24Storage - Eventful quarter – proceeding towards targets
Rental income per lettable sqm SEK 2,065 (2,028 in Q4) EPRA NAVPS increased 5% y-o-y, to SEK 40. 5 P/EPRA NAVPS last reported of 110%, in line with sector Above 10,000 sqm of lettable area to be added in ‘21e Total lettable area expanded by 2,600 sqm in Q1, as the new facility in Vällingby opened. The quarter saw an additional 228 storage units let, compared to 111 in Q1’20. Rental income per lettable sqm increased to SEK 2,065 (2,028 in Q4 and 2,008 Q1’20), explained by higher prices as an effect of improved maturity in the facilities.
RevPAM (revenue per average sqm) grew by 4. 5% y-o-y, to SEK 1,423. In March, a new 4,200 sqm facility in Mölndal (by Gothenburg) was announced and construction began, with expected completion in Q3.
Just after the end of Q1, (6 April), 24Storage acquired another 4,600 sqm facility in Gothenburg, with opening at the turn of ‘21/22. Nevertheless, as 4,000 sqm in Västerås will open in the autumn, the target of 10,000 sqm added p. a.
should be met with a good margin for 2021. Positive EBIT figures from Q3’21 Investment properties saw value uplifts of 0. 75%, in line with our expectations.
EPRA NAVPS increased to SEK 40. 7, a notch above ABGSCe of SEK 40. 5 and up 4.
9% y-o-y. Consequently, our annual value growth estimate of 3. 5% in ’21-’23 remains intact.
The negative EBIT came down quite significantly, to SEK -1. 9m, in Q1. We expect positive EBIT figures from Q3 this year.
We have updated our forecasts for ’22-’23 to follow a more likely growth trajectory. The distinct deviations for ‘21e are mainly technical, as we now report other income alongside rental income, which we did not do previously. ‘21e P/EPRA NAVPS implies valuation range of SEK 34-54 24Storage is trading at a P/EPRA NAVPS (last reported) of 110%, which is in line with the sector average and just above its historical average of 107%.
We base our valuation range on a P/EPRA NAVPS of 85%-145%, which corresponds to 24Storages’s historical min. and.
