Lok'nStore hikes dividend after strong first-half growth

Lok'nStore Group reported “strong growth” in occupied space and its achieved rate per square foot in its interim results on Monday, as well as a “significant” increase in net asset value, and an increased dividend.

The AIM-traded storage operator recorded group revenue of £13.38m for the six months ended 31 January, up 31.1% year-on-year.

Group adjusted EBITDA was ahead 46.5% at £8.12m, while the company’s achieved rate per square foot of occupied space was 18.5% firmer over last year.

Unit occupied space was 6% higher year-on-year, with £24.22 per square foot achieved, compared to £20.44 a year earlier.

Cash available for distribution was up 59.6% at £5.58m, with cash available for distribution per share ahead 57.2% to an annualised 38p.

The board declared an interim dividend of 5p per share, up 15.5% year-on-year and making for the 11th consecutive year of increases.

Lok’nStore said its adjusted net asset value per share was 48.4% higher year-on-year at £8.43, and up 15.3% from the end of July 2021.

The company said it had £44.4m of cash at period end, up from £11.3m at the end of July, while net debt excluding lease liabilities narrowed to £22.4m from £42.6m.

Its loan-to-value ratio stood at 8.3% at period end, narrowing from 20.4%.

Looking ahead, Lok’nStore said trading remained “buoyant”, with pricing up 1.5% and like-for-like occupied space ahead 0.9% in the two months since the period ended.

“Demand for UK self-storage assets remains strong and this, combined with strong trading has driven our net asset value per share forward by 48.4% over the last 12 months,” said executive chairman Andrew Jacobs.

“Our new Warrington store opened in January, our new store in Wolverhampton opened in March and Stevenage opens in the final week of April.

“We are on site at three further stores all of which will open within the next 15 months.”

Jacobs said as at 31 January, the company’s current fully-funded secured pipeline of 12 new stores increased lettable owned space by 35.5%.

He added that the firm was seeing “many more exciting” new store opportunities.

“Continuing this exciting period of growth, our objective is to build more landmark stores in an under-supplied market, remaining conservatively geared delivering sustainable growth and consistently increasing dividends.

“The board is confident the group will continue to thrive under its highly experienced management team and we look to the future with confidence.”

At 0916 BST, shares in Lok’nStore Group were up 0.47% at 1,065p.