Safestore Holdings Plc · LSE:SAFE
Safestore — FY2024 Earnings Presentation
50 slides from Safestore's earnings presentation, Jan 16, 2025
Slide 1: Full Year Results
Full Year Results 16 January 2025
Slide 2: Strong Record of Value Creation
Strong Record of Value Creation Group Revenue (£m) Group Underlying EBITDA (£m) 250.0 +132% 160.0 +165% +8.0% CAGR 140.0 +9.3% CAGR 200.0 120.0 150.0 100.0 80.0 212.5 224.2 223.4 135.1 142.2 135.4 100.0 186.8 60.0 118.0 151.8 162.3 93.9 129.9 143.9 82.9 87.5 115.4 40.0 74.4 50.0 96.1 97.9 104.8 58.6
Slide 3: Highlights
Highlights Resilient trading • Group Revenue down 0.3%, up in CER +0.2%. Revenue up 1.1% in CER net of IPT • Adjusted Diluted EPRA EPS, down 11.7% at 42.3p; 48.4% increase since FY 2019 and 295% increase since 2013 • Full-year dividend of 30.4 pence per share, up 1% on FY 2023 • FY 2025 early tradin
Slide 4: Revenue strategy delivers industry leading REVPAF and Customer value
Revenue strategy delivers industry leading REVPAF and Customer value Total Group Performance Total Group LFL Performance (CER) Closing Closing Occupancy Revenue Occupancy Sq Ft Rate variance Revenue variance Sq Ft variance Rate variance variance REVPAF REVPAF Year variance (YoY) (YoY) (YoY) (YoY) (Y
Slide 5: Trading highlights
Trading highlights • UK Domestic share expected to increase further as market expands UK Achieved Rate vs Inflation − Domestic occupancy up 6.1% at year-end and up 6.4% on Jan first 2025 Indexed to 100 = 2019 − UK Occupancy CAGR over 10 years of 5.7% for Domestic versus 1.3% for 130 business − Self-
Slide 6: European digital platform
European digital platform Dynamic Domestic demand across all geographies – UK softness with Business enquiries • Enquiries YoY: UK –4.1%, FR +5.1%, Expansion markets +33.8% • Early trading Enquiries: UK +1.4%, FR +7.6%, Expansion markets +30.6% • London versus non-London split of enquiries and move-
Slide 7: Pan-European Portfolio Expansion
Pan-European Portfolio Expansion Store openings, acquisitions and extensions added c. 0.7m Sq Ft MLA in 20241: • 5 in London (1 acquisition), 3 in Randstad Netherlands, 3 in Madrid, • 3 in Paris (two extensions) and 2 in Regional cities (UK & Spain) Development pipeline of 1.3m Sq Ft of future MLA a
Slide 8: Europe Development Opportunity
Europe Development Opportunity GROUP ASSET VALUE UK Paris Expansion Self Storage Supply (Sq Ft per head, population >10m people) 9% 9.39 21% Self Storage Supply 70% 2.29 0.91 0.73 0.53 0.41 0.43 0.27 0.23 0.13 0.06 0.03 Netherlands Spain United States Australia France Sweden Belgium Germany Poland U
Slide 9: EasyBox acquisition
EasyBox acquisition • 12 premium stores located in Milan, Turin, Florence, Genoa and Rome • Leading platform in emerging Italian storage market with strong trading track record to be managed by Safestore • Self-Storage supply of 0.03 sqft/inhabitant equivalent to 3% of UK supply density • Safestore
Slide 10: Store Pipeline
Store Pipeline Total Pipeline MLA (let Sq Ft- million) Total Outstanding CAPEX (£’m) c. 1,602 c. £150m Opened post year end FH/LH MLA Type Opening in 2026 FH/LH MLA Type Status London - Lea Bridge FH 80.9 New Build London - Woodford FH 68.7 New Build C, PG Madrid - North East (Barajas) FH 57.2 Conve
