Stor-Age lifts interim dividend as earnings improve

Résumé détaillé

Distributable income growth was supported by higher rental rates and tight cost control.

JSE-listed Stor-Age Property Reit Limited has entered into an agreement to acquire 10 Xtraspace self-storage properties for R387.0 million, expanding its South African-owned gross lettable area (GLA) by roughly 12% as interim earnings rose across both domestic and offshore platforms.

The transaction encompasses approximately 51 800m² of GLA across Gauteng, KwaZulu-Natal, and the Western Cape. Alongside the acquisition, Stor-Age will manage six additional Xtraspace properties under the Xtraspace brand for an initial two-year period, increasing recurring management fee income.

The transaction is subject to competition authority approval and is scheduled for completion in the fourth quarter of FY27.

Reporting on trading performance for the six months ended 30 September 2026, Stor-Age delivered a 4% increase in distributable income per share to 69.04 cents, while lifting its interim dividend by 4% to 62.14 cents per share.

Gavin Lucas, CEO of Stor-Age, highlighted the geographic balance driving performance: “Off the back of strong trading in South Africa and a resilient performance in the UK, we’ve delivered another positive set of results.”

The group’s South African operations underpinned earnings growth through active rental rate escalations and solid demand. Domestic rental income increased by 9.5%, net property operating income rose 9.3%, and same-store rental income climbed 8.6%.

Closing occupancy across the owned domestic portfolio settled at 91.4%, compared to 92.1% in the prior period, reflecting a deliberate commercial choice to prioritise pricing power over absolute space absorption.

The South African joint venture portfolio, comprising seven prime properties, added 7 000m² of occupied space year-on-year to close at 84.6% occupancy.

Anticipating seasonal trading acceleration, Lucas noted: “Our South African business is well positioned as we enter our traditionally stronger summer trading period and we intend capitalising on our good position in the second half of the…

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