Safestore (SAFE) H2 2024 earnings summary

Executive summary

• Group revenue was £223.4m, flat year-on-year at constant currency, with expansion markets delivering 29% total revenue growth and Paris maintaining a 25-year growth streak.

• Adjusted diluted EPRA EPS fell 11.7% to 42.3p, but remains 48% above pre-COVID levels; full-year dividend increased 1% to 30.4p per share.

• Free cash flow was £86.2m, broadly flat year-on-year, and the business remains strongly cash-generative with a progressive dividend policy.

• Property valuation rose by £302m to £3.28bn, with net debt up 11% to support development and LTV at 25.1%.

• Expansion continues with a pipeline of 31 stores (1.6m sq ft), including a major acquisition in Italy, and 97% of the portfolio is in capital cities or major metros.

Financial highlights

• Underlying EBITDA was £135.4m, down 4.8% year-on-year; adjusted EPRA earnings fell 11.8% to £92.7m.

• Free cash flow was £86.2m, down 3.4% from the prior year.

• Investment property valuation increased 13.9% to £3,284.1m.

• Loan-to-value ratio at 25.1%, down 30bps year-on-year; net debt rose to £899.5m.

• Operating profit surged to £425.8m, driven by a £292.2m gain on property revaluation.

Outlook and guidance

• Early FY2025 trading shows group revenue up nearly 3% constant currency, with acceleration in December.

• Like-for-like operating costs projected to rise 7-8% in FY2025 due to wage and business rate inflation.

• Gross interest expected at £34-36m, with P&L interest charge £6-7m higher year-on-year.

• Pipeline of 31 new stores to cost £281-282m, with £150m remaining spend; £112m to be spent in FY2025.

• Dividend growth anticipated to match or exceed earnings growth medium-term.