Slide 11: Group Trading and MLA Extension
Group Trading and MLA Extension Closing Occupancy and Maximum Lettable Area Unlet space at 90% occupancy 12.00 24% 22% 10.00 20% 1.34 10% 1.45 0.26 9% 8% 1.40 Total MLA (m Sq Ft) 8.00 7% 6% 7% 0.09 2.18 2.76 2% 1.38 1.86 0% (1%) 1.41 1.08 6.00 82.1% 77.0% 74.6% 1.68 1.49 84.5% 1.16 79.4% 1.62 77.0%
Slide 12: Portfolio Development
Portfolio Development Group UK Paris Expansion Current Maximum lettable area (MLA) (m Sq Ft) 8.59 5.88 1.42 1.29 Let Square Feet (m Sq Ft) 6.41 4.54 1.09 0.78 Current Available space (m Sq Ft) 2.18 1.34 0.33 0.51 Future Post-Period Openings MLA (m Sq Ft) 0.26 0.08 0.02 0.17 Future Pipeline / Extensi
Slide 13: Cash-on-Cash Ramp-Up
Cash-on-Cash Ramp-Up FY2024 Cash-on-Cash Yield of Total Portfolio Split by Financial Year Opening Date Cash-on-Cash Ramp-Up Financial Year of Opening including Acquisitions 10% Remove the yr – and add something like ‘Investment vintage year ’ • Historically maturity on average 4-5 years after new o
Slide 14: Flexible Investment Model
Flexible Investment Model 85% of group asset value is Freehold Average Unexpired Lease Term (Years) 16.0 UK Lease stability 14.0 • Average Unexpired Lease Term of 13.2 years • UK leases 8.7% of Group assets value 12.0 • All leases in England within renewal protection rights of the Landlord and Tenan
Slide 15: Safe, Sustainable Storage
Safe, Sustainable Storage 10% reduction in absolute market-based emissions despite growth in portfolio; 15% reduction in emissions intensity Location-Based Market-Based Group Floor Area (Sq M million) ESG 9,000 1.20 • Continued progress on track toward net zero operational commitment 7,911 7,864 − R
Slide 16: Well Positioned for Further Growth
Well Positioned for Further Growth Attractive market • Immature and growing industry with low level of supply • Very constrained supply growth Unique portfolio • Leading presence in London, Paris and key markets • 97% of the portfolio (including pipeline) in capital and major metropolitan areas with
Slide 17: Financials
Financials
Slide 18: Financial Highlights
Financial Highlights Income Statement and Cash Flow Change FY 2023 FY 2024 Absolute CER 1 Revenue (£’m) like-for-like 217.9 (0.5%) (0.0%) Underlying EBITDA (£’m) like-for-like 134.7 (5.4%) (4.9%) Revenue (£’m) 223.4 (0.3%) 0.2% Underlying EBITDA (£’m) 135.4 (4.8%) (4.2%) Adjusted Diluted EPRA EPS (p
Slide 19: Underlying Income Statement
Underlying Income Statement FY 2024 FY 2023 Variance £m £m % Revenue 223.4 224.2 (0.3%) Underlying costs (88.0) (82.0) 7.4% Underlying EBITDA 135.4 142.2 (4.8%) Leasehold costs (15.5) (14.9) 4.0% Underlying EBITDA after leasehold costs 119.9 127.3 (5.8%) Depreciation (1.5) (1.3) 15.4% Finance charge
Slide 20: UK Revenue
UK Revenue FY 2023 to FY 2024 (£m) 168 (1.2%) 0.1% (1.3%) 166 1.9 164 0.1 2.2 162 160 158 166.2 156 162.2 154 152 150 FY 2023 Revenue Like-for-like New Stores and IPT on insurance* FY 2024 Revenue Developments * In 2023 revenue from Customer Goods Protection attracted IPT, in 2024 different contract
Slide 21: European Market Revenue Growth
