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Safestore Holdings plc (LON:SAFE) has announced its first quarter trading update for the period 1 November 2022 to 31 January 2023. Highlights<\/b><\/span><\/span><\/span><\/p>\n Group revenue for the quarter in CER1 up 8.4% and 9.4% at actual exchange rates<\/span><\/span><\/span><\/p>\n Like-for-like5 Group revenue for the quarter in CER1 up 3.4%<\/span><\/span><\/span><\/p>\n Like-for-like5 average rate for the quarter up 6.0% in CER1<\/span><\/span><\/span><\/p>\n Like-for-like5 occupancy at 79.1% (2022: 81.5%)<\/span><\/span><\/span><\/p>\n As previously reported, Revolving Credit Facilities (RCF\u2019s) refinanced with a new increased \u00a3400m unsecured multi-currency four-year facility (with two one-year extension options) in November 2022. Margins remain at 1.25% in line with previous RCF\u2019s and all facilities, including private placement notes, are now unsecured.<\/span><\/span><\/span><\/p>\n Frederic Vecchioli, Chief Executive Officer, commented:<\/span><\/span><\/span><\/strong><\/p>\n \u201cI am pleased to report that the solid early trading indicated in our January 2023 announcement has continued through to the end of our first quarter with the Group delivering like-for-like revenue growth of 4.2% and total revenue growth of 9.4% (3.4% and 8.4% respectively on a CER basis).<\/span><\/span><\/span><\/p>\n We have opened two new stores in the period in Spain, acquired an existing operation in the Netherlands and added two stores in the UK and Spain to our pipeline which, at 1.5m sq ft, now represents 19% of our existing portfolio\u2019s MLA. We anticipate the pipeline will continue to grow over the coming months. Our strong and flexible, recently refinanced balance sheet has significant funding capacity, allowing us to continue to consider and execute strategic, value-accretive investments as and when they arise.<\/span><\/span><\/span><\/p>\n Alongside our attractive development pipeline, we continue to prioritise the significant upside from filling our 1.8m square feet of fully invested, currently unlet space. The business has demonstrated its inherent resilience in recent times and we look to the future with confidence. The first quarter\u2019s trading performance has provided us with a solid base for the rest of the financial year and we anticipate that the business delivers Adjusted Diluted EPRA Earnings per Share7 for 2022\/23 in line with the consensus of analysts\u2019 forecasts8\u201c.<\/span><\/span><\/span><\/p>\n Business Highlights<\/span><\/span><\/span><\/strong><\/p>\n UK Trading Performance<\/strong> The UK performed solidly in the first quarter with total revenue up 4.3% and like-for-like revenue up 3.5%, driven by a continued strong average storage rate increase of 7.2%, offset by a reduction in average occupancy of 3.4%, where we have seen a return to a more normal cycle of trading in the current financial year. In the first quarter, as anticipated, we have seen an occupancy outflow as is typical for the period (which is our low season). The average storage rate grew sequentially by 2.9% compared to the fourth quarter of 2022.<\/span><\/span><\/span><\/p>\n As ever, the Group looks to find an appropriate balance of rate growth and occupancy performance in order to maximise revenue.<\/span><\/span><\/span><\/p>\n Enquiry levels for the first quarter, whilst slightly behind the same period in 2022, remained significantly ahead of the pre-pandemic period.<\/span><\/span><\/span><\/p>\n Paris Trading Performance Our Paris business had a solid quarter growing total revenue by 2.6% year-on-year.<\/span><\/span><\/span><\/p>\n Like-for-like occupancy performance was robust for the quarter with closing occupancy at 80.7%, up 1.5ppts compared to Q1 2022. As we return to a more normal cycle of trading in the current financial year, we have seen a modest occupancy outflow in the period as expected and which is typical for the first quarter (our low season).<\/span><\/span><\/span><\/p>\n The like-for-like average rate was up by 1.0%, and together with the increase in like-for-like occupancy, drove the like-for-like revenue growth of 2.6%.