Safestore Backs Annual Guidance As Third Quarter Revenue Grows

LONDON (Alliance News) - Safestore Holdings PLC on Wednesday said revenue rose in the third ...

Alliance News 12 September, 2018 | 8:50AM
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LONDON (Alliance News) - Safestore Holdings PLC on Wednesday said revenue rose in the third quarter of its current financial year, boosted by a higher occupancy rate.

The self-storage company said revenue for the three months to the end of July grew 11% to GBP36.4 million from GBP32.9 million reported for the same period in 2017.

This takes its revenue for the year-to-date to GBP105.6 million, up 11% from GBP95.5 million last year, or 9.9% higher at constant currency.

Safestore said its closing occupancy rate for the quarter was 75.8%, up 2.7 percentage points from 73.1% a year prior. The average storage rate declined 2.8% year-on-year to GBP25.32 per square foot from GBP26.06, and fell 3.1% at constant currency.

On a like-for-like basis, revenue for the quarter rose 5.6% to GBP34.0 million from GBP32.1 million. This was helped by a strong like-for-like performance in Paris, up 4.3%, whilst the UK rose 5.9%.

In the UK, revenue grew by 12% to GBP27.6 million. During the period, the company added 208,000 square feet of like-for-like occupancy in the region compared to 202,000 square feet the year before.

Meanwhile, in Paris, revenue grew by 5.3% to EUR9.9 million year-on-year, driven by a 4.5% rise in occupancy. Like-for-like occupancy grew by 37,000 square feet since the end of the second quarter.

Looking ahead, Safestore said it expects a reduction in occupancy in the final quarter of its current financial year, but it remains on course to meet its full-year guidance.

"I am pleased to report a strong performance in the third quarter with increasing momentum in our UK business," said Chief Executive Frederic Vecchioli.

"I am confident that our leading market positions in the UK and Paris and our resilient business model continue to enable us to withstand any macro-economic uncertainty that may arise over the coming months. The company is in a strong position and remains on course to meet the board's full-year expectations," added Vecchioli.

Shares in Safestore were trading 1.2% higher on Wednesday at 540.00 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Safestore Holdings PLC 635.50 GBX -1.32 -
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