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Stor-Age Property REIT (JSE:SSS) News - Trading update
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”)
TRADING UPDATE
Stor-Age, South Africa’s leading and largest self storage property fund, is pleased to provide the following
trading update for the third quarter ended 31 December 2021.
Total occupancy in the same store portfolio increased by 10 500m² (2.6%) in the quarter ending 31 December
2021 whilst the closing average rental rate increased by 1.6% (annualised 6.3%) and 1.5% (annualised 6.0%)
in SA and the UK respectively.
Occupancy summary
SA 30 September 2021 31 December 2021
Occupied % Occupied %
GLA m² GLA m²
m² occupied m² occupied
Same stores 360 600 313 100 86.8% 366 800 325 300 88.7%
New stores - - - 16 500 9 600 58.2%
Total 360 600 313 100 86.8% 383 300 334 900 87.4%
UK 30 September 2021 31 December 2021
Occupied % Occupied %
GLA m² GLA m²
m² occupied m² occupied
Same stores 88 500 83 300 94.1% 88 900 81 600 91.8%
Total 30 September 2021 31 December 2021
Occupied % Occupied %
GLA m² GLA m²
m² occupied m² occupied
Same stores 449 100 396 400 88.3% 455 700 406 900 89.3%
New stores - - - 16 500 9 600 58.2%
Total 449 100 396 400 88.3% 472 200 416 500 88.2%
Increase in quarter ending 31 December 2021 SA UK Total
Occupied m² 21 800 (1 700) 20 100
Same stores 12 200 (1 700) 10 500
New stores 9 600 - 9 600
Occupied % 7.0% (2.0%) 5.1%
Same stores 3.9% (2.0%) 2.6%
New stores 100% - 100%
In SA, the growth in occupancy over the quarter was 12 200m² (3.9%) fueled by strong demand from both
domestic and commercial customers. The occupancy growth in the quarter was approximately 8.0% higher
than the corresponding quarter in the prior year.
In the UK, occupancy decreased by 1 700m² reflecting the impact of seasonality. The UK self storage market
experiences a greater degree of seasonality than the SA market with the autumn and winter months being a
traditionally slower trading period. Although the seasonal occupancy loss was expected, it was significantly
lower than pre-Covid levels.
Acquisition and development activity
Stor-Age portfolio
In the quarter we completed the acquisition of Silver Park Self Storage (located alongside Okavango Road in
Brackenfell, Cape Town northern suburbs, GLA 7 700m², R60.1 million purchase consideration) and Green
Cube Self Storage (located in Ottery, Cape Town southern suburbs, GLA 5 500m², R48 million purchase
consideration). Both properties complement the existing portfolio and present an excellent opportunity for
occupancy and rental rate growth.
Trading also commenced at Cresta in Johannesburg (7 400m² GLA on full fit-out) in October 2021 following
the completion of the first phase of construction.
Moorfield JV
Stor-Age has a 24.9% equity interest in a JV with Moorfield, a leading UK real estate fund manager with a 25-
year track record, to develop a portfolio of self storage properties in the UK.
In October 2021 the JV concluded the acquisition of a site in Hounslow, a large suburban town in West London,
to develop a 62 000 sqf GLA (5 800m²) store at an estimated cost of £13 million. Final planning consent has
been received and construction is expected to start imminently.
Contracts have been exchanged for a further two opportunities, both of which are expected to be completed
shortly (combined 97 000 sqf / 9 000m² GLA) at an estimated cost of £20 million. In addition, heads of terms
have been agreed for the acquisition of another prime development site, subject to formal planning consent,
to develop a 61 000 sqf GLA (5 700m²) store at an estimated cost of £13 million.
The JV is now more than 90% committed in relation to the initial allocation of £50 million (with the potential to
increase to £100 million) and is actively pursuing acquisition opportunities.
Nedbank JV
In September 2021 we announced a JV with Nedbank Property Partners, a division of Nedbank, to develop
two high profile properties in Morningside (7 400m² GLA) and Bryanston (4 700m² GLA), at a cost of
approximately R200 million. Stor-Age will have a 50% equity interest in the JV. Construction has now started
in Morningside with the store scheduled to open in the first half of 2023. Final planning approval is expected
for the Bryanston property by February, after which construction will start on site. We anticipate developing
further properties in our SA pipeline in the JV structure.
Definitions
SA – South Africa
UK – United Kingdom
m² – square metres
sqf – square feet
Same store refers to properties trading at 30 September 2021 and 31 December 2021
New stores include Cresta (commenced trading in October 2021), Silver Park and Green Cube
Cape Town, 14 January 2022
Sponsor
Investec Bank Limited
Date: 14-01-2022 11:45:00
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