REG - Safestore Hldgs plc - Final Results
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RNS Number : 9626O Safestore Holdings plc 15 January 2026
15 January 2026
Safestore Holdings plc
("Safestore", "the Company" or "the Group")
Results for the year ended 31 October 2025
Strong operational performance, investment in future growth and earnings at an
inflection point
2025 2024 Change Change (CER)(2)
(Total)
FINANCIAL METRICS
Total Revenue (£'m) 234.3 223.4 4.9% 5.0%
LFL(14) Revenue (£'m) 228.7 221.9 3.1%
Underlying EBITDAR(4) (£'m) 137.0 135.4 1.2% 1.3%
Operating Profit (£'m) 159.3 425.8 (62.6%)
Underlying Profit before Tax(5) (£'m) 92.9 97.0 (4.2%)
Statutory Profit before Tax (£'m) 127.1 398.6 (68.1%)
Adjusted Diluted EPRA EPS(11) (pence) 40.3 42.3 (4.7%)
Dividend per share (pence) 30.70 30.40 1.0%
Balance Sheet Metrics
EPRA Basic NTA(13) per Share (pence) 1,129 1,091 3.5%
Net Assets (£'m) 2,288.4 2,226.8 2.8%
Net cash inflow from operating activities (£'m) 99.9 95.9 4.2%
Net debt (£'m) 1,058.6 899.5 17.7%
Loan to value ratio (LTV) %(16) 28.1% 25.1% 3.0ppt
OPERATING METRICS
Maximum Lettable Area ("MLA")(8) m sq ft 9.3 8.6 8.0%
Current Lettable Area ("CLA")(3) m sq ft 8.5 8.2 3.9%
Closing Occupancy(7) (% of CLA) 78.1% 78.0% 0.1ppt
LFL Closing Occupancy (% CLA) 81.2% 80.0% 1.2ppt
Group REVPAF(10) (£ / sq ft) 27.47 27.77 (1.1%) (1.0%)
LFL REVPAF (£ / sq ft) 28.93 28.12 2.9%
.
HIGHLIGHTS
Financial and operational progress
· Group revenue at constant exchange rates (CER) up 5.0% to £234.3
million, with 3.1% LFL growth; positive LFL growth across all geographies and
increasing contribution from non-LFL stores:
- UK revenue +3.3% improved through the year reaching £167.5 million,
with increasing domestic occupancy, unit partitioning and higher average
storage rates(9) driving LFL growth of 2.4%
- Paris revenue of €52.6 million +2.5% reflects solid LFL growth of
1.3% with increasing occupancy and flat average rates
- Expansion Markets(15) total revenue of €26.2 million +27.0%; strong
growth in LFL (+13.5%) and non-LFL stores; Spain, Netherlands and Belgium all
performed well;
· Underlying store EBITDAR increased by 3.1% to £155.9 million;
inflationary cost pressures were partially offset by internal efficiencies,
resulting in LFL cost of sales increase of 4.4%, broadly in line with sales
and below the previously guided rise of 7-8%
· Underlying EBITDAR was £137.0 million, up 1.2%, lower growth than
store EBITDAR growth due to higher administrative costs
· Operating profit down 62.6% to £159.3 million due to lower
property revaluation gains of £23.1 million in FY 2025 (FY 2024: £292.2
million)
· Underlying net finance costs increased by £5.0 million to £26.4
million due to increased borrowings to support the store expansion programme
· Underlying profit before tax of £92.9 million declined by 4.2%
reflecting the higher interest charge. The resulting Adjusted Diluted EPRA EPS
was 40.3p, in line with consensus estimates. Statutory profit before tax of
£127.1 million and Basic EPS of 50.9 pence declined 68.1% and 70.1%
respectively, as a result of lower fair value gains on investment properties
than in FY 2024
· Dividend per share of 30.70p, up 1%, underpinned by robust cash
flow from operating activities, in line with progressive dividend policy and
reflecting confidence in future prospects
· Balance sheet remained strong with £2.3 billion of net assets
growing 2.8% in the year. LTV ratio of 28.1% and interest cover ratio
("ICR")(17) of 4.0x; capital structure underpinned by investment property
valuation of £3.5 billion
Strategy on track, with pipeline being executed as planned
· Continued focus on REVPAF to optimise trading in our existing
store portfolio where we see significant potential to drive further EBITDA
growth from both LFL and non-LFL stores. Recently opened (non-LFL) stores on
track to meet 10% yield on cost(18) hurdle, with stores opened 2016-2021
achieving between 10%-20%
· £80 million investment in store development resulted in MLA
growing by a further 8% or 0.7 million sq ft to 9.3 million sq ft in FY 2025,
with the addition of 13 new stores and 1 extension, representing the largest
organic space increase in our recent history. In total since FY 2023 we have
added 1.5 million sq ft, a 19% uplift to MLA
· £38.9 million investment in Italy through a new 50:50 joint
venture with Nuveen established in December 2024 with stores performing in
line with expectations
· Further enhancement of our technology-led operating model that
combines centralised efficiency and local expertise with accelerated AI
integration across marketing, pricing, and sales to optimise revenue
performance
· We continue to make good progress towards our target of
operational net zero with a 22% reduction in emissions intensity to 0.64
kgCO(2)e/ m(2)
Outlook and guidance
· Q1 trading to date has shown a continuation of the trend in LFL
growth from FY 2025 across all our markets
· FY 2026 outlook: cautiously optimistic with a return to earnings
growth
o Underlying LFL cost of sales growth expected to be 3%-6%
o Underlying net finance costs projected to increase by £1-£2 million
o Capital expenditure on new stores of £86 million
o 417k sq ft of additional MLA with a further 678k sq ft MLA in FY 2027 and
beyond.
· On track to deliver the £35-£40 million of incremental EBITDA from
non-LFL stores and pipeline on stabilisation
Frederic Vecchioli, Safestore's Chief Executive Officer, commented:
"Safestore's performance in FY 2025 reflects strong operational execution and
investment in future growth. I want to thank our teams across the business for
their hard work and commitment throughout the year. We continued to drive
REVPAF and optimise trading across the like-for-like estate, which remains a
key engine of profit growth for the Group. We also demonstrated good cost
control, and this continues to be a focus. The dividend was up 1%, an
important part of the total return for our shareholders.
Our new and recently opened stores are performing well across the portfolio,
and, together with the development pipeline of a further 20 stores, are
expected to contribute an additional £35-£40 million of EBITDA to the Group
upon stabilisation.
We have entered the new financial year with confidence, and on the back of
solid trading in the first quarter to date. Safestore is now at an inflection
point, where the significant investment we have made in MLA expansion is
driving revenue growth and is set to translate into meaningful growth in
earnings and long term value creation."
For further information, please contact:
Safestore Holdings PLC
Frederic Vecchioli, Chief Executive Officer Simon Clinton, Chief Financial 020 8732 1500
Officer
www.safestore.com (http://www.safestore.com)
FTI Consulting
Dido Laurimore 020 3727 1000
Richard Gotla safestore@fticonsulting.com
Oliver Parsons
Analyst and investor presentation
An analyst and investor presentation will be held at 9:30am GMT today, 15
January 2026.
Notes to Editors
· Safestore is the UK's largest self-storage group with 211 stores on
31 October 2025 comprising:
o 139 in the UK (78 in London and the South East, 61 in key metropolitan
areas including Manchester, Birmingham, Glasgow, Edinburgh, Liverpool,
Sheffield, Leeds, Newcastle, and Bristol)
o 34 in the Paris region
o 16 in Spain
o 15 in the Netherlands
o 7 in Belgium.
o Joint ventures: 7 stores in Germany under a joint venture agreement with
Carlyle and 12 stores in Italy under a joint venture agreement with Nuveen.
· As of 31 October 2025, Safestore had a maximum lettable area ("MLA")
of 9.28 million sq ft (excluding the expansion pipeline stores) of which 6.67
million sq ft was occupied.
· Safestore was founded in the UK in 1998 and acquired "Une Pièce en
Plus" ("UPP") in France 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 and
entered the FTSE 250 index in October 2015.
· The Group provides storage to around 105,000 personal and business
customers and employs over 850 people across the Safestore Group.
Notes
We prepare our financial statements using IFRS but we also use a few adjusted
measures in assessing and managing the performance of the business. These
measures are not defined under IFRS and they may not be directly comparable
with other companies' adjusted measures and are not intended to be a
substitute for, or superior to, any IFRS measures of performance. These
include like-for-like figures, to aid in the comparability of the underlying
business as they exclude the impact on results of purchased, sold, opened or
closed stores; and constant exchange rate ("CER") figures are provided to
present results on a more comparable basis, removing FX movements. These
metrics are disclosed because management review and monitor performance of the
business on this basis. We also include a few measures defined by the European
Public Real Estate Association ("EPRA"), which are designed to enhance
transparency and comparability across the European Real Estate sector; see
notes 11 and 13 below and 'Non-GAAP financial information' in the notes to the
financial statements.
1 - Where reported amounts are presented either to the nearest £0.1 million
or to the nearest 10,000 sq ft, the effect of rounding may impact the reported
percentage change.
