Expanded Safestore secures decent third quarter performance

The FTSE 250 self storage company said group like-for-like revenue in the period at constant currency was ahead 5.6%, with “strong performance” reported from both geographies.

It said the UK was up 5.9%, and Paris was ahead 4.3%.

Group like-for-like closing occupancy was 77.8%, up 3.3 percentage points on the third quarter of 2017, while the group like-for-like average storage rate in the quarter at constant exchange rates grew 0.5%.

Operationally, Safestore said its Alligator stores were performing in line with expectations.

It opened the Poissy store in the west of Paris during August, and secured a new freehold site at Pontoise in north west Paris during the quarter.

“I am pleased to report a strong performance in the third quarter with increasing momentum in our UK business,” said Safestore’s chief executive officer Frederic Vecchioli.

“Our top priority remains the significant organic growth opportunity represented by the 1.5m square feet of unlet space in our existing fully invested estate.”

Vecchioli said the firm’s recent openings in London, at Paddington, Marble Arch and Mitcham, and Paris at Combs-la-Ville, were performing ahead of their business plans.

He also confirmed that the 12-store Alligator portfolio acquired in November last year, was performing in line with the board’s expectations.

“I am confident that our leading market positions in the UK and Paris and our resilient business model continue to enable us to withstand any macroeconomic uncertainty that may arise over the coming months.

“The company is in a strong position and remains on course to meet the board's full year expectations.”