Safestore Holdings (SAFE) AI Stock Analysis

• Market Cap: £1.33B
• Dividend Yield: 4.93%
• Average Volume (3M): 717.82K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.14
• Revenue Growth: -0.36%
• EPS Growth: 85.03%
• Country: UK
• Employees: 804
• Sector: Real Estate
• Sector Strength: 69
• Industry: REITs
• EPS (TTM): 1.71
• Shares Outstanding: 218,490,500
• 10 Day Avg. Volume: 1,218,135
• 30 Day Avg. Volume: 717,817
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.96
• Price to Cash Flow (P/CF): 14.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 788.09p
• Price Target Upside: 28.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Safestore Holdings presents a strong investment case with solid financial performance and attractive valuation metrics. The recent corporate events highlight growth opportunities, particularly in new markets. However, technical indicators suggest cautious optimism due to bearish momentum.

Positive Factors

Expansion and Development

Safestore has continued its expansion with developments, extensions, and its first investment in Italy, all of which in the long-term will drive future earnings growth.

Financial Performance

Safestore has reported a good start to its financial year, with positive like-for-like performance metrics as occupancy and rate improved across most areas.

Negative Factors

Interest Costs

Higher interest costs due to developments and the time it takes to let up new stores puts the brakes on earnings per share growth this year.

Sector Performance

No UK REIT has avoided the sector's de-rating over the last 5 months, with share prices adversely impacted by higher rate expectations, a weak economy, and property investment markets devoid of liquidity.

Safestore Holdings Business Overview & Revenue Model

Company Description

Safestore Holdings PLC is a real estate investment trust that owns and leases storage space from its portfolio of self-storage facilities located in Paris and the United Kingdom. The company focuses on the acquisition and operation of storage locations in wealthy, densely populated areas in Europe. Safestore's properties in the United Kingdom comprise the vast majority of its total holdings. The company derives nearly all of its revenue from the rental of its self-storage lockers and the sale of insurance and packaging materials. Southeast London and England account for the majority of Safestore's income. Total occupancy is split fairly evenly between individuals and businesses ranging from online retailers to large, multinational companies.

How the Company Makes Money

Safestore Holdings generates revenue primarily through renting self-storage units to individuals and businesses. The company earns money by charging customers for the use of these storage spaces on a monthly basis. Additionally, Safestore offers ancillary services such as insurance products, packaging materials, and transportation, which contribute to its revenue streams. The company's earnings are bolstered by its strategic locations, strong brand presence, and customer service excellence, which help to maintain high occupancy rates and customer retention. Safestore may also engage in partnerships with real estate developers and agents to expand its reach and access new markets.

Safestore Holdings Financial Statement Overview

Summary

Safestore Holdings exhibits solid financial performance with strong profitability and a well-managed balance sheet. Despite a recent dip in revenue and negative free cash flow, the company maintains healthy profit margins and efficient cost management, with strong operating cash flows.

Income Statement

Safestore Holdings shows a strong income statement with consistently improving revenue over the years, albeit with a slight revenue decrease in the most recent period. The company maintains healthy profit margins, with the net profit margin and EBIT margins significantly improving over time. The stability in gross profit margin indicates efficient cost management. However, the dip in revenue growth rate in the latest year suggests a need to monitor future revenue performance.

Balance Sheet

The balance sheet is robust with a strong equity base, reflected in a healthy equity ratio. The company has managed its debt levels effectively, with a reasonable debt-to-equity ratio indicating balanced leverage. The increase in stockholders' equity over time suggests strong financial health and growth. Though there is a rise in total debt, it is proportionate to the overall asset increase, demonstrating good financial management.

Cash Flow

The cash flow statement reveals stable operating cash flows and a prudent approach to capital expenditures. However, recent free cash flow figures are negative, which could raise concerns if this trend continues. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. Nonetheless, the negative free cash flow to net income ratio highlights potential challenges in cash availability for investments or further debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
223.30M	223.50M	224.20M	212.50M	186.80M	162.30M
	Gross Profit
152.20M	149.80M	154.30M	149.50M	129.90M	106.00M
	EBIT
255.40M	425.80M	230.40M	123.50M	101.20M	86.30M
	EBITDA
135.10M	425.80M	229.50M	124.50M	102.20M	87.20M
	Net Income Common Stockholders
264.20M	372.30M	200.20M	462.90M	382.00M	178.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.90M	25.30M	16.90M	20.90M	43.20M	19.60M
	Total Assets
2.96B	3.36B	2.96B	2.71B	2.12B	1.70B
	Total Debt
827.20M	924.80M	827.20M	719.20M	567.00M	531.70M
	Net Debt
810.30M	899.50M	810.30M	698.30M	523.80M	512.10M
	Total Liabilities
1.02B	1.13B	1.02B	914.10M	742.40M	665.50M
	Stockholders Equity
1.94B	2.23B	1.94B	1.79B	1.37B	1.04B
Cash Flow		Free Cash Flow
-15.50M	-24.20M	-23.90M	13.60M	96.00M	74.40M
	Operating Cash Flow
107.10M	95.90M	98.00M	109.80M	97.00M	75.70M
	Investing Cash Flow
-117.90M	-122.60M	-124.20M	-200.90M	-66.20M	-77.60M
	Financing Cash Flow
6.70M	35.40M	22.30M	69.00M	-6.30M	-12.00M

Safestore Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 612.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAFE, the sentiment is Negative. The current price of 612 is above the 20-day moving average (MA) of 580.92, above the 50-day MA of 590.83, and below the 200-day MA of 733.37, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 5.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAFE.

