June 18 2026 16:40
CAPE TOWN, SOUTH AFRICA
JSE-listed self-storage group Stor-Age Property Reit yesterday released its financial results for the year to end-March 2026. Management said the group was helped by “an exceptional domestic trading cycle to successfully offset cyclical macroeconomic friction in its United Kingdom portfolio”.
The specialised real estate investment trust (Reit) reported a 5.1% rise in distributable income per share to 129.29 cents, matching a 5.1% increase in its total annual dividend per share to 116.36 cents.
The group’s financial metrics were heavily fortified by a R500 million equity capital raise completed in December 2025. Executed at a distinct premium to net asset value (NAV), the capital injection systematically pared down corporate debt and dragged the group’s SA Reit loan-to-value (LTV) ratio down to a conservative 26.7%.
On the back of its stronger balance sheet and an expanding development pipeline, the board provided growth guidance for the financial year to-end March 2027, targeting a 5% expansion in distributable income per share while maintaining a 90% dividend payout ratio.
The South African portfolio served was the growth catalyst for the group during the financial year. Driven by robust consumer demand, pricing momentum, and a fragmented competitive landscape, local rental income climbed 10.5%, but net property operating income grew 11.1%, closing out the period with a dominant occupancy rate of 93.4%.
On an organic same-store basis, SA rental income expanded by 9.6%, anchored by an 8.6% upward trajectory in average rental rates and a 0.9% tick in average occupancy. The group’s joint venture (JV) portfolio added an additional 8 100m² of operational occupancy.
Stor-Age CEO Gavin Lucas said the underlying operational durability of the dual-region platform:
“FY26 again demonstrated the resilience of our operating model and the depth of the platform we have built across South Africa and the UK. The South African business delivered an excellent performance, our balance sheet remains conservatively positioned, and we made meaningful strategic progress across acquisitions, developments, joint ventures and third-party management,” he said.
“While the UK trading environment was tougher, the long-term fundamentals of the market remain attractive,” Lucas said.
In sharp contrast to the double-digit domestic expansion, the UK portfolio faced cyclical headwinds following a strong FY25 performance
UK rental income edged up marginally by 1.1%, while net property operating income fell by 0.8%, pulling owned portfolio occupancy down to 81.6%.
Management said the slower UK performance reflects macroeconomic pressures and an expected cyclical normalisation following the inflated post-pandemic trading boom experienced between 2021 and 2023, rather than structural decay within the region’s self-storage fundamentals.
The UK joint venture and managed platforms demonstrated healthier traction, expanding occupancy by 2 000m² across JV assets and 1 200m² across its five managed properties.
A core pillar of Stor-Age’s ongoing strategy was the expansion of its capital-light growth model through third-party management contracts and joint venture developments.
While total management fees dropped slightly to R61.8m because of compressed non-recurring development and acquisition fees, recurring management fees jumped 15.6% to R60.7 million, proving a higher quality and predictability of fee-based income.
The group also expanded its physical footprint through R200m worth of strategic acquisitions, absorbing Lock-Up Storage and Execustore in KwaZulu-Natal, alongside West Coast Storage in the Western Cape to add 24 050m² of gross lettable area.
Stor-Age’s development pipeline includes a new site with premium M5 highway exposure in Maitland, Cape Town, alongside flagship projects in Melrose, Johannesburg and the sought-after De Waterkant precinct bordering the Cape Town CBD and V&A Waterfront.
“What is important about FY26 is not only the earnings growth, but the quality of the platform we are building for the next phase of growth,” said Lucas.
“We strengthened the balance sheet, advanced our pipeline, continued to mature our third-party management capability and maintained disciplined capital allocation. As a result, Stor-Age is well positioned to continue creating sustainable long-term value,” he said.
alistair@propertyflash.co.za
