TIDMSAFE
RNS Number : 3856P
Safestore Holdings plc
17 November 2016
Safestore Holdings plc
Fourth quarter trading update for the period 1 August 2016 to 31
October 2016
A robust trading performance concludes a strong year
Group Operating Performance- Q4 Q4 2015(2) Change Change-
like-for-like(3) 2016 CER(1)
------------------------------ ------ ----------- --------- --------
Revenue- (GBP'm) 30.3 27.4 10.6% 5.8%
------------------------------ ------ ----------- --------- --------
Revenue- full year (GBP'm) 112.5 102.3 10.0% 8.1%
------------------------------ ------ ----------- --------- --------
Closing Occupancy- (let
sq ft- million) (4) 3.61 3.56 1.4% n/a
------------------------------ ------ ----------- --------- --------
Closing Occupancy- (%
of MLA) 73.7% 72.7% +1.0ppts n/a
------------------------------ ------ ----------- --------- --------
Average occupancy- full
year (let sq ft- million) 3.54 3.42 3.5% n/a
------------------------------ ------ ----------- --------- --------
Average Storage Rate
(GBP) 27.31 25.11 8.8% 3.5%
------------------------------ ------ ----------- --------- --------
Average Storage Rate
(GBP)- full year 26.31 24.85 5.9% 3.9%
------------------------------ ------ ----------- --------- --------
Group Operating Performance- Q4 Q4 2015(2) Change Change-
total 2016 CER(1)
------------------------------ ------ ----------- --------- --------
Revenue (GBP'm) 32.8 27.7 18.4% 13.8%
------------------------------ ------ ----------- --------- --------
Revenue- full year (GBP'm) 115.4 104.8 10.1% 8.3%
------------------------------ ------ ----------- --------- --------
Closing Occupancy (let
sq ft- million) (4) 3.97 3.58 10.9% n/a
------------------------------ ------ ----------- --------- --------
Maximum Lettable Area
(MLA) (5) 5.59 4.93 13.4% n/a
------------------------------ ------ ----------- --------- --------
Closing Occupancy (%
of MLA) 71.0% 72.6% -1.6ppts n/a
------------------------------ ------ ----------- --------- --------
Average Storage Rate
(GBP) 26.78 25.14 6.5% 1.8%
------------------------------ ------ ----------- --------- --------
Average Storage Rate
(GBP)- full year 26.17 24.85 5.3% 3.3%
------------------------------ ------ ----------- --------- --------
Highlights
-- Group revenue for the year in CER(1) up 13.8%
-- Like-for-like(3) Group revenue for the year in CER(1) up 8.1%
with good performances across the business
o UK up 9.2%
o Paris up 5.0%
-- Balanced approach to revenue management
o Like-for-like average occupancy for the year up 3.5%
o Like-for-like closing occupancy(4) of 73.7% (up 1.0 ppts on Q4
2015)
o Like-for-like average storage rate up 3.9% in CER(1)
-- Cash Tax Adjusted Earnings per Share(6) for the year ended 31
October 2016 is expected to be at the top end of the consensus
range(7)
Frederic Vecchioli, Chief Executive Officer commented:
"The Group has had a strong financial year, consolidating the
improvements made to its operating performance over the last three
years. We have also strengthened our market leading positions in
the UK and Paris with the acquisition of Space Maker and the
opening of five new stores around the end of the financial year. As
a result, we expect that our full year Cash Tax Adjusted Earnings
per Share(6) will be at the top end of the consensus range(7) .
"As we enter the new financial year, we remain focused on the
significant opportunity represented by our 1.6m square feet of
currently unlet space. In addition, our balance sheet capacity and
flexibility allows us to continue to seek selected development and
acquisition opportunities."
Safestore will be issuing its Preliminary Results for the year
ended 31 October 2016 on Monday, 9 January 2017.
