Proven Model

Competitive Advantages

• Greatest number of properties and the largest footprint by GLA in South Africa and the fifth largest self storage brand in the UK
• Sector and market leading position in the South African industry
• Most recognised brand in South Africa and the only brand with a national footprint
• Fastest growing self storage business in South Africa
• Significant growth in the UK market through Storage King
• Diversified tenant risk (52 800 + tenants across South Africa and the UK)
• Successful track record of managing a ‘mature portfolio’ and acquiring existing stores, whilst integrating them seamlessly into the trading portfolios
• History of securing greenfield sites in high profile locations, developing new properties on time and budget, and successfully managing new properties through their ‘lease-up’
• Highly focused executive management team with an established track record in the self storage sector, supported by experienced and talented senior management teams in South Africa and the UK
• Track record of successfully raising capital, enabling the Company to further expand the portfolios in South Africa and the UK in line with multi-year growth strategies
• Investment into sustainable technology to support business efficiency
• Sophisticated web and digital platforms providing significant prospects in South Africa and the UK
• Google and META partner accreditation, allowing the Company to remain at the forefront of online enquiry generation and to optimise digital sales processes
• Outstanding customer service as measured by our NPS score of 80 in South Africa and 68 in the UK¹
• Significant pipeline of new development sites in prime locations in South Africa and the UK
• Strong balance sheet and established relationships with leading commercial property financiers
• Significant barriers to entry to the market:
  • Properties located in desirable nodes
  • Sophisticated operations platform
  • Ability to secure high profile sites and manage them through the town planning process
  • Expertise to develop small foot-print/multi-storey properties and successfully navigate them through the lease-up phase of the asset's life-cycle

Excellent Growth Opportunities

Our strategic planning has shown that there are continued growth prospects in the South African and UK markets. An additional benefit is the investment committee’s inherent ability to assess the merits of new growth opportunities against the well-defined strategy. The Group’s operating and sector skill is highly specialised, the product nature across countries is homogenous, and there is a relative undersupply in many European countries with many self storage businesses still privately owned.

The Company has a core focus on driving cash flow growth across the portfolio in South Africa and the UK of both ‘mature’ and ‘lease-up’ stores, with specific attention to yield in the ‘mature’ portfolio and occupancy in the ‘lease-up’ portfolio. Stor-Age will continue to expand the portfolio through both acquisition and development, which is forecast to remain at the current pace in the medium-term.

Growing Income Streams

• Currently 52 800 + tenants
• Average length of stay for existing customers in South Africa is 26.5 months and 32.4 months in the UK
• In South Africa, approximately 56% of customers stay > 1 year
• In the UK, approximately 56% of customers stay > 1 year
• Low bad debt expense

Robust Earnings Outlook

• Excellent operating margins and operational advantage in the South African and UK markets
• Low technology obsolescence product
• Low long-term capex obligations relative to traditional commercial property sectors
• Outstanding growth in both rental rate and occupancy y-o-y translating into attractive and growing earnings
• Inclusion in various South African (JSE) and international emerging market indices

Attractive Sector Dynamics

• Resilient through economic downturns and robust in the good times
• Limited new supply coming onto the market in key urban areas in South Africa
• Sector growth is positive, with increases in domestic demand in South Africa and the UK
• Growth in South Africa’s new black middle class is helping drive demand
• Middle class South African’s desire to live within gated security estates (and thus the smaller dwelling sizes) is contributing to additional demand
• Supply/penetration levels in desired nodes in South Africa remains low
• Underlying sector fundamentals remain strong