Safestore Holdings PLC, a prominent self-storage operator with locations across Europe and the United Kingdom, has unveiled its interim financial results for the fourth quarter of fiscal year 2023, concluding on October 31. The report indicates a positive trajectory in revenue and average rental rates for the majority of its portfolio.
In the reported period, Safestore witnessed a 1.4% increase in total revenue, reaching £57.6 million. However, the group’s “like-for-like” growth experienced a minor decline of 0.4%, measured using a constant exchange rate (CER). Notably, the average rental rates across the company’s portfolio rose by 2% to £30.22, and for same-store facilities, the increase was even more significant at 2.8%, bringing the rate to £31.57.
Despite these financial upticks, occupancy rates presented a mixed picture. Overall occupancy for Safestore’s portfolio was reported at 77%, a decrease from the previous year’s 82.1%. Same-store occupancy also saw a drop, falling by 3.2% to 79.6% from 82.8% in the previous year. However, the company’s Paris locations stood out with the highest closing occupancy rate of 81.3% during this period.
In addition to its operational performance, Safestore has actively expanded its physical footprint. The quarter saw the opening of four new facilities and the completion of one expansion project, collectively adding 150,100 rentable square feet to its portfolio. Looking ahead, Safestore has ambitious plans with 30 development projects in the pipeline, expected to add approximately 1.5 million square feet.
CEO Frederic Vecchioli reflected on the industry’s trends, noting, “The COVID period has acted as an accelerator of growth for the self-storage industry. While demand stabilized below 2022 levels, inquiry levels remain higher than pre-COVID times.” He also emphasized the significant undersupply of high-quality self-storage capacity in the U.K. and Europe, viewing it as a structural growth driver for the industry.
Safestore currently operates 190 self-storage facilities across Belgium, France, the Netherlands, Spain, and the United Kingdom. Its extensive storage properties, totaling about 8.1 million square feet, serve approximately 90,000 customers, positioning the company as a key player in the European and UK self-storage market.
