Self-storage property fund, Stor-Age Property REIT, reported strong trading results for the four-month period ending January 2025, with notable growth in both occupancy and rental rates.

The company saw robust performance in South Africa during Q3 of FY25, ending 31 December 2024, continuing into January 2025. Occupancy in the owned portfolio rose by 5,400m² compared to September 2024, reaching 93.5% as of 31 January 2025.

Average rental rates increased by 7.8% year-on-year.

Despite a challenging economic environment, the UK portfolio showed resilience, it said. Although Q3 is traditionally the weakest trading quarter for the self-storage sector in the UK, year-to-date occupancy still increased by 1.5%, or 1,400m², with rental rates rising 4.1% year-on-year.

The company’s joint venture properties also performed well, with occupancy increasing by 4,100m² in South Africa and 2,700m² in the UK since 30 September 2024, it said.

CEO Gavin Lucas, said: “We are pleased with the continued strong operational performance achieved over the four-month period. Our South African portfolio has performed exceptionally well, while our UK portfolio continued to demonstrate its defensive nature and resilience.”

The company said it continued to grow its presence in both markets. In Cape Town, expansion at the Parklands property is underway, which will increase the gross lettable area (GLA) to 6,900m².

Additionally, through its joint venture with Garden Cities, a purchase agreement has been finalised for a parcel of land next to the Sunningdale property.

Since its opening in May 2021, Sunningdale has performed exceptionally well, and this new acquisition will enable the property’s expansion to 10,500m², it said.

“There remains an undersupply of high quality self storage properties across both South Africa and the UK providing the group with an excellent opportunity to expand its presence in both markets. The long lease-up period – financing cost implications – required to reach stabilised occupancy at new properties in these high-barrier-to-entry locations also contributes to the defensive nature of our portfolio,” said Lucas.

The company said it remains focused on further expanding its portfolio while continuing to produce an attractive trading performance.

The group’s portfolio across South Africa and the UK comprises 1071 properties. At 30 September 2024, the maximum lettable area including the pipeline and ongoing developments, exceeded 680 000m² .

The Company has a development pipeline of 48 000m² GLA, with 11 projects at various stages of planning and completion.

The portfolio is concentrated in the four major South African cities – Johannesburg, Cape Town, Pretoria and Durban (63 properties1), with the UK portfolio having a broad geographical representation across key cities and towns in England, including London (44 properties).

Shares in Stor-Age are up 3.5% to R14.60 over the past year.