Stor-Age Property REIT has opened a window onto the self-storage industry in South Africa, after reporting its maiden interim results on Tuesday.<\/p>\n
For the six months ended September 2016, the company which provides self-storage facilities to individuals and small businesses, reported property revenue of R78.5 million and an operating profit of R56.2 million.<\/p>\n
Rental income amounted to R75.57 million, while the group delivered a gross interim dividend of 43.04 cents per share for the six months period.<\/p>\n
Stor-Age is the first and only self storage REIT listed on an emerging market exchange, having done so a year ago, in November 2015.<\/p>\n
The company said that occupancies increased significantly compared to both the prior comparative period and the previous year end, with a double digit rise in the average rental rate.<\/p>\n
Stor-Age said its new flagship Sunninghill property was opened in September 2016 and similar new developments at Gillooly’s Interchange (Essexwold, Johannesburg) and Berea (Durban) are nearing completion.<\/p>\n
The group’s portfolio currently comprises 34 self storage properties across South Africa. It owns and operates 24 of these, representing 182 909 m2 GLA valued at R1.4 billion.<\/p>\n
The balance of the portfolio makes up the unlisted managed portfolio on which Stor-Age receives property and asset management fees and over which it has a pre-emptive first right of acquisition.<\/p>\n
Collectively Stor-Age said it manages over 14,500 individual leases, up from around 11,000 when it listed.<\/p>\n
Stor-Age said that occupancies increased by 6 915 m2 and 1 178 m2 compared to 30 September 2015 and 31 March 2016 respectively, to close the period at 156 879 m2.<\/p>\n
This, it said, reflects an 85.8% occupancy rate across its listing portfolio.<\/p>\n
The average rental rate grew by 10% to R79.9\/m2 compared to 30 September 2015 or 4.7% compared to the prior reporting period, Stor-Age said.<\/p>\n
A self storage unit is rented to a customer on a month-to-month basis with a minimum one month term. For all customers that moved out of the properties during the period the average length of stay was 14 months.<\/p>\n
The average length of stay for existing customers was 21 months at period-end and for properties open more than five years, 24 months. “This reflects a loyal and ‘sticky’ customer base,” it said.<\/p>\n
Stor-Age said that 16% of its customers have been storing with the group for more than three years and a further 36% for between one and three years.<\/p>\n
The company announced on 22 September 2016, that it aims to acquire 100% of the shares in Storage RSA.<\/p>\n