Safestore Holdings Plc · LSE:SAFE
Safestore — FY2010 Earnings Presentation
32 slides from Safestore's earnings presentation, January 2011
Slide 1: Results for the year to 31 October 2010
Results for the year to 31 October 2010 January 2011
Slide 2: Introduction
Introduction Steve Williams, Chief Executive Officer
Slide 3: Progress in 2010
Progress in 2010 Strong operational performance in 2010 – Record level of enquiries and new lets – Occupancy, rental rate and revenue up across Greater London, all UK regions and Paris – Strong growth in national accounts – Call centre success Marketing initiatives continue to drive new business – R
Slide 4: Financial Review
Financial Review Richard Hodsden, Chief Financial Officer
Slide 5: Financial highlights
Financial highlights Revenue up 5.7% to £89.2 million – Closing occupancy increased by 6.1% – Average self storage rate per sq ft up 1.2% at £25.55 – Ancillary revenues up 6.1% at £12.2m EBITDA* up 6.1% to £49.2 million (FY 2009: £46.3 million) EBITDA* margin up to 55.1% (FY 2009: 54.9%) Adjusted EP
Slide 6: Summary IFRS income statement
Summary IFRS income statement Year Ended Year Ended Movement 31 October 2010 31 October 2009 £m £m % Revenue 89.2 84.4 +5.7% Increased revenue & Operating expenses (excluding exceptionals) (40.0) (38.7) -3.4% tight control of costs EBITDA before exceptional items and investment gain 49.2 46.3 +6.1%
Slide 7: Cash flow reconciliation
Cash flow reconciliation Year ended Year ended 31 October 2010 31 October 2009 £m £m Operating profit (before investment (loss)/gain) 48.4 47.2 Working capital and non-cash movements (2.2) (1.9) Operating cash flow 46.2 45.3 Non-discretionary cash flow Maintenance capex (including signage) (2.5) (2.
Slide 8: Portfolio summary under IFRS
Portfolio summary under IFRS October 2010 October 2009 Developing Established Mature Large Total Developing Established Mature Large Total Number of Stores 8 18 84 8 118 5 18 86 8 117 Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft ’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000 MLA (s
Slide 9: MLA Review
MLA Review Review: look at best use of vacant space & optimising revenue MLA reduced by 176,000 sq ft (3.9%) to 4,309,000 sq ft Of 100 stores, 85 stores required no/minor adjustment 15 stores accounting for the MLA adjustment – One store - 13,000 sq ft MLA increase due to occupation of space vacated
Slide 10: Expansion stores
Expansion stores Pipeline Tenure Full Pipeline Opened / Pipeline of 11 expansion stores totalling 526,000 Store/Site Planning MLA Estimated sq ft of MLA (396,000 net of store closures). Of Sq. Ft Opening these: Development Stores due to open 2010/11 – Nine are freehold Bolton * FH 19,700 Nov 10 – Tw
Slide 11: Store evolution case study – trend
Store evolution case study – trend GBP Sq Ft Revenue EBITDA Pentonville Road 60.00 100% £'000s £'000s 2,000 1,500 High visibility store 50.00 90% 1,500 1,000 Leasehold 40.00 80% 1,000 Low ceiling height 500 30.00 70% 500 No competition for site 20.00 60% 0 0 Oct 05 Oct 06 Oct 07 Oct 08 Oct 09 Oct 10
Slide 12: Property portfolio valuations
Property portfolio valuations Key Variables Oct-10 Apr-10 Oct-09 Average Self Storage Rate per Sq Ft £25.55 £25.51 £25.24 Exit Cap Rate 7.87% 7.90% 8.14% Weighted average stabilised occupancy 79.46% 77.40% 77.79% Stabilised Occupancy in Sq Ft 3.97m 3.92m 4.02m Average number of months to stabilised
Slide 13: Property portfolio valuation – Cushman & Wakefield
Property portfolio valuation – Cushman & Wakefield Maximum Lettable Valuation as at Movement since Location Tenure Stores Area* October 2010 October 2009 ‘000 sq ft £m £m UK Freehold 54 2,329 409 13 Long Leasehold 1 7 367 44 10 Short Leasehold 2 35 1,423 88 (3) France Freehold 9 368 88 19 Short Leas
Slide 14: Operational Review
Operational Review Steve Williams, Chief Executive Officer
Slide 15: Drivers for growth
Drivers for growth Quality portfolio and market leading position Relatively immature market Capacity to grow further – 2.94 million sq ft is currently occupied ; total of circa 5.2 million sq ft of storage space when fully fitted out – Average rate per sq ft up 1.2% year on year (up 1.9% before curr
Slide 16: Strategy for growth
Strategy for growth Improve rental rate and increase occupancy Sales excellence and National Accounts, exceptional customer strategic partnerships and service call centre Flexibility of combined freehold Operational Investment in brand and / leasehold portfolio Gearing marketing Diverse geographic a
Slide 17: Illustrative operational gearing
Illustrative operational gearing ● Currently 56.6% total occupancy against fully fitted out MLA (mature stores 67%) ● Significant scope for profit growth and value creation in portfolio through increasing overall occupancy and rates ● Incremental EBITDA based on year one EBITDA after occupancy has r