2 - CER is Constant Exchange Rate (Euro denominated results for the current
period are retranslated at the exchange rate effective for the comparative
period. Euro denominated results for the comparative period are translated
at the exchange rates effective in that period, in order to present the
reported results for the current period on a comparable basis).
3 - CLA is Current Lettable Area excludes space not yet fitted out and space
which is operationally unavailable from MLA (Maximum Lettable Area). Measured
in square feet ("sq ft").
4 - Underlying EBITDAR was previously termed Underlying EBITDA. It is defined
as Operating Profit before exceptional items, share-based payments, corporate
transaction costs, change in fair value of derivatives, gain/loss on
investment properties, depreciation, the net profit from joint ventures and
associates, interest and tax. It has been renamed to ensure the name more
closely reflects the nature of the financial measure.
5 - Underlying profit before tax is defined as underlying EBITDAR less
leasehold costs(6), depreciation charged on property, plant and equipment, net
profit from joint ventures and associates, and net finance charges relating to
bank loans and cash.
6 - Leasehold costs reflect the rental expense and therefore include both the
lease liability interest element and the fair value re-measurement of lease
liabilities.
7 - Occupancy excludes offices but includes bulk tenancy.
8 - MLA is Maximum Lettable Area. Measured in square feet ("sq ft").
9 - Average storage rate is calculated as the revenue generated from
self-storage divided by the average square footage occupied during the period
in question.
10 - Revenue per Available Square Foot ("REVPAF") is an alternate performance
measure used by the business and is considered by management as the best KPI
of economic performance of a mature self-storage asset as it is the net
outcome of the occupancy/rate mix plus ancillary sales. It is calculated by
dividing revenue for the period by weighted average available square feet for
the same period.
11 - Adjusted Diluted EPRA EPS is based on EPRA's definition of Earnings and
is defined as profit or loss for the period after tax but excluding corporate
transaction costs, change in fair value of derivatives, gain/loss on
investment properties and the associated tax impacts. The Company then makes
further adjustments for the impact of exceptional items, IFRS 2 share-based
payment charges, exceptional tax items, and deferred tax charges. This
adjusted earnings is divided by the diluted number of shares. The IFRS 2 cost
is excluded as it is written back to distributable reserves and is a non-cash
item (with the exception of the associated National Insurance element).
Therefore, neither the Company's ability to distribute nor pay dividends are
impacted (with the exception of the associated National Insurance element).
The financial statements will disclose earnings on a statutory, EPRA and
Adjusted Diluted EPRA basis and will provide a full reconciliation of the
differences in the financial year in which any LTIP awards may vest.
12 - Cash flow before investing activities is defined as net cash inflow from
operating activities less leasehold cost payments..
13 - EPRA's Best Practices Recommendations guidelines for Net Asset Value
("NAV") metrics are EPRA Net Tangible Assets ("NTA"), EPRA Net Reinstatement
Value ("NRV") and EPRA Net Disposal Value ("NDV"). EPRA NTA is considered to
be the most relevant measure for the Group's business which provides
sustainable long term progressive returns and is now the primary measure of
net assets. The basis of calculation, including a reconciliation to reported
net assets, is set out in note 15 to the financial statements.
14 - Like‐for‐like ("LFL") 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.
15 - Expansion Markets comprise Spain, the Netherlands and Belgium plus income
earned in relation to the associate in Germany and the joint venture in Italy.
16 - LTV ratio is loan to value ratio, which is defined as net debt (excluding
lease liabilities) as a proportion of the valuation of investment properties
and investment properties under construction (excluding lease liabilities).
17 - ICR is interest cover ratio and is calculated as the ratio of underlying
EBITDA after leasehold costs to underlying finance charges.
18 - Yield on cost is defined as incremental EBITDA divided by the initial
investment in a new store.
Reconciliations between underlying metrics and statutory metrics can be found
in the financial review and financial statements sections of this
announcement.
CEO REVIEW
Group Summary
Safestore delivered an encouraging performance in FY 2025, with LFL growth
improving through the year, a strong non-LFL revenue contribution and further
delivery of our store expansion programme. We achieved this against a backdrop
of lacklustre GDP growth, demonstrating the resilience of the underlying
demand for our self-storage offer. Revenue growth and store EBITDAR
performance were robust across all our geographies, notwithstanding the
anticipated inflation-driven cost challenges and the profit drag impact of a
higher number of new store openings. The slight decline in underlying profit
before tax and adjusted diluted EPRA EPS was driven by increased debt to fund
the store development programme, which we are confident will contribute
significantly to future earnings growth. Overall, the results for the year
reflect progress against our strategy to optimise the trading performance of
the existing store portfolio and take advantage of selective expansion
opportunities, whilst maintaining a strong balance sheet.
Financial summary
Group revenues grew 5.0% (CER) in total to £234.3 million, with LFL sales
growth of 3.1% and newly opened (non-LFL) stores contributing £5.9 million of
revenue, up from £1.5 million in the prior year. Underlying store EBITDAR was
£155.9 million, up 3.2% (CER), a good performance as we absorbed
well-documented inflationary cost increases and the incremental costs of
rolling out new stores. The underlying LFL cost of sales increase of 4.4% was
below our previously guided rate of 7%-8%, helped by operational efficiencies
identified during the year which will continue to flow through in FY 2026. LFL
store EBITDAR margins remained strong at 67.6%.
Underlying central administrative costs increased by £3.1 million or 19.6% to
£18.9 million due to investments in technology capabilities to enhance our
data-led customer service and to support our larger portfolio as well as
re-established variable pay for Head Office colleagues. This resulted in
underlying EBITDAR of £137.0 million, up 1.3% (CER). Net finance costs rose
by £5.0 million to £26.4 million due to an increase in borrowings to fund
the store expansion programme. This impacted underlying PBT, which declined by
4.2% to £92.9 million. In turn, Adjusted Diluted EPRA EPS fell by 4.7% to
40.3 pence.
Statutory profit before tax was £127.1 million (FY 2024: £398.6 million)
reflecting a lower gain on investment properties compared to the prior year.
Basic EPS was 50.9 pence (FY 2024: 170.5 pence).
Cash flow before investing activities(12) grew to £89.6 million (FY 2024:
£86.2 million). We incurred total capex of £109.2 million, including £80
million on new store development compared to £81 million in FY 2024. FY 2025
represented the peak MLA opening year for the current pipeline development
which runs to FY 2027 and beyond. Net debt increased by £159.1 million to
fund the store programme as planned, with a new five-year term loan of €77.5
million and a new eight-year €70.0 million USPP arranged to refinance a
portion of the drawn RCF. The average blended cost of debt fell by 0.5ppt to
3.46% due to lower rates on floating debt facilities and a higher proportion
of Euro denominated borrowings following the pro-active conversion of €150
million of drawn facilities from GBP to EUR. Our balance sheet remains strong:
interest cover was 4.0x (FY 2024: 4.3x) and LTV stood at 28.1% (FY 2024:
25.1%).
Safestore's capital structure is underpinned by the valuation of our
investment properties which was £3,245.9 million (FY 2024: £3,052.9 million)
at the year-end reflecting the stable valuation of the LFL estate and growth
from the value created by our new store development.
Trading summary
Stores in our LFL portfolio (>two years old and 89% of MLA) delivered
revenue growth of 3.1% year on year. LFL closing occupancy was 81.2%, up
1.2ppt, and LFL REVPAF at a Group level was up 2.9% to £28.93. This is a
pleasing performance and reflects our relentless focus on optimising trading
in our existing store base.
Within the LFL estate, our mature stores (>five years old and 79% of MLA)
delivered 1.9% revenue growth through improvements in average storage rate.
Also within the LFL estate, our stabilising stores (sites two-five years old
and 10% of MLA), delivered good occupancy and REVPAF growth, contributing
1.2ppt of the total 3.1% LFL growth. Their performance underlines the
opportunity to drive highly profitable growth as they trade towards more
mature occupancy levels.
Non-LFL stores (five years old), which represent 79% of MLA,
through rate improvements, benefits from UK partitioning, and cost inflation
easing.
o Contribution from fully invested stabilising LFL stores (between two and
five years old), which currently represent 10% of MLA, as they continue up the
maturity curve, increase occupancy and build profitability.
· Increasing contribution from our non-LFL stores (1.0 million sq ft
or 11% of MLA and < two years old) and our current pipeline of 1.1 million
sq ft projected to open over the next few years. This 2.1 million sq ft of
space will contribute increasingly to earnings as stores fill occupancy and
cover their fixed costs. These stores are expected to generate an incremental
£35-£40 million of EBITDA upon stabilisation.
· Our joint ventures in Germany and Italy present an opportunity to
expand from a small footprint of stores with a lower initial capital outlay
and management fee income. We see the potential for other opportunities with
this model to drive longer term portfolio growth.
