Lok'n Store Share Discussion Threads

[wan] 27/4/2006 08:06

We have another market maker today making a total of 7, it will be interesting to see if they initiate any coverage/recommendations?

[kievtrader] 25/4/2006 16:47

no pr hype following results leads me to believe that somethings are afoot and there will be pr later perhaps with kingston announcment. good volume over 200k already. kt

[wan] 25/4/2006 07:16

Andrew Jacobs, chief executive, said the group would maintain its average expansion rate of two stores a year, and "possibly accelerate and grow slightly faster".

With a stable cash flow and expectations of seeing revenues from 'two' property developments -

Full article -

[wan] 24/4/2006 12:43

Pgetty...To cover my earlier comment and suggestion that Kingston might already be sold -

Context for S106 Agreements

A Section 106 Agreement is an agreement entered into under section 106
of the Town & Country Planning Act 1990 (as inserted into the 1990 Act
by section 12(1) of the Planning & Compensation Act 1991). Section 12(1)
of the 1991 Act also inserted in the 1990 Act sections 106A (modification
and discharge of Section 106 Agreements) and 106B (appeal against a
refusal to modify/discharge a Section 106 Agreement). A S106 agreement
creates planning obligations to be performed as a consequence of the grant
of planning permission. Signatories to S106 agreements covering
affordable housing are usually the local planning authority and the
'developer' of the scheme.

In some circumstances, usually associated with an outline planning application, there will be no developer involved and it is the landowner who is the other signatory along with the local authority. However, I believe the planning permission for kingston is detailed pp and LOk are not the developer?

Regards, wan

[pgetty] 24/4/2006 09:11

Thanks for your comments wan. Looks like time to buy more sub 180p!

[wan] 24/4/2006 08:13

Another point of interest -

"Trading is following its usual pattern with a strong spring pick-up. Annualised revenues have risen to #9.25 million at time of writing."

The full year ends 31st July and 'already' revenues are up circa 20%, Turnover last F/Y was £7.77 million, which was up 17.6%.

[wan] 24/4/2006 08:02

Expect growth to be a predominant theme going forwards.

[wan] 24/4/2006 07:32

V/Briefly...Another 'solid' set of results.

Points of interest -

"We have previously reported receiving planning permission for a high density
residential development at our Kingston site. This was subject to the signing of the Section 106 Agreement with the local authority which stipulates the
developers financial and other obligations to the local authority. I am
delighted to report that this agreement has now been signed. This enhances the
Group's ability to realise the extra value embedded in this site." This is important as it appears to mean that Kingston is sold, so await the deatils.

"In Reading we have now received a planning permission for a new store on our
land immediately across the road from our existing Store. This will enable us,
in due course, to develop a prominent new self-storage centre providing
approximately 55,000 sq ft of storage space on the site, an increase of around
14,000 sq ft over the existing site." This is key, in that it addresses some of, if not the main original planning concern, re the reduction of employment, and most certainly free's up the existiing land for development. I remain of the opinion that Reading is a case of when and not if, watch this space!

NB....Lok 'already' own the land opposite the Reading store.

[kievtrader] 14/4/2006 07:07

one week to go till numbers and kingston announcement. Looking good.

KT

[wan] 12/4/2006 07:43

KT...My earlier research, post 643, has further strengthened my view on self-storage in the UK i.e. good long term growth can be expected, followed by dividends, with perhaps a few fireworks chucked in a long the way.

Regards, wan

[kievtrader] 11/4/2006 16:16

charts lookinging good. Suspect there will be move up next week ahead of the results and announcemnt on kingston etc. Would not surprise me if there is comment on potential bid etc-consolidation in press etc after results. Looking good.

KT

[wan] 10/4/2006 09:04

To add to the above - Branding will play its part too, and on its own branding/recognition could be another important factor in consolidation, and arguably LOK's branding is already up with the best.

[wan] 10/4/2006 07:22

The relatively green U.K. market is growing fast and already generating noteworthy amounts of cash. It is showing every sign that it will follow the United States in terms of growth, profitability and continued consolidation. An interesting and exciting few years lie ahead for the industry and its financiers as U.K. self-storage grows from adolescence to adulthood.

Andrew Jacobs is chief executive of Lok'nStore Group PLC, one of two self-storage companies quoted on the London Stock Exchange.

Full story -



Research from reports about the self-storage market place, collated by ResearchWorldwide.com, shows that in the United Kingdom. The Self-Storage Association reports a 35% annual growth rate in demand for self-storage with mature facilities operating on an average 90% occupancy rate. Conversion from rental units to sale of units occurs at a 46% conversion rate indicating the more permanent need for self storage space in the UK.



Here is one reason that I think that the UK has a better chance than not of mimicking, if not surpassing US growth -


Population density in the UK compared to the US -

US is 30 persons per sq Km and the UK 246 persons per sq Km. Obviously the US is a vast land mass and distorts this figure somewhat, so I decided to take a look at the more local level. 84 per cent of the population live in England, nine per cent in Scotland, five per cent in Wales and three per cent in Northern Ireland. Over 90 per cent of the British population live in cities. Subsequently England is one of the most densely populated countries in the world. It has nearly twice the population density of Germany, 4 times that of France and 12 times that of the USA. England has a population density of 383 per sq Km.

