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Stor-Age Property REIT Limited
Incorporated in the Republic of South Africa
Registration number 2015/168454/06
Share Code: SSS ISIN: ZAE000208963
Approved as a REIT by the JSE
(“Stor-Age”, the “group” or the “Company”)
BUSINESS AND TRADING UPDATE
Stor-Age, South Africa’s leading and largest self storage property fund, is pleased to provide the following
business update.
Trading update
Key operating metrics for the 11-month period to 28 February 2023 reflect a resilient trading performance in
both the SA and UK markets, showing growth in both occupancy and average rental rates.
FY23 saw a return to a more normalised cycle of trading in line with pre-pandemic seasonality trends. Typically
the Company experiences some occupancy losses in the winter months offset by strong trading activity in the
spring and summer months. Demand levels remain robust with enquiry levels in line with expectation. Churn
(customers moving out each month as a percentage of starting occupancy) remains lower than pre-pandemic
levels, providing further support to occupancy. In both markets, we continue to carefully manage occupancy
levels, rental rates and promotions to maximise revenue.
In SA, total occupancy increased by 17 100m² year-to-date (“YTD”) to finish at 90.5%. On a same store basis,
the average rental rate increased by 7.3% YoY, whilst average occupancy increased by 2.1% YoY. Occupancy
in the same-store portfolio closed at 91.7%. Stor-Age completed the acquisition of Think Secure Self Storage
in December 2022 adding a further 3 300m² of GLA (6 900m² on full fit-out) with a further 5 300m² of lettable
area added at other properties in the portfolio in FY23.
In the UK, total occupancy increased by 3 200m² YTD. On a same store basis, the average rental rate
increased by 8.3% YoY, whist average occupancy increased by 1.0% YoY. Occupancy in the same-store
portfolio closed at 86.7%, reflecting the additional capacity of 5 200m² from our recently completed extensions
(primarily Doncaster, Bedford, and Chester). A further 5 700m² of lettable area was added to properties in the
non same-store portfolio.
The tables below summarise the closing occupancy and YTD occupancy growth at 28 February 2023:
SA Occupancy
GLA Occupied % occupied growth YTD
Feb-23 Feb-23 Feb-23 m²
Own portfolio 387 100 350 200 90.5% 15 300
JV portfolio 6 300 5 800 92.5% 1 800
Total 393 400 356 000 90.5% 17 100
Same-store 360 800 330 800 91.7% 8 300
Non same-store 32 600 25 200 77.4% 8 800
UK Occupancy
GLA Occupied % occupied growth YTD
Feb-23 Feb-23 Feb-23 m²
Own portfolio 106 600 92 100 86.4% 2 800
JV portfolio 25 200 17 600 69.9% 400
Total 131 800 109 700 83.3% 3 200
Same-store 94 200 81 700 86.7% 1 500
Non same-store 37 600 28 000 74.6% 1 700
Acquisition and development activity
Acquisition
Think Self Storage
Think Secure Self Storage in Parklands, a suburb located on Cape Town’s west coast, was acquired in
November 2022 for a purchase consideration of R65 million.
Well located on the corner of Sandown and Koeberg Roads in Parklands – servicing the broader Parklands,
Sunningdale and Table View areas, the property’s location is highly complementary to the existing Stor-Age
Sunningdale and Table View properties. Post acquisition the property has traded in line with forecasts.
The purpose-built multi-storey property offers an existing total potential of 4 000m² GLA, while also benefiting
from significant additional bulk. A planning application was submitted to expand the property by an additional
estimated 2 900m² GLA, translating into approximately 6 900m² GLA in total on completion.
Rebranding of the property is largely complete, with the retail store fit out still underway and scheduled for
completion in the first quarter of FY24.
Developments
New developments and major expansions are currently underway across 11 properties in South Africa and the
UK (SA 5: UK 6), which are scheduled to bring on line an additional estimated 55 000m² of space in FY24.
South Africa
Stor-Age’s secured development pipeline in South Africa comprises ten properties with an approximate total
development cost of R900 million, and which will add an estimated 60 000m² + GLA to the portfolio.
