Safestore (SAFE) H1 2026 earnings summary

Executive summary

• Achieved revenue and EBITDAR growth in H1 2026, with total revenue up 6.9% to £120.6m and underlying EBITDAR up 3.7% year-over-year, driven by expansion and robust demand across all geographies.

• Underlying profit before tax increased 2.3% to £44.6m, and Adjusted Diluted EPRA EPS rose 2.1% to 19.4p, marking a return to earnings growth.

• Opened 4 new stores, adding 192,000 sq ft; total managed lettable area (MLA) reached 9.47m sq ft, up 2.0%.

• Non-LFL stores and pipeline expected to deliver £30-35m additional EBITDA on stabilisation.

• Investment in technology and operational efficiency continues to drive margin and revenue per available foot (REVPAF), with digital and AI-driven marketing and pricing tools.

Financial highlights

• Total revenue: £120.6m (+6.9% year-over-year); at constant exchange rates (CER), +5.6%; LFL revenue up 3.5% to £117.3m.

• Underlying EBITDAR: £67.9m (+3.7%); underlying EBITDA after leasehold costs: £59.8m (+4.0%).

• Adjusted diluted EPRA EPS: 19.4p (+2.1%); interim dividend per share: 10.2p (+1.0%).

• Net debt: £1,100.8m (+4.0%); LTV: 29.1%; interest cover ratio: 3.9x.

• EPRA Basic NTA per share: 1,120p (-0.8% from FY 2025).

Outlook and guidance

• Cautiously optimistic for FY 2026 with a return to EPS growth and solid Q3 LFL trading to date; FY 2026 EPS projected at the lower end of consensus due to higher H2 interest rates.

• Underlying like-for-like cost of sales expected to increase at the lower end of 3-6% range; net finance costs to rise by £2-£3m.

• Development capex for FY 2026 estimated at £86m; £103m outstanding on 1.0m sq ft pipeline.

• Additional 225k sq ft MLA expected in H2 2026, with 733k sq ft in FY 2027 and beyond.

• Continued progressive dividend policy with focus on building dividend cover.