Safestore (LON:SAFE) Issues Quarterly Earnings Results

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

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 Stock Up 3.8%

Shares of SAFE opened at GBX 798 on Thursday. The company has a debt-to-equity ratio of 41.53, a quick ratio of 0.90 and a current ratio of 0.89. Safestore has a 52 week low of GBX 525.50 and a 52 week high of GBX 800.20. The stock has a market capitalization of £1.74 billion, a price-to-earnings ratio of 5.92, a PEG ratio of 2.05 and a beta of 0.86. The stock has a fifty day moving average of GBX 722.30 and a 200-day moving average of GBX 689.34.

Wall Street Analysts Forecast Growth

Separately, Jefferies Financial Group raised their price objective on Safestore from GBX 648 to GBX 682 and gave the company 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. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target 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.