Stor-Age Property REIT, a leading self-storage property fund, said trading in the 11 months to February 28 was resilient in South Africa and the UK, with growth in both occupancy and rental rates.
The 2023 financial year had seen a return to a more normalised cycle of trading in line with pre-pandemic seasonality trends, the group said in a trading update yesterday.
Demand levels remained robust with enquiry levels in line with expectation. “In both markets, we continue to carefully manage occupancy levels, rental rates and promotions to maximise revenue,” Stor-Age’s directors said.
In South Africa, occupancy increased by 17 100 square metres year-to-date (YTD) to finish at 90.5%
On a same store basis, the average rental rate increased 7.3% year-on-year (YoY), while average occupancy increased by 2.1% YoY. Occupancy in the same-store portfolio closed at 91.7%.
In the UK, occupancy increased by 3 200 square metres YTD. On a same store basis, the average rental rate increased by 8.3% YoY. Average occupancy increased by 1.0% YoY. Occupancy in the same-store portfolio closed at 86.7%, reflecting the additional capacity of 5 200m' from recent extensions.
New developments and major expansions were under way across 11 properties in South Africa and the UK (SA 5: UK 6), which were scheduled to bring on line an additional 55 000 square metres of space in the 2024 financial year.
Stor-Age's secured development pipeline in South Africa comprises 10 properties with an approximate R900 million development cost.
Stor-Age's secured development pipeline in the UK comprises five properties with an approximate development cost of 64 million pounds.
BUSINESS REPORT