.5%) £28.00 £29.07 (3.7%)
Paris (EUR) €36.93 €37.84 (2.4%) €37.12 €37.10 0.1%
Expansion markets (EUR) €18.68 €17.18 8.7% €17.97 €17.44 3.0%
Closing Occupancy (million sq ft) FY FY Change
2024
2023
Group 6.41 6.23 2.9%
UK 4.54 4.47 1.6%
Paris 1.09 1.11 (1.8%)
Expansion markets 0.78 0.65 20.0%
Closing Occupancy (% of MLA) FY FY Change
2024
2023
Group 74.6% 77.0% (2.4ppt)
UK 77.2% 78.1% (0.9ppt)
Paris 76.8% 81.3% (4.5ppt)
Expansion markets 63.8% 64.8% (1.0ppt)
MLA (million sq ft) FY FY Change
2024
2023
Group 8.59 8.09 6.2%
UK 5.88 5.73 2.6%
Paris 1.42 1.36 4.4%
Expansion markets 1.29 1.00 29.0%
Like-for-like
Revenue (millions) Q4 Q4 Change(9) FY FY Change
2024
2023
2024
2023
Group (GBP at CER(1)) £56.3 £55.9 0.7% £219.0 £218.9 0.0%
UK (GBP) £41.2 £41.3 (0.2%) £160.1 £162.0 (1.2%)
Paris (EUR) €13.2 €13.0 1.4% €51.2 €50.5 1.4%
Expansion markets (EUR) €4.3 €3.9 10.3% €16.6 €14.7 12.9%
Average Rate (per sq ft) Q4 Q4 Change FY FY Change
2024
2023
2024
2023
Group (GBP at CER) £30.48 £30.50 (0.1%) £30.51 £30.46 0.2%
UK (GBP) £29.88 £30.30 (1.4%) £30.10 £30.27 (0.6%)
Paris (EUR) €43.34 €42.28 2.5% €42.33 €42.05 0.7%
Expansion markets (EUR) €28.17 €26.61 5.9% €27.34 €25.89 5.6%
REVPAF (per sq ft) Q4 Q4 Change FY FY Change
2024
2023
2024
2023
Group (GBP at CER) £28.94 £28.74 0.7% £28.34 £28.39 (0.2%)
UK (GBP) £28.99 £29.11 (0.4%) £28.36 £28.80 (1.5%)
Paris (EUR) €38.32 €37.84 1.3% €37.59 €37.10 1.3%
Expansion markets (EUR) €24.01 €21.39 12.2% €22.92 €20.55 11.5%
Closing Occupancy (million sq ft) FY FY Change
2024
2023
Group 6.11 6.12 (0.2%)
UK 4.45 4.45 -
Paris 1.09 1.11 (1.8%)
Expansion markets 0.57 0.56 1.8%
Closing Occupancy (% of MLA) FY FY Change
2024
2023
Group 78.8% 79.3% (0.5ppt)
UK 78.6% 79.0% (0.4ppt)
Paris 79.3% 81.3% (2.0ppt)
Expansion markets 79.7% 76.8% 2.9ppt
MLA (million sq ft) FY FY Change
2024
2023
Group 7.75 7.72 0.4%
UK 5.66 5.64 0.4%
Paris 1.37 1.36 0.7%
Expansion markets 0.72 0.72 0.0%
UK
Trading performance in the UK continued to improve in Q4 2024 with
like-for-like revenue in line with prior year (down 0.2%). This was driven by
a small reduction in rate (down 1.4%) together with broadly stable occupancy
(closing occupancy down 0.4ppt year on year) and growing ancillary sales.
This like-for-like occupancy position includes improving domestic demand, with
space occupied by these customers increasing 4.3% year on year. This was
offset by continued soft demand from business customers, which saw a 6.0% year
on year decline in occupied space.
The domestic customer position reflects steadily improving trajectory through
the second half of FY 2024 from 1.5% behind the prior year at the end of April
2024 and 0.3% ahead of FY 2023 at Q3 close. Space occupied by domestic
customers is now in line with the previous year end record level achieved in
2021 on a same store basis.
The business customer performance is mainly through smaller businesses
(reflecting 47% of business customers by space occupied) which declined 10.7%
year on year but with steady performance from larger corporate customers.
We are accelerating the conversion of larger units (over 250 sq ft) into
smaller ones more suitable for domestic customers, reducing the historic
over-weight towards business customers in the UK. Through this partitioning
programme we expect to significantly reduce the current 1.0 million sq ft of
larger units, which are predominantly located in London (36%) and south east
England (24%), so that the UK ratio of domestic to business customers comes
closer to the 70/30 split by occupied space seen in the rest of the Group.
Total revenue in the UK also has the benefit of an additional £2.5m income
for the full year from newly opened stores and extensions.
Total revenue in FY 2023 included £2.2 million of IPT relating to customer
goods protection which is not repeated in FY 2024 due to changes in the nature
of the protection offered to customers. This amount has been excluded from
like-for-like revenue figures to better reflect underlying performance.
Paris
In Q4 2024, like-for-like revenue grew 1.4% continuing the steady progress
achieved in previous quarters and resulting in full year growth of 1.4% on
prior year.
The growth in the quarter was driven by improving rental rates which were up
2.5% year on year offset by a two percentage point year on year decline in
closing occupancy.
Total revenue growth of 1.5% for the full year also reflects the benefits of
new stores and extensions opened in the year.
Expansion markets
The performance of Spain, the Netherlands and Belgium has been presented
together, reflecting both their combined scale and their common strategic
focus on providing expansion opportunities for the Group.
Overall, they delivered 10.3% like-for-like revenue growth in Q4 2024 taking
full year growth on prior year to 12.9% with positive momentum in all three
markets.
