Storage King (SKG) H1 2026 earnings summary

Executive summary

• Statutory profit for HY26 reached $71.1 million, up 4.8% year-over-year, with continued operating strength and scale supporting consideration of internalising management.

• Funds from Operations (FFO) was $41.0 million, down 5.3% compared to HY25, while underlying earnings remained stable.

• Distribution of 3.10 cents per security was flat year-over-year, with FY26 guidance affirmed at 6.20 cents per security.

• Portfolio includes 130 owned trading stores, 74 third-party managed, and a development pipeline, with gross value over $3.7 billion.

• Early-stage discussions on internalisation of management function have commenced, with no certainty of outcome.

Financial highlights

• Total revenue for the half-year was $122.6 million, up from $118.9 million year-over-year.

• Net tangible assets per security increased to $1.76, up 1.1% on FY25.

• Weighted average capitalisation rate (WACR) tightened to 5.43%.

• Gearing at 31.9%, within the 25%-40% target range, with $500 million funding capacity.

• Operating margin held steady at 61% despite higher land tax and statutory expenses.

Outlook and guidance

• FY26 distribution guidance reaffirmed at 6.20 cents per security, targeting a payout ratio of 90-100% of FFO.

• Positive second half earnings skew expected; cost of debt forecast to rise to 3.5% reported, or 4.5% including capitalised interest.

• Development pipeline to deliver nearly 120,000 sqm of new lettable area in the short to medium term.

• Guidance assumes no material deterioration in current business conditions.