Trading and Operational Review
Trading Data* TOTAL LIKE-FOR-LIKE
Revenue metrics 2025 2024 Change 2025 2024 Change
Revenue (millions)
Group (GBP) £234.3 £223.4 4.9% £228.7 £221.9 3.1%
UK (GBP) £167.5 £162.2 3.3% £164.8 £161.0 2.4%
Paris (EUR) €52.6 €51.3 2.5% €51.9 €51.2 1.3%
Expansion Markets (EUR) €26.2 €20.5 27.0% €23.0 €20.1 13.5%
Average rate (per sq ft)
Group (GBP) £30.20 £29.85 1.2% £30.58 £29.90 2.3%
UK (GBP) £30.68 £29.94 2.5% £30.71 £29.95 2.5%
Paris (EUR) €41.81 €42.28 (1.1%) €42.51 €42.33 0.4%
Expansion Markets (EUR) €24.30 €23.28 4.4% €25.29 €23.44 7.9%
REVPAF (per sq ft)
Group (GBP) £27.47 £27.77 (1.1%) £28.93 £28.12 2.9%
UK (GBP) £29.24 £28.85 1.3% £29.56 £28.77 2.8%
Paris (EUR) €37.33 €39.13 (4.6%) €39.04 €39.39 (0.9%)
Expansion Markets (EUR) €18.79 €18.48 1.7% €23.00 €20.38 12.9%
Space and occupancy metrics 2025 2024 Change 2025 2024 Change
Closing occupancy (million sq ft)
Group 6.67 6.41 4.0% 6.33 6.34 (0.1%)
UK 4.52 4.54 (0.4%) 4.43 4.51 (1.8%)
Paris 1.19 1.09 8.4% 1.12 1.09 3.2%
Expansion Markets 0.96 0.78 23.4% 0.78 0.74 5.8%
Closing occupancy (% of CLA)
Group 78.1% 78.0% 0.1ppt 81.2% 80.0% 1.2ppt
UK 79.9% 79.6% 0.3ppt 80.6% 80.3% 0.3ppt
Paris 81.2% 81.9% (0.7ppt) 84.8% 82.7% 2.1ppt
Expansion Markets 67.3% 65.5% 1.8.ppt 79.7% 74.4% 5.3ppt
MLA (million sq ft)
Group 9.28 8.59 8.0% 8.24 8.23 0.1%
UK 5.98 5.88 1.7% 5.79 5.81 (0.3%)
Paris 1.66 1.42 16.8% 1.40 1.37 2.1%
Expansion Markets 1.64 1.29 27.1% 1.05 1.05 -
CLA (million sq ft)
Group 8.54 8.22 3.9% 7.80 7.92 (1.6%)
UK 5.66 5.70 (0.8%) 5.49 5.61 (2.1%)
Paris 1.46 1.34 9.3% 1.32 1.31 0.6%
Expansion Markets 1.42 1.19 20.1% 0.99 1.00 (1.2%)
*all total numbers reported using the reported exchange rate. LFL measures all
reported at CER where applicable.
Geographic underlying performance - P&L in Local Currencies
FY 2025 FY 2024
Underlying performance UK Paris Exp Mkt Total (CER) UK Paris Exp Mkt Total (CER)
£'m €'m €'m £'m £'m €'m €'m £'m
LFL 164.8 51.9 23.0 228.7 161.0 51.2 20.1 221.9
Non-LFL 2.7 0.7 3.2 5.9 1.2 0.1 0.4 1.5
Total revenue 167.5 52.6 26.2 234.6 162.2 51.3 20.5 223.4
LFL 109.1 39.4 14.1 154.6 108.8 37.6 11.6 150.8
Non-LFL 1.0 (0.4) 0.9 1.4 0.7 - (0.5) 0.4
Total store EBITDAR 110.1 39.0 15.0 156.0 109.5 37.6 11.1 151.2
LFL store EBITDAR margin 66.2% 75.9% 61.3% 67.6% 67.6% 73.4% 57.7% 68.0%
UK (64% of MLA, 139 stores)
Our operational performance in the UK reflects a continuously improved revenue
trajectory through the year. Total revenue was up 3.3% to £167.5 million with
LFL growth of 2.4% to £164.8 million.
Driven by increased product adoption, demand from domestic customers remained
robust throughout the year, with space occupied up 3.4% at year-end, enabling
us to accelerate our partitioning programme by converting larger units into
smaller units better suited to domestic customer demand.
The programme is reducing our historical overweight to larger units (>250
sq ft) within our UK portfolio, resulting in more smaller and higher yielding
configurations and enabling a more typical 70/30 domestic/business customer
split in terms of space occupied. We intend to convert a total of 500,000 sq
ft (out of an initial total of approximately 1 million sq ft) of larger units
into smaller units over two years and made good progress in FY 2025 with
190,000 sq ft completed. We expect to convert the balance in FY 2026 and 2027.
As smaller units have a higher rental value/sq ft, this has a positive impact
on the average rate we achieve and ultimately will drive REVPAF growth.
LFL occupancy closed broadly flat year on year at 80.6% with occupied space in
units smaller than 250 sq ft increasing 1.4% and occupied space in larger
units decreasing by 132,000 sq ft (15.7%). Business occupied space is down
6.2% on FY 2024, with the level impacted by the unit partitioning programme
described above. This change in mix to smaller units and domestic customers
contributed to the increase of 2.5% in the achieved rate for LFL stores,
reflecting the Group's strategy to optimise REVPAF.
In the year there were eleven UK stores still stabilising and included in LFL.
These stores, which are between two and five years old, increased their
occupancy and provided a meaningful contribution to LFL revenue growth. We
expect stabilised occupancy of 85%-90% in our UK LFL portfolio, compared to
the 80.6% achieved in FY 2025, with further occupancy growth in stabilising
stores expected to be a contributing driver in closing this gap.
In addition to our LFL portfolio we have opened six stores since the end of FY
2023 which are currently classified as non-LFL. These stores contributed £1.5
million to year-on-year revenue growth in the financial year and are
performing in line with their expected maturity curve.
The UK LFL store EBITDAR margin fell to 66.2% (FY 2024: 67.6%). This was due
to an increase in the LFL cost of sales base of 6.9% to £55.7 million driven
largely by inflation-linked increases in the National Living Wage and National
Insurance impacting employee costs, and a 10.2% increase in business rates
partially offset by savings from integrating call centre activities in stores
and improved insurance costs. As a result, UK LFL store EBITDAR increased only
slightly by £0.3 million to £109.1 million for the financial year.
The strong growth in revenue from non-LFL stores in the UK led to total
EBITDAR for the UK to increase £0.6m or 0.5% year-on-year.
The mix of our customer base is depicted in the table below. The combined
impacts of stronger demand from domestic customers and the partitioning of
larger units, resulted in the proportion of domestic customers in the UK
increasing to 63% of occupied sq ft at the end of FY 2025 (FY 2024: 59%).
Business and domestic Customers FY 2025 UK Paris Exp Mkt
Domestic Customers
Numbers (% of total) 79% 82% 90%
Sq ft occupied (% of total) 63% 66% 83%
Average length of stay (months) 17.3 22.9 21.6
Business Customers
Numbers (% of total) 21% 18% 10%
Sq ft occupied (% of total) 37% 34% 17%
Average length of stay (months) 26.0 26.4 30.4
Paris (18% of MLA, 34 stores)
Our Paris business delivered €52.6 million revenue with LFL growth of 1.3%
and non-LFL delivering €0.7 million of revenue. This was a steady result in
context of the weaker economic conditions of the region in FY 2025.
On a LFL basis, closing occupancy increased 2.1ppt to 84.8% in the year,
reflecting the strength of our unique portfolio of stores located in both city
centre and suburban areas and our skills at driving and converting online
enquires. The LFL average rate achieved was up 0.4% and LFL REVPAF was down
slightly (0.9%) due to an additional 30,000 sq ft of CLA from two store
extensions opened in the last 18 months. These extensions will support LFL
revenue growth in Paris as they mature.
In FY 2024 and FY 2025, we opened a total of four new stores and one extension
in Paris, with a further four in the pipeline which will take the number of
stores in the market to 38. Non-LFL stores contributed €0.6 million to
year-on-year revenue growth. This 31% growth in MLA means that our portfolio
density within central Paris will increase substantially and whilst we expect
that the new stores will be significant contributors to growth as they mature
in the years ahead, we anticipate that performance of LFL stores may be
impacted due to our approach of giving customers choice of storage locations
and prices with cross-network space allocation.
The LFL Store EBITDAR margin rose to 75.9% mainly due to LFL cost of sales in
Paris falling 8.1% year on year. This reflected a normalising bad debt
provision and continued tight cost control, particularly in the dynamic
management of staffing including lower store variable pay, together with
savings in utilities through using Group procurement.
As a result, LFL store EBITDAR for Paris increased by a healthy 4.8% year on
year to €39.4 million. Total store EBITDAR increased at a slightly lower
rate of 3.7% reflecting the impact of new store openings.
Expansion Markets (18% MLA, 38 stores)
Our Expansion Markets continued to be a strong contributor to Group growth
with LFL revenue increasing 13.5% to €23.0 million year on year and total
revenue increasing 27.0% to €26.2 million.
Performance in each market was strong. In Spain (16 stores) revenue grew 22.9%
on a LFL basis to €7.7m through both occupancy and rate improvements with
growth supported by seven stabilising stores. LFL revenue in the Netherlands
(15 stores) of €9.1m and Belgium (7 stores) of €5.5m grew by 10.1% and
13.0% respectively, achieved through both occupancy and rate increases.
