Stor-Age, which listed in November 2015, is SA's largest owner of self-storage facilities in SA, which it lets to commercial and residential clients. The firm has quickly become a reliable specialist investment, according to analysts.
"Since listing in November 2015, Stor-Age has outperformed the Reit sector by some 30%, conforming with the outperformance that self-storage plays have demonstrated globally," said Chris Logan of Opportune Investments.
"Self-storage Reits have demonstrated a remarkable ability to consistently grow revenue at a faster rate than expenses and derive value from mergers and acquisitions."
CEO Gavin Lucas said StorAge had met its pre-listing goals and was on track to own 60 properties across SA's major cities by 2020.
"We have today posted excellent annual results ahead of pre-listing forecasts, marking its third reporting period since listing of consecutive growth. Growth of 10% is 3.5% ahead of prospectus.
The total dividend for the year of R88.05 is 58c higher than the prior year," said Lucas.
"Stor-Age's performance reflects the recession-resilient nature of our self-storage product. Demand remains strong as the underlying 'need' prevails. The self-storage market, albeit fledgling in SA, is holding steady in contrast to other property subsectors locally," he said.
Occupancy in the portfolio, excluding group newcomer Storage RSA, increased 4,000m² on the prior year with a 9.4% increase in the average rental rate achieved.
Including Storage RSA, the increase in occupancy was 37,700m². The closing rental rate grew 12.7% to R86.
This meant at year-end, the group's total portfolio was 85% occupied.
Stor-Age's listed portfolio has grown to be worth R2.1bn, including 31 properties. The company bought Storage RSA's six high-quality stores during the reporting period.
"Extending our GLA [gross leasable area] with comparable store quality, average size and location makes Storage RSA a rare value-adding acquisition opportunity in the local fragmented industry," said Lucas.
Effective February 28 2017, the acquisition also offered a development opportunity in Bryanston for which town planning approvals were in hand.
Source: Business Day
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
