Self storage properties Archives

STOR-AGE GROWS PORTFOLIO TO 109 PROPERTIES AND DELIVERS STRONG OPERATIONAL AND FINANCIAL UPDATE

HIGHLIGHTS

Interim dividend of 59.74 cents per share, up 4.5% year-on-year
Distributable income of 66.37 cents per share, up 4.5% year-on-year
Rental income up 8.7%, same-store occupancy up 3 500m² and net investment property value up 6.4% to R12.2 billion
Closing occupancy 90.6% (92.1% SA; 85.2% UK)
JV portfolio occupancy up 15 800m² (SA 9 300m²; UK 6 500m²), including same-store growth of 9 200m² (SA 4 700m²; UK 4 500m²)
SA REIT NAV per share up 6.9% year-on-year to R17.25
Loan-to-value ratio of 30.9% and 78.8% of net debt subject to interest rate hedging
Property portfolio comprises 109¹ trading stores (SA 63; UK 46), with the total portfolio including developments exceeding 700 000m² GLA
Development pipeline of 78 000m^² GLA, with 19 projects at various stages of planning and completion
Acquired Lock Up Storage in KZN in October 2025 for R95 million, with 11 400m² GLA across two properties
Construction commenced at Bramley (Johannesburg) in June 2025 at a total development cost of R91 million
Development scheduled to begin in 2026 of new SA flagship property at De Waterkant (Cape Town foreshore) at a total development cost of R155 million (excl. land)
Two new properties secured for development in Cape Town
New Storage King Exeter management contract secured in September 2025
Development of the new Hines-owned Storage King Chelmsford (South East England) commenced (7 000m² GLA) – third-party developer-operator model
2030 Property Strategy targeting 90 properties in SA and 70 properties in the UK
Guidance reaffirmed for FY26 distributable income per share to be approximately 5% to 6% higher year-on-year

JSE REIT Stor-Age, South Africa’s leading and largest self-storage property fund, maintained its resilient financial performance for the twelve months to September 2025. The Group continues to strengthen its market-leading position and maintain its track record of consistent earnings growth.

November 2025 marked the ten-year anniversary since Stor-Age listed on the JSE, where the Company became the first self-storage REIT to be listed on an emerging market exchange globally and the first, and still only, of the real estate “alternatives” to be listed on the local stock exchange. The past decade has been characterised by a consistently strong operational and financial performance, and substantial portfolio expansion, reflecting the Group’s disciplined and highly successful execution of its multi-year strategic growth plans.

Stor-Age CEO Gavin Lucas comments, “During the past decade Stor-Age has consistently delivered on its strategic objectives, expanding the portfolio across South Africa and the UK, and delivering consistent earnings growth. Since the listing in 2015, we have continued to outperform both the JSE All Share Index (ALSI) and the JSE All Property Index (ALPI), expanding our portfolio from a value of R1.3 billion to R13.6 billion and the number of properties from 24 to 109.

Assuming R100 was invested on the date of our listing in November 2015 and provided that the full pre-tax dividend was reinvested, an investment in Stor-Age would be worth R360.88 at the end of October 2025. The same investment in the ALSI and in the ALPI would be worth R303.27 and R113.15 respectively. Over the past decade that we’ve been publicly traded, that translates into a significant 173% outperformance of our sector benchmark, the ALPI. A pleasing result and one that we are proud of.”

For the six months to 30 September 2025, Stor-Age delivered another strong trading performance, achieving revenue and occupancy growth, with the Group growing its distributable income per share of 65.87 cents 4.5% compared to the prior year. Executing the Company’s latest five-year property strategy to 2030, Stor-Age expanded its portfolio to 109 properties (SA: 63; UK 46) and increased the combined value of the portfolio, including properties managed in JV partnerships, to R18.7 billion.

The South African portfolio remains operationally strong, delivering year-on-year growth of 9.8% in rental income and 10.6% in net property operating income on a same-store basis.

While trading conditions in the UK were more challenging during the period, the Company continued to deliverer on all key metrics relative to its UK listed peers. During the period, same-store rental income increased by 2.5%, with occupancy closing at 85.2%, and increasing by 1 400m² compared to 31 March 2025.

Since the JSE listing in 2015, through a combination of acquisitions and developments, the South African portfolio has grown at an average of 3.4 new trading properties per year and the UK portfolio four since Stor-Age’s strategic market entry into the UK in 2017. Combined, it translates into an attractive overall portfolio growth rate of an average of more than seven properties per annum since 2017. The Group’s 2030 property strategy, the fourth iteration since 2010, aims to expand the South African portfolio to 90 properties and the UK portfolio to 70 properties.

Stor-Age continues to make excellent progress in executing its UK growth strategy. In June 2025 the Company opened a new £25 million property in Acton, West London in its JV with Moorfield. Following Stor-Age entering into a third-party management agreement with Hines in FY25 to manage the acquisition of a three-property portfolio in the UK, the two companies are now working closely on four additional development projects. The first of these properties, located in Chelmford, has commenced development with the store scheduled to open in Q2 FY27. In September 2025, the Company also entered into a third-party management agreement with Time Investments, a specialist investment manager focused on asset-backed, income-producing investments, to manage a property acquired in Exeter, Devon.

