Self Storage Companies
Posted: November 22nd, 2016, 9:32 pm
I posted about Lok and Store's recent results on TMF a month or so back (catch it while you can http://boards.fool.co.uk/lok-and-store- ... 46113.aspx)
http://www.investegate.co.uk/lok-nstore-group--lok-/rns/preliminary-results-for-the-year-ended-31-july-16/201610170700066186M/
Since then, Safestore has published its results
http://www.investegate.co.uk/safestore-hldgs-plc--safe-/rns/q4-trading-update/201611170700083856P/
Today, the biggie, Big Yellow reported.
http ://www.investegate.co.uk/big-yellow-group-plc--byg-/rns/results-for-the-six-months-ended-30-september-2016/201611220700097618P/
Unlike (say) supermarkets, where fixed market share is being stolen, the self-storage is seeing a consistent rise in take-up across the brands, despite a steady increase in new stores. Asset backing is strong and I'm guessing that churn rate is low (people come and go, but who wants the hassle of moving everything down the road to save a few quid)?
I still maintain that the US storage companies could muscle in on our market as they are more saturated and the devalued pound makes things more affordable.
All personal opinion. I hold a large chunk (30%!) of my portfolio in LOK and a small amount of BYG (nearer 5%). I don't hold SAFE as I think they are the most overvalued of the three. LOK has a 8% share of this market and is adding 2-4 units a year, all of which seem to soak up occupancy, so I expect plenty of growth of a while. Disappointed with BYG's share reaction today as it's been falling for a while and the results were pretty decent. Que cera cera.
Thoughts welcome
PS it appears that I am only allowed 3 URLs, so a small space after the http on the third one did the trick
http://www.investegate.co.uk/lok-nstore-group--lok-/rns/preliminary-results-for-the-year-ended-31-july-16/201610170700066186M/
Robust growth in asset value and record financial results ahead of expectations
Adjusted Net Asset Value(1) per share up 27.6%
Group Revenue GBP16.06 million up 4.1%
- like for like (LFL) (2) up 7.6%
Group Adjusted EBITDA(3) GBP6.30million up 10.8%
- LFL up 14.0%
Since then, Safestore has published its results
http://www.investegate.co.uk/safestore-hldgs-plc--safe-/rns/q4-trading-update/201611170700083856P/
-- Group revenue for the year in CER(1) up 13.8%
-- Like-for-like(3) Group revenue for the year in CER(1) up 8.1% with good performances across the business
o UK up 9.2%
o Paris up 5.0%
-- Balanced approach to revenue management
o Like-for-like average occupancy for the year up 3.5%
o Like-for-like closing occupancy(4) of 73.7% (up 1.0 ppts on Q4 2015)
o Like-for-like average storage rate up 3.9% in CER(1)
Today, the biggie, Big Yellow reported.
http ://www.investegate.co.uk/big-yellow-group-plc--byg-/rns/results-for-the-six-months-ended-30-september-2016/201611220700097618P/
-- Good first half with growth in both occupancy and net rent per sq ft
-- Strong revenue performance driving EBITDA, earnings and dividend growth
-- Adjusted profit before tax up 13% to GBP27.0 million
Unlike (say) supermarkets, where fixed market share is being stolen, the self-storage is seeing a consistent rise in take-up across the brands, despite a steady increase in new stores. Asset backing is strong and I'm guessing that churn rate is low (people come and go, but who wants the hassle of moving everything down the road to save a few quid)?
I still maintain that the US storage companies could muscle in on our market as they are more saturated and the devalued pound makes things more affordable.
All personal opinion. I hold a large chunk (30%!) of my portfolio in LOK and a small amount of BYG (nearer 5%). I don't hold SAFE as I think they are the most overvalued of the three. LOK has a 8% share of this market and is adding 2-4 units a year, all of which seem to soak up occupancy, so I expect plenty of growth of a while. Disappointed with BYG's share reaction today as it's been falling for a while and the results were pretty decent. Que cera cera.
Thoughts welcome
PS it appears that I am only allowed 3 URLs, so a small space after the http on the third one did the trick