Safestore Holdings plc Annual report and financial statements 2023

Annual

Report

2023

Safestore Holdings plc

Annual report and financial statements 2023

Contents

Overview

1 Highlights

2 Financial highlights

4 About us

5 Investment case

Strategic report

6 Chairman’s statement

8 Chief Executive’s statement

20 Financial review

32 Engaging with our stakeholders

andourSection 172(1) statement

35 Principal risks

42 Viability statement

43 Compliance with Task Force on Climate-

related Financial Disclosures (“TCFD”)

44 Sustainability

Corporate governance

78 Introduction to corporate governance

80 Board of Directors

82 Corporate governance

87 Nomination Committee report

89 Audit Committee report

93 Directors’ remuneration report

122 Directors’ report

126 Statement of Directors’ responsibilities

Financial statements

127 Independent auditor’s report

134 Consolidated income statement

134 Consolidated statement

ofcomprehensiveincome

135 Consolidated balance sheet

136 Consolidated statement of changes

inshareholders’ equity

137 Consolidated cash flow statement

138 Notes to the financial statements

170 Company balance sheet

171 Company statement of changes

inequity

172 Notes to the Company

financialstatements

176 Glossary

178 Directors and advisers

am pleased that 2023 has been a resilient year of significant

strategic and operational progress building on two years of

outperformance in which we delivered total like-for-like

revenue

growth of over 30.3% and Adjusted Diluted EPRA EPS growth

of57.3%.

The Group’s industry leading REVPAF

grew by 1.9% on a like-for-like

basis whilst total Group revenue grew by 5.5% reflecting recently added

new stores and the annualisation effect of our acquisition of the

Benelux business.

We have made excellent strategic progress during the year having

opened, acquired or extended thirteen stores across three countries,

adding c. 500,000 sq ft of MLA to the portfolio. In addition, we have

grown the development pipeline to a further 1.5 million sq ft across

30projects which represents 18% of the existing MLA of the business

and will contribute £25–30 million upside to EBITDA upon stabilisation.

Following our previous successful JV with Carlyle, we partnered again

to facilitate the Group’s entry into the under-penetrated German

market and the integration of our Benelux business, acquired in 2022,

is now complete.

Our strong and flexible balance sheet was significantly enhanced by

the agreement of an unsecured four-year £400 million multi-currency

RCF at the beginning of the year which increases funding capacity,

allowing us to continue to consider strategic, value-accretive

investments as and when they arise.

Importantly, the underlying fundamentals of the European self storage

industry with limited supply, strong barriers to entry and a steadily

growing product awareness are as strong as ever. We believe that

theCovid-19 period has acted as an accelerator of growth for the

stillrelatively immature self storage industry.

Whilst demand (as measured by enquiry growth) stabilised during the

year at a level that is below2022, we are still seeing enquiry levels that

are ahead of the pre-Covid period.

Over the last ten years, Safestore has delivered an industry leading

16% CAGR of its Adjusted Diluted EPRA EPS. During that period,

weexpanded our geographical reach to six European countries

leveraging and improving our platform and central functions while

carefully managing investment risk. I’m confident that Safestore

willcontinue to play a leading role in the development of the

self storage industry across Europe, delivering significant further

valueto its stakeholders.

Our industry leading business model remains unchanged and we

have substantial EPS growth to deliver, both from filling the 1.9 million

sq ft of fully invested, currently unlet space, and from the new sites

and expansion of existing sites in our pipeline, across major cities in

the UK and continental Europe. Safestore has a proven track record,

and as the returns we deliver are significantly ahead of our cost of

debt, we look to the future with confidence.

Finally, I would like to thank all our colleagues in the UK, France, Spain,

the Netherlands and Belgium for their commitment and loyalty in 2023.

We are appreciative of their efforts.

Frederic Vecchioli

Chief Executive Officer

Overview

A year of significant

strategic progress

Learn more about our Sustainability frompage44

Learn more about our Corporate Governance from page 78

Revenue (£’m)

£224.2m

+5.5%

186.821

162.320

151.8

143.9

212.5

224.2

Dividend (pence per share)

30.10p

+1.0%

25.1021

18.6020

17. 50

16.25

29.80

30.10

118.021

93.920

87.5

82.9

135.1

142.2

Underlying EBITDA

(£’m)

£142.2m

+5.3%

Highlights

Financial performance

• Group revenue for the year up 5.5% (up4.8% in CER

)

• Like-for-like

Group revenue for the year in CER

up 1.7%

• Underlying EBITDA

up 4.5% in CER

which, combined with

a reduced gain on investment properties of £93.8 million

(FY2022:£381.6 million), resulted in statutory operating profit

of£230.4 million (FY2022: £514.5 million)

• Strong cost control with like for like costs increasing 0.3% on

a CER basis

• Adjusted Diluted EPRA Earnings per Share

up 0.8% at 47.9 pence

(FY2022: 47.5 pence)

• 1% increase in the dividend for the year to 30.1 pence

(FY2022:29.8 pence) in line with our progressive policy

Strategic progress

• New stores or acquisitions adding c.500,000 sq ft of new MLA

across thirteen projects in the financial year (fivein the UK, six in

Spain and two in theNetherlands)

• Total Group development and extension pipeline increased to 30

projects and 1.5million sq ft representing c. 18% of the existing

portfolio providing £25–£30 million of future EBITDA at stabilisation

• Purchases of the freehold interests of two stores in Barcelona and

West Birmingham

• Lease extensions completed for four stores in Edinburgh,

London- Charlton, London- Slough and Burnley

• Successful integration of Benelux acquisition

• Entry into German market via a new Joint Venture

(“JV”) with

Carlyle which has acquired the seven-store myStorage business

with 326,000 sq ft of MLA

Key Performance Indicators

129.9

14.00

74.4

Strong and flexible balance sheet

• 9.3% increase in property valuation (including investment properties underconstruction)

• 4.8% increase in EPRA basic NTA per share to £9.52 (FY2022: £9.08)

• New ESG linked Revolving Credit Facilities (“RCFs”) completed in November 2022 withan increased £400 million unsecured multi-currency

four-year facility (with two one- year extension options, the first of which has been completed recently).Margins remain at 1.25% in line with

previous RCFs and all facilities, including Private Placement Notes, are unsecured

• Approximately £200 million of headroom under the RCF plus £100 million accordion facility

• 73% of debt at fixed interest rates with tenors from 2024 to 2033

• Group loan-to-value ratio (“LTV”

) at 25.4%, calculated on net debt (31October2022: 23.6%) and interest cover ratio (“ICR”

) at 6.7x

(31October2022: 10.4x)

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2023

Key measures

Year ended

31 October

2023

Year ended

31 October

2022 Change Change – CER

Underlying and operating metrics – total

Revenue (£’m) 224.2 212.5 5.5% 4.8%

Underlying EBITDA (£’m) 142.2 135.1 5.3% 4.5%

Closing Occupancy (let sq ft – million) 6.231 6.317 -1.4% n/a

Closing Occupancy (% of MLA) 77.0% 82.1% -5.1% n/a

Maximum Lettable Area (MLA)

8.09 7.70 5.1% n/a

Average Storage Rate (£) 30.26 29.25 3.5% 2.7%

Adjusted Diluted EPRA Earnings per Share (pence) 47.9 47.5 0.8% n/a

Free Cash Flow (£’m) 89.2 101.4 -12.0% n/a

EPRA Basic NTA per Share (£) 952 908 4.8% n/a

REVPAF (£)

27.70 27.59 0.4% -0.2%

Underlying and operating metrics – like-for-like

Revenue (£'m) 209.9 205.3 2.2% 1.7%

Underlying EBITDA (£'m) 136.1 131.6 3.4% 2.8%

Closing Occupancy (let sq ft – million) 5.583 5.793 -3.6% n/a

Closing Occupancy (% of MLA) 79.6% 82.8% -3.2% n/a

Average Occupancy (let sq ft – million) 5.586 5.779 -3.3% n/a

Maximum Lettable Area (MLA)

7.02 7.00 0.3% n/a

Average Storage Rate (£) 31.57 29.89 5.6% 5.0%

REVPAF (£)

29.91 29.34 1.9% 1.4%

Statutory metrics

Operating profit (£’m) 230.4 514.5 -55.2% n/a

Profit before tax (£’m) 207.8 498.8 -58.3% n/a

Diluted Earnings per Share (pence) 91.8 212.4 -56.8% n/a

Dividends per Share (pence) 30.1 29.8 1.0% n/a

Cash inflow from operating activities (£’m) 498.0 109.8 -10.7% n/a

Basic net assets per share (pence) 888 848 4.7% n/a

Safestore Holdings plc | Annual report and financial statements 2023

Financial highlights

Notes to Highlights, Financial highlights, Chairman’s statement and Chief Executive’s statement

We prepare our financial statements using IFRS. However, we also use a number of adjusted measures in assessing and managing the performance of the business. These measures are

not defined under IFRS and they may not be directly comparable with other companies’ adjusted measures and are not intended to be a substitute for, or superior to, any IFRS measures

of performance. These include like for like figures to aid in the comparability of the underlying business as they exclude the impact on results of purchased, sold, opened or closed stores

and constant exchange rate (“CER”) figures are provided in order to present results on a more comparable basis, removing FX movements. These metrics have been disclosed because

management reviews and monitors performance of the business on this basis. We have also included a number of measures defined by EPRA, which are designed to enhance transparency

and comparability across the European Real Estate sector; see notes 6 and 13 below and ‘Non-GAAP financial information’ in the notes to the financial statements.

1 CER is Constant Exchange Rate (Euro denominated results for the current period have been retranslated at the exchange rate effective for the comparative period. Euro denominated

results for the comparative period are translated at the exchange rates effective in that period. This is performed in order to present the reported results for the current period on a more

comparable basis).

2 Underlying EBITDA is defined as Operating Profit before exceptional items, share-based payments, corporate transaction costs, change in fair value of derivatives, gain/loss on investment

properties, variable lease payments, depreciation and the share of associate’s depreciation, interest and tax. Underlying EBITDA therefore excludes all leasehold rent cost charges.

Underlying profit before tax is defined as Underlying EBITDA less leasehold rent cost, depreciation charged on property, plant and equipment and net finance charges relating to bank

loans and cash.

3 Occupancy excludes offices but includes bulk tenancy. As at 31 October 2023, closing occupancy includes 18,000 sq ft of bulk tenancy (31 October 2022: 24,000 sq ft).

4 MLA is Maximum Lettable Area. At 31 October 2023, Group MLA was c. 8.09 million sq ft (FY2022: c. 7.70 million sq ft).

5 Average Storage Rate is calculated as the revenue generated from self storage revenues divided by the average square footage occupied during the period in question.

6 Adjusted Diluted EPRA EPS is based on the European Public Real Estate Association's definition of Earnings and is defined as profit or loss for the period after tax but excluding corporate

transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further adjustments for the impact of

exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted number of shares. The IFRS 2

cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element). Therefore neither the Company’s

ability to distribute nor pay dividends is impacted (with the exception of the associated National Insurance element). The financial statements will disclose earnings on a statutory, EPRA

and Adjusted Diluted EPRA basis and will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest.

7 Free cash flow is defined as cash flow before investing and financing activities but after leasehold cost payments.

8 Like-for-like adjustments remove the impact of the 2023 acquisition of Apeldoorn, the 2023 openings of Wigan, London-Morden, Ellesmere Port, North Barcelona, South Barcelona,

Central Barcelona 3, South Madrid, North Madrid, East Madrid, Nijmegen, and Amersfoort, the 2022 acquisition of the Netherlands and Belgium Joint Venture, the 2022 acquisition of

Christchurch, and the 2022 openings of London-Bow and Central Barcelona.

9 Operating profit decreased by £284.1 million to £230.4 million (FY2022: £514.5 million) principally as a result of a decrease in the gain on investment properties of £287.8 million to

£93.8million (FY2022: £381.6 million), as well as an increase of £7.1 million or 5.3% in Underlying EBITDA as a result of stronger trading performance. Profit before income tax in FY2022

additionally included exceptional items of £10.8 million, being other exceptional gains. This included £5.5 million relating to the valuation gain of the 20% equity investment held in the Joint

Venture with CERF, when the Group acquired the remaining 80% on 30 March 2022 and £5.1 million relating to the net gain on disposal of the Paris-Nanterre site in November 2021.

10 REVPAF is an alternative performance measure used by the business. REVPAF stands for Revenue per Available Square Foot and is calculated by dividing revenue for the period by

weighted average available square feet for the same period.

11 LTV ratio is Loan-to-Value ratio, which is defined as gross debt (excluding lease liabilities) as a proportion of the valuation of investment properties and investment properties under

construction (excluding lease liabilities). At 31 October 2023, the Group LTV ratio was 25.4%, calculated on a net debt basis.

12 ICR is interest cover ratio and is calculated as the ratio of Underlying EBITDA after leasehold costs to net interest payable.

13 EPRA basic NAV was superseded and transitioned to three new measures: EPRA Net Reinstatement Value (“NRV”), EPRA Net Tangible Assets (“NTA”) and EPRA Net Disposal Value

(“NDV”) for periods commencing 1 January 2020 or thereafter. Safestore considers EPRA NTA to be the most consistent with the nature of the Group’s business. The basis of calculation,

including a reconciliation to reported net assets, is set out in note 11 of the Financial Statements.

14 In 2019, Safestore entered a strategic arrangement with Carlyle to enter the Benelux market, with an investment of 20%. This arrangement represented a Joint Venture and has been

referred to as such. On 30 March 2022, the Group acquired the remaining 80% of the Joint Venture with CERF. Prior to acquiring the 80%, the Joint Venture with CERF, which represented

a 20% investment, was accounted for as an associate using the equity method of accounting, as described in the ‘Investment in associates’ note to the financial statements.

15 On 1 December 2022, the Group made an initial investment into a new Joint Venture with Carlyle, to enter the German self storage market, of c. €2.2 million for a 10% share. The Group

will also earn a fee for providing management services to the Joint Venture.

16 Store Protect has replaced our customer goods insurance programme from 1 November 2023, attracting VAT rather than Insurance Premium Tax (“IPT”). When comparing the first two

months of the 2024 financial year, the 2023 comparative included revenue of £0.4 million representing 12% IPT on insurance sales for the two months. For 2024, VAT is not included in the

revenue. The overall impact of these changes is neutral at EBITDA. With the LFL revenue figure adjusted to remove the IPT from the prior year, LFL revenue is down 0.6%. Including the IPT

in revenue in the prior year would result in a variance of -1.6%.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Wholly owned business Managed on behalf of Joint Venture

6 countries

751

753 colleagues

179

190 stores

7.7m

8.09m sq ft Maximum

Lettable Area

Our business model

We acquire, develop and operate sustainable self storage assets in attractive European markets

Read more on pages 32 to 34

Our environment

Protect the planet from our

activities; and manage risks to our

business from climate change

Safestore Holdings plc | Annual report and financial statements 2023

About us

Who we are, what we do

Safestore has a proven track record in long term value creation.

Thebusiness model remained resilient during the global financial crisis

and the Covid-19 pandemic, with a leading presence in London, Paris,

and key markets within the self storage sector. Thisisunderpinned by

developing profitable and sustainable spaces that allow individuals,

businesses, and local communities to thrive.

Strategic benefits of scale

• In-house expertise and scalable

marketingtechnology

• Systems and pricing analytical capacities

• UK Leading National Accounts offering

Strong cash generation

• Scalable platform able to finance

development and acquisition opportunities

• Intelligent use of working capital, positive

operating cash flow, strong and flexible

capital structure, and quality income-

generating assets

• Strong dividend growth

Quality of earnings

• Diversified income stream from

90,000 customers

• Existing customers from prior years driving

70% to 80% of revenue

• High margins – low break-even

• Low maintenance CAPEX

Unique portfolio

• European leading platform

• Leading positions in key

‘space- constrained’ European cities

• Unlet invested space equivalent to

around90 stores including pipeline with

further development

• Growth potential in UK/France and further

expansion in the Netherlands, Belgium,

German, and Spanish markets

Attractive market

• Under-supplied and growing industry

• Significant barriers to entry – constrained

supply of attractive locations

People

• A diverse community of well-trained,

motivated and engaged colleagues

• Investors in People Platinum

accreditation awarded

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Investment case

How we create value

“Our purpose remains simple – to add

stakeholder value by developing profitable

and sustainable spaces that allow individuals,

businesses and local communities to thrive.”

David Hearn

Chairman

he last year has demonstrated Safestore’s resilience and

significant strategic and operational progress, after two

exceptional years over which the Group delivered 57%

growth in Earnings per Share. After four years in the role,

Icontinue to be impressed by the dedication and resilience

of the store, property development and Head Office teams which have

been instrumental in delivering this progress.

Our purpose remains simple: to continue to add stakeholder

value by developing profitable and sustainable spaces that allow

individuals, businesses and local communities to thrive. Our strategy

is underpinned by our values, our behaviours and our governance

structure which shape our culture and remain central to the way we

conduct our business.

I would like to take this opportunity to congratulate all my colleagues

throughout the Group for their exceptional contributions this year.

Strategic progress

Management’s first priority remains to maximise the economic return

on our existing store portfolio and its 1.9 million sq ft of fully invested

unlet space, building on the significant operational improvements made

over the current management team’s tenure.

In addition to improving returns from our existing portfolio, the Group

has continued to make significant strategic progress in expanding its

presence across Europe through a combination of new store openings

and acquisitions. The Group has now acquired 47 and opened 31

stores over the last seven years and all are performing in line with

or better than their original business cases. Our Spanish business,

acquired as a four-store portfolio in 2019, now has eleven open stores

and a further five in the pipeline. Our Benelux business which was

acquired in 2022 is now fully integrated into the business and has

a pipeline of a further five stores. Overall, we have a development

property pipeline of an additional 1.5 million sq ft of MLA, which

provides significant future opportunity for the business and underpins

our continued growth.

Our Joint Venture

with Carlyle in Germany provides us an exciting

platform to gain exposure to a new attractive geography and I believe

that Safestore’s highly scalable platform will allow us to take advantage

of further opportunities in due course.

The establishment, in November 2022, of a £400 million unsecured

multi-currency RCF at attractive margins offers us significantly greater

strategic flexibility to support these growth plans.

Financial results

Revenue for the year was £224.2 million, 5.5% ahead of last year

(FY2022: £212.5 million), or 4.8% ahead on a constant currency basis.

Like-for-like

revenue was up 1.7% in constant currency.

The growth in like for like revenue, combined with strong cost control

despite the challenging inflationary environment, was particularly

encouraging, delivering a further improvement in like for like

margins. On a total basis, Underlying EBITDA

increased by 5.3% to

£142.2 million (FY2022: £135.1 million) and on a constant currency

basis by 4.5%.

Statutory operating profit reduced by £284.1 million to £230.4 million

in 2023 (FY2022: £514.5 million), reflecting a lower investment property

gain in 2023 combined with the increase in Underlying EBITDA

and a

reduction in the share-based payments charge.

Adjusted Diluted EPRA Earnings per Share

grew by 0.8% to 47.9

pence (FY2022: 47.5 pence). Adjusted Diluted EPRA Earnings per

has grown by 37.2 pence or 348% over the last ten years.

Statutory Diluted Earnings per Share decreased to 91.8 pence

(FY2022: 212.4 pence) as a result of the reduced gain on valuation of

investment properties, offset by an increase in Adjusted Diluted EPRA

Earnings per Share

The Group’s balance sheet remains robust with a Group LTV

ratio of

25.4%, calculated on net debt (FY2022: 23.6%) and an ICR

of 6.7x

(FY2022: 10.4x) leaving considerable headroom against our banking

covenants and internal thresholds. This represents a level of gearing

we consider appropriate for the business to enable the Group to

increase returns on equity, maintain financial flexibility and achieve our

medium term strategic objectives.

Finally, this year’s results consolidated a sustained period of excellent

performance by the Group. Over the last ten years, the management

and store teams have delivered a total shareholder return of 607.9%,

ranking at number one in the UK property sector. Since flotation in

2007, Safestore has also delivered the highest total shareholder return

of any UK listed self storage operator.

Safestore Holdings plc | Annual report and financial statements 2023

Chairman’s statement

ESG

Away from the financial results, I am pleased with the progress the

Group has made with its ESG strategy.

Even though Safestore already has one of the lowest environmental

impact profiles of any company within the overall property sector,

we have continued to focus on our environmental agenda, with

year-on-year reductions in greenhouse gas emissions and enhanced

disclosures in recognition of the recommendations of the TCFD. I am

pleased to report that we have retained a Silver rating in the 2023

EPRA sustainability awards, an ‘A’ rating for public disclosures by

GRESB, an ‘AA’ rating for ESG by MSCI and the highest rating of five

stars by Support the Goals.

In addition, we have demonstrated our commitment to our ESG

agenda by linking the margin on our £400 million bank facility to

ESG related KPIs agreed with our lending group. Details of these

achievements are covered more fully in the Chief Executive’s

statement and the sustainability section of our Annual Report.

Board changes

During the year, Ian Krieger, our Senior Independent Director and

Audit Committee Chair, has confirmed his intention to step down at

the 2024 AGM. I would like to thank Ian for his excellent contribution

over the last ten years. Jane Bentall will take over as Chair of the

AuditCommittee.

I have also been pleased to welcome Avis Darzins to the Board

in the period. Avis has over 20 years of senior executive level and

management consulting experience in the retail, entertainment and

media sectors, specialising in customer experience, strategy and

business transformation and I look forward to working with her.

Finally, Andy Jones, our Chief Financial Officer, notified the Board

of his intention to retire from his role as Chief Financial Officer and

as a Director of the Company. Andy will continue in his role until the

transition to his successor is complete and an external search for

Andy’s replacement is underway. For over ten years, Andy has been

instrumental in helping deliver the Company's strategy, significantly

expanding its store portfolio and entering four additional geographies.

During his career with Safestore, he has overseen a period of sector

leading growth and shareholder returns and I’d like to thank Andy for

his outstanding contribution and to wish him well for the future.

Dividend

Reflecting the Group’s progressive dividend policy, the Board is

pleased to recommend a final dividend of 20.2 pence per share

(FY2022: 20.4 pence) resulting in a full year dividend up 1% to 30.1

pence per share (FY2022: 29.8 pence).

Over the last ten years, the Group has grown the dividend by 423%

or24.4 pence per share during which period the Group has returned

to shareholders a total of 180.1 pence per share. The total dividend

for the year is covered 1.59 times by Adjusted EPRA Diluted Earnings

(2022: 1.59 times). Shareholders will be asked toapprove the dividend

at the Company’s Annual General Meeting on13 March 2024 and,

if approved, the final dividend will be payable on 9 April 2024 to

shareholders on the register at close of business on 7 March 2024.

Summary

In conclusion, the Board remains confident in the future growth

prospects for the Group and will continue its progressive dividend

policy in 2024 and beyond. In the medium term it is anticipated that

the Group’s dividend will grow at least in line with Adjusted Diluted

EPRA Earnings per Share

David Hearn

Chairman

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

he Group has delivered a resilient performance in 2023and

has made significant strategic and operational progress.

In 2023, the Group delivered 0.8% growth in Adjusted

Diluted EPRA Earnings per Share, which, if calculated on

a like for like basis, grew by 3.3%. Total Group revenue

increased by 5.5% (4.8% CER

) with the UK up 2.1%, Paris up 3.5%,

Spain up 19.4%, the Netherlands up 100% and Belgium up 78.3%.

Resilient performances in the UK and Paris were complemented

by new store driven growth in Spain and the annualisation of our

ownership of the Netherlands and Belgium businesses. On a

like- for- like

basis in CER

, Group revenue increased by 1.7% with the

UK up 1.2%, Paris up 3.5% and Spain flat. The Group’s like for like

average storage rate

was up 5.0% at CER

with average occupancy

down 3.3%, whilst like for like

closing occupancy decreased by

3.2ppts to 79.6%.

The Group has traded solidly over the year despite strong comparable

performances in the record 2021 and 2022 financial years over which

c. 25% like for like revenue growth was delivered. Ourdigital marketing

platform has driven good enquiry generation andconversion despite a

slightly weaker overall market such that enquiry levels remain ahead of

the pre-Covid period.

The like-for-like average storage rate growth drove the UK revenue

performance and increased by 5.1% in the year whilst average

occupancy declined by 4.1% and closing occupancy was down

3.8ppts at 79.2%.

In Paris, our performance was resilient with like for like

revenue

growing by 3.5% at CER

driven by a like for like growth in average

storage rate of 3.9% with like for like average storage occupancy

broadly flat. Like for like

closing occupancy ended the year at a

similar level to the prior year at 81.3% (FY2022: 81.7%). This is the 25th

consecutive year of revenue growth in Paris with average growth over

the last eight years of approximately 6.2%.

Our Spanish business saw flat like-for-like revenue for the year with

an increase in the like for like average storage rate of 7.4% offsetting

a decline in average occupancy of 7.4%, which reflects the impact of

opening new stores in catchment areas of existing stores increasing

overall revenue but impacting like for like occupancy. Ancillary sales

were also strong. Spain opened six stores in the year and now has

eleven stores open and a pipeline of a further five sites. Total revenue

growth was 19.4%.

Our Netherlands and Belgium businesses performed well in their

first full financial years as fully owned subsidiaries of the Group.

The businesses were not treated as like-for-like in the year but,

over the two quarters (Q3 and Q4) for which comparable revenue

figures are available, like for like growth would have been 11.0%

and9.7%respectively.

The Group’s current pipeline of 30 new developments and store

extensions has been replenished over the last year and now constitutes

c. 1.5 million sq ft of future MLA (equivalent to 18% of the existing

portfolio) with associated outstanding capital expenditure of £128 million.

29 of the 30 projects are in London, Paris, Spain, the Randstad region of

the Netherlands and Brussels with just one in the UK outside of London,

in the South-East of England.

Group Underlying EBITDA

of £142.2 million increased by 4.5% at

CER

on the prior year. The Group’s Underlying EBITDA

performance,

offset by a 9.6% increase in leasehold cost and a £5.0 million or 45.9%

increase in finance costs, resulted in a 0.8% increase in Adjusted Diluted

EPRA EPS

in the period to 47.9 pence (FY2022: 47.5 pence). The

increase in finance costs was driven by higher debt levels to fund the

development pipeline and an increase in the marginal cost of borrowing.

On a like-for-like basis the increase in Adjusted Diluted EPRA EPS

in the

period, as mentioned above, would have been 3.3%. Statutory operating

profit decreased by 55.2% to £230.4 million (FY2022: £514.5 million) as

a result of the gain on investment properties of £93.8 million being lower

than the record gain experienced in 2022 of £381.6 million.

Our property portfolio valuation, including investment properties under

construction, increased in the year by 9.3%, driven by the underlying

performance of the stores, new stores, acquisitions and exchange rate

movements. After exchange rate movements, the portfolio valuation

increased to £2,789.7 million with the UK portfolio up £118.6 million to a

total UK value of £1,934.0 million and the French portfolio increasing by

€50.8 million to €676.7 million.

Reflecting the Group’s dividend policy, the Board is pleased to recommend

a final dividend of 20.2 pence per share (FY2022: 20.4 pence) resulting in

a full year dividend up 1.0% to 30.1 pence per share (FY2022: 29.8 pence).

Over the last ten years, the Group has grown the annual dividend by

419% or 24.3 pence per share.

