Last checked at 22 Feb 2018 07:00
22 February 2018
Safestore Holdings plc
First quarter trading update for the period 1 November 2017 to 31 January 2018
Solid Q1 performance, encouraging trading momentum
Group Operating Performance- total | Q1 2018 | Q1 20172 | Change | Change- CER1 |
Revenue (£'m) | 35.1 | 31.8 | 10.4% | 9.8% |
Closing Occupancy (let sq ft- million)3 | 4.39 | 3.87 | 13.4% | n/a |
Maximum Lettable Area (MLA)4 | 6.27 | 5.64 | 11.2% | n/a |
Closing Occupancy (% of MLA) | 70.0% | 68.6% | +1.4ppts | n/a |
Average Storage Rate (£) | 25.95 | 27.02 | (4.0%) | (4.8%) |
Group Operating Performance- like-for-like5 | Q1 2018 | Q1 20172 | Change | Change- CER1 |
Revenue (£'m) | 32.8 | 31.1 | 5.5% | 4.5% |
Closing Occupancy (let sq ft- million)3 | 3.98 | 3.81 | 4.5% | n/a |
Closing Occupancy (% of MLA) | 71.5% | 68.7% | +2.8ppts | n/a |
Average Storage Rate (£) | 26.82 | 26.93 | (0.4%) | (1.3%) |
Highlights
· Group revenue for the quarter in CER1 up 9.8%
· Like-for-like5 Group revenue for the quarter in CER1 up 4.5%
o UK up 4.3%
o Paris up 5.5%
· Like-for-like5 occupancy performance up 2.8ppts at 71.5% (2017: 68.7%)
o UK up 2.8ppts at 69.8% (2017: 67.0%)
o Paris up 3.1ppts at 78.5% (2017: 75.4%)
· Alligator acquisition completed on 1 November 2017; trading in line with plan and integration progressing well
· Trading is in line with the Board's expectations for the year
Frederic Vecchioli, Chief Executive Officer commented:
"Our first quarter performance has been pleasing, supported by revenue from our recent acquisition of Alligator Self Storage complementing solid like-for-like growth. The strong trading momentum from our Paris stores continued in Q1, combined with encouraging UK occupancy growth.
"Over the last eighteen months we have consolidated our market leading positions in the UK and Paris with the addition of 30 stores to the portfolio via the acquisitions of Space Maker and Alligator and the opening of six new sites. We continue to progress our new store pipeline with four new sites in London (Mitcham, Paddington Marble Arch), Birmingham Merry Hill and Paris Poissy. In addition, our strong and flexible balance sheet allows us to continue to consider value accretive investments as and when they arise.
"Our priority, and largest opportunity, remains the significant upside from the utilisation of our 1.9m square feet of invested unlet space. We remain confident in the future and focused on the continued delivery of value to all shareholders."
Business highlights
UK Trading Performance
UK Operating Performance- total | Q1 2018 | Q1 20172 | Change |
Revenue (£'m) | 26.6 | 24.0 | 10.8% |
Closing Occupancy (let sq ft- million)3 | 3.52 | 3.06 | 15.0% |
Maximum Lettable Area (MLA)4 | 5.10 | 4.57 | 11.6% |
Closing Occupancy (% of MLA) | 68.9% | 67.0% | +1.9ppts |
Average Storage Rate (£) | 23.66 | 24.87 | (4.9%) |
UK Operating Performance- like-for-like5 | Q1 2018 | Q1 20172 | Change |
Revenue (£'m) | 24.3 | 23.3 | 4.3% |
Closing Occupancy (let sq ft- million)3 | 3.12 | 3.00 | 4.0% |
Closing Occupancy (% of MLA) | 69.8% | 67.0% | +2.8ppts |
Average Storage Rate (£) | 24.43 | 24.70 | (1.1%) |
The UK has performed well over the first quarter. Like-for-like revenue growth of 4.3%, combined with the first quarter of Alligator revenues since its acquisition on 1 November 2017, and partially offset by the impact of the closure of the Deptford store in August 2017, resulted in total revenues up 10.8% on the prior year. The 4.9% decline in total average storage rate was primarily driven by the rate currently achieved by the Alligator portfolio being lower than the rate achieved in the Safestore portfolio.