LFL closing occupancy increased from 74.4% to 79.7% with the growth in
particular coming from stabilising stores in the Netherlands and Spain as they
fill up towards the Mature LFL store average level of 85.8% (FY 2024: 84.5%).
New stores and expansions contributed €3.2 million of non-LFL revenue, with
growth of €2.8 million in the year, largely through openings in Spain.
Management fees from our joint ventures in Germany and Italy contributed
€1.7 million to Expansion Market revenue (FY 2024: €0.8 million).
The LFL store EBITDAR margin increased to 61.3%, up 3.6ppts. LFL costs of
sales for Expansion Markets increased 4.7%, reflecting a mix of normal
inflationary increases and the timing of maintenance expenses. As a result,
Expansion Markets LFL store EBITDAR increased 21.6% with store EBITDAR
including non-LFL stores increasing 35.1% year-on-year.
Joint ventures and associates
We have an associate investment with Carlyle in Germany and a joint venture
with Nuveen in Italy. These joint ventures represent a route for the Group to
access new geographies and expand our managed portfolio with diluted risk and
with lower capital deployed. We earn management fees which are recorded in
Expansion Market revenue together with our share of the results of the joint
ventures themselves.
Our associate in Germany has seven stores totalling 327,000 sq ft with a
further five in its pipeline. Safestore owns 10% of the associate. The
underlying share of losses for FY 2025, a £0.6 million loss (FY 2024: £nil),
reflects one-off professional fees related to the establishment of the
business and normalisation of leases.
We entered into the joint venture in Italy in December 2024 through the
acquisition of a 50% share in EasyBox at a cost of £38.9 million. EasyBox
comprises twelve stores (of which two opened in FY 2025) and is a leading
platform in the emerging Italian storage market where the supply of
self-storage is equivalent to 3% of that in the UK. The stores are located in
the key economic centres of Rome, Florence and northern Italy, and total
821,675 sq ft. and are performing in line with our expectations. The
underlying share of profit for FY 2025, a £0.5 million gain (FY 2024: £nil),
reflects the profit for the first nine months of the 2025 calendar year.
MLA and CLA space and occupancy by geography
When developing new stores, we occasionally delay the full fit out of the
interior of our stores to reflect the phasing of occupancy increases. In
addition, through the partitioning programme space can be held as unavailable
until it is converted. Together these areas which are still to be fitted out
are not available to be leased and are hence excluded from CLA.
MLA (m sq ft) To be fitted out (m sq ft) Operationally unavailable (m sq ft) CLA (m sq ft) % Occupancy of MLA % Occupancy of CLA
UK 6.0 (0.2) (0.2) 5.6 75.6% 79.9%
Paris 1.7 (0.2) (0.0) 1.5 71.3% 81.2%
Exp Mkt 1.6 (0.2) (0.0) 1.4 58.5% 67.3%
Total 9.3 (0.6) (0.2) 8.5 71.8% 78.1%
Pan-European platform for growth
Our operating model combines the benefits of centralised expertise with
targeted local execution. Core strategic functions, including Marketing, IT,
Revenue Management, Finance, and Construction Analytics, are delivered from
our UK headquarters enabling efficient, consistent execution across all
markets. This platform is integrated with local operational support teams
which are deployed specifically in markets where on-the-ground expertise
generates incremental value and enhances asset performance.
Digital platform capabilities serve as a critical differentiator within our
industry for new lease enquiry generation and revenue optimisation. Our
centralised, in-house teams of specialists together with our proprietary data
set of years of historical leases enable the development of advanced marketing
tools and machine-learning algorithms to drive performance. This provides us
with a distinct competitive advantage over most of the market, which consists
largely of smaller operators lacking the data depth required to replicate our
price/occupancy optimisation approach.
During the year, we accelerated the integration of artificial intelligence
("AI") across our key business functions to drive operational efficiency,
optimise revenue generation and enhance investment rigour. This includes in
marketing, where we have refined expenditure allocation through a proprietary
AI-driven Customer Value Model that optimises pay-per-click spend by feeding
enquiry value data back to Google, alongside deploying generative AI to scale
multi-lingual content effectively. We further strengthened our digital
presence through Google reviews, sentiment tracking and AEO search visibility
partnerships, while testing AI-led campaign expansion tools to monitor
visibility and sentiment across emerging search platforms. In FY 2025 these
initiatives enabled us to enhance our enquiry capture whilst maintaining a
stable marketing cost of 4.1% of revenue (FY 2024: 4.1%).
We have further improved our pricing architecture through predictive modelling
which anticipates occupancy trends and churn risks, enabling proactive revenue
management. This includes targeted discounting for low conversion segments and
elasticity modelling to optimize the timing and magnitude of rate management.
The operational productivity of our sales teams continued to improve with the
use of enquiry conversion scoring models and automated sales calls transcript
analysis to drive performance coaching. Additionally, the imminent rollout of
custom AI agents will streamline internal procedural queries and credit
control authorisations.
Finally, we bolstered our property development capabilities with demand and
rate prediction models that analyse critical site attributes and provide
data-driven validation for new site selection, significantly mitigating risk
in untested markets and ensuring robust capital deployment.
The Safestore portfolio comprises both automated and staffed facilities.
Through our technology platform, we are able to offer customers the option to
choose a unit, start a contract fully online, and access their space all
without human intervention.
Nevertheless, our data consistently demonstrates that staffed interactions
drive superior financial outcomes, including higher conversion rates and
better rental yields. In the UK, spontaneous adoption of a fully automated
customer journey remained stable at approximately 8%. While 60% of our
customers execute their contracts remotely, the majority, particularly
first-time users, prioritise interaction with our professional teams before
completing their e-contract. This consultative approach helps customers to
select the correct unit size (preventing the 'over-estimation' common in
self-service) and ensure they have the right level of customer goods
protection, and which also supports our yield optimisation. Balancing
automation with high value human interaction translates into both an
industry-leading ancillary sales contribution (16.1% of total revenue in FY
2025) and REVPAF levels among the highest in the sector, growing by 2.9% on a
LFL basis in the year.
We continue to make good progress towards our target of operational net zero
with a 22% reduction in emissions intensity to 0.64 kgCO2e/ m2. We now have
all stores powered by certified zero-carbon electricity with in-store
improvements including fitting high efficiency lighting to customer units and
removal of gas heating appliances making further contributions. We install
solar panels on new openings where possible and increased our capacity by over
450kWp in FY 2025, and we expect this to further expand in FY 2026 to include
fitting panels on mature stores.
Portfolio Review
Our store expansion model
We develop and acquire stores only when opportunities are expected to hit our
hurdle rate of return and the investment ensures we remain within our balance
sheet parameters through economic cycles. This disciplined approach has served
us well, creating a portfolio that is hard to replicate and one that has
driven a strong track record of growth whilst navigating the macroeconomic and
interest rates cycles.
We focus on acquiring sites in dense, urban areas where we can leverage our
scale and operational expertise, and where barriers to entry are high as
supply is constrained by strict zoning regulations and a scarcity of suitable
development land. This strategy is reflected in our recent development
activity: of the 30 stores developed since 2023, three are located in London,
five in Paris, ten in Barcelona and Madrid, and six in the Randstad in the
Netherlands, reinforcing our market leadership in Europe's most valuable real
estate territories. Over time it is expected that these locations will benefit
from significant first-mover advantages as prime urban assets are largely
irreplicable in today's planning environment, providing strong defensive
characteristics in markets with deep and growing demand.
Development programme progress
In recent years we have stepped up our organic development programme to take
advantage of new space opportunities and ensure longer term earnings growth
for the portfolio. Since the beginning of FY 2023 we have developed 30 new
stores totalling 1.4 million sq ft of new space through investing £222
million in new store capital expenditure, expanding the Group's MLA by 19.4%
to 9.3 million sq ft.
Included in this, in FY 2025 we opened 13 new stores, adding 0.7 million sq ft
to the portfolio which reached 211 stores. These openings mark a third
consecutive year of opening eight or more new stores to generate long term
growth.
The openings in the year include two in London, four in Paris and seven in
Expansion Markets (Spain four stores, the Netherlands two stores, Belgium one
store). New store locations are focused on key metropolitan areas in each
country.
With these openings, we now have 38 stores in Expansion Markets reflecting our
investment in countries where there are relatively low levels of supply and
positioning our portfolio to capture the opportunity as these markets grow.
New stores opened added 662,200 sq ft of new space with an additional 15,400
sq ft of new space from the extension. This added 677,600 sq ft of space in
total taking Group MLA at 31 October 2025 to 9.3m sq ft.
FY 2025 Stores Opened FH/LH MLA Development Type
London - Lea Bridge FH 80.9 New Build
London - Walton FH 20.7 Conversion
Paris - East 1 (Noisy-le-Grand) FH 60.0 Conversion
Paris - West 3 (Mantes Buchelay) FH 58.0 New Build
Paris - North West 1 (Taverny) FH 54.0 Conversion
Paris - La Défense FH 38.9 New Build
Pamplona FH 64.5 Conversion
Madrid - North East (Barajas) FH 57.2 Conversion
Madrid - South West (Carbanchel) FH 45.4 Conversion
Barcelona - Central 2 (Manso) LH 19.8 Conversion
Randstad - Amsterdam FH 65.4 New Build
Randstad - Utrecht FH 50.0 Conversion
Brussels - Zaventem FH 47.4 New Build
Extensions
Paris - Pyrénées LH 15.4 Extension
Total openings and extensions in 2025 677.6
Our portfolio at the end of FY 2025 is shown in the table below.
