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(Alliance News) - Lok'n Store Group PLC on Monday said trading in the first half of its financial year was "buoyant", as revenue got a boost from rising prices.
The London-based self-storage company said same-store revenue for the first six months that ended January 31 increased by 10% from a year ago, while move-ins for the period were up by 14% from a year prior.
Lok'n Store noted that price per square foot of occupied space was up 9.2%, with pricing momentum set to remain due to strong demand and good occupancy levels.
The company added that same-store occupied unit space has seen a 2.6% rise compared with a year ago.
Lok'n Store noted cost pressures on business rates and energy, but said it expects these to be short-term and to eventually return to normal levels. Absolute cost level rises are likely to be driven by an increase in its number of stores, the company explained.
The current new store pipeline will add 49% to its owned trading space once developed, Lok'n Store said, noting that there are a number of opportunities beyond its already secured pipeline.
Construction work continues on new store developments in Bedford, Peterborough, Staines and Basildon, all of which are set to open in 2023, Lok'n Store said. The company's Kettering site is due to open in early 2024.
"As we open new stores and build their occupancy, so their value increases significantly. The cash flow from these stores can then fund future growth and an increasing dividend to our shareholders," Chair Andrew Jacobs commented.
The company said it expects net asset value per share at the end of financial 2023 to be broadly unchanged from GBP9.72 per share at the end of financial 2022.
Lok'n Store shares were down 2.7% trading at 937.00 pence per share on Monday afternoon in London.
By Harvey Dorset, Alliance News reporter
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