Join our community of smart investors

Safestore raises earnings expectations after occupancy boost

The self-storage specialist benefited from strong UK performance during the first quarter
Safestore raises earnings expectations after occupancy boost
  • Analysts upgrade earnings forecasts for 2021 after strong first-quarter performance
  • Shares trade at a discount to those of smaller-scale peers

Safestore (SAFE) has raised expectations that earnings for the current financial year will come in at the top end of analyst forecast range, following a strong UK performance during the first quarter. 

The self-storage specialist reported a rise in revenue of almost a tenth at constant currencies, with the closing occupancy rate rising to 80.6 per cent at the end of January, from 73.7 per cent a year earlier. The UK led the way, with regional locations outperforming London and the South-East. 

Management said that if momentum continued, adjusted earnings per share would come in at the top end of the 31.2p-34.6p range forecast by analysts for 2021. The consensus earnings forecast for the 12 months to October has been increased by 6 per cent since the end of August. The shares trade at 25 times forecast earnings, a discount to smaller-scale peers Lok’n Store (LOK) and Big Yellow (BYG). Buy. 

Last IC view: Buy, 836p, 14 Jan 2021