{"id":704,"date":"2025-12-08T01:01:00","date_gmt":"2025-12-08T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=704"},"modified":"2025-12-07T07:15:38","modified_gmt":"2025-12-07T07:15:38","slug":"stor-age-property-reit-limited-1h-26-results-still-steady-with-growth-ahead","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=704","title":{"rendered":"Stor-Age Property REIT Limited \u2013 1H 26 Results \u2013 Still Steady with Growth Ahead"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: SSS \u2013 Market Cap: R8.7bn \u2013 P\/B: 1.0x \u2013 DY: 6.3%<\/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\/2025\/12\/NOTE-Stor-Age-November-2025-1H-26.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of &lt;strong&gt;Stor-Age - 1H 26 - Results Note&lt;\/strong&gt;.\"><\/object><a id=\"wp-block-file--media-89fdf251-2659-45ec-8207-dfaaf52fd8d3\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/NOTE-Stor-Age-November-2025-1H-26.pdf\"><strong>Stor-Age &#8211; 1H 26 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/NOTE-Stor-Age-November-2025-1H-26.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-89fdf251-2659-45ec-8207-dfaaf52fd8d3\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1H 26 Results: Well Run, Well Positioned &amp; Globally Competitive<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stor-Age REIT owns a well-managed, growing self-storage property portfolio that was built out of a strong SA base (that remains robust &amp; growing) &amp; is increasingly allocating capital towards the UK (offering Rand Hedge benefits) while cleverly leveraging the capital-light JV structures to build what could become a substantial portfolio.<\/li>\n\n\n\n<li>The Group\u2019s 1H 26 rental income growth has been strong (+6% annualised) &amp; has historically outpaced inflation; occupancies remain high in owned properties. 1H 26 EBITDA and NPOP grew by 5% and 6% respectively, with distributable earnings increasing by 8% with stable profit margins.<\/li>\n\n\n\n<li>From FY 25, the Group adjusted its distribution payout ratio from 100% to 90% of distributable income\u2014retaining some capital for growth.<\/li>\n\n\n\n<li>1H 26\u2019s Net Asset Value (NAV) per share increased by 2% (annualised).<\/li>\n\n\n\n<li>The Group remains comfortably geared, though comparable international peers do have somewhat lower average gearing.<\/li>\n\n\n\n<li>Stor-Age\u2019s Total Return (in Rands) has outperformed <em>all<\/em> listed global self-storage companies over 3, 5, &amp; 10 years.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Stor-Age &#8211; Total Return of Listed Self-Storage REITs<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"498\" src=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years-1024x498.jpg\" alt=\"\" class=\"wp-image-708\" srcset=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years-1024x498.jpg 1024w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years-300x146.jpg 300w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years-768x373.jpg 768w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years-624x303.jpg 624w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-14-Selfstorage-Total-Return-10-years.jpg 1351w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Source: Koyfin (18\/11\/2025)<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation and 12m TP: Relative Model &amp; Dividend Discount Model<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stor-Age\u2019s share price has fallen behind its NAV growth, leading to a Price\/Book (\u201cPB\u201d) ratio range of 0.8~0.9x (to 1H 26). The Group\u2019s quality, its potential for Rand Hedge benefits from its UK portfolio, optionality from organic and acquisitive growth, and the fact that the properties are fairly valued (on quite reasonable assumptions), informs our view that the share should (at <em>least<\/em>) track its historic 1.0x PB over time, if not at a premium to book. The share currently has a PB fractionally higher than 1.0x, having strongly re-rated over the last six months.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Stor-Age &#8211; Price\/Book (x) History<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"497\" src=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book-1024x497.jpg\" alt=\"\" class=\"wp-image-709\" srcset=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book-1024x497.jpg 1024w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book-300x146.jpg 300w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book-768x373.jpg 768w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book-624x303.jpg 624w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/2025-11-19-SSS-Price-to-Book.jpg 1350w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Source: Koyfin (18\/11\/2025)<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We have updated our Relative Valuation Model and Dividend Discount Models to arrive at an equal-weighted average valuation of R18.50 per share (FY 25: R16.71).<\/li>\n\n\n\n<li>Rolling this fair value forward at our Cost of Equity, we arrive at a 12m Target Price\u2014factoring in dividends\u2014of R19.70 (Previously: R17.80); we expect this to generate a 12m (total) return of c.16%.<\/li>\n\n\n\n<li>The Group\u2019s next five-year plan (FY 26 to FY 30) sees a 50% growth in number of properties (SA and UK combined) &amp; could drive a re-rating in the Group\u2019s listed size (it is currently a small cap) that could support increasing institutional appetite as self-storage remains an attractive growth market in both SA and the UK and a sought-after property class. See the Group\u2019s recent oversubscribed bookbuild as evidence of this.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-89fdf251-2659-45ec-8207-dfaaf52fd8d3\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/NOTE-Stor-Age-November-2025-1H-26.pdf\"><strong>Stor-Age &#8211; 1H 26 &#8211; Results Note<\/strong><\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2025\/12\/NOTE-Stor-Age-November-2025-1H-26.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-89fdf251-2659-45ec-8207-dfaaf52fd8d3\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SSS \u2013 Market Cap: R8.7bn \u2013 P\/B: 1.0x \u2013 DY: 6.3% 1H 26 Results: Well Run, Well Positioned &amp; Globally Competitive Stor-Age &#8211; Total Return of Listed Self-Storage REITs Source: Koyfin (18\/11\/2025) Valuation and 12m TP: Relative Model &amp; Dividend Discount Model Stor-Age &#8211; Price\/Book (x) History Source: Koyfin (18\/11\/2025)<\/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":[13,15,60,157,16],"class_list":["post-704","post","type-post","status-publish","format-standard","hentry","category-stor_age_prop_reit","tag-equity-research","tag-jse","tag-research","tag-self-storage","tag-south-africa"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/704","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=704"}],"version-history":[{"count":1,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/704\/revisions"}],"predecessor-version":[{"id":711,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/704\/revisions\/711"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}