{"id":601,"date":"2024-12-17T01:01:00","date_gmt":"2024-12-17T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=601"},"modified":"2024-12-13T13:08:49","modified_gmt":"2024-12-13T13:08:49","slug":"stor-age-property-reit-limited-h125-results-building-on-a-solid-foundation","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=601","title":{"rendered":"Stor-Age Property REIT Limited \u2013 H1:25 Results \u2013 Building on a Solid Foundation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: SSS \u2013 Market Cap: R7.53bn \u2013 PE: 8.8x \u2013 DY: 7.29%<\/em><\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/Stor-Age_H1_25_Results-Note.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of &lt;strong&gt;Stor-Age - H1:25 - Results Note&lt;\/strong&gt;.\"><\/object><a id=\"wp-block-file--media-3716de1f-b221-4496-adab-e5ecc38ba776\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/Stor-Age_H1_25_Results-Note.pdf\"><strong>Stor-Age &#8211; H1:25 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/Stor-Age_H1_25_Results-Note.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-3716de1f-b221-4496-adab-e5ecc38ba776\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>H1 FY 24 Results: In-line to better-than-expected<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Distributable income grew by 3.5% from H1 FY24 (61.36cps) to H1 FY25 (63.51cps). This growth lagged the growth in FFO which rose nicely by 7.0%.<\/li>\n\n\n\n<li>Rental income grew 8.1%, predominantly attributable to above inflation same-store rental growth in the SA segment. In the UK, same-store rental rate increases were in line with UK inflation but a good improvement in occupancies contributed to this segment\u2019s growth.<\/li>\n\n\n\n<li>Management have guided for FY25E distributable income of 122cps~126cps (the mid-range of this guidance implies a Forward Dividend Yield of c.7.9%).<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS.png\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"551\" src=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS-1024x551.png\" alt=\"\" class=\"wp-image-603\" srcset=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS-1024x551.png 1024w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS-300x161.png 300w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS-768x413.png 768w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS-624x336.png 624w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/2024-12-13-SSS.png 1039w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Thoughts: UK difficulty offset by SA strength<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Competitive pressures in the UK may result in limiting Storage King\u2019s rental growth to inflation but a solid performance in the SA segment has continued with rental rates growing above inflation whilst still maintaining target occupancies levels (c.92.0%).<\/li>\n\n\n\n<li>Shurgard\u2019s acquisition of Lok\u2019nStore is a good proxy for implying a valuation of the Group\u2019s UK segment \u2013 we explore this further in the body of this note.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Updated Forecast and Valuation: Valuation &amp; TP Lifted<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We see Stor-Age\u2019s fair value as <strong>R16.16 per share<\/strong> (previously R15.50) based on a blended valuation approach (DCF &amp; relative P\/B &amp; EV\/EBITDA values).<\/li>\n\n\n\n<li>Rolling forward our fair value by 12 months at our Cost of Equity (less our expected dividend) gives us a 12m TP of <strong>R16.73 per share<\/strong> (previously R15.97), implying a total return of c.14.1% (price return of +7% and an expected dividend return of +7.14%).<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-3716de1f-b221-4496-adab-e5ecc38ba776\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/Stor-Age_H1_25_Results-Note.pdf\"><strong>Stor-Age &#8211; H1:25 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2024\/12\/Stor-Age_H1_25_Results-Note.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-3716de1f-b221-4496-adab-e5ecc38ba776\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SSS \u2013 Market Cap: R7.53bn \u2013 PE: 8.8x \u2013 DY: 7.29% H1 FY 24 Results: In-line to better-than-expected Thoughts: UK difficulty offset by SA strength Updated Forecast and Valuation: Valuation &amp; TP Lifted<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[156],"tags":[13,15,60,20,30,16,158,159],"class_list":["post-601","post","type-post","status-publish","format-standard","hentry","category-stor_age_prop_reit","tag-equity-research","tag-jse","tag-research","tag-small-cap","tag-small-caps","tag-south-africa","tag-sss","tag-stor-age"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=601"}],"version-history":[{"count":2,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/601\/revisions"}],"predecessor-version":[{"id":605,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/601\/revisions\/605"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}