Safestore Share Discussion Threads

[martincoops] 03/7/2007 15:22

Would'nt be surprised to see some shorters close their positions before the results, would'nt do their wealth any good to hold for them imho

[martincoops] 03/7/2007 14:35

Well I'm in, not for too many but feel that this is the bottom and from their trading statement there is no bad news around, just to remind a few of you. Just hope I called it right.

Safestore Holdings plc, the UK's number one and Europe's number two self storage
provider, is pleased to report on its trading progress for the six months ended
30 April 2007 prior to entering its close period.

Financial Highlights:

*A 15.1% increase in revenue during the period to #34.7m (like-for-like
stores increase of 13.7% to #34.0m)
*An increase of 6.3% on the closing occupancy for the period to circa 2.8m
sq ft (like-for-like stores increase of 4.2% to circa 2.7m sq ft)
*At the period end, the Group portfolio of 99 stores comprised a maximum
lettable area of approximately 4.1 million sq ft with around 3.75 million sq
ft currently built out
*An increase of 8.0% to #20.95 in average annual rent per sq ft
(like-for-like stores increase of 8.3% to #21.14)

Property Portfolio

During the first half of the financial year, Safestore has further expanded its
property portfolio and has successfully added an additional 112,000 sq ft of
self storage space. This has been delivered through the successful opening of a
new facility in Slough, a satellite store in Burnley and extending the store at
Staples Corner. These stores were opened prior to the Company's IPO in March
2007. The initial trading of these new stores has been encouraging.

Since its IPO, Safestore has:
*Finalised the lease of a satellite store in Stevenage which is due to
open in the third quarter of the financial year and will provide an
additional 19,500 sq ft of storage to the existing store.
*Successfully received planning approval for an additional 17,000 sq ft
extension at the Liverpool store and a further 30,000 sq ft at the Clichy
facility in Paris.
*Contracted all 13 expansion stores, details of which were outlined during
the IPO. Planning approval has been gained on twelve of these stores.
*Extended the lease on the Stoke Newington facility from two to twenty
years. We expect the extension of the lease to positively impact the
property valuation of this site.


Steve Williams, Chief Executive of Safestore, said:

"We have made solid progress towards delivering upon the strategy outlined at
the time of the IPO. In the short time since then, we have added 66,500 sq ft to
the portfolio, secured valuable new leasehold extensions and have planning
approvals for 12 of the 13 expansion stores. Our objective is to continue to add
to our property portfolio so as to create additional lettable space and a strong
stream of store revenues. We are encouraged by our current trading and expect
the Group's full year performance to be in line with the Board's expectations."


Safestore will report its interim results on 10 July 2007.

[sam66] 02/7/2007 10:48

Hybrasil Thank you for the interesting post I am also short here have previously been long in both BYG and LOK but the sector appears to be struggling ,

Results out on the 10th july !

Sam

[hybrasil] 01/7/2007 19:32

I have finally sat down and read the safestore admission document and the accounts for the ye 31.10.06.
I have come to the view that even at £1.90 the company is totally overvalued.

What did I look at?

First and foremost net assets. After all this is only a property company with no barriers to entry. Yes size brings its trading advantages but that is all.

What are these assets. Well in 2003 they bought the old safestore for £40 million (roughly at NAV if my memory is correct indeed it may have been slightly less than nav). In June 2004 they spent £129 million on the old Mentmore. This time they got net assets of £110 million. This was 18% more than NAV.
This company has net assets of £191 million.
I accept the mentmore deal was a good one but even if you add 25% to NAV you only get a value of £238million . On that basis the shares are worth £1.27.
Secondly I looked at the trading position. It is improving and it is a growth industry but if you take out property revaluations (and like shares property prices go up and yes down) its not doing particularily well. We will know better following the next results (due shortly) but based on the last figures they were actually loosing money before the property revaluation.

The interesting thing about the admission document is that you get to see the real cost of their loan. They are paying 2% above libor. (I run a property company and never pay more than 1 over.)They also pay fees annually of .3%. Thta costs them in fees alone £836,000.00. Thats a lot of storage space. On the basis of their average psqfoot earnings of £15.00.it amounts to 55,770 sq. feet!! Their interest bill in 2006 was £28 million. Rates have gone up since.

