Growing the estate is crucial when it comes to self-storage, according to Safestore (SAFE) chief executive Frederic Vecchioli. “Scale is what allows you to have a superior digital marketing machine,” he tells us. The group entered two new markets in 2019 after establishing a joint venture with private equity group Carlyle to invest in Dutch self-storage company M3 and acquiring outright OMB Self Storage in Spain for €17m (£14.5m). The high density of both Amsterdam and Barcelona make the cities attractive areas of expansion, according to the CEO.
A 3.4 percentage point rise in occupancy to 77 per cent of the maximum lettable area and a 0.7 per cent increase in the average store rate meant revenue rose 6 per cent at constant currencies during the year to October. However, lower gains on the value of its property portfolio meant operating profit declined.
The rise in the average store rate was tempered by a 0.6 per cent decline in Paris, which included openings in lower priced suburban areas.
Analysts at Peel Hunt forecast an adjusted net asset value (NAV) of 443p a share at the October 2020 year-end, rising to 463p the same time the following year.
| SAFESTORE (SAFE) | ||||
| ORD PRICE: | 797p | MARKET VALUE: | £1.68bn | |
| TOUCH: | 797-798p | 12-MONTH HIGH: | 829p | LOW: 523p |
| DIVIDEND YIELD: | 2.2% | DEVELOPMENT STOCK: | £13.9m | |
| PREMIUM TO NAV: | 89% | |||
| INVESTMENT PROPERTIES: | £1.33bn | NET DEBT: | 43%* | |
| Year to 31 Oct | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 236 | 118 | 52.4 | 9.65 |
| 2016 | 282 | 95 | 42.0 | 11.65 |
| 2017 | 304 | 79 | 37.4 | 14.0 |
| 2018 | 376 | 185 | 84.4 | 16.25 |
| 2019 | 421 | 147 | 62.8 | 17.5 |
| % change | +12 | -21 | -26 | +8 |
| Ex-div: | 5 Mar | |||
| Payment: | 9 Apr | |||
| *Excludes finance leases of £63.5m | ||||
