Lok'n Store Share Discussion Threads

[makinbuks] 21/1/2022 16:48

Consolidation in the sector has often been muted but nothing ever happens. LOK seems obvious because it trades at a discount to rivals. I think its probably still cheaper to grow organically than to buy out rivals. Also not clear what value to ascribe to the intangibles, the name the logo the brightly, coloured buildings etc. Is that part of what you buy and delivers value or do you just want the space?

[george stobart] 21/1/2022 13:15

LOK likely takeover target

[makinbuks] 24/11/2021 18:38

And that's another thing I've heard many times down the years and fortunately it has never materialised. I really hope they carry on under their own steam and achieve a re-rating without sharing the potential with anyone else

[makinbuks] 24/11/2021 11:16

Ive done that a few times and vowed never to do so again. Been with them for 10 years + and have only ever lost out through top slicing. Hindsight always a great thing

[jockthescot75] 24/11/2021 09:15

I've top sliced a few this morning, but still retain a core holding. It's a great share, but perhaps has just got a bit ahead of itself here, despite the great results!

[makinbuks] 02/11/2021 17:15

Yep you don't need much insight to write that but I fully agree

[jeff h] 02/11/2021 11:02

Peel Hunt upgrades Lok’nStore after ‘stellar’ results

Peel Hunt has upgraded self-storage provider Lok’nStore (LOK) following a ‘stellar performance’ and a change to its dividend policy.

Analyst Sebastian Isola upgraded his recommendation from ‘add’ to ‘buy’ and increased the target price from 780p to 950p on the stock, which closed up 2.6%, or 22p, at 857p on Monday.

The company delivered an ‘excellent’ set of full-year results, with net asset value up 32% and dividends up 15%, said Isola.

‘This represents Lok’nStore’s 10th consecutive year of dividend increases and a step-change in the dividend policy as the company looks to accelerate the dividend growth,’ he said.

‘The pipeline remains extensive with the potential to add 38% more trading space over the next three years and with the balance sheet in excellent shape the company has ample headroom to deliver this.’

[jeff h] 01/11/2021 13:01

finnCap upgrades its target price from 986p to 1245p, increases 31/7/22 full year forecast by 14%, notes the dividend now being increased by 2p steps as against the previous 1p increases.

[makinbuks] 01/11/2021 11:42

It is rare for a company to have absolutely ever number looking good at the same time. Strategy clear and delivering faultlessly. Particularly impressed with the increase in NAV but will have to look carefully at what drives that

[santangello] 01/11/2021 08:32

Outstanding......

[mw8156] 01/11/2021 08:22

great results and confident outlook.

[santangello] 12/10/2021 13:38

Just driven past the Warrington development.....very impressive and very imposing building, progressing nicely.

As previously stated, it is in a fabulous position, getting heavy passing traffic on the main (A49) arterial route into Warrington town centre.

As another benefit, it is situated across from a large Tesco and Warrington Wolves Stadium.

[santangello] 07/10/2021 11:50

Always nice to see an Institution doubling its holdings.

[santangello] 08/9/2021 14:21

The £8.00 offer now breached...next leg forming after a pause to catch it's breath ?

[davr0s] 14/8/2021 18:28

I hope not (the tip that is)

[santangello] 13/8/2021 14:21

.....nice buys arriving....tipped somewhere maybe ?

[makinbuks] 11/8/2021 18:03

Spot on Jeff, could be the new normal

[jeff h] 11/8/2021 13:41

I think there is a perception that the occupancy rate increase may prove to be only temporary, we shall have to wait and see though I do recall reading that often storage is taken with a view for it to be on a short term basis but often it becomes long term.

[santangello] 10/8/2021 13:32

I concur with you Jeff my good friend.If we took a Peel Hunt analyst/commentator out for lunch, he/she would almost certainly order something off the light menu followed by a diet drink of some description.I have added at 7.55 and 7.65 yesterday and await further news from the company with confidence.

[jeff h] 10/8/2021 09:53

The Times says Hold:-

"....Peel Hunt, the broker, increased its forecast for revenue growth this year from 15 per cent to 21 per cent and raised its NAV forecast by 5 per cent to 632p a share, to reflect increased occupancy.

The shares trade at a 23 per cent premium to Peel Hunt’s forecast net asset value at the end of July, which leaves good growth prospects looking priced in for now...."

Personally I am a bit more bullish and had a small top up at 745p

[jeff h] 09/8/2021 10:42

Yes, excellent trading update guys and very pleasing to see the occupancy rate continuing to rise, as well as price increases (as I previously suggested) - prices up 8.7% at 31/7/21 compared to -2.6% as at 31/1/21. The forthcoming results and outlook with price and occupancy increases as well as the additional new stores looks very strong.

finnCapp say:-

In a positive year-end trading update, Lok’nStore has confirmed trading has remained strong with self-storage revenue up +20.9% on last year (ahead of our forecast of +13%). This represents a near doubling of the +11% H1 growth rate and was driven by a significant increase in occupancy (+26% monthly average and +35.3% at the period end) and stable prices (+0.4% monthly average and +8.7% at the period end). With high operational gearing a key feature of self-storage, this strong sales growth suggests upgrades to our P&L forecasts are coming and the July 2021 portfolio valuation will drive a material increase in NAV. We reiterate our view that there are three clear, strong share price catalysts:

(1) price rises, dropping quickly through to profits;
(2) valuation yield compression as self-storage as an asset class increasingly proves its attractions; and
(3) new store openings supporting long-term growth, with the current pipeline set to add 38% to space. We have updated our valuation model, which applies the same premium to historic NAV as peers, and have raised our target price from 883p to 986p (32% upside).

[makinbuks] 09/8/2021 09:16

Yes, just all so positive

[grabster] 09/8/2021 08:06

Lovely trading update this morning.

[santangello] 02/8/2021 12:03

Went to have a peep at the new Warrington development last week. Coming along very nicely, contractors told me of no major impediments to completing the build.Great location and very eye catching structure, which allows differing viewing angles as it is set on a high volume bend on the extremely busy A49.