Stor-Age final results March 2019
Property revenue for the year increased to R524.4 million (2018: R310.2 million), operating profit rose to R352.5 million (2018: R218.4 million), profit attributable to shareholders of the company fell to R257.6 million (2018: R576.7 million), while headline earnings per share more than halved to 54.66 cents per share (2018: 162.35 cents per share).
Notice is hereby given of the declaration of the gross final dividend from income reserves (number seven) of 55.38 cents per share for the six months ended 31 March 2019 ("Cash Dividend").
We remain focussed on our core objective of delivering real and sustainable growth to shareholders, driven by outperformance in our key focus areas, namely: occupancy and revenue growth; acquisitions and new developments; and enhancing our market-leading operating platform.
For the year ahead this will require strong emphasis on active, hands-on management and disciplined operational focus at an individual property level. By its nature, self storage is a micro-managed, micro-market business in which the monthly success at a property level can be impacted by only a small margin of move-ins or move-outs. To achieve growth within the prevailing macroeconomic environment in SA and the UK will require ongoing intense scrutiny of all operational aspects of the business.
We remain confident that our highly strategic approach and specialist sector focus and expertise, combined with the defensive and resilient nature of our portfolio, will allow Stor-Age to continue delivering sustainable distribution growth. In this light the board anticipates dividend growth of 7.0-9.0% for the year ending 31 March 2020.
This guidance is based on the assumptions that there is no further deterioration in the macroeconomic environment, demand for self storage remains at its current level, electricity supply remains stable and that we will be able to absorb the rising utility costs and municipal rates charges.