Slide 18: Total occupancy, average rate and revenue growth
Total occupancy, average rate and revenue growth Closing Occupancy Average rental Revenue 3 rate per sq ft 26.00 95.00 2.95 25.00 90.00 2.9 24.00 85.00 Million sq ft 2.85 GBP millions 23.00 80.00 GBP 2.8 22.00 75.00 2.75 21.00 70.00 2.7 20.00 65.00 2.65 19.00 60.00 FY FY FY FY FY FY FY FY FY FY FY F
Slide 19: Occupancy, rate, revenue performance change
Occupancy, rate, revenue performance change % Change Occupancy Rate Total Revenue All regions contributing 8% Paris performance 7% – Occupancy at 79% – Figures on constant 6% currency basis – Good performance despite 5% closure of oldest store 4% Good rental rates – London and Paris 3% Good rental r
Slide 20: National accounts
National accounts Occupancy & Contract Nos. Growth Service provided from 103 store locations 160 140 Currently 9% of business customers by occupancy 120 100 115,000 sq ft occupied 80 Customer contracts increased by circa 30% year-on-year 60 40 Occupancy increased by circa 50% year-on-year Oct-07 Oct
Slide 21: Focus on brand and marketing
Focus on brand and marketing Online remains a key focus to generate enquiries Brand & Marketing – Re-launch of Website – Search engine optimisation – Record level of enquiries Strong double digit enquiry growth Enquiries – Online enquiries now 60% – Signage remains second highest channel of enquires
Slide 22: Strategic alliances
Strategic alliances Strengthening existing strategic alliances Increase Improve search brand awareness Drive enquiries engine rankings Resulted in increased new lettings in 2010 22
Slide 23: Outlook
Outlook Good momentum into 2011 Further overall market growth – Immature market – Increased awareness Positioned to increase market share via – Increased marketing – Increased enquiry generation – Building brand awareness – Market leadership – Sales excellence – Value added services Selective new st
Slide 24: Appendix
Appendix self storage
Slide 25: Summary IFRS balance sheet
Summary IFRS balance sheet 31 October 31 October 2010 2009 £m £m Assets Non-current assets Investment properties 755.3 718.7 Development properties 18.4 12.6 Other non-current assets 10.5 13.2 Non-current assets 784.2 744.5 Current assets 32.1 40.3 Liabilities Current liabilities (49.2) (57.5) Non-c
Slide 26: Net debt and facilities
Net debt and facilities Year ended 31 Year ended 31 Net Debt Position October 2010 October 2009 £m £m Available facilities at the year end* 384.7 347.8 Total bank borrowings (gross of FRS 4 Adjustment) 316.0 300.9 Cash (15.5) (26.4) Net debt 300.5 274.5 * €40m facility translated at €1.1527:£1 (year
Slide 27: Property portfolio valuation - movement in the period
Property portfolio valuation - movement in the period Non-valuation Investment October 2010 October 2009 Movement movements Gain £m £m £m £m £m UK Like for Like Assets 1 530 522 8 2 6 French Like for Like Assets 2 144 126 18 (1) 19 Group Like for Like Assets 674 648 26 1 25 Development Properties 3
Slide 28: Customer Average Length of Stay in the UK
Customer Average Length of Stay in the UK Portfolio at Portfolio at Age of Store < 1year 1-2 Years 2-5 Years > 5 Years Oct 2010 Oct 2009 N0 of Stores 2 4 15 73 94 92 (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) Business Existing 4 1.0 30 6.9 57 13. 129 29.8 116 26.8
Slide 29: Customer Average Length of Stay in France
Customer Average Length of Stay in France Portfolio at Portfolio at Age of Store < 1year 1-2 Years 2-5 Years > 5 Years Oct 2010 Oct 2009 N0 of Stores 1 1 3 18 23 22 (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) Business Existing 6 1.4 29 6.6 59 13.7 131 30.1 120 27.8
Slide 30: Safestore background
Safestore background • Opened 9 stores; • Opened 4 stores • Disposed of 4 • Disposed of 4 • Acquired 2 UK stores • Opened 6 stores • Opened 3 stores non-trading stores • Opened 5 stores stores and 17 French stores • 12 store management • Disposed of 7 stores contracts with Space Maker awarded • Open
Slide 31: Store portfolio
Store portfolio Enfield 116 Current stores Borehamwood Stanmore Chingford Friern Barnet 2 Current Business Centres Wood Green Edgware Alexandra Palace Stoke Newington Romford 10 Expansion stores* Staples Corner Pentonville Road Ruislip Holloway Camden Ilford Paddington Barking 1 Expansion signed sin
Slide 32: Disclaimer
Disclaimer This document has been prepared by the Company solely for use at presentations held in connection with the announcement of its Preliminary Results for the year ended 31 October 2010. The information in this document has not been independently verified and no representation or warranty, ex