Business highlights
UK Trading Performance
UK Operating Performance- Q4 2016 Q4 2015(2) Change
like-for-like(3)
---------------------------- -------- ----------- ---------
Revenue (GBP'm) 22.2 20.9 6.2%
---------------------------- -------- ----------- ---------
Revenue- full year (GBP'm) 84.5 77.4 9.2%
---------------------------- -------- ----------- ---------
Closing Occupancy- (let
sq ft- million) (4) 2.79 2.73 2.2%
---------------------------- -------- ----------- ---------
Closing Occupancy- (%
of MLA) 71.8% 70.4% +1.4ppts
---------------------------- -------- ----------- ---------
Average occupancy- full
year (let sq ft- million) 2.73 2.63 3.8%
---------------------------- -------- ----------- ---------
Average Storage Rate
(GBP) 24.85 24.09 3.2%
---------------------------- -------- ----------- ---------
Average Storage Rate
(GBP)- full year 24.73 23.66 4.5%
---------------------------- -------- ----------- ---------
UK Operating Performance- Q4 2016 Q4 2015(2) Change
total
---------------------------- -------- ----------- ---------
Revenue (GBP'm) 24.7 21.2 16.5%
---------------------------- -------- ----------- ---------
Revenue- full year (GBP'm) 87.4 79.9 9.4%
---------------------------- -------- ----------- ---------
Closing Occupancy- (let
sq ft- million) (4) 3.15 2.76 14.1%
---------------------------- -------- ----------- ---------
Maximum Lettable Area
(MLA) (5) 4.52 3.92 15.3%
---------------------------- -------- ----------- ---------
Closing Occupancy (%
of MLA) 69.7% 70.2% -0.5ppts
---------------------------- -------- ----------- ---------
Average Storage Rate
(GBP) 24.47 24.13 1.4%
---------------------------- -------- ----------- ---------
Average Storage Rate
(GBP)- full year 24.60 23.70 3.8%
---------------------------- -------- ----------- ---------
The UK has delivered another strong year growing revenue by
9.4%. The acquisition of Space Maker on 29 July 2016 has
contributed to this growth but is offset by the closures of
Whitechapel and New Malden in the previous year so, on a
like-for-like basis, revenue grew by 9.2% in the year. Our first
quarter's ownership of the Space Maker portfolio has gone to plan
with the business fully integrated into the Group from an
operational perspective and the rebranding of the stores well
advanced.
Like-for-like new lets increased by 4.9% in the quarter, offset
by the usual seasonal increase in vacates, and 7.6% for the full
year reflecting good customer enquiry growth, helped by our new
website, and consistent conversion performance in our stores.
Total occupancy grew by 397,000 sq ft (2015: 76,000 sq ft) over
the year reflecting the acquisition of Space Maker and a net
like-for-like occupancy growth of 57,000 sq ft which comprised an
84,000 sq ft underlying increase in occupancy partially offset by a
planned 27,000 sq ft reduction in the lower yielding discounted
bulk occupancy. The addition of three new stores in the last two
months of the year (Wandsworth, Birmingham and Altrincham) diluted
total closing occupancy which ended the year at 69.7% (2015: 70.2%)
but like-for-like closing occupancy grew by 1.4ppts to 71.8% (2015:
70.4%). Like-for-like average occupancy for the year grew by
3.8%.
We take a balanced approach to revenue management and our
occupancy growth was accompanied by a 4.5% increase in the
like-for-like average storage rate for the year. Sequentially, our
Q4 like-for-like average rate was 2.2% higher than the rate
achieved in Q3 2016.
We opened three new stores towards the end of the financial year
in Wandsworth, Altrincham and Birmingham (and closed our existing
Birmingham Central store) and our Chiswick store opened on 4
November 2016. In addition, we completed the extension of our Acton
store. These developments were completed on time and on budget and
add c. 135,000 sq ft of net new space to our portfolio. Early
trading at these sites has been encouraging and in line with
management's expectations. The Group now operates 109 wholly owned
stores in the UK.
Paris Trading Performance
Paris Operating Performance- Q4 2016 Q4 2015(2) Change
like-for-like(3)
------------------------------ -------- ----------- ---------
Revenue (EUR'm) 9.3 8.9 4.5%
------------------------------ -------- ----------- ---------
Revenue- full year (EUR'm) 35.4 33.7 5.0%
------------------------------ -------- ----------- ---------
Closing Occupancy- (let
sq ft- million) (4) 0.82 0.83 -1.2%
------------------------------ -------- ----------- ---------
Closing Occupancy- (%
of MLA) 80.7% 81.8% -1.1ppts
------------------------------ -------- ----------- ---------
Average occupancy- full
year (let sq ft- million) 0.81 0.79 2.5%
------------------------------ -------- ----------- ---------
Average Storage Rate
(EUR) 41.11 39.19 4.9%
------------------------------ -------- ----------- ---------
Average Storage Rate
(EUR)- full year 39.85 38.94 2.3%
------------------------------ -------- ----------- ---------
Revenue (GBP'm) 8.1 6.5 24.6%
------------------------------ -------- ----------- ---------
Revenue- full year (GBP'm) 28.0 24.9 12.4%
------------------------------ -------- ----------- ---------
Paris Operating Performance- Q4 2016 Q4 2015(2) Change
total
------------------------------ -------- ----------- ---------
Revenue (EUR'm) 9.3 8.9 4.5%
------------------------------ -------- ----------- ---------
Revenue- full year (EUR'm) 35.4 33.7 5.0%
------------------------------ -------- ----------- ---------
Closing Occupancy (let
sq ft- million) (4) 0.82 0.83 -1.2%
------------------------------ -------- ----------- ---------
Maximum Lettable Area
(MLA) (5) 1.07 1.01 5.9%
------------------------------ -------- ----------- ---------
Closing Occupancy (%
of MLA) 76.3% 81.8% -5.5ppts
------------------------------ -------- ----------- ---------
Average Storage Rate
(EUR) 41.08 39.19 4.8%
------------------------------ -------- ----------- ---------
Average Storage Rate
(EUR)- full year 39.85 38.94 2.3%
------------------------------ -------- ----------- ---------
Revenue (GBP'm) 8.1 6.5 24.6%
------------------------------ -------- ----------- ---------
Revenue- full year (GBP'm) 28.0 24.9 12.4%
------------------------------ -------- ----------- ---------
Our Paris business had a solid quarter growing like-for-like
revenue by 4.5% and delivered 5.0% growth for the full year. The
impact of the significant weakening of Sterling in the period
resulted in the Sterling equivalent like-for-like revenue growing
by 24.6% in the quarter and 12.4% for the full year.