Outlook

We remain focused on further optimising the Group’s operational

performance and continuing to grow in all of our geographies. Our

development pipeline represents 18% of our existing MLA and our

balance sheet strength and flexibility provide us with the opportunity to

consider further selective development and acquisition opportunities in

all of our markets.

As disclosed in our 2023 half year results we expect the development

pipeline and associated financing to be dilutive to earnings in the

2024financial year before becoming highly accretive in future years as

the stores stabilise. We believe that, on stabilisation, an incremental

£25–30 million of EBITDA will be added by the 30 projects in the pipeline.

For the first two months of the 2024 financial year, total Group revenue

is broadly flat with like-for-like revenue down 0.6%

on the prior year.

Regionally, we have seen strong like-for-like growth in the Netherlands

and Belgium, solid improvements in Paris and Spain and a modest

decline in the UK.

“ After two years of outperformance in

which the Group delivered significant

revenue growth, 2023 has been a resilient

year in which significant strategic and

operational progress has been made.”

Frederic Vecchioli

Chief Executive Officer

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement

Further, in the first two months of the 2024 financial year, the Group

took limited promotional actions that resulted in year-on-year UK

like-for-like occupancy improving from -3.8ppts as at 31 October2023

to -1.4ppts at 31 December 2023, and similarly from -0.4ppts to +0.3ppts

in Paris. The immediate impact on rates is expected to gradually reduce

over the next few months, particularly as the Group will annualise the

discounting activity that took place later last year in spring.

Whilst we are fully aware of the current macro-economic environment,

our business model has proven to be highly resilient with multiple

drivers of demand. We believe the Group is strongly positioned to

withstand pressures from challenging market conditions.

Our strategy

The Group intends to continue to deliver on its proven strategy

of leveraging its well-located asset base, management expertise,

infrastructure, scale and balance sheet strength and further increase

its Earnings per Share by:

• optimising the trading performance of the existing portfolio;

• maintaining a strong and flexible capital structure; and

• taking advantage of selective portfolio management and expansion

opportunities in our existing markets and, if appropriate, in attractive

new geographies either through a Joint

Venture

or in our own right.

In addition, the Group’s strategy is pursued whilst maintaining a strong

focus on Environmental, Social and Governance (“ESG”) matters and

a summary of our ESG strategy is provided further on page 12.

Optimisation of existing portfolio

With the opening of 31 new stores since August 2016 in addition to

the acquisitions of 47 existing trading stores we have established and

strengthened our market-leading portfolio in the UK and Paris and

have entered the Spanish, Netherlands and Belgium markets.

We have made significant strategic progress during

the year having opened, acquired, or extended

thirteen stores (five in the UK, six in Spain and two

inNetherlands) adding over 500,000 sq ft of MLA

tothe portfolio.

Our newest store in the Netherlands, MijnSafestore Amersfoort, opened in October

bringing the total number of stores in the country to eleven, with a pipeline of a further

four sites in the Randstad area. The new-build freehold site located to the east of

Amsterdam added 58,000 sq ft over three floors to the Safestore portfolio.

MijnSafestore Amersfoort was built using materials from sustainable sources including

recycled steel and concrete. The entire building is gas-free as the store does not

use gas for heating. This new store also provides bicycle parking alongside electric

vehicle charging points in the car park for customer and colleague use as part of our

commitment to responsible construction. In 2024, 30 solar panels will also be installed

on the roof of the building to reduce the self-consumption of electricity close to 0 kW.

We continue to leverage our effective and scalable operating platform to increase our

expansion plans across both the UK and continental Europe, and we remain on the

lookout for new freehold sites.

Case study

“ Over the last six months the Group has

opened or extended six new stores,

added a further five new developments

or extensions to the pipeline, extended

the leases on three stores, acquired the

freeholds of two stores, acquired an

existing store in the Netherlands and

entered the German market through

anewJV with Carlyle.”

Frederic Vecchioli

Chief Executive Officer

Capital expenditure

£235m

+13.8%

GHG emissions

-70%

since 2013

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Optimisation of existing portfolio continued

Wehave a high quality, fully invested estate in all geographies and,

of our 190 stores as at 31 October 2023, 102 are in London and

the South East of England or in Paris, with 60 in the other major UK

cities and 28 in Barcelona and the Benelux region. In the UK, we now

operate 50 stores within the M25, which represents a higher number

of stores than any other competitor.

Our MLA

has increased to 8.1 million sq ft at 31 October 2023

(FY2022: 7.7 million sq ft). At the current occupancy level of 77% we

have 1.9 million sq ft of fully invested unoccupied space (3.4 million

sq ft including the development pipeline), of which 1.2 million sq

ft is in our UK stores, 0.2 million sq ft is in Paris and 0.5 million sq

ft is in Barcelona and Benelux. In total, unlet space at our existing

stores is the equivalent of c. 47 empty stores located across the

estate and provides the Group with significant opportunity to grow

further. Wehave a proven track record of filling our vacant space

so we view this availability of space with considerable optimism.

We will also benefit from operational leverage from the fact that this

available space is fully invested and the related operating costs are

essentially fixed and already included in the Group cost base. Our

continued focus will be on ensuring that we drive occupancy to utilise

this capacity at carefully managed rates. Between the full financial

years 2013 and 2023, occupancy of the stores in the portfolio in

2013thatremain in the Group today has increased from 63.1% to

80.7%, i.e. an average of 1.8ppts per year and equivalent to a total

of0.9 million sq ft.

One of the key measures of operational success for a self storage

asset is the revenue per available square foot (“REVPAF”) and

Safestore’s priority will remain to maximise its leading REVPAF

with a sustainable combination of occupancy and rate. Between

the full financial years 2013 and 2023, the Company’s REVPAF has

maintained industry leading levels increasing 46.5% for the Group,

66.4% for the UK (60.5% for London and the South East; and 84.2%

for regional UK) and 32.1% for Paris.

There are three elements that are critical to the optimisation of our

existing portfolio:

• enquiry generation through an effective and efficient

marketingoperation;

• strong conversion of enquiries into new lets; and

• disciplined central revenue management and cost control.

Digital Marketing Expertise – UK Number 1 Self

Storage Brand

Awareness of self storage remains relatively low with half of the UK

population either knowing very little or nothing about the product

(source: SSA Annual Report 2023). In the UK, many of our new

customers are using self storage for the first time and it is largely a

brand-blind purchase. Typically, customers requiring storage start

their journey by conducting online research using generic keywords

in their locality (e.g., “storage in Borehamwood”, “self storage near

me”) which means that geographic coverage and search engine

prominence remain key competitive advantages.

We believe there is a clear benefit of scale in digital capability in

the generation of customer enquiries. The Group has continued to

invest in technology and in-house expertise which has resulted in

the development of a leading digital marketing platform that has

generated 43% enquiry growth for the Group over the last five years,

an annual growth of over 7%. Our in-house expertise and significant

annual budget have enabled us to deliver strong results. Safestore is

the UK number 1 self storage brand as it has more new lets per year

than any other brand.

Online marketing remains the predominant channel for customer

acquisition. Online enquiries made up 89% of all our enquiries

intheUK (FY2022: 90%), with 84% in France (FY2022: 85%).

Themajority of our online enquiries now originate from a mobile

device highlighting the need for continual investment in our responsive

web platform for a ‘mobile-first’ world. We continue to invest in

activities that promote a strong search engine presence to grow

enquiry volume whilst managing efficiency in terms of overall cost per

enquiry and cost per new let. Group marketing costs for the full year

as a percentage of revenue were broadly in line with the previous year

at 3.8% (FY2022: 3.6%).

During 2023, the Group demonstrated its ability to integrate newly

developed and acquired stores into its marketing platform with

successful new openings in the UK (Morden, Wigan, Ellesmere

Port), Spain (Barcelona, Madrid) and the Netherlands (Apeldoorn,

Amersfoort). We have clearly demonstrated that our marketing

platform is transferable into multiple overseas geographies.

Motivated and effective store teams benefiting

from investment in training and development

Training, People and Performance Management

Our enthusiastic, well-trained, and customer-centric sales team

remains a key differentiator and a strength of our business.

Understanding the needs of our customers and using this knowledge

to develop trusted in-store advisers is a fundamental part of driving

revenue growth and market share.

Safestore has been an Investors in People (“IIP”) accredited organisation

since 2003 and we passionately believe that our continued success

is dependent on our highly motivated and well-trained colleagues.

Following the award of a Bronze accreditation in 2015 and a Gold

accreditation in 2018, we were delighted to be awarded the “We invest

in people” Platinum accreditation in February 2021. This is the highest

accolade in the Investors in People scale and positions us as an

employer of choice. Shortly after our Platinum accreditation, we were

shortlisted for the Platinum Employer of the Year (250+) category in

the Investors in People Awards 2021. This further endorses the high

standard of our teams and the people development programmes that

drive our skill and talent retention.

We are committed to growing and rewarding our people and we tailor

our development, reward and recognition programmes to reflect

this. Our IIP recognised coaching programme, launched in 2018 and

upgraded every year since, continues to be a driving force behind

thecontinuous performance improvement demonstrated by our

storecolleagues.

Our online learning portal, combined with the energy and flexibility

of our store colleagues, allows us to not only continue to deliver our

award-winning development programmes but also to capitalise on

the strength of our IT platforms. We have been able to combine our

technology communication skills with our tried and tested face-to-face

training sessions in a newly created “impact” sales refresher.

We have always aimed to recognise the changing needs and

demands of our customers. Combining new, along with tried and

tested, solutions and systems, we are further able to support our store

colleagues, allowing them to fulfil the needs of our customers over

and above that of our competitors. Our flexible contract types and

enhanced digital contract completion further enhance our customer

offer and experience.

All new recruits to the business benefit from enhanced induction and

training tools that have been developed in house and enable us to

quickly identify high potential individuals and increase their speed to

competency. They receive individual performance targets within four

weeks of joining the business and are placed on the “pay-for-skills”

programme that allows accelerated basic pay increases dependent

onsuccess in demonstrating specific and defined skills. The key

target of our programme remains that we grow our talent through our

Store Manager Development programme, and we are pleased with

our progress to date.

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement continued

Our internal Store Manager Development programme has been in

place since 2016 and is a key part of succession planning for future

Store Managers. Funded by the Apprenticeship Levy this programme

provides the opportunity to complete a Level 3 Management

and Leadership apprenticeship, with the additional opportunity

to complete an Institute of Leadership and Management (“ILM”)

qualification. In 2023, of the eleven delegates who successfully

completed the programme, ten of them did so with distinction.

Our Store Manager Development programme demonstrates the

effectiveness of our learning tools. In a spirit of constant improvement,

our content and delivery process is dynamically enhanced through

our 360-degree feedback process utilising the learnings from not

only the candidates but also from our training Store Managers and

senior business leaders. This allows our people to be trained with the

knowledge and skills to sell effectively in today’s marketplace.

Further development opportunities are available through our Senior

Manager Development programme (“LEAD”) focusing on developing

our high performing Store Managers. This programme is aimed

at preparing candidates for more senior roles within the business

in addition to attaining a Level 5 Management and Leadership

apprenticeship. The relaunch of our graduate programme, in October

2022, provides an opportunity for newly qualified graduates to build

their skill set and experience resulting in a career with Safestore.

Our performance dashboard allows our store and field teams to focus

on the key operating metrics of the business providing an appropriate

level of management information to enable swift decision making.

Reporting performance down to individual colleague level enhances

our competitive approach to team and individual performance.

Wecontinue to reward our people for their performance with

bonuses of up to 50% of basic salary based on their achievements

against individual targets for new lets, occupancy, and ancillary

sales. In addition, our Values and Behaviours framework is overlaid

on individuals’ performance in order to assess performance and

development needs on a quarterly basis.

Our “Make the Difference” people forum, launched in 2018, which is

a formal workplace advisory panel, enables frequent opportunities for

us to hear and respond to our colleagues. Our network of 15 “People

Champions” collect questions and feedback from their peers across

the business and put them to members of the Executive Committee.

We drive change and continuous improvement in responding to

thefeedback we receive for “Our Business, Our Customers and

OurColleagues”.

People Champions:

• consult and collect the views and suggestions of all colleagues that

they represent;

• engage in the bi-annual “Make the Difference” people forum, raising

and representing the views of their colleagues; and

• consult with and discuss feedback with management and the

leadership team at Safestore.

Our values are authentic, having been created by our people. They are

core to the employment life cycle and bring consistency to our culture.

Our leaders have high values alignment enabling us to make the right

decisions for our colleagues and our customers.

Our customers continue to be at the heart of everything we do,

whether it be in store, online or in their communities. Our commitment

to our customers mirrors that of our commitment to our colleagues.

Technological developments

After delivering the appropriate technology the Group recently opened

its first fully automated, unmanned, satellite self storage centre in

Christchurch shortly followed by its second in Eastleigh. Utilising

industry leading automated technology, along with in-house created

communication and control technologies, customers can securely

enter the building and their storage unit from a simple app on their

mobile phone. Several additional unmanned satellite stores are

currently under various stages of development in the UK.

Our customers also have the option to complete a booking and

contract for a self storage unit online for any UK store location. The

Group’s belief is that its multi-channel sales strategy, utilising full

automation, colleague interaction through our store sales teams or

our specialist call centre and our National Accounts team, provides

each type of customer with the most tailored and easy way to buy self

storage atSafestore.

Customer satisfaction

In February 2023, Safestore UK won the Feefo Platinum Trusted

Service award for the fourth year running. The award is given to

businesses which have achieved Gold standard for three consecutive

years. It is an independent mark of excellence that recognises

businesses for delivering exceptional experiences, as rated by real

customers. In addition to using Feefo, Safestore invites customers

to leave a review on a number of review platforms, including Google

and Trustpilot. Our rating for each of these three providers in the UK

is 4.8 out of 5. In France, Une Pièce en Plus uses Trustpilot to obtain

independent customer reviews with a “TrustScore” of 4.6 out of 5.

InSpain, OMB collects customer feedback via Google reviews and

has maintained a score of 4.8 out of 5.

Central revenue management and cost control

We continue to pursue a balanced approach to revenue management.

We aim to optimise revenue by improving the utilisation of the available

space in our portfolio at carefully managed rates. Our central pricing

team is responsible for the management of our dynamic pricing

policy, the implementation of promotional offers and the identification

of additional ancillary revenue opportunities. Whilst price lists are

managed centrally and are adjusted on a real-time basis, the store

sales teams have, from time to time, the ability to offer a Lowest Price

Guarantee in the event that a local competitor is offering a lower

price, or the ability to offer discretionary discounts. The Lowest Price

Guarantee and discretionary discount are centrally controlled and

activated on a store by store and unit by unit basis.

Average rates are predominantly influenced by:

• the store location and catchment area;

• the volume of enquiries generated online;

• the store team skills at converting these enquiries into new lets at

the expected price; and

• the very granular pricing policy and the confidence provided by

analytical capabilities and systems that smaller players might lack.

We believe that Safestore has a very strong proposition in each of

these areas.

Costs are managed centrally with a lean structure maintained at Head

Office. Enhancements to cost control are continually considered and

the cost base is challenged on an ongoing basis.

Strong and flexible capital structure

Since 2014 we have refinanced the business on seven occasions,

each time optimising our debt structure and improving terms, and

believe we have maintained a capital structure that is appropriate for our

business and which provides us with the flexibility to takeadvantage

of carefully evaluated development and acquisitionopportunities.

At 31 October 2023, based on the current level of borrowings and

interest rates, the Group’s weighted average cost of debt, after

adjusting for capitalised interest costs, was 2.97% (FY2022: 2.23%).

The weighted average maturity of the Group’s drawn debt is 4.7 years

at the current period end and the Group’s LTV ratio is 25.4% as at

31October 2023.

The Group has £528 million of fixed rate US Private Placement Notes

which constitute 72% of the total drawn debt. The tenors of the notes

are from 2024 to 2033 with €51 million of notes expiring in May 2024.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Strong and flexible capital structure continued

This LTV of 25.4% and the interest cover ratio of 6.7x for the

rolling twelve-month period ended 31 October 2023 provides us

with significant headroom compared to our banking covenants

(LTV of60% and ICR of 2.4:1). The reduction in ICR

reflects the

increasedinterest costs from funding the development pipeline.

Wehad c. £200 million of undrawn bank facilities at 31 October2023

before taking into consideration the additional £100 million

uncommitted accordion facility.

Taking into account the improvements we have made in the performance

of the business, the Group is capable of generating free cash after

dividends sufficient to fund the building of three to four new stores

perannum depending on location and availability of land.

The Group evaluates development and acquisition opportunities in a

careful and disciplined manner against rigorous investment criteria.

Our investment policy requires certain Board-approved hurdle rates

to be considered achievable prior to progressing an investment

opportunity. In addition, the Group aims to maintain a Group LTV

ratio below 40% which the Board considers to be appropriate for

the Group.

November 2022 refinancing

In November 2022, the Group completed the refinancing of its

Revolving Credit Facilities (“RCFs”) which were due to expire in

June 2023.

The previous £250 million Sterling and €70 million Euro secured

RCFs have been replaced with a single multi-currency unsecured

£400 million facility. In addition, a further £100 million uncommitted

accordion facility is incorporated into the facility agreement.

The facility is for a four-year term with two one-year extension options

exercisable after the first and second years of the agreement. The first

extension has recently been completed.

The Group pays interest at a margin of 1.25% plus SONIA orEURIBOR

depending on whether the borrowings are drawn in Sterling or Euros.

The margin is at the same level as the previous facility agreements.

Environmental, Social and Governance (“ESG”) KPIs have been

agreed with the Group’s lenders. The margin under the facility is now

linked to ESG targets, which could enable a reduction in the margin of

up to 5bps to 120bps.

A commitment fee of 35% of the margin is payable on undrawn

amounts under the facility. This has reduced from 40% under the

previous facility agreements.

Reflecting the Group’s improved credit profile, the banking group

and existing US Private Placement Noteholders have agreed that all

of the Group’s previously secured borrowings move to an unsecured

basis, thus reducing administrative and legal costs associated with

thefacilities.

ESG Strategy

ESG: sustainable self storage

Our purpose: – to add stakeholder value by developing profitable

and sustainable spaces that allow individuals, businesses and

local communities to thrive – is supported by the “pillars” of our

sustainability strategy: our people, our customers, our community

and our environment. In addition, the Group and its stakeholders

recognise that their efforts are part of a broader movement and

we have, therefore, aligned our objectives with the UN Sustainable

Development Goals (“SDGs”). We reviewed the significance of

each goal to our business and the importance of each goal to our

stakeholders and assessed our ability to contribute to each goal.

Following this materiality exercise, we have chosen to focus our efforts

in the areas where we can have a meaningful impact. These are

“Decent work and economic growth” (goal 8), “Sustainable cities and

communities” (goal 11), “Responsible consumption and production”

(goal 12) and “Climate action” (goal 13).

Sustainability is embedded into day-to-day responsibilities at

Safestore and, accordingly, we have opted for a governance structure

which reflects this. Two members of the Executive team co-chair a

cross-functional sustainability group consisting of the functional leads

responsible for each area of the business.

In 2018, the Group established medium term targets in each of the

“pillars” towards which the Group continued to progress in FY2023.

Our people: Safestore was awarded the prestigious Investors in

People (“IIP”) Platinum accreditation and was in the final top ten

shortlist for Platinum Employer of the Year (250+) category in The

Investors in People Awards 2021. The Group’s response during the

pandemic lockdowns and aftermath has had a profound impact on

trust in leadership and colleague engagement and motivation.

Our customers: The Group’s brands continue to deliver a

high quality experience, from online enquiry to move-in. This is

reflected in customer satisfaction scores on independent review

platforms (Trustpilot, Feefo, Google) of over 90% in each market.

The introduction of digital contracts during the pandemic offers

both customer convenience and a reduction in printing, saving an

estimated 44,000 pieces of paper each month.

Our community: Safestore remains committed to being a

responsible business by making a positive contribution within the

local communities wherever our stores are based. We continue to

do this by developing brownfield sites and actively engaging with

local communities when we establish a new store, identifying and

implementing greener approaches in the way we build and operate

our stores, helping charities and communities to make better use

of limited space, and creating and sustaining local employment

opportunities directly and indirectly through the many small and

medium-sized enterprises which use our space. During FY2023,

thespace occupied by local charities in 184 units across 104 stores

was 21,000 sq ft and worth £0.9 million.

Our environment: Safestore is committed to ensuring our

buildingsare constructed responsibly and that their ongoing

operationhas a minimal impact on local communities and the

environment. It should be noted that the self storage sector is not a

significant consumer of energy when compared with other real estate

sub-sectors. As a result, operational emissions intensity tends to

be far lower. According to a 2023 report by KPMG and EPRA, self

storage generates the lowest greenhouse gas emissions intensity

(4 kg/m

for scope 1 and 2) of all European real estate sub-sectors.

Reflecting the considerable progress made on energy mix, efficiency

measures and waste reduction to date, Safestore’s emissions intensity

(3.4 kg/m

in 2022) is considerably lower than the self storage sub-

sector average. In FY2023, the Group continued to progress with

a further 17% decline in absolute market-based emissions despite

continued portfolio growth. Emissions intensity has reduced 19%

to below 1.0 kgCO

e/m

. Per our commitments, our new stores in

the UK, Spain and the Netherlands have all achieved a minimum

energy performance rating of B. Moving forward, the Group has

a commitment to be operationally carbon neutral by 2035 with a

medium term target to reduce operational emissions (market-based)

by 34% compared to the level in FY2021 by 2025. The total investment

to achieve carbon neutrality should be around £3 million.

In addition to the IIP award and the customer satisfaction ratings, the

Group has received recognition for its sustainability progress and

disclosures in the last twelve months. Safestore has been given a

Silver rating in the 2023 EPRA Sustainability BPR Awards. The Global

ESG Benchmark for Real Assets (“GRESB”) has once again awarded

Safestore an “A” rating in its 2023 Public Disclosures assessment.

MSCI has awarded Safestore its second highest rating of “AA” for ESG

in 2023. The Group has also been awarded the highest rating of five

stars by “Support the Goals”.

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement continued

Finally, the Group has worked with its banking lenders to agree

ESG related KPIs which are linked to the margin payable under its

new £400 million facility. Two KPIs have been agreed, which, when

achieved, result in a reduction in margin of up to 5bps.

Portfolio management

Our approach to store development and acquisitions in the UK, Paris

and Spain, and now the Netherlands and Belgium, continues to be

pragmatic, flexible and focused on the return on capital.

Our property teams continue to seek investment opportunities in new

sites to add to the store pipeline. However, investments will only be

made if they comply with our disciplined and strict investment criteria.

Our preference is to acquire sites that are capable of being fully

operational within 18–24 months from completion.

Since 2016, the Group has opened 31 new stores including seven

in London, five in Paris, seven in Barcelona and Madrid, six in major

UK cities, four in UK conurbations and two in the Netherlands adding

1,446,000 sq ft of MLA.

In addition, the Group has acquired 47 existing stores through the

acquisitions of Space Maker, Alligator, Fort Box, Salus and Your

Room in the UK, OhMyBox! in Barcelona, the Lokabox and M3 group

from our Benelux JV acquisition and a store in Apeldoorn in the

Netherlands. These acquisitions added a further 1,890,000 sq ft of

MLA and revenue performance has been enhanced in all cases under

the Group’s ownership.

We have also completed the extensions and refurbishments of twelve

stores across the portfolio adding a net 140,000 sq ft of fully invested

space to the estate. All of these stores are performing in line with or

ahead of their business plans.

Despite thirteen stores being opened, extended or acquired and

c. 500,000 sq ft of new MLA in the period, the Group’s current

pipeline of new developments and store extensions (see pipeline table)

has grown over the last year and now constitutes c. 1,454,000 sq

ft of future MLA. The pipeline is equivalent to c. 18% of the existing

portfolio. The outstanding capital expenditure of £128 million is

expected to be funded from the Group’s existing resources. The

totalcapital expenditure on stores opened in the 2022/23 financial

year to date as well as the outstanding pipeline is estimated to be

c.£251 million. Our industry leading level of REVPAF typically allows

us to deliver returns above our cash on cash hurdle of at least 10%.

Our current average portfolio Cash on Cash Return is 15%. On a 10%

return basis, a further £25–30 million of EBITDA will be generated at

stabilisation (c. four years after opening).

Property pipeline

Openings of new stores and extensions in the period:

Open 2023 FH/LH MLA Other

Redevelopments and Extensions

London- Crayford LH 9,400 Extension

London- Paddington Marble Arch LH 8,400 Extension

New Developments

London- Morden FH 52,000 New build

Madrid- North FH 53,000 Conversion

Madrid- South FH 32,000 Conversion

Madrid- East FH 50,000 Conversion

Barcelona- South FH 30,600 Conversion

Barcelona- North FH 42,000 Conversion

Barcelona- Central 3 LH 14,700 Conversion

Netherlands- Amersfoort FH 58,000 New build

Wigan FH 42,700 Conversion

Ellesmere Port FH 55,000 New build

Total MLA 447,800

Open 2023 (post-year end) FH/LH MLA Other

New Developments

Eastleigh LH 14,000

Conversion,

Satellite

Lease extensions

During the period we completed the extensions of our leases at

Edinburgh-Fort Kinnaird, London- Charlton, London- Slough and

Burnley stores.

The Edinburgh lease has been extended by a further ten years to 2040.

At London- Charlton we have extended the lease term to 2038. In

doing so we have agreed a three-month rent-free period.

In Burnley we have also extended the lease to 2038 with tenant break

options every five years.

At London- Slough the lease was re-geared to extend by 15 years; the

total lease length at the end of the current financial year is 18 years.

As part of our ongoing asset management programme, we have now

extended the leases on 31 stores or 84% of our leased store portfolio

in the UK since 2012. As a result, since 2012 the remaining lease

length of our UK stores has remained at c. 11–13 years.

Freehold purchases

In Barcelona, the Group has been leasing its Valencia store since

2013. During the period, the freehold of the site was acquired

for€3.6 million.

In addition, the freehold of our Oldbury store in West Birmingham was

acquired for £5.7 million.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Property Pipeline Summary

Our pipeline of c. 1.5 million sq ft represents c. 18% of our existing property portfolio.

Opening 2024 FH/LH Status* MLA Other

Redevelopments and Extensions

London- Holloway FH C, STP 9,500 Extension

Paris- Poissy FH C, UC 12,000 Extension

Paris- Pyrenees LH C, UC 22,200 Extension

New Developments

London- Paddington Park West FH C, UC 13,000 Conversion, Satellite

London- Lea Bridge FH C, UC 80,900 New build

Paris- South Paris FH C, UC 55,000 New build

Paris- West 3 FH C, UC 58,000 New build

Paris- East 1 FH C, PG 60,000 Conversion

Paris- North West 1 FH C, PG 54,000 Conversion

Paris- West 4 FH CE, PG 53,000 New build

Madrid- South West FH C, UC 46,800 Conversion

Madrid- South 2 FH C, UC 68,800 Conversion

Madrid- North East FH C, STP 57,000 Conversion

Barcelona- Central 2 LH C, PG 20,400 Conversion

Randstad- Almere FH C, UC 44,500 Conversion

Randstad- Aalsmeer FH C, UC 48,400 New build

Randstad- Rotterdam FH C, UC 71,000 New build

Opening 2025

New developments

London- Woodford FH C, PG 68,700 New build

London- Walton FH C, PG 20,700 Conversion

London- Watford FH CE, PG 46,750 New build

London- Wembley FH C, STP 49,000 New build

Paris- West 1 FH C, PG 56,000 New build

Paris- La Défense FH C, UC 44,000 Mixed use facility

Randstad- Amsterdam FH CE, PG 61,400 New build

Brussels- Zaventem FH CE, PG 47,400 New build

Pamplona FH C, PG 64,500 Conversion

Opening Beyond 2025

New developments

London- Old Kent Road FH C, STP 76,500 New build

London- Bermondsey FH C, STP 50,000 New build

London- Romford FH C, STP 41,000 New build

Shoreham FH CE, PG 54,000 New build

Total Pipeline MLA (let sq ft – million) c. 1.454

Total Outstanding CAPEX (£’m) c. 128.0

* C = completed, CE = contracts exchanged, STP = subject to planning, PG = planning granted, UC = under construction.

