“We have delivered resilient operating performance in challenging market conditions and have made good progress on our strategic priorities.
Over the year, the Group’s revenue stabilised with improving performance in the UK supported by solid results in Paris and strong growth in our Expansion Markets.
In the UK, we are encouraged by the continued improvements in domestic customer occupancy with increasingly positive levels of occupied space vs prior year through the second half of the year.
We have presented our other countries combined together as “Expansion Markets” to reflect their importance in driving growth for the Group. These markets have once again delivered strong performance in the year both in like-for-like growth and in total revenue terms through the additional revenue from new stores.”
In the financial year, we added 386,000 sq ft of MLA (equivalent to 5% of the start of year MLA) through ten new stores and extensions with a further five stores with 263,400 sq ft of MLA opened following year end. In addition our development pipeline includes 26 stores with a projected total MLA of 1,338,200 sq ft, reflecting 16% of year end MLA, providing a clear pathway for further future revenue growth.
“The borrowings for the expansion of our asset base has led to higher interest costs, with a £5.5 million increase year on year. Adjusted EPRA earnings of £92.7 million reflect an 11.8% decrease year on year.
We have further strengthened our balance sheet by extending our RCF by £100 million to £500 million as well as its term by one year to provide additional liquidity. Following year end, we successfully issued a new €70 million eight-year USPP.
Our business performance remains robust with strong levels of cash generation and our development programme is adding the potential for meaningful EBITDA growth, so we remain confident to recommend a full year dividend of 30.4 pence per share, representing a 1% increase on prior year.
Finally, I would like to thank all of our colleagues across our stores and head office whose commitment, hard work and customer-centric approach have been instrumental in driving our performance and sustained growth.”
Overview - Chairman's Statement
Our purpose remains simple – to add stakeholder value by developing profitable and sustainable spaces that allow individuals, businesses and local communities to thrive.
The last year has demonstrated Safestore’s continued resilience and significant strategic and operational progress. After five years in the role, I continue to be impressed by the dedication and resilience of the store, property development and Head Office teams which have been instrumental in delivering this progress.
Our purpose remains simple, to continue to add stakeholder value by developing profitable and sustainable spaces that allow individuals, businesses and local communities to thrive. Our strategy is underpinned by our values, our behaviours and our governance structure which shape our culture and remain central to the way we conduct our business.
I would like to take this opportunity to congratulate all my colleagues throughout the Group for their exceptional contributions this year.
Strategic Progress
Management’s first priority remains to maximise the economic return on our existing store portfolio and its 2.2 million sq ft of fully invested unlet space, building on the significant operational improvements made over the current management team’s tenure.
In addition, the Group has continued to make significant strategic progress in expanding its presence across Europe through a combination of new store openings and acquisitions. The Group has now acquired 48 and opened 39 stores over the last eight years creating value for all stakeholders of the Group.
This includes our investments in Expansion Markets (Spain, the Netherlands and Belgium) where we see a significant opportunity for growth both in terms of new stores and from like for like improvements. Expansion Markets totaled 32 stores with 1.29 million sq ft of MLA and contributed €20.6 million of revenue in the 2024 financial year.
Our joint venture with Carlyle in Germany provides us with an exciting platform to gain exposure to that market. In addition, following year end, we entered into a new joint venture with Nuveen acquiring together EasyBox in Italy, which provides the best possible entry point to a great new market with the lowest self-storage supply of major western European economies. I believe that Safestore’s highly scalable platform and international experience will allow us to capitalise on these opportunities.
We have further strengthened our balance sheet in the year with the exercise of an additional £100 million option on our revolving credit facility which takes total funds available under the committed RCF to £500m. In addition, the term of the RCF was extended by one year in FY 2024 to a new maturity of November 2028. Following the year end, a new USPP of €70.0m was issued in December 2024, with a maturity in December 2032 and a fixed rate of interest of 4.03%.
Financial results
Revenue for the year was £223.4 million, 0.3% behind last year (FY 2023: £224.2 million), or 0.2% ahead on a constant currency basis. Like-for-like revenue was flat year on year on a CER basis.
