Safestore Q4 2025: steady like-for-like growth and a helpful push from new stores
Safestore Holdings plc delivered a solid fourth quarter to 31 October 2025, with momentum across every market. Reported Group revenue rose 7.1% year-on-year, or 6.1% at constant exchange rates (CER), helped by both like-for-like (LFL) progress and a growing contribution from newly opened stores.
The UK continued its quarter-to-quarter recovery, Paris nudged ahead on occupancy, and the expansion markets kept up their impressive pace. Management still expects to land full-year EPS in line with consensus – 40.3p per share – with full results due on 15 January 2026.
Headline numbers investors should know
| Measure (Q4 2025) | Result | Change vs Q4 2024 |
|---|---|---|
| Group revenue | £62.0 million | +7.1% reported, +6.1% CER |
| Group LFL revenue (CER) | £59.4 million | +3.3% |
| Average storage rate (Group) | £30.84 per sq ft | +4.0% reported (+3.1% CER) |
| REVPAF (Group) | £28.85 per sq ft | +2.4% reported (+1.5% CER) |
| Closing occupancy | 6.67m sq ft (78.1% of CLA) | +4.0% sq ft; +0.1ppt rate |
| MLA / CLA | 9.28m sq ft / 8.54m sq ft | +8.0% / +3.9% |
Quick jargon buster
- CER: Constant exchange rate – removes currency swings to show underlying growth.
- LFL: Like-for-like – only includes stores open in both periods.
- MLA: Maximum lettable area – the total potential space.
- CLA: Current lettable area – MLA minus space not yet fitted out or temporarily unavailable (for example, while partitioning units).
- REVPAF: Revenue per available square foot – Safestore’s preferred economic KPI blending occupancy, pricing and ancillary sales.
UK: improving trajectory underpinned by unit partitioning and domestic demand
Like-for-like UK revenue grew 3.4% in the quarter to £42.9 million, with management citing robust domestic demand and an increase in occupied space for units under 250 sq ft. Average rate rose a healthy 6.6% LFL to £31.63 per sq ft, and LFL REVPAF advanced 5.3% to £31.06.
On the flip side, UK LFL CLA edged down 2.1% as Safestore temporarily held space for its partitioning programme. That move shrinks available space while work is done, but it improves the unit mix and helps rate – a trade-off that appears to be working. LFL closing occupancy improved slightly to 80.6% of CLA (+0.3ppt).
My take: the UK has turned a corner on pricing, which matters far more for profitability than a point or two of occupancy. The small dip in space is strategic rather than demand driven.
Paris: occupancy led growth, rate reflecting mix of newer space
Paris LFL revenue in Q4 increased 2.0% to €13.4 million, driven by higher occupancy. LFL closing occupancy rose to 84.8% of CLA (+2.1ppt). The LFL average rate was broadly stable at €42.58 per sq ft (-1.8%).
On a total basis, average rate and REVPAF declined year-on-year (rate €41.31, -4.3%; REVPAF €37.61, -4.2%) due to the mix effect of newly opened stores. That is not a red flag – new capacity takes time to mature and usually starts at lower occupancy and price.
Net-net, Paris is doing its job: adding space and filling it, with LFL economics holding up.
Expansion markets: growth engine still humming
Spain, the Netherlands and Belgium (plus income from the German associate and Italian JV) delivered standout total revenue growth of 20.8% to €7.2 million. LFL revenue rose 4.9% despite a partial offset from the timing of German JV development fees.
LFL average rate jumped 6.7% to €25.82 per sq ft and LFL REVPAF climbed 5.5% to €24.31. Closing occupancy in these markets improved strongly on a LFL basis to 79.7% of CLA (+5.3ppt). Total CLA increased 20.1% as the footprint expanded.
My view: these markets are doing exactly what investors want – scale up, fill up, and hold rate. The fee phasing noise will even out across periods.
What the latest openings mean for the model
- Four new stores opened since Q3 2025.
- Q4 added 98,900 sq ft in Paris across La Défense and Noisy-le-Grand.
- Post year end, a further 120,500 sq ft opened in November in London – Wembley and Paris – Colombes.
- MLA now stands at 9.3 million sq ft, with 6.7 million sq ft occupied as at 31 October 2025.
The development programme added 0.7 million sq ft of new MLA in FY 2025 and another 0.1 million sq ft so far in FY 2026. The RNS references a remaining pipeline of 1.0 million sq ft in the CEO’s comment, while the notes cite 1.1 million sq ft as at 31 October 2025. Either way, there is ample runway.
Why it matters: new stores initially dilute Group occupancy and REVPAF, but they are essential to compounding revenue and earnings over time. Management says the recently opened stores are performing well – which is consistent with the revenue acceleration in Q4.
Rates, occupancy and REVPAF: the moving parts
The Group’s average storage rate increased 4.0% to £30.84 per sq ft in Q4 (+3.1% CER), and Group REVPAF rose 2.4% to £28.85. Like-for-like tells the cleaner story: average rate up 4.7% and REVPAF up 4.5%. Year-to-date, REVPAF is still down 1.1% on a reported basis, but the Q4 inflection suggests the worst is behind them.
Closing occupancy reached 6.67 million sq ft, or 78.1% of CLA – broadly flat year-on-year. On a LFL basis, closing occupancy improved to 81.2% (+1.2ppt). The gap between total and LFL is the new store effect again.
Opinion: rising rates with stable-to-improving LFL occupancy is the sweet spot. If that persists into FY 2026 while the new sites lease up, margin pressure should ease.
By segment: the figures at a glance
| Segment | Q4 revenue | LFL revenue growth | Q4 average rate | Q4 REVPAF | Closing occupancy (% CLA) |
|---|---|---|---|---|---|
| UK | £43.8m (+4.9%) | +3.4% | £31.55 (+6.4%) | £30.77 (+4.7%) | 79.9% (LFL 80.6%) |
| Paris | €13.7m (+3.9%) | +2.0% | €41.31 (-4.3%) | €37.61 (-4.2%) | 81.2% (LFL 84.8%) |
| Expansion | €7.2m (+20.8%) | +4.9% | €24.23 (+1.5%) | €19.99 (-0.1%) | 67.3% (LFL 79.7%) |
Why this update matters for shareholders
- Growth is broad based. All markets contributed, with LFL revenue up 3.3% at Group level and expansion markets adding strong total growth.
- Pricing power is visible. UK LFL rate up 6.6% and Group LFL rate up 4.7% are positive reads on demand and mix.
- Operational strategy is paying off. The unit partitioning programme is improving rate and should support REVPAF as the converted space comes back online.
- Pipeline underpins future growth. 0.8 million sq ft added across FY 2025 and early FY 2026, with around 1.0–1.1 million sq ft still to come.
- Guidance steady. Management expects FY 2025 EPS to be in line with the 40.3p consensus.
Watch list into January results
- Does the Q4 LFL rate and REVPAF momentum carry into early FY 2026?
- How quickly do new Paris and London sites ramp and what is the drag on Group occupancy while they mature?
- Update on partitioning – when does CLA normalise and how much permanent rate uplift does Safestore bank?
- Any colour on the timing of German JV development fees after the phasing impact this quarter?
Bottom line
This was a clean, confidence-building quarter from Safestore. Like-for-like metrics improved, new stores contributed meaningfully, and the development pipeline remains intact. If management converts the current rate strength into sustained REVPAF growth while leasing up recent openings, FY 2026 should start on a stronger footing.
