Safestore reports steady revenue growth amid occupancy challenges

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Safestore reports steady revenue growth amid occupancy challenges
Credit: © Reuters.

Self-storage company Safestore Holdings PLC has reported a modest increase in its third-quarter revenues, despite facing some headwinds in occupancy rates and revenue per available foot. The FTSE-250 listed firm saw its total revenues rise by 1.4% to £57.6 million. However, when adjusted for constant exchange rates, the quarter-on-quarter figures experienced a slight decline of 0.4%.

In a more positive light, the company's annual like-for-like revenues improved by 1.7%. This growth comes even as Safestore grapples with a decrease in closing occupancy, which fell by 1.4%, and a dip in revenue per available foot by 3.4%. Despite these challenges, the company reported a like-for-like closing occupancy rate of 79.6%.

Safestore has also been focusing on strategic growth, revealing a significant property pipeline which is anticipated to bolster future earnings in the range of £25 to £30 million (GBP1 = USD1.2628). This development is expected to enhance the company's financial performance in the coming periods.

The storage provider remains confident in its financial outlook, maintaining its forecast for adjusted diluted EPRA earnings per share for the year 2023. This steadfast approach suggests that Safestore is navigating the fluctuating market conditions with a degree of resilience, staying on course with its previously indicated financial targets for the year.

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