Given Lok’n Store (LOK) is trying to expand its store portfolio, there is a clear logic to the self-storage group's efforts to keep “the balance sheet in trim”, in the words of chief executive Andrew Jacobs. Recycling proceeds from the sale of a document storage business, together with the "sale and manage back" of the Crayford store, meant the group was able to cut net debt by almost a tenth in the 12 months to July 2019. During this time, five new stores were opened or bought, while three further sites were acquired.
Plans to accelerate the store development pipeline are backed by a portfolio with a conservative loan-to-value ratio, which declined from 19 to 16.1 per cent in the period. At the same time, bank facilities have increased to £75m, and could be extended to £100m.
Revenue was boosted by a marginal uplift in pricing, and a 6 per cent rise in unit occupancy. By the year-end, 18 of Lok'n Store's 34 stores could count an occupancy rate of at least 70 per cent, while household customers - which tend to generate store for shorter periods than business clients - now account for two-thirds of group revenues.
House broker finnCap forecasts an adjusted NAV of 559p at the July 2020 year-end, rising to 599p a year later.
| LOK'N STORE (LOK) | ||||
| ORD PRICE: | 563p | MARKET VALUE: | £167m | |
| TOUCH: | 556-570p | 12-MONTH HIGH: | 563p | LOW: 395p |
| DIVIDEND YIELD: | 2.1% | TRADING PROP: | £18.4m | |
| PREMIUM TO NAV: | 6% | |||
| INVESTMENT PROP: | £134m | NET DEBT: | 25% | |
| Year to 31 Jul | Net asset value (p)* | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 302 | 2.7 | 7.8 | 8 |
| 2016 | 386 | 5.5 | 16.6 | 9 |
| 2017 | 416 | 4.0 | 11.0 | 10 |
| 2018 | 480 | 4.8 | 11.5 | 11 |
| 2019 | 533 | 4.6 | 11.7 | 12 |
| % change | +11 | -4 | +2 | +9 |
| Ex-div: | 28 Nov | |||
| Payment: | 10 Jan | |||
| *Adjusted net asset value | ||||
