Lok’nStore plans 670,000 sq ft expansion

Lok’nStore plans to add a further 670,000 sq ft to its 2.78m sq ft portfolio, despite a fall in headline profit. The self-storage firm said it had 11 “landmark stores” secured in its pipeline. These include two leaseholds in Basildon and Staines, and two managed sites in Kettering and Bromborough, all of which are under construction. Freehold developments are planned in Bolton, Cheshunt, Barking, Bournemouth, Avonmouth, Milton Keynes and Eastbourne. The new stores will add 29.4% to the group’s total trading space. Lok’nStore currently has 42 stores trading, 17 of which are freehold, nine leasehold and 16 under management contracts. Headline group revenue rose by 1% over the year to £27.1m, while EBITDA was down 8% to £15.1m. Operating costs rose by 14.2% to £11.8m. However, same-store revenues were up by 6.6% and EBITDA up 4%. The group has adjusted assets of £392.9m, up from last year’s £370.9m, more than 80% of which is the group’s freehold estate. Lok’nStore chair Andrew Jacobs said the strategy was to continue to “increase the number of stores we operate without stretching our balance sheet”. “The core focus of this strategy is the acquisition of highly prominent freehold locations in busy towns and cities in England where we will build well-branded Landmark stores,” he added. Lok’nStore’s LTV is currently just 3.7%, down from 6.6% in 2022, and it has £12.3m of net debt, down from £20.3m in the previous year. The group is funding the development of its secured pipeline with the proceeds from its £20.5m equity fundraising in June. This year it invested £17.3m in new store development, adding 12% to its owned-store trading space. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews