The shares in Safestore sharply declined despite the firm reporting a growth in the financial year as it filled up its storage units in the United Kingdom and France.
In a trading update that was released today, the company said that the revenues for the year ending October increased by 10.8 percent to 143.9 million, or 5.6 percent on a like-for-like basis.
Occupancy rates also rose to ensure that, on average, it let out 4.3m sq ft of its storage space during the financial year, an increase of 4.4 percent as compared to the previous year.
The chain has integrated the 12 stores that it acquired when it took over the Alligator Safe Storage chain for £56 million last September 2017.
Meanwhile, it opened two new storage units that are located in London and a third in Paris as it closed four in the United Kingdom.
The company said that it is expecting the openings of four new stores in the coming financial year.
The shares declined by as much as 5.5 percent to 519p today as a political fall out from the Brexit deal sparked a sell off in the sector. They were later able to recover closing down by 3 percent.
Frederic Vecchioli, the chief executive of the company, stated: “Improving trading momentum has driven a strong fourth quarter, concluding another excellent year’s performance. The Alligator portfolio of twelve stores, acquired at the beginning of the financial year, is fully integrated and performing well.”
He added: “Our strong balance sheet continues to provide the flexibility to target selected development and acquisition opportunities as they arise.”
He continued: “The company is in an excellent position and, as ever, our top priority remains the significant organic growth opportunity represented by the 1.7m square feet of currently unlet space in our existing fully invested estate.”
Vecchioli noted: “Our leading market positions in the UK and Paris combined with our resilient business model enable us to withstand any macroeconomic uncertainty that may arise over the coming months and we look forward to the future with confidence.”