Safestore underlying earnings buoyed by higher occupancy rates
StockMarketWire.com - Self-storage company Safestore Holdings reported a 53% fall in first-half profit, as a reduced gain on the value of its investment properties offset a rise in underlying earnings.
Pre-tax profit for the six months through April fell to £38.2m, down from £81.9m on-year.
Revenue rose 5.6% to £73.1m and underlying Ebitda rose 5.9% to £41.4m.
Occupancy rates rose 1.5 percentage points to 73.0%.
Safestore declared an interim dividend of 5.5p per share, up 7.8% on-year.
'Safestore's performance has been robust in the first half of the year and continues to build on the strong earnings and dividend growth achieved over the last five years,' chief executive Frederic Vecchioli said.
'The self-storage market remains resilient to macroeconomic uncertainty and we continue to capture growing levels of demand in the UK and in Paris, with double digit new let growth on a like-for-like basis on both markets.'
'Our scale continues to allow us to invest in our digital marketing platforms and service proposition, and this remains a key competitive advantage in a fragmented industry.'
'Our balance sheet remains strong and efficient, with a low cost of debt. Our existing financing capacity, combined with the strong free cash generation of the business, allows us to continue to target selected development and acquisition opportunities.'
'With our leading market positions across the UK and in Paris, the company is in a strong position with significant low-cost growth potential.'
'We remain on-course to meet the board's full year expectations.'
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