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Investing.com -- Safestore Holdings Plc on Tuesday reported a 4.0% increase in group revenue at constant exchange rates for the first half of the fiscal year 2025, with like-for-like (LFL) revenue climbing 2.8% to £111.5 million.
This growth was attributed to a 1.6% increase in the UK, a 0.8% rise in Paris, and a significant 17.0% surge in expansion markets. The company’s LFL revenue per available square foot (REVPAR) improved by 2.3%, while closing occupancy on an LFL basis advanced to 78.2%.
Shares of Safestore rose over 3% after the announcement.
Despite the positive occupancy trends, underlying occupancy saw a 1.8 percentage point decline to 74.4%, which the company explained as a result of new stores being occupancy dilutive.
The company’s earnings per share (EPS), as measured by the European Public Real Estate Association (EPRA), decreased by 11.0% to £43.6 million and by 10.4% to 19.0 pence per share.
However, the net tangible assets (NTA) displayed a positive trajectory, increasing by 2.3% from the previous fiscal year to 1,117 pence.
Administrative costs saw a significant uptick of 25%, or £1.9 million, which was primarily due to the normalization of head office staff incentives. Interest expenses also increased by £3.3 million, with the company providing guidance that the full-year interest charge is expected to be £5-6 million higher year-over-year.
In the second half of 2025, Safestore opened four new stores, contributing approximately 201,000 square feet. The development pipeline, along with recently opened stores not included in the LFL metrics, are projected to deliver an incremental EBITDA of £35-£40 million upon stabilization.
Safestore’s balance sheet remains robust, with strong operating cash flows of £36.1 million before capital expenditures on new store development of £58.0 million and investment in the EasyBox joint venture of £36.8 million.
The company’s net debt increased to £1,010.5 million from £862.7 million in the first half of 2024, attributed to a higher proportion of Euro-denominated debt, which also led to a reduction in the closing cost of debt from 4.0% to 3.6%.
The group’s loan-to-value ratio stood at 27.4%, with an interest cover ratio of 3.9 times.
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