Safestore Holdings (LSE:SAFE) said it expects a return to earnings growth in FY 2026 but cautioned that higher interest rates will leave projected EPS at the lower end of consensus, reporting results for the half year ended 30 April versus the prior year.
Group revenue at constant exchange rates rose 5.6% to £120.6 million with like‑for‑like revenue up 3.5%, underlying profit before tax increased 2.3% to £44.6 million and adjusted diluted EPRA EPS was 19.4p, up 2.1% year on year.
"Our new and recently opened stores are performing well and, together with the development pipeline of a further 17 stores, are expected to contribute an additional £30-35 million of EBITDA to the Group upon stabilisation over the coming years," said Frederic Vecchioli, Chief Executive Officer.
UK revenue was £83.9 million (+3.3%), Paris revenue was €26.7 million (+4.6%) and Expansion Markets were €15.4 million (+25.7%), underlying store EBITDAR rose 5.6% to £78.9 million while group underlying EBITDAR was £67.9 million up 3.7%.
But its operating profit fell 52.8% to £53.3 million with statutory profit before tax of £36.3 million down 62.6% reflecting a FY2025 valuation gain.
The balance sheet showed net assets of £2.3 billion, an investment property valuation of £3.5 billion, a loan-to-value ratio of 29.1% and interest cover of 3.9x.
The group invested £33.6 million in development in the first half, growing maximum lettable area to approximately 9.5 million square feet, and plans £86 million of new-store capital expenditure for the full year.
A further 225,000 square feet of additional lettable area is expected in the second half, with 733,000 square feet more to follow in the financial year 2027 and beyond.
The group reiterated its target of £30 million to £35 million of incremental EBITDA from non-like-for-like stores and the pipeline on stabilisation.
