Safestore Holdings PLC

Safestore Holdings PLC (LSE: SAFE) is a FTSE 250-listed self-storage player, operating over 205 stores across the UK, France, Spain, Belgium, the Netherlands, Germany, and Italy. With a strong presence in London (78 stores) and Paris (30 stores), it serves both personal and business customers in high-demand urban areas.

Key Recommendation Rationale – Sell at GBX 660.00

• Decline in Overall Revenue per Available Foot (REVPAF): The Group's total REVPAF, a key measure of asset efficiency, decreased by 0.6% year-on-year in Q3 on a constant exchange rate (CER) basis. For the year-to-date period, the decline was more pronounced at 1.8%. This indicates that the revenue generated from each square foot of available space has contracted, suggesting a less efficient monetization of the portfolio despite growth in absolute revenue and occupancy figures.
• Underperformance in the Paris Market: The Paris like-for-like operation showed a decline in several key metrics. REVPAF fell by 1.6% in Q3 and 1.7% year-to-date. The average storage rate also decreased by 0.4% in the quarter. This performance contrasts with growth in other regions and points to specific competitive or demand challenges within this core market, which may be experiencing pricing pressure.
• Lower Total Occupancy Rate Despite Growth in Space: While absolute occupancy increased, the overall Group closing occupancy rate as a percentage of Current Lettable Area (CLA) decreased by 110 basis points to 78.3% compared to the prior year. This suggests that the rate of new space being added through developments is currently outpacing the company's ability to fill it to previous capacity levels, potentially indicating a dilution of portfolio occupancy efficiency.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

One-Year Technical Price Chart (as of September 16, 2025). Source: REFINITIV, Analysis: Kalkine Group 

Conclusion

The data indicates a period where the company's revenue generation per unit of available space has seen a reduction. This is observed alongside an expansion of the total portfolio where the pace of new space additions has exceeded the rate at which it is being occupied, leading to a lower overall occupancy rate. The performance in one of the company's established markets shows a downward trend in both pricing and revenue efficiency metrics, which may reflect specific challenges in that operating environment. Together, these factors point to a scenario where top-line growth from new developments is occurring alongside a moderation in the intensity of asset utilization and market-level pricing power.

SAFE appears overvalued. For conducting the valuation, the following peers have been considered: Dar Global PLC (LSE: DAR), LondonMetric Property PLC (LSE: LMP), etc

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 660.00 as of 16 September 2025, 08:00 AM, GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’