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement continued

The pipeline of 1,454,000 sq ft of future MLA includes:

• ten projects with c. 456,000 sq ft of MLA in London (31% of the pipeline);

• one project with c. 54,000 sq ft of MLA in the South East of the UK

(4% of the pipeline);

• nine projects with c. 414,000 sq ft of MLA in Paris (29% of the pipeline);

• five projects with c. 258,000 sq ft of MLA in Spain (18% of the pipeline);

• four projects with c. 225,000 sq ft of MLA in the Netherlands (15%

of the pipeline); and

• one project in Belgium with c. 47,000 sq ft of MLA (3% of the pipeline).

Since our fourth quarter announcement in November 2023, three sites

have had planning granted. Of the 30 projects in the pipeline, only six

are now subject to planning.

Acquisitions

Acquisition of Apeldoorn self storage facility in the Netherlands

During the period, the Group completed the acquisition of

anexisting58,000 sq ft self storage facility in Apeldoorn in the

Netherlands. The store was operating under the Stoor brand and is

situated in an easily accessible commercial district on the north side

of the city, which has a population of 165,000.

New Joint Venture with Carlyle and investment in myStorage

in Germany

In December 2022 Safestore entered the German self storage

market via a new Joint Venture with Carlyle, which has acquired the

myStorage business.

Safestore has developed a multi-country highly scalable platform with

leading marketing and operational expertise in self storage, with a

proven track record for developing its platform in new markets.

The acquisition of myStorage represents an excellent opportunity to

develop our platform into the attractive German self storage market.

The Joint Venture builds upon our previous successful relationship

with Carlyle having entered the Benelux market in 2019. Our common

intention is to target development and acquisition opportunities

through the Joint Venture, providing the opportunity to achieve

operational scale and to develop local market knowledge, whilst also

retaining the option for Safestore to develop its own wholly owned self

storage sites in Germany. We look forward to continuing our working

relationship with Carlyle, and to developing a long and mutually

beneficial relationship.

The German market is one of Europe’s more under-penetrated

markets with just 0.21 sq ft of storage space per capita which

compares to 0.82 sq ft in the UK, 0.35 sq ft in France, 0.32 sq ft

in Spain, 0.50 sq ft in the Netherlands and 0.20 sq ft in Belgium.

According to the 2023 FEDESSA report, there are just 530 facilities

inGermany and 17.6 million sq ft of lettable space.

myStorage has seven medium to long term leasehold stores and

326,000 sq ft of MLA in Berlin, Heidelburg, Mannheim, Fürth,

Nuremburg, Neu-Ulm and Reutlingen.

Owned store portfolio by region

UK France Spain Netherlands Belgium

Group

Total

Number of Stores 133 29 11 11 6 190

Let Square Feet (m sq ft) 4.472 1.107 0.135 0.352 0.164 6.231

Maximum Lettable Area (m sq ft) 5.730 1.360 0.340 0.440 0.220 8.090

Average Let Square Feet per store (k sq ft) 34 38 12 32 27 33

Average Store Capacity (k sq ft) 43 47 31 40 37 43

Closing Occupancy (%) 78.1% 81.3% 39.5% 80.7% 74.1% 77.0%

Average Rate (£ per sq ft) 30.25 36.59 28.82 16.20 18.67 30.26

Revenue (£'m) 166.5 43.9 3.8 6.4 3.6 224.2

Average Revenue per Store (£'m) 1.25 1.51 0.35 0.58 0.60 1.18

Note:

The reported totals have not been adjusted for the impact of rounding.

Safestore’s initial investment in the Joint Venture was a c. €2.2 million

equity investment for a 10% share of the Joint Venture. Safestore

will also earn a fee for providing management services to the Joint

Venture. The Group expects to earn an initial return on investment

of c. 15% for the first full year before transaction related costs

reflecting its share of expected Joint Venture profits and fees for

management services.

Portfolio Summary

The self storage market has been growing consistently for over 20 years

across many European countries but few regions offer the unique

characteristics of London and Paris, both of which consist of large,

wealthy and densely populated markets. In the London region, the

population is 13 million inhabitants with a density of 5,200 inhabitants

per square mile, 11,000 per square mile in Central London and up to

32,000 per square mile in the densest boroughs.

The population of the Paris urban area is 10.7 million inhabitants with

a density of 9,300 inhabitants per square mile in the urban area but

54,000 per square mile in the City of Paris and first belt, where 69%

of our French stores are located and which has one of the highest

population densities in the western world. 85% of the Paris region

population live in central parts of the city versus the rest of the urban

area, which compares with 60% in the London region. There are

currently c. 245 storage centres within the M25 as compared to only

c. 122 in the Paris urban area.

In addition, barriers to entry in these two important city markets

are high, due to land values and limited availability of sites as well

as planning regulation. This is the case for Paris and its first belt in

particular, which inhibits new development possibilities.

Over the last four years the Group has expanded into further attractive,

under-penetrated markets in Spain, the Netherlands and Belgium with

a focus on the conurbations of Barcelona, Madrid, the Randstad area

and Brussels.

As at 31 October 2023, 97% of our Group revenue, 94% of our stores

and 95% of our available capacity are in London, Paris, South East

England, major UK cities, Spain, Amsterdam and the Randstad

area and Brussels. These major population areas deliver 97% of

the Group’s store EBITDA from 95% of our MLA, highlighting the

attractiveness of being present in these major cities and conurbations.

The current pipeline includes 30 further developments in these areas

which will increase the number of stores to 95% of our portfolio.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Owned store portfolio by region continued

We have a strong position in both the UK and Paris markets, operating

133 stores in the UK, 73 of which are in London and the South East,

and 29 stores in Paris.

In the UK, 63% of our revenue is generated by our stores in London

and the South East. On average, our stores in London and the South

East are smaller than in the rest of the UK but the rental rates achieved

are materially higher, enabling these stores to typically achieve similar

or better margins than the larger stores. In London we operate 50 stores

within the M25, more than any other competitor.

In France, we have a leading position in the heart of the affluent

City of Paris market with ten stores branded as Une Pièce en Plus

(“UPP”) (“A spare room”). Over 60% of the UPP stores are located in

a cluster within a five-mile radius of the city centre, which facilitates

strong operational and marketing synergies as well as options to

differentiate and channel customers to the right store subject to their

preference for convenience or price affordability. The Parisian market

has attractive socio-demographic characteristics for self storage

and we believe that UPP enjoys unique strategic strength in such

anattractive market.

In Spain the Group has eleven stores open in Barcelona and Madrid

with a further five stores in the pipeline in these two cities and in

Pamplona in the Basque Country, a region with a dynamic and

healthy economy.

In the Benelux Region the Group has eleven stores open in the

Netherlands and six in Belgium. The pipeline contains a further four

stores in the Netherlands and one in Belgium.

In addition, Safestore has the benefit of a leading national presence

in the UK outside of London where the stores are predominantly

located in the centre of key metropolitan areas such as Birmingham,

Manchester, Liverpool, Bristol, Newcastle, Glasgow and Edinburgh.

Market

The self storage market in the UK, France, Spain, the Netherlands

and Belgium remains relatively immature compared to geographies

such as the US and Australia. The SSA Annual Survey (May 2023)

confirmed that self storage capacity stands at 0.82 sq ft per head

of population in the UK. The most recent report relating to Europe

(FEDESSA’s 2023 report) showed that capacity in France is 0.35sqft

per capita. Whilst the Paris market density is greater than France, we

estimate it to be significantly lower than the UK at around 0.4sq ft per

inhabitant. This compares with closer to 10 sq ft per inhabitant in the

US and 2 sq ft in Australia. In the UK, in order to reach the USdensity

of supply, it would require the addition of around another

17,000 stores

as compared to c. 1,500 currently. In the Paris region,

it would require

around 2,400 new facilities versus c. 122 currently opened.

In Spain, the Netherlands and Belgium, geographies the Group

has recently entered, penetration is similarly low. In Spain capacity

is around 0.32 sq ft per head of population and the consumer is

serviced by just 585 stores. In the Netherlands penetration is 0.5 sq ft

per head of population (320 stores) and in Belgium 0.20 sq ft per head

of population (96 stores).

The Group recently entered a JV with Carlyle in Germany. The German

market is one of Europe’s more under-penetrated markets with just

0.21 sq ft of storage space per capita and, according to the 2023

FEDESSA report, there are just 530 facilities in the country and

17.4million sq ft of lettable space.

Our interpretation of the most recent 2023 SSA report is that

operators remain optimistic about expansion and the future growth

of the industry. The level of development estimated for the next

three years is similar to that witnessed in recent years and we do

notconsider this level of new supply growth to be of concern,

especially as we believe new supply helps to create increased

awareness of what is a relatively immature product on Europe.

We estimate new supply to represent around 2% to 3% of the

traditional self storage industry in the UK. These figures represent

gross openings and do not consider storage facilities closing or being

converted for alternative uses. We estimate that a small proportion of

these sites compete with existing Safestore stores.

New supply in London and Paris is likely to continue to be limited

in the short and medium term as a result of planning restrictions,

competition from a variety of other uses and the availability of

suitable land.

The supply in the UK market, according to the SSA Survey, remains

relatively fragmented despite a number of acquisitions in the sector in

recent years. The SSA’s estimates of the scale of the UK industry are

finessed each year and changes from one year to the next represent

improved data in addition to new supply. In the 2023 report the SSA

estimates that 2,231 self storage facilities exist in the UK market

including around 739 container-based operations. At the point in time

that the 2023 survey was written, Safestore is the industry leader by

number of stores with 129 wholly owned sites followed by Big Yellow

with 108 stores (including Armadillo), Access with 60 stores, Shurgard

with 41 stores, Lok’n Store with 40 stores, Storage King with 38 stores

and Ready Steady Store with 27 stores. In aggregate, the top seven

leading operators account for around 20% of the UK store portfolio.

The remaining c. 1,780 self storage outlets (including 739 container-

based operations) are independently owned in small chains or single

units. In total there are 1,086 storage brands operating in the UK.

Safestore’s French business, UPP, is mainly present in the core

wealthier and more densely populated inner Paris and first belt areas,

whereas our two main competitors, Shurgard and Homebox, have a

greater presence in the outskirts and second belt of Paris.

Our Spanish business currently operates in Barcelona and Madrid.

The metropolitan areas of Barcelona and Madrid have combined

growing high density populations of twelve million inhabitants and

significant barriers to entry.

Our focus in the Netherlands market is on the densely populated

Amsterdam and Randstad conurbations. The Netherlands is the

second most developed self storage market in Europe (after the UK)

but still remains under-penetrated with approximately 320 stores and

0.50 sq ft per capita of storage space.

Belgium is one of the more under-penetrated markets in Europe

with just 96 stores and 0.20 sq ft per capita of self storage space.

In Belgium our presence is focused on Brussels and the significant

urban conurbations of Liege, Charleroi and Nivelles.

Consumer awareness of self storage appears to be increasing but at a

relatively slow rate, providing an opportunity for future industry growth.

The SSA Survey indicates that approximately half of consumers have

low awareness about the service offered by self storage operators or

have not heard of self storage at all. Since 2014, this statistic has only

fallen 6ppts from 62%. Therefore, the opportunity to grow awareness,

combined with limited new industry supply, makes for an attractive

industry backdrop.

Self storage is a brand-blind product. 66% of respondents were

unable to name a self storage business in their local area (64% in

2022). The lack of relevance of brand in the process of purchasing

a self storage product emphasises the need for operators to have a

strong online presence. This requirement for a strong online presence

was also reiterated by the SSA Survey where 76% of those surveyed

(73% in 2022) confirmed that an internet search would be their chosen

means of finding a self storage unit to contact, whilst knowledge of a

physical location of a store as reason for enquiry was only c. 30% of

respondents (c. 26% in 2022).

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement continued

There are numerous drivers of self storage growth. Most private and

business customers need storage either temporarily or permanently

for different reasons at any point in the economic cycle, resulting

in a market depth that is, in our view, the reason for its exceptional

resilience. The growth of the market is driven both by the fluctuation of

economic conditions, which has an impact on the mix of demand, and

by growing awareness of the product.

Safestore’s domestic customers’ need for storage is often driven by

life events such as births, marriages, bereavements and divorces or

by the housing market including house moves and developments

and moves between rental properties. Safestore has estimated that

UK owner-occupied housing transactions drive around 8–13% of the

Group’s new lets.

The Group’s business customer base includes a range of businesses

from start-up online retailers through to multi-national corporates

utilising our national coverage to store in multiple locations while

maintaining flexibility in their cost base.

Business and Personal Customers

Group UK Paris Spain Benelux

Personal customers

Numbers (% of total) 79% 77% 81% 90% 84%

Square feet occupied

(% of total) 61% 58% 64% 84% 76%

Average Length of

Stay (months) 20.9 17.5 26.7 23.2 30.9

Business customers

Numbers (% of total) 21% 23% 19% 10% 16%

Square feet occupied

(% of total) 39% 42% 36% 16% 24%

Average Length of

Stay (months) 26.7 25.7 28.2 27.0 31.5

Safestore’s customer base is resilient and diverse and consists of

around 90,000 domestic, business and National Accounts customers

across London, Paris, Spain, major UK cities, the Netherlands

and Belgium.

Business Model

The Group operates in a market with relatively low consumer

awareness. It is anticipated that this will increase over time as the

industry matures. To date, despite the financial crisis in 2007/08, the

implementation of VAT in the UK on self storage in 2012, Brexit and the

Covid-19 pandemic, the industry has been exceptionally resilient. In

the context of uncertain economic conditions, driven by inflation and

the war in Ukraine, the industry remains well positioned with limited

new supply coming into the self storage market.

With more stores inside London’s M25 than any other operator and

a strong position in central Paris, Safestore has leading positions in

the two most important and demographically favourable markets

in Europe. In addition, our presence in major cities in the UK

is unsurpassed and contributes to the success of our industry

leading National Accounts business. In the UK, Safestore is the

leading operator by number of wholly owned stores. With 62% of

customers travelling for less than 15 minutes to their storage facility

(2023 SSA Survey), Safestore’s national store footprint represents a

competitiveadvantage.

The Group’s capital-efficient portfolio of 190 wholly owned stores

in the UK, Paris, Spain, the Netherlands and Belgium consists of a

mix of freehold and leasehold stores. In order to grow the business

and secure the best locations for our facilities we have maintained a

flexible approach to leasehold and freehold developments as well as

being comfortable with a range of building types, from new builds to

conversions of warehouses and underground car parks.

Currently, around a quarter of our stores in the UK are leaseholds with

an average remaining lease length at 31 October 2023 of 12.4 years

(FY2022: 12.7 years). Although our property valuation for leaseholds

is conservatively based on future cash flows until the next contractual

lease renewal date, Safestore has a demonstrable track record of

successfully re-gearing leases several years before renewal whilst at

the same time achieving concessions from landlords.

In England, we benefit from the Landlord and Tenant Act that protects

our rights for renewal except in case of redevelopment. The vast

majority of our leasehold stores have building characteristics or

locations in retail parks that make current usage either the optimal

and best use of the property or the only one authorised by planning.

We observe that our landlords, who are property investors, value

the quality of Safestore as a tenant and typically prefer to extend the

length of the leases that they have in their portfolio, enabling Safestore

to maintain favourable terms.

In Paris, where 41% of stores are leaseholds, our leases typically

benefit from the well-enshrined Commercial Lease statute that

provides that tenants own the commercial property of the premises

and that they are entitled to renew their lease at a rent that is indexed

to the Indice des Loyers Commerciaux (Commercial Rental Index)

published by the state. Taking into account this context, the valuer

values the French leaseholds based on an indefinite property tenure,

similar to freeholds but at a significantly higher exit cap rate.

The Group believes there is an opportunity to leverage its highly

scalable marketing and operational expertise in new geographies

outside the UK and Paris. During 2019, a Joint Venture

was

established with Carlyle, which acquired the M3 Self Storage business

in the Netherlands which had six stores in Amsterdam and Haarlem.

In June 2020, the Joint Venture

added the Lokabox business, a

portfolio of six stores in Brussels (two), Liege (two), Charleroi and

Nivelles. In December 2020, the Joint Venture

acquired the Opslag

XL portfolio adding a further three stores in Amsterdam, The Hague

and Hilversum and opened a store in Nijmegen in the Netherlands in

January 2022. The Amsterdam store has subsequently been closed

as planned following lease expiry. After three years of learning about

and understanding these markets, the Group acquired the remaining

80% of equity in the Joint Venture

owned by Carlyle in March 2022

and subsequently added a further two stores.

In 2019, the Group entered the Spanish market with the acquisition

of OhMyBox!. Our Spanish portfolio currently consists of eight stores

in Barcelona, and three Madrid stores. We have a further five stores

in our development pipeline situated in Madrid, Barcelona and

Pamplona. We consider these cities to have attractive characteristics

in relation to self storage and intend to continue to seek further

expansion opportunities.

In late 2022, Safestore entered the German self storage market via a

new Joint Venture

with Carlyle, which has acquired the myStorage

business. myStorage has seven medium to long term leasehold stores

and 326,000 sq ft of MLA in Berlin, Heidelburg, Mannheim, Fürth,

Nuremburg, Neu-Ulm and Reutlingen.

Our experience is that being flexible in its approach has enabled

Safestore to operate from properties and in markets that would

have been otherwise unavailable and to generate strong cash-on-

cash returns.

Safestore excels in the generation of customer enquiries which

are received through a variety of channels including the internet,

telephone and “walk-ins”. In the early days of the industry, local

directories and store visibility were key drivers of enquiries. However,

the internet is now by far the dominant channel, accounting for 89%

(FY2022: 90%) of our enquiries in the UK and 84% (FY2022: 85%)

in France. This dynamic is a clear benefit to the leading national

operators that possess the budget and the management skills

necessary to generate a commanding presence in the major search

engines. Safestore has developed and continues to invest in a leading

digital marketing platform that has generated 43% enquiry growth

over the last five years.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Business Model continued

Although mostly generated online, our enquiries are predominantly

handled directly by the stores and, in the UK, we have a Customer

Support Centre (“CSC”) which handles customer service issues in

addition to enquiries, in particular when the store colleagues are busy

handling calls or outside of normal store opening hours.

Our pricing platform provides the store and CSC colleagues

withsystem-generated real-time prices managed by our centrally

based yield-management team. Local colleagues have certain

levels of discretion to flex the system-generated prices but this is

continuallymonitored.

Customer service standards are high and customer satisfaction

feedback is consistently very positive. Safestore invites customers

to leave a review on a number of review platforms, including Feefo,

Google and Trustpilot. Our rating for each of these three providers in

the UK is 4.8 out of 5. In France, Une Pièce en Plus uses Trustpilot to

obtain independent customer reviews with a “TrustScore” of 4.6 out

of 5. In Spain, OMB collects customer feedback via Google reviews

and has maintained a score of 4.7 out of 5. The key drivers of sales

success are the capacity to generate enquiries in a digital world, the

capacity to provide storage locations that are conveniently located

close to the customers’ requirements and the ability to maintain a

consistently high quality, motivated retail team that is able to secure

customer sales at an appropriate storage rate, all of which can be

better provided by larger, more efficient organisations.

We remain focused on business as well as domestic customers.

Ournational network means that we are uniquely placed to further

grow the business customer market and in particular National Accounts.

Business customers in the UK now constitute 42% of our total

space let and have an average length of stay of 26 months. Within

our business customer category, our National Accounts business

represents around 487,000 sq ft of occupied space (around 8% of the

UK’s occupancy). Approximately two-thirds of the space occupied by

National Accounts customers is outside London, demonstrating the

importance and quality of our well-invested national estate.

The business now has in excess of c. 90,000 business and domestic

customers with an average length of stay of 27 months and 21

monthsrespectively.

The cost base of the business is relatively fixed. Each store typically

employs three staff. Our Group Head Office comprises business

support functions such as Yield Management, Property, Marketing,

HR, IT and Finance.

With the establishment of a £400 million unsecured multi-currency

Revolving Credit Facility, Safestore has secure financing, a strong

balance sheet and significant covenant headroom. This provides the

Group with financial flexibility and the ability to grow organically and

via carefully selected new development or acquisition opportunities.

At 31 October 2023, we had 1.2 million sq ft of unoccupied space in

the UK, 0.2 million sq ft in France and 0.5 million sq ft in Spain and

Benelux, equivalent to c. 47 full new stores. Our continued focus is

on filling the spare capacity in our stores at optimally yield-managed

rates. The operational leverage of our business model will ensure

that the bulk of the incremental revenue converts to profit given the

relatively fixed nature of our cost base.

Trading Performance

Trading Data – Total

Key Measures – Total

Year ended

31 October

2023

Year ended

31 October

2022 Change

Revenue

UK (£’m) 166.5 163.0 2.1%

Paris (€’m) 50.5 48.8 3.5%

Spain (€’m) 4.3 3.6 19.4%

Netherlands (€’m) 7.2 3.6 100.0%

Belgium (€’m) 4.1 2.3 78.3%

Underlying EBITDA

UK (£’m) 106.2 103.6 2.5%

Paris (€’m) 35.0 33.0 6.1%

Spain (€’m) 1.2 1.8 -33.3%

Netherlands (€’m) 3.6 1.3 176.9%

Belgium (€’m) 1.4 0.9 55.6%

Maximum Lettable Area (“MLA”)

UK (let sq ft – million) 5.730 5.620 2.0%

Paris (let sq ft – million) 1.360 1.360 0.0%

Spain (let sq ft – million) 0.340 0.120 183.3%

Netherlands (let sq ft – million) 0.440 0.380 15.8%

Belgium (let sq ft – million) 0.220 0.220 0.0%

Closing Occupancy

UK (let sq ft – million) 4.473 4.637 -3.5%

Paris (let sq ft – million) 1.107 1.112 -0.4%

Spain (let sq ft – million) 0.135 0.095 42.1%

Netherlands (let sq ft – million) 0.352 0.298 18.1%

Belgium (let sq ft – million) 0.164 0.175 -6.3%

Closing Occupancy (% of MLA)

UK 78.1% 82.6% -4.5%

Paris 81.3% 81.7% -0.4%

Spain 39.5% 78.9% -39.4%

Netherlands 80.7% 78.8% 1.9%

Belgium 74.1% 78.8% -4.7%

Average Rate

UK (£) 30.25 28.79 5.1%

Paris (€) 42.05 40.47 3.9%

Spain (€) 33.12 34.07 -2.8%

Netherlands (€) 18.61 19.18 -3.0%

Belgium (€) 21.45 18.79 14.2%

REVPAF

UK (£) 29.07 29.02 0.2%

Paris (€) 37.10 35.81 3.6%

Spain (€) 12.64 29.78 -57.6%

Netherlands (€) 16.53 16.20 2.0%

Belgium (€) 18.68 17.43 7.2%

Safestore Holdings plc | Annual report and financial statements 2023

Chief Executive’s statement continued

Trading Data – Like-For-Like

Key Measures – Like-For-Like

Year ended

31 October

2023

Year ended

31 October

2022 Change

Revenue

UK (£’m) 162.8 160.9 1.2%

Paris (€’m) 50.5 48.8 3.5%

Spain (€’m) 3.6 3.6 0.0%

Underlying EBITDA

UK (£’m) 104.3 101.9 2.4%

Paris (€’m) 35.0 33.0 6.1%

Spain (€’m) 1.6 2.0 -20.0%

Underlying EBITDA Margin %

UK (%) 64.1% 63.3% 0.8%

Paris (%) 69.3% 67.6% 1.7%

Spain (%) 44.4% 55.6% -11.2%

Closing Occupancy

UK (let sq ft – million) 4.392 4.587 -4.3%

Paris (let sq ft – million) 1.107 1.112 -0.4%

Spain (let sq ft – million) 0.084 0.093 -9.7%

Closing Occupancy (% of MLA)

UK 79.2% 83.0% -3.8%

Paris 81.3% 81.7% -0.4%

Spain 77.9% 85.9% -8.0%

Average Occupancy

UK (let sq ft – million) 4.396 4.582 -4.1%

Paris (let sq ft – million) 1.103 1.103 –0.0%

Spain (let sq ft – million) 0.087 0.094 -7.4%

Average Rate

UK (£) 30.31 28.83 5.1%

Paris (€) 42.05 40.47 3.9%

Spain (€) 36.64 34.11 7.4%

REVPAF

UK (£) 29.35 29.10 0.9%

Paris (€) 37.10 35.81 3.6%

Spain (€) 33.33 33.05 0.8%

Details of trading operating KPIs are included in the tables above.

UK revenue was up 2.1% for the year in total and 1.2% on a

like-for-like

basis.

Demand, measured by enquiry levels, was down on the previous year

but ahead of pre-Covid levels.

We believe that our REVPAF

, a measure of how effectively we yield

manage our assets, is the strongest in the industry and materially

above some of our competitors. REVPAF

grew by 0.9% for the year

on a like-for-like

basis.

Like-for-like EBITDA

grew by 2.4% with EBITDA margins improving

by0.8ppts to 64.1% reflecting strong cost control in the business.

Like-for-like costs declined by 1.0% in the year.

Paris

Our Paris business did not experience the same surge in demand

that we saw in the UK during the Covid period but continued to

growsteadily.

Paris revenue grew 3.5% in total for the year on a total and like-for-like

basis. Like-for-like

revenue growth in the fourth quarter was 3.2%.

Our REVPAF

, which we believe is materially ahead of the local

competition, grew by a further 3.6% for the year.

Enquiry levels in Paris were marginally down compared to the same

period last year but ahead of pre-Covid levels.

Like-for-like EBITDA grew by 6.1% with EBITDA margins improving

by1.7ppts to 64.1% reflecting tight cost control in the business.

Like-for-like costs reduced by 2% in the year.

Spain

Since acquiring our Spanish business in 2019 we have opened a

further seven stores. We now have eleven open stores and a pipeline

of a further five stores in Madrid and Barcelona and one in Pamplona.

Over the year our Spanish business grew revenue by 19.4% and

by 44.4% in the fourth quarter. Like-for-like

revenue was flat

over the year.

In line with our expectations, like-for-like

occupancy in Barcelona

has initially been diluted by the new Barcelona stores which have

opened in close proximity and within the same catchment area as an

existing store. Management believes that, given the limited supply in

central Barcelona, once the absorption phase has been passed, the

stores will generate higher revenue and profits and provide significant

long-term value.

