LONDON - Safestore Holdings plc, a UK-based self-storage provider, reported a slight revenue increase in its fourth quarter trading update for the period of August 1 to October 31, 2024. The company saw a 0.5% rise in revenue to £57.9 million compared to £57.6 million in the same period last year, despite a challenging economic environment.
For the full fiscal year of 2024, Safestore's revenue experienced a slight decrease of 0.3% to £223.4 million from £224.2 million in the previous year. The company's like-for-like revenue, which adjusts for new and closed stores, showed a return to growth in the quarter, increasing by 0.7% at constant exchange rates (CER).
The group's closing occupancy increased by 2.9% to 6.41 million let square feet, although the occupancy as a percentage of maximum lettable area (MLA) decreased by 2.4 percentage points to 74.6%. The average storage rate fell by 1.9% to £29.64 per square foot.
Safestore's expansion markets, which include Spain, the Netherlands, and Belgium, demonstrated robust growth with a 29.0% year-on-year increase in revenue for the fiscal year 2024. The company also opened two new stores and completed extensions in the quarter, adding a total of 327,000 square feet of MLA.
Frederic Vecchioli, Safestore's CEO, stated that the company has delivered an improved revenue performance in Q4, led by the UK, and has returned to growth for the financial year. He noted that the UK showed improvements in domestic customer occupancy, although business customer demand remained softer than in 2023.
Vecchioli highlighted the strong performance of the company's operations in Paris and the significant contribution of the expansion markets to the group's growth. Safestore's development pipeline includes an additional 26 stores with a total of 1.3 million square feet of MLA, which is expected to provide a clear pathway for future revenue growth.
The diluted EPRA Earnings per Share for the full year are expected to be broadly in line with consensus forecasts. This trading update is based on a press release statement from Safestore Holdings plc.
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