Safestore Holdings plc
("Safestore", "the Company" or "the Group")
Interim results for the 6 months ended 30 April 2026
Strong operational performance and a return to earnings growth as investment in expansion begins to deliver
Frederic Vecchioli, Safestore's Chief Executive Officer, commented:
"Safestore delivered a positive performance in the first half of FY 2026, with like-for-like revenue growth across all our markets and a return to growth in underlying earnings. The interim dividend, an important part of the total return for our shareholders, is up 1% in line with our progressive dividend policy whilst rebuilding cover as our earnings grow.
Our new and recently opened stores are performing well and, together with the development pipeline of a further 17 stores, are expected to contribute an additional £30-35 million of EBITDA to the Group upon stabilisation over the coming years.
We continued to drive REVPAF and optimise trading across the like-for-like estate, which remains a key engine of profit growth for the Group, while the significant investment we have made in our expansion is now clearly translating into both revenue and earnings growth. As a result Safestore remains well positioned to deliver further growth in earnings and long-term value creation."
Highlights
Financial and operational progress
- Group revenue at constant exchange rates (CER) up 5.6% to £120.6 million, with 3.5% LFL growth; positive LFL growth across all geographies and increasing contribution from non-LFL stores:
- UK revenue +3.3% improved through the half year reaching £83.9 million, with increasing domestic occupancy, unit partitioning and higher average storage rates1 driving LFL growth of 2.4%;
- Paris revenue of €26.7 million, +4.6% includes LFL growth of 1.8% driven by an increase in rental rates with decreased LFL occupancy impacted by strong contribution from new stores.
- Expansion Markets2 total revenue of €15.4 million, +25.7%; strong growth in LFL (+16.8%) and non-LFL stores; Spain, Netherlands and Belgium all performed well;
- Underlying store EBITDAR increased by 5.6% to £78.9 million; inflationary cost pressures were partially offset by internal efficiencies, resulting in LFL cost of sales increase of 3.8% at CER, in line with expectations.
- Underlying EBITDAR was £67.9 million, up 3.7%, reflecting higher administrative costs in the half.
- Operating profit down 52.8% to £53.3 million as a result of stable Investment Property values in H1 2026 versus a fair value gain in H1 2025 (gain of £49.5 million).
- Underlying net finance costs3 increased by £1.0 million to £14.0 million including the impact of increased borrowings to support the store expansion programme. Refinancing of October 2026- maturing USPPs secured.
- Underlying profit before tax of £44.6 million increased by 2.3% delivering Adjusted Diluted EPRA EPS of 19.4p, up 2.1% on prior year and representing a return to earnings growth.
- Statutory profit before tax of £36.3 million and Basic EPS of 15.3 pence declined 62.6% and 57.9% respectively reflecting the stable property values in the half versus a gain in the prior year.
- Interim dividend per share of 10.20p, up 1.0%, in line with progressive dividend policy reflecting earnings growth whilst rebuilding of dividend cover.
- Balance sheet remained strong with £2.3 billion of net assets. LTV ratio of 29.1% and interest cover ratio (“ICR”)4 of 3.9x; capital structure underpinned by investment property valuation of £3.5 billion.
- Basic EPRA NTA per share of 1,120p, down 0.8% from FY 2025 due to currency exchange rates.
Strategy on track, with pipeline delivery being executed as planned
- Continued focus on REVPAF to optimise trading in our existing store portfolio where we see significant potential to drive further EBITDA growth from both LFL and non-LFL stores.
- Projected incremental EBITDA from development programme unchanged with openings in FY 2024 moving from non-LFL to stabilising LFL with their growth potential remaining. Non-LFL (stores opening from FY 2025) and pipeline projected to add £30-35 million EBITDA on stabilisation.
- Recently opened (non-LFL) stores on track to meet 10% yield-on-cost5 hurdle, with stabilised stores opened in 2016-2021 achieving between 10%-20%.
- £33.6 million investment in store development with MLA growing by 2% or 0.2 million sq ft to 9.5 million sq ft in the half year, with the addition of 4 new stores representing a planned reduction in pace of openings from the peak in FY 2025.
Outlook and Guidance
- FY 2026 outlook: Return to earnings growth with projected EPS at the lower end of consensus6 range largely reflecting the expected impact of higher interest rates in H2.
- Underlying LFL cost of sales growth now expected to be at lower end of 3%-6% range;
- Underlying net finance costs now projected to increase by £2-£3 million as a result of higher floating interest rates;
- Capital expenditure for full year on new stores of £86 million;
- 225k sq ft of additional MLA expected in H2 2026 with a further 733k sq ft MLA in FY 2027 and beyond.
- On track to deliver £30-£35 million of incremental EBITDA from non-LFL stores and pipeline on stabilisation, in line with expectations.
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For further information, please contact:
Safestore Holdings PLC
Frederic Vecchioli, Chief Executive Officer via FTI Consulting
Simon Cliinton, Chief Financial Officer
www.safestore.com
FTI Consulting
Dido Laurimore
Richard Gotla
Oliver Parsons
020 3727 1000 or email [email protected]
