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Self Storage Companies

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AndyPandy
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Self Storage Companies

#7949

Postby AndyPandy » 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/
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 ;)

Asagi
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Re: Self Storage Companies

#7982

Postby Asagi » November 22nd, 2016, 11:22 pm

Dear AndyPandy,

I also own Big Yellow Group (BYG), for similar reasons and make similar conclusions to you.

It might be important to some readers to note that BYG is a REIT.

From today's RNS:

At 30 September 2016 the average length of stay for existing customers was 23 months. For all customers, including those who have moved out of the business, the average length of stay has remained at 8 months. In our portfolio, 30% of our customers by occupied space have been storing with us for over two years, and a further 18% of customers have been in the business for between one and two years.

http://www.investegate.co.uk/big-yellow ... 00097618P/

but there is not a lot of growth coming this financial year:

We will not be opening a store in the current year, but intend to commence construction on Guildford Central shortly, with a view to it opening in January 2018.

although there is the full year contribution from the 4 acquired sites to come through.

I like the sector. There are some established trends driving growth and inertia against dumping their service or switching. It deserves a premium P/E but already looks like 19 times. The yield is 4%.

Asagi (long BYG)

CommissarJones
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Re: Self Storage Companies

#8225

Postby CommissarJones » November 23rd, 2016, 4:04 pm

If BYG were to drop further, I would definitely consider adding it to my HYP. I remember looking at the stock some years back, maybe 2010 or so, and opting against investing then. Wish I had decided otherwise, in view of BYG's subsequent share-price and financial performance. It strikes me as being a very well-managed company with a good competitive position in its market.


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