Anyone else have any views ? I think I will go for a serious short

[kluk069] 30/6/2007 13:35

hybrasil

byg may operate a different model but would be interested to hear whether your sector knowledge provides any tangible defence to similar shorting over there

[sam66] 29/6/2007 16:49

Yes strange end to the day 3 buys at 16:28 totalling 162,000 followed with sells of 225,000 at auction after the close, surprised to be up with approx 743,000 sells against 355,000 buys I think we will open lower Monday

[jrjr99] 29/6/2007 16:23

interesting movement

[jrjr99] 26/6/2007 11:52

not here to ramp/de-ramp..just telling what I heard

come back next week and we will see

[liquidkid] 26/6/2007 11:50

only in your head at the moment

[jrjr99] 26/6/2007 11:32

heard a rumour about a bid..(btw i do not have a position)

[nhojrellek] 23/6/2007 22:46

thanks guys

[amotoor] 21/6/2007 00:16

Went to one of their store, staff came across very desperate for the business and Prices are more expensive than Competition, so must be loosing business to others and I am short too. Lets see what they say in Interim figures.

[liquidkid] 20/6/2007 11:30

Big chunks dropping off this today in the open market

[hybrasil] 20/6/2007 08:35

On the 21st May I suggested a shareprice of £1.70. Having had a good look at the companies accounts that is way to much - somewhere closer to £1.20p

[liquidkid] 18/6/2007 16:18

Talking of valuation - Shurgard IPO might be capitalised at 1bn EUR. That's £670mn for 100 sheds.

13/06 U.S.-based storage company Public Storage (PSA) is planning to spin off its European subsidiary, Shurgard Self Storage Europe Ltd., it said in a press statement. The company plans to offer about 43.6 million shares priced between EUR12.50 and EUR15 starting June 21. Public Storage expects to raise EUR600 million through the sale.
Shurgard Self Storage will list on Euronext Brussels starting June 26 and will
trade under the ticker symbol SHU. Merrill Lynch & Co. Inc. (MER), Morgan Stanley (MS) and Credit Suisse Group (CS) are advising the company. In Belgium, Fortis Bank NV (FORSY) and KBC Group NV (KBC.BT) are involved in the deal. Of the money raised, about EUR400 million will be used to reduce Public
Storage's stake in the company, with EUR124 earmarked to repay debts due to
the parent company. After the offering, Public Storage will own approximately
38% of Shurgard Self Storage Europe, while 48% of shares will be publicly held.
Shurgard Self Storage Europe owns 102 storage centers in Europe, with 16 new
site under development. It also is involved in joint ventures for 65 storage centers. The company has a 17% share of the self-storage market in Europe, including its joint ventures. It has operations in seven European countries and has 87,000 customers. Its 812,000 square meters of storage space are usually rented on a monthly basis in seven-square-meter increments.

[hybrasil] 18/6/2007 15:23

NHO
Are you watching.
Still loads to fall

[liquidkid] 18/6/2007 14:22

Maybe the company could do with a rebrand to revive its flagging shareprice due to adverse connotations with its "crooked lock" symbol - just like a crooked "e"

[hybrasil] 07/6/2007 10:48

Its now fallen over 10% since I suggested it was a short.

[hybrasil] 31/5/2007 21:15

sorry NHO
Just picked up your post.
To explain it I called it previously an hotel for things. That is what this business is. I spent a lot of time researching it some years ago.
It is simply quite amazing the amount of pure rubbish that people keep and happily for this industry store.
How you value is up to you. I value it purely on a property play. Its dangerous to compare it to Big Yellow as the latter operate a different model.
At the moment and of course I could be completely wrong I think property is overpriced. I bought into the old company at a discount to NAV and as far as I remember this is now at a slight premium.
However I like the business.
Working in it is a different matter.
I'll keep following this thread. Let me know when you buy in again if you do.

[nhojrellek] 23/5/2007 14:20

hybrasil,

what measure is a good valuation basis...i mean you mention market value as a multiple of turnover (presumably as i was talking about the business aspect of safestore i.e. its storage business, rather than the property co side of the company). Is that the basis you use when you are talking about £1.70.

Or should i just compare to peers i.e. big yellow etc.

Thanks for the help mate.

[hybrasil] 22/5/2007 21:59

nho
probably a wise decision (and if I am right it definetely is). Dont be disheartened . Its all part of the learning process. There will be money to be made here but not at this price.

[vassily] 22/5/2007 17:17

No pro, just can't see why SAFE share price should be this high when compared against peers (that is, other storage companies). This has been mentioned before by others. DYOR.

[nhojrellek] 22/5/2007 16:42

Sold out today - you guys are pros, im just learning the ropes!

[vassily] 22/5/2007 16:22

hb:
I'm looking forward to it.

[hybrasil] 22/5/2007 15:33

My £1.70 isnt looking too far away!