Safestore Share Discussion Threads

[hybrasil] 22/5/2007 09:57

They have started to fall

[hybrasil] 21/5/2007 08:30

I reckon these will be great value at £1.70

[hybrasil] 18/5/2007 10:34

NHO
My point was in response to your suggestion that the business had a value.

As to british land (mainly commercial offices and retail) and Mountview (residential) you are comparing chalk with cheese. I have been to over 32 of the safestore units.
I have a holding in mountview which has gone up 50 % in 12 months. Equally I failed to hold on to my british land shares which I sold at £3.30.

One or other of us will be right.All I can tell you is that in my book this is grossly overvalued. I see they are hitting a new low today.

[nhojrellek] 17/5/2007 16:31

And so what..

British Land : market cap 7,500,000,000

turnover 900,000,000 (last interims x2 for FY)

Multiple is 8.3

Safe stores is 6.8 on your numbers.

Know its a really rough and ready calc. but your comment about rocket science, doesnt hold that much sway.

OK so BL is a FTSE 100, and thats why it has a higher multiple, but other prop cos have multiples similar to Safestores.


Look at Mountview Estates,

turnover 47.5m

market cap 308 m

multiple 6.5

aint too far off safestores..certainly not 1/2 of it as your suggesting should be a correct sector valuation multiple mate!

[nhojrellek] 17/5/2007 16:30

And so what..

British Land : market cap 7,500,000,000

turnover 900,000,000 (last interims x2 for FY)

Multiple is 8.3

Safe stores is 6.8 on your numbers.

Know its a really rough and ready calc. but your comment about rocket science, doesnt hold that much sway.

OK so BL is a FTSE 100, and thats why it has a higher multiple, but other prop cos have multiples similar to Safestores.


Look at Mountview Estates,

turnover 47.5m

market cap 308 m

multiple 6.5

aint too far off safestores..certainly not 1/2 of it as your suggesting should be the correct sector valuation multiple mate!

[hybrasil] 17/5/2007 09:30

NHO
If you are in this as a business have a look at the figures.

MCAP £430 million turnover £63million. Rocket scientist etc?

This is value at about half the current share price

[hybrasil] 16/5/2007 20:44

I'm afraid that is at all it is. It is probably best described as an hotel for things. It dropped to its lowest so far today but in my book it has a long way to fall.

[nhojrellek] 16/5/2007 15:51

if you believe it is essentially a prop co, and the storage business, has no value. in terms of potential growth rates in the storage industry , and backed up by the recent results, then this may not be a correct assumption.

[hybrasil] 16/5/2007 11:40

Actually I am very positive and made tons of loot out of the old safestore. I just think at the moment property as an asset class is at an unusual stage.
I bought into the old safestore at a massive discount to NAV.
Why should a property company trade at a premium.
I see simon cawkwell is shorting May.

I just think these are a short. No I do not have a position- yet.

[nhojrellek] 02/5/2007 12:45

Market leader, in a highly growing sector. Good brand name and recognition.

Look at the accounts - good revenue and profit growth yoy.

Scope for international expansion and takeover.

Have you lads got a little short sell on, or are you just negative people.

[vassily] 27/4/2007 08:26

Doesn't this company have a lot of debt?

[hybrasil] 27/4/2007 06:04

History often helps.
Go and look at the old safestore. Its share price fluctuated wildly. It was another Larry Lipman creation and had a lot of interesting shareholders including George Soros who I think actually lost money on it.
Property is not as some people believe a one way ticket.

[johnv] 27/4/2007 04:31

..or was it may09

[vassily] 27/4/2007 04:08

"fundamentals are strong": Explain.

[johnv] 26/4/2007 19:41

nhojrellek, your right the fundamentals are strong and the shares will lift, I estimate about may 08.

[nhojrellek] 26/4/2007 14:47

dont think you are as the fundamentals of the business are too strong. the current valuation isnt cheap, but the upside that'll start to come through will lift the shares.

[vassily] 25/4/2007 11:39

hybrasil:

You might be right.

LOK sites are valued at 80 pound a sq ft, which is one third the valuation of BYG.. and half that of Safestore (SAFE).

Tempus from the Times

[hybrasil] 25/4/2007 08:54

I actually think this is a great short

[silverfern] 24/4/2007 08:45

A lot of attention around this sector at the moment inc article in Sunday Times on Safestore. LOK results were very good yesterday.

