Shares in self-storage firm Lok ‘n Store (LOK:AIM) added 1.5% to £10.28 after it posted a sharp gain in first half revenues thanks to surging demand and higher prices.
Turnover jumped 34% in the six months to the end of January driven by a 6% increase in unit occupancy and an 18.5% increase in the price per square foot of occupied space.
The firm has fully funded the roll-out of 12 new stores with five stores set to open by mid-2023. In total the 12 stores will increase letting space by almost 50%.
In addition, the company is in discussions to take on another three sites and sees plenty of opportunities to continue expanding, giving ‘considerable momentum to sales and earnings growth over the medium term’.
Demonstrating the strength of demand for commercial property, last month management agreed the sale and manage-back of four of its existing stores ‘at a significant premium’ to their July 2021 valuations.
The £37.2 million generated from the sale will be recycled into new, faster-growing sites in more attractive locations.
