March 28 2023
![](https://propertyflash.co.za/wp-content/uploads/2023/03/Stor-Age-Property-Reit.jpg)
Stor-Age Property Reit, the largest owner of personal and commercial storage assets in South Africa, released a business and trading update on Tuesday morning, saying that its trading activity had reached pre-pandemic levels in the 11-month period to end-February 2023.
The 2023 financial year saw a return to a more normalised cycle of trading in line with pre-pandemic seasonality trends, the group said. Typically, Stor-Age experiences some occupancy losses in the winter months offset by strong trading activity in the spring and summer months, the group said in a statement released via the JSE's stock exchange news service. Churn or customers moving out each month as a percentage of starting occupancy remained lower than pre-pandemic levels, providing further support to occupancy. "In both markets, we continue to carefully manage occupancy levels, rental rates and promotions to maximise revenue," said the group. In SA, total occupancy increased by 17100m2 year-to-date to finish at 90.5%. On a same store basis, the average rental rate increased 7.3% year-on-year, while average occupancy increased 2.1% year-on-year. Stor-Age completed the acquisition of Think Secure Self Storage in December 2022 adding a further 3300m2 of gross lettable area with a further 5300m2 of lettable area added at other properties in the portfolio. In the UK, total occupancy increased 3200m2 year-to-date. On a same store basis, the average rental rate increased 8.3% year-on-year, while average occupancy increased 1.0% year-on-year. Occupancy in the same-store portfolio closed at 86.7%, reflecting the additional capacity of 5200m2 from recently completed extensions. As much as 5700m2 of lettable area was added to properties in the non same-store portfolio. Think Secure Self Storage in Parklands, a suburb located on Cape Town's west coast, was acquired in November 2022 for a purchase consideration of R65m. This property is located on the corner of Sandown and Koeberg Roads in Parklands and services the Parklands, Sunningdale and Table View areas. The property's location complements the existing Stor-Age Sunningdale and Table View properties. The multi-storey property offers an existing total potential of 4000m2 of gross lettable area, while also benefiting from additional bulk. A planning application was submitted to expand the property by an additional estimated 2900m2 of gross lettable area, translating into approximately 6900m2 of gross lettable area in total on completion. New developments and expansions are underway at 11 properties in South Africa and the United Kingdom; SA with five and the UK with six, which are scheduled to bring on line an additional estimated 55000m2 of space in 2024 financial year. Stor-Age's secured development pipeline in SA comprises ten properties with an approximate total development cost of R900m, and which will add an estimated 60000m2 of gross lettable area to the portfolio. An additional property was secured in Stor-Age's UK development pipeline in West London in February 2023. Stor-Age's secured development pipeline in the UK now includes five properties with an approximate total development cost of £64m, and which will add an estimated 270000 square feet of gross lettable area to the portfolio. alistair@propertyflash.co.za