7th Jan 2020 08:16
(Alliance News) - Safestore Holdings PLC on Tuesday increased its annual dividend as revenue for the period rose on a growing property portfolio.
For the financial year to the end of October, the FTSE 250 self-storage provider reported a pretax profit of GBP147.3 million, down 21% from GBP185.3 million the year before.
The profit drop was mainly due to a lower gain on investment properties at GBP82.2 million, compared to GBP122.1 million.
On an underlying basis however, pretax profit increased by 7.7% to GBP66.9 million from GBP62.7 million the prior year.
This was on revenue that grew by 5.5% to GBP151.8 million from GBP143.9 million, following a robust performance from Safestore's operations in both the UK and Paris. Total like-for-like revenue was up 4.8%.
In the UK, revenue rose by 5.2% to GBP114.7 million, driven by a rise in occupancy to 76.9% from 72.9%, and new acquisitions, including that of a 34,000 square feet store in Heathrow.
In Paris, revenue increased by 6.9% to EUR42.1 million, also due to occupancy growth.
Safestore reported a net asset value per share as at October 31 of GBP4.52, up 12% from GBP4.02 on the same date a year before, as the value of its portfolio increased by 10% year-on-year to GBP1.35 billion.
Safestore declared an annual dividend of 17.50 pence per share, up 7.7% from 16.25p the year before.
Looking ahead, Safestore said for the first two month of its current financial year, like-for-like revenue has risen by 5.7%, giving the group confidence going forward.
"I am pleased to report another strong performance for the year, with solid trading and significant strategic progress. The group's outright acquisition of OhMyBox and the investment in M3 through our joint venture with Carlyle represent excellent platforms for entry into the attractive Barcelona and Netherlands self storage markets<" said Chief Executive Officer Frederic Vecchioli.
"In addition to the acquisitions and integration of Fort Box and our Heathrow store, we have also opened new stores in Peterborough and Birmingham Merry Hill in the UK and Pontoise in Paris," Vecchioli added.
Shares in Safestore - which is based in Hertfordshire - were up 0.1% at 800.00 pence early Tuesday in London.
By Dayo Laniyan; [email protected]
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