Like-for-like EBITDA was broadly flat at store level but declined by

€0.4million after professional fees.

Netherlands

Our Netherlands business, acquired on 30 March 2022, contributed

€7.2 million revenue for the year and €3.6 million of EBITDA.

During the year, a new store in Amersfoort has opened and an

additional store in Apeldoorn was acquired. We now have eleven

stores open in the Netherlands and a pipeline of a further four sites

located in the Randstad area.

The Netherlands business is not treated as like-for-like

during the

2023 financial year. However, the stores that were in the Group

for the whole of the fourth quarter in 2022 delivered 10.7% growth

in Q4 2023.

Belgium

Our Belgium business, acquired with our Netherlands business on

30 March 2022, contributed €4.1 million revenue for the year and

€1.4million of EBITDA.

We have six stores open in Belgium and a pipeline of one additional

site located in Brussels.

The Belgian business is not treated as like-for-like

during the 2023

financial year. However, the stores that were in the Group for the whole

of the fourth quarter in 2022 delivered 10.0% growth in Q4 2023.

Frederic Vecchioli

Chief Executive

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

“EPS

has grown by 348%

over the last ten years.”

Andy Jones

Chief Financial Officer

he table below sets out the Group’s underlying results of operations for the year ended 31 October 2023 and the year ended

31October 2022. To calculate the underlying performance metrics, adjustments are made for the impact of exceptional items,

share-based payments, corporate transaction costs, change in fair value of derivatives, gain or loss on investment properties

and theassociated tax impacts, as well as exceptional tax items and deferred tax. Although not superseding IFRS, management

considers this presentation of earnings to be representative of the underlying performance of the business, as it removes the income

statement impact of items not fully controllable by management, such as the revaluation of derivatives and investment properties, and the impact

of exceptional credits, costs and finance charges.controllable by management, such as the revaluation of derivatives and investment properties,

and the impact of exceptional credits, costs and finance charges.

2023

£’m

2022

£’m

Movement

Revenue 224.2 212.5 5.5%

Underlying costs (82.0) (77.5) 5.8%

Share of associate’s Underlying EBITDA — 0.1 (100.0%)

Underlying EBITDA 142.2 135.1 5.3%

Leasehold costs (14.9) (13.6) 9.6%

Underlying EBITDA after leasehold costs 127.3 121.5 4.8%

Depreciation (1.3) (1.0) 30.0%

Finance charges (15.9) (10.9) 45.9%

Share of associate’s finance charges — (0.4) (100.0%)

Underlying profit before tax 110.1 109.2 0.8%

Current tax (5.1) (5.2) (1.9%)

Adjusted EPRA earnings 105.0 104.0 1.0%

Share-based payments charge (3.5) (11.2) (68.8%)

EPRA basic earnings 101.5 92.8 9.4%

Average shares in issue (m) 217.2 210.9

Diluted shares (for ADE EPS) (m) 219.1 218.9

Adjusted Diluted EPRA EPS

(p) 47.9 47.5 0.8%

Note:

1 Adjusted EPRA earnings excludes share-based payment charges and, accordingly, the Underlying EBITDA, Underlying EBITDA after leasehold costs and underlying profit before tax

measures have been adjusted to exclude share-based payment charges for consistency.

The table below reconciles statutory profit before tax in the income statement to underlying profit before tax in the previous table.

2023

£’m

2022

£’m

Statutory profit before tax 207.8 498.8

Adjusted for:

– Gain on investment properties and investment property under construction (102.6) (389.9)

– Change in fair value of derivatives 1.7 0.3

– Net exchange loss (0.3) —

– Share-based payments 3.5 11.2

– Exceptional items and other exceptional gains — (10.7)

– Exceptional finance income — (0.5)

Underlying profit before tax 110.1 109.2

Safestore Holdings plc | Annual report and financial statements 2023

Financial review

Underlying EBITDA increased by 5.3% to £142.2 million (FY2022: £135.1 million), reflecting a 5.5% increase in revenue and a 5.8% increase to the

underlying cost base. This performance reflects the growth in average rate of 3.5% to £30.26 in 2023 from £29.25 in 2022 offset by a reduction

in occupancy of 5.1ppts to 77.0% in 2023 from 82.1% in 2022, whilst maintaining control over costs. Like for like revenue grew by 2.2% with the

like for like cost base broadly flat compared to 2022.

Leasehold costs increased by 9.6% from £13.6 million to £14.9 million, principally due to the impact of rent reviews across the portfolio in addition

to the Netherlands leaseholds now forming part of the Group.

Underlying finance charges increased by 45.9% from £10.9 million to £15.9 million. This principally reflects interest charges which increased

from £11.9 million in 2022 to £15.0 million in 2023 driven by higher debt levels and higher rates on borrowing to fund the Group’s acquisition and

development activity, offset by the gains made on financial instruments of £0.4 million in 2023 (FY2022: £1.3 million).

As a result, we achieved a 0.8% increase in underlying profit before tax of £110.1 million (FY2022: £109.2 million). The main movement in statutory

profit before tax in the year is the £287.3 million decrease in the gain on investment and development property to £102.6 million (FY 2022:

£389.9million) partially offset by the reduction in the share-based payment charge of £7.7 million to £3.5 million (FY2022: £11.2 million).

Included within statutory profit before tax in 2022 were other exceptional gains of £10.7 million. £5.5 million related to the valuation gain of

Safestore’s 20% investment in the Joint Venture formed in 2019 with Carlyle that arose on acquisition of the remaining 80%, with £5.1 million

related to the profit on the sale of the Nanterre land in Paris in November 2021.

Given the Group’s REIT status in the UK, tax is normally only payable in France, Spain, the Netherlands and Belgium. The underlying tax charge

for the year was £5.1 million (FY2022: £5.2 million), calculated by applying the effective underlying tax rate of 22.5% to the respective underlying

profits earned by the non-UK businesses.

As explained in note 2 to the financial statements, management considers that the most representative Earnings per Share (“EPS”) measure is

Adjusted Diluted EPRA EPS which has increased by 0.8% to 47.9 pence (FY2022: 47.5 pence).

Reconciliation of Underlying EBITDA

The table below reconciles the operating profit included in the income statement to Underlying EBITDA.

2023

£’m

2022

£’m

Statutory operating profit 230.4 514.5

Adjusted for:

– Gain on investment properties (93.8) (381.6)

– Share of associate’s Underlying EBITDA — 0.4

– Depreciation 1.3 1.0

– Variable lease payments 0.8 0.3

– Share-based payments 3.5 11.2

Exceptional items:

– Costs incurred relating to corporate restructuring and exceptional taxation costs — 0.1

Other exceptional gains:

– Profit on sale of land — (5.1)

– Profit on disposal of investment property — (0.2)

– Net gain on deemed disposal of investment in associate — (5.5)

Underlying EBITDA 142.2 135.1

The main reconciling items between statutory operating profit and Underlying EBITDA are the gain on investment properties as well as

adjustments for depreciation, variable lease payments, share-based payment charges, exceptional gains and the share of associate’s Underlying

EBITDA. The gain on investment properties was £93.8 million, as compared to £381.6 million in 2022 primarily due to the stable performance

of the stores over the period, against a period of outperformance in 2021 and 2022. The Group’s approach to the valuation of its investment

property portfolio at 31 October 2023 is discussed below.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Underlying profit by geographical region

The Group is organised and managed in four operating segments based on geographical region. The table below details the underlying

profitability of each region.

2023 2022

£’m

Paris

€’m

Spain

€’m

Benelux

€’m

Total

(CER)

£’m

Paris

€’m

Spain

€’m

Benelux

€’m

Total (CER)

£’m

Revenue 166.5 50.5 4.3 11.3 222.7 163.0 48.8 3.6 5.9 212.5

Underlying cost of sales (51.1) (12.1) (1.9) (5.0) (67.3) (48.2) (12.2) (1.2) (2.5) (61.7)

Store EBITDA 115.4 38.4 2.4 6.3 155.4 114.8 36.6 2.4 3.4 150.8

Store EBITDA margin 69.3% 76.0% 55.8% 55.8% 69.8% 70.4% 75.0% 66.7% 57.6% 71.0%

LFL store EBITDA margin 69.3% 76.0% 75.0% n/a 70.7% 70.3% 75.0% 75.0% n/a 71.3%

Underlying administrative expenses (9.2) (3.4) (1.2) (1.3) (14.2) (11.2) (3.6) (0.6) (1.2) (15.8)

Underlying EBITDA 106.2 35.0 1.2 5.0 141.2 103.6 33.0 1.8 2.2 135.0

EBITDA margin 63.8% 69.3% 27.9% 44.2% 63.4% 63.6% 67.6% 50.0% 37.3% 63.5%

LFL EBITDA margin 64.1% 69.3% 44.4% n/a 64.8% 63.3% 67.6% 55.6% n/a 64.1%

Leasehold costs (8.6) (6.3) (0.5) (0.3) (14.7) (8.0) (5.9) (0.5) (0.1) (13.6)

Underlying EBITDA after leasehold costs 97.6 28.7 0.7 4.7 126.5 95.6 27.1 1.3 2.1 121.4

EBITDA after leasehold costs margin 58.6% 56.8% 16.3% 41.6% 56.8% 58.7% 55.5% 36.1% 35.6% 57.1%

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Total

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Total

£’m

Underlying EBITDA after leasehold

costs (CER) 97.6 24.3 0.6 4.0 126.5 95.6 22.9 1.1 1.8 121.4

Adjustment to actual exchange rate – 0.6 0.1 0.1 0.8 — — — — —

Reported Underlying EBITDA after

leasehold costs 97.6 24.9 0.7 4.1 127.3 95.6 22.9 1.1 1.8 121.4

Note:

CER is Constant Exchange Rate (Euro denominated results for the current period have been retranslated at the exchange rate effective for the comparative period in order to present the

reported results on a more comparable basis).

Underlying EBITDA in the UK increased by £2.6 million, or 2.5%, to £106.2 million (FY2022: £103.6 million), underpinned by a 2.1% or £3.5 million

increase in revenue, which was driven by an increase in average rate of 5.1%, offset by a decrease in average occupancy of 3.3% and an increase

of 1.5% in the Underlying cost base, with like for like underlying costs decreasing 0.8%. The UK also reflected steady like for like revenue growth of

1.2%. The Underlying UK EBITDA margin was slightly up at 63.8% compared to 2022 at 63.6% whilst the like for like EBITDA margin saw a 0.8ppt

increase to 64.1% from 63.3% in 2022.

In Paris, Underlying EBITDA increased by €2.0 million, or 6.1%, to €35.0 million (FY2022: €33.0 million), reflecting a €1.7 million increase in revenue,

arising from a 3.9% increase in the average storage rate coupled with average occupancy remaining constant. The EBITDA after leasehold costs

margin in Paris increased from 55.5% in 2022 to 56.8% in 2023, reflecting the control over the underlying cost base of the portfolio, with a reduction

in underlying cost of sales of 0.8% and administrative costs of 5.6%, offset by underlying leasehold costs increasing by 6.8%. Underlying EBITDA

after leasehold rent in Paris increased by 5.9% to €28.7 million (FY2022: €27.1 million).

In Spain, revenue increased to €4.3 million (FY2022: €3.6 million), arising from the opening of six new stores and a 7.4% increase in like for like

average storage rate, offset by a decrease in like for like average occupancy of 7.4%. Underlying EBITDA decreased by €0.6 million to €1.2 million,

due to an increase in the underlying cost base and administrative expenses resulting from additional employment costs to support the new stores

aswell as their dilutive impact whilst they achieve stabilisation.

On 30 March 2022, Safestore acquired the remaining 80% of the equity owned by Carlyle Europe Realty in the Joint Venture formed in 2019. The

Joint Venture was set up in 2019 to acquire and develop assets in the Netherlands and Belgium in order to leverage Safestore’s operating platform

outside our core markets. The contribution to revenue for the period was €11.3 million and €4.7 million EBITDA after leasehold costs. In 2022, the

businesses contributed seven months’ revenue, which equated to €5.9 million.

The combined results of the UK, Paris, Spain and Benelux delivered a 4.2% increase in Underlying EBITDA after leasehold costs at constant

exchange rates at Group level. Adjusting for a favourable exchange impact of £0.8 million, the combined results of the UK, Paris, Spain and Benelux

reported an Underlying EBITDA after leasehold costs increase of 4.9% or £5.9 million to £127.3 million (FY2022: £121.4 million).

Safestore Holdings plc | Annual report and financial statements 2023

Financial review continued

Revenue

Revenue for the Group is primarily derived from the rental of self storage space and the sale of ancillary products such as insurance and

merchandise (e.g. packing materials and padlocks).

The split of the Group’s revenues by geographical segment is set out below for 2023 and 2022.

2023 % of total 2022 % of total % change

UK £’m 166.5 73% 163.0 76% 2.1%

Paris

Local currency €’m 50.5 48.8 3.5%

Paris in Sterling £’m 43.9 20% 41.4 19% 6.0%

Spain

Local currency €’m 4.3 3.6 19.4%

Spain in Sterling £’m 3.8 2% 3.0 2% 26.7%

Benelux

Local currency €’m 11.3 5.9 91.5%

Benelux in Sterling £’m 10.0 5% 5.1 3% 94.1%

Average exchange rate 1.149 1.178 2.5%

Total revenue £’m 224.2 100% 212.5 100% 5.5%

The Group’s revenue increased by 5.5% or £11.7 million in the year. The average storage rate per sq ft for the Group was, at £30.26, 3.5% higher

than in 2022 (£29.25) offset by occupied space which was 86,000 sq ft lower at 31 October 2023 (6.231 million sq ft) than at 31 October 2022

(6.317 million sq ft).

Adjusting the Group’s revenue for the impact of new stores to a like-for-like basis, revenue has increased by 2.2%. Adjusting for the exchange

rate impact in the current year, Group like for like revenue at constant exchange rates has increased by 1.7%.

In the UK, revenue grew by £3.5 million or 2.1%, and on a like-for-like basis it increased by 1.2%. Occupancy was 164,000 sq ft lower at

31October 2023 than at 31 October 2022, at 4.473 million sq ft (FY2022: 4.637 million sq ft). The average storage rate for the year grew 5.1%, from

£28.79 in 2022 to £30.25 in 2023. On a like for like basis, the average storage rate in the UK also increased by 5.1% to £30.31 (FY2022: £28.83).

In Paris, revenue grew by €1.7 million or 3.5% and on a like-for-like basis it increased by 3.5% to €50.52 million (FY2022: €48.76 million). This was

driven by an increase in the average storage rate of 3.9% to €42.05 for the year (FY2022: €40.47), with average occupancy being flat, with closing

occupancy decreasing to 1.107 million sq ft (FY2022: 1.112 million sq ft).

For Spain, revenue was €4.3 million (FY2022: €3.6 million), reflecting the growth in new stores, with like for like revenue being flat at €3.6 million.

On a like-for-like basis, average rate increased 6.1% to €36.64 (FY2022: €34.11), with a closing occupancy of 0.084 million sq ft (77.9% on a like-

for-like basis).

Our Netherlands and Belgium businesses, acquired on 30 March 2022 from the buyout of the remaining 80% of the equity owned by Carlyle in

the Joint Venture formed in 2019, contributed €11.3 million revenue (FY2022: €5.9 million, representing seven months’ revenue since acquisition

date). Collectively, the businesses saw 43,000 sq ft of occupancy inflows over the year and our Netherlands and Belgium businesses ended the

period with a closing occupancy of 78.5% (FY 2022: 78.8%). The average rate for the period was €18.61 and €21.45 for the Netherlands and

Belgium respectively (FY2022: €19.18 and €18.79 respectively for the seven-month period).

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Analysis of cost base

Cost of sales

The table below details the key movements in cost of sales between 2022 and 2023.

2023

£’m

2022

£’m

Statutory cost of sales (69.9) (63.0)

Adjusted for:

– Depreciation 1.3 1.0

– Variable lease payments 0.8 0.3

Underlying cost of sales (67.8) (61.7)

Underlying cost of sales for FY2022 (61.7)

– New developments cost of sales 2.7

Underlying cost of sales for FY2022 (like-for-like) (59.0)

– Volume related cost of sales 0.9

– Employee remuneration, recruitment and training (1.1)

– Facilities and rates (1.4)

– Enquiry generation (0.5)

Underlying cost of sales for FY2023 (like-for-like; CER) (61.1)

– New developments cost of sales (6.2)

Underlying cost of sales for FY2023 (CER) (67.3)

– Foreign exchange (0.5)

Underlying cost of sales for FY2023 (67.8)

In order to arrive at underlying cost of sales, adjustments are made to remove the impact of depreciation, which does not form part of Underlying

EBITDA, and variable lease payments, which forms part of our leasehold costs in the presentation of our underlying income statement.

Underlying cost of sales increased by £6.1 million in the year, from £61.7 million in 2022 to £67.8 million in 2023. On a like-for-like basis and

at constant exchange rates, cost of sales increased by £2.1 million or 3.6%, with a £1.4 million increase in facilities and business rates due to

business rates reviews, and increases in utilities and store maintenance charges as well as a £1.1 million increase in employee costs offset

by a reduction in volume related costs of sales of £0.9 million. The investment in marketing during the year represented 3.8% of revenue

(FY2022: 3.6%).

Administrative expenses

The table below reconciles reported administrative expenses to underlying administrative expenses and details the key movements in underlying

administrative expenses between 2022 and 2023.

2023

£’m

2022

£’m

Statutory administrative expenses (17.7) (27.1)

Adjusted for:

– Share-based payments 3.5 11.2

– Exceptional items — 0.1

Underlying administrative expenses (14.2) (15.8)

Underlying administrative expenses for FY2022 (15.8)

– New developments administration costs 1.1

Underlying administrative expenses for FY2022 (like-for-like) (14.7)

– Employee related costs 2.7

– Professional fees and administration costs (0.4)

Underlying administrative expenses for FY2023 (like-for-like; CER) (12.4)

– New developments administration costs (1.8)

Underlying administrative expenses for FY2023 (CER) (14.2)

– Foreign exchange —

Underlying administrative expenses for FY2023 (14.2)

Safestore Holdings plc | Annual report and financial statements 2023

Financial review continued

In order to arrive at underlying administrative expenses, adjustments are made to remove the impact of exceptional items, share-based payments

and other non-underlying items.

Underlying administrative expenses decreased by £1.6 million in the year, from £15.8 million in 2022 to £14.2 million in 2023. Like-for-like

administrative expenses at constant exchange rates decreased by £2.3 million. This is the result of a reduction in expected variable employee

remuneration and other employee related costs.

Therefore, total underlying costs (cost of sales plus administrative expenses) on a like-for-like basis and at constant exchange rates have

remained relatively constant at £73.5 million (FY2022: £73.7 million).

Exceptional items and other exceptional gains

In 2022, included within exceptional items and other exceptional gains of £10.7 million are £5.5 million relating to the valuation gain of Safestore’s

20% investment in the Joint Venture and £5.1 million relating to the profit on the sale of the Nanterre land in Paris in November 2021.

In France, the basis on which property taxes have been assessed has been challenged by the tax authority for financial years 2011 onwards.

InNovember 2022 the French Supreme Court delivered a final judgement in respect of litigation for years 2011 to 2013, which resulted in a

partial success for the Group. The Group is separately pursuing litigation in respect of years since 2013 and has lodged an appeal with the

French administrative tribunal against the issues included in assessments for 2013 onwards on which it was ultimately unsuccessful in the French

Supreme Court for the earlier years. A provision is included in the consolidated financial accounts of £2.6 million at 31 October 2023 (31 October

2022: £2.4 million), to reflect the increased uncertainty surrounding the likelihood of a successful outcome. Of the total provided, £0.2 million has

been charged in relation to the year ended 31 October 2023 within cost of sales (Underlying EBITDA) (31 October 2022: £0.3 million within cost

of sales (Underlying EBITDA) and £1.9 million recorded as an exceptional charge in respect of financial years 2012 to 2020).

It is possible that the French tax authority may appeal the decisions of the French Court of Appeal on which the Group was successful to the

French Supreme Court. The maximum potential exposure in relation to these issues at 31 October 2023 is £3.0 million (31 October 2022: £3.0 million)

No provision for any further potential exposure has been recorded in the consolidated financial statements since the Group believes it is more

likely than not that a successful outcome will be achieved, resulting in no additional liabilities.

Gain on investment properties

The gain on investment properties consists of the revaluation gains and losses with respect to investment properties under IAS 40 and the fair

value re-measurement of lease liabilities add-back and other items as detailed below.

2023

£’m

2022

£’m

Revaluation of investment properties 103.5 394.1

Revaluation of investment properties under construction (0.9) (4.2)

Fair value re-measurement of lease liabilities add-back (8.8) (8.3)

Statutory gain on investment properties 93.8 381.6

In the current financial year, the UK business contributed £75.8 million to the positive valuation movement, the Paris business contributed

£20.5million and Benelux contributed £7.5 million. Spain showed a flat valuation movement over the period as the stores start to generate

income, growing towards stabilised occupancy. The gain on investment properties principally reflects the continuing progress in the performance

of the businesses, which has driven further positive changes in the cash flow metrics that are used to assess the value of the store portfolio

which are predominantly based on trading potential, underpinned by the average rate, which has increased by 3.5% to £30.26 in 2023 from

£29.25 in 2022, and capitalisation rates and stabilised occupancy which have remained constant at 5.72% and 89.33% respectively.

Operating profit

Operating profit decreased by £284.1 million from £514.5 million in 2022 to £230.4 million in 2023, comprising a £7.1 million increase in

Underlying EBITDA, a £287.8 million reduction in the gain on investment properties and investment properties under construction primarily due to

the stable performance of the stores over the period, against a period of outperformance in 2021 and 2022, and a reduction in the share-based

payments charge of £7.7 million, as well as the one-off other exceptional gains and exceptional items of £10.7 million in 2022.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Net finance costs

Net finance costs include interest payable, interest on lease liabilities, fair value movements on derivatives, exchange gains or losses, unwinding

of discounts and exceptional refinancing costs. Net finance costs increased by £6.9 million in 2023 to £22.6 million from £15.7 million in 2022,

principally due to the increased interest charges associated with borrowing to fund the Group’s acquisition and development activity and the

amortisation of debt issuance costs associated with the refinancing of the existing Revolving Credit Facility in November 2022, offset by the gains

made on financial instruments.

2023

£’m

2022

£’m

Net bank interest payable (15.1) (11.9)

Amortisation of debt issuance costs on bank loans (1.3) (0.5)

Interest from loan to associates — 0.1

Financial instruments income 0.4 1.3

Other interest received (0.1) 0.1

Underlying finance charges (15.9) (10.9)

Interest on lease liabilities (5.3) (5.0)

Fair value movement on derivatives (1.7) (0.3)

Net exchange gains 0.3 —

Exceptional finance income — 0.5

Net finance costs (22.6) (15.7)

Net bank interest payable 15.1 11.9

Capitalised interest 4.4 1.1

Total interest paid 19.5 13.0

Underlying finance charge

The underlying finance charge (net bank interest payable reflecting term loan, swap and USPP interest costs) increased by £5.0 million to

£15.9million, principally reflecting the increased interest charge associated with the Group’s additional borrowings in the year, drawn to fund the

Group’s acquisition and development activity and the amortisation of debt issuance costs associated with the refinancing. The underlying finance

charge represents the finance expense before exceptional items and changes in fair value of derivatives, amortisation of debt issuance costs and

interest on lease liabilities and is disclosed because management reviews and monitors performance of the business on this basis.

During the year, the Group capitalised interest of £4.4 million (FY2022: £1.1 million) associated with borrowings to fund the acquisition of

properties. Interest is capitalised from the point of acquiring the site until the store opens.

Financial instruments income in the year of £0.4 million (FY2022: £1.3 million) related to the gains made on the expiration of interest rate swaps

that matured in June 2023.

Based on the year-end drawn debt position the effective interest rate is analysed as follows:

Facility

£/€’m

Drawn

£’m

Hedged

£’m

Hedged

Bank

margin

Hedged

rate

Floating

rate

Total

rate

UK Revolver – GBP drawn £400.0 £162.0 — — 1.25% — 5.19% 6.44%

UK Revolver – EUR drawn £41.0 — — 1.25% — 3.88% 5.13%

UK Revolver – non-utilisation £197.0 — — — 0.50% — — 0.50%

US Private Placement 2024 €50.9 £44.6 £44.6 100% 1.59% — — 1.59%

US Private Placement 2026 €70.0 £61.1 £61.1 100% 1.26% — — 1.26%

US Private Placement 2026 £35.0 £35.0 £35.0 100% 2.59% — — 2.59%

US Private Placement 2027 €74.1 £64.6 £64.6 100% 2.00% — — 2.00%

US Private Placement 2028 £20.0 £20.0 £20.0 100% 1.96% — — 1.96%

US Private Placement 2028 €29.0 £25.3 £25.3 100% 0.93% — — 0.93%

US Private Placement 2029 £50.5 £50.5 £50.5 100% 2.92% — — 2.92%

US Private Placement 2029 £30.0 £30.0 £30.0 100% 2.69% — — 2.69%

US Private Placement 2029 €105.0 £91.6 £91.6 100% 2.45% — — 2.45%

US Private Placement 2031 £80.0 £80.0 £80.0 100% 2.39% — — 2.39%

US Private Placement 2033 €29.0 £25.3 £25.3 100% 1.42% — — 1.42%

Unamortised finance costs — (£5.0) — — — — — —

Total £927.8 £725.8 £527.8 73% 3.58%

Capitalised interest costs (£4.4m)

Effective interest rate after capitalised

interest costs 2.97%

Safestore Holdings plc | Annual report and financial statements 2023

Financial review continued

On 11 November 2022, the Group completed the refinancing of its RCFs which were due to expire in June 2023. The previous £250.0 million

Sterlingand €70.0 million Euro RCFs were replaced with a single multi-currency £400 million facility. In addition, a further £100 million uncommitted

accordion facility is incorporated in the facility agreement. The facility is for a four-year term with two one-year extension options exercisable after

the first and second years of the agreement, with the first one-year extension being granted in October 2023.

The margin is at the same level as the previous facility agreements, with the Group paying interest at a margin of 1.25% plus SONIA or EURIBOR

depending on whether the borrowings are drawn in Sterling or Euros. This margin is now linked to ESG targets, which where met enable a

reduction in the margin of up to 5bps to 120bps.

As at 31 October 2023, £203.0 million of the £400.0 million UK Revolver was drawn as £162.0 million and €47.0 million (£41.0 million). The drawn

amounts attract a bank margin of 1.25%, and the Group pays a non-utilisation fee of 0.4375% on the undrawn balance of £197.0 million. The Group

had interest rate hedge agreements in place to June 2023, swapping SONIA on £55.0 million at a weighted average effective rate of 0.69%. Upon

maturity, the Group recognised a £0.4 million gain.

The 2024, 2026, 2027, 2028, 2029 and 2033 US Private Placement Notes are denominated in Euros and attract fixed interest rates of 1.59% (on

€50.9 million), 1.26% (on €70.0 million), 2.00% (on €74.1 million), 0.93% (on €29.0 million), 2.45% (on €105.0 million) and 1.42% (on €29.0 million)

respectively. The Euro denominated borrowings provide a natural hedge against the Group’s investment in the Paris and Spain businesses.

