Stor-Age Property sees H1 HEPS down 30%

Stor-Age Property, a leading real estate investment trust specializing in self-storage facilities, has showcased an impressive performance in the challenging economic landscape of South Africa and the United Kingdom. In a recent interview with CNBC Africa, Gavin Lucas, the CEO of Stor-Age Property, highlighted the company's resilience and strategic approach that have contributed to its success. Despite facing high interest rates and inflationary pressures, Stor-Age Property managed to deliver a stellar performance over the 12-month period ending in September 2023. Lucas expressed satisfaction with the company's growth in same-store, like-for-like rental income, which saw a remarkable increase of over 13%. This growth was driven by a significant rise in rental rates achieved, coupled with an additional 3% growth in occupancy levels. While the UK market presented slightly more subdued results, Stor-Age Property still achieved a 3% growth in same-store rental income, demonstrating its ability to navigate tough economic environments. One of the key factors contributing to Stor-Age Property's success is its strategic positioning in areas with high demand for quality self-storage solutions. Lucas noted that despite the common perception of a shallow South African market, the company has experienced robust demand and performance in the region. The strong performance in South Africa was complemented by the UK market, where Stor-Age Property saw a growth of more than 5% in average rental rates. Looking ahead, Stor-Age Property has set ambitious targets for occupancy and rental rate growth in both markets. With 17 active projects at various stages of completion, including new developments and property expansions, the company is well-positioned to capitalize on the increasing demand for self-storage solutions. Despite uncertainties in the macroeconomic environment, Lucas remains optimistic about the company's outlook, emphasizing its strong balance sheet and resilience. Stor-Age Property has guided the market towards a dividend payment of 118 to 122 cents for the full year of 2024, backed by a positive performance in the first few months of the fiscal year. Lucas reassured investors that the company's robust financial position and hedging strategies provide a solid buffer against potential global events. In conclusion, Stor-Age Property's ability to weather economic challenges and deliver consistent growth underscores its strength in the real estate market. The company's unwavering performance and strategic focus on high-quality self-storage products position it as a resilient player in the commercial property sector. Despite the uncertainties on the horizon, Stor-Age Property remains confident in its ability to navigate any future crises and continue its track record of outperforming market indices.