South Africa, UK Self-Storage Operator Stor-Age Posts Financial Results for Second Half of 2023 Fiscal Year

Stor-Age Property REIT, a real estate investment trust that operates self-storage in South Africa and the United Kingdom, has released its earnings report for the second half of its fiscal year, which ended Sept. 30. Property revenue grew 8.1% using constant exchange rate (CER), while net operating income was up 8% year over year using CER. Physical occupancy across the company’s portfolio was 89.1% at the end of the period, up from 88.8%.

The company reported a closing occupancy of 90.5% for its South Africa properties and 83.9% for those in the U.K. Rental income for its total portfolio increased 17% during the period, with same-store rental income growing 13.6% in South Africa and 3.1% in the U.K. Average rental rates grew 9.6% in South Africa and 5.1% in the U.K.

“Despite the easing of some pandemic-related drivers of demand that led to record performance in recent years across the sector, the group continues to deliver robust growth notwithstanding challenging and uncertain economic conditions,” company officials said in a report released on Nov.14.

In conjunction with joint-venture partners, Stor-Age opened six new self-storage facilities across its portfolio during the period, including four in South Africa and two in the U.K. It has 17 development projects in various stages of planning and construction that’ll add about 66,000 square meters of gross leasable area to its portfolio.

Stor-Age issued an interim dividend of 61.36 cents per share, a 2.2% increase.

Headquartered in Cape Town and established in 2006 by the Lucas family, Stor-Age operates a 97-property portfolio, primarily in four South African metropolitan areas, that comprises approximately 497,200 square meters. It’s the operator appointed by Stor-Age Property Fund Managers Pty. Ltd. to manage and market the property portfolio owned by Stor-Age Property Holdings Pty. Ltd., and was listed on the Johannesburg Stock Exchange in November 2015.

Sources:
Moneyweb, Stor-Age Posts Modest 2.2% Increase in Interim Dividend
Stor-Age, Condensed Unaudited  Consolidated Interim Results