Safestore reported first-half revenue of £120.60 million, a 6.9% increase from the prior year, as its UK self-storage operation continued to expand its footprint and extract higher yields from its existing portfolio. Management attributed the top-line improvement to new store openings and like-for-like revenue growth across the estate.
Adjusted diluted EPRA earnings per share climbed 2.1% over the period, while adjusted EBITDA was reported at £67.90 million for the half-year. Despite those measures of operating performance moving in positive directions, reported operating profit fell sharply.
Operating profit declined 52.8% to £53.30 million, a swing the company linked to a contrast in property value movements relative to the prior-year period, when gains had supported profitability. Pretax profit for the half stood at £36.30 million.
Revenue expansion reflected two principal drivers: an ongoing programme of store openings and operational changes within existing sites. In the UK, management has been converting larger storage spaces into smaller units that command higher rates, which helped push up average realised prices. Domestic demand from UK customers remained strong, supporting like-for-like revenue gains during the half.
Looking ahead, Safestore said it expects full-year 2026 earnings per share to land at the lower end of consensus, owing to the impact of higher interest rates. The operator anticipates that underlying net finance costs will rise by £2 million to £3 million in fiscal 2026, a factor it says will weigh on overall earnings.
Capital deployment is set to continue: the company has planned capital expenditure of £86 million on new stores for the current fiscal year, underscoring its focus on growth through expansion.
Summary
Safestore delivered modest revenue growth of 6.9% in H1 to £120.60 million, helped by new store openings and reconfiguration of unit sizes to increase average rates. Adjusted diluted EPRA EPS rose 2.1% and adjusted EBITDA was £67.90 million, but operating profit dropped 52.8% to £53.30 million and pretax profit was £36.30 million. The company expects full-year 2026 EPS to be at the lower end of consensus due to higher interest rates and forecasts a £2 million to £3 million uplift in net finance costs for fiscal 2026. Planned capex for new stores this year is £86 million.
Key points
- H1 revenue of £120.60 million, up 6.9% year-on-year, driven by store openings and like-for-like growth.
- Adjusted diluted EPRA EPS increased 2.1%, with adjusted EBITDA at £67.90 million; operating profit fell 52.8% to £53.30 million and pretax profit was £36.30 million.
- Safestore plans £86 million of capital expenditure on new stores and expects higher net finance costs in fiscal 2026, reducing EPS to the lower end of consensus.
Risks and uncertainties
- Higher interest rates - the company expects underlying net finance costs to increase by £2 million to £3 million in fiscal 2026, which it says will depress full-year EPS.
- Profitability volatility - operating profit declined sharply year-on-year due in part to property valuation differences compared with the prior period.