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Current Stor-Age share price (SSS)
Delayed by 15mins

Proven Model

Competitive Advantages

  • Greatest number of stores and the largest footprint by GLA
  • Sector and market leading position in the South African industry
  • Fastest growing self storage business in South Africa
  • Most recognised brand in South Africa and the only brand with a national footprint
  • Successful track record of managing a ‘mature portfolio’ and acquiring existing stores, whilst integrating them seamlessly into the trading portfolio
  • History of securing greenfield sites in high profile locations, developing new properties on time and on budget and successfully managing new properties through their ‘lease-up’
  • Highly focused executive management team with an established track record in the self storage sector, supported by experienced and talented senior management team on both the property and operating fronts
  • With the involvement of former JSE listed and publicly traded Acucap Properties REIT from 2010 to 2015 as a strategic shareholder – essentially the self storage investment model was ‘de-risked’ in the South African commercial property market context
  • Stores prominently located on arterial or main roads, providing high brand visibility
  • Sophisticated web and digital platform providing significant web traffic from mobile, tablet and desktop platforms
  • Outstanding customer service as measured by customer satisfaction surveys
  • Freehold property portfolio, concentrated in Cape Town, Johannesburg, Pretoria and Durban
  • Large average store size (average of 7,200 m² + of GLA) – economies of scale, higher operating margins
  • Significant pipeline of new development sites in prime locations
  • Strong balance sheet and established relationships with leading commercial property financiers
  • Yes, self storage is a niche sector with additional operating risks, however Stor-Age has effectively de-risked the opportunity in the SA market through displaying an outstanding track record in creating a market and sector leading self storage business
  • Significant barriers to entry to the market:
    • Properties located in desirable nodes
    • Sophisticated operations platform
    • Ability to secure high profile sites and manage them through the town planning process
    • Expertise to develop small foot-print/multi-storey properties and successfully navigate them through the lease-up phase of the assets life-cycle
    • New supply in key nodes isn’t expected to present a formidable near-term threat due to ‘real’ barriers to entry in the South African market

Excellent Growth Opportunities

Driving cash flow growth across the portfolio of both ‘mature’ and ‘lease-up’ stores with a focus on yield in the ‘mature’ portfolio and occupancy in the ‘lease-up’ portfolio Yield management as occupancy increases via revenue management strategy which incorporates the use of powerful operating software New property roll-out via both acquisition and development is forecast to remain at the current pace in the medium term.

Growing Income Streams

  • Currently 33 100 + tenants
  • Average length of stay for existing customers is 22 months +
  • Approximately 53% of customers stay > 1 year
  • Approximately 32% of customers stay > 2 years
  • Low bad debt expense (< 0.5% of revenue)

Robust Earnings Outlook

  • Excellent operating margins and operational advantage in the South African market
  • Low technology obsolescence product
  • Low long term capex obligations relative to traditional commercial property sectors
  • Outstanding growth in both cash flow and NAV y-o-y translating into attractive and growing earnings

Attractive Sector Dynamics

  • Resilient through economic downturns and robust in the good times
  • Limited new supply coming onto the market in key urban areas
  • Sector growth is positive, with significant increases in domestic demand
  • Growth in South Africa’s new black middle class is helping drive demand
  • Middle class South African’s desire to live within gated security estates (and thus the smaller dwelling sizes) is contributing to additional demand
  • Penetration levels in desired nodes in South Africa remain extremely low
  • Underlying sector fundamentals are strong