Stor-Age rides pandemic storm, lifts dividend 5%

CAPE TOWN – JSE REIT Stor-Age, South Africa’s largest self-storage property fund, lifted its dividend a robust 5 percent to R1.12 a share for the year to March, in spite of the negative impacts of the Covid-19 pandemic. Most JSE-listed Reits are struggling to even declare dividends due to the impact of the pandemic.

In April and the last month, the company collected more than 93 and 98 percent of rentals in South Africa and the UK, respectively. A total of R250 million was raised in an oversubscribed book build in May. Rental income and net property operating income were up 29.7 and 34.1 percent, respectively.

Chief executive Gavin Lucas said yesterday that Stor-Age’s operational performance in both South Africa and the UK remained strong.

Stor-Age has grown its dividends every year since listing in November 2015. Assuming an investor invested R100 on listing day on June 19 this year and provided the full pre-tax dividends were reinvested, the investment would be worth R196.75 compared with the same investment in the JSE All Share Index worth R123.20 or in the SA Property Index now worth R60.69.

Since listing, the portfolio had risen from 24 properties to 71, with gross letting area almost quadrupling to 448 200m² and property value increasing from R1.3 billion to R7bn.