Safestore Holdings PLC on Thursday said it expects to report full-year adjusted diluted EPRA earnings per share towards the lower end of analyst forecasts, amid ‘softness’ in the UK business customer segment and the expansion of its portfolio.

In the three months ended July 31, the self-storage company reported revenue of £56.5 million, up 3.3% from £54.7 million the year prior. Like-for-like revenue was up 1.3% to £52.7 million from £52.0 million.

Revenue in the year-to-date, meanwhile, was up 6.0% to £166.6 million from £155.7 million in the same period the previous year. Like-for-like revenue over the same period was 3.2% higher at £156.2 million, up from £151.4 million.

The average storage rate in the third quarter was £29.68, up 3.8% from £28.59. The rate in the year-to-date was higher at £30.27, up 4.0% from £29.11.

Revenue per available square foot in the year-to-date totalled £27.56, up 1.5% from £27.15 the year prior.

‘After very strong comparative quarters in the last two years (18.6% like-for-like revenue growth in 2021 and 9.5% in 2022), I am pleased to report that the group has delivered further like-for-like revenue growth as well as what we believe to be industry leading REVPAF in our key markets,’ said Chief Executive Frederic Vecchioli.

Vecchioli added that Safestore was seeing ‘some softness’ in UK business customer segment due to the weaker macroeconomic environment, but said trading with domestic customers and the remainder of the business has been ‘robust.’

‘We have opened a further two new stores in the period in Spain and added five new stores or extensions in the UK, Paris and Spain to our pipeline which represents 19% of our existing portfolio’s MLA. We anticipate that our pipeline will continue to grow over the coming months...Whilst the pipeline and associated financing will be dilutive to earnings in the near term, the returns generated by new stores are reliable and we are confident that it will be significantly value-accretive as the new sites mature,’ the CEO said.

Consequently, Safestore expects to deliver adjusted diluted EPRA earnings per share towards the lower end of analyst forecasts of 47.3 pence to 50.3p for financial 2023. In financial 2022, Safestore reported adjusted diluted EPRA EPS of 47.5p.

Shares in the firm fell 4.9% to 819.00p on Thursday morning in London.

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