Strong demand and a restricted supply of self-storage space helped Lok'nStore (LOK) to deliver a strong trading performance in the year to July, doubling pre-tax profit and boosting adjusted net asset value (NAV) by more than a quarter.
Much of the growth came from a steady increase in the number of purpose-built storage facilities, which now account for nearly two-thirds of the portfolio. Three new stores were opened during the year, and a further four sites have been acquired that will increase trading space by 14 per cent.
New stores will be financed from existing cash flow and through a new five-year revolving credit facility of £40m secured with the Royal Bank of Scotland (RBS) on significantly improved terms over the existing expired facility.
Lok'nStore also manages eight sites on behalf of third-party owners, charging a standard fee and a performance fee, and revenue generated jumped from £176,000 to £439,000; a useful source of income as there is no capital commitment. It also offers a document storage facility, and revenue here grew by 11 per cent to £2.2m.
Analysts at broker finnCap are forecasting adjusted NAV at the July 2017 year-end of 405p a share.
| LOK'NSTORE (LOK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 383.5p | MARKET VALUE: | £102m | |
| TOUCH: | 380-387p | 12-MONTH HIGH: | 385p | LOW: 264p |
| DIVIDEND YIELD: | 2.3% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 1% | NET DEBT: | 33% | |
| Year to 31 Jul | Net asset value (p)* | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 228 | 0.9 | 3.0 | 5 |
| 2013 | 248 | 1.4 | 5.8 | 6 |
| 2014 | 271 | 0.4 | 0.8 | 7 |
| 2015 | 302 | 2.7 | 7.8 | 8 |
| 2016 | 386 | 5.5 | 16.6 | 9 |
| % change | +28 | +107 | +112 | +13 |
Ex-div: 17 Nov Payment: 21 Dec *Adjusted NAV per share | ||||