[richandjanet] 11/4/2007 10:04

MomentumInvestor view this month.

Safestore - Newly listed self-storage company also under-valued

254p Epic code: SAFE
(Momentum Investor) In spite of the fact that its shares drifted to a slight discount on the first day of dealings, there is a good chance that new issue Safestore (FT sector: Real Estate) will perform well as the year progresses. Safestore, the largest provider of self-storage space in the UK and France, was introduced to the Full List by joint bookrunners Citigroup and Merrill Lynch on 9 March. The float allowed its largest shareholder, private equity firm Bridgepoint to realise a partial sale and also raised nearly £29m net new money for the company, to reduce net debt. Post admission, Bridgepoint will retain up to 41% with management holding 10.5%.

As some readers may recall, this is Safestore's second stint on the Stock Market, with the first (on AIM) proving somewhat ill-fated given the aggressively over-valued level at which it was priced in 1998 before being taken private five years later. However, the company has since been fattened up by Bridgepoint through four acquisitions including Mentmore for £129m, which added 47 stores and Access France, which added a further 10.

Today, Safestore has 79 stores in the UK and 19 in France, yielding current lettable space of 3.6m sq. ft. Trading has been very good and in its latest year to 31 October, turnover rose nearly 22% to £64m, with underlying EBITDA rising almost 24% to £33.4m. However, as we have noted in this month's main write-up, Lok 'n' Store (and Big Yellow previously), the greater gains have come from property re-valuations with Safestore enjoying cumulative valuation uplifts of a whopping £158m in the past two years.

Aside from ancillary income from selling contents insurance and storage accessories such as boxes, tape, bubble wrap and padlocks, the vast majority of sales comes from renting out space. Its storage centres, which are located adjacent to busy main roads and have rooms between 10 – 1,000 sq. ft., provide dry and secure areas protected by CCTV and burglar alarms. Around 75% of revenues comes from domestic customers who store belongings for reasons such as going through a divorce, moving or renovating their house or going abroad. The remaining 25% are business customers.

Safestore operates in a market that has grown at a massive 25% p.a. for the past ten years and given that it is still far smaller than the US, we expect this trend to continue for some time. Amidst this positive backdrop, Safestore intends to expand its portfolio by 10% a year and is fortunate to have a pipeline of 13 stores, of which nine already have planning. These, along with extensions to existing stores, means total lettable space will increase by another 1.1m sq. ft. to 4.7m even before further acquisitions are made.

Safestore, whose portfolio is currently valued at £475m, level pegging with its market value (also £475m), appears cheap in comparison to Big Yellow, which trades at an 84% premium to its NAV. That said, it does carry over £200m net debt while only 55% of its property is freehold / long leasehold, the rest being short leaseholds. Nevertheless, the shares are likely to do well in a sector which, fuelled by the introduction of REITs, is showing no signs of flagging. Buy.

[vassily] 10/4/2007 14:32

What evidence is their for high commercial property values in the UK? Is there a bubble?

Seems there is an issue :

Does this mean that BYG has been buying commercial property at high prices. What about Safestore?

[hybrasil] 10/4/2007 08:59

Had a big holding in the old safestore. However I believe we are due a kick down in property values and the time to buy these will be when that happens. The old safestores share price fluctuated wildly from its flotation to George Soros putting in money and then down to half its NAV.

[vassily] 08/4/2007 07:56

Mt:
Yes, how about some charts etc.

[kievtrader] 30/3/2007 14:20

Half page article in yesterday's Midas column in the financial section of the Mail on Sunday, here are some snippets:

Mentions the fact that "Big Yellow Group has 43 sites and is valued at £700m ... Safestore has 100 sites and valued at £450m ... whilst Lok is the minnow with 21 sites and a value of £62m."

Says that "in the US there is 5 sq ft of storage per person, whilst the UK currently has just 0.3 sq ft ... and suggests that the industry has potential for massive growth".

Says "Intriguingly property company Town Centre Properties has just amassed a 4.85% stake"

Final comment is "Midas verdict: Lok shares are trading at 237p, a significant discount of Big Yellow and Safestore on some measures. Supporters believe that there is substantial upside and bid action is a possibility. BUY."

[amotoor] 27/3/2007 23:32

Dave:- How cheaper do u think these are compare to Big Yellow? Look to me a big valuation difference between the two. Safestore suppose to be No1 in storage or have twice more stores than big yellow. Thx for bringing it to my attention.


Amo