Stor-Age Reports Strong Growth: Occupancy and Rental Rates Rise in South Africa and UK

Stor-Age Property REIT Limited, South Africa’s leading self-storage property fund, has announced strong trading results for the four-month period ending 31 January 2025. The company reported increased occupancy and higher average rental rates across its portfolios in South Africa and the UK, underscoring its resilience and growth trajectory.

South African Portfolio Shines

In South Africa, Stor-Age’s owned portfolio saw a significant boost in occupancy, increasing by 5,400 square meters (m²) compared to September 2024. By the end of January 2025, occupancy reached 93.5%, reflecting strong demand for self-storage solutions.

The portfolio also achieved an impressive 7.8% year-on-year increase in average rental rates, highlighting the company’s ability to maintain pricing power in a competitive market.

UK Portfolio Demonstrates Resilience

Despite seasonal challenges in the UK self-storage sector, Stor-Age’s UK portfolio remained resilient. Total year-to-date occupancy increased by 1,400 m², marking a 1.5% rise. The portfolio also recorded a 4.1% year-on-year increase in average rental rates, showcasing its defensive nature and steady performance.

Joint Venture Properties Perform Well

Stor-Age’s joint venture (JV) properties in both South Africa and the UK also delivered strong results. Occupancy increased by 4,100 m² in South Africa and 2,700 m² in the UK since 30 September 2024, further solidifying the company’s market presence.

Strategic Expansions Underway

Stor-Age continues to expand its footprint in key markets. In Cape Town, the company is expanding its Parklands property, which will increase the gross lettable area (GLA) to 6,900 m². Additionally, a parcel of land adjacent to the Sunningdale property was acquired to expand the site to 10,500 m².

In the UK, Stor-Age completed the development of its Leyton property in east London in January 2025, adding 3,900 m² of storage space. Progress is also underway at the Acton property in west London, which is expected to be completed by Q1 FY26 and will offer 5,800 m² of storage space.

Management 1st Gains Momentum

Stor-Age’s third-party management offering, Management 1st, continues to gain traction. The company has made significant progress with its partnership with Hines, a global real estate investment and development firm. The Hines development pipeline now includes six properties, with two new sites acquired in Chelmsford and Buckinghamshire. Construction in Chelmsford is set to begin in Q1 FY26, while planning applications for the Buckinghamshire site are underway.

Positive Outlook for Future Growth

Gavin Lucas, CEO of Stor-Age, expressed optimism about the company’s future. “There remains an undersupply of high-quality self-storage properties across both South Africa and the UK, providing the group with an excellent opportunity to expand its presence in both markets,” he said.

Lucas added that the company’s long lease-up periods and high-barrier-to-entry locations contribute to the defensive nature of its portfolio. “The outlook for development activity remains positive, and we are well-positioned to pursue these opportunities with our JV partners as they arise,” he noted.

Share Performance

Stor-Age’s shares closed at R14.60 on Friday, reflecting investor confidence in the company’s strong operational performance and growth prospects.

Stor-Age’s latest trading results highlight its ability to deliver consistent growth and resilience in both South Africa and the UK. With strategic expansions, rising occupancy, and increased rental rates, the company is well-positioned to capitalize on the growing demand for self-storage solutions. As Stor-Age continues to expand its footprint and strengthen its market presence, it remains a key player in the global self-storage industry.

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