Safestore Holdings

Safestore Holdings is trading near a 52-week low, with shares recently around 535p, roughly 27% below their 52-week high. Yet the latest numbers raise an intriguing question: has the market become too pessimistic about a business whose underlying earnings are still growing? The first half of 2026 showed revenue rising 6.9% to £120.6 million, while adjusted earnings per share increased 2.1% to 19.4p. Underlying EBITDAR reached £67.9 million, up 3.7%. The interim dividend also increased 1% to 10.20p. However, the picture has recently softened. Third-quarter like-for-like revenue increased only 1.9%, while closing occupancy fell to 79.6% from 80.4%. Management now expects full-year adjusted earnings per share in the lower half of analyst expectations and is reviewing the timing of future developments because of economic and interest-rate conditions. The value argument is substantial property assets and an expansion pipeline expected to add £30–35 million of EBITDA after stabilization. The risks are weaker occupancy, higher financing costs, debt and falling property values. A recovery could come if occupancy improves, interest rates ease and new stores mature. The counterargument is that the current discount may reflect a prolonged period of weaker property-market returns. This review is for informational and educational purposes only, not financial advice.