Safestore lowers annual earnings outlook despite revenue growth

Safestore Holdings PLC on Thursday reported higher third-quarter revenue but lowered its earnings outlook, following a weaker performance from properties in Paris and lower occupancy across the group.

The London-based self-storage operator said revenue for the three months that ended July 31, Safestore's financial third quarter, was £62.2 million, up 4.4% from £59.6 million a year previous. The company cited contributions from both existing and new stores across its markets as primary drivers.

UK revenue was £42.9 million, up 1.9% from £42.1 million, while Paris revenue was £11.1 million, down 2.5% from £11.4 million. Expansion Markets revenue was £5.9 million, up 12% from £5.3 million.

Safestore said the Paris performance reflected the expected transfer of enquiries from new customers to its non-like-for-like stores, reduced occupancy in large units as its selective unit partitioning programme progresses, and a subdued economic backdrop.

Group closing occupancy fell marginally to 77.5% in the recent quarter from 78.3% a year before. On a like-for-like basis, closing occupancy slipped to 79.6% from 80.4%.

The average storage rate increased 2.3% to £30.66 during the quarter, while revenue per available square foot rose 2.1% to £28.06.

Looking ahead, Safestore said adjusted diluted EPRA earnings per share for financial 2026 are expected to be in the lower half of the current 39.6 pence to 42.4p range of market expectations. For financial 2025, adjusted diluted EPRA EPS was 40.3p.

Chief Executive Frederic Vecchioli said: "We have delivered further like-for-like growth in the UK and continued strong growth across our Expansion Markets this quarter." Despite the lower EPS guidance, Vecchioli stressed the attractiveness of the company's pipeline.

Given current trading conditions, however, Safestore said it is reviewing the phasing of its 2027-28 UK development pipeline in line with its disciplined capital allocation policy. The pipeline itself remains unchanged.

Vecchioli said the company was reviewing the phasing of the remaining store developments "in the context of the current macroeconomic and interest rate environment", while reiterating that financial 2026 openings remain unchanged.

Shares in Safestore were down 2.2% to 562.50 pence per share on Thursday morning in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.