Safestore Holdings plc (AO) | Reduce | H1 2025/26 results: Guiding to a pick up in EPS growth in H2

Research evidence excerpt

Safestore Holdings plc (AO) | Reduce | H1 2025/26 results: Guiding to a pick up in EPS growth in H2

profile and growth prospects in an uncertain and weak macro earnings.

environment. A better trend in Safestore's occupancy relative to GDP growth

Catalysts compared to history could lead to stronger occupancy trends.

Sub-trend economic growth weighs on LFL store revenue A lower level of market interest rates than currently implied by

growth. money markets could positively impact Safestore's cost of

Financial impact from new store openings is slower than capital and earnings.

anticipated.

Financial gearing limits flexibility to fund further growth.

Key data charts

Price performance Revenue breakdown by division Asset breakdown by division

SWOT analysis

Strengths Weaknesses

Focus on operating platform increases options for portfolio growth. A high proportion of non-purpose-built stores may hinder performance.

Focus on more than one country increases investment options. Focus on different countries introduces greater complexity.

Focus on customers drives higher levels of non-rental income. Increases in financial gearing may reduce potential for investment.

Management has lots of experience of operating self-storage stores.

Opportunities Threats

Awareness of self-storage product is still relatively low in Europe. Lower-cost models create significant competition on price.

Reducing room sizes within its stores can drive higher rental rates. A weak macro environment extends the lease-up period for developments.

Smaller house sizes lead to greater need for remote storage space. UK self-storage market is closer to maturity than generally accepted.

Expanding in particularly immature continental European markets. Younger people have less interest in possessions and thus storage.