Store Portfolio Number of stores MLA (m sq ft) % of Group MLA FY 2025 % increase in MLA
London & South East England 78 3.18 34% +4.2%
Rest of UK 61 2.80 30%
UK Total 139 5.98 64% +1.7%
Paris 34 1.66 18% +17%
Expansion Markets 38 1.64 18% +27%
Total Group 211 9.28 100% +8.0%
Joint ventures (Italy & Germany) 19 1.15 +251.3%
Total group managed MLA (including joint ventures) 230 10.43 +17.0%
The valuation of our portfolio of investment properties increased £193.1
million in the year primarily driven by the completion of developments in the
year, with the valuation at year end of £3.25 billion. We have financed our
development programme through a combination of retained earnings and debt and
as a result, net debt increased in the year by £159.1 million to £1,058.6
million, with the balance sheet remaining strong and comfortably within our
covenants. This disciplined approach to capital allocation has allowed us to
add 2.5 million sq ft to the portfolio over the last ten years without the
need for any equity increases.
Development pipeline
There is a further 1.1 million sq ft of space (20 stores) in the current
development pipeline to be delivered from FY 2026 with total associated capex
of £219 million (of which £116 million was still to go at the end of FY
2025). Within this are three new sites that have been identified and secured
since the FY 2025 half year results. The pipeline continues to reflect our
focus on key metropolitan areas across our markets and includes eleven stores
in London and SE England, four stores in Paris and one in each of Barcelona
and Madrid. In FY 2026 to date, one store has been opened in Paris and one in
London.
Our pipeline prioritises acquiring sites subject to planning, ensuring that
capital for land or building acquisition is deployed only when construction is
imminent, which significantly shortens the investment cycle and accelerates
payback timing. The pipeline reflects an average facility size of 55,000 sq ft
and avoids the development of oversized stores, which we believe offer
materially lower returns on capital due to lower rental rates (a stabilised
rate c. 20% less than our portfolio average), higher construction costs and
longer permitting timelines.
On completion of the existing pipeline the total investment since the start of
FY 2023 will be £441 million funding 2.5 million sq ft of space and 50 new
stores. In addition, we have invested a total of £44 million in joint
ventures in Germany and Italy, which are generating management fees and
provide us with the opportunity to access at scale two large European markets.
Our development hurdle rate is 10% yield-on-cost (defined as incremental
EBITDA/initial investment) upon stabilisation, which is usually five to six
years from opening with earnings break-even (after the cost of financing)
achieved between 18 and 24 months. Consistent with our investment model, new
stores typically follow a clear 'J-curve' trajectory: while year 1 reflects
the impact of a fixed cost base whilst sales ramp up, stores typically achieve
operational break-even towards the end of the first year, followed by rapid
yield acceleration in years 2 to 5 as occupancy and rate move towards
stabilisation.
Recent vintages of new stores, including those opened in FY 2022 and FY 2023,
are tracking in line with these established historical benchmarks towards our
hurdle rate, underpinning our confidence in the future revenue contribution
from our development pipeline. We expect our non-LFL stores (stores 60 days Total
Expected credit loss rate (%) - 8.7% 25.0% 44.3% 6.8%
Estimated total gross carrying amount at default (£'m) 7.7 2.3 1.2 0.7 11.9
Lifetime ECL (£'m) - (0.2) (0.3) (0.3) (0.8)
Net trade receivables as at 31 October 2025 7.7 2.1 0.9 0.4 11.1
France Not past due <28 days 29-60 days >60 days Total
Expected credit loss rate (%) - 9.9% 25.5% 74.0% 62.3%
Estimated total gross carrying amount at default (£'m) 0.7 1.0 0.5 9.8 12.0
Lifetime ECL (£'m) - (0.1) (0.1) (7.3) (7.5)
Net trade receivables as at 31 October 2025 0.7 0.9 0.4 2.5 4.5
UK Not past due <28 days 29-60 days >60 days Total
Expected credit loss rate (%) - 11.8% 20.0% 83.3% 8.4%
Estimated total gross carrying amount at default (£'m) 7.4 1.7 1.0 0.6 10.7
Lifetime ECL (£'m) - (0.2) (0.2) (0.5) (0.9)
Net trade receivables as at 31 October 2024 7.4 1.5 0.8 0.1 9.8
France Not past due <28 days 29-60 days >60 days Total
Expected credit loss rate (%) - 9.2% 25.8% 72.2% 56.3%
Estimated total gross carrying amount at default (£'m) 1.1 0.9 0.5 7.7 10.2
Lifetime ECL (£'m) - (0.1) (0.1) (5.5) (5.7)
Net trade receivables as at 31 October 2024 1.1 0.8 0.4 2.2 4.5
Outstanding trade receivables for the Expansion Markets totalled less than £2
million; therefore, the risk profile for this geography has been excluded.
The difference between expected credit loss rates in the UK and France is
largely due to the differing processes for collecting overdue debt, with legal
proceedings in France typically taking significantly longer than in the UK.
The above balances are short term (including other receivables) and therefore
the difference between the book value and the fair value is not significant.
Consequently, these have not been discounted.
Movement in the credit loss allowance:
2025 2024
£'m £'m
Balance at the beginning of the year 6.6 5.8
Amounts provided in the year 3.2 3.2
Amounts written off as uncollectable (1.1) (2.4)
Balance at the end of the year 8.7 6.6
The carrying amounts of the Group's trade and other receivables are
denominated in the following currencies:
2025 2024
£'m £'m
Sterling 17.2 19.2
Euros 14.4 12.5
31.6 31.7
17. Cash and cash equivalents
2025 2024
£'m £'m
Cash at bank and in hand 11.0 25.3
The carrying amounts of the Group's cash and cash equivalents are denominated
in the following currencies:
2025 2024
£'m £'m
Sterling 2.3 12.2
Euros 8.7 13.1
11.0 25.3
In the previous financial year, there was £0.9 million of restricted cash
which related to the provision in note 27. The restricted cash was held to
settle any amounts owed to the French tax authorities pending results of the
ongoing litigation. This cash was released to the Group in the current
financial year and there is £nil restricted cash as at 31 October 2025.
18. Trade and other payables
2025 2024
£'m £'m
Current
Trade payables 6.7 10.1
Other taxes and social security payable 7.1 4.3
Other payables 4.5 3.4
Accruals 17.7 15.7
Deferred income 18.0 18.3
54.0 51.8
The carrying amounts of the Group's trade and other payables are denominated
in the following currencies:
2025 2024
£'m £'m
Sterling 33.2 33.7
Euros 20.8 18.1
54.0 51.8
19. Borrowings
2025 2024
£'m £'m
USPP Notes 546.9 473.3
RCF - drawn 347.8 355.7
Term loan 68.2 -
Debt issue costs (4.7) (4.8)
958.2 824.2
As at 31 October 2025 the Group has US Private Placement Notes ("USPPs") of
€377.1 million (FY 2024: €307.1 million) which have maturities between
2026 and 2033 with fixed-rate coupons of between 0.93% and 4.03% and of
£215.5 million (FY 2024: £215.5 million) which have maturities between 2026
and 2031 with fixed-rate coupons of between 1.96% and 2.92%. The weighted
average cost of interest on the overall USPPs at 31 October 2025 was 2.36% per
annum. In addition, the Group has arranged a Revolving Credit Facility ("RCF")
with its relationship banks. The RCF attracts a margin over SONIA/EURIBOR of
between 1.25% and 1.45%, by reference to the Group's performance against its
covenants.
In June 2025 the Group entered into a new Euro-denominated Term loan facility
agreement for €77.5 million which has a maturity date of 30 June 2030. The
interest on this loan has a fixed margin of between 1.25% and 1.45%, by
reference to the Group's performance against its covenants, and a variable
rate based on the three-month EURIBOR rate at the start of each quarter. At
the same time, a matching interest rate swap was entered into with the same
maturity date with the effect of fixing the interest rate of the Term loan
(see note 20).
The €654.6 million of Euro denominated borrowings provides a natural hedge
against the Group's investment in the Paris and Expansion Markets businesses,
so the Group has applied net investment hedge accounting and the retranslation
of these borrowings is recognised directly in the translation reserve.
Borrowings are stated after unamortised issue costs of £4.7 million (FY 2024:
£4.8 million).
