Safestore Share Discussion Threads

[volvo] 01/10/2021 06:32

Trading statement next week according to this article?

[volvo] 30/9/2021 07:13

New directors with a European flavour....see where the new growth is planned, larger shareholders will like this move, see a return to 1200p plus quickly

[netcurtains] 30/9/2021 06:52

pireric:

Asset growth is 9% a year (on average over past 5 years)
Current assets (april 2021) £1857M
at 9% growth for another 5 years: £2907M

On top of that they have pre-tax profit growth on average about 30%
Currently profit is £198M

If you want to look at SAFE in terms of NAV then it also looks incredibly cheap.

[netcurtains] 29/9/2021 18:50

pireric: That cant really be the full answer.
Profit to market cap is a really good value guide.
So we really need to understand why the fall now

[pireric] 29/9/2021 17:08

I don't think most people think about these companies on a PE ratio, netcurtains. Much more so on a premium/discount to net asset value basis

Eric

[netcurtains] 29/9/2021 15:56

Do we know why all storage companies share prices are consistently falling, even on good days. This is big yellow and safestore.
One would have thought they would be booming.

Looking at the PE ratios it's not because they are overpriced (market cap to profits is low if anything).

[volvo] 28/9/2021 16:28

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 07:47

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 07:05

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 06:54

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 06:31

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 04:39

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 11:41

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 09:45

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 09:06

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 13:36

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

[johnwig] 07/9/2021 07:41

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

[18bt] 07/9/2021 06:45

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 06:10

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 18:10

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 13:37

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 13:29

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 07:28

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 07:19

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 07:12

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