Abacus Storage King (ASK) H2 2024 earnings summary

Executive summary

• Achieved resilient operating performance in FY24, with 4.6% RevPAM growth to $327 psm and 3.8% rent growth to $360 psm year-over-year.

• Occupancy in established stores reached 91.0%, up 60bps compared to FY23.

• Expanded portfolio with 8 operating store acquisitions and 3 development sites, totaling $137m and 35,100 sqm NLA.

• Delivered 3 new stores valued at $81m, adding 22,000 sqm NLA.

• Storage King remains the most Google-searched self-storage brand in Australia.

Financial highlights

• Total assets at $3.2bn; net tangible assets at $1.58 per security.

• Funds from operations (FFO) of $81.1m; FFO per security at 6.36c; distribution per security at 6.00c.

• Net profit attributable to securityholders was $138.2m; underlying earnings at $88.8m.

• Operating margin at 65%; operating profit increased to $136.2m from $126.8m year-over-year.

• Gearing at 27.5%, up 130bps on FY23 pro forma; average cost of debt at 3.5%.

Outlook and guidance

• FY25 distribution guidance of 6.1c per security, with payout ratio expected at 90%-100% of FFO.

• Growth strategy underpinned by organic growth, acquisitions, developments, and platform enhancements.

• Guidance assumes no material deterioration in current business conditions.