Expansion planned as Safestore reports record year
Self-storage provider Safestore has reported an “exceptional” final quarter of its financial year, recording breaking results and confidence in a growing portfolio.
The group, which saw revenues increase by 21% during the quarter to £51.1m and its average storage rate grow by 10.1% to £28.42, said it has a “significant opportunity” to grow.
Safestore, which operates across the UK, Paris and Spain, has some 800,000 sq ft of planned new space in its development pipeline, representing 11% of its total portfolio, and is keen to add more space. The £95m of capital required for the development will be self-financed, said the group, through its own cash flow and existing debt facilities.
Self-storage provider Safestore has reported an “exceptional” final quarter of its financial year, recording breaking results and confidence in a growing portfolio.
The group, which saw revenues increase by 21% during the quarter to £51.1m and its average storage rate grow by 10.1% to £28.42, said it has a “significant opportunity” to grow.
Safestore, which operates across the UK, Paris and Spain, has some 800,000 sq ft of planned new space in its development pipeline, representing 11% of its total portfolio, and is keen to add more space. The £95m of capital required for the development will be self-financed, said the group, through its own cash flow and existing debt facilities.
Chief executive Frederic Vecchioli said: “All geographies have performed strongly and have shown good momentum in the final quarter. The UK business has traded particularly well this quarter, with closing occupancy up by 6 percentage points at 85.4% and exceptionally strong growth in average rate in the final three months driving like-for-like revenue growth of 16.8% for the year.
“The company has weathered the pandemic well and continues to be in a very strong position. Despite the current high levels of occupancy, the business still has 1.1m sq ft of unlet space in its existing fully invested estate, in addition to 800,000 sq ft in its pipeline.
“This represents a significant organic growth opportunity in what remains a fragmented and growing market. Our leading market positions in the UK and Paris, combined with our balance sheet strength and resilient business model, leave us well positioned for the future.”
Safestore’s pipeline of future development includes a 1.2-acre site bought earlier this month off London’s Old Kent Road in south-east London where it is planning a 76,500 sq ft store, an 11,000 sq ft extension to its 42,000 sq ft facility in Winchester, Hampshire, and a 76,500 sq ft unit at Lea Bridge, in north-east London.
Safestore will announce its results for the year ended 31 October on 13 January 2022.
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Image © Safestore
