Storage King (SKG) H2 2026 earnings summary

Executive summary

• Completed internalisation, making the group the only ASX-listed, vertically integrated self-storage platform in Australasia, effective 30 June 2026.

• Achieved strong operational progress, including 2.7% Australian RevPAM growth to $348 psm, 3.0% rent growth to $384 psm, and 90.7% occupancy.

• Delivered a record 34,500 sqm of new NLA from developments and expansions, with a pipeline of 16 assets to add 110,000 sqm (15% of NLA) in the short to medium term.

• Portfolio now includes 132 trading stores, with gross asset value up 8.1% to over $3.9 billion.

• Statutory profit reached $154.3 million for FY26, with a distribution of 6.20 cents per security.

Financial highlights

• Operating revenue rose 3.3% to $236 million; operating margin steady at 62%.

• Funds from Operations (FFO) was $82.1 million, down 3.4% year-over-year; FFO per security was 6.24cps; distribution paid was 6.20cps.

• Net tangible assets (NTA) per security increased to $1.77, up 1.7% year-over-year.

• Net finance costs rose to $39.7 million, reflecting maturing debt hedges.

• Weighted average capitalization rate (WACR) at 5.42%, down three basis points from FY25.

Outlook and guidance

• FY27 distribution guidance set at 4.50cps, with a payout ratio of 80%-100% of FFO.

• Expectation to be at the midpoint of the payout range; at least 25% of distribution to be fully franked.

• Focus on delivering efficiencies from internalisation, expanding revenue management system, and executing a 50,000 sqm development pipeline.

• Finance costs will materially rise as hedges mature and drawn debt increases.

• Short-term earnings headwinds expected from higher interest costs as developments stabilize, but medium-term growth expected from embedded opportunities.