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Stor-Age put itself in a box and took the market with it


Stor-Age put itself in a box and took the market with it

Since listing at R9.95 in 2015, the share price has risen by 39% to about R14 in 2019

Chris Gilmour

Listing on the JSE in 2015, Stor-Age has decently outperformed the general property index, with this sector experiencing weak times, seeing its large index component, Resilient, spectacularly falling from grace. Stor-Age is the leader in self-storage in SA by quite a large margin, with management refusing to compromise on both quality or strategic location of properties, with its big red property branding highly visible to existing and potential customers. Sitting in a niche asset class uncorrelated to the traditional drivers of property, it appears to be respectively recession-resistant.

Structured as a specialised Real Estate Investment Trust, it offers customers the ability to store possessions in a clean, secure, easily and always accessible location, plus additional services of van hire and packaging materials. Its total property value is R6bn across SA and the UK, in a growth sector that has high barriers to entry in terms of finding premium-grade locations in prime urban and suburban areas.

About 80% of Stor-Age business comes from individual, rather than commercial, customers. Reasons for personal storage demand include events such as family bereavement, divorce, relocation, renovating and downsizing...

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