Safestore locks up solid first quarter improvements

Self storage provider Safestore posted its first quarter trading update for the three months to 31 January on Tuesday, with like-for-like revenue up 9.4% year-on-year to £29.2m - though at constant exchange rates, the improvement was just 4.7%.

The FTSE 250 company reported a closing occupancy of 3.49 million let square feet, up from 3.41 million in the first quarter of 2016, while its closing occupancy rate as a percentage of maximum lettable area was 71.2%, up from 69.8%.

Average storage rate also improved to £27.64 from £25.73, a change of 7.4% - or 2.7% at constant exchange rates.

On a reported basis, revenue improved 17.8% to £31.8m, or 13.3% at constant exchange rates, and the average storage rate was up 5.2% to £27.02 - or 0.9% at constant exchange rates.

“Trading momentum across the estate in the first quarter has been good against the strong comparative period in 2016, with enquiries and new lets at higher levels than in previous years,” said chief executive officer Frederic Vecchioli.

“As a result, our revenue performance is tracking well and in line with our guidance for both the UK and Paris.

“We remain confident that the positive market dynamics, company fundamentals and trading momentum will allow us to deliver earnings in line with the board's expectations for the current financial year.”