This article is from the Australian Property Journal archive
Organic growth, acquisitions and development opportunities will support Abacus Storage King (ASK) across the ASX-listed self-storage company’s business, after it posted a 15.1% increase in first-half funds from operations (FFO).
FFO came in at $43.3 million, while distributions of 3.1c per security was up 3.3%.
Statutory net profit was $67.8 million, up $67.4 million on HY24, which was impacted by property devaluations.
ASK recorded 5.4% growth in revPAM to $339 per sqm and 4.4% growth in rental rate to $373 per sqm.
“The continued strength in revPAM is due to our right-sized, urban locations and sector leading Storage King platform,” said Abacus Group’s managing director, Steven Sewell.
“We expect our portfolio to benefit from organic growth; sector maturation; acquisition and development opportunities; and long-term platform initiatives. We expect these factors to drive growth in our brand, customer engagement, and revenue management, supporting sustained success in a fragmented market.
“ASK remains well positioned to leverage its key enablers and deliver recurring income and value creation over the medium term, underpinned by its multi-pronged growth strategy.”
ASK affirmed its FY25 distribution guidance of 6.2c per security, targeting a full year distribution payout of 90% to 100% of FFO.
During the first half invested $60 million in four operating stores adding 13,200 sqm of net lettable area (equal to about 2% of its portfolio) and three development sites.
It has a pipeline of 19 developments totalling 112,000 sqm and six expansions totalling 18,000 sqm in the short- to medium-term. ASK anticipates these assets will enhance the average rental rate and revPAM across the established portfolio over time.
Stabilising assets are leasing well, it said. Two assets opened in the last 12 months with higher than 40% occupancy.
Storage King maintained number one most Google searched self-storage brand in Australia in the half.
