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Safestore deserves investors' attention

The self-storage group has raised earnings guidance twice since the start of the year on the back of a steep rise in occupancy
Safestore deserves investors' attention
  • Strong demand in the UK has driven a sharp rise in occupancy
  • Earnings forecasts upgraded after management raise guidance twice since the start of the year
  • Shares trade at a discount to peers
Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
  • Shares trade at a discount to peers
  • Analyst earnings upgrades
  • Sharp increase in occupancy
  • Geographical diversification
Bear points
  • Potential slowdown in housing market
  • Rich price/earnings ratio

A group that makes its money letting storage space to consumers and business owners in the UK and Europe is hardly likely to be headline-grabbing. Yet Safestore’s (SAFE) earnings potential has not gone unnoticed by investors. Over the past five years, the self-storage specialist has delivered a stellar outperformance of the broader market, notching up a share price gain of 167 per cent versus 15 per cent for the FTSE 350. 

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