Safestore Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFE	76 Outperform	£1.33B	3.57	17.89%	4.93%	-0.36%	85.03%
LMP	74 Outperform	£3.63B	16.67	6.48%	6.25%	95.26%	―
SGRO	71 Outperform	£9.38B	15.52	5.18%	4.06%	-9.88%	―
GCP	68 Neutral		43.01	2.14%	9.41%	23.59%	-73.22%
Sector *	61 Neutral	$4.76B	19.07	-3.20%	8.08%	6.43%	-19.69%

Safestore Holdings Corporate Events

Safestore Holdings Shows Robust Q1 Growth with New Expansions

Safestore Holdings reported a solid first quarter for 2025, with a 3.5% increase in group revenue at constant exchange rates, driven by growth in both like-for-like stores and new developments. The company added six new stores and one extension, contributing to a significant increase in maximum lettable area. The joint venture acquisition of Italy’s EasyBox marks an entry into the Italian market, highlighting potential growth opportunities due to low self-storage supply. Despite macroeconomic uncertainties, Safestore remains confident in its growth trajectory, supported by strong performance in expansion markets, particularly in Spain, and ongoing development projects.

Safestore Holdings to Release Q1 Trading Update

Safestore Holdings plc has announced that it will release its first quarter trading update for the period ending 31 January 2025 on 20 February 2025. This announcement is significant for stakeholders as it will provide insights into the company’s recent performance and potential future direction, impacting its market positioning and investor confidence.

Safestore Holdings Announces 2024 Annual Report and 2025 AGM Details

Safestore Holdings plc has released its Annual Report and Accounts for 2024, along with the Notice of the 2025 Annual General Meeting (AGM). The AGM is scheduled for March 19, 2025, and shareholders are encouraged to utilize electronic proxy voting services. These documents are available on the company’s website and have been submitted to the Financial Conduct Authority, facilitating transparency and accessibility for stakeholders.

Safestore Holdings Awards Long Term Incentive Plan to Key Executives

Safestore Holdings plc has announced the grant of awards under its 2020 Long Term Incentive Plan. This notification involves transactions by key management, including CEO Frederic Vecchioli and CFO Simon Clinton, who have been granted nil cost options for ordinary shares, reflecting a strategic move to align management interests with company performance.

Safestore CEO Invests in Company Shares

Safestore Holdings announced that Frederic Vecchioli, the CEO, has purchased 16,000 ordinary shares of the company at a price of £6.07 per share, totaling £97,120. This transaction, conducted on the London Stock Exchange, signifies a vote of confidence in the company’s future by its top executive, potentially impacting investor sentiment positively.

Safestore Executives Purchase Shares, Signaling Confidence

Safestore Holdings plc has announced the purchase of shares by key executives, including CEO Frederic Vecchioli, CFO Simon Clinton, and Non-Executive Director Avis Darzins. Vecchioli acquired 65,000 shares at £6.2845 each, Clinton purchased 4,146 shares at £6.02982 each, and Darzins bought 1,581 shares at £6.284 each, all transactions took place on the London Stock Exchange on January 16, 2025. This activity signals a strong vote of confidence in the company’s future from its leadership, potentially impacting stakeholder trust and market perception positively.

Key Executives of Safestore Holdings Show Confidence with Share Purchases

Safestore Holdings plc announced transactions involving key managerial personnel, including CEO Frederic Vecchioli, CFO Simon Clinton, and Non-Executive Director Avis Darzins, who collectively purchased shares on the London Stock Exchange. These transactions, disclosed as initial notifications, signal confidence in the company’s financial health and future prospects, potentially impacting investor sentiment positively.

Safestore Holdings Reports Resilient Financial Performance Amidst Strategic Expansion

Safestore Holdings reported a resilient financial performance for the year ending October 2024, with a slight decrease in revenue and underlying EBITDA due to inflationary pressures and new developments. Despite these challenges, the company expanded its portfolio with new stores and joint ventures, particularly in high-potential markets such as Italy and Germany, contributing to a strong growth outlook and a robust balance sheet. The company achieved strategic progress by opening new stores, expanding its development pipeline, and strengthening its financial position through increased facilities and a new US private placement, which supports future growth and a modest dividend increase.

Safestore Expands into Italian Self-Storage Market with €175m Easybox Acquisition

Safestore Holdings has announced a strategic expansion into Italy through a joint venture with Nuveen Real Estate, acquiring the Italian self-storage provider Easybox for €175 million. This move marks Safestore’s entry into a largely underserved market in Europe, aiming to leverage its management expertise and expand its portfolio into new geographies. The acquisition includes ten operational stores and two developments, with expected earnings accretion by 2027 and a projected 10% cash-on-cash return upon stabilization, highlighting the growth potential in Italy’s nascent self-storage sector.