Safestore (SAFE) H1 2024 earnings summary

Executive summary

• Delivered robust H1 2024 results with revenue at £109.2m, down 0.8% year-over-year, and underlying EBITDA at £67.1m, down 3.7%.

• Statutory profit before tax rose 68% to £173.7m, driven by a £121.7m gain on investment property revaluation.

• Free cash flow increased 28.5% to £41.0m, supporting a 1% dividend increase to 10.0p per share.

• Ongoing pan-European expansion with six new store openings and a pipeline of 30 stores representing 1.5m sq ft.

• Property valuation up £126m to £2,838.8m, with EPRA NTA per share up 10% to £10.03.

Financial highlights

• Revenue at £109.2m (down 0.8% year-over-year); underlying EBITDA at £67.1m (down 3.7%).

• Statutory operating profit at £186.3m (up 62.1%); profit before tax at £173.7m (up 68%).

• Adjusted diluted EPRA EPS at 21.2p (down 10.5%); free cash flow at £41.0m (up 28.5%).

• EPRA NTA per share at £10.03 (up 10%); basic net assets per share at £9.35 (up 10.2%).

• Dividend per share up 1.0% to 10.0p.

Outlook and guidance

• Dividend growth expected to at least match earnings growth over the medium term.

• Full-year adjusted diluted EPRA EPS expected in the lower half of consensus estimates.

• Trading in the UK expected to return to growth in H2, with continued strong performance in Europe.

• Total capex on pipeline estimated at £297m, with £170m outstanding; £59m to be spent in H2 2024 and £111m in FY 2025 and beyond.

• Projected £30–35m incremental EBITDA from pipeline; EPS dilution expected in FY24 and FY25, with strong accretive returns by FY29.