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Highlights

  • Safestore's group revenue rose 4.0% YoY at constant exchange rates, with like-for-like revenue up 2.8% YoY.
  • The Underlying profit before tax declined 11.0% YoY to GBP 43.6 million in H1 FY2025.
  • The company continued to expand with 10 new stores opened and joint venture acquisition in Italy.

Safestore Holdings plc (LSE:SAFE), a UK-based self-storage operator, reported a 4.0% YoY increase in group revenue at constant exchange rates for the first half of fiscal year 2025 (H1 FY2025), with like-for-like (LFL) revenue reaching GBP 111.5 million, up 2.8%YoY. The company saw varying performance across its markets, including a 1.6% LFL revenue increase in the UK, 0.8% in Paris, and 17.0% in expansion markets.

Group underlying EBITDA was reported at GBP 66.1 million, representing a 1.0% YoY decline at constant exchange rates. EBITDA from LFL stores increased by GBP 1.1 million to GBP 75.4 million, driven by revenue growth, though this was partially offset by increased costs related to staffing and UK business rates. Non-LFL store EBITDA declined by GBP 0.5 million to a loss of GBP 0.2 million, attributed to early-stage revenue and cost profiles of new store openings.

Administrative expenses rose by 25% YoY, due to increased head office staff incentives and the write-off of preliminary costs from discontinued development projects. Net interest expense grew by GBP 3.3 million YoY to GBP 13.0 million, mainly reflecting increased borrowings linked to the company’s growth strategy. However, active debt management led to a decrease in the closing cost of debt to 3.6% YoY.

The group reported an 11.0% YoY decline in underlying profit before tax to GBP 43.6 million. EPRA earnings per share also declined by 10.4% YoY to 19.0 pence. Safestore continues to maintain a low loan-to-value (LTV) ratio, which stood at 27.4% YoY at the end of H1 FY2025, compared to 25.7% YoY in the prior-year period. The interest cover ratio decreased to 3.9x from 5.0x.

Operating cash flow before capital expenditure was GBP 36.1 million, compared to GBP 41.0 million in H1 FY2024. The company invested GBP 58.0 million in new store developments and GBP 36.8 million in a joint venture (JV) to acquire EasyBox in Italy. EasyBox operates 11 stores with an additional site in development, totaling approximately 780,000 sq ft. Safestore will operate the portfolio under the JV with Nuveen, in line with its strategy to enter undersupplied markets through partnerships.

During the period, Safestore added 531,000 sq ft of maximum lettable area (MLA), bringing its total MLA to 9.1 million sq ft, a year-on-year increase of 11.1% YoY. Ten new stores and one extension were opened in H1 FY2025, with an additional four stores expected to open in H2, adding another 201,300 sq ft. The company reiterated that FY2025 expectations remain unchanged, with LFL operating costs projected to rise 7–8% YoY and interest charges expected to be GBP 5–6 million higher than in FY2024. Development projects are forecast to deliver GBP 35–40 million in incremental annual EBITDA upon stabilisation.