<\/span><\/span><\/span><\/p>\n The average storage rate grew sequentially by 0.8% compared to the fourth quarter of 2022.<\/span><\/span><\/span><\/p>\n Sterling equivalent like-for-like revenue was impacted by the 3.3% weakening in the Sterling: Euro exchange rate for the quarter compared to Q1 2022. As a result, sterling equivalent total and like-for-like revenue grew by 5.8% compared to Q1 2022.<\/span><\/span><\/span><\/p>\n Enquiry levels for the first quarter were slightly ahead of the same period in 2022 and significantly ahead of the pre-pandemic period.<\/span><\/span><\/span><\/p>\n Spain Trading Performance6 In the quarter, our Spanish business saw a strong 11.8% and 7.1% growth in total and like-for-like revenue respectively.<\/span><\/span><\/span><\/p>\n The like-for-like average storage rate grew by 8.5% to \u20ac36.30 compared to \u20ac33.47 for Q1 2022. This rate grew sequentially by 3.7% compared to the fourth quarter of 2022. This increase in the like-for-like average rate, offset by a reduction in like-for-like average occupancy of 4.3%, drove the like-for-like revenue growth of 7.1%.<\/span><\/span><\/span><\/p>\n The reduction in total occupancy to 46.4% reflects the dilutive effect of the three recent store openings.<\/span><\/span><\/span><\/p>\n Sterling equivalent like-for-like revenue was impacted by the 3.3% weakening in the Sterling: Euro exchange rate for the quarter compared to Q1 2022. As a result, sterling equivalent total and like-for-like revenue grew by 14.3% compared to Q1 2022.<\/span><\/span><\/span><\/p>\n Following the acquisition of four stores in Barcelona just over three years ago, the business has already opened three new sites and has added a pipeline of seven stores across Barcelona and Madrid and we look with confidence to the continued expansion of the portfolio.<\/span><\/span><\/span><\/p>\n Benelux Trading Performance<\/span><\/span><\/span><\/strong><\/p>\n Our Netherlands and Belgium businesses, acquired on 30 March 2022, contributed \u20ac2.7m revenue in the period.”<\/span><\/span><\/span><\/p><\/blockquote>\n The Benelux businesses grew revenue by 2.2% (excluding the newly acquired Apeldoorn site as set out below) compared to the fourth quarter of 2022 and the businesses ended the period with a combined closing occupancy of 74.2%.<\/span><\/span><\/span><\/p>\n The business was originally established in 2019 with the acquisition of six stores and was subsequently developed into a 16-store portfolio with a pipeline of five additional stores.<\/span><\/span><\/span><\/p>\n Refinancing The previous \u00a3250m sterling and \u20ac70m euro secured RCFs have been replaced with a single multi-currency unsecured \u00a3400m facility.”<\/span><\/span><\/span><\/p><\/blockquote>\n In November 2022, the Group completed the refinancing of its revolving credit facilities (RCFs) which were due to expire in June 2023.<\/span><\/span><\/span><\/p>\n The previous \u00a3250m sterling and \u20ac70m euro secured RCFs have been replaced with a single multi-currency unsecured \u00a3400m facility. In addition, a further \u00a3100m uncommitted accordion facility is incorporated into the facility agreement.<\/span><\/span><\/span><\/p>\n The facility is for a four-year term with two one-year extension options exercisable after the first and second years of the agreement.<\/span><\/span><\/span><\/p>\n Further detail is included in our Results Announcement of 17 January 2023.<\/span><\/span><\/span><\/p>\n Property Pipeline Developments<\/span><\/span><\/span><\/strong><\/p>\n Openings in the period<\/span><\/span><\/span><\/strong><\/p>\n Northern and Southern Madrid<\/span><\/span><\/span><\/strong><\/em><\/p>\n In March 2021 and April 2021, the Group exchanged contracts on two freehold buildings in Southern Madrid and Northern Madrid, respectively. Both existing buildings have been converted into 32,000 and 53,000 sq ft MLA self storage facilities and were opened in November 2022.<\/span><\/span><\/span><\/p>\n New Development Sites<\/span><\/span><\/span><\/strong><\/p>\n
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