The 2026 (£35.0 million), 2028 (£20.0 million), 2029 (£50.5 million), 2029 (£30.0 million) and 2031 (£80.0 million) US Private Placement Notes are

denominated in Sterling and attract a fixed interest rate of 2.59%, 1.96%, 2.92%, 2.69% and 2.39% respectively.

Predominantly, as a result of the fixed interest loan notes, effectively 73% of the Group’s drawn debt is at fixed rates of interest. Overall, the Group

has an effective interest rate on its borrowings of 3.58% as at 31 October 2023, compared with 2.41% at the previous year end. After adjusting

for capitalised interest costs the Group has an effective interest rate on its borrowings of 2.97%.

Non-underlying finance charge

Interest on lease liabilities was £5.3 million (FY2022: £5.0 million) and reflects part of the leasehold rent costs. The balance of the leasehold

payment is charged through the gain or loss on investment properties line and variable lease payments in the income statement. Overall, the

leasehold rent costs charge increased from £13.6 million in 2022 to £14.9 million in 2023, principally reflecting the increased rent costs across

theportfolio in addition to the Netherlands leaseholds now forming part of the Group.

The Group undertakes net investment hedge accounting for its Euro denominated loan notes.

Tax

The tax charge for the year is analysed below:

Tax charge

2023

£’m

2022

£’m

Underlying current tax (5.1) (5.2)

Current year – exceptional — (0.9)

Current tax charge (5.1) (6.1)

Tax on investment properties movement (8.3) (29.9)

Deferred tax asset 5.8 —

Other — 0.1

Deferred tax charge (2.5) (29.8)

Net tax charge (7.6) (35.9)

The net income tax charge for the year is £7.6 million (FY2022: £35.9 million). In the UK, the Group is a REIT and benefits from a zero rate of tax

on its qualifying earnings. The underlying current tax charge relating to the European businesses amounted to £5.1 million (FY2022: £5.2 million),

calculated by applying the effective overall underlying tax rate of 22.5% to the underlying profits arising earned by the non-UK businesses.

The deferred tax charge relating to Paris, Spain and Benelux was £8.3 million (FY2022: £29.9 million).

A deferred tax asset of £5.8 million (FY2022: £nil) relates to the recognition of carried forward losses in the UK business, recognising the extent

to which the Group believes these losses will be utilised in future to reduce income tax liabilities.

In 2022, an exceptional current year tax charge of £0.9 million arose on the disposal of the Nanterre land.

All deferred tax movements are non-underlying.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Earnings per Share

As a result of the movements explained above, profit after tax for 2023 was £202.4 million as compared with £462.9 million in 2022. Basic EPS

was 93.1 pence (FY2022: 219.5 pence) and diluted EPS was 92.8 pence (FY2022: 212.4 pence).

Adjusted Diluted EPRA EPS is based on the European Public Real Estate Association's definition of earnings and is defined as profit or loss

for the period after tax but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and

the associated tax impacts. The Company then makes further adjustments for the impact of exceptional items, IFRS 2 share-based payment

charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted number of shares. The IFRS 2 cost is

excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element).

Therefore, neither the Company’s ability to distribute nor pay dividends is impacted (with the exception of the associated National Insurance

element). The financial statements disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis and provide a full reconciliation of

the differences in the financial year in which any Long Term Incentive Plan (“LTIP”) awards may vest.

Management introduced Adjusted Diluted EPRA EPS as a measure of EPS following the implementation of the Group’s LTIP schemes,

Management considers that the real cost to existing shareholders is the dilution that they will experience from the LTIP schemes; therefore,

earnings has been adjusted for the IFRS 2 share-based payment charge, and the number of shares used in the EPS calculation has been

adjusted for the dilutive effect of the LTIP scheme.

The Group has exposure to the movement in the Euro/Sterling exchange rate. Based on the FY2023 results, for every 10 cents variance to the

average exchange rate of 1.149, there would be an impact of £1.3 million to Adjusted EPRA Earnings.

Adjusted Diluted EPRA EPS for the year was 47.9 pence (FY2022: 47.5 pence), calculated on a pro forma basis, as if the dilutive LTIP shares

werein issue throughout both the current and prior years, as follows:

2023 2022

Earnings

£’m

million

Pence

per share

Earnings

£’m

million

Pence

per share

Basic earnings 200.2 217.2 92.2 462.9 210.9 219.5

Adjustments:

Gain on investment properties (93.8) — (43.2) (381.6) — (180.9)

Exceptional items — — — 0.1 — —

Other exceptional gains — — — (10.8) — (5.1)

Exceptional finance income — — — (0.5) — (0.2)

Net exchange loss (0.3) — 0.1 — — —

Change in fair value of derivatives 1.7 — 0.8 0.3 — 0.1

Tax on adjustments/exceptional tax 1.4 — 0.6 29.7 — 14.1

Adjusted 109.2 217.2 50.3 100.1 210.9 47.5

EPRA adjusted:

Fair value re-measurement of lease liabilities

add-back (8.8) — (4.1) (8.3) — (3.9)

Tax on lease liabilities add-back adjustment 1.1 — 0.5 1.0 — 0.5

EPRA basic EPS 101.5 217.2 46.7 92.8 210.9 44.1

Share-based payments charge 3.5 — 1.6 11.2 — 5.3

Dilutive shares — 1.9 (0.4) — 8.0 (1.9)

Adjusted Diluted EPRA EPS 105.0 219.1 47.9 104.0 218.9 47.5

Dividends

The Directors are recommending a final dividend of 20.2 pence (FY2022: 20.4 pence) which Shareholders will be asked to approve at the

Company’s Annual General Meeting on 13 March 2024. If approved by Shareholders, the final dividend will be payable on 9 April 2024 to

Shareholders on the register at close of business on 7 March 2024.

Reflective of the Group’s improved performance, the Group’s full year dividend of 30.1 pence is 1.0% up on the prior year dividend of 29.8pence.

The Property Income Distribution (“PID”) element of the full year dividend is 17.62 pence (FY2022: 22.75 pence).

Safestore Holdings plc | Annual report and financial statements 2023

Financial review continued

Property valuation and Net Asset Value (“NAV”)

Cushman & Wakefield Debenham Tie Leung Limited LLP (“C&W”) has valued the Group’s property portfolio. As at 31 October 2023, the total

value of the Group’s property portfolio was £2,681.1 million (excluding investment properties under construction of £108.6 million and net of lease

liabilities of £101.2 million). This represents an increase of £223.3 million compared with the £2,457.8 million valuation as at 31 October 2022.

Areconciliation of the movement is set out below:

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Total

£’m

Paris

€’m

Spain

€’m

Benelux

€’m

Value at 1 November 2022 1,756.8 538.1 27.3 135.6 2,457.8 625.9 31.9 157.7

Currency translation movement — 8.0 0.5 1.7 10.2 — — —

Additions 32.6 7.3 12.1 15.6 67.6 8.4 13.9 17.9

Reclassifications 7.2 — 30.6 4.2 42.0 — 35.2 4.8

Revaluation 75.8 20.5 (0.3) 7.5 103.5 23.6 (0.4) 8.5

Value at 31 October 2023 1,872.4 573.9 70.2 164.6 2,681.1 657.9 80.6 188.9

As described in note 13 of the financial statements, the valuation is based on a discounted cash flow of the net operating income over a ten-

year period and a notional sale of the asset at the end of the tenth year. Accordingly, the gain on investment properties principally reflects the

continuing progress in the performance of the business and the strong underlying trading of the store, underpinned by the average rate which

has increased by 3.5% to £30.26 in 2023 from £29.25 in 2022 with a reduction in occupancy, which is down 5.1ppts to 77.0% in 2023 from 82.1%

in 2022. The valuation assumptions for capitalisation rates and stabilised occupancy remained fairly constant, as explained further below.

The exchange rate at 31 October 2023 was €1.146:£1 compared with €1.163:£1 at 31 October 2022. This movement in the foreign exchange rate

has resulted in a £10.4 million favourable currency translation movement in the year. This has slightly improved the Group Net Asset Value ("NAV")

but had no impact on the loan-to-value ("LTV") covenant as the assets are tested in their functional currency.

The Group’s property portfolio valuation excluding investment properties under construction has increased by £223.3 million from the valuation

of £2,457.8 million at 31 October 2022. This reflects the gain on valuation of £103.5 million, which is explained above, £109.6 million relating to

additions, store refurbishments and reclassifications as well as £10.2 million of favourable foreign exchange movements on the translation of the

European portfolios. On a like for like basis the portfolio increased by 6.2%.

The value of the UK investment property portfolio including investment properties under construction has increased by £118.6 million (comprising

£115.6 million in investment properties and £3.0 million in investment properties under construction) compared with 31 October 2022. This

includes a £74.9 million valuation gain and £43.7 million of capital additions.

In Paris, the value of the property portfolio including investment properties under construction increased by €50.8 million, of which €23.6 million

was valuation gain and capital additions were €27.2 million. The net increase in investment properties, when translated into Sterling, amounted to

£52.2 million, reflecting the foreign exchange impact described above.

In Spain, the value of the property portfolio including investment properties under construction increased by €28.6 million, of which €29.0 million

were additions, with the valuation remaining flat over the period as the stores start to generate income, growing towards stabilised occupancy

where we would expect to see the benefits in the future. The net increase in investment properties including investment properties under

construction when translated into Sterling amounted to £17.3 million, reflecting the foreign exchange impact described above.

In Benelux, the value of the property portfolio including investment properties under construction was €208.7 million, representing an increase of

€44.5 million from 2022. This increase is predominantly made up of €36.0 million of additions as well as a €8.5 million valuation increase.

Our pipeline of future development opportunities remains strong and gives us further confidence in our future growth plans. The pipeline of c.

1.5 million sq ft representing c. 18% of our existing property portfolio is estimated, on stabilisation, to deliver in the range of £25–30 million of

incremental EBITDA.

The Group’s freehold exit yield for the valuation at 31 October 2023 reduced to 5.72%, from 5.78% at 31 October 2022, and the weighted

average annual discount rate for the whole portfolio has increased from 8.48% at 31 October 2022 to 8.54% at 31 October 2023.

C&W’s valuation report confirms that the properties have been valued individually but that if the portfolio were to be sold as a single lot or in

selected groups of properties, the total value could be different. C&W states that in current market conditions it is of the view that there could be

a material portfolio premium.

EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”). Safestore considers EPRA NTA to be most consistent with the nature of the

Group’s business.

The EPRA Basic NTA per Share, as reconciled to IFRS net assets per share in note 15 of the financial statements, was 952 pence (FY2022: 908

pence) at 31 October 2023, up 4.7% since 31 October 2022, and the IFRS reported diluted NAV per share was 884 pence (FY2022: 820 pence),

reflecting a £153.6 million increase in reported net assets during the year.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Gearing and capital structure

As at 31 October 2023, the Group’s borrowings comprised bank borrowing facilities, made up of revolving facilities in the UK as well as US

Private Placements.

Net debt (including lease liabilities and cash) stood at £810.3 million at 31 October 2023, an increase of £112.0 million from the 2022 position

of £698.3 million, reflecting funding for the continued expansion of the Group portfolio. Total capital (net debt plus equity) increased from

£2,491.7million at 31 October 2022 to £2,745.4 million at 31 October 2023. The net impact is that the gearing ratio has increased from 28.0% to

29.5% in the year.

Management also measures gearing with reference to its loan-to-value (“LTV”) ratio defined as net debt (excluding lease liabilities) as a proportion

of the valuation of investment properties and investment properties under construction (excluding lease liabilities). At 31 October 2023 the Group

LTV ratio was 25.4% as compared to 23.6% at 31 October 2022. The Board considers the current level of gearing is appropriate for the business

to enable the Group to increase returns on equity, maintain financial flexibility and achieve our medium term strategic objectives.

Borrowings at 31 October 2023

As at 31 October 2023, £203.0 million of the £400.0 million Revolver was drawn. Including the US Private Placement debt of €358.0 million

(£312.3 million) and £215.5 million, the Group’s borrowings totalled £730.8 million (after adjustment for unamortised finance costs).

As at 31 October 2023, the weighted average remaining term for the Group’s available borrowing facilities is 4.5 years (FY2022: 4.0 years). If we

take into consideration the second one-year extension available under the Revolving Credit Facility, the weighted average remaining term for the

Group’s available borrowing facilities is 5.0 years.

Borrowings under the existing loan facilities are subject to certain financial covenants. The UK bank facilities and the US Private Placement share

interest cover and LTV covenants. The interest cover requirement of EBITDA interest is 2.4:1, where it will remain until the end of the facilities’

terms. Interest cover for the year ended 31 October 2023 is 6.7x (FY2022: 10.4x).

The LTV covenant is 60% under the current facility. As at 31 October 2023, there is significant headroom in both the UK LTV and the French LTV

covenant calculations.

The Group is in compliance with its covenants at 31 October 2023 and, based on forecast projections, is expected to be in compliance for a

period in excess of twelve months from the date of this report.

Cash flow

The table below sets out the underlying cash flow of the business in 2023 and 2022. For statutory reporting purposes, leasehold costs cash

flows are allocated between finance costs, principal repayments and variable lease payments. However, management considers a presentation

of cash flows that reflects leasehold costs as a single line item to be representative of the underlying cash flow performance of the business.

2023

£’m

2022

£’m

Underlying EBITDA 142.2 135.1

Working capital/exceptionals/other (13.0) (2.7)

Adjusted operating cash inflow 129.2 132.4

Interest payments (19.6) (11.8)

Leasehold rent payments (14.9) (13.6)

Tax payments (5.5) (5.6)

Free cash flow (before investing and financing activities) 89.2 101.4

Acquisition of subsidiary, net of cash acquired — (111.5)

Investment in associates (2.3) (0.8)

Capital expenditure – investment properties (119.0) (95.2)

Capital expenditure – property, plant and equipment (2.9) (1.0)

Net proceeds from disposal of land — —

Net proceeds from disposal of investment properties — 6.4

Proceeds from disposal – property, plant and equipment — 0.2

Net cash flow after investing activities (35.0) (99.5)

Issue of share capital 0.2 0.5

Dividends paid (65.9) (56.9)

Net drawdown of borrowings 101.3 132.1

Debt issuance costs (4.9) (0.1)

Financial instruments 0.4 1.3

Swap termination — 0.5

Net (decrease)/increase in cash (3.9) (22.1)

Note:

Free cash flow is a non-GAAP measure, defined as cash flow before investing and financing activities but after leasehold rent payments.

Safestore Holdings plc | Annual report and financial statements 2023

Financial review continued

The first table below reconciles free cash flow (before investing and financing activities) in the table above to net cash inflow from operating

activities in the consolidated cash flow statement. The second table below reconciles adjusted net cash flow after investing activities in the table

above to the consolidated cash flow statement. The third table below reconciles adjusted operating cash inflow to the cash generated from

operations in the consolidated cash flow statement.

2023

£’m

2022

£’m

Free cash flow (before investing and financing activities) 89.2 101.4

Add back: principal payment of lease liabilities 8.8 8.4

Net cash flow from operating activities 98.0 109.8

2023

£’m

2022

£’m

From table above:

Adjusted net cash flow after investing activities (35.0) (99.5)

Add back: principal payment of lease liabilities 8.8 8.4

Net cash flow after investing activities (26.2) (91.1)

From consolidated cash flow:

Net cash inflow from operating activities 98.0 109.8

Net cash outflow from investing activities (124.2) (200.9)

Net cash flow after investing activities (26.2) (91.1)

2023

£’m

2022

£’m

Adjusted operating cash inflow 129.2 132.4

Cash outflow on variable lease payments (0.8) (0.2)

Cash flow from operations 128.4 132.2

Adjusted operating cash flow decreased by £3.2 million in the year. The movement in working capital is primarily associated with settlement of

employment related taxes connected with the maturity of the five and three-year share-based payment schemes at the end of 2022 and early

2023 respectively, and other trade receivable and payables timings. These are offset by the £7.1 million increase in Underlying EBITDA.

Free cash flow (before investing and financing activities) decreased by 12.0% to £89.2 million (FY2022: £101.4 million). The free cash flow

benefited from the increase in Underlying EBITDA which was offset by interest payments and working capital movements.

Investing activities experienced a net outflow of £124.2 million (FY2022: £200.9 million outflow), which included £123.4 million of capital expenditure

on our investment property portfolio. In 2022, the acquisition of the remaining 80% in the Joint Venture as well as the acquisition of the new site

at Christchurch resulted in an outflow of £111.5 million. Of the £123.4 million capital expenditure on investment properties, £43.3 million related

to the UK, £23.5 million related to France, £25.2 million related to Spain and £31.4 million related to Benelux. Of the £123.4 million, £6.7 million

related to maintenance, £95.4 million to new stores and £21.3 million to developments and property, plant and equipment.

Adjusted financing activities generated a net cash inflow of £31.1 million (FY2022: £77.4 million inflow). Dividend payments totalled £65.9 million

(FY2022: £56.9 million). The net drawdown of borrowings was £101.3 million (FY2022: £132.1 million), in order to finance the acquisition of

development and pipeline stores.

The strategic report, including pages 6 to 77, was approved by a duly authorised Committee of the Board of Directors on 16 January 2024

andsigned on its behalf by:

Andy Jones

Chief Financial Officer

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Building and maintaining effective dialogue with stakeholders help inform the Board’s decision-making process and enable it to create value

in the long term. The Board emphasises the importance of continued engagement with our key stakeholders to management. Engagement is

led either directly through the Board and its Committees or by management. Not all information is reported directly to the Board, as the Board

delegates authority to the CEO and management for certain engagement and receives regular stakeholder updates at Board meetings.

Key stakeholders How we engage What they tell us matters to them

Outcomes and highlights from

engagement

Our people

We actively foster an open and

collaborative environment, whilst

prioritising the wellbeing and interest

of our colleagues. We engage with

our colleagues through a number of

mechanisms, including our ‘Make the

Difference’ people forum launched

in 2018 which is a formal workforce

advisory panel. Directors receive a

Health, Safety and Wellbeing report at

each Board meeting.

• Cost of living

• Health and wellbeing and a safe

working environment

• Open and honest communication

• Training and development

opportunities

• Diversity and inclusion

• Reward and recognition initiatives

The Company was pleased to receive

Platinum accreditation from Investors

in People. It continued to enhance

its colleague benefits and learning

and development opportunities.

The Safestore Diversity Pay Gap

Report was published and we will

continue to work together to deliver

a truly inclusive environment for

ourcolleagues.

Our customers

We engage with customers and

prospects in a creative and consistent

way across various communication

channels. We receive their feedback

through face-to-face communication

in store, directly through our

Customer Support Centre, and

online via our website, email, and

social media channels. We invest

in customer service training, tools,

coaching and evaluation to provide a

service that is professional, efficient,

and helpful.

• Understanding their needs and

using our expertise to find them the

right solution

• Knowing that their belongings are

stored safely and securely

• Great customer service

• Reliable communications channels

• Flexibility

Positive ratings on all relevant

customer service rating platforms:

• Feefo Platinum Trusted Service

award for Safestore UK

• Trustpilot ‘Excellent’ rating achieved

in the UK with a Trustpilot ‘Great’

rating maintained in France

• Average Google rating of 4.7

achieved in Spain

• In the Netherlands, a high score

of 4.9 was achieved on Trustpilot,

whilst in Belgium, customer service

was rated 4.7 on Feefo

Our

shareholders

andinvestors

Safestore recognised the importance

of engaging with our investors

and shareholders and values the

input they have into the long term

success of the Company. Our

Chairman and SID are accessible to

shareholders and engage with our

largest institutional shareholders to

discuss governance, strategy and

other significant matters. Our CEO

and CFO regularly engage with all

shareholders and provide more

insight to the Company’s strategic

direction and performance.

• Appropriate remuneration structure

to drive growth and reward

performance, within the confines of

best practice

• Strong financial performance

and returns

• Clear strategy and transparency on

the Company’s performance

• Strong leadership and a strong

reputation for high standards of

business conduct

• Progress against our ESG targets

The Board, through delegated

authority to its Remuneration

Committee, carried out two rounds

of extensive consultation and

engagement with shareholders

representing over 75% of our issued

share capital. The results of this

constructive two-way feedback with

shareholders was a 97.4% approval

of the 2023 Remuneration Policy at

the Company’s General Meeting held

in July 2023.

Our purpose: to add stakeholder value

by developing profitable and sustainable

spaces that allow individuals, businesses,

and local communities to thrive

Safestore Holdings plc | Annual report and financial statements 2023

Engaging with our stakeholders

and our Section 172(1) statement

Key stakeholders How we engage What they tell us matters to them

Outcomes and highlights from

engagement

Our partners

The Executive Team fosters strong

relationships with our business

partners, including Joint Venture

partners, our landlords at our

leasehold sites, our contractors and

our suppliers of goods and services.

Management holds regular meetings

with our JV Partners and quarterly

meetings with our construction

management partner and supplier

forums are held bi-annually to facilitate

an open exchange of feedback.

• Building strong relationships

• Maintaining sustainable

business practices

• Our current and future financial

performance

• Our operational excellence

• Clear communication, fair

engagement and prompt payment

• Corporate governance

Following our previous successful JV

with Carlyle in the Benelux region,

we established a new German JV.

Germany is one of Europe's most

under-penetrated self storage

markets and this is the first stage of

growing Safestore’s presence there.

Our

communities

Location is fundamental to the

success of Safestore stores and

theCompany is committed to

makinga positive contribution to

ourlocal communities.

We seek to deliver long term benefits

to our local communities and be part

of a thriving local economy.

Our Sustainable Development

Goals and sustainability strategy are

developed with our communities at

its heart.

• Minimal negative impact and local

disruption to the community from

our business operations

• Creating local employment

opportunities, both directly and

from our suppliers and customers

• Supporting local community

projects and charities

We provide fundraising support

to existing and new local charity

partners; for example, for the

eleventh year in a row, Safestore UK

teamed up with the WrapUp London

campaign to support its annual coat

drive to help those in need during the

winter of 2022 and during December

our Head Office colleagues supported

a collection for a local foodbank.

We continue to offer subsidised

storage space to local communities

through our ‘charity room in every

store’ scheme and actively seek

out practical and creative solutions

by working with and supporting a

number of charitable causes.

Our

environment

Safestore has a long-standing

commitment to provide both a long

term sustainable investment and

a pleasant and safe environment

for our customers, colleagues and

otherstakeholders.

• We receive feedback from

various stakeholders on what

environmentally sustainable

business practices means to them.

• Awareness of the environmental

impact of our activities and positive

actions to mitigate these.

• Reducing our carbon footprint by

decreasing absolute emissions,

energy usage, water consumption

and waste.

• Green electricity used across the

Group with certification for the UK,

France, the Netherlands, and Spain

• 100% diversion from landfill for UK

operational waste

• 32 UK stores now have gas use

removed, reducing overall usage

year-on-year by 21%

• 7 new plug-in hybrid electric cars

have been purchased, replacing

petrol vehicles in the UK

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

s172 statement

The Board believes that at all times, the Directors of the Company acted in a way that they considered, in good faith, would be most likely to

promote the success of the Company for the benefit of its members as a whole, and in doing so had regard to the matters set out in s172(1) (a)

to(f) (“s172 Matters”). In accordance with s414CZA of the Companies Act 2006, the below provides examples of principal decisions made during

theyear and describes how the Directors had regard for the s172 Matters.

Principal decisions and how the Board had regard to the matters outlined in s172 (1) (a) to (f).

Principal

decision Background Regard for s172 matters

Remuneration

Policy

The Committee noted the significant vote against the

2022 Directors’ Remuneration Report with 74.66% of the

votes in favour of the report. This outcome was expected

by the Board given previous shareholder engagement

which indicated that some investors who voted against

the 2017 Remuneration Policy at its inception had a

policy to vote against all future remuneration reports that

disclosed the vesting value of the 2017 LTIP awards.

A number of those investors which voted against the

2022 Directors’ Remuneration Report noted that their

vote against did not reflect a vote against either the

management or the Board and that they accept fully that

the pay-outs reflect the outstanding value creation for all

shareholders over the five-year period from 2017 to 2022.

With the 2017 LTIPs vested, the Company was required

to put forward a suitable Remuneration Policy which

took into consideration the views of shareholders,

whilst understanding that the motivation and retention

of the Executive Directors and the senior management

team was considered by shareholders to be a critically

important challenge for the Board going forward.

As part of the process undertaken by the Committee when

designing the Policy, it carried out an extensive consultation,

engaging with the Company’s largest shareholders representing

over75% of the issued share capital, as well as investor bodies.

The Board, through delegated authority to its Remuneration

Committee, collated the feedback received and, from that,

understood that some areas of the proposals required further

consideration to ensure we are; aligned with shareholders’ interests;

acting fairly between members; and reflecting their priorities in

promoting the success of the company.

In particular, there was a desire across our shareholder base for the

Company to move to a more conventional remuneration structure

over the medium term, particularly with regard to the split between

base salary and LTIP to deliver upper quartile total remuneration for

exceptional performance.

The Board and shareholders share the belief that it is critical to the

business to appropriately incentivise and retain a strong management

team in order to continue to deliver value for shareholders.

The decision was taken to postpone the vote on the Remuneration

Policy at the 2023 Annual General Meeting and to undertake further

shareholder engagement and consultation on a revised proposal

which took into consideration shareholder sentiment to move to a

more conventional remuneration structure. In July 2023, the Board

gave notice for a General Meeting to seek approval of the revised

Remuneration Policy.

As a result of the extensive engagement and the Board’s ability

to not only take on Board shareholder feedback but to act upon

it, 97.4% of shareholders voted in favour of the Remuneration

Policy at the General Meeting. This could only be achieved through

constructive two-way feedback with shareholders and stakeholders.

Entering

German market

Safestore has developed a multi-country highly scalable

platform with leading marketing and operational expertise

in self storage, with a proven track record for developing

its platform in new markets.

Germany is one of Europe’s most under-penetratedself

storage markets. In December 2022, Safestoreentered

the German self storage market via a new JointVenture

with global investment firm Carlyle which acquired the

seven-store myStorage business with326,000sqft

ofMLA.

This followed our previous successful JV with Carlyle in

the Benelux region, of which Safestore subsequently took

full ownership in March 2022.

The Board carefully considered the best interests of the Company,

for the benefit of its shareholders, when entering the German

market, as it does when entering any new territory.

The decision-making process was influenced by the success of the

JV with Carlyle in the Benelux region. However, the Board gave due

regard to the risk associated with entering a new jurisdiction. Local

advisers assisted in guiding management to better understand local

legislation, tax and reporting requirements, as well as cultural and

social considerations for the region.

The Board gave regard to how the transition of myStorage coming

under the Safestore Group would impact the existing workforce.

Revolving

Credit Facility

On 11 November 2022, the Group completed the

refinancing of its Revolving Credit Facilities, which were due

to expire in June 2023. These new facilities were integral to

Safestore’s growth ambitions, providing the Company with

the flexibility in financing it needs and providing sufficient

capital to draw from to facilitate expansion of the Company’s

portfolio. Following engagement and consultation with

various banks and the syndicate agent, the previous

£250.0million Sterling and €70.0 million Euro RCFs were

replaced with a single, unsecured four-year £400 million

multi-currency facility, which was extended for a further year

to November 2027 in October 2023. In addition, a further

£100 million uncommitted accordion facility was established

with the lenders and incorporated in the facility agreement.