As a comparison here is the US population by state -



So only 2 states have a higher population density, New Jersey and Rhode Island, at 483 and 387 per sq Km respectively!

It is then also worth taking into account the fact that there is now a trend to build more smaller homes, this is supported by the government and indeed 'planning policy' i.e. affordable homes, with some companies switching 'particular focus' to smaller homes. So over the coming years we will see the percentage for smaller homes built rise, perhaps substantially. A fact that I believe will further support the self-storage sector.

With a consensus view that further consolidation looks inevitable in the UK self-storage sector, which is being driven by the shortage of suitable property as much as market share grab, and with SafeStore rumoured/expected to come back to the market, then the sector indeed looks set for an interesting and exciting few years.

[kievtrader] 07/4/2006 07:13

only 2 weeks to go till results and hopefully annoncement on kingston.

[wan] 06/4/2006 08:25

Back to those shares disposed by NA. It would appear that the price was around 174p, news of the NA disposal has shaken out a few weak holders, with LOK shares not always available in the quatities one wants, time will tell if those loose shares get soaked up too?

[wan] 05/4/2006 12:18

I note North Atlantic has reduced, as planned, and it will be interesting to see if Mercury are continuing their stake building. It is therefore likely we could see a counter announcement, if not, one thing is obvious, that the shares (640k) found a home ie good demand at these levels, because they did not appear to come onto the open market, otherwise we would have seen a large pull back. Any pull back of note could be an opportunity, on what must surely be the eve of a deal conclusion on Kingston?

[kievtrader] 05/4/2006 08:31

Thnks wan

KT

[wan] 04/4/2006 13:55

KT...4 X 250k trades at 174p.

Regards, wan

[kievtrader] 04/4/2006 10:33

No did not spot this trade

KT

[wan] 04/4/2006 08:15

Anyone else note the late reported trades at the mid price yesterday totalling 1m?

[wan] 04/4/2006 07:16

And the home builders continue to deliver solid figures, 'especially' those targeting smaller (affordable) homes -

From today's Bellaways results announcement -

Number of homes sold six months to 31st January 2005 - 2,930
Number of homes sold six months to 31st January 2006 - 2,958

Of note - "OUR ORDER BOOK REMAINS EXTREMELY STRONG AT CIRCA #715 MILLION WITH OVER 92% OF THIS YEAR'S TARGET SECURED AND MORE THAN 1,500 HOMES OF NEXT YEAR'S PLANNED PRODUCTION RESERVED OR CONTRACTED".

[wan] 03/4/2006 07:19

The government recently finalised the details on what savers can include in their personal pension plans after it disappointed with the news that residential property would be excluded. It has now confirmed that residential property can be held in a Sipp through vehicles such as real-estate investment trusts (Reits), property unit trusts or through investors who team up to invest in a portfolio of residential properties through syndicates. It is therefore likely that property syndicates will become popular as they allow direct investment in residential property, of note is that these schemes can also borrow money on normal loan-to-value terms. Where as pensions are restricted to borrowing only 50 per cent of the value of net assets.

The rules stipulate that any syndicate will have to have at least £1m of assets and hold at least three separate residential properties. No single asset held within the vehicle can be worth 40 per cent or more of the total value of pension assets.

How does that affect Lok'n Store? Well apart from the fact that self-storage is a good fit for REIT's, LOK's planning permission at Kingston for 124 flats, and a new GP surgery of approximately 7,000 square feet (which I think on its own qualifies?) appears a prime candidate for investment from such syndicates or indeed REIT's, and eventually Reading could meet the same criteria too. Furthermore LOK's banking facility is secured on the existing self-storage portfolio, 'excluding' the Kingston and Reading properties, this ensures that the Group has full flexibility to maximise the value of any exit or realisation of these two redevelopment opportunities, and perhaps currently if nothing else, the intent. With the realisation of Kingston not that far away, it may give the market increased confidence with regard to obtaining permission at Reading?

Lok is not just an asset appeal, self-storage is a growth industry. Demand for self-storage is tied to several factors, including population growth (not contracting), rental household growth (not contracting), and household formation (not contracting). Also and perhaps in particular, in the UK the trend (backed by government) toward the development of smaller (affordable) homes will also add to the need for that extra if not 'essential' storage space, be it temporary or indeed permanent overspill etc. Then there is the business users, which currently make up circa 50% of LOK's revenues. Among businesses, the No. 1 reason is to store inventory, basically using self-storage space as a 'very flexible' warehouse. Storing excess supplies, furniture, and equipment ranks second among business users, followed closely by business record storage. So LOK has a good mix, that includes property assets, being very well placed in a growth market and a nice customer/revenue diversification.

[wan] 29/3/2006 07:19

I note house builders continue to report good sales and order books etc all 'grist to the mill' in self-storage, and property companies start to confirm the intention to convert to REIT's.

[wan] 27/3/2006 08:11

LOK still off the recent budget/property radar screen. It might have to be the Kingston announcement that focuses the attention on LOK's property portfolio?

[kievtrader] 26/3/2006 09:26

Nice step formation to the charts. Next leg up should be soon