UK's Safestore falls after Morgan Stanley cuts to 'equal-weight' on cost pressures
28/06/2024 10:13
** British self-storage firm Safestore Holdings Plc SAFE.L
down 3.2% at 757 pence
** Morgan Stanley downgrades SAFE to "equal-weight" from
"overweight"; trims PT to 850p from 980p
** Says cost pressures had dramatic impact on SAFE's H1
earnings which will take time to recover due to delays in
development pipeline
** Adds development delays mean earnings will see the most
impact in 2025, with nearly 900,000 sq ft scheduled for
completion and peak negative contribution to SAFE's P&L
** Equity markets have often penalised companies with lumpy
development contributions, Safestore is beginning to fall into
that category - Morgan Stanley
** Stock down ~14% YTD, including session's losses
(Reporting by Roshan Abraham)
((Roshan.Abraham@thomsonreuters.com))