By Greg Wright

Published 14th Aug 2023, 08:39 BST

The company said occupancy rates had remained steady as it reported on the 12 months to the end of July.

The company’s self-storage revenue rose 5.3 per cent in the period, and when stripping out the impact of new sites and the ones that Lok’nStore sold during the period, it rose by 12.1 per cent, the business revealed.

Revenue rose slightly faster than expected in the second half of the year, while operating costs were in line with expectations.

In an update for investors, the self-storage business Lok’nStore said it had increased prices by 6.8 per cent in the last year, adding demand for its services remained “strong.” (Photo of London Stock Exchange by PA)

“Revenue momentum in the year to July 31 2023 has been robust with same-store self-storage revenue up 12.1 per cent against last year driven by continued strong demand,” chairman Andrew Jacobs said.

“We continue to deliver on our strategy of opening more new stores in the under-supplied self-storage market, adding 9.7 per cent to our owned available space in the last 12 months.

“We are on site at three further new stores, all of which will open in the 2024 financial year, and have a secured pipeline of a further eight.

“These new stores will accelerate our growth in cash flows to fund more dividends to shareholders and more growth of the business.”

The business said it had opened new sites in Bedford and Peterborough, increasing its total to 42.

“Early trading in these two stores has been very good,” Lok’nStore said.

“Building work continues at three new landmark store developments in Staines, Basildon and Kettering, all of which are expected to be open within the next 12 months.”

The business said it was spending £13.7m on adding new space. It raised £20.5m last month in order to grow its self-storage sites in what it called a “structurally under-supplied UK self-storage market.”

Prices rise at Lok’nStore as demand stays strong, business says