The table below summarises developments in progress:
Estimated
Estimated
Property Status development
GLA
cost
Nearing completion – external facades and works currently
Morningside in progress; internal fit-out is well advanced. Scheduled to R125m 7 400m²
open for trading in the second quarter of FY24.
External envelope of the building is complete, with the
Bryanston internal fit-out works currently in progress. Scheduled to R75m 4 700m²
open for trading in the first quarter of FY24.
Brownfield conversion. Internal concrete works
Pinelands substantially complete. Scheduled to open for trading in the R97m 7 300m²
second quarter of FY24.
Brownfield conversion. Vertical extension of the building
Paarden Eiland R75m 4 700m²
(two additional floors) is currently underway, with the fit-out
of the lower floors in progress. Scheduled to open for
trading in the second quarter of FY24.
Greenfield development. Bulk earthworks complete and
Century City piling underway. Scheduled to open for trading in the first R96m 6 100m²
quarter of FY25.
All properties are being developed in our JV with Nedbank, with the exception of Century City, which is being
developed in a JV with Rabie Property Group.
UK
An additional property was secured in the UK development pipeline in West London (zone 3) in February 2023.
Stor-Age’s secured development pipeline in the UK now comprises five properties with an approximate total
development cost of £64 million, and which will add an estimated 270 000sqf GLA to the portfolio.
Our new developments are being completed in the Moorfield JV.
The table below summarises developments in progress:
Estimated
Estimated
Property Status development
GLA
cost
Greenfield development. External envelope is complete
with the internal fit-out works currently in progress. 61 000sqf
Heathrow £13.8m
Scheduled to open in the second quarter of FY24. (5 700m²)
Brownfield conversion. Internal fit out is well advanced. 46 000sqf
Bath Scheduled to open for trading in the first quarter of FY24. £11.7m
(4 300m²)
Greenfield development. Steel structure is complete with
the roof and external cladding in progress. Scheduled to 54 000sqf
Canterbury £9.8m
open for trading in the third quarter of FY24. (5 000m²)
Brownfield conversion. Construction work has begun on 64 000sqf
site. Will also offer approximately 3 500sqf of office space (5 900m²)
West Bromwich and 13 000sqf of bulk storage space. Scheduled to open £12.0m excluding
for trading in the third quarter of FY24. bulk and
office space
Contracts exchanged in February 2023 for the purchase of
an existing building for conversion in west London for
£11.75 million (zone 3, approximately 55 000sqf of gross To be To be
Site 5 building area) with completion scheduled for April 2023. confirmed confirmed
Investigations are currently underway to extend the
building vertically (two floors). Brownfield conversion.
Portfolio expansion
Milton Keynes
An estimated 21 000sqf GLA expansion, comprising a three floor extension to the existing property, including
the conversion of a portion of existing office space to self storage, began on site in February 2023.
The building works are scheduled to be completed in the third quarter of FY24.
Crewe
The building adjacent to the existing property was acquired in August 2022 at a cost of £2.6 million. On
completion, the newly acquired property is forecast to compromise of an estimated 16 300sqf of self storage
space and 2 700sqf of office space.
The three-floor conversion of the newly acquired building and the addition of ancillary office space is scheduled
for completion in the second quarter of FY24.
Portfolio expansion – town planning applications
We continue to seek opportunities to unlock value in the existing portfolio. Accordingly, a number of town
planning applications are currently either in hand and approved, or have recently been submitted as follows:
• Huddersfield – a planning application is currently in progress for an estimated 22 000sqf GLA
expansion
• Wakefield – a planning application is currently in progress for an estimated 7 000sqf GLA expansion
• Blackpool – a planning application is currently in progress for an estimated 23 000sqf GLA expansion
Definitions
SA – South Africa
UK – United Kingdom
GLA – gross lettable area
JV – joint venture
FY – Financial Year
YTD – year-to-date
YoY – year-on-year
m² – square metres
sqf – square feet
Same-store – refers to properties trading for the full year in FY23 and FY22
Non same-store – includes acquisitions and new developments
Any forward looking statements have not been reviewed by the group’s external auditors.
Cape Town, 28 March 2023
Sponsor
Investec Bank Limited