In South Africa, the Group made further progress with several acquisitions and new developments, further cementing its sector-leading position in the country. The latest addition to the portfolio was in October 2025, with the Company acquiring two properties operated by Lock Up Storage in KwaZulu-Natal for R95 million. Located in Pinetown and New Germany, the two properties will expand the portfolio by 11 400m².

In June 2025, construction commenced on a new property located in Bramley, Johannesburg. The development, situated alongside the busy M1 highway, will comprise 5 600m² GLA with a total development cost of R91 million. In Cape Town, the Company announced that it plans to imminently break ground on a new SA flagship store, a 6 500m²GLA property in De Waterkant on the foreshore, and located in close proximity to the V&A Waterfront. At a development cost of R155 million excluding land costs, it will be the most expensive self storage property ever developed in South Africa, as well as the tallest at 13 storeys. Construction at the property is expected to begin in early 2026.

Concludes Lucas, “⁠Our South African portfolio continues to deliver strong growth momentum supported by improving macroeconomic conditions, including a more favourable inflation outlook, a stabilising political environment and the prospect of interest rate cuts. These trends underpin a positive outlook for continued performance in the second half of the year. In the UK, trading conditions have been more challenging across the sector than anticipated. We remain focused on driving operational efficiencies, disciplined cost management and further growth of our third-party management platform to enhance long-term resilience and scale. Looking ahead, Stor-Age continues to focus on growth opportunities in both markets while maintaining a conservative capital structure.”

Stor-Age reaffirmed its FY26 full year forecast of distributable income per share growth of 5 – 6%.

The share closed yesterday at R17.55.

STOR-AGE DELIVERS POSITIVE OPERATIONAL PERFORMANCE, CONTINUES TO EXECUTE ON ITS NEW LONDON DEVELOPMENT SITE AND GROWS PIPELINE OF UK PROPERTIES TO SIX WITH HINES

Stor-Age Property REIT Limited, South Africa’s leading and largest self storage property fund, announced robust trading results for the four-month period ending 31 January 2025, with total occupancy and average rental rates up.

Stor-Age delivered a strong trading performance in South Africa in Q3 of FY25, ending 31 December 2024, which continued in January 2025. Occupancy in the owned portfolio increased by 5 400m²compared to September 2024, to close at 93.5% at 31 January 2025. The portfolio achieved an average rental rate increase of 7.8% year-on-year.

In the context of a subdued economic environment and relative to publicly traded operators, the UK portfolio’s performance was resilient. With Q3 being the weakest trading quarter seasonally in the UK for the self storage sector, total year-to-date occupancy still ended up 1.5%, increasing by 1 400m². The portfolio achieved an average rental rate increase of 4.1% year-on-year.

The company’s joint venture (JV) properties performed well in both markets, with occupancy since 30 September 2024 increasing by 4 100m²and 2 700m² in South Africa and the UK respectively.

Comments Stor-Age CEO Gavin Lucas, “We are pleased with the continued strong operational performance achieved over the four-month period. Our South African portfolio has performed exceptionally well, while our UK portfolio continued to demonstrate its defensive nature and resilience.”

The company has continued to expand its footprint in both markets. In Cape Town, expansion continued at the Parklands property which will increase the GLA to 6 900m². In the company’s JV with Garden Cities, a purchase agreement was also recently finalised to acquire a parcel of land adjacent to the Sunningdale property, which has performed exceptionally well since its opening in May 2021, to expand the property to 10 500m².

In London, together with its JV partners, the company completed the development of its property in Leyton (located in east London) in January 2025 and progress continued at the Acton property (located in west London), with a targeted completion date of Q1 FY26. The Leyton property will comprise 3 900m² on full fit-out while the Acton property will comprise 5 800m².

Adds Lucas, “There remains an undersupply of high quality self storage properties across both South Africa and the UK providing the group with an excellent opportunity to expand its presence in both markets. The long lease-up period (financing cost implications) required to reach stabilised occupancy at new properties in these high-barrier-to-entry locations also contributes to the defensive nature of our portfolio.”

The company has also continued to make significant progress with its third-party management offering, Management 1^st, particularly with privately owned global real estate investment, development and management firm Hines. In addition to the three property Kent Space portfolio which closed in May 2024, the Hines development pipeline now consists of an additional six properties.

Adds Lucas, “Within the Hines pipeline, two development sites have recently been acquired in Chelmsford and Buckinghamshire. Construction at the first site in Chelmsford, Essex is scheduled to begin in Q1 FY26 and work is underway to submit a detailed planning application for the second site in Buckinghamshire by the end of March. Hines hold exclusivity over the four remaining properties in the pipeline, all of which are in various stages of planning.”

Looking ahead, the company remains focused on further expanding its portfolio while continuing to produce an attractive trading performance. Concludes Lucas, “The outlook for development activity remains positive and we are well positioned to pursue these opportunities with our JV partners as they arise.”

The share closed on Friday at R14.60.