The like-for-like revenue growth of 4.3% was driven by a strong occupancy performance. The like-for-like closing occupancy at the end of the quarter was 69.8%, up 2.8ppts and closing occupancy as measured by sq ft occupied was up 4.0%. Strong ancillary revenues also contributed to the growth and were offset by a 1.1% decline in the average storage rate, although the average storage rate grew by 1.0% compared to Q4 2017.
The Alligator business, which has 569k sq ft of MLA, is now fully integrated into the Group from an operational and systems perspective. The trading performance of the business is in line with our expectations and rebranding of the stores is commencing.
Paris Trading Performance
Paris Operating Performance- total | Q1 2018 | Q1 20172 | Change |
Revenue (€'m) | 9.6 | 9.1 | 5.5% |
Closing Occupancy (let sq ft- million)3 | 0.87 | 0.81 | 7.4% |
Maximum Lettable Area (MLA)4 | 1.17 | 1.07 | 9.3% |
Closing Occupancy (% of MLA) | 74.9% | 75.4% | (0.5ppts) |
Average Storage Rate (€) | 39.73 | 40.95 | (3.0%) |
Revenue (£'m) | 8.5 | 7.8 | 9.0% |
Paris Operating Performance- like-for-like5 | Q1 2018 | Q1 20172 | Change |
Revenue (€'m) | 9.6 | 9.1 | 5.5% |
Closing Occupancy (let sq ft- million)3 | 0.86 | 0.81 | 6.2% |
Closing Occupancy (% of MLA) | 78.5% | 75.4% | +3.1ppts |
Average Storage Rate (€) | 40.10 | 40.95 | (2.1%) |
Revenue (£'m) | 8.5 | 7.8 | 9.0% |
Our Paris business had a further strong quarter growing total revenue by 5.5%. Our new store at Combs-la-Ville, opened in June 2017, is performing well and contributed to the total revenue figures. However, the immaturity of this store has had a dilutive effect on the closing occupancy (% of MLA) and the average rate.
Like-for-like revenue grew by 5.5% in the quarter. Like-for-like occupancy performance was strong for the quarter with closing occupancy at 78.5%, up 3.1ppts compared to 2017. Ancillary revenues were also particularly strong in the quarter but were partially offset by a reduction in the like-for-like average rate which was down 2.1% year-on-year in the quarter.
The impact of the 3% weakening of Sterling compared to the same quarter last year resulted in the Sterling equivalent like-for-like revenue growing by 9.0% in the quarter.
Ends
1 - CER is Constant Exchange Rates (Euro denominated results for the current period have been retranslated at the exchange rate effective for the comparative period, in order to present the reported results on a more comparable basis).
2 - Q1 2017 is the quarter ended 31 January 2017.
3 - Occupancy excludes offices but includes bulk tenancy. As at 31 January 2018, closing occupancy includes 27,000 sq ft of bulk tenancy (31 January 2017: 37,000 sq ft).
4 - MLA is Maximum Lettable Area.
5 - Like-for-like information includes only those stores which have been open throughout both the current and prior financial years, with adjustments made to remove the impact of new and closed stores, as well as corporate transactions.
This announcement contains inside information.
Enquiries
Safestore Holdings plc Frederic Vecchioli, Chief Executive Officer Andy Jones, Chief Financial Officer
www.safestore.com
| 020 8732 1500 |
Instinctif Partners Mark Reed Guy Scarborough | 020 7457 2020 |
Notes to editors:
· Safestore is the UK's largest self-storage group with 146 stores, comprising 120 wholly owned stores in the UK (including 67 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool and Bristol) and 26 wholly owned stores in the Paris region.
· Safestore operates more self-storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and densest UK and French markets.
· Safestore was founded in the UK in 1998. It acquired the French business "Une Pièce en Plus" ("UPP") in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli.
· Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015.
· The Group provides storage to around 60,000 personal and business customers
· As at 31 January 2018, Safestore had a maximum lettable area ("MLA") of 6.27 million sq ft (excluding the expansion pipeline stores) of which 4.39 million sq ft was occupied.
· Safestore employs around 600 people in the UK and France. |