Borrowings are repayable as follows:
Group
2025 2024
£'m £'m
Within one year 96.5 -
Between one and two years 65.1 93.7
Between two and five years 634.3 630.9
After more than five years 167.0 104.4
Borrowings 962.9 829.0
Unamortised debt issue costs (4.7) (4.8)
958.2 824.2
The effective interest rates at the balance sheet date were as follows:
2025 2024
USPP Notes - GBP 2.55% 2.55%
USPP Notes - EUR 2.24% 1.83%
RCF - GBP Monthly, quarterly or six-monthly SONIA plus 1.25% Monthly, quarterly or six-monthly SONIA plus 1.25%
RCF - EUR Monthly, quarterly or six-monthly EURIBOR plus 1.25% Monthly, quarterly or six-monthly EURIBOR plus 1.25%
Term loan - EUR Three-month EURIBOR plus 1.25% -
In addition to the margin of 1.25%, the RCF and Term loan also had ESG targets
enabling a reduction in the margin of up to 5bps to 1.20%. In the period these
targets were all met.
The carrying amounts of the Group's borrowings are denominated in the
following currencies:
2025 2024
£'m £'m
Sterling 387.5 464.5
Euros 575.4 364.5
962.9 829.0
Borrowing facilities
The Group has the following undrawn committed borrowing facilities available
at 31 October 2025 in respect of which all conditions precedent had been met
at that date:
Floating rate
2025 2024
£'m £'m
Expiring beyond one year 152.2 144.3
20. Financial instruments
Financial risk management
Financial risk management is an integral part of the way the Group is managed.
In the course of its business, the Group is exposed primarily to interest rate
risk, liquidity risk, credit risk and foreign exchange risk. The overall aim
of the Group's financial risk management policies is to minimise potential
adverse effects on financial performance and Net Asset Value ("NAV"). The
Group manages the financial risks within policies and operating parameters
approved by the Board of Directors and does not enter into speculative
transactions. Treasury activities are managed centrally under a framework of
policies and procedures approved and monitored by the Board. These objectives
are to protect the assets of the Group and to identify and then manage
financial risk. In applying these policies, the Group will utilise derivative
instruments, but only for risk management purposes.
The principal financial risks facing the Group are described below.
Interest rate risk
The Group finances its operations through a mixture of retained profits,
issued share capital, and borrowings. The Group borrows in Sterling and Euros
at floating rates and, where necessary, uses interest rate swaps to convert
these to fixed rates to generate the preferred interest rate profile and to
manage its exposure to interest rate fluctuations. A 1ppt change in interest
rates would have a £3.5 million (FY 2024: £3.5 million) impact on net
interest. This sensitivity impact has been prepared by determining average
floating interest rates and flexing these against average floating-rate
deposits and borrowings by major currency area over the course of the year.
Liquidity risk
The Group's policy on liquidity risk is to ensure that sufficient cash is
available to fund ongoing operations without the need to carry significant net
debt over the medium term. The Group's principal borrowing facilities are
provided by a group of core relationship banks in the form of term loans,
overdrafts, revolving credit facilities, and notes. The quantum of committed
borrowing facilities available to the Group is reviewed regularly and is
designed to exceed forecast peak gross debt levels. Further details of the
Group's borrowing facilities, including the repayment profile of existing
borrowings and the amount of undrawn committed borrowing facilities, are set
out in note 19.
Credit risk
Credit risk arises on financial instruments such as trade and other
receivables. Policies and procedures exist to ensure that customers have an
appropriate credit history and account customers are given credit limits that
are monitored. Counterparty exposure positions are monitored regularly so that
credit exposures to any one counterparty are within predetermined limits.
Overall, the Group considers that it is not exposed to a significant amount of
credit risk. The amount of trade receivables outstanding at the year end does
not represent the maximum exposure to operational credit risk due to the
normal patterns of supply and payment over the course of a year. Based on
management information collected as at month ends the maximum level of net
trade receivables at any one point during the year was £16.1 million (FY
2024: £15.6 million).
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk in
respect of the Euro. Foreign exchange risk arises from future commercial
transactions, recognised assets and liabilities, and net investments in
foreign operations.
The Group has investments in foreign operations in France, Spain, the
Netherlands, and Belgium, whose net assets are exposed to foreign currency
translation risk. Currency exposure arising from the net assets of the Group's
foreign operations is managed primarily through borrowings denominated in the
relevant foreign currency.
The Group holds Euro denominated borrowings totalling €654.6 million (FY
2024: €364.5 million) and as such is exposed to foreign exchange risk on
these borrowings. The foreign exchange risk relating to the borrowings
provides a natural hedge against the Euro denominated assets of its operations
in France, Spain, the Netherlands, and Belgium and is 100% effective. As a
result, the Group applies net investment hedging in respect of these
borrowings and the reduction in fair value during the year of £17.3 million
(FY 2024: £6.9 million increase) was recognised in other comprehensive
income.
At 31 October 2025, if Sterling had weakened by 10% against the Euro with all
other variables held constant, pre-tax profit for the year would have been
unchanged due to Euro bank balances held by UK entities (FY 2024: £0.1
million lower). Equity (the translation reserve) would have been £18.4
million higher (FY 2024: £34.7 million higher), arising primarily on
translation of Euro denominated net assets held by subsidiary companies with a
Euro functional currency less the Euro denominated borrowings.
The Group is not exposed to significant transaction foreign exchange risk as
purchases are invoiced in either Sterling or Euros.
Capital risk
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders, return capital to shareholders,
issue new shares, or sell assets to reduce debt. Being a REIT, the Group is
required to distribute as a dividend a minimum of 90% of its property rental
income to shareholders. This is factored into the Group's capital risk
management.
Consistent with others in the industry, the Group monitors capital on the
basis of a loan-to-value ("LTV") ratio. The Group considers that an LTV ratio,
defined as net debt (excluding derivatives and lease liabilities) as a
proportion of the valuation of investment properties and investment properties
under construction (excluding lease liabilities), below 40% represents an
appropriate medium term capital structure objective. The Group's LTV ratio was
28.1% at 31 October 2025 (FY 2024: 25.1%).
The LTV ratios at 31 October 2025 and 2024 were as follows:
2025 2024
£'m £'m
Borrowings (note 19) 958.2 824.2
Lease liabilities (note 21) 111.4 100.6
Less: cash and cash equivalents (note 17) (11.0) (25.3)
Net debt 1,058.6 899.5
Less: lease liabilities (111.4) (100.6)
Net debt (excluding lease liabilities) 947.2 798.9
IPs and IPUCs (excluding investment property lease liabilities) 3,368.7 3,183.5
Loan-to-value ratio 28.1% 25.1%
The Group gearing ratio is defined as total net debt divided by total capital.
Total net debt is calculated as total borrowings (including current and
non-current borrowings and lease liabilities as shown in the consolidated
balance sheet) less cash and cash equivalents. Total capital is calculated as
equity as shown in the consolidated balance sheet, plus net debt. The gearing
ratio was 31.6% at 31 October 2025 (FY 2024: 28.8%).
The Group has complied with all of the covenants on its banking facilities
during the year.
The fair value of borrowings is calculated as:
2025 2024
Book value Fair value Book value Fair value
£'m £'m £'m £'m
Borrowings 958.2 931.8 824.2 759.6
Fair value hierarchy
IFRS 13 requires fair value measurements to be recognised using a fair value
hierarchy that reflects the significance of the inputs used in the
measurements, according to the following levels:
Level 1 - unadjusted quoted prices in active markets for identical assets or
liabilities.
Level 2 - inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly.
Level 3 - inputs for the asset or liability that are not based on observable
market data.
The table below shows the level in the fair value hierarchy into which fair
value measurements have been categorised:
Assets per the balance sheet 2025 2024
£'m £'m
Amounts due from associates - Level 2 0.7 0.5
Liabilities per the balance sheet 2025 2024
£'m £'m
Borrowings - Level 2 962.9 829.0
There were no transfers between Level 1, 2, and 3 fair value measurements
during the current or prior year.
Hedging arrangements
The new Euro-denominated Term loan facility agreement exposes the Group to a
risk in the variability of interest payments due to possible changes in the
three-month EURIBOR rate over the five-year loan term. In accordance with the
Group's risk mitigation strategy, the variable interest payments have been
hedged in full using an interest rate swap which has a notional value of
€77.5 million and a five-year term. The variable interest rate on the swap
is the three-month EURIBOR rate, and the fixed rate is 2.196%. Interest on the
swap is paid on a quarterly basis in line with the interest payable on the
Term loan. As the swap shares the same risk exposure as the loan, the hedge
effectiveness has been assessed as 100%. The impact of credit risk is assessed
to be immaterial. The swap and the Term loan together have been formally
designated as having a hedging relationship and are accounted for as a cash
flow hedge.
Derivatives designated as cash flow hedges as at 31 October 2025
Notional contract amount Fair value of derivative liability at year end based on fair value of hedged Line item in statement of financial position Change in fair value of hedged item used as a basis to determine Hedge effectiveness
item ineffectiveness
£'m £'m £'m %
Interest rate swap 68.2 - Borrowings - 100%
For the year ended 31 October 2025 no amounts (2024: no amounts) were
reclassified to the income statement in respect of hedge ineffectiveness.
