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NATIONAL Storage increased revenue 46 per cent to $54.4 million in the first half of FY17, driven by organic growth and acquisition.
During the half, the company (ASX:NSR) completed the 26 centre Southern Cross storage portfolio purchase, cementing its position as Australasia's largest storage owner-operator.
Managing director Andrew Catsoulis (pictured) says the company is on track to deliver on its full year guidance of 9.2-9.4 cents per stapled security, reflecting 5.8-8 per cent growth in earnings per stapled security.
Profit after tax was $23.7 million, compared to $20.6 million the previous corresponding period. The profit reflected improved portfolio performance and an uplift in portfolio revaluation offset by costs associated with the acquisition of Southern Cross.
National Storage delivered first half revenue per available square metre (REVPAM) growth of 2.6 per cent (5.2 per cent annualised) across the operational storage business.
Same store occupancy increased 4.7 per cent in the established portfolio, and the acquisition portfolio is trading at 80.5 per cent occupancy.
Half of the company's portfolio is trading at or above 80 per cent occupancy.
"We will continue to actively manage REVPAM and balance the operational levers of occupancy and rate per square metre into FY17. We expect rate per square metre to continue to increase as we progressively manage revenue with a higher degree of granularity," says Catsoulis.
"We are clearly focused on driving increased profitability from the operating business. In addition to our intensive approach to revenue management, we have a number of broader strategies around people and engagement, product, innovation and digital transformation, all supporting the growth of our operating business."
National Storage expects full year earnings to be between $45.5-$46.6 million delivering earnings per share growth of 5.8-8 per cent on FY17.|
"We continue to focus on our three key revenue streams driving organic growth across our operating business, executing accretive acquisition opportunities, and actively managing our portfolio via development and recycling opportunities.
"The strength of our management platform and our capacity to transact and integrate assets into our portfolio provides the foundation for continued growth into 2h FY17 and beyond. We remain committed to successfully delivering organic and portfolio growth into FY18 to maximise returns for our security holders.
National Storage will pay an interim dividend of $0.046 per share. The company is trading down 0.34 per cent at 11.15am AEDT this morning, at $1.450 per share.
Business News Australia
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