Safestore Holdings plc (1K) | Reduce | No slowdown in development

Research evidence excerpt

Safestore Holdings plc (1K) | Reduce | No slowdown in development

Safestore Holdings plc Reduce | Target Price: 600p

Company description Management

Safestore is an FTSE 250 REIT and a leading UK self-storage landlord, with an Frederic Vecchioli, CEO

expanding share of its growing portfolio in metropolitan markets in six Simon Clinton, CFO

continental European countries. It uses a strong focus on its customer operations David Hearn, Non-Ex Chair

to maximise its revenues. This approach creates additional opportunities to grow

its platform quickly. Portfolio growth and store reconfigurations have reduced Key shareholders

Safestore's high exposure to business customers in its UK portfolio at its IPO in Free float 97.00% abrdn 5.53%

2007. Vanguard Group 5.13%

Capital Research 4.96%

Investment case Valuation methodology

Safestore's customer-focused operating model has helped it We base 90% of our TP on a ten-year DCF model. We believe this

grow its portfolio rapidly through a combination of acquisitions allows us to best capture our views of both the long-term

and developments. Self-storage landlords should benefit from growth and risk profiles of Safestore's business. Key in this

maturing markets, but not our preferred UK structural tailwinds. respect are: 1) both the operational and financial gearing, 2) the

Despite various users of self-storage, economic activity is key to operating platform and management's influence, and 3) long-

customer demand in our view. Developments are a key source of term property sub-sector prospects.

earnings growth (after an initial drag), but add further sensitivity We base 10% of our target price on a multiple of NAV.

to any macro weakness. Risks to our rating