TIDMSAFE
RNS Number : 9492P
Safestore Holdings plc
14 February 2019
14 February 2019
Safestore Holdings plc
First quarter trading update for the period 1 November 2018 to
31 January 2019
Strong Q1 performance, continuing momentum
Group Operating Performance - Q1 2019 Q1 2018(2) Change Change-
total CER(1)
-------------------------------- -------- ----------- --------- --------
Revenue (GBP'm) 37.2 35.1 6.0% 6.0%
Closing Occupancy (let sq ft-
million)(3) 4.60 4.39 4.8% n/a
Maximum Lettable Area (MLA)(4) 6.37 6.27 1.6% n/a
Closing Occupancy (% of MLA) 72.2% 70.0% +2.2ppts n/a
Average Storage Rate (GBP) 26.52 25.95 2.2% 2.1%
Group Operating Performance Q1 2019 Q1 2018(2) Change Change-
- like-for-like(5) CER(1)
------------------------------- -------- ----------- --------- --------
Revenue (GBP'm) 36.8 34.6 6.4% 6.4%
Closing Occupancy (let sq ft-
million)(3) 4.55 4.36 4.4% n/a
Closing Occupancy (% of MLA) 73.5% 70.3% +3.2ppts n/a
Average Storage Rate (GBP) 26.44 25.82 2.4% 2.3%
Highlights
-- Group revenue for the quarter in CER(1) up 6.0%
-- Like-for-like(5) Group revenue for the quarter in CER(1) up 6.4%
o UK up 6.1%
o Paris up 7.3%
-- Like-for-like(5) occupancy performance up 3.2ppts at 73.5% (2018: 70.3%)
o UK up 2.6ppts at 71.8% (2018: 69.2%)
o Paris up 6.0ppts at 80.9% (2018 74.9%)
-- New freehold site acquired in Peterborough and lease in Portsmouth extended
Frederic Vecchioli, Chief Executive Officer commented:
"It has been an excellent start to the financial year. Our first
quarter performance has been strong, continuing the trading
momentum seen in the second half of 2018 in both our UK and Paris
markets.
"We continue to build our new store pipeline with three new
sites in the UK in London- Carshalton, Birmingham Merry Hill and
Peterborough (subject to planning), and two sites in Paris at
Pontoise and Magenta (subject to planning) planned to open during
2019 and 2020. In addition, our strong and flexible balance sheet
remains in good shape and 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 1.8m square feet of fully
invested unlet space. We are pleased with the start to the 2019
financial year, which is in line with our expectations, and remain
confident in the future and focused on the continued delivery of
shareholder value."
Business highlights
UK Trading Performance
UK Operating Performance - total Q1 2019 Q1 2018(2) Change
---------------------------------- -------- ----------- ---------
Revenue (GBP'm) 28.0 26.6 5.3%
Closing Occupancy (let sq ft-
million)(3) 3.64 3.52 3.4%
Maximum Lettable Area (MLA)(4) 5.12 5.10 0.4%
Closing Occupancy (% of MLA) 71.1% 68.9% +2.2ppts
Average Storage Rate (GBP) 24.29 23.66 2.7%
UK Operating Performance - like-for-like(5) Q1 2019 Q1 2018(2) Change
--------------------------------------------- -------- ----------- ---------
Revenue (GBP'm) 27.7 26.1 6.1%
Closing Occupancy (let sq ft-
million)(3) 3.61 3.49 3.4%
Closing Occupancy (% of MLA) 71.8% 69.2% +2.6ppts
Average Storage Rate (GBP) 24.15 23.48 2.9%
The UK has performed strongly in the first quarter of 2019.
Like-for-like revenue growth of 6.1% was driven by a balance of
strong occupancy and good average storage rate performance. The
like-for-like closing occupancy as measured by sq ft occupied was
up 3.4% and the average storage rate continued its improving
performance and grew by 2.9%. Closing occupancy at the end of the
quarter as a percentage of MLA was up 2.6ppts at 71.8% (2018:
69.2%).
Total revenue growth of 5.3% reflected the like-for-like growth
as well as the store openings in Mitcham and Paddington Marble Arch
in 2018, offset by the closures of Merton, Paddington and Leeds.
Both of the new stores opened in 2018 are performing well.
Paris Trading Performance
Paris Operating Performance Q1 2019 Q1 2018(2) Change
- total
-------------------------------- -------- ----------- ---------
Revenue (EUR'm) 10.4 9.6 8.3%
Closing Occupancy (let sq ft-
million)(3) 0.96 0.87 10.3%
Maximum Lettable Area (MLA)(4) 1.25 1.17 6.8%
Closing Occupancy (% of MLA) 76.6% 74.9% +1.7ppts
Average Storage Rate (EUR) 39.46 39.73 (0.7%)
Revenue (GBP'm) 9.2 8.5 8.2%
Paris Operating Performance Q1 2019 Q1 2018(2) Change
- like-for-like(5)
------------------------------- -------- ----------- ---------
Revenue (EUR'm) 10.3 9.6 7.3%
Closing Occupancy (let sq ft-
million)(3) 0.94 0.87 8.0%
Closing Occupancy (% of MLA) 80.9% 74.9% +6.0ppts
Average Storage Rate (EUR) 39.67 39.73 (0.2%)
Revenue (GBP'm) 9.1 8.5 7.1%
Our Paris business had a very strong quarter, growing total
revenue by 8.3%. Our new 80,000 sq ft store at Poissy, opened in
Summer 2018, 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 Euro revenue grew by 7.3% in the quarter.
Like-for-like occupancy performance was strong for the quarter with
closing occupancy at 80.9%, up 6.0ppts compared to 2018. The
like-for-like average rate, which was down 0.2% year-on-year in the
quarter, was impacted by the inclusion of the lower priced suburban
store at Combs-la-Ville being included in the like-for-like
category for the first time.
Sterling equivalent revenue was not impacted by FX rates in the
period as the Sterling:Euro exchange rate for the quarter was in
line with the rate for Q1 2018.
Portfolio Management
New Store - Peterborough
In January 2019 we completed the acquisition of a freehold site
in Peterborough. The site was acquired from Homebase and is one
mile east of the City Centre. Subject to planning permission, the
existing building will be converted into a 42,000 sq ft
self-storage facility and opened in the final calendar quarter of
2019.
Lease Extension - Portsmouth
As part of our ongoing asset management programme, we extended
the lease on our Portsmouth (Fratton) store during the period. The
lease now has 24 years left to run and a twelve month rent free
period was secured as part of the negotiation.
Lease Assignment - Merton
As announced in our 2018 Results, we closed our Merton store in
July 2018 and consolidated the majority of customers into our new
Mitcham site. We have now assigned the leases on the Merton store
to a third party.
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 2018 is the quarter ended 31 January 2018.
3 - Occupancy excludes offices but includes bulk tenancy. As at
31 January 2019, closing occupancy includes 14,000 sq ft of bulk
tenancy (31 January 2018: 27,000 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 020 8732 1500
www.safestore.com
Instinctif Partners
Guy Scarborough
Catherine Wickman 020 7457 2020
Notes to editors:
-- Safestore is the UK's largest self-storage group with 146
stores, comprising 119 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 27 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 64,000 personal and business customers.
-- As at 31 January 2019, Safestore had a maximum lettable area
("MLA") of 6.37 million sq ft (excluding the expansion pipeline
stores) of which 4.60 million sq ft was occupied.
-- Safestore employs around 650 people in the UK and France.
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END
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