Safestore (SAFE) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue at constant exchange rates (CER) grew 1.1% year-over-year, excluding a one-off insurance premium tax in 2023; like-for-like group revenue was flat.

• UK trading improved with domestic occupancy momentum, while European markets, especially Spain, Netherlands, and Belgium, delivered strong revenue growth.

• Six new stores and extensions opened in the quarter, adding 297,000 sq ft of maximum lettable area (MLA); development pipeline totals 1.4m sq ft, 17% of the existing portfolio.

• Adjusted Diluted EPRA EPS for the full year is expected to be broadly in line with consensus forecasts.

Financial highlights

• Group revenue for Q3 2024 was £56.3m, down 0.4% year-over-year; like-for-like revenue at CER was £55.1m, flat year-over-year.

• UK revenue declined 2.6% (down 1.2% excluding insurance impact); Paris up 1.6%, Spain up 51.6%, Netherlands up 17.3%, Belgium up 20.6%.

• Group closing occupancy rose 0.9% to 6.448m sq ft; group closing occupancy as % of MLA fell 3.4ppt to 75.7%.

• Group average storage rate decreased 0.8% to £29.44 per sq ft; group REVPAF down 5.3% to £26.47.

Outlook and guidance

• UK revenue stabilising with continued growth in Europe; full-year Adjusted Diluted EPRA EPS expected broadly in line with consensus.

• Development pipeline expected to be near-term earnings dilutive but value accretive in the medium term as new stores mature.