Safestore Holdings

Safestore Holdings Dividend Analysis and Summary

• Final dividend (FY25): 20.60p per share
• Total FY25 dividend: 30.70p (up 1% year-on-year)
• Ex-dividend date: 12/03/2026
• Record date: 13/03/2026
• Payment date: 14/04/2026
• Dividend composition: Final PID element 10.30p; Total FY25 PID 12.83p
• Dividend cover (Adj. Diluted EPRA EPS 40.3p): ~1.31x (FY24: ~1.39x)
• Cash coverage: Net operating cash flow £99.9m vs dividends paid £66.6m (FY25)
• Policy: Progressive dividend; Board aims to rebuild dividend cover over the medium term

• Coverage: Earnings cover slipped to ~1.31x as Adj. Diluted EPRA EPS fell 4.7% to 40.3p while DPS rose 1%. Cash generation remains robust, with operating cash comfortably covering dividends (~1.5x).
• Balance sheet and covenants: LTV increased to 28.1% (from 25.1%) but remains below the Board’s 30–40% target range; ICR at 4.0x shows solid headroom. Average cost of debt is 3.46%.
• Outlook support: Management guides to a return to EPS growth in FY26, with fewer new openings (reduced earnings drag) and an ongoing pipeline expected to add £35–£40m of EBITDA upon stabilisation. LFL cost growth is moderating and net finance costs are only expected to rise by £1–£2m in FY26.
• Capital allocation: Ongoing capex (£86m FY26) is funded predominantly via debt; undrawn RCF headroom of £152.2m and low LTV support the dividend while growth capex continues.
• Trajectory: With DPS growth kept modest at 1%, the policy remains prudent until earnings rebuild. Provided guidance is met, cover should stabilise/improve, underpinning a progressive payout.