European Market Revenue Growth Revenue increased across our growing EU markets with 4% LFL growth plus new developments France (€m) Expansion Markets (€m) 60 25.0 LFL +1.4% 0.1 50 20.0 LFL +12.9% 4.0 40 15.0 1.3 30 50.5 51.2 10.0 20 16.6 14.7 5.0 10 0 0.0 FY 2023 FY 2024 FY 2023 FY 2024 LFL Non-LFL
Slide 22: Steady LFL Revenue Performance
Steady LFL Revenue Performance Expansion London / SE Rest of UK UK Total Paris Group Markets m Sq Ft 2.26 2.11 4.37 1.10 0.58 6.05 Occupancy YOY (1.8%) (1.8%) (1.8%) 0.1% 2.3% (1.1%) £ / Sq Ft 36.58 23.15 30.1 36.84 21.53 30.51 Average Rate YOY (1.0%) 0.2% (0.6%) 0.7% 7.7% 0.2% £'m 82.7 48.8 131.5 4
Slide 23: Movement in Cost Base
Movement in Cost Base FY 2024 FY 2023 Variance Variance (£’m) (£’m) (£’m) (%) Cost of Sales Volume related including bad debt (5.6) (3.6) (2.0) 55.6% Store employee and related (22.5) (21.8) (0.7) 3.2% Marketing (8.8) (8.3) (0.5) 6.0% Business rates (16.2) (14.6) (1.6) 11.0% Facilities and premises
Slide 24: Continued Strong Cash Generation
Continued Strong Cash Generation FY 2024 FY 2023 (£’m) (£’m) Underlying EBITDA after leasehold cost payments 119.9 127.3 Working Capital/ Exceptionals/ Other (2.3) (13.0) 1 Adjusted operating cash inflow after leasehold payments 117.6 114.3 Interest payments (25.3) (19.6) Tax payments (6.1) (5.5) Fr
Slide 25: Strong Capital Structure
Strong Capital Structure Oct 24 Oct 23 Variance Property valuation1 (£’m) 3.052.9 2,681.1 13.9% UK (£’m) 2,144.3 1,872.4 14.5% Paris (€’m) 747.0 657.9 13.5% Expansion Markets (€’m) 334.9 269.5 24.3% Net Debt (£’m) 899.5 810.3 11.0% LTV 25.1% 25.4% (30 bps) Debt capacity (£’m) 144.3 197.0 (52.7) Weig
Slide 26: Indicative Non-LFL and Current Pipeline Impact
Indicative Non-LFL and Current Pipeline Impact £’m EPS (p) 60 20 50 17.3p EPS (+36% v FY23) 15 40 8.1p EPS (+17% v 30 10 FY23) 16.1 17.3 20 12.9 14.7 10.8 5 10 8.1 5.3 0 1.8 0 (2.2) (3.1) (10) (1.4) (5) (20) (30) (10) FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 EPS (RHS) EBITDA (LHS) Inte
Slide 27: FY 2025 Guidance
FY 2025 Guidance Item Guidance Operating Costs Like-for-like operating costs projected to increase 7%-8% year on year, predominantly as a result of inflationary pressures on Store Staff Costs, Business Rates and Energy costs Finance Costs Development pipeline plus Italy investment projected to add £
Slide 28: Summary
Summary Robust Operating Performance − Steady like-for-like revenue, flat year on year − Improving results in UK: like-for-like down 1.2%, (FY 2025 YTD up 0.9%) − Stable performance in Paris: like-for-like up 1.4% − Strong growth from Expansion Markets: 29.0% increase overall − Continued inflation-l
Slide 29: Appendices
appendices
Slide 30: Detailed Income Statement
Detailed Income Statement FY 2024 FY 2023 (£’m) (£’m) Revenue 223.4 224.2 Cost of sales (73.7) (69.9) Gross profit 149.7 154.3 Administrative expenses (16.1) (17.7) Underlying EBITDA 135.4 142.2 Depreciation and variable lease payments (1.5) (2.1) Share based payments (0.3) (3.5) Share of associate'
Slide 31: Group Income Statement
Group Income Statement FY 2024 FY 2023 Expansion Total Expansion Total UK Paris UK Paris Markets Markets (CER) (CER) (£’m) (€’m) (€’m) (£’m) (£’m) (€’m) (€’m) (£’m) Revenue 162.2 51.3 20.6 224.7 166.2 50.5 16.0 224.2 Cost of sales** (52.6) (13.7) (9.1) (72.2) (51.1) (12.1) (7.0) (67.8) Store EBITDA