The Board considered how the new facility would contribute to the

long-term success of the Company, in particular its overall impact

on financial stability and strategic growth objectives. In assessing

the associated risk, the Board sought advice from management

andadvisers and considered the terms and conditions of the facility,

including interest rates, financial covenants, and potential penalties,

and what the long term consequences of these could be. As part

ofits process, the Board appointed Lazard as Financial Adviser,

andengaged and consulted with a number of lenders and the

syndicate agent to achieve the best terms available for the Group,

whilst ensuring appropriate due diligence had taken place and

governance processes were in place to mitigate risk and uphold

highbusiness standards.

Safestore Holdings plc | Annual report and financial statements 2023

Engaging with our stakeholders

andourSection 172(1) statement continued

Risks and risk management

The Board recognises that effective risk management requires

awareness and engagement at all levels of our organisation.

Risk management process

The Board is responsible for determining the nature of the risks the

Group faces, and for ensuring that appropriate mitigating actions

are in place to manage them in a manner that enables the Group to

achieve its strategic objectives.

Effective risk management requires awareness and engagement at all

levels of our organisation. It is for this reason that the risk management

process is incorporated into the day-to-day management of our

business, as well as being reflected in the Group’s core processes

and controls. The Board has defined the Group’s risk appetite and

oversees the risk management strategy and the effectiveness of the

Group’s internal control framework. Risks are considered at every

business level and are assessed, discussed and taken into account

when deciding upon future strategy, approving transactions and

monitoring performance.

Strategic risks are identified, assessed and managed by the Board, with

support from the Audit Committee, which in turn is supported by the

Risk Committee. Strategic risks are reviewed by the Audit Committee

to ensure they are valid and that they represent the key risks associated

with the current strategic direction of the Group. Operational risks are

identified, assessed and managed by the Risk Committee and Executive

Team members, and reported to the Board and the Audit Committee.

These risks cover all areas of the business, such as finance, operations,

investment, development and corporate risks.

The risk management process commences with rigorous risk

identification sessions incorporating contributions from functional

managers and Executive Team members.

The output is reviewed and discussed by the Risk Committee,

supported by members of senior management from across the business

and the recently introduced Internal Audit function. The Board,

supported by the Risk Committee, identifies and prioritises the top

business risks, with a focus on the identification of key strategic,

financial and operational risks. The potential impact and likelihood of

the risks occurring are determined, key risk mitigations are identified

and the current level of risk is assessed against the Board’s risk

appetite. These top business risks form the basis for the principal

risksand uncertainties detailed in the section below.

Principal risks and uncertainties

The principal risks and uncertainties described could have the

future potential to have the most significant effect on Safestore’s

strategicobjectives.

The key strategic and operational risks are monitored by the Board

and are defined as those which could prevent us from achieving our

business goals. Our current strategic and operational risks and key

mitigating actions are as follows:

Strategic, operational and emerging risks are

considered at every business level and are

assessed, discussed and taken into account

when deciding upon future strategy, approving

transactions and monitoring performance.

Risk Current mitigation activities Developments since 2022

Strategic risks

The Group develops business

plans based on a wide range of

variables. Incorrect assumptions

about the economic environment,

the self storage market, or changes

in the needs of customers or the

activities of customers may adversely

affect the returns achieved by the

Group, potentially resulting in loss

of shareholder value or loss of the

Group’s status as the UK’s largest

selfstorage provider.

• The strategy development process draws on

internal and external analysis of the self storage

market, emerging customer trends and a range

ofother factors.

• Continuing focus on yield management with

regular review of demand levels and pricing at

eachindividual store.

• Continuing focus on building the Safestore brand,

acquisitions and development projects.

• The portfolio is geographically diversified with

performance monitoring covering the personal

andbusiness customers by segments.

• Detailed and comprehensive sensitivity and

scenario modelling taking into consideration

variableassumptions.

• Monitoring of key data points helping to

understandand minimise uncertainty around

theeconomic environment.

• Robust cost management.

The Group’s strategy is regularly reviewed through

the annual planning and budgeting process, and

regular reforecasts are prepared during the year.

The Group expanded its interests in Europe

through a new Joint Venture with Carlyle, where

Safestore acquired a 10% share of the entity

whichacquired the myStorage business.

The acquisition of new stores together with new

store openings have been fully integrated in the

Group’s store portfolio.

The current macroeconomic pressures arising

from both the supply chain issues associated

withthe rebound in demand post global

restrictions and the conflict in Ukraine as well as

the cost-of-living increases have caused significant

global uncertainty and the impact this will have on

economic growth is unclear. Both pressures have

led to higher inflation which has had a direct impact

on consumer spending that may impact the self

storage market.

The level of risk is considered similar to the

31October 2022 assessment.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Principal risks

Risks and risk management continued

Principal risks and uncertainties continued

Risk Current mitigation activities Developments since 2022

Finance risk

Lack of funding resulting in an inability

to meet business plans or satisfy

liabilities or a breach of covenants.

• Funding requirements for business plans and the

timing for commitments are reviewed regularly as

partof the monthly management accounts.

• The Group manages liquidity in accordance with

Board-approved policies designed to ensure

that the Group has adequate funds for its

ongoing needs.

• The Board regularly monitors financial covenant

ratios and headroom.

• All of the Group’s banking facilities now run to

30November 2026. The US Private Placement

Notes mature between one and ten years.

In the past few years, there have been significant

opportunities to invest in new stores, in both the

UK and throughout Europe.

The Group completed the refinancing of its

Revolving Credit Facilities (“RCFs”) which were due

to expire in June 2023. The previous £250million

Sterling and €70 million Euro RCFs have been

replaced with a single multi-currency £400million

facility. In addition, a further £100 million

uncommitted accordion facility is incorporated

inthe facility agreement. The facility is for a four-

year term with two one-year extension options

exercisable after the first and second years of the

agreement, with the first extension recently being

completed.

The Group’s loan-to-value (“LTV”) ratio has broadly

remained constant during 2023, at c. 25.4%

compared to 23.6% at the prior financial year end.

Therefore, this risk continues to remain low and

broadly unchanged from the 31 October 2022

assessment.

Treasury risk

Adverse currency or interest rate

movements could see the cost of debt

rise, or impact the Sterling value of

income flows or investments.

• Guidelines are set for our exposure to fixed and

floating interest rates and use of interest rate swaps

to manage this risk.

• Foreign currency denominated assets are

financedby borrowings in the same currency

whereappropriate.

• The Group has entered into FX forwards to reduce

the volatility associated with the translation risk

of the Euro.

Euro denominated borrowings continue to provide

an effective, natural hedge against the Euro

denominated net assets of our French and Spanish

businesses.

Although the Bank of England base rate has

increased, with 73% of the Group’s debt at fixed

rates, the Group’s exposure to interest rate shocks

is mitigated.

Although 73% of the Group’s debt is at fixed rates

at 31 October 2023, removing much of the volatility

of interest rate fluctuations, as we move into 2024

and fund the new store pipeline from incremental

drawings on our Revolving Credit Facility, we are

likely to see the cost of debt increase. Therefore,

this risk has increased from the 31 October 2022

assessment.

Safestore Holdings plc | Annual report and financial statements 2023

Principal risks continued

Risk Current mitigation activities Developments since 2022

Property investment and

development risk

Acquisition and development of

properties that fail to meet performance

expectations, overexposure to

developments within a short timeframe

or the inability to find and open new

stores may have an adverse impact on

the portfolio valuation, resulting in loss

of shareholder value.

Corporate transactions may be

at risk of competition referral

or post-transaction legal or

bankingformalities.

Building cost inflation makes it difficult

to estimate accurate cost assumptions

when considering new investments

and developments.

• Thorough due diligence is conducted and detailed

analysis is undertaken prior to Board approval for

property investment and development.

• Execution of targeted acquisitions and disposals.

• The Group’s overall exposure to developments is

monitored and controlled, with projects phased

toavoid over-commitment.

• The performance of individual properties is

benchmarked against target returns and

post-investment reviews are undertaken.

Projects are not pursued when they fail to meet our

rigorous investment criteria, and post-investment

reviews indicate that sound and appropriate

investment decisions have been made.

The capital requirements of development

projectsundertaken during the year have been

carefully forecasted and monitored, and we

continue to maintain significant capacity within

ourfinancing arrangements.

We continue to pursue investment and

development opportunities, and consider our

recent track record to have been successful.

With the current economic uncertainty and

buildingcost inflation expected to peak in

2024,this risk is broadly unchanged from

the31October 2022 assessment.

Valuation risk

Value of our properties declining as

a result of external market or internal

management factors could result in a

breach of borrowing covenants.

In the absence of relevant

transactional evidence, valuations can

be inherently subjective leading to a

degree of uncertainty.

• Independent valuations are conducted regularly

by experienced, independent, professionally

qualified valuers.

• A diversified portfolio which is let to a large number

of customers helps to mitigate any negative impact

arising from changing conditions in the financial and

property markets.

• Headroom of LTV banking covenants is maintained

and reviewed.

• Current gearing levels provide sizeable headroom

on our portfolio valuation and mitigate the likelihood

of covenants being endangered.

The valuation of the Group’s portfolio has

continued to grow during the year, reflecting

valuation gains arising from the increasing

profitability of our portfolio, additions to our

portfolio through corporate acquisitions and the

opening of new development stores.

However, the pressures which have led to higher

inflation which in turn is having a direct impact on

consumer spending may impact the self storage

market. Therefore, the key assumptions that

underpin the investment property valuation are

subject to greater volatility.

This has resulted in the level of risk increasing

with respect to valuation risk compared to the

31October 2022 assessment.

Occupancy risk

A potential loss of income and

increased vacancy due to falling

demand, oversupply or customer

default, which could also adversely

impact the portfolio valuation.

• Personal and business customers cover a wide

range of segments, sectors and geographic

territories with limited exposure to any

single customer.

• Dedicated support for enquiry capture.

• Weekly monitoring of occupancy levels and close

management of stores.

• Management of pricing to stimulate demand,

whenappropriate.

• Monitoring of reasons for customers vacating and

exit interviews conducted.

• Independent feedback facility for customer experience.

• The like-for-like occupancy rate across the portfolio

has continued to grow partly due to flexibility offered

on deals by in-house marketing and the Customer

Support Centre.

The Covid-19 pandemic resulted in a contraction in

economic growth, with the economy recovering over

the period since. This coupled with the cost of living

crisis has led to higher inflation, resulting in higher

interest rates and a level of economic uncertainty.

With this economic outlook remaining uncertain,

with significant inflationary pressures on the

economy, and an associated impact on the cost of

living, this may lead to pressure on occupancy in

the next year.

Growth in our store portfolio diversifies the potential

impact of underperformance of an individual store

but does not fully mitigate the risk.

Therefore, the risk has increased compared

with the assessment for the year ended

31October 2022.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Risks and risk management continued

Principal risks and uncertainties continued

Risk Current mitigation activities Developments since 2022

Real estate investment

trust (“REIT”) risk

Failure to comply with the REIT

legislation could expose the Group

to potential tax penalties or loss of its

REIT status.

• Internal monitoring procedures are in place to

ensure that the appropriate rules and legislation

are complied with and this is formally reported to

the Board.

The Group has remained compliant with all REIT

legislation throughout the year.

There has been no significant change to this risk

since the 31 October 2022 assessment.

Catastrophic event

A major catastrophic event could

mean that the Group is unable to

carry out its business for a sustained

period or health and safety issues

put customers, staff or property at

risk. These may result in reputational

damage, injury or property damage,

or customer compensation, causing a

loss of market share and/or income.

• Business continuity plans are in place and tested.

• Back-up systems at offsite locations and remote

working capabilities.

• Reviews and assessments are undertaken

periodically for enhancements to supplement

the existing compliant aspects of buildings

andprocesses.

• Monitoring and review by the Health and

SafetyCommittee.

• Robust operational procedures, including health

and safety policies, and a specific focus on fire

prevention and safety procedures.

• Fire risk assessments in stores.

• Periodic security review of all systems supported

byexternal monitoring and penetration testing.

• Limited retention of customer data.

• Online colleague training modules.

Continuing focus from the Risk Committee,

withparticular attention to specific issues.

The level of risk is considered similar to the

31October 2022 assessment.

Regulatory compliance risk

The regulatory landscape for UK

listed companies is constantly

developing and becoming more

demanding, with new reporting and

compliance requirements arising

frequently. Non-compliance with these

regulations can lead to penalties, fines

or reputational damage.

Changes in tax regimes could impact

tax expenditure.

The Group is also subject to the risk

of compulsory purchases of property,

which could result in a loss of income

and impact the portfolio valuation.

• Monitoring and review by the Risk Committee.

• Project-specific steering committees to address

theimplementation of new regulatory requirements.

• Liaison with relevant authorities and

tradeassociations.

• Where a store is at risk of compulsory purchase,

contingency plans are developed.

• Legal and professional advice.

• Online training modules.

The framework of tax controls has been reviewed

during the year, ensuring key tax risks are in

line with the Group’s obligations. Allregulatory

compliance risks have been monitored

during the year.

The level of risk is considered similar to the

31October 2022 assessment.

Marketing risk

Our marketing strategy is critical to

the success of the business. This

includes maintaining web leadership

and our relationship with Google.

Alack of effective strategy would

result in loss of income and market

share and adversely impact the

portfoliovaluation.

• Constant measuring and monitoring of our web

presence and ensuring compliance with rules

andregulations.

• Market leading website.

• Use of online techniques to drive brand visibility.

• Our pricing strategy monitors and adapts to

evolving customer behaviour.

We continue to build functional expertise at Group

level in performance marketing, organic and local

searches and analytics.

The Group marketing forum continues to review

performance, market developments and our

ongoing improvement plan.

We have implemented a new value and quality

focused performance marketing strategy.

The level of risk is considered similar to the

31October 2022 assessment.

Safestore Holdings plc | Annual report and financial statements 2023

Principal risks continued

Risk Current mitigation activities Developments since 2022

IT security/GDPR

Cyber-attacks and data security

breaches are becoming more

prominent with a greater level of

sophistication of attacks. This has

the potential to result in reputational

damage, fines or customer

compensation, causing a loss of

market share and income.

• Constant monitoring by the IT department and

consultation with specialist advice firms ensure

wehave the most up-to-date security available.

• Twice yearly formal IT security review at Group

AuditCommittee.

• We minimise the retention of customer and

colleague data in accordance with GDPR

best practice.

• The policies and procedures are under constant

review and benchmarked against industry best

practice. These policies also include defend,

detectand response policies.

During 2022 and continuing into 2023, the Group

continued to invest in digital security. Some of the

changes include more frequent penetration testing

of internet facing systems, adding components

such as anti-ransomware and the replacement

of components such as firewalls to the latest

technology and specification.

The risk is not considered to have increased for

the Group nor is the Group considered to be at

a greater risk than the wider industry; however,

we consider that digital threats on the whole

areincreasing.

The level of risk is considered similar to the

31October 2022 assessment.

Brand and reputational risk

Our reputation, with Safestore’s

growth and the increased awareness

of self storage, including increased

demand driving higher prices, may

potentially attract greater social media

attention and scrutiny.

• Constant involvement by the retail service team to

engage with customers and address their concerns.

• Constant training of the store teams to provide

a clear and concise communication strategy

tocustomers.

• Our understanding of and engagement with all our

stakeholders enable early visibility and identification

of stakeholder dissatisfaction.

The Retail Service function always engages with

customers to resolve any issues or complaints.

Our sustainability report on pages 44 to 77 of

our Annual Report provides insight into how we

engage with our customers and the community.

The level of risk is considered similar to the

31October 2022 assessment.

Geographical expansion

The Group has invested in expanding

the overseas operations of the

business through both subsidiaries

and the Joint Ventures with Carlyle

over recent years.

Suitable new sites may become more

difficult to find, with new sites failing

to achieve the required occupancy

and therefore deliver the required

sales and profitability within an

acceptabletimeframe.

Integration of smaller acquisitions may

be challenging where the infrastructure

of the acquired business is not of

alevel required by the Group.

• Large portfolio of potential new sites, prioritised

based on detailed research into areas most likely

tobe successful.

• Strong operational knowledge and experience

inintegrating new business.

• We have well-documented procedures for the

integration of new acquisitions and a good track

record of recent success.

The level of risk is considered similar to the

31October 2022 assessment.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Risks and risk management continued

Principal risks and uncertainties continued

Risk Current mitigation activities Developments since 2022

Human resource risk

Fundamental to the Group’s

successare our people. As such,

dueto market competitiveness

and cost-of-living increases we

are exposed to a risk of colleague

turnover, and subsequent loss of

keypersonnel andknowledge.

• The Group has an efficient, high performing

and stable management team in place. Our

retention strategy aims to ensure we achieve

long term engagement, through a combination

ofmotivatingfactors.

• We continue to consult regularly with our management

team and monitor involuntary turnover. We maintain

adequate succession for our key talent.

• The Board and Remuneration Committee regularly

review colleague feedback provided through

surveys, our workforce advisory panel and CEO

town hall events. These mechanisms enable

colleagues to raise questions, discuss wider

business issues and provide feedback on subjects

including wider workforce remuneration.

• In early 2021, Safestore received the Investors in

People Platinum Accreditation. This demonstrates

that our colleagues are happy, healthy, safe

and engaged in supporting Safestore to deliver

sustainable business performance.

The level of risk is considered similar to the

31October 2022 assessment.

Climate change

related risk

The Group could be exposed to

climate change in the future through

the related transition and physical

risks. Physical risks could affect

the Group’s stores and may result

in higher maintenance, repair and

insurance costs.

Failing to transition to a low carbon

economy may cause an increase in

taxation, decrease in access to loan

facilities and reputational damage.

• The good working order of our stores is of critical

importance to our business model with our standing

commitment to provide long term sustainable real

estate investment.

• Physical climate risk of new developments is

evaluated as part of the investment appraisal

process for new developments.

• We have a proactive maintenance programme in

place with a regular programme of store inspection,

with our maintenance teams following sustainable

principles and, wherever practicable, using

materials that have recycled content or are from

sustainable sources.

• If we choose to develop a store in a high risk area,

we proactively deploy flood mitigation measures.

• We are committed to building to a minimum

standard of BREEAM “Very Good” on all of our

newstore developments.

• All new store developments are registered

with the Considerate Constructors Scheme,

which considers the public, the workforce and

theenvironment.

As part of our journey to enhance our disclosures

along the recommendations of the TCFD, the

Group is continuing to develop its understanding of

its exposure and vulnerability to climate change risk

and the direct impact on the business. The Group

has identified that the exposure and vulnerability

will be isolated to specific areas of the business,

such as a specific store potentially flooding rather

than a multiple store event, and therefore is limited.

Further, our Sustainability Committee, with

representation from across all levels of the

business, continues to assess the impact of

climate change related risks and is working with

the Board and its suppliers to develop an ambitious

plan to reduce carbon emissions, where the Group

has committed to be operationally carbon neutral

by 2035, requiring an investment to achieve carbon

neutrality of around £3 million.

Our investment appraisal process has been

updated to consider climate change related risks of

new investments and will continue to be evolved as

we continue on the TCFD journey.

As we start to fully understand the exposure to

the Group, as outlined in the TCFD statement,

wehave a much clearer understanding of the risk.

Therefore, the level of risk is considered similar to

the 31 October 2022 assessment and will continue

to be assessed to determine whether thisremains

a principal risk throughout the 2023/24

financial year.

10,000

8,000

6,000

4,000

2,000

1.2

1.0

0.8

0.6

0.4

0.2

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2021/22

(restated)

2022/23

Total operational CO

e (Tonnes)

Group total floor area (M sq. m)

Location-based Market-based Group floor area (M sq. m)

Safestore Holdings plc | Annual report and financial statements 2023

Principal risks continued

Non-financial and sustainability information statement

We comply with the non-financial reporting requirements contained in Sections 414CA and 414CB of the Companies Act 2006. The below table,

and information it refers to, is intended to help stakeholders understand our position on key non-financial matters.

Reporting requirement Some of our relevant policies Where to read more about our policies

Environmental matters

The Company’s sustainability strategy has as one of its four pillars

to mitigate the environmental effects of its activities to reduce its

carbon footprint, improve recycling, reduce reliance on packaging,

minimise waste and improve efficiencies on finite natural resources

in all parts of the Company’s operations. How the Company

seeks to implement its sustainability strategy is set out in Our

Environment on pages 59 to 77 of the sustainability report.

The Company’s approach to environmental matters is overseen by

the Company’s sustainability leadership team.

Employees

• Code of conduct (page 86)

• Equality, diversity and inclusion

policy (page 49)

• Bullying and harassment policy

• Disciplinary and grievance policies

• Health and safety manual (page 50)

The pivotal role of our colleagues is reported within the Our People

section of the sustainability report on pages 48 to 53 and within

the Chief Executive’s statement on pages 10 and 11.

Further commentary for individual policies is set out on the pages

as detailed in the previous column and/or on the Company’s

website. These policies are made available to all colleagues within

the Company’s Colleague Handbook, an internal document

available to all colleagues on the Company’s intranet.

The Company’s approach to pay fairness throughout the Group is

set out on pages 103 to 106 of the Directors’ remuneration report.

Human rights

• Code of conduct (page 86)

• Equality, diversity and inclusion

policy (page 49)

• Data privacy policies

• Anti-slavery statement

• Whistleblowing (“Speak Out”)

policy (page 86)

• IT policy

Further commentary for individual policies is set out on the

pages as detailed in the previous column and/or on the

Company’s website.

These policies are monitored as part of our risk management

processes, overseen by the Audit Committee.

Social matters

The Company’s approach to social matters is set out in Our

Community on pages 56 to 58 of the sustainability report. The

Company’s approach to social matters is set out in the Company’s

Colleague Handbook and Operations Manual, which are internal

documents available to all colleagues on the Company’s intranet.

The Company’s approach to social matters is overseen by the

Company’s sustainability leadership team.

Anti-corruption and

anti-bribery

• Anti-corruption and bribery statement

and policy (page 86)

• Gifts, tips and hospitality

policy (page 86)

Further commentary for individual policies is set out on the pages

detailed in the previous column.

These policies are monitored as part of our risk management

processes, overseen by the Audit Committee.

Description of principal

risks and impact on

business activity

• Risk overview (pages 35 to 40 of the

strategic report)

The Company’s approach to risk management and internal control

is set out in the governance report on page 85.

Description of the

business model

The Company’s market and business model are reported on pages

16 to 18 in the Chief Executive’s statement of the strategic report.

Non-financial key

performance indicators

Non-financial KPIs are summarised in the Chief Executive’s

statement and reported in the financial highlights section of page

1, within the trading performance section of the strategic report on

pages 18 and 19; as well as in the sustainability report on page 44.

Certain Group policies and internal standards and guidelines are not published externally, but are available to all colleagues on the Company’s

intranet and publicly within the Governance section of the Company’s website.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

The Corporate Governance Code requires that the Directors have

considered the viability of the Group over an appropriate period of

time selected by them, declaring whether we believe Safestore can

continue to operate and meet its liabilities, taking into account its

current position and principal risks. The overriding aim is to encourage

Directors to focus on the longer term and be more actively involved

in risk management and internal controls. In assessing viability, the

Board considered a number of key factors, including our strategy (see

page 9), our business model (see pages 17 and 18), our risk appetite

and our principal risks and uncertainties (see pages 35 to 40 of the

strategic report).

The Board is required to assess the Company’s viability over a period

greater than twelve months, and in keeping with the way that the

Board views the development of our business over the long term a

period of three years is considered appropriate, and is consistent

with the timeframes incorporated into the Group’s strategic planning

cycle, with the review considering the Group’s cash flows, dividend

cover, REIT compliance, financial covenants and other key financial

performance metrics over the period. Our assessment of viability

therefore continues to align with this three-year outlook.

In assessing viability, the Directors considered the position presented

in the budget and three-year outlook recently approved by the Board.

In the context of the current environment, four plausible sensitivities

were applied to the plan, including a stress test scenario. These

were based on the potential financial impact of the Group’s principal

risks and uncertainties and the specific risks associated with the

recent pandemic and geopolitical pressures. These scenarios are

differentiated by the impact of demand and enquiry levels, average

rate growth and the level of cost savings, representing the assumption

variations, which can be summarised as follows:

• Base scenario - positive year-on-year enquiries and demand growth

in all countries;

• Upside scenario - representing stronger revenue growth than the

base scenario in the UK and France with some slight cost savings;

• Downside scenario - which assumes a decline in year-on-year

enquiries and demand in the UK and France; and

• Stress Test Scenario - representing a reverse stress test to model

what would be required to breach ICR and LTV covenants which

indicated highly improbable changes would be needed before any

issues were to arise.

In November 2022, the Group completed the refinancing of its

Revolving Credit Facilities (“RCFs”) which were due to expire in June

2023. The previous £250 million Sterling and €70 million Euro RCFs

have been replaced with a single multi-currency £400 million facility,

with a four-year term with extension options and an uncommitted

accordion facility incorporated in the facility agreement.

The impact of the above scenarios and sensitivities has been reviewed

against the Group’s projected cash flow position and financial

covenants over the three-year viability period. Should any of these

scenarios occur, clear mitigating actions are available to ensure that

the Group remains liquid and financially viable.

Such mitigating actions available include, but are not limited to,

reducing planned capital and marketing spend, pay and recruitment

measures, making technology and operating expenditure cuts and

utilisation of available headroom on existing debt facilities.

Further, the continued cost of living and the conflict in Ukraine have

resulted in significant pressure on the economic growth for the UK

and Europe in 2022–23. These potential implications have been

thoroughly considered with respect to the Group’s strategy through

the annual planning and budgeting process. They will continue to

be monitored through regular and periodic reforecasts and scenario

analysis over the next twelve months and align with the three-year

outlook of this review during the 2024 financial year.

The Audit Committee reviews the output of the viability assessment

in advance of final evaluation by the Board. The Directors have also

satisfied themselves that they have the evidence necessary to support

the statement in terms of the effectiveness of the internal control

environment in place to mitigate risk.

Having reviewed the current performance, forecasts, debt servicing

requirements, total facilities and risks, the Board has a reasonable

expectation that the Group has adequate resources to continue in

operation, meet its liabilities as they fall due, retain sufficient available

cash across all three years of the assessment period and not breach

any covenant under the debt facilities. The Board therefore has a

reasonable expectation that the Group will remain commercially

viableover the three-year period of assessment.

Safestore Holdings plc | Annual report and financial statements 2023

Viability statement

We set out in the following section our climate-related financial disclosures consistent with the Task Force on Climate-related Financial

Disclosures (“TCFD”) recommendations and recommended disclosures. The Group has complied with the requirements of LR 9.8.6(8)R by

including climate-related financial disclosures consistent with the TCFD recommendations and recommended disclosures except for the

following matters: metrics and targets (b) Scope 3 emissions. For Scope 3 emissions, the Group currently discloses those aspects under its

operational control (categories 1, 3, 5 and 6). Upstream emissions associated with building development (category 2) may be material in a given

year and, whilst we are unable to quantify them at this stage, we engage with suppliers to ensure they are taking steps to reduce their impact

by using recycled content, reducing waste, minimising contractor travel, and using clean energy on site. Downstream emissions are primarily

customer journeys to and from our stores (category 9). These emissions will naturally abate as consumer vehicles switch to electric propulsion

The Group is not legally required to comply with the reporting requirements of the Companies Act 2006 as amended by the Companies

(Strategic Report) (Climate-related Financial Disclosure) Regulations 2022, as the Group did not meet the reporting criteria of this regulation

in 2022/23.

