Stor-Age Reit continues on its uninterrupted growth trajectory
CAPE TOWN – Stor-Age Property Reit, a leading self-storage company, continued its uninterrupted sharp growth trajectory with a 7 percent increase in dividend to 54.89 cents per share in the six months to end September.
The group said its property revenue rose 46.6 percent to R330.86 million, while headline earnings per share increased 18.2 percent to 43.50c.
“Looking forward, there's no doubt we're faced with challenging economic environments in both South Africa and the UK in the short to medium term,” chief executive Gavin Lucas said. “With the benefit of outstanding operating platforms in both markets, a well-managed and significantly hedged balance sheet, and operating in a global property growth sector, we believe we are well positioned to continue delivering attractive earnings growth.” Stor-Age said it anticipated a 7 to 8 percent distribution growth for the year to March 2020.
It said rental income and net property income were up sharply by 40.8 and 49.4 percent respectively.
“We continued to invest management time in improving critical areas of our operating platform, focusing on technology and innovation in a number of key operational areas,” said Lucas. The group said its like-for-like rental income surged 7 percent in South Africa and 3 percent in the UK.
It said gross letting area increased a quarter by 103 800m² to 429 400m².
Closing total occupancy was 83.8 percent, with the UK reflecting a record occupancy of 84.2 percent.
Stor-Age shares declined 1.69 percent on the JSE on Tuesday to close at R15.14.