# Safestore delivers FY 2025 results with revenue growth and expanding store portfolio

- Link: https://www.directorstalkinterviews.com/safestore-delivers-fy-2025-results-with-revenue-growth-and-expanding-store-portfolio/4121235098
- Published: 2026-01-15T07:49:49+00:00
- Author: Amilia Stone

**Safestore Holdings plc** (LON:SAFE) has announced its results for the year ended
31 October 2025

_Strong operational performance, investment in future growth and earnings at an 
inflection point_

| ** ** | **2025**  | **2024** | **_Change_****_(Total)_** | **_Change (CER)_****_^(2)_** | 
| **FINANCIAL METRICS** | ** ** | ** ** | **_ _** | **_ _** | 
| Total Revenue (£’m) | _234.3_ | 223.4 | _4.9%_ | _5.0%_ | 
| _  LFL__^(14)_ _Revenue (£’m)_ | 228.7 | _221.9_ | _ _ | _3.1%_ | 
| Underlying EBITDAR^(4) (£’m) | 137.0 |  135.4 | _1.2%_ | _1.3%_ | 
| Operating Profit (£’m) | 159.3 | 425.8 | _(62.6%)_ | _ _ | 
| Underlying Profit before Tax^(5) (£’m) | 92.9 | 97.0 | _(4.2%)_ | _ _ | 
| Statutory Profit before Tax (£’m) | 127.1 | 398.6 | _(68.1%)_ | _ _ | 
| Adjusted Diluted EPRA EPS^(11) (pence) | 40.3 | 42.3 | _(4.7%)_ | _ _ | 
| Dividend per share (pence) | 30.70 | 30.40 | _1.0%_ | _ _ | 
| **Balance Sheet Metrics** |  |  | _ _ | **_ _** | 
| EPRA Basic NTA^(13) per Share (pence) | 1,129 | 1,091 | _3.5%_ | _ _ | 
| Net Assets (£’m) | 2,288.4 | 2,226.8 | _2.8%_ | _ _ | 
| Net cash inflow from operating activities (£’m) | 99.9 | 95.9 | _4.2%_ | _ _ | 
| Net debt (£’m) | 1,058.6 | 899.5 | _17.7%_ | _ _ | 
| Loan to value ratio (LTV) %^(16) | 28.1% | 25.1% | _3.0ppt_ | _ _ | 
| **OPERATING METRICS**  |  |  | **_ _** | _ _ | 
| Maximum Lettable Area (“MLA”)^(8) m sq ft | 9.3 | 8.6 | _8.0%_ | _ _ | 
| Current Lettable Area (“CLA”)^(3) m sq ft | 8.5 | 8.2 | _3.9%_ | _ _ | 
| Closing Occupancy^(7) (% of CLA)  | 78.1% | 78.0% | _0.1ppt_ | _ _ | 
| LFL Closing Occupancy (% CLA) | 81.2% | 80.0% | _1.2ppt_ | _ _ | 
| Group REVPAF^(10) (£ / sq ft)  | 27.47 | 27.77 | _(1.1%)_ | _(1.0%)_ | 
| LFL REVPAF (£ / sq ft) | 28.93 | 28.12 | **_ _** | _2.9%_ |

**HIGHLIGHTS**

**Financial and operational progress**

·       Group revenue at constant exchange rates (CER) up 5.0% to £234.3 million,
with 3.1% LFL growth; positive LFL growth across all geographies and increasing 
contribution from non-LFL stores:

–     UK revenue +3.3% improved through the year reaching £167.5 million, with increasing
domestic occupancy, unit partitioning and higher average storage rates^(9) driving
LFL growth of 2.4%

–     Paris revenue of €52.6 million +2.5% reflects solid LFL growth of 1.3% with
increasing occupancy and flat average rates

–     Expansion Markets^(15) total revenue of €26.2 million +27.0%; strong growth
in LFL (+13.5%) and non-LFL stores; Spain, Netherlands and Belgium all performed
well;

