Lok'nStore flags strong first-half performance

Self-storage operator Lok'nStore said in an update on Monday that trading in the first half of the 2022 financial year was “strong”, with storage revenue up 34.1% year-on-year, driven by “significant” improvements in both occupancy and pricing.

The AIM-traded firm said its price per square foot of occupied space was up 18.5%, with unit occupancy ahead 6.0% over 12 months.

It said its fully-funded new store pipeline of 12 locations was progressing well, with its new landmark store in Warrington now open.

The company was also on site at a further five stores, two of which - in Wolverhampton and Stevenage - would be open in the coming months.

Beyond its secured pipeline, which would increase its owned trading space by 49.2%, Lok’nStore said it had a further three sites progressing with lawyers, and was continuing to see “many opportunities” beyond that.

The board said the pipeline of new stores would add “considerable momentum” to sales and earnings growth over the medium term.

Last week, the firm announced the sale-and-manage back of four of its “well-established” stores at a premium to July valuations.

The £37.2m of cash generated from the transaction would be recycled into new, faster-growing landmark stores.

“Trading in the six months to 31 January has been excellent - we have made significant progress on our fully funded new store pipeline of twelve stores,” said executive chairman Andrew Jacobs.

“We are onsite at five stores all of which will open within the next 15 months - this is a busy and exciting time for Lok'nStore.

“Our pipeline of new stores, increasing lettable space by 49.2%, will enable Lok'nStore to increase the rate of dividend growth for shareholders going forward.”

Lok’nStore said it would report its interim results for the six months ended 31 January on 25 April.

At 0900 GMT, shares in Lok’nStore Group were up 2.72% at 1,040p.