Lok'n Store Share Discussion Threads

[pireric] 02/4/2020 07:43

Encouraging SAFE trading update again today. Snippets below. Again think this combines to mean that self-storage companies are a solid place to hide

"All our stores in the UK, Paris, Barcelona and the Netherlands are currently open or accessible but the reception areas are closed, the staffing and opening hours have been reduced and we have removed the provision of services that involve person-to-person contact. Access to our stores is largely automated and, in general, the premises have relatively low footfall. We are supporting our employees with alternative means of transport to work where public transport continues to be a challenge."

"Since the Company's AGM and update on 18 March 2020, the Group's key trading performance indicators continue to see a relatively limited impact with 4.92 million square feet of occupied space across the portfolio, a reduction of 0.8% since our first quarter ended on 31 January 2020. "

[pireric] 25/3/2020 09:53

Recovery lagging that (By a distance) of BYG and SAFE. See self storage companies as a relative safe haven in this environment as many are remaining at least part open, plus continue to collect revenues in the interim. Plus have the NAV backstop in the background. LOK's discount to NAV is significant at the moment after this pull lower despite substantial debt facilities and modest LTV gearing.

[pireric] 23/3/2020 15:39

Sales director bought £10k

[grabster] 10/3/2020 16:43

Been and asked. Same customer has booked two more units and reserved a sixth one. They were loading their fourth unit (from two smart RangeRovers) when I was there. Looked like mainly boxes of canned foods plus household chemicals.

[grabster] 10/3/2020 10:33

When collecting my car from garage yesterday, I asked how the newly opened storage facility opposite was looking (it isn't a LOK one). "Quite busy" was response, "Three of the units have been taken by someone stockpiling for the virus scare, and those are now full."

Can't help wondering if the same kind of activity might be raising storage demand elsewhere?

I don't know if the someone is an individual looking to exploit demand by selling at raised prices, or a shop owner. The units are all 160 sq.ft. containers at £99 pcm, which must appeal as affordable short-term warehousing for these kinds of situation.

I have to visit the garage again today so will take a further look.

[grabster] 10/2/2020 16:07

That's 16% above their previous target -

[grabster] 10/2/2020 10:07

80% up on a year ago - but enough in today's update to suggest it should continue rising, in my opinion. Even if it only climbs a quarter of that amount by this time next year I'll be happy.

[bill hickman] 11/1/2020 08:54

At it again Buystock you are a desperate ramper.

[makinbuks] 08/1/2020 12:11

Safestore posted a positive update this week and trades at a 76% premium. The implication is its not being priced as a REIT

[mw8156] 26/11/2019 21:30

they're cheap relative to either Big Yellow or Safestore in terms of premium over NAV but may be all 3 are too expensive?
end game might be a take out of Lok by Big Yellow?

[topvest] 25/11/2019 12:34

Aiming for 30% cash now. 27.2% and counting.

[topvest] 25/11/2019 12:33

Well I'm out of my last few. About a 6-bagger since 2012 but the premium to book value is getting a tad silly and the yield is only 2%. What a great property company this has been....happy days!

[cheshire man] 17/11/2019 09:06

MIDAS SHARE TIPS UPDATE: Storage giant has growth plans all locked up
By Joanne Hart for The Mail on Sunday
Published: 01:56, 17 November 2019 | Updated: 01:56, 17 November 2019




Directors’ deals can be instructive. When senior management sell shares, that can ring alarm bells. When they buy, it suggests they have confidence in their company’s future.
Earlier this month, Charles Peal, a director at self-storage business Lok’nStore, bought almost 100,000 shares at £5.64 each, a purchase worth £550,000. At the beginning of this year, he forked out another £260,000 on Lok’nStore stock, when the price was £4.66.
Peal seems to be a smart operator. Lok’nStore shares closed at £6.45 last week so he has already benefited handsomely from his purchases. The share price advance is timely but also well deserved. Full year results to July 31 – released just before Peal’s latest purchase – showed a 10 per cent increase in revenues to £17 million, with profits up 11 per cent to £5 million and the dividend 9 per cent ahead at 12p.



Lok’nStore founder Andrew Jacobs seeks out sites in prominent positions and makes sure they are large and colourful so would-be users know where to find them


Brokers forecast further growth this year and beyond, with sales, profits and dividends all tipped to deliver robust gains. Lok’nStore has 34 stores but it has a pipeline of 14 more, well located in busy towns and cities across the UK. These are likely to prove popular. Households use self-storage when moving home, downsizing or even to keep stuff they cannot bear to throw away. Businesses use self-storage too, particularly smaller firms looking for somewhere convenient to store stock.

Lok’nStore founder Andrew Jacobs seeks out sites in prominent positions and makes sure they are large and colourful so would-be users know where to find them.
Occupancy rates are rising and the company increasingly builds its own properties so they are ideally suited to customers’ needs

Midas verdict: Midas verdict: Midas recommended Lok’nStore in 2015, when the shares were £3.07. They have more than doubled since then but there should be more gains to come. Peal has been a director since 2007 and clearly believes the stock has potential. Jacobs founded the business in 1995 and still owns 18 per cent of the shares. Brokers believe they should rise to nearly £7. A strong hold.

[galeforce1] 06/11/2019 12:44

kreature - Safestore and Big Yellow both trade at bigger premiums to NAV.

I can't see a good reason for LOK having a lower premium to NAV than these larger competitors.

[kreature] 06/11/2019 02:55

Isn’t the share price getting a bit frothy up here though?

[galeforce1] 05/11/2019 11:51

Kreature - you have to think about how much it would cost/ how long it would take / how difficult to would be / etc, to assemble LOK's portfolio from scratch.

The problems of slow planning permission decisions, very high land costs, shortage of good sites, etc. all conspire to create very high barriers to entry in this business.

It's taken the CEO Andrew Jacobs over 20 years to build LOK. And this is a guy who clearly knows what he's doing.

It's also a sector that's very likely to see consolidation. LOK is not the biggest operator of self-storage units in the UK. A bid could happen at some point.

For me, these things justify LOK's high rating.

[kreature] 04/11/2019 15:40

42m in loans?
69m liabilities ?
pe ration 44 ?

Whats different about this storage facility ?

[anley] 13/8/2019 10:25

Good results and share options at 600p per share = forecast price of shares over the next few years.

In my view the shares should be higher except the markets are all over the place so sit tight.

[anley] 10/7/2019 14:17

To BUY this business on a 10% premium is cheap..............V........you going out and putting a similar business together which has taken many years to do.

Cheap credit/cash for a similar business is available.

[makinbuks] 10/7/2019 11:45

Thanks for those thoughts. I clearly agree that we are cheap on this NAV metric compared to peers. The recent price movement may be related to bid rumours but above NAV this become less likely in my view and we're getting close to a 10% premium now

[anley] 09/7/2019 15:46

It has taken a good number of years to get to where the business finds itself today.
Maybe the BoD want an offer and if so then opening bids at 550p++.

[jockthescot] 08/7/2019 13:59

It's that latter point that I think's crucial Galeforce. LOK are cheap and would be a natural target to be bought IMO.