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Safestore Holdings PLC on Thursday reported a profit downturn in the first half of its financial year and warned about the impact of higher interest rates on full-year earnings. The Hertfordshire, England-based self-storage provider booked pretax profit of £36.3 million for the six months that ended April 30, down 63% from £97.0 million a year before. This reflected stable property values compared with value increases the previous year. Operating profit fell 53% on-year to £53.3 million, as investment property values remained stable, after registering a £49.5 million fair-value gain a year earlier. Underlying profit, however, edged up 2.3% to £44.6 million from £43.6 million. This figure reflects underlying Ebitdar less leasehold costs, depreciation charged on property, plant and equipment, net profit from joint ventures and associates, and net finance charges relating to bank loans and cash. Underlying Ebitdar is operating profit before exceptional items, share-based payments, corporate transaction costs, change in fair value of derivatives, gain or loss on investment properties, depreciation, the net profit from joint ventures and associates, interest and tax. Revenue advanced 6.9% to £120.6 million in the recent half-year from £112.8 million a year before. On an EPRA basis, net tangible assets per share stood at 1,120 pence as of April 30, down 0.8% from 1,129p at the end of October, which the company attributed to foreign exchange rates. EPRA adjusted diluted earnings per share rose 2.1% to 19.4p from 19.0p. Safestore bumped its interim dividend up 1.0% to 10.2p from 10.1p. The company’s shares fell 1.8% to 620.50p on Thursday morning in London. For the full year, Safestore expects earnings per share to be at the lower end of consensus, due to higher interest rates. Company-compiled consensus puts adjusted diluted EPRA earnings per share between 41.5p and 43.7p. ‘Looking ahead, the board is confident that the market dynamics for self-storage in the UK and Europe remain positive with our unique portfolio well positioned to deliver growth,’ Safestore said. ‘With fewer store openings than in FY 2025, we also anticipate reducing earnings drag from new stores this year and beyond, as recent openings mature and contribute to earnings.’ For the year ending in October, Safestore is targeting like-for-like sales growth at the lower end of a 3% to 6% range. In the first half, LfL sales ticked up 3.6% to £115.9 million from £111.9 million. In financial 2025, LfL sales rose 3.1% on-year to £228.7 million. It expects net finance costs to increase by between £2 million and £3 million, higher than previously forecast, ‘due to elevated floating interest rates’. In the first half, finance costs rose to £17.0 million from £15.9 million. The preceding year, finance costs rose £5.0 million to £26.4 million. Chief Executive Frederic Vecchioli commented: ‘Safestore delivered a positive performance in the first half of FY 2026...Our new and recently opened stores are performing well and, together with the development pipeline of a further 17 stores, are expected to contribute an additional £30-35 million of [earnings before interest, tax, depreciation and amortisation] to the group upon stabilisation over the coming years.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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