Safestore Holdings plc Increasing momentum in final quarter completes another strong year

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Safestore Holdings plc (LON:SAFE) today announced fourth quarter trading update for the period 1 August 2018 to 31 October 2018

Group Operating Performance	Q4 2018	Q4 2017²	Change	Change- CER¹
Revenue (£’m)	38.3	34.4	11.3%	11.6%
Revenue (£’m)- full year	143.9	129.9	10.8%	10.4%
Closing Occupancy (let sq ft- million)⁴	4.69	4.14	13.3%	n/a
Closing Occupancy (% of MLA)⁵	73.6%	72.6%	1.0ppts	n/a
Average Storage Rate (£)	26.42	26.94	(1.9%)	(1.7%)
Average Storage Rate (£)- full year	25.90	26.67	(2.9%)	(3.3%)

Group Operating Performance- like-for-like³	Q4 2018	Q4 2017²	Change	Change- CER¹
Revenue (£’m)	35.7	33.8	5.6%	5.9%
Revenue (£’m)- full year	134.0	126.9	5.6%	5.2%
Closing Occupancy (let sq ft- million)⁴	4.25	4.09	3.9%	n/a
Closing Occupancy (% of MLA)⁵	76.6%	73.9%	+2.7ppts	n/a
Average occupancy- full year (let sq ft-million)	4.30	4.12	4.4%	n/a
Average Storage Rate (£)	27.22	26.81	1.5%	1.8%
Average Storage Rate (£)- full year	26.71	26.55	0.6%	0.2%

Highlights

· Group revenue for the year in CER1 up 10.4%

· Like-for-like3 Group revenue for the year in CER1 up 5.2%

o UK up 5.2%

o Paris up 5.1%

· Group like-for-like closing occupancy of 76.6% (up 2.7ppts on Q4 2017)

· Group like-for-like average occupancy for the year up 4.4%

· Group like-for-like average storage rate for the year up 0.2% in CER1

· Edinburgh Gyle store lease extended by 10 years

· Adjusted Diluted EPRA earnings per share6 anticipated to increase in line with consensus7

Frederic Vecchioli, Chief Executive Officer commented:

“I am pleased to report improving trading momentum has driven a strong fourth quarter, concluding another excellent year’s performance. The Alligator portfolio of twelve stores, acquired at the beginning of the financial year, is fully integrated and performing well. The year’s new store openings at London Mitcham, Paddington Marble Arch and Paris-Poissy are trading in line or ahead of our business plans.

Further to our successful openings this year, we plan to open new stores in London-Carshalton, Paris-Pontoise, Paris-Magenta and Birmingham-Merry Hill in the 2018/2019 financial year.

Our strong balance sheet continues to provide the flexibility to target selected development and acquisition opportunities as they arise.

The company is in an excellent position and, as ever, our top priority remains the significant organic growth opportunity represented by the 1.7m square feet of currently unlet space in our existing fully invested estate. Our leading market positions in the UK and Paris combined with our resilient business model enable us to withstand any macro-economic uncertainty that may arise over the coming months and we look forward to the future with confidence.”

Safestore will be issuing its Preliminary Results for the year ended 31 October 2018 on Tuesday, 8 January 2019.

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