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Stor-Age increased its dividend for the year to end-March as strong growth in South Africa offset slower growth in its UK operations.The company on Tuesday declared a final dividend of 56.62c per share, taking the full-year payout to 116.36c, up 5.1% year on year. Distributable income per share rose 5.1% to 129.29c, while distributable earnings increased 8.4% to just more than R578m.In South Africa, rental income increased 10.5% and net property operating income rose 11.1%, supported by occupancy of 93.4%. In the UK, rental income increased 1.1% while net property operating income fell 0.8%, with occupancy at 81.6%.During the year, Stor-Age expanded its South African portfolio through acquisitions, including Lock-Up Storage for R95m, Execustore for R59m and West Coast Storage for R46.5m. It also secured a new development site in Maitland.The development pipeline includes a R260m project in De Waterkant, with expansions at Melrose and Sunningdale. In the UK, the group is progressing developments in Acton, Chelmsford and Aylesbury alongside management contracts with external property owners.The portfolio comprises 110 properties across South Africa and the UK valued at R19bn and serving more than 57,000 customers.The group’s South African portfolio had a loan-to-value ratio of 26.7%, meaning debt accounts for just more than a quarter of the value of its properties. It also raised R500m in equity during the year by issuing shares at a price above the underlying value of its assets per share.The company said it expects distributable income per share to increase about 5% in the 2027 financial year, assuming stable demand conditions.Stor-Age’s shares fell the most in about two years, down 3.97% to R16.70.Rand Swiss senior market analyst Shaun Murison said the market reaction was linked to expectations about growth and capital allocation.“Distributable income per share growth of 5.1%, with full-year ’27 guidance of 5% looks to have underwhelmed a market that may have priced in a more positive result and outlook,” he said.“The dilutive effect of December’s R500m equity raise and a capital-intensive development pipeline still need to prove their worth,” he said.