In Q4, 2024 like-for-like growth in Spain (up 3.7% year on year) was driven by
improvement in occupancy (closing at 78.0%) and flat rental rates. In the
Netherlands, like-for-like growth was 10.3% driven by increased rental rates
with occupancy broadly in line with prior year. Like-for-like revenue in
Belgium grew 22.2% in the quarter through a combination of both increased
rental rates and improved occupancy.
In addition, new stores and expansions contributed an additional €3.2
million in revenue in the year, largely through openings in Spain, taking
total revenue growth to 29.0% for the full year for the combined markets.
As a result of the completed developments, we now have 15 stores in Spain, 14
stores in the Netherlands and 6 stores in Belgium, an overall 25% increase
from the 2023 year end position.
Acquisitions
In Q4 2024, we acquired a self-storage business with a 19,800 sq ft leasehold
property in Chelsea, London.
In addition, during the year we acquired the freehold on two of our leasehold
properties, located in Manchester and Le Marais in central Paris, with a total
MLA of 69,900 sq ft.
Opened Q4 2024
FH/LH MLA Type
New Developments
St Albans FH 56.0 Conversion
Redevelopments and Extensions
Paris - Poissy FH 7.4 Extension
Total Opened Q4 2024 63.4
These two stores, together with the 322,600 sq ft of new MLA from the eight
stores opened in the first three quarters of the year, have resulted in a
total increase from developments and extensions during FY 2024 of 386,000 sq
ft.
Pipeline
We have a total pipeline of 31 developments and extensions opening in FY 2025
and beyond which is expected to add a total of 1.6 million sq ft, representing
19% of portfolio MLA as at October 2024. This includes the five new stores and
extensions below which had already opened as at the date of this report.
FH/LH MLA Type
New Developments
London - Lea Bridge FH 80.9 New Build
Madrid - North East (Barajas) FH 57.2 Conversion
Madrid - South West (Carabanchel) FH 45.4 Conversion
Pamplona FH 64.5 Conversion
Total new developments 248.0
Redevelopments and Extensions
Paris - Pyrénées LH 15.4 Extension
Total opened in November 2024 263.4
In addition to the 263,400 sq ft of MLA added in November, there is a pipeline
of nine stores with 419,500 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
London - Walton FH 20.7 Conversion C, UC
Paris - East 1 (Noisy-le-Grand) FH 60.0 Conversion C, PG
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
Barcelona - Central 2 (Manso) LH 20.0 Conversion C, UC
Randstad - Amsterdam LH 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 419.5
2026 Opening (all New Developments)
FH/LH MLA Type Status
London - Woodford FH 68.7 New Build C, PG
London - Watford FH 57.5 New Build CE, PG
London - Wembley FH 55.3 New Build C, PG
London - Kingston FH 55.0 New Build CE, STP
London - Romford FH 41.0 New Build C, PG
Norwich FH 52.7 New Build CE, 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 CE, PG
Paris - West 1 (Conflans) FH 56.0 New Build C, UC
Paris - Colombes FH 65.5 Conversion CE, PG
Madrid - Perseo FH 18.5 Conversion CE, STP
Total Opening in 2026 621.6
Beyond 2026 Opening (all New Developments)
Name 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 CE, STP
Total Opening beyond 2026 297.2
MLA:
Maximum Lettable Area, in thousand square feet
Status:
C = completed, CE = contracts exchanged, STP = subject to planning, PG =
planning granted, UC = under construction
Ends
1 - 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)
2 - Occupancy excludes offices but includes bulk tenancy. As of 31 October
2024, closing occupancy includes 18,000 sq ft of bulk tenancy (31 October
2023:18,000 sq ft)
3 - MLA is Maximum Lettable Area measured in square feet ("sq ft")
4 - 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
5 - 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
6 - Store Protect replaced our customer goods insurance programme in the UK
from 1 November 2023, attracting VAT rather than Insurance Premium Tax
("IPT"). The Q4 2024 YTD revenue includes £2.2 million representing 12% IPT
on insurance sales for the nine months. The IPT in 2023 has been excluded from
like-for-like figures to aid comparability
7 - Company compiled consensus of analysts, as at 12 November 2024, from 14
analysts reflecting range of 41.3p to 44.6p with a mean of 43.0p
8 - Expansion markets comprises Spain, the Netherlands and Belgium plus
management fees earned in relation to the joint venture in Germany (previously
shown in UK segment)
9 - Where reported amounts are presented either to the nearest £0.1m or to
the nearest 10,000 sq ft, the underlying variance presented may be
significantly different to the variance calculated on the rounded numbers
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 7866 7850
Notes to Editors
- Safestore is the UK's largest self-storage group with 203 stores on 26
November 2024; comprising 138 in the UK (including 77 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, 15 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.
- Safestore operates more self-storage sites inside the M25 and in
central Paris than any competitor providing more proximity to customers in the
wealthiest and more densely populated UK and French markets.
- 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 around 96,000 personal and business
customers.
- As of 31 October 2024, Safestore had a maximum lettable area ("MLA")
of 8.59 million sq ft (excluding the expansion pipeline stores) of which 6.41
million sq ft was occupied.
- Safestore employs around 800 people in the Group.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTEAKFKADPLFEARecent news on Safestore Holdings
See all newsREG - Safestore Hldgs plc - Holding(s) in Company
AnnouncementREG - Safestore Hldgs plc - Director/PDMR Shareholding
AnnouncementREG - Safestore Hldgs plc - Notice of Interim Results
AnnouncementREG - Safestore Hldgs plc - Director/PDMR Shareholding
AnnouncementREG - Safestore Hldgs plc - Director/PDMR Shareholding
Announcement