On a total basis, underlying EBITDA decreased by 4.8% to £135.4 million (FY 2023: £142.2 million) and on a constant currency basis by 4.2%.
Statutory operating profit increased by £195.4 million to £425.8 (FY 2023: £230.4 million), reflecting a higher investment property valuation gain in FY 2024.
Adjusted Diluted EPRA Earnings per Share reduced by 11.7% to 42.3 pence (FY 2023: 47.9 pence). Adjusted Diluted EPRA Earnings per Share has grown by 31.6 pence or 295% over the last eleven years. Statutory diluted Earnings per Share increased to 170.1 pence (FY 2023: 91.8 pence) as a result of the valuation gain on investment properties.
The Group’s balance sheet remains robust with a Group LTV ratio of 25.1% (FY 2023: 25.4%) and an ICR of 4.3x (FY 2023: 6.7x) leaving considerable headroom against our banking covenants and internal thresholds. This represents a level of gearing we consider appropriate for the business to enable the Group to increase returns on equity, maintain financial flexibility and achieve our medium term strategic objectives.
Finally, this year’s results consolidated a sustained period of excellent performance by the Group. Over the last eleven years, the management and store teams have delivered a Total Shareholder Return of 748.0%, ranking at number one in the UK property sector. Since flotation in 2007, Safestore has also delivered the highest Total Shareholder Return of any UK listed self-storage operator.
ESG (Environmental, Social and Governance)
Away from the financial results, I am pleased with the progress the Group has made with its ESG strategy.
Even though Safestore already has one of the lowest environmental impact profiles of any company within the overall property sector, we have continued to focus on our environmental agenda, with year on year reductions in greenhouse gas emissions and enhanced disclosures in recognition of the recommendations of the TCFD. I am pleased to report that we have been given our first ever Gold rating in the 2024 EPRA Sustainability BPR awards. The Global ESG Benchmark for Real Assets (“GRESB”) has once again awarded us an ‘A’ rating in its 2024 Public Disclosures assessment. MSCI has also awarded us our second-highest rating of ‘AA’ for ESG.
We continue to demonstrate our commitment to our ESG agenda by linking the margin on our £500 million bank facility to ESG related KPIs agreed with our lending group. Details of these achievements are covered more fully in the Chief Executive’s report and the sustainability section of our Annual Report.
Board changes
Following Ian Krieger stepping down from the Board in the year, Jane Bentall took over as Senior Independent Director and Chair of the Audit Committee in 2024. Jane has extensive experience and understanding of operating multi-site, consumer-led businesses and has been on the Board of Safestore since May 2022.
Simon Clinton replaced Andy Jones as CFO in April 2024, following Andy’s retirement. Simon was previously Chief Financial Officer of Logicor, one of Europe’s largest logistics real estate companies. He joined Logicor as Director of Group Finance in February 2017, before being promoted to Chief Financial Officer in May 2018. Prior to this, Simon held a number of senior finance roles at Tesco and Diageo. Simon is a qualified chartered accountant.
Dividend
Reflecting the Group’s progressive dividend policy, the Board is pleased to recommend a final dividend of 20.4pence per share (FY 2023: 20.2 pence) resulting in a full year dividend up 1% to 30.4pence per share (FY 2023: 30.1 pence).
Over the last eleven years, the Group has grown the dividend by 24.6 pence per share during which period the Group has returned to shareholders a total of 216.5 pence per share. The total dividend for the year is covered 1.39 times by Adjusted EPRA Diluted Earnings (1.59 times in 2023). Shareholders will be asked to approve the dividend at the Company’s Annual General Meeting on 19 March 2025 and, if approved, the final dividend will be payable on 15 April 2025 to Shareholders on the register at close of business on 13 March 2025.
Summary
The Board remains confident in the future growth prospects for the Group and will continue its progressive dividend policy in 2025 and beyond. In the medium term it is anticipated that the Group’s dividend will grow at least in line with Adjusted Diluted EPRA Earnings per Share.
David Hearn
Chairman
15 January 2025
