Safestore (LON:SAFE) Issues Quarterly Earnings Results

Safestore (LON:SAFE) issued its quarterly earnings results on Thursday. The company reported GBX 40.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Safestore had a net margin of 118.32% and a return on equity of 12.38%.

Here are the key takeaways from Safestore’s conference call:

• Management says the heavy lifting is done and the business is transitioning to earnings delivery, with group revenue of £234.3m, underlying EBITDA of £137m, and a pipeline/unstabilised portfolio expected to add £35m–£40m of EBITDA on stabilization.
• Costs and financing weighed on near‑term profits — administrative costs rose ~19.6% (driven by reintroduced variable pay and tech/AI investment), interest costs increased ~£5m, and net debt (including leases) rose to £1.1bn, contributing to a ~4.2% fall in underlying profit before tax.
• Operational execution strengthened — like‑for‑like occupancy increased to 81.2%, RevPAF rose 2.9%, like‑for‑like store cost growth was a lower‑than‑expected 4.4%, and initiatives (unit partitioning, AI/digital) are improving rates, conversion and marketing efficiency.
• The group remains cash generative (cash flow before investing £89m) and declared a 1% higher full‑year dividend of 30.7p, while guiding £86m development CapEx for FY26 as it balances ongoing investment with the aim of rebuilding dividend cover over the medium term.

Safestore Price Performance

Shares of SAFE opened at GBX 827 on Friday. The firm has a market cap of £1.81 billion, a PE ratio of 6.14, a price-to-earnings-growth ratio of 2.05 and a beta of 0.86. Safestore has a 52-week low of GBX 525.50 and a 52-week high of GBX 831. The business’s 50 day moving average price is GBX 723.98 and its two-hundred day moving average price is GBX 690.23. The company has a debt-to-equity ratio of 41.53, a quick ratio of 0.90 and a current ratio of 0.89.

Analyst Ratings Changes

Separately, Jefferies Financial Group lifted their target price on shares of Safestore from GBX 648 to GBX 682 and gave the stock a “hold” rating in a research note on Tuesday, October 28th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 751.

Safestore Company Profile

Safestore is the UK's largest self storage group with 190 stores on 31 October 2023, comprising 133 wholly owned stores in the UK (including 73 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and Bristol), 29 wholly owned stores in the Paris region, 11 stores in Spain, 11 stores in the Netherlands and 6 stores in Belgium. In addition, the Group operates 7 stores in Germany under a Joint Venture agreement with Carlyle.