Slide 32: Non-Underlying Items
Non-Underlying Items FY 2024 FY 2023 (£’m) (£’m) Underlying EBITDA 135.4 142.2 Gain on investment properties and investment properties under construction 292.2 93.8 Depreciation (1.5) (1.3) Variable lease payments - (0.8) Share-based payments (0.3) (3.5) Statutory Operating Profit 425.8 230.4 32
Slide 33: Balance Sheet
Balance Sheet FY 2024 FY 2023 (£’m) (£’m) Assets Non-current assets Investment properties 3,052.8 2,681.1 Investment properties under construction 130.7 108.6 Other non-current assets 119.2 117.1 Non-current assets 3,302.7 2,906.8 Current assets 58.5 50.1 Liabilities Non-current liabilities Bank bor
Slide 34: Property Valuation Movement
Property Valuation Movement (including investment properties under construction) Property Valuation (£m) Key Assumptions Oct 2024 Oct 2023 Average Self Storage rate per Sq Ft £29.85 £30.26 Exit Cap rate (Freehold only) 5.2% 5.7% Weighted average stabilised occupancy 90.9% 89.3% Average number of mon
Slide 35: Group Debt Position at 31 October 2024
Group Debt Position at 31 October 2024 Facility Fixed-rate borrowings Floating-rate Total borrowings £/€'m £'m £'m Rate UK Revolver (GBP) £500.00 - £249.00 6.15% UK Revolver (EUR) - - £106.70 4.57% UK Revolver- non-utilisation - £144.3 - 0.42% US Private Placement 2026 € 70.00 £58.7 - 1.26% US Priva
Slide 36: 2024 Underlying to Statutory Adjustments
2024 Underlying to Statutory Adjustments Variable Underlying Share Statutory Derivative lease Valuation Finance Dep'n LH Share of Tax / CGS / Underlying Headings Income based Income Statutory Headings Movements payments/ Movement Lease Int properties Associate FX Statement payments Statement Dep'n S
Slide 37: 2023 Underlying to Statutory Adjustments
2023 Underlying to Statutory Adjustments Variable Underlying Share Statutory Derivative lease Valuation Finance Dep'n LH Share of Tax / CGS / Underlying Headings Income based Income Statutory Headings Movements payments/ Movement Lease Int properties Associate FX Statement payments Statement Dep'n S
Slide 38: Portfolio Summary: Customer Type
Portfolio Summary: Customer Type 2016 2017 2018 2019 2020 2021 2022 2023 2024 Personal Customers Numbers (% of total) 75% 76% 76% 77% 80% 79% 80% 80% 82% Square feet occupied (% of total) 55% 55% 56% 58% 60% 61% 62% 63% 66% Square feet occupied (m) 2.2 2.5 2.6 2.9 3.3 3.6 3.9 3.9 4.2 Average length
Slide 39: Portfolio Summary: By Country
Portfolio Summary: By Country Leading positions in the high-density capital city markets of London and Paris Expansion UK Paris Group Markets Number of stores 137 30 32 199 Let Square Feet (m Sq Ft) 4.539 1.094 0.777 6.410 Maximum Lettable Area (m Sq Ft) 5.878 1.424 1.290 8.592 Let Square Feet per s
Slide 40: Portfolio Summary: Freehold and Leasehold
Portfolio Summary: Freehold and Leasehold FY 2024 FY 2023 Freehold Leasehold Total Freehold Leasehold Total Total Portfolio Total Portfolio Number of stores 147 52 199 Number of stores 140 51 191 MLA (m sq ft) 6.647 1.946 8.592 MLA (m sq ft) 6.175 1.918 8.093 LFL Portfolio (CER) LFL Portfolio (CER)
