{"id":759,"date":"2026-07-30T01:01:00","date_gmt":"2026-07-30T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=759"},"modified":"2026-07-29T11:29:05","modified_gmt":"2026-07-29T11:29:05","slug":"stor-age-property-reit-limited-fy-26-results-tough-uk-market-but-with-room-to-grow","status":"publish","type":"post","link":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/?p=759","title":{"rendered":"Stor-Age Property REIT Limited \u2013 FY 26 Results \u2013 Tough UK Market but with Room to Grow"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: SSS \u2013 Market Cap: R8.8bn \u2013 P\/B: 0.9x \u2013 DY: 6.6%<\/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:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/Stor-Age-Results-Note-FY-26.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of &lt;strong&gt;Stor-Age Property REIT - Results Note - FY 26&lt;\/strong&gt;.\"><\/object><a id=\"wp-block-file--media-de0c01b9-aed3-42b6-8a33-4b9f1fceaf0f\" href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/Stor-Age-Results-Note-FY-26.pdf\"><strong>Stor-Age Property REIT &#8211; Results Note &#8211; FY 26<\/strong><\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/Stor-Age-Results-Note-FY-26.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-de0c01b9-aed3-42b6-8a33-4b9f1fceaf0f\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Summary of Results: South Africa does the heavy lifting<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Stor-Age\u2019s FY 26 landed in line with our forecast as Distributable Earnings rose +8.4% to R642.4m and Distributable Income per Share growing by +5.1% to 129.29cps. Final DPS rose +5.1% to 116.36cps (maintaining the REIT\u2019s 90% payout).<\/li>\n\n\n\n<li>The Group\u2019s balanced sheet remained comfortable, gearing at reasonable-to-low levels (Loan-to-Value or LTV at 27.1%, or at 30.3% on a Look-through basis including JV\u2019s), and the NAV per share growing at +3.7% to 1767cps.<\/li>\n\n\n\n<li>Digging deeper, the Group\u2019s South African segment carried the result with its rental income growing +10.5%, net property operating income +11.1%, and same-store rate +8.6%).<\/li>\n\n\n\n<li>UK segment lagged with GBP rental income growth of only +1.1% eaten by operating costs growing +4.5% resulting in Net Property Operating Income slipping -0.8%.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"853\" height=\"260\" src=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1.jpg\" alt=\"\" class=\"wp-image-762\" srcset=\"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1.jpg 853w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1-300x91.jpg 300w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1-768x234.jpg 768w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/2026-07-29-Picture-1-624x190.jpg 624w\" sizes=\"auto, (max-width: 853px) 100vw, 853px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Thoughts: UK Should See Better FY 27E<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Despite the UK miss above, we think that FY 26 was a quality results in a two-speed year with a tougher H2:26.<\/li>\n\n\n\n<li>There will be new UK leadership from October 2026 that has sparked an operational review here and should see efficiencies and pricing gains (probably really annualising from H2:27E).<\/li>\n\n\n\n<li>AI-driven efficiencies should help medium-term UK margins while AI-pricing transparency in the UK could help the Group\u2019s SA operations (many local operators may not have the AI know-how that the Group is gaining in the competitive UK market).<\/li>\n\n\n\n<li>Finally, we will be watching some financing rolls where low-struck hedges (70% of net debt, ~1.3-year average expiry) roll off and potentially reprice higher during FY 27E.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Updated Forecast and Valuation: Double-digit Implied Total Return<\/strong> <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We update our fair value based on our blended fair value of 1812cps (previously 1850cps) and a 12m TP of 1908cps (previously 1970cps). <\/li>\n\n\n\n<li>With the share at 1715cps (it has de-rated since the R500m December raise), the implied 12m total return improves to 18% (previously 16%) \u2014 about 11% price return plus a 7.1% Forward Yield.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Stor-Age<\/strong> <strong>Share Price relative to Self-Storage Peers<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"528\" src=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2-1024x528.jpg\" alt=\"\" class=\"wp-image-761\" srcset=\"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2-1024x528.jpg 1024w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2-300x155.jpg 300w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2-768x396.jpg 768w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2-624x322.jpg 624w, https:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/figrue-2.jpg 1260w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-de0c01b9-aed3-42b6-8a33-4b9f1fceaf0f\" href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/Stor-Age-Results-Note-FY-26.pdf\"><strong>Stor-Age Property REIT &#8211; Results Note &#8211; FY 26<\/strong><\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2026\/07\/Stor-Age-Results-Note-FY-26.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-de0c01b9-aed3-42b6-8a33-4b9f1fceaf0f\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SSS \u2013 Market Cap: R8.8bn \u2013 P\/B: 0.9x \u2013 DY: 6.6% Summary of Results: South Africa does the heavy lifting Thoughts: UK Should See Better FY 27E Updated Forecast and Valuation: Double-digit Implied Total Return Stor-Age Share Price relative to Self-Storage Peers:<\/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":[13,15,172,60,20,30,16,160],"class_list":["post-759","post","type-post","status-publish","format-standard","hentry","category-stor_age_prop_reit","tag-equity-research","tag-jse","tag-reit","tag-research","tag-small-cap","tag-small-caps","tag-south-africa","tag-stor-age-property-reit"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=759"}],"version-history":[{"count":1,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/759\/revisions"}],"predecessor-version":[{"id":763,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/759\/revisions\/763"}],"wp:attachment":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}