Stor-Age points to rental and occupancy uptick

Stor-Age Property REIT, South Africa's only specialist self-storage real estate investment trust (Reit), has provide an update on trading and development activity for the four months ended January 2024 showing modest strides in occupancy rates and robust development activities both locally and in the United Kingdom (UK).

In South Africa, occupancy in the owned portfolio increased by 9 700m' - up 2.8% - to close at 92.1% for the period ended January 2024 with the achieved average rental rate up 9.4% year-on-year.

The group said its performance in the UK was resilient with occupancy in the owned portfolio up 0.4%, bringing the total year-to-date occupancy gain to 1 400m' - up 1.6%.

"This was a pleasing result considering that Q3 is seasonally the weakest trading quarter in the UK self storage sector. The achieved average rental rate increased by 4.8% year-on-year," it said.

In SA, both same-store and non-same-store JV properties collectively added 4,000m² to occupancy, marking a 52% increase since September 30, 2023.

In the UK, JV properties displayed similar success, contributing an additional 3,200m² to occupancy, reflecting a commendable 9.4% increase over the same period.

Development Highlights

Noteworthy developments included the completion of the Paarden Eiland property in SA, with a Gross Lettable Area (GLA) of 4,700m² on full fit-out.

This property, developed in partnership with Nedbank Property Partners (NPP), joins three other completed properties in the JV with NPP, boasting a total GLA exceeding 24,000m².

In the UK, the completion of the Canterbury (5,000m² GLA) and West Bromwich (6,300m² GLA) properties, in collaboration with Moorfield Property Group, further bolstered Stor-Age's market presence.

The Moorfield JV now encompasses eight trading properties across the UK, totaling 49,000m² GLA on full fit-out.

Additionally, during the period, Stor-Age entered into a third-party management agreement for a new self-storage property in Queensway, Bayswater (west London).

Shares in Stor-Age are up 4.3% over the past year.