Safestore’s shares have fallen 30 per cent this year as the UK self-storage REIT cut its annual earnings guidance and delayed parts of its expansion pipeline. The group operates 236 stores across seven markets and carries £380mn of floating-rate debt, though its loan-to-value ratio remains low at 29 per cent. Recent quarterly revenue grew 4.4 per cent, down from 6.9 per cent in the first half, with like-for-like sales rising in the UK and expansion markets but slipping in Paris.
Despite the downturn, directors have increased their holdings: chief executive Frederic Vecchioli bought £364,000 of shares, CFO Simon Clinton purchased £35,000, and senior independent director Jane Bentall added £86,000 on October 14. The stock trades more than 35 per cent below the mean analyst target and offers a 6 per cent dividend yield. Management sees potential for over £100mn of additional EBITDA as capital needs decline.
Source: Financial Times Companies · Summarized by HeadlinesBriefing