Safestore (SAFE) H2 2025 earnings summary

Executive summary

• Executed a pan-European expansion strategy, accepting short-term earnings dilution for long-term growth, and opened 13 new stores, adding 677,600 sq ft and securing a 1.1m sq ft pipeline.

• Achieved robust revenue and EBITDAR growth in FY 2025, with total revenue up 5.0% at constant exchange rates and underlying EBITDAR up 1.2%.

• Launched a joint venture in Italy, expanding the European footprint and diversifying growth avenues.

• Investments in technology and operational efficiency supported margin stability and revenue per available square foot growth.

• Transitioning from capital deployment to cash generation as store openings peak and earnings growth shifts to utilization and operational execution.

Financial highlights

• Total revenue grew 4.9% year-on-year to £234.3m; like-for-like revenue up 3.1%.

• Underlying EBITDA/EBITDAR rose 1.2% to £137m; store EBITDA up 3.2%.

• Adjusted diluted EPS was 40.3p, slightly down due to expansion funding but in line with consensus.

• Full-year dividend increased 1% to 30.7p per share.

• Net debt (including leases) increased by £159m to £1.1bn due to new borrowings for expansion.

Outlook and guidance

• FY 2026 outlook is cautiously optimistic, with a return to EPS growth expected as cost headwinds ease and new store dilution fades.

• Like-for-like underlying costs of sales projected to rise 3%-6% year-on-year, with inflationary pressures offset by efficiency initiatives.

• Finance costs expected to increase by £1–2m year-over-year due to additional debt for development.

• Development CapEx for FY26 projected at £86m; progressive dividend policy to continue.