TCFD recommendation

Included in

FY2023 disclosures? Reference/comment

Governance

a) Describe the Board’s oversight of climate-related risks and opportunities Yes Strategic report page 59

Corporate governance report page 78

b) Describe management’s role in assessing and managing climate-related

risks and opportunities

Yes Strategic report page 59

Strategy

a) Describe the climate-related risks and opportunities the organisation has

identified over the short, medium, and long term

Yes Strategic report pages 60 to 64

b) Describe the impact of climate-related risks and opportunities on the

organisation’s businesses, strategy, and financial planning

Yes Strategic report pages 60 to 64

c) Describe the resilience of the organisation’s strategy, taking into

consideration different climate-related scenarios, including a 2°C

or lower scenario

Yes Strategic report pages 60 to 64

Risk management

a) Describe the organisation’s processes for identifying and assessing

climate-related risks

Yes Strategic report page 60

b) Describe the organisation’s processes for managing climate-related risks Yes Strategic report pages 35, 40 and 60

c) Describe how processes for identifying, assessing, and managing

climate-related risks are integrated into the organisation’s overall

riskmanagement

Yes Strategic report pages 35 and 60

Metrics and targets

a) Disclose the metrics used by the organisation to assess

climate-related risks and opportunities in line with its strategy

andriskmanagement process

Yes Strategic report pages 64 to 65

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse

gas(“GHG”) emissions, and the related risks

Yes, partial Scope 3 Strategic report (GHG reporting)

pages 70 to 77

c) Describe the targets used by the organisation to manage climate-related

risks and opportunities and performance againsttargets

Yes Strategic report pages 47, 59,

62, 68 and 75

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Compliance with Climate-related Financial Disclosures

In recognition of the progress

made in our sustainability

disclosures, Safestore has been

awarded a Silver rating in the

2023 EPRA Sustainability BPR

Awards. In addition, the Global

ESG Benchmark for Real Assets

(“GRESB”) has once again

awarded Safestore an ‘A’ rating

in its 2023 Public Disclosures

assessment and MSCI has

awarded Safestore its second

highest rating of ‘AA’ for ESG.

Sustainability highlights

2023

we published our first diversity pay

gap report

4.5+

customer satisfaction rating in all markets

41%

reduction in accidents involving our

colleagues

gas appliances removed from UK stores

100%

of construction waste diverted away

from landfill in the UK

19.4%

reduction in market-based

operational GHG intensity

“We are proud of our track record in developing

profitable and sustainable spaces that allow

individuals, businesses and local communities

to thrive.”

Frederic Vecchioli

Chief Executive Officer

eing a sustainable organisation is important to our

business processes and operations. We strive to ensure

that our activities reflect our ongoing commitment to

customer care, colleague engagement, responsible

supply chains, driving stakeholder value, and helping to

maintain a sustainable environment for future generations.

The Group continues to contribute to the development of a

sustainable society through focused efforts on the four pillars of our

sustainability strategy:

• creating a diverse, dynamic, and engaged workplace (‘our people’);

• commitment to customer care (‘our customers’);

• developing and maintaining partnerships with local communities

and charities (‘our community’); and

• mitigating the environmental effects of our activities

(‘ourenvironment’).

Our sustainability focus

As a provider of self storage facilities across Western Europe, and the

UK’s largest self storage company, we are very aware of the impact

we can have in society and on the environment and therefore, by

making incremental changes year-on-year, we can ensure that our

actions have positive implications for our colleagues, suppliers, and

wider society.

We are continuously adapting our business to respond to our customers’

changing expectations including improving customer convenience, and

offering flexibility for small, medium, and largebusinesses.

We are proud of the role we continue to play in the lives of our

customers as we meet the demand for space from domestic and

business customers, and we want to keep pace with their needs

andexpectations whilst delivering our commercial objectives.

Our sustainability strategy

Our material sustainability issues, as identified by internal and external

stakeholder engagement (with colleagues, investors, customers,

and partners), fall within four areas, which we call the ‘pillars’ of our

sustainability strategy: our people, our customers, our community,

and our environment. Although these ‘pillars’ do not fundamentally

change, we periodically review our activities to ensure we are focusing

clearly on material areas and are aligned with not only our corporate

goals but also the principles of the UN Global Compact. We track

progress against medium term targets set in 2019 using appropriate

key performance indicators (“KPIs”).

We report in accordance with the European Public Real Estate

Association’s (“EPRA’s”) latest recommendations: EPRA Sustainability

Best Practices Recommendations (“sBPR”), third version September

2017. These recommendations are also aligned with the latest Global

Reporting Initiative (“GRI”) standards.

Once finalised, these indicators and supplemental information

can be downloaded from the relevant section of our website:

www.safestore.co.uk/corporate/investors/report-and-presentations/.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability

Our commitment to sustainability

Delivering our sustainability strategy

During the year, the Board continued to focus on delivering the

Group’s strategy whilst addressing the key environmental, social,

and ethical factors facing Safestore.

We continue to do this by:

• ensuring our colleagues are engaged and have the expertise

todeliver high quality customer service;

• developing long term relationships with local charities and

creating strong ties to the communities where we have a

storage centre;

• strengthening partnerships with our suppliers so we can

serve our customers better and grow our businesses together

going forward;

• managing the resources we use in order to minimise any negative

impact on the environment either through our direct operations

or through our sourcing activities; and

• maintaining our membership of the Self Storage Association

tofurther industry standards and codes of ethics for the benefit

of our customers.

How we ensure sustainability

Our people

Provide a great place to work

Our customers

Deliver a great customer

experience and help customers

live and grow sustainably

Our community

Benefit local communities

Read more on page 53

Our environment

Protect the planet from our activities;

and manage risks to our business

from climate change

OVERVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2023

Alignment to the UN Sustainable

Development Goals

As a Group, we continue to align our sustainability priorities with

the United Nations Sustainable Development Goals (“SDGs”) so

that our actions can contribute to a more significant, shared impact.

Byactively pursuing our business objectives, we are addressing a

wide spectrum of societal challenges, which include issues like climate

change, fostering decent work and economic growth, and promoting

responsible consumption and production.

The SDGs or Global Goals are a call to action for stakeholders

worldwide to come together and address the environmental,

economic, and social disparities that affect global populations

and society.

Achieving these goals necessitates the support and collaboration of

governments, businesses, and individuals. As the role that businesses

must play becomes apparent, the SDGs are becoming an increasingly

important tool for assessing the impact of companies on society.

Our suppliers

We recognise the pivotal role played by our suppliers in our

sustainability journey, and we expect them to act ethically, and share

in our commitments to maintain sustainable business practices.

We strive to engage and work in partnership with our suppliers in a

collaborative effort to align our operations with the United Nations

Sustainable Development Goals (“SDGs”) in order to achieve our

sustainable goals by 2030 (SDG 17: Partnership for the goals).

Sustainability governance

Sustainability is embedded into the day-to-day responsibilities at

Safestore and, accordingly, we have opted for a governance structure

which reflects this. Three members of the Executive Team co-chair a

cross-functional sustainability group consisting of the functional leads

responsible for each area of the business. The Group reports on its

activities directly to the Board.

Marketing Director

Executive sponsor

HR Director

Executive sponsor

Property Director

Executive sponsor

Property/

construction

Functional lead

Operations

Functional lead

Customer

marketing

Functional lead

Risk

Functional lead

Given that a significant amount of our environmental impact comes

from our third party suppliers, we have dedicated substantial effort

to ensure a consistent evaluation of our supply chain with respect to

internationally recognised Environmental, Social, and Governance

(“ESG”) standards. We collaborate with our suppliers and business

associates as we work together towards achieving the SDGs most

pertinent to our business.

As a Group, our focus remains on:

• creating decent workplaces in our pursuit of establishing equitable

and respectful workplaces where our colleagues are treated fairly;

• conducting business ethically and lawfully ensuring that our

operations are conducted with integrity; and

• responsible sourcing, consumption, and production practices that

align with our sustainability principles. Specifically, we work with our

construction partners to ensure the development of our stores has

a minimal impact on the environment and our local communities.

For more details on our sustainable construction standards and

Considerate Constructors Scheme (“CCS”) see page 69.

As we are only as strong as our weakest supplier, our intention is to

continue to demonstrate our commitment, actions, and progress

towards the SDGs, and encourage our suppliers to work towards

achieving similar goals as we head towards a more sustainable and

inclusive future.

In 2023, we are proud to have maintained

the highest rating of five stars by Support

the Goals, a global initiative that rates and

recognises businesses that support the

United Nations Global Goals. This rating is

awarded to businesses which are publicly

engaging suppliers in the pursuit of these

global objectives.

Our stakeholders, including investors, customers, and current or

prospective colleagues, are increasingly looking to us to demonstrate

our contributions to the SDGs. Safestore is now part of a growing

cohort of global organisations committed to advancing the SDGs.

We remain focused on directing our efforts towards the priority areas

where we can make a meaningful impact.

These are:

• Goal 8: Decent work and economic growth

• Goal 11: Sustainable cities and communities

• Goal 12: Responsible consumption and production

• Goal 13: Climate action

PLC Board

Sustainability group

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Sustainability targets and KPIs

The table below outlines the targets we set ourselves in each of the four ‘pillar’ areas. We are pleased to have met the majority of the 2022

targets set in 2019 and our near term focus now shifts to the 2025 targets. In consideration of our plan to achieve operational net zero according

to the market-based method for Scope 2, and the acquisition of store portfolios in the Benelux, the 2025 emissions targets have been revised

this year.

Sustainability

strategy ‘pillar’

Sustainable

businessgoals

Corporate

business

goals

UN Sustainable

Development Goals

Performance

measures (“KPIs”)

Targets

2025 2028

Our

people

A fair place towork

A great

place

towork

Median gender pay gap

Below UK

median

Below UK

median

A safe working

environment

Engagement score Maintain score >80%

Number of reportable

injuries (RIDDOR)

Zero Zero

Investors in People

Maintain IIP

Platinum

Maintain IIP

Platinum

Our

customers

Deliver a great

customer experience

Storage

provider

ofchoice

Customer

satisfactionscore

>4.5 >4.5

Help customers live

and grow sustainably

Our

community

Benefit to local

communities

Help local

economies

thrive

Pro bono value of

space occupied by

localcommunity groups

Opportunity

led

Opportunity

led

Our

environment

Reduce our waste

Achieve

optimal

operational

efficiency

% of construction waste

diverted from landfill in

the UK

100% 100%

% of UK operations

waste to landfill

1% 0%

Reduce our emissions

% of renewables in

owned store electricity

(Group)

100% 100%

Abs. operational GHG

emissions (market based,

tonnes CO

1,014 820

Operational GHG

intensity (market based,

kg CO

e/sq m)

0.93 0.75

% of new stores

achieving EPC B or better

(excl. France)

100% 100%

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

We know our people as individuals and show respect for each other,

enabling everyone to have a voice so that they can bring their full,

unique selves to work.

Our leaders are role models who build high trust. We recognise that

great people management takes time and therefore we have kept

colleague-to-manager ratios low to enable our leaders to invest their

time in our people.

We have built an environment where it’s natural for us to give regular,

honest feedback and to coach in the moment, and formally, we go

beyond mandatory training to promote life-enhancing learning where

everyone can continually evolve.

We are exceptionally proud that we hold the prestigious Investors

in People (“IIP”) Platinum accreditation. We also made the final top

ten shortlist for the Platinum Employer of the Year (250+) category

in TheInvestors in People Awards 2021. We see our colleagues as

an asset, and we understand that it’s our people who truly make

thedifference.

We endeavour to operate employment practices that support

SDG3(Good health and wellbeing), SDG 8 (Decent work and

economic growth) and SDG 10 (Reduced inequalities) through

building, improving, and maintaining safe and secure working

environments, and advocating a diverse and inclusive workforce,

free from harassment and victimisation. Our Wellbeing, Diversity

andInclusion strategies, and People Principles further expand on

howwe make Safestore a great place to work.

More details about the progress we have made in each section of our wellbeing strategy can be found on pages 50 to 53.

Our people

Safestore

wellbeing

strategy

ent

Gre

ces

Build, improve and

maintain safe and

secure working

environments

Facilitate and

driveinternal

development

Role model a

values‑based approach

through our leaders

Advocate and improve

labour rights for all

our colleagues

Promote physical,

mentaland

financial wellbeing

Help our colleagues

to help themselves

Provide

lifelong learning

Advocate a

diverse and

inclusive workforce

eam

Target

Engagement score

Maintainscore >80%

Performance 2022/23

90%

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Equality, diversity, and inclusion

We are committed to providing an inclusive workplace, encouraging

and welcoming diversity with zero tolerance of harassment and

discrimination. More details can be found in our People Principles

document online in the Governance section.

Our strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion

atSafestore.

We are proud of Safestore’s diverse workforce; in our 2021 IIP

survey, 89% of colleagues agreed that Safestore values and respects

individual differences. Our Diversity and Inclusion Strategy is about

embedding and continuing the important work we’ve already done

to enable all our colleagues to feel confident to bring their full, unique

selves to work.

This year, we were pleased to publish our first ever diversity pay

gap report, which includes both ethnicity and gender data. We have

chosen to voluntarily report on our ethnicity pay data because we

believe this is an important step on our diversity and inclusion journey.

Safestore Diversity and Inclusion Strategy

Purpose

Enable colleagues to feel confident to bring their full, unique selves to work

Colleague

journey

Colleague data

and analytics

Positive

action

Leadership and

management

Provide an inclusive

onboarding experience so

colleagues feel welcome

from day one

Integrate inclusion into

culture through our

behaviours and policies

Ensure learning and

development opportunities

are accessible for all

Improve data quality

tounderstand our

workforce diversity

Invest in data development

and analytics

Use diversity data to inform

positive action

Target recruitment at

under‑represented groups

Introduce targeted colleague

support networks and

mentoring schemes

Enable community

affinitygroups

Continue awareness‑

raising activities and

communications

Equip and educate

leaders to encourage

andwelcome diversity

Actively remove bias

Create a safe space foropen

and inclusivediscussion

Colleague journey. This is about ensuring our culture is friendly

and welcoming to all. We want people to be themselves at work, and

initiatives such as our Values and Behaviours framework, health and

wellbeing support from day one, and improving the accessibility of our

learning and development opportunities support our culture.

Colleague data and analytics. In 2023 we have continued to collect

ethnicity data to better understand the ethnic mix of our workforce.

Todate, over 86% of UK colleagues have volunteered their ethnicity

data. This data indicates that 31% of Safestore colleagues belong

to Black, Asian, or ethnic minority groups, compared with 18.3% of

people who make up this group in the UK (2021 census data).

We are proud of the ethnic diversity of our colleagues. We want

to collect more people data to further understand our diverse

communities such as the LGBTQ+ and neurodiverse communities,

toinform even more beneficial and tangible action.

Positive action. This is about recruiting from under-represented

groups, and building campaigns and opportunities for networks to

meet, be listened to and feel supported.

We undertake a number of initiatives to attract, recruit and retain a

diverse workforce, such as removing gender bias from our careers

website and job descriptions, and delivering unconscious bias training

to our recruitment managers.

We have spent time evaluating how we could better support our

female colleagues by working with a network of women to gain key

insights into their experiences at Safestore. Our awareness-raising

activity on our internal communications platform, Yapster, such as

our ‘Christmas Around the World’ and International Women’s Day

campaigns have generated lots of energy and engagement.

Leadership and management. This is about how we support

our leaders to encourage and welcome diversity. For example, our

equality, diversity and inclusion e-Learning module is part of the

induction for all new colleagues joining Safestore.

We want Safestore to be a safe space for discussion and curiosity

toenable colleagues at all levels to continually learn from each other.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our people continued

Equality, diversity, and inclusion continued

Equality, diversity, and inclusion data

Safestore’s gender and ethnicity split is outlined in the table below.

Our gender data is collected primarily for payroll, tax, and pay gap reporting, as part of our colleague onboarding process, where colleagues

are required to supply an answer to the question ‘What is your gender as stated on your birth certificate?’. The data in the table below is at

31October 2023. All colleagues across the Group are included.

Our ethnicity data is voluntarily self-reported by colleagues, via our payroll self-service portal. The data in the table shown below is at 31October

2023. The global landscape for data reporting on ethnicity is complex and, following a review of legal considerations, we only collect ethnicity

data for UK colleagues. The section for voluntary completion is entitled ‘Ethnic Group’ and the options are the self-defined ethnicity (“SDE”)

codes. Colleagues who have not provided data are not included in our calculations. We report on ethnicity as ethnic minority and white; however,

we do consider the data at a more specific level internally.

Further analysis can be found in the 2022 diversity pay gap report on our website. The report also sets out a range of actions we are taking to

help close the gap.

Group gender representation at 31 October 2023

Number of

Board members

Percentage of

the Board

Number of senior

positions on the

Board (CEO, CFO,

SID, and Chair)

Number in

executive

management

Percentage of

executive

management

Number of all

colleagues

(exc. NEDs)

Percentage of

all colleagues

Men 5 56% 4 36 73% 493 65%

Women 4 44% 0 13 27% 261 35%

UK ethnicity representation at 31 October 2023

Number of

Board members

Percentage of

the Board

Number of senior

positions on the

Board (CEO, CFO,

SID, and Chair)

Number in

executive

management

Percentage of

executive

management

Number of all

colleagues

(exc. NEDs)

Percentage of

all colleagues

White 8 89% 4 22 92% 319 70%

Ethnic minority 1 11% 0 2 8% 137 30%

Target for 2027 — — — — 18.3%

Notes:

1 At the time of drafting, the Board had not met the target set out in Listing Rule 9.8.6(9)(a)(ii). With Ian Krieger set to step down as Senior Independent Director at the 2024 Annual General

Meeting, we are in the final stages of selecting his replacement for the role and expect to announce our new Senior Independent Director prior to the Annual General Meeting on 13 March

2024. We can confirm this will be one of our existing female non-executive directors and we will therefore meet all of the targets set out in Listing Rule 9.8.6(9)(a).

2 UK only. Where colleagues have voluntarily disclosed this data.

Positive environment

Colleague engagement

We believe that engaged colleagues, who feel valued by our business,

are the foundation of our customer-focused culture.

Our ‘Make the Difference’ people forum, launched in 2018, is a formal

workforce advisory panel, which enables frequent opportunities for us

to hear and respond to our colleagues.

Our network of 15 ‘People Champions’ collate questions and

feedback from their peers across the business and put them to

members of the Executive Committee.

Our people forum provides a listening culture, enabling high levels of

consultation. Innovation and ideas now come from every level.

We drive change and continuous improvement in responding to the

feedback we receive, via our internal communication channels and

back through our network of People Champions.

Our People Champions help us to continue raising awareness through

a selection of a broad range of topics for discussion on Yapster, our

internal social media platform. The aim is to appreciate our diversity, by

recognising and celebrating festivals and events, as well as individuals,

and to create a safe space for sharing and discussion. Inaddition, we use

Yapster to highlight local successes and recognition between stores and

regions with strong links made toSafestore’s alignment to the SDGs.

Health and safety

Safestore promotes a ‘Safety First’ culture within our business.

Nothing is more important to us than the health, safety and

wellbeing of our colleagues and customers. We are enthusiastic and

uncompromising in our commitment to achieve this safe environment.

We strive to raise the bar and set high standards regardless of country

or regional legislation and regulations. In doing so, we aspire to

prevent all injuries by reducing the Annual Injury Incident Rate (“AIIR”)

by creating a zero-incident culture and setting a new goal of zero

RIDDOR/Recordable injuries for 2024. Our progress includes:

• continuous engagement with our colleagues in developing practical

solutions to improve their own working environment;

• increased focus on colleague health and safety induction

training; and

• implementation of the Health and Safety digital platform that

supports colleagues and leaders across the Group.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Group health and safety statistics

Injuries

In 2023 we recorded a 16% reduction in customer, contractor, and

visitor (“CCV”) accidents, and a 41% reduction in accidents involving

our colleagues.

RIDDOR*/Recordable** injuries

CCV injuries resulting in RIDDOR include one cut to a finger and two

fractures, all requiring customers to attend hospital for further treatment,

and another recordable incident-free year for our colleagues.

Construction

We strive to create a safe workplace for all our construction projects

across all territories. We are constantly challenging our colleagues and

partners to exceed minimum standards. During 2023, the number of

reportable incidents on our construction sites was zero.

Colleague health and safety

Summary:

• 41% reduction in accidents involving our colleagues.

• 13 minor injuries were recorded over the past year.

• No recordable accidents/incidents were reported for this period.

Year ended 31 October 2021 2022 2023

Number of colleagues 648 751 753

Number of minor injuries 19 26 13

Number of reportable injuries

(RIDDOR*/Recordable**) 1 0 0

AIIR*** per 100,000 colleagues 154 0 0

Notes:

* RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences.

** Recordable = any work-related injury or illness that results in loss of consciousness,

days away from work, restricted work, or transfer to another job. Any work-related injury

or illness requiring medical treatment beyond first aid (European countries only).

*** Annual injury incident rate = the number of reportable injuries ÷ average number of

colleagues (x100,000).

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our people continued

Great lifestyle choices

We focus on offering simple, practical wellbeing initiatives, to support

our colleagues to lead healthier and happier lives. We recognise

that it is more important than ever for our colleagues to take care of

themselves and their loved ones.

• Our health cash plan, provided by Medicash, provides colleagues

with everyday reassurance on their health and wellbeing from top

to toe, inside and out, from GP appointments to skin health checks

and physiotherapy to counselling services. It remains a popular

benefit with our colleagues.

• Our Employee Assistance Programme (“EAP”) and other external

support organisations, such as Mind and Mental Health UK, provide

our colleagues with expert guidance and support on everyday

matters whenever they need it.

• Medicash’s new online support platform, Your Care, gives our

colleagues access to 24/7 support and counselling along with personal,

emotional and wellbeing tools for a happier and healthier life.

• We continue to work closely with our occupational health provider,

including the provision of private counselling for colleagues in crisis

requiring additional support.

• Our Cycle to Work scheme remains popular.

• We continue to support new ways of working and this year, we have

increased our part-time and flexible working arrangements.

“ Health and wellbeing initiatives are being given

more attention and people are positive about the

commitment towellbeing.”

Matthew Filbee

IIP Practitioner

Personal growth and education

Learning and development

At Safestore, we have a strong focus on learning and development for

all our colleagues, with a genuine commitment to building a culture of

developing talent.

“ The overall culture of the organisation very

much projects the message that learning and

development are valuable.”

Matthew Filbee

IIP Practitioner

We use innovative methods of learning as well as traditional routes,

withlots of support from our managers at all levels. The survey revealed

that 93% of respondents knew how Safestore invests in learning and

development. In 2023, we delivered over 28,000 hours of training.

All learning is evaluated, with skills development and practice gained

through on-the-job supervision, regular coaching sessions, module

sign-off, observation, and feedback.

Across the Group, colleagues are given extra responsibilities and

opportunities to put skills and knowledge into practice.

Our leaders understand the importance of succession planning.

Talentmanagement is sophisticated and transparent, with performance

management channelled through our Values and Behaviours framework,

to identify and support high potential individuals.

In the UK, both our Sales Consultant and Store Manager Development

programmes continue to grow and upskill our colleagues.

Everyonehas the opportunity to discuss and agree their learning and

development pathways with their line manager, and this is executed

effectively. In our latest IIP survey, 88% of respondents stated that

they have opportunities to learn at work.

We were also delighted that our Store Manager Development

programme, now in its seventh year, had a record number of

distinctions, ten of the eleven participants who graduated in 2023.

Funded by the Apprenticeship Levy this programme provides the

opportunity to complete a Level 3 Management and Leadership

apprenticeship, with the additional opportunity to complete an

Instituteof Leadership and Management (“ILM”) qualification.

Financial wellbeing

We understand that the current cost of living crisis is having a

significant impact on personal finances. As part of Safestore’s wider

wellbeing strategy, we are committed to doing what we can to ensure

the financial wellbeing of our colleagues.

Following a review of our pension provision, we chose to move our

scheme to a new provider, Aviva, and close the Scottish Widows

scheme to future contributions. 78% of our colleagues are members

of our pension scheme and now benefit from a lower management

charge, as well as other fund benefits. We are pleased to offer eligible

colleagues the opportunity to make their pension contributions

through a salary sacrifice arrangement, recognised as the most

tax-efficient way of making pension contributions.

In August, we opened entry into our 2023 Sharesave scheme, and are

delighted that 36% of our colleagues now share in our success by being

a member of at least one of our Sharesave schemes. This is further

evidence of high levels of colleague engagement across the business.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Sean Cosgrove, Commercial Analyst –

Graduate, said:

“I joined Safestore as part of the graduate

scheme towards the end of 2022, working

within the commercial team as an analyst.

Since starting here, I have been overwhelmed

by the amount of support I have received

from both members of my team and from

across the business. Even in the short

amount of time I have been in the business,

I have already assisted in the process of

opening several new stores across Europe

as well as supporting other key elements

of the business. The graduate scheme has

allowed me to further improve my skills whilst

developing new ones, and I'm excited to see

what the future holds for me at Safestore.”

We also support ongoing professional development

by application of our professional qualifications policy,

supporting colleagues to gain formally recognised

qualifications in their chosen field. This commitment is

maintained by Safestore covering the cost of membership

of any relevant professional body such as the Chartered

Institute of Personnel and Development or the Association

ofCharteredCertifiedAccountants.

Case study

Active leaders and engaged teams

Leadership

Our leaders bring out the best in our colleagues, motivating them

towork together to achieve our shared goals and objectives.

We achieve this by keeping colleague-to-manager ratios low,

enabling our leaders to invest time in encouraging and engaging our

colleagues, forming genuine connections with their teams. This is

evidenced by the exceptionally high leadership engagement score

of90%, achieved in our IIP survey.

Our active leaders are energetic and passionate, engaging in honest,

open communication to connect with their colleagues. Our coaching

culture encourages two-way feedback supporting both personal and

professional growth, which is formalised through the setting of clear

goals and expectations, reviewed bi-annually.

Keeping our colleagues connected to the business and to each

other so that they feel supported has remained a focus and we

have introduced new programmes for our new colleagues and

line managers, to help to build knowledge and confidence across

our teams.

“ Many people said how much they love working

at Safestore and the pride in the service

delivered came across loud and clear. Everyone

described afriendly, supportive place to work.”

Matthew Filbee

IIP Practitioner

Values and behaviours

Our values are authentic, having been created by our colleagues.

They are core to the employment life cycle and bring consistency

toour culture.

We are empowered to do the right thing, not necessarily the easiest.

This enables us to feel comfortable challenging behaviours that are

not in line with our values.

We love customers – we deliver much more than

storage; we provide solutions that exceed our customers’

expectations and we expect our people to show

appreciation of our customers and their businesses.

We lead the way – we want people who talk with pride

about Safestore, set themselves high standards and

demonstrate passion for what they do.

We have great people – everyone has a key role to play

within Safestore and we need people who show respect

for everyone, no matter their position. Our people drive

their own performance and are keen to learn from others.

