Safestore reports revenue growth boosted by acquisitions; increases interim dividend to 5.9p

Self-storage group Safestore has reported group revenue rose 8.5% to £79.3m as its 'strong' financial performance in the first half of the financial year was driven by organic growth and two acquisitions that were completed at the start of the year.

In its interim results for the six months to 30 April 2020, it announced statutory pre-tax profit climbed to £99.7m from £38.2m in 2019, which the group said was driven by an increased gain on investment properties of £64m.

It announced reported group revenue increased 9% at CER, with like-for-like revenue growing by 5.9%, while group underlying EBITDA of £45.9m increased 11.4% at CER on the prior year and 10.9% on a reported basis, reflecting the impact of the 1.8% strengthening of the average Euro exchange rate.

During the period, the group's like-for-like average occupancy grew by 3.7%.

Safestore announced a 7.3% increase in the interim dividend to 5.9p.

It said that since the easing of lockdowns enquiries, new lets and occupancy were back above pre-lockdown levels and up year-on-year in Paris and Barcelona on a like-for-like basis, while enquiries in the UK were back to pre-lockdown levels and up year-on-year, with occupancy improving since the period end.

Chief executive Frederic Vecchioli said: 'We have made good strategic progress in the first half of the year, including acquiring two stores in London and four in Barcelona along with a development site in Bermondsey (London). In addition, we have opened new stores in Carshalton London and Gateshead.

'During the coming months we expect to open new stores in Sheffield and Magenta (Paris) as well as complete store extensions in Barking, Bedford and Chingford. Our joint venture with Carlyle is progressing well and added the Lokabox portfolio of six stores in Belgium to its portfolio in June 2020.'

At 8:03am: (LON:SAFE) Safestore Holdings PLC share price was +16.5p at 734.5p