Real estate investment trust (Reit) Stor-Age, which listed on the JSE in November 2015, on Tuesday declared a dividend of 43.04c for the six months to September 30, outperforming the prospectus forecast by more than 6%.

The Reit owns and operates a portfolio valued at R1.4-billion, comprising 24 self-storage properties covering 183 000 m² across South Africa.

Rental income for the interim period was R75.6-million.

The occupancy level improved to 86% for the six months under review, with the average rental rate up 10% year-on-year to R79.90/m².

“Self-storage is a ‘needs-based’ product and the need prevails in all cycles. People are always experiencing life-changing events and require flexibility; for instance when performing renovations at home or moving. Likewise, businesses always require flexible space options – whether they are upscaling or downscaling,” CEO Gavin Lucas said in a statement on Tuesday.

During the six months under review, the group continued to roll out its more than R500-million development pipeline with a new flagship facility in Sunninghill, Gauteng, which opened in September. 

“The new R85-million state-of-the-art self-storage property marks the next phase of Stor-Age’s organic growth in Gauteng as it signals the group’s debut into the high-density northern suburbs,” said Lucas.

Expansions of the Gardens and Durbanville properties, in Cape Town, are nearing completion and two further new high-profile stores will come online shortly near the Gillooly’s interchange, in Gauteng, and in Berea, in KwaZulu-Natal.

In aggregate, these developments will boost the portfolio by 29 000 m².

Lucas said that while the interim results and pipeline progress were indeed pleasing, he was excited by the near finalisation of the acquisition of Storage RSA Investments’ property portfolio. 

This will add 39 500 m² to Stor-Age’s portfolio in Gauteng and Cape Town with the opportunity for an additional new development in Bryanston, Gauteng. 

Stor-Age has also concluded negotiations for an additional transaction that will see the group acquire a property currently operated under the RSA brand under licence. 

“RSA presents Stor-Age with the rare opportunity to buy South African self-storage properties that complement the location, scale and quality of Stor-Age’s existing portfolio.”

Lucas added that the acquisition was in line with the group’s strategy of consolidating its position through value-added acquisitions in a fragmented industry and bore testament to the excellent relationships built with industry peers over the last decade. 

“The acquisition will bulk up our balance sheet in addition to our trading footprint,” he noted.