Self-storage company Lok’n Store Group Plc (LON:LOK) (LOK.L) has released a trading update today for the first half of its financial year. Trading continues to be strong, with January 2018 delivering the highest ever level of new storage sales enquiries in a single month.
In the company’s core self-storage business, LFL revenue was up 6.9% in H1. Self-storage unit occupancy as at the end of January was up 6%, with price per let square foot rising by 0.4% versus the same date a year earlier.
The company’s pipeline suggests that more growth could be ahead. It opened a store in Gillingham last month and recently acquired a new site in Bournemouth. Its new landmark store in Wellingborough will open in March, with further stores due to be opened by the end of the 2019 financial year.
The company appears to be upbeat regarding its future prospects, with demand for its services continuing to show growth potential for the long term.
In the last year the Lok’n Store share price has fallen 18%. That’s a worse performance than other property-related companies such as Big Yellow Group plc (LON:BYG) (BYG.L), Berkeley Group Holdings PLC (LON:BKG) (BKG.L) and Purplebricks Group PLC (LON:PURP) (PURP.L). Big Yellow Group is up 20%, Berkeley Group has gained 30% and the Purplebricks share price has risen 95% during the same one year time period.
In my view, Lok’n Store is making good progress with its strategy. It appears to have the financial resources to deliver on its pipeline, and this could have a positive impact on its overall financial performance in future years.
I’m optimistic about the prospects for the self-storage industry. I believe it could see continued demand growth in future, while the property industry could also have a bright outlook in my opinion. Therefore, I’m optimistic about the potential for a share price turnaround in future.