Safestore Share Discussion Threads

[volvo] 28/9/2021 17:28

Massive profit taking here since the 3rd quarter update...don't blame them, but all being met with buyers, great entry point, topped up today. Wait 4-5 weeks and the stellar trading statement

[eggbaconandbubble] 23/9/2021 08:47

All good points and of couse debatable.

I see no real worries with SAFE. Its a rock solid company by all accounts. I will now just stay on the sidelines going forward and be keeping watch!

[netcurtains] 23/9/2021 08:05

eggbaconandbubble:
All your points are salient however, due to brexit, business needs more storage - Just In Time no longer works. I suspect many small businesses for the next few years will need more space in storage companies.

Then we have the housing market. Every year more and more boomers retire. This is going to accelerate for the next few years. Downsizing often requires storage. This is a growing market.

I think the storage market is no where near peaking. The great early growth has given early investors a nose bleed but that will allow others to come in and catch the big boom.

Good luck everyone.

[eggbaconandbubble] 23/9/2021 07:54

Ok. Your points:-
1. I accept that but the opportunities will be very short lived.
2. Again they are getting close to theoretical max. capacity in most areas.
3. I agree. These are almost certainly the areas for growth.

AIMOO of course. I just get the feeling from a share price /investment point of view the good run up of recent may now tail off for sometime. As demonstrated by the high pe. ratio and while the share price increase cools the divi. yield is only modest.

[18bt] 23/9/2021 07:31

1. Land is expensive, but they have been astute in picking up new sites and buying underperfroming smaller competitors
2. They can still increase occupancy of existing stores, especially the newer ones
3. The have entered into JVs in Belgium and Spain which are underserved, so a lot of room to grow. Eventually, they can take full ownership as well as the management contract.

[eggbaconandbubble] 23/9/2021 05:39

How can SAFE continue achieving growth when land in the correct places is scarce. Growth by price increase can only last so long!

[volvo] 22/9/2021 12:41

Its all about growth.

From the TS 7th September 2021.

Adjusted Diluted EPRA Earnings per Share (7) for 2020/21 of in a range of 39.5p to 40p which would represent an increase of c.31% to 32.5% compared to the prior year."

[eggbaconandbubble] 22/9/2021 10:45

All your favourable comments taken on board. Thanks!

However we are looking at a company with a PE >30 and a yield < 2.5%

[volvo] 22/9/2021 10:06

Trotsky, just the normal TS profit taking, v good entry point now.....been stocking up below 1100p

Everything points to a return above 1200p short term.



Troy’s Brooke adds Safestore for income

14th Septeber 2021

Troy’s Francis Brooke has been ‘drawn to the self-storage sector’ where he believes tight supply will benefit Safestore (SAFE), a new buy for his Trojan Income fund.

The manager of the £2.7bn fund said ‘supply is tight and looks set to remain so’ in the self-storage market.

‘It is notable how difficult it is, even incumbents to find new space, particularly in desirable and densely populated, urban locations,’ he said.

‘Such strong demand and tight supply are evidenced by the 90% occupancy levels currently enjoyed [by Safestore].’

Brooke said these dynamics allow the group to ‘gently raise prices’ across its estate, resulting in ‘good like-for-like revenue growth’.

‘A further feature of self-storage is the fact that, once operational, a site requires very little incremental operating cost or capital expenditure. This is something that does not hold true for office or retail space,’ he said.

Shares in Safestore closed flat at £11.09 on Monday, having risen more than 40% year to date.

(MT Newswires) -- Liberum Capital on Tuesday lifted Safestore's (SAFE.L) price target to 13 pounds sterling ($17.90) from 12.25 pounds and kept its buy rating.

[thetrotsky] 08/9/2021 14:36

Sometimes you have to wonder why companies bother to strive to increase sales and profits! Markets are never happy.

[johnwig] 07/9/2021 08:41

A very pleasing result for this super business. That graph!

[18bt] 07/9/2021 07:45

Spectacular... and plenty more to come from new developments. IMHO the market is underestimating the medium term growth rate as well as the short term.

[volvo] 07/9/2021 07:10

Super strong trading update.

In August 2021, the first month of the fourth quarter, the momentum continued with total revenue growth of 27.5% driven by strong rate growth.

Profits upgrade.....

Full year earnings guidance further revised upwards.

We now anticipate that the business should deliver Adjusted Diluted EPRA Earnings per Share (7) for 2020/21 of in a range of 39.5p to 40p which would represent an increase of c.31% to 32.5% compared to the prior year.

[volvo] 06/9/2021 19:10

Magic figures tomorrow are 38p to 39p eps.

Recon we are in the forties, which means a significant beat.

Good luck all holders but recon an up day tommorrow

[netcurtains] 01/9/2021 14:37

Thanks, 18BT. I got my info from Wall Street Journal site. It has this very large 'unusual expense' for every year going back to 2016. I knew you lot would have the sensible answer.

Cheers Net!

[18bt] 01/9/2021 14:29

Netcurtains - just read the financial review in the Report and Acounts - it's all in there. I'm not sure where you get the term "unusual" from. They use underlying and reconcile it back to the statutory numbers.

[netcurtains] 01/9/2021 08:28

Thanks VOLVO. I'm still unsure about what "unusual expenses" mean but I guess experts here probably know and its all OK

[volvo] 01/9/2021 08:19

I bought in here 14 days ago 1089p following the trading statement announcement.

Its a bullish move in my experience to produce a rns for the trading statement, whilst stating previously in the June half year results that the numbers will be at 'least' at the top end of expectations.

Expecting a beat next Tuesday

[netcurtains] 01/9/2021 08:12

I really like the business model.
Storage is the critical path for:
a) house moving
b) Brexit retail hoarding (need higher stock levels in uncertainty)
c) covi19 mothballing.

I can see lots of growth in this sector. Storage, post brexit, is on the critical path as are mini "dark stores" and the like.

The pe ratio is only about 13

[netcurtains] 01/9/2021 08:02

Thanks 18BT, last thing... What about the continuous "unusual" expenses?
What are they?

[18bt] 01/9/2021 07:53

revenue is broadly from renting out units. Profit can also include gains on property sales and revaluations. So profit can exceeed revenue.

[netcurtains] 31/8/2021 20:02

I'm trying to work out how it makes its profit.
How come its profit is often bigger than its turnover.
How does that work?
It does not make sense.
Could someone explain?

Then each year it has massive "Unusual Expenses" what are they.

I see a couple of holders have marked this post down. To reassure them,
I'm not being negative, I just want to know how the business works?

Sorry if its really obvious to insiders, I just dont understand the how profits
can be bigger than turnover.



Anyone who helps is a nice person.
Anyone who marks down is not.

Cheers John

[johnwig] 09/7/2021 09:31

It's an excellent company in what is surely a growing sector of endeavour as we all accumulate lots of "things" for which we do not have the capacity to store. I have seen how it works in the USA: it might well be reaching saturation there. (Some of us have seen the cheapo TV series on the subject.) In the UK and Europe, however, there is still enormous opportunity to expand for those who know what they're doing, even if we don't have the USA's availability of cheap fringe-of-town land.

It's one of my best performing shares.

[arja] 09/7/2021 09:03

sorry i have not followed this stock as it has a lovely looking chart and NOR situation .

[18bt] 17/6/2021 08:10

After the last update, I wondered how much more was in the tank - the answer is a bit yet. It looks like full year expectations will have to be nudged up a touch further and the divi increase is more than expected. Not surprised at opening slight fall as the market always wants fall, but this company is in a sweet spot with plenty of growth opportunities. Tipped by the IC a couple of weeks ago.