Maturity profile of derivative financial instruments as at 31 October 2025
Less than three months Three to twelve months One to three years Three to five years Total
£'m £'m £'m £'m £'m
Fixed payment (0.4) (1.1) (3.0) (2.5) (7.0)
Floating receipt 0.3 1.0 2.9 2.8 7.0
Net (payment)/receipt (0.1) (0.1) (0.1) 0.3 -
Financial instruments by category
Assets per the balance sheet Financial assets Assets at fair Total
at amortised cost value through £'m
£'m profit and loss
£'m
Trade receivables and other receivables excluding prepayments 25.5 - 25.5
Cash and cash equivalents 11.0 - 11.0
At 31 October 2025 36.5 - 36.5
Liabilities per the balance sheet Other financial Liabilities at fair Total
liabilities at value through £'m
amortised cost profit and loss
£'m £'m
Borrowings (excluding lease liabilities) 958.2 - 958.2
Lease liabilities 111.4 - 111.4
Payables and accruals 28.9 - 28.9
At 31 October 2025 1,098.5 - 1,098.5
Assets per the balance sheet Financial assets Assets at fair Total
at amortised cost value through £'m
£'m profit and loss
£'m
Trade receivables and other receivables excluding prepayments 22.6 - 22.6
Cash and cash equivalents 25.3 - 25.3
At 31 October 2024 47.9 - 47.9
Liabilities per the balance sheet Other financial Liabilities at fair Total
liabilities at value through £'m
amortised cost profit and loss
£'m £'m
Borrowings (excluding lease liabilities) 824.2 - 824.2
Lease liabilities 100.6 - 100.6
Payables and accruals 29.2 - 29.2
At 31 October 2024 954.0 - 954.0
The interest rate risk profile, after taking account of derivative financial
instruments, was as follows:
2025 2024
Floating rate Fixed rate Total Floating rate Fixed rate Total
£'m £'m £'m £'m £'m £'m
Borrowings 347.8 610.4 958.2 355.7 468.5 824.2
The weighted average interest rate of the fixed-rate financial borrowing was
2.48% (FY 2024: 2.16%) and the weighted average remaining period for which the
rate is fixed was 3.8 years (FY 2024: 4.3 years).
Maturity analysis
The table below analyses the Group's financial liabilities and non-settled
derivative financial instruments into relevant maturity groupings based on the
remaining period at the balance sheet date to the contractual maturity dates.
The amounts disclosed in the table are the contractual undiscounted cash
flows.
Less than One to two Two to five More than
one year years years five years
£'m £'m £'m £'m
31 October 2025
Borrowings 96.5 65.1 634.3 167.0
Lease liabilities 16.3 15.7 38.2 79.5
Payables and accruals 27.7 - - -
140.5 80.8 672.5 246.5
Less than One to two Two to five More than
one year years years five years
£'m £'m £'m £'m
31 October 2024
Borrowings 9.3 103.1 657.4 123.6
Lease liabilities 14.7 14.2 35.0 75.5
Payables and accruals 28.6 - - -
52.6 117.3 692.4 199.1
21. Lease liabilities
The Group leases certain of its investment properties under lease liabilities.
The average remaining lease term is 13.6 years (FY 2024: 13.2 years).
Minimum lease payments Present value of minimum
lease payments
2025 2024 2025 2024
£'m £'m £'m £'m
Within one year 16.3 14.7 15.4 14.0
Within two to five years 53.9 49.2 46.0 42.3
Greater than five years 79.5 75.5 50.0 44.3
149.7 139.4 111.4 100.6
Less: future finance charges on lease liabilities (38.3) (38.8) - -
Present value of lease liabilities 111.4 100.6 111.4 100.6
2025 2024
£'m £'m
Current 15.4 14.0
Non-current 96.0 86.6
111.4 100.6
Amounts recognised within the consolidated income statement include interest
on lease liabilities of £5.8 million (FY 2024: £5.8 million). Amounts
recognised in the consolidated statement of cash flows include lease
liabilities principal payments of £10.3 million (FY 2024: £9.7 million) and
interest on lease liabilities of £5.8 million (FY 2024: £5.8 million). The
maturity analysis for lease liabilities under contractual undiscounted cash
flows is included in note 20.
22. Deferred income tax
Deferred tax is calculated in full on temporary differences under the
liability method using tax rates enacted in each respective jurisdiction
corresponding to when they are expected to reverse. The movement on the
deferred tax account was as shown below.
Note 2025 2024
£'m £'m
At 1 November 2024 149.1 132.6
Charge to income statement 8 11.6 22.0
Exchange differences 7.2 (5.5)
At 31 October 2025 167.9 149.1
The movements in deferred tax assets and liabilities during the period are
shown below.
Deferred tax liability Revaluation of Other timing Total
investment differences £'m
properties £'m
£'m
At 1 November 2023 139.2 - 139.2
Charge to income statement 21.7 - 21.7
Exchange differences (5.5) - (5.5)
At 31 October 2024 155.4 - 155.4
At 1 November 2024 155.4 - 155.4
Charge to income statement 13.9 - 13.9
Exchange differences 7.4 - 7.4
At 31 October 2025 176.7 - 176.7
Deferred tax asset Other timing Tax losses Total
differences £'m £'m
£'m
At 1 November 2023 0.8 5.8 6.6
Charge to income statement (0.2) (0.1) (0.3)
At 31 October 2024 0.6 5.7 6.3
At 1 November 2024 0.6 5.7 6.3
Credit to income statement 0.1 2.2 2.3
Exchange differences - 0.2 0.2
At 31 October 2025 0.7 8.1 8.8
The deferred tax liability due after more than one year is £176.7 million (FY
2024: £155.4 million).
As at 31 October 2025, the Group had trading losses of £43.7 million (FY
2024: £34.3 million) and capital losses of £36.4 million (FY 2024: £36.4
million) in respect of its UK operations.
As at 31 October 2025, the Group had trading losses of £9.2 million (FY 2024:
£11.0 million) in respect of its Netherlands and Belgium operations.
As at 31 October 2025, the Group had trading losses of £8.2 million (FY 2024:
£5.5 million) in respect of its Spanish operations.
All losses can be carried forward indefinitely. A deferred tax asset of £8.1
million (FY 2024: £5.7 million) has been recognised in respect of these
losses in the current period, recognising the extent to which the Group
believes these losses will be utilised in the future to reduce income tax
liabilities.
23. Called up share capital
2025 2024
£'m £'m
Called up, allotted, and fully paid
218,490,500 (FY 2024: 218,490,500) ordinary shares of 1 pence each 2.2 2.2
Ordinary shares
The holders of the ordinary shares shall be entitled to one vote for each
ordinary share.
During the year the Company issued nil ordinary shares (FY 2024: 451,081
ordinary shares).
Safestore Holdings plc Sharesave scheme
The Sharesave awards are savings-related awards accruing over a three-year
period from 1 November 2024. There are no performance conditions attached to
the awards; as such, the sole condition for vesting is continued service. The
fair value of the Sharesave options granted during the year was assessed by an
independent actuary using a Black-Scholes model based on the assumptions set
out in the table below:
Grant date
August 2025
(UK three years)
Number of options granted 136,738
Share price at grant date (pence) 666
Exercise price (pence) 523
Risk-free rate of interest (% per annum) 3.78%
Expected volatility (% per annum) 29.9%
Expected dividend yield (% per annum) 4.58%
Expected term to exercise (years) 3.23
Value per option (pence) 174
Safestore Long Term Incentive Plan
2025 LTIP scheme
The fair values of the 2025 LTIP Scheme awards granted in the accounting
period were assessed by an independent actuary using a Monte Carlo model based
on the assumptions set out in the table below. In determining an appropriate
assumption for expected future volatility, the historical volatility of the
share price of Safestore Holdings plc has been considered along with the
historical volatility of comparator companies.