·       Underlying store EBITDAR increased by 3.1% to £155.9 million; inflationary
cost pressures were partially offset by internal efficiencies, resulting in LFL 
cost of sales increase of 4.4%, broadly in line with sales and below the previously
guided rise of 7-8%

·       Underlying EBITDAR was £137.0 million, up 1.2%, lower growth than store 
EBITDAR growth due to higher administrative costs

·       Operating profit down 62.6% to £159.3 million due to lower property revaluation
gains of £23.1 million in FY 2025 (FY 2024: £292.2 million)

·       Underlying net finance costs increased by £5.0 million to £26.4 million 
due to increased borrowings to support the store expansion programme

·       Underlying profit before tax of £92.9 million declined by 4.2% reflecting
the higher interest charge. The resulting Adjusted Diluted EPRA EPS was 40.3p, in
line with consensus estimates. Statutory profit before tax of £127.1 million and
Basic EPS of 50.9 pence declined 68.1% and 70.1% respectively, as a result of lower
fair value gains on investment properties than in FY 2024

·       Dividend per share of 30.70p, up 1%, underpinned by robust cash flow from
operating activities, in line with progressive dividend policy and reflecting confidence
in future prospects

·      Balance sheet remained strong with £2.3 billion of net assets growing 2.8%
in the year. LTV ratio of 28.1% and interest cover ratio (“ICR”)^(17) of 4.0x; capital
structure underpinned by investment property valuation of £3.5 billion

**Strategy on track, with pipeline being executed as planned**

·       Continued focus on REVPAF to optimise trading in our existing store portfolio
where we see significant potential to drive further EBITDA growth from both LFL 
and non-LFL stores. Recently opened (non-LFL) stores on track to meet 10% yield 
on cost^(18) hurdle, with stores opened 2016-2021 achieving between 10%-20%

·       £80 million investment in store development resulted in MLA growing by a
further 8% or 0.7 million sq ft to 9.3 million sq ft in FY 2025, with the addition
of 13 new stores and 1 extension, representing the largest organic space increase
in our recent history. In total since FY 2023 we have added 1.5 million sq ft, a
19% uplift to MLA

·       £38.9 million investment in Italy through a new 50:50 joint venture with
Nuveen established in December 2024 with stores performing in line with expectations

·    Further enhancement of our technology-led operating model that combines centralised
efficiency and local expertise with accelerated AI integration across marketing,
pricing, and sales to optimise revenue performance

·       We continue to make good progress towards our target of operational net 
zero with a 22% reduction in emissions intensity to 0.64 kgCO_(2)e/ m^(2)

**Outlook and guidance**

·      Q1 trading to date has shown a continuation of the trend in LFL growth from
FY 2025 across all our markets

·      FY 2026 outlook: cautiously optimistic with a return to earnings growth

o  Underlying LFL cost of sales growth expected to be 3%-6%

o  Underlying net finance costs projected to increase by £1-£2 million

o  Capital expenditure on new stores of £86 million 

o  417k sq ft of additional MLA with a further 678k sq ft MLA in FY 2027 and beyond.

·     On track to deliver the £35-£40 million of incremental EBITDA from non-LFL
stores and pipeline on stabilisation 

> **Frederic Vecchioli, Safestore’s Chief Executive Officer, commented:**
> _“Safestore’s performance in FY 2025 reflects strong operational execution and
> investment in future growth. I want to thank our teams across the business for
> their hard work and commitment throughout the year. We continued to drive REVPAF
> and optimise trading across the like-for-like estate, which remains a key engine
> of profit growth for the Group. We also demonstrated good cost control, and this
> continues to be a focus. The dividend was up 1%, an important part of the total
> return for our shareholders._
> _Our new and recently opened stores are performing well across the portfolio, 
> and, together with the development pipeline of a further 20 stores, are expected
> to contribute an additional £35-£40 million of EBITDA to the Group upon stabilisation._
> _We have entered the new financial year with confidence, and on the back of solid
> trading in the first quarter to date. Safestore is now at an inflection point,
> where the significant investment we have made in MLA expansion is driving revenue
> growth and is set to translate into meaningful growth in earnings and long term
> value creation.”_

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