First half revenue rises for Lok'nStore
Self-storage operator Lok'nStore updated the market on its first half on Monday, reporting “strong” trading, with self-storage revenue up 11% year-on-year.
The AIM-traded firm said that at the end of the period on 31 January, unit occupancy was up 24.7%, making for a gain of 175,897 square feet over 12 months.
It said that was a forward indicator of accelerating revenue growth, adding that occupancy as a percentage of current lettable area was up to 81.6%, from 67.1% last year.
The company’s price per square foot of occupied space was down 2.6% compared to the same date 12 months ago, with the board saying that it had chosen not to implement price increases on existing customers throughout the Covid-19 pandemic.
Lok’nStore said it had continued to make progress on its new store pipeline of 11 sites, with work having started at four of those, which were all scheduled to open by the end of 2021 or early in 2022.
The pipeline of new stores would add “considerable” momentum to sales and earnings growth over the medium term.
More sites for further new store openings were being actively targeted.
“I am pleased to report that occupancy grew by an unprecedented 175,897 square feet, up 25% over the previous year, and this will feed into further revenue and profit growth in the second half, and into next year,” said executive chairman Andrew Jacobs.
“We have also made significant progress on our new store pipeline, whilst remaining conservatively geared, with four of these currently under construction opening by early 2022.
“This pipeline of new stores will add considerable momentum to sales and earnings growth in the future.”
Lok’nStore said it would announce its interim results for the six months ended 31 January on 26 April.
At 1224 GMT, shares in Lok’nStore were down 0.8% at 659.7p.