Grant date January 2025
(PBT EPS part) (MLA part) (ESG part)
Number of options granted 733,128 281,972 112,789
Weighted average share price at grant date (pence) 613 613 613
Exercise price (pence) - - -
Weighted average risk-free rate of interest (% per annum) 4.20% 4.20% 4.20%
Expected volatility (% per annum) 31.0% 31.0% 31.0%
Weighted average expected term to exercise (years) 3.0 3.0 3.0
Weighted average value per option (pence) 3.47 3.47 3.47
Retention scheme
The retention scheme awards granted in the accounting period accrue over a
three-year period from 1 November 2025. There are no market performance
conditions attached to the awards; as such, the conditions for vesting are
revenue, MLA, and personal performance targets. The fair value of the options
granted during the year was assessed by an independent actuary using a
Black-Scholes model based on the assumptions set out in the table below:
Retention scheme
Number of options granted 558,452
Share price at grant date (pence) 8.10
Exercise price (pence) -
Risk-free rate of interest (% per annum) 3.99%
Expected volatility (% per annum) 29.2%
Expected dividend yield (% per annum) 3.73%
Expected term to exercise (years) 3.29
Value per option (pence) 716
Details of the awards outstanding under all of the Group's share schemes are
set out below:
Date of grant At Granted Exercised Lapsed At Exercise Expiry
31 October 31 October price date
2024 2025
Safestore Holdings plc Sharesave scheme
20/08/2021 19,160 - - (19,160) - 824.0p 01/05/2025
22/08/2022 21,653 - - (11,419) 10,234 896.0p 01/05/2026
22/08/2023 112,078 - - (61,236) 50,842 692.0p 01/05/2027
14/08/2024 93,100 - - (69,424) 23,676 645.0p 01/05/2028
08/08/2025 - 136,738 - (4,911) 131,827 522.8p 01/05/2029
Total 245,991 136,738 - (166,150) 216,579
Safestore Long Term Incentive Plan - 2017
05/02/2019 17,500 - - - 17,500 0.1p 28/09/2027
23/01/2020 5,731 - (2,000) - 3,731 0.1p 28/09/2027
Total 23,231 - (2,000) - 21,231
Safestore Long Term Incentive Plan - 2020
18/03/2020 28,916 - (739) - 28,177 0.0p 17/03/2030
Total 28,916 - (739) - 28,177
Safestore Long Term Incentive Plan - 2021
28/01/2021 26,047 - (5,738) - 20,309 0.0p 27/01/2031
Total 26,047 - (5,738) - 20,309
Safestore Long Term Incentive Plan - 2022
25/01/2022 213,499 - - (213,499) - 0.0p 24/01/2032
29/09/2022 3,968 - - (3,968) - 0.0p 24/01/2032
Total 217,467 - - (217,467) -
Safestore Long Term Incentive Plan - 2023
12/07/2023 644,507 - - (18,983) 625,524 0.0p 11/07/2033
Total 644,507 - - (18,983) 625,524
Safestore Long Term Incentive Plan - 2024
27/02/2024 800,562 - - (27,221) 773,341 0.0p 26/02/2034
Total 800,562 - - (27,221) 773,341
Safestore retention scheme - 2025
17/07/2024 - 558,452 - (17,248) 541,204 0.0p 16/07/2034
Total - 558,452 - (17,248) 541,204
Safestore Long Term Incentive Plan - 2025
20/01/2025 - 1,127,889 - (44,454) 1,083,435 0.0p 19/01/2035
Total - 1,127,889 - (44,454) 1,083,435
In addition, gross amounts totalling £nil (FY 2024: £nil) in respect of
bonuses awarded to Executive Directors for the year ended 31 October 2025 will
be deferred into shares which will vest at the end of two years following the
financial year in which the bonus is earned. The grant date is the last day of
the financial year in which the performance stage is assessed. The share
entitlement will be determined in FY 2026.
The weighted average exercise price of outstanding options under the Sharesave
scheme is 593.5 pence (FY 2024: 702.6 pence). The weighted average exercise
price of options exercised under the Sharesave scheme was nil pence (FY 2024:
599.7 pence).
Own shares
Included within retained earnings are ordinary shares with a nominal value of
£177 (FY 2024: £177) that represent shares held by the Safestore Employee
Benefit Trust in satisfaction of awards under the Group's Long Term Incentive
Plan and which remain unvested.
24. Cash flow from operating activities
Reconciliation of operating profit to net cash inflow from operating
activities:
Cash generated from continuing operations Notes 2025 2024
£'m £'m
Profit before income tax 127.1 398.6
Gain on revaluation of investment properties 13 (23.1) (292.2)
Share of profit in joint ventures and associates 11, 12 (2.5) -
Depreciation 14 1.5 1.5
Net finance expense 7 32.2 27.2
Employee share options 2.0 (0.3)
Changes in working capital:
Decrease in trade and other receivables 0.8 1.2
Increase/(decrease) in trade and other payables 0.5 (2.6)
Decrease in provisions - (0.3)
Cash generated from continuing operations 138.5 133.1
25. Analysis of movement in gross and net debt
2024 Cash flows Non-cash 2025
£'m £'m movements £'m
£'m
Borrowings (824.2) (105.2) (28.8) (958.2)
Lease liabilities (100.6) 10.3 (21.1) (111.4)
Total gross debt (liabilities from financing activities) (924.8) (94.9) (49.9) (1,069.6)
Cash in hand 25.3 (13.9) (0.4) 11.0
Total net debt (899.5) (108.8) (50.3) (1,058.6)
2023 Cash flows Non-cash 2024
£'m £'m movements £'m
£'m
Borrowings (725.8) (110.3) 11.9 (824.2)
Lease liabilities (101.4) 9.7 (8.9) (100.6)
Total gross debt (liabilities from financing activities) (827.2) (100.6) 3.0 (924.8)
Cash in hand 16.9 8.7 (0.3) 25.3
Total net debt (810.3) (91.9) 2.7 (899.5)
The table above details changes in the Group's liabilities arising from
financing activities, including both cash and non-cash changes. Liabilities
arising from financing activities are those for which cash flows were, or
future cash flows will be, classified in the Group's consolidated cash flow
statement as cash flows from financing activities.
The cash flows from borrowings are made up of the net amount of proceeds from
borrowings, repayment of borrowings and debt issuance costs.
Non-cash movements relate to the amortisation of debt issue costs of £1.4
million (FY 2024: £1.6 million), foreign exchange movements of £27.3 million
(FY 2024: £13.2 million), and modifications due to lease re-gearings of
£21.1 million (FY 2024: £8.9 million).
26. Employees and Directors
Staff costs (including Directors) for the Group during the year 2025 2024
£'m £'m
Wages and salaries 30.6 26.9
Social security costs 3.4 3.3
Other pension costs 1.1 1.0
Share-based payments 2.0 (0.3)
37.1 30.9
During the period ended 31 October 2025, the Company's equity-settled
share-based payment arrangements comprised the Safestore Holdings plc
Sharesave scheme and the Safestore Long Term Incentive Plans. The number of
awards made under each scheme is detailed in note 23. No options have been
modified since grant under any of the schemes, other than the modification in
respect of the LTIP awards for Executive Directors described in note 23.
Average monthly number of people (including Executive Directors) employed 2025 2024
Number Number
Sales 698 646
Administration 138 142
836 788
Key management compensation 2025 2024
£'m £'m
Wages and salaries 2.8 2.9
Social security costs 0.7 0.4
Post-employment benefits 0.1 0.1
Share-based payments 0.8 -
4.4 3.4
The key management figures given above include Directors.
Directors 2025 2024
£'m £'m
Aggregate emoluments 2.5 2.2
27. Provisions
In France, the basis on which property taxes have been assessed has been
challenged by the tax authority for financial years 2011 onwards. In November
2022, the French Supreme Court delivered a final judgement in respect of
litigation for years 2011 to 2013, which resulted in a partial success for the
Group. The Group is separately pursuing litigation in respect of years since
2013 and has lodged an appeal with the French administrative tribunal against
the issues included in assessments for 2013 onwards on which it was ultimately
unsuccessful in the French Supreme Court for the earlier years. A provision is
included in the consolidated financial accounts of £2.3 million at 31 October
2025 (FY 2024: £2.3 million) to reflect the increased uncertainty surrounding
the likelihood of a successful outcome. Of the total provided, £nil has been
released in relation to the year ended 31 October 2025 (FY 2024: £(0.2)
million within cost of sales (Underlying EBITDA)). The litigation is expected
to be resolved over the next few years.
It is possible that the French tax authority may appeal the decisions of the
French Court of Appeal in which the Group was successful to the French Supreme
Court. The maximum potential exposure in relation to these issues at 31
October 2025 is £0.8 million (FY 2024: £0.8 million). No provision for any
further potential exposure has been recorded in the consolidated financial
statements since the Group believes it is more likely than not that a
successful outcome will be achieved, resulting in no additional liabilities.
28. Contingent liabilities
The Group has a contingent liability in respect of property taxation in the
French subsidiary as disclosed in note 27.
29. Capital commitments
The Group had £50.0 million of capital commitments as at 31 October 2025 (FY
2024: £119.0 million).
30. Related party transactions
The Group's shares are widely held. Transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on consolidation
and are not disclosed in this note.
Transactions with PBC Les Groues SAS
As described in note 11, the Group has a 24.9% interest in PBC Les Groues SAS
("PBC"). The total amount invested in PBC is included as part of its
non-current investments in associates. During the period, the Group purchased
a fully developed store called La Défense from PBC for £7.2 million (€8.5
million) (FY 2024: £nil (€nil)). The balance outstanding at 31 October 2025
included within trade and other receivables was £nil (FY 2024: £nil).
Transactions with CERF II German Storage Topco S.a.r.l ("CERF II")
As described in note 11, the Group has a 10.0% interest in CERF II German
Storage Topco S.a.r.l ("CERF II"). The total amount invested is included as
part of its non-current investments in associates. During the period, the
Group recharged £0.5 million (FY 2024: £0.4 million) relating to management
and development services and earned £0.2 million (FY 2024: £0.1 million) in
interest income. The balance outstanding at 31 October 2025 was £0.3 million
(FY 2024: £0.5 million).
Transactions with EasyBox
As described in note 12, the Group has a 50.0% interest in the EasyBox joint
venture. The total amount invested is included as part of its non-current
investments in joint ventures. Safestore Italia S.R.L. (a wholly owned
subsidiary of the Group) acts as property manager for the joint venture. In
its capacity as property manager, it incurs costs on behalf of the joint
venture which are recharged in accordance with the property management
agreement. The balance of these recharges outstanding at 31 October 2025 was
£0.4 million (FY 2024: £nil). During the period, Safestore Italia S.R.L also
received a management fee from the joint venture of £0.8 million (FY 2024:
£nil). The balance outstanding in relation to management fees at 31 October
2025 was £nil (FY 2024: £nil).
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