Pricing was robust and our like-for-like average rate was up
4.9% year-on-year in the quarter and, for the full year, grew by
2.3% compared to 2015. Like-for-like closing occupancy ended the
year at 80.7% (2015: 81.8%). Our average occupancy for the year was
up 2.5% on 2015.
Our new store at Emerainville in the east of Paris opened on
time and on budget at the end of the financial year adding 60,000
sq ft of MLA to our portfolio. Given that the store has only
recently started to trade, its opening has a dilutive effect on
total closing occupancy. The extension of our Longpont store, which
will add 22,600 sq ft of new space, is due to be completed in
December 2016.
We continue to pursue our proven strategy of growing the revenue
of our market leading Parisian portfolio by achieving an
appropriate balance of rate and occupancy growth.
Outlook
Safestore has strengthened its market positions in both the UK
and Paris with the acquisition of Space Maker, the addition of five
new stores and the imminent completion of our two store extensions.
Accordingly the Group has 1.6m square feet of unlet space available
representing significant operational upside in the existing
portfolio. We remain focused on further optimising the Group's
operational performance and our balance sheet strength and
flexibility provides us with the opportunity to actively consider
further selective development and acquisition opportunities in our
key markets.
Ends
1 - CER is Constant Exchange Rate
2 - Q4 2015 is the quarter ended 31 October 2015
3 - Like-for-like adjustments have been made to remove the
impact of the closure of Whitechapel and New Malden in 2015, and
the 2016 openings of Wandsworth, Altrincham, Birmingham (including
closure of our existing Birmingham store) and Emerainville. In
addition, the impact of the acquisition of Space Maker on 29 July
2016 has been adjusted.
4 - Occupancy excludes offices but includes bulk tenancy. As at
31 October 2016, closing occupancy includes 37,000 sq ft of bulk
tenancy (31 October 2015: 64,000 sq ft)
5 - MLA is Maximum Lettable Area. Group MLA has been adjusted to
5.59m sq ft (2015: 4.93m) following the acquisition of Space Maker
and the openings of Wandsworth, Altrincham, Birmingham and
Emerainville.
6 - Cash tax adjusted earnings per share is defined as profit or
loss for the year before exceptional items, corporate transaction
costs, change in fair value of derivatives, gain or loss on
investment properties and the associated tax impacts as well as
exceptional tax items and deferred tax charges, divided by the
weighted average number of shares in issue (excluding shares held
by the Safestore Employee Benefit Trust)
7 - As of today's date, based on the forecasts of 8 analysts,
the consensus range for cash tax adjusted earnings per share for
the year ended 31 October 2016 is 17.6p to 19.5p
This announcement contains inside information.
Enquiries
Safestore Holdings plc 020 8732 1500
Frederic Vecchioli, Chief Executive Officer
Andy Jones, Chief Financial Officer
www.safestore.com
Instinctif Partners
Mark Reed
Guy Scarborough 020 7457 2020
Notes to editors:
-- Safestore is the UK's largest self-storage group with 134 stores (including Chiswick which
opened on 4 November 2016), comprising 109 wholly owned stores in the UK (including 63 in
London and the South East with the remainder in key metropolitan areas such as Manchester,
Birmingham, Glasgow, Edinburgh, Liverpool and Bristol) and 25 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
in October 2015.
-- The Group provides storage to around 55,000 personal and business customers.
-- Safestore has a maximum lettable area ("MLA") of 5.64 million sq ft (including Chiswick which
opened on 4 November 2016). At 31 October 2016, 3.97 million sq ft was occupied.
-- Safestore employs around 600 people in the UK and France.
This information is provided by RNS
The company news service from the London Stock Exchange
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