Slide 41: Portfolio Summary: Store Maturity
Portfolio Summary: Store Maturity FY 2024 FY 2023 Developing Established Mature Total Developing Established Mature Total Total Portfolio Total Portfolio Number of stores 23 12 164 199 Number of stores 15 12 164 191 MLA (m sq ft) 0.984 0.469 7.139 8.592 MLA (m sq ft) 0.515 0.469 7.109 8.093 % of por
Slide 42: Steady LFL Revenue Performance – Expansion Markets
Steady LFL Revenue Performance – Expansion Markets Expansion Spain Netherlands Belgium Markets m Sq Ft 0.095 0.308 0.176 0.579 Average Occupancy YOY 3.3% 1.3% 3.5% 2.3% € / Sq Ft 36.35 21.51 24.16 24.75 Average Rate YOY (0.4%) 9.0% 12.6% 7.7% €m 3.5 6.6 4.2 14.3 Storage Revenue YOY 2.2% 10.7% 16.5%
Slide 43: REVPAF – Like-for-like at CER
REVPAF – Like-for-like at CER Region Total Revenue Occupancy REVPAF 2024 % Total % Total YoY (%) (CER £’m) (%) (CER £/ sq ft) London- M25 72.0 32.9% 79.1% 25.0% 37.52 0.1% London- Thames Valley 4.2 1.9% 86.3% 2.2% 26.49 (3.5%) Paris 44.6 20.4% 79.3% 17.8% 32.71 1.3% South East UK 23.5 10.7% 76.7% 10
Slide 44: Over 97% of Portfolio in Key Metropolitan Areas
Over 97% of Portfolio in Key Metropolitan Areas Population1 % Property Cum % City / Metropolitan Area London - Inside M25 (million) 9.8 Valuation2 36% Total 36% DEVELOPMENT PIPELINE OF 1.6M MLA 3 London - Thames Valley 10.3 2% 38% South-East UK 10.3 9% 47% 5% Barcelona Paris 11.3 20% 67% South East
Slide 45: Operational and Investment Strategies Deliver Industry-Leading EPS Growth
Operational and Investment Strategies Deliver Industry-Leading EPS Growth Indexed EPS Performance 450 400 350 300 250 200 150 100 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 SAFE BYG SHU SAFE: Adjusted Diluted EPRA Earnings per Share BYG: Adjusted Diluted EPRA
Slide 46: Sector Leading Total Shareholder Return
Sector Leading Total Shareholder Return Since Oct 13, Safestore has provided the highest returns of all stocks in the FTSE350 Real Estate Super Sector index Indexed TSR Performance since Safestore IPO (2007) Indexed TSR Performance since Oct-2013 1,200.00 1200 1,000.00 1000 800.00 800 600.00 600 400
Slide 47: Progress Towards Operational Net Zero
Progress Towards Operational Net Zero We will achieve operational carbon net zero by 2035, through: a) reducing & optimising what we use & b) using only zero carbon energy • Continued progress on lighting efficiency – customer unit • All new stores in Netherlands with solar PV installations and EV l
Slide 48: Strategy for Operational Net Zero
Strategy for Operational Net Zero We will achieve operational carbon net zero by 2035, through: a) reducing & optimising what we use & b) using only zero carbon energy • Completion of lighting efficiency programme (external signage • Installation of solar PV on new-build stores where viable and cust
Slide 49: Safestore ESG Commitments
Safestore ESG Commitments Sustainability targets and KPIs This table outlines the latest targets we set ourselves in each of the four ‘pillar’ areas of our Sustainability strategy. Whilst we are on track to meet or exceed our near term targets for FY 2025 set in 2019; our attention turns to delivery
Slide 50: Full Year Results
Full Year Results January 2025