Stor-Age Reit con­tin­ues on its un­in­ter­rupted growth tra­jec­tory

Pretoria News - - BUSINESS REPORT | NEWS - ED­WARD WEST ed­[email protected]

STOR-AGE Prop­erty Reit, a lead­ing self-stor­age com­pany, con­tin­ued its un­in­ter­rupted sharp growth tra­jec­tory with a 7 per­cent in­crease in div­i­dend to 54.89 cents per share in the six months to end Septem­ber.

The group said its prop­erty rev­enue rose 46.6 per­cent to R330.86 mil­lion, while head­line earn­ings per share in­creased 18.2 per­cent to 43.50c.

“Look­ing for­ward, there’s no doubt we’re faced with chal­leng­ing eco­nomic en­vi­ron­ments in both South Africa and the UK in the short to medium term,” chief ex­ec­u­tive Gavin Lu­cas said. “With the ben­e­fit of out­stand­ing op­er­at­ing plat­forms in both mar­kets, a well-man­aged and sig­nif­i­cantly hedged bal­ance sheet, and op­er­at­ing in a global prop­erty growth sec­tor, we be­lieve we are well po­si­tioned to con­tinue de­liv­er­ing at­trac­tive earn­ings growth.” Stor-Age said it an­tic­i­pated a 7 to 8 per­cent dis­tri­bu­tion growth for the year to March 2020.

It said rental in­come and net prop­erty in­come were up sharply by 40.8 and 49.4 per­cent re­spec­tively.

“We con­tin­ued to in­vest man­age­ment time in im­prov­ing crit­i­cal ar­eas of our op­er­at­ing plat­form, fo­cus­ing on tech­nol­ogy and in­no­va­tion in a num­ber of key op­er­a­tional ar­eas,” said Lu­cas. The group said its like-for-like rental in­come surged 7 per­cent in South Africa and 3 per­cent in the UK.

It said gross let­ting area in­creased a quar­ter by 103 800m² to 429 400m².

Clos­ing to­tal oc­cu­pancy was 83.8 per­cent, with the UK re­flect­ing a record oc­cu­pancy of 84.2 per­cent.

Stor-Age shares de­clined 1.69 per­cent on the JSE yes­ter­day to close at R15.14.

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