{"id":695,"date":"2021-11-26T10:28:17","date_gmt":"2021-11-26T10:28:17","guid":{"rendered":"https:\/\/listselfstorage.com\/uk\/industry-insights\/?p=695"},"modified":"2021-11-30T13:10:21","modified_gmt":"2021-11-30T13:10:21","slug":"stor-age-outshines-other-jse-property-competitors-continues-to-experience-strong-growth","status":"publish","type":"post","link":"https:\/\/listselfstorage.com\/uk\/industry-insights\/stor-age-outshines-other-jse-property-competitors-continues-to-experience-strong-growth\/","title":{"rendered":"Stor-Age Outshines Other JSE Property Competitors, Continues To Experience Strong Growth"},"content":{"rendered":"<p><!-- VideographyWP Plugin Message: Automatic video embedding prevented by plugin options. --><br \/>\n<span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">STOR-AGE, South Africa\u2019s largest self storage property fund, lifted its interim dividend 8.85 percent to 56.60 cents per share after it continued to outperform other listed property companies on the JSE in the six months to September 31, 2021.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">The results were driven by strong demand, growth in occupancy and rental rates, and disciplined cost control at a property level, said chief executive Gavin Lucas.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">He said even though the business model was tested over the past 18 months, <em>\u201cwe made progress in all areas of our strategy: organic growth, a strong acquisition pipeline, highquality developments and expansion projects, while also entering into our first environmentally friendly sustainability-linked loan facility, and continuing to embrace technology and innovation\u201d<\/em>.<\/span><\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Like-for-like rental income increased 11.6 percent in South Africa and 23.8 percent in the UK.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Property income on the same basis increased 16.8 percent in this country and 34.7 percent in the UK.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Total occupancy stood at 88.3 percent \u2013 86.8 percent in South Africa and 94.1 percent in the UK.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Loan to value was at 25 percent.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">UK debt had been restructured, including a new \u00a321 million (about R430m) seven-year sustainability-linked loan facility with Aviva Investors.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Three self-storage properties were acquired, Blackpool in the UK for \u00a33.6m and two properties in SA for R108m, aggregated.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Developments at Sunningdale and Tyger Valley completed in May 2021, and the first phase of Cresta in October 2021.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">There was a development pipeline of 10 properties in South Africa worth some R850m.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Lucas attributed the group\u2019s agility through the pandemic to its specialist sector skills and experience, and superior operating model, which enabled it to respond quickly and proactively, and start financial 2022 from a position of strength.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Combined with its high-quality property portfolio and digital capability, these competitive advantages enabled it to continue extracting occupancy and revenue growth in SA and the UK.<\/span><\/span><\/span><\/p>\n<p><em><span style=\"color: #000000;\">\u201c<\/span><\/em><em><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">The period was not without challenges, as the third Covid wave and lockdown restrictions in SA slowed the economic recovery from the shock of 2020, while the civil unrest in KwaZulu-Natal resulted in significant damage to the group\u2019s Waterfall property.<\/span><\/span><\/span><\/em><\/p>\n<p><em><span style=\"color: #000000;\">\u201c<\/span><\/em><em><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Despite this, net operating income from the company\u2019s properties, on a like-for-like basis, saw a significant increase across both markets, delivering growth of 16.8 percent and 34.7 percent year-on-year in South Africa and the UK, respectively.\u201d<\/span><\/span><\/span><\/em><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">This month the group concluded the acquisition of Silver Park Self Storage, located in Brackenfell in Cape Town\u2019s northern suburbs. The group also secured the Green Cube Self Storage in the city\u2019s southern suburbs, the acquisition of which is expected to be effective in December 2021.<\/span><\/span><\/span><\/p>\n<p><em><span style=\"color: #000000;\">\u201c<\/span><\/em><em><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">The Silver Park and Green Cube properties complement the existing portfolio and present an excellent opportunity for occupancy and rental rate growth,\u201d<\/span><\/span><\/span><\/em><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\"> said Lucas.<\/span><\/span><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Stor-Age also in September 2021 announced a joint venture (JV) with Nedbank Property Partners to develop two high-profile properties in Morningside and Bryanston.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">In the UK, the group continued expansion at its Chester, Doncaster and Bedford properties, where planning and construction was underway at the first two properties.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">The JV with Moorfield Group in the UK continued to gain momentum, having secured a first site for development in Hounslow, West London, at a projected \u00a313m development cost.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Stor-Age is forecasting an increase in distributions for the year ahead of between six percent and eight percent.<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: medium;\">Stor-Age\u2019s share price closed 6.02 percent higher at R14.79 on the JSE yesterday.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><strong><a href=\"https:\/\/www.iol.co.za\/business-report\/companies\/stor-age-outshines-other-jse-property-competitors-continues-to-experience-strong-growth-745f6ef7-be99-48d2-a206-6fa6ec16aa2b\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\">Source<\/span><\/span><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>STOR-AGE, South Africa\u2019s largest self storage property fund, lifted its interim dividend 8.85 percent to 56.60 cents per share after it continued to outperform other listed property companies on the JSE in the six months to September 31, 2021. The results were driven by strong demand, growth in occupancy and rental rates, and disciplined cost control at a property level, said chief executive Gavin Lucas. He said even though the business model was tested over the past 18 months, \u201cwe made progress in all areas of our strategy: organic growth,&hellip;<\/p>\n","protected":false},"author":13,"featured_media":696,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[20,4],"tags":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/posts\/695"}],"collection":[{"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/comments?post=695"}],"version-history":[{"count":3,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/posts\/695\/revisions"}],"predecessor-version":[{"id":767,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/posts\/695\/revisions\/767"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/media\/696"}],"wp:attachment":[{"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/media?parent=695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/categories?post=695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/listselfstorage.com\/uk\/industry-insights\/wp-json\/wp\/v2\/tags?post=695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}