In the UK, the group plans to develop five new properties, at a cost of £64 million (roughly R1.44 billion). This will add an estimated 270 000 square feet (about 25 110m2) in the gross lettable area to the portfolio.”
Stor-Age, SA’s biggest self-storage property fund, says customer churn levels remain below pre-pandemic levels, while average rent climbed by 7.3% in South Africa, and more than 8% in the UK over the past year.
Valued at about R5.9 billion on the JSE, Stor-Age’s portfolio comprised 86 self-storage properties across both SA (56) and the UK (30).
The SA portfolio was valued at R5.1 billion and the UK portfolio – under the brand Storage King – at R5.8 billion. In a trading update for the 11 months to end-February, same-store occupancies in South Africa rose from 89.5% in September to 91.7%, while in the UK it fell from 91.8% to 86.7%.
Demand levels remain robust with enquiry levels in line with expectation, the group said. Churn, or customers moving out each month as a percentage of starting occupancy, remains lower than pre-pandemic levels, providing further support to occupancy.
The 2023 year has seen a return to a more normalised cycle of trading in line with pre-pandemic seasonality trends, Stor-Age noted. Typically, the company experiences some occupancy losses in the winter months offset by strong trading activity in the spring and summer months.
Stor-Age is developing ten new South African properties at a cost of R900 million in Pinelands, Morningside, Bryanston, Century City and Paarden Eiland. This will add an estimated 60 000m2 in gross lettable area to the portfolio.
In December, the group completed the R65 million acquisition of a self-storage facility in Parklands in Cape Town. This added a further 3 300m2 of gross lettable area, with a further 5 300m2 of lettable area added at other properties in the portfolio in the 2023 year.
In the UK, the group plans to develop five new properties, at a cost of £64 million (roughly R1.44 billion). This will add an estimated 270 000 square feet (about 25 110m2) in gross lettable area to the portfolio.
The company continues to seek opportunities to unlock value in its existing UK portfolio. Accordingly, a number of town planning applications are currently either in hand and approved, allowing for expansion. This includes Huddersfield, Wakefield and Blackpool.
Shares in Stor-Age were up almost 3% to R12.80 in morning trade on Tuesday, having fallen about 7% so far in 2023.