We dare to be different – we want people that adapt to

change and are willing to try new things. Part of daring to

be different involves actively seeking feedback to develop

new and existing skills.

We get it – we want people to be clear on our vision and

goals and, in turn, know what part they play in achieving

them. ‘We get it’ is also about communicating in a clear,

open, and honest way to enable sound decision-making.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Target

Maintain 4.5+ customer satisfaction rating in each market

Performance 2022/23

Customer engagement

Customer‑centric communication

The Group serves a diverse customer base and is committed to

providing excellent customer service across the UK and Europe.

Our success is rooted in our customer-centric approach, ensuring

that we cater to individual preferences and needs through various

communication methods, ensuring high standards, investing in

colleague training and tools, and promoting sustainability initiatives

viasocial media and blogs.

We recognise that customers have varied communication preferences.

We offer email, LiveChat and telephony support through our Customer

Support Centre to ensure that customers can reach us conveniently.

Our highly trained teams handle enquiries efficiently and professionally.

To connect with customers on their terms, we maintain an active

presence on social media platforms. By engaging with our audience

through Facebook, Twitter, Instagram, and LinkedIn, we provide

real-time support, share updates, and gather feedback.

Our customers

Delivering exceptional customer service

Our commitment to customer service drives our success and we

achieve this by empowering our colleagues to go the extra mile to

exceed customer expectations and by maintaining rigorous quality

standards throughout our operations. Regular audits, focused

coaching, and investment in training and development help to

enhance our colleagues’ skills to ensure that we consistently deliver

high quality services.

Promoting sustainable and green business initiatives

Sustainability is a top priority for the Group as we are committed to

reducing our environmental footprint and promoting green initiatives.

To communicate our efforts, we use social media and blogs to reach

our UK and European audience. We regularly share updates about

our sustainability initiatives, such as reducing carbon emissions,

waste reduction, and eco-friendly product development. Our blog

delves deeper into our green practices, offering insights into our

sustainable supply chain, renewable energy usage, and partnerships

with eco-friendly organisations. We ensure that our customers are

well informed about our green initiatives, and we also highlight tips

forcustomers to live a greener life.

Addressing customer feedback and concerns

In today's highly competitive business landscape, understanding

customer needs and expectations is paramount to achieving success.

Customer feedback, in the form of reviews and ratings, provides

invaluable insights into our products and services. We collect, monitor,

and utilise customer reviews as they help us to understand what our

customers expect from our products and services, allowing us to align

and improve what we offer accordingly. In addition, positive reviews

build trust with potential customers. They serve as social proof that

others have tested and approved our products and services, which

can significantly impact purchase decisions. In contrast, negative

reviews pinpoint areas where we can enhance our service, providing

us with invaluable insights for continuous improvement and innovation.

Customer reviews also enable us to benchmark our performance

against competitors. By analysing our strengths and weaknesses

relative to others, we can refine our strategies.

In addition to collating Google reviews, we continue to use Feefo,

an independent reviews and insight platform, to gather real-time

and genuine feedback from our customers. Feefo is renowned for

its credibility in the industry. Our stores in the UK receive regular

feedback allowing customers to view reviews and ratings. In 2023,

Safestore UK achieved a customer service rating of 4.8 with 96%

rating their experience as ‘Excellent’ or ‘Good’.

We are proud to have been recognised with the Feefo Platinum

Trusted Service award in the UK for the fifth year in a row. Thisaward

illustrates our dedication to providing exceptional customer experiences,

underlined by the fact that all our reviews are verified as genuine,

adding an extra layer of credibility to our feedback collection process.

Our team regularly monitors incoming reviews and ratings from

Google and Trustpilot, ensuring timely responses to customer

enquiries or concerns. This helps demonstrate our commitment to

customer satisfaction by identifying trends, common issues, and

opportunities for improvement.

Safestore UK has maintained an average rating of 4.8 on Google and

a TrustScore of 4.8 from 1,496 reviews on Trustpilot, a testament to

the business continuously incorporating customer feedback into our

business processes.

During the year, our French business maintained a TrustScore service

rating of 4.6 with 92% of customers rating their service experience

as ‘Excellent’ or ‘Great’. Additionally, in Spain, we achieved a 4.7 out

of 5 rating for customer feedback collected from Google reviews. In

Belgium, our customer service was rated 4.5 on Google and 4.7 on

Feefo, whilst we achieved a high score of 4.8 out of 5 on Trustpilot in

the Netherlands.

Our colleagues across all markets continue to be recognised for their

hard work in delivering a consistently high level of customer service.

This recognition boosts morale and reinforces our commitment to

making customer satisfaction a top priority as we continue to prioritise

the needs and expectations of our valued customers, ensuring our

ongoing success in the marketplace.

4.8

The Netherlands:

Trustpilot

4.8

UK: Trustpilot

4.8

UK: Google

4.7

Belgium: Feefo

4.7

UK: Feefo

4.6

France: Trustpilot

4.7

Spain: Google

4.5

Belgium: Google

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Empowering customers for sustainable choices

We are committed to enabling our customers to make sustainable

choices that have a positive impact on our planet. This is in

addition to making a positive social and economic contribution to

our communities and reducing the environmental impact of our

operations. We aim to provide tools and options that allow our

customers to embrace sustainability as part of their self storage

journey by:

• using digital contracts now across all markets where customers

can conveniently sign their contract via an online link. 82,850 digital

contracts this year have meant a total reduction of approximately

742,231 printed pages across the Group – equivalent to over 1,480

reams of paper. In the UK alone, there has been a 23% reduction of

printed pages this year versus last (approximately 651,915 pages or

over 1,300 reams of paper);

• championing Refill, a scheme available in 122 Safestore stores

across the UK providing free tap water to make it easy for the public

to refill reusable water bottles instead of buying new plastic ones;

• providing sustainably packaged merchandise and eco-friendly box

products in our stores across all markets; and

• installing electric vehicle charging points in store car parks for

customer use in an effort to promote eco-friendly mobility.

We believe that encouraging our customers to select greener

alternatives is not just an ethical obligation but also a practical

necessity for the wellbeing of our planet, society, and future

generations. It's a collective effort that requires businesses,

individuals, and communities to work together towards a more

sustainable world.

The user-friendly app makes access to storage units simple and

hassle free and offers multiple benefits to our customers, including:

• granting temporary access to others, such as family members

or movers, removing the need to be physically present at the

storage centre;

• usage tracking as the app may provide access logs, allowing

businesses to monitor who accessed their unit and when;

• enhanced security as smart locks often provide better security

features, like real-time alerts and monitoring, reducing the risk of

unauthorised access or theft; and

• time savings as there is no need for customers to wait for

colleagues to assist with access, making the move-in process

quicker and more efficient.

Product quality and innovation

Digital contracts

Delivering a great customer experience is at the heart of our business,

and today's customers expect more than just a product or service;

they demand a seamless and personalised journey that caters to

their unique needs and preferences. This year, we launched digital

contracts in the UK which offers the opportunity for prospective

customers to obtain a storage quote and, within a few minutes, agree

a contract to rent their storage space online on their connected

device. The resulting contract is then sent by email. We have learnt

from and adapted to evolving user behaviour online and we have

appropriately identified customer types who are confident to complete

the storage rental process entirely online.

App‑based storage centres

In addition, the introduction of digital contracts readies the business

for automated, app-based stores like our Christchurch and new

Eastleigh (opened post-year end) locations, where customers can

open storage unit locks with their smartphones, eliminating the need

for physical keys or fobs.

Customer, contractor, and visitor (“CCV”) health

and safety

We pride ourselves on providing a safe environment for our

customers, contractors, and visitors.

Summary:

• 16% reduction in customer, contractor, and visitor accidents.

• 33 injuries were recorded over the past year, three of which were

reportable under RIDDOR*.

• 10 minor injuries were recorded to contractors and 23 to customers.

No injuries were recorded to visitors.

• Injuries were recorded as 14 minor cuts, 14 bumps and bruises and 2

muscular, mainly relating to customers handling their goods.

Year ended 31 October 2021 2022 2023

Number of stores 161 179 190

Customer, contractor, and

visitor movements 206,871 242,559 225,828

Number of minor injuries 46 38 30

Number of reportable injuries

(RIDDOR*/Recordable**) 0 1 3

RIDDOR per 100,000

CCV movements 0 0.4 1.3

Notes:

* RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences.

** Recordable = any work-related injury or illness that results in loss of consciousness,

days away from work, restricted work, or transfer to another job. Any work-related injury

or illness requiring medical treatment beyond first aid (European countries only).

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our community

Strengthening local partnerships and

community wellbeing

Collaborating for positive change

Our business is committed to engaging in co-operative efforts for

constructive transformation within our local community. We believe

that by working together with community organisations, residents,

and other businesses, we can make a meaningful impact. Whetherit's

supporting local initiatives, promoting sustainability, or furthering

economic growth, we are dedicated to being a force for positive

change. Our goal is to create a stronger community where everyone

can thrive.

We continue to do this by:

• developing brownfield sites;

• actively engaging with local communities when we establish a

new store;

• identifying and implementing greener approaches in the way we

build and operate our stores;

• helping charities and communities to make better use of limited

space; and

• creating and sustaining local employment opportunities directly and

indirectly through the many small and medium-sized enterprises

which use our space.

Supporting community development

We are committed to supporting charities and community initiatives

because we understand the importance of championing causes that

resonate with our colleagues, customers, and local neighbours. In 132

stores across the UK, we continue to:

• provide fundraising support to existing and new local

charity partners;

• offer subsidised storage space to local communities through our

‘charity room in every store’ scheme;

• actively seek out practical and creative solutions by working with

and supporting a number of charitable causes; and

• leverage social media and our blog platform to promote our charity

partners and raise awareness of their cause.

During the year, the space occupied by local charities in 184 units across

104 stores was 20,941 sq ft and worth £919,566 (FY2022: £727,356).

Our aspiration is to have at least one subsidised charity room in

every store.

By donating subsidised storage space to registered charities, we

aim to contribute to the wellbeing and progress of the communities

in which we are based. It is our belief that businesses have a

responsibility to give back and create a positive impact, and we are

dedicated to playing our part in building a better future for all.

Responding to local needs

Our commitment to responding to the needs of local charities

and not-for-profit organisations reflects our corporate values

and a demonstration of our dedication to making a meaningful

difference where it matters most – in our community. We continue

to extend financial support to both local and national charities,

offering subsidised storage space to facilitate their invaluable work

in various areas such as homelessness, mental health, domestic

violence, and more.

The provision of subsidised storage space is a tangible way in which

we support the essential work of charities within our local community,

by reducing their costs and empowering them to operate more

efficiently, allocate resources effectively, and, ultimately, focus more on

their primary mission of making a positive impact on those they serve.

During December, our Head Office colleagues supported a collection

for a local foodbank. By actively participating in such charitable

activities, we strengthen our bond as a team and demonstrate our

commitment to making a positive impact on the lives of those in need

within our local community. We believe that, together, we can make a

difference that extends far beyond the walls of our workplace.

Safestore holds a charitable fund with Quartet Community

Foundation, dedicated to supporting local organisations that help

people in need in Bristol, Bath and North East Somerset, North

Somerset and South Gloucestershire. Between April 2022 and

March2023, Quartet awarded over £5 million in grants to over 1,000

local charitable organisations. This year, Safestore’s funding has

been allocated to its Cost of Living Fund, supporting people in the

local community who have been struggling to meet their basic needs.

Grants have particularly focused on food and fuel poverty, supporting

community food projects, and projects providing advice on dealing

with rising energy prices.

Target

Provision of subsidised space and additional support to

highimpactlocal community groups – opportunity led

Performance 2022/23

20,941 sq ft

provided worth

£919,566

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

HandsOn London

For the eleventh year in a row, Safestore UK teamed up with the

WrapUp London campaign to support its annual coat drive to help

those in need during the winter of 2022.

More than 20,300 coats were collected during the campaign, which

began in early November and ran through December. Coats were

distributed to the homeless, refugee families, the elderly, those fleeing

domestic violence, and others living in crisis through a network of over

100 London charities and community groups.

Several Safestore UK centres were again used as local drop-off

points for ease of access for the public, particularly with the ongoing

train strikes at the time. Our colleagues also offered their support

by marketing the campaign via social media, contributing their own

coats, and donating extra storage space to facilitate the sorting,

packing and distribution of the coats.

Since the campaign was launched in 2011, volunteers have collected,

sorted, and distributed a total of 212,032 winter coats, which

has made a real positive difference in the lives of the city’s most

vulnerable people.

Over the years, and in partnership with WrapUp London, Human

Appeal and Rotary Club International, the campaign has extended

outside of London to 21 other collections in major towns and cities

across the UK including Glasgow, Manchester, Birmingham, Bath,

Bristol, Leicester, and Cardiff.

This year, Safestore’s involvement included:

• providing storage space across 20 stores in London, seven stores

in Greater Manchester, four in Essex, two in Birmingham, Bristol,

and Glasgow, and one each in Bolton, Bury, Cardiff, and Leicester;

• provision of 6,230 sq ft of storage space enabling 1,697

campaignvolunteers to spend 5,772 hours sorting and packing

upcoats for distribution;

• the stores acting as drop-off points beyond the campaign period

and receiving numerous donations from other businesses,

community organisations and the public; and

• using our internal and external communications platforms to

raise awareness of the WrapUp London cause and inspiring our

colleagues to get involved locally.

Jon Meech, CEO, HandsOn

London, said:

“On behalf of HandsOn

London, Human Appeal and

Rotary Club International, I

want to extend my heartfelt

gratitude for Safestore’s

unwavering support

during our coat collection

campaign. The generous

provision of storage space

for the eleventh year in a

row has been instrumental

in our mission to assist

those who find themselves

caught in the cost of living

crisis, and especially the

most vulnerable members

of our society, during the

harsh winter months.

With the donated storage space and

Safestore centres acting as drop-off

points, our volunteers were able to

efficiently collect, store, sort, and

pack the 20,300 coats donated by

the public. Safestore’s assistance

made it possible for us to reach

a broader audience and provide

essential winter clothing to those who

would have otherwise faced immense

hardships. We are deeply appreciative

of Safestore's commitment to making

a positive impact on our community

and look forward to continuing this

partnership in the future.

Thank you once again for being a vital

part of our ongoing work to make a

difference in the lives of those who

require oursupportthe most.”

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our community continued

Strengthening local partnerships and community

wellbeing continued

Engaging with stakeholders

We welcome opportunities for constructive engagement and

collaborating with others as part of our commitment to making a

positive impact which extends beyond our core operations. We seek

to align with the values and aspirations of our stakeholders and create

lasting and positive change in the communities we serve.

As a Group, we believe that our colleagues are at the heart of our

business, and therefore we’re keen to create a positive impact

together through working with charities in the local area and

empowering our teams to be active participants in charitable activities.

We are proud to offer financial support to a range of local charities,

ensuring that our customers can trust that their purchases align with

their own values. We take our reputation seriously, and we know our

shareholders and investors do too. We’re committed to doing the

right thing, ensuring that our charitable actions are clear, ethical, and

conducted with integrity.

Our relationships with our suppliers and partners are about more

than just business – they’re about collaboration and aligning our

shared values, which include our sustainable and charitable work.

We’re committed to making our collaborations stronger and more

meaningful going forward. We’re proud to support local causes that

matter to our colleagues across the regions all over the UK – and this

reflects our continued commitment to making a positive difference in

the areas in which we operate.

Engaging with our stakeholders is important as it fosters a

co-operative relationship that enhances our overall effectiveness

and social impact. It reinforces our credibility and inspires trust and

a sense of shared responsibility, leading to a more lasting positive

change in society.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Climate action and emissions reduction

In this section, we explain how we are reducing our impact on the

planet through ongoing improvements in construction standards and

our store operations. We also include our Task Force on Climate-

related Financial Disclosures (“TCFD”) statement, through which we

seek to understand and manage the potential risks (and opportunities)

to our business associated with a changing environment.

Our net zero commitment

We are pleased to share our commitment to become an operationally

net zero group by 2035. This commitment covers Scope 1 and

2 emissions and Scope 3 emissions, which relate to ongoing

operations (water, waste, electricity, transmission and distribution,

andbusiness travel).

Our net zero transition plan is a combination of consumption reduction

initiatives as outlined later in this section such as phasing out gas

heating in the UK portfolio and ensuring all energy consumed

is self-generated (where viable) or purchased from certified

renewable sources.

We also intend to work with our construction partners to understand

the baseline of embodied carbon in our new developments and

explore ways of reducing this where viable. Our sustainable construction

standards aspire to maximise the use of recycled material and

minimise waste whilst building to Building Research Establishment

Environmental Assessment Methodology (“BREEAM”) ‘Very Good’

standards. Based on research by the London Energy Transformation

Initiative (“LETI”) redevelopment projects have an embodied carbon

footprint of approximately 50% of new build developments. As such,

the Group’s flexible model is likely to generate less embodied carbon

than operators which develop new build structures exclusively.

Task Force on Climate‑related Financial

Disclosures (“TCFD”)

Since 2021, we have been on a journey to implement the relevant

recommendations of the TCFD, providing our stakeholders

and investors with insight into the key climate-related risks and

opportunities that are relevant to our business and how these

are identified and managed. We report against the eleven

recommendations of the TCFD in this year’s disclosures.

Governance

Our Chief Executive Officer has overall responsibility for climate-related

risks and opportunities. Day-to-day management of climate-related

issues is carried out by our sustainability group which is co-chaired by

three members of the Executive Management Team (see sustainability

governance section for organisation structure). The Group meets

quarterly and is the forum for determining our sustainability strategy,

reviewing performance, identifying emerging sustainability issues, and

determining their materiality for reporting and escalation via the Group

risk management process.

The Board oversees climate-related risk via the Group risk management

process. The Board takes climate issues into consideration during the

investment appraisal process, where it scrutinises major investments

including acquisition, development, and refurbishment plans which may

include climate-related aspects of design. Ongoing risk identification

and management are through the relevant functional teams, for example

through proposed or actual responses to changes in regulation such as

the Minimum Energy Efficiency Standards (“MEES”) in the UK.

Our commitment to address climate-related risks is embedded across

the Group through a carbon intensity KPI. The performance against

this measure is linked to executive remuneration, aiming to incentivise

progress against carbon emissions reduction targets. The Board reviews

progress on carbon reduction alongside other strategic initiatives annually

as part of the annual targets and remuneration cycle.

Our environment

Target

owned stores powered by 100% renewable electricity

Reduce

UK store waste to landfill by 50% by 2025 vs 2016/17 level

Increase

the diversion of construction waste from landfill to 100%

Reduce

carbon emissions by 20% of 2021 baseline by 2025

Performance 2022/23

100%

completed

100%

completed – we have achieved 100%

diversion from landfill for UK operational

waste ahead of schedule

100%

completed – we have achieved 100%

diversion of UK construction waste

from landfill

17%

on track – absolute market-based

emissions 17% below 2022 despite

portfolio growth; intensity 19% below

2022/23 highlights

Green

electricity used across the Group with certification

for the UK, France, the Netherlands, and Spain

100%

diversion from landfill for UK

operational waste

UK stores now have gas use removed, reducing

overall usage year-on-year by 21%

new plug-in hybrid electric cars have been

purchased, replacing petrol vehicles in the UK

100%

first UK store development with all construction

waste diverted from landfill

590

equivalent number of trees saved from being

felled by using fully recycled paper

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our environment continued

Task Force on Climate‑related Financial

Disclosures (“TCFD”) continued

Risk management

The Sustainability Group is responsible for identifying general

climate-related risks that are managed by the Board via our corporate

risk management process (see the Audit Committee report for details of

our approach to risk management). In addition, the Property function

is responsible for identifying risks specific to new development

projects as part of the investment appraisal process. The Sustainability

Group has conducted workshops incorporating inputs from internal

and external experts and climate model data toexplore the relevance

and potential financial impact of the six risk themes identified in the

TCFD framework over the short (to 2030), medium (to 2050), and long

(beyond 2050) term.

These themes remain under review, particularly the physical risks

tothe Group portfolio as we expand into new markets, climate models

evolve, and governments and municipal authorities develop their own

mitigation strategies.

The completed climate-related risk register is reviewed and approved

by the Audit Committee during the financial year such that the

significance of climate-related risks is considered in relation to risks

identified in the standard risk management process. This ensures

the management of climate-related risks is integrated into the

Group’s overall risk management framework. The climate-related

and quantification of risks and to ensure the register reflects any

materialchanges in the operating environment and business

strategy. Once identified, further details related to each key risk

andopportunity, such as a quantification of the financial impact,

theappropriate strategic response and cost of response and the

variance of key risks in relation to climate-related scenarios, are

developed where possible. These details help to determine the

materiality of each risk and, alongside the impact assessment

outlined above, this allows the Group to prioritise resources in

managing the most material climate-related impacts, determine

the best management response or highlight areas requiring

furtherinvestigation.

An example of the day-to-day management of risks would be the

incorporation of mitigations for high exposure sites into construction

designs before submission for planning approval.

Strategy

Our business is exposed to both risk and opportunity from climate

change primarily as a consequence of owning and operating real

estate assets in the UK and Western Europe. We seek to understand

and mitigate the physical and financial risks that could be material to

the business. We have considered several climate hazards (wildfire,

extreme heat, water stress, coastal flooding, fluvial flooding, drought)

and their relevance to the context of our business. Of these, flooding

risk was assessed as the only relevant risk for the UK, which accounts

for most of the Group property portfolio by value and floor area.

These findings can likely be generalised for Northern European

markets, which will experience similar physical consequences. Whilst

our Spanish assets may experience different physical hazards, they

currently represent less than 3% of the Group by asset value and floor

area and have therefore not been considered separately.

Climate-related risks and opportunities are assessed over multiple

time horizons because we expect that transitional risks are likely to

be ‘front-loaded’ as the international community attempts to meet

the goal of keeping warming to 1.5°C or below. Physical risks to

our assets are likely to increase over time, particularly if the global

economy does not decarbonise at the rate required to keep warming

below the target level. Accordingly, we assess climate-related risks

and opportunities over the short (to 2028), medium (to 2050), and

long (beyond 2050) term. In keeping with the Group’s approach to

risk management materiality, risks were deemed to be low impact

where the potential annual EBITDA impact is estimated to be below

£100k and/or balance sheet impact is below £10 million. High impact

is where either the potential EBITDA impact is greater than £1 million

or a balance sheet (valuation) impact would exceed £25 million

(approximately 1% of property valuation). EBITDA consequence

of between £150 thousand and £1 million or likely balance sheet

impairment between £10 million and £25 million was considered

medium impact.

The assessment of the resilience of the business, specifically the asset

portfolio, was guided by a range of scenarios published by external

agencies, such as the UK Met Office UKCP18, and looked at both

physical and transitional risks under two climate warming scenarios:

one within 1.5 to 2.0°C (RCP 2.6); and one up to 4.0°C (RCP 8.5).

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Risk type Description

Potential

impact Timeframe

Mitigation/

resilience measures

Physical risks

Chronic Physical disruption as a result of longer term shifts in climate

patterns (e.g. sustained higher temperatures or rainfall) that

may cause sea level rise or chronic heat waves. Intensity of

weather (acute risk below) is deemed more significant for the

business. Intensity of weather (acute risk below) is deemed

more significant for the business.

Low Medium–long

Acute Primarily flooding risks (northern Europe markets) triggered

by changes in the frequency of extreme rainfall events (based

on mm/day thresholds), which are projected to increase in all

warming scenarios, especially in summer and late autumn.

Costs that may be incurred for the few stores exposed

include mitigation CAPEX, operational disruption, physical

repairs, clean-up, insurance premia increases, and reduced

customer demand as a result of reputational damage.

Medium Medium–long Avoid high risk exposure

areas. Where a store is

exposed use appropriate

mitigation solutions for the

context (e.g., enhanced

drainage, flood barriers,

water pumps)

As a last resort, relocate to

nearby lower exposure site

Transition risks

Policy and legal

Regulation

relating to stricter

environmental standards

Increased stringency of building and planning requirements

in support of national net zero targets. Local authorities will

seek to use planning systems to deliver progress against

climate goals which will impact on build specification and

associated costs. MEES standards also increasing for

commercial lettings (office locations only) which will drive

upgrade expenditure.

Medium Short Engage planning authorities

to ensure specifications for

new stores are proportionate

given intended use

Identify existing locations

exposed to regulatory

changes – relocate or

change use (remove offices)

if improvements unviable

Climate change litigation Claims brought by stakeholders (e.g. investors and

public interest organisations) perhaps due to failure to

mitigate impacts of climate change, failure to adapt, or the

insufficiency of disclosure around material financial risks.

Low Medium —

Reporting obligations Additional reporting burden on carbon emissions,

including Scope 3.

Low Short —

Technology

Electric vehicles To deliver net zero targets, electric vehicle use will increase

and drive demand for charging point infrastructure for

customers and colleagues. May be mandated by some

local authorities as part of planning process. This will impact

capital budgets for new builds and retrofits. However, this

could also be a revenue opportunity in high traffic locations

with an appropriate commercial arrangement.

Low Short —

Market

Valuation of

properties with lower

efficiency rating

Risk of valuation impairment of assets with low efficiency

ratings. Only heated areas of storage facilities are rated –

these can usually be cost-effectively improved.

Low Medium —

Supply chain resilience/

cost of materials

Risk to development costs due to demand versus supply

of key materials such as insulation and cost of inputs which

may incur carbon premium (steel and cement).

Medium Short–medium Seek to convert existing

structures where possible/

available. Ensure competitive

tendering onmajor projects

Cost and availability

of capital

Risk of downgrading/cost premium as ESG considerations

areincorporated into credit ratings and other lender/

investorscreening.

Low Short —

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our environment continued

Task Force on Climate‑related Financial Disclosures (“TCFD”) continued

Risk type Description

Potential

impact Timeframe

Mitigation/

resilience measures

Transition risks continued

Reputation

Stakeholder risk Increasing public awareness of and appetite to tackle climate

change could create reputational risk if there is failure to

reduce operational and embodied carbon. This could manifest

in delays to planning processes.

Low Short–medium —

Employee risk As colleagues become increasingly engaged with climate

change issues, perceived failure to make progress on

decarbonisation could impact talent recruitment and retention.

Low Short–medium —

In summary, we expect physical climate-related risks to have some

localised impacts on our business. Specifically, the impact of more

frequent intense precipitation events is deemed relevant in the

medium to long term for a subset of exposed stores. We also expect

the transition to a low carbon economy to pose some limited financial

risks in the short term as we respond to changes in regulation and

incur costs associated with decarbonising our building development

and operations. However, there may also be opportunities that arise

from the transition, as well as the physical impacts of extreme weather.

Regardless of the scenario, we believe the Group’s business model

and strategy are likely to be resilient as its assets have overall limited

exposure and vulnerability to climate-related risk. Accordingly, there

are limited ongoing financial implications beyond the cost of meeting

higher building standards and introduction of mitigation measures.

The Group will, therefore, continue to grow its portfolio, assessing

each investment for climate risk in addition to financial considerations

and making necessary physical and financial allowances for mitigations

where appropriate, as it already does today.

The self storage sector is not a significant consumer of energy

when compared with other segments of the real estate landscape.

According to a 2023 report by KPMG and EPRA

, self storage

generates the lowest greenhouse gas emissions intensity of all

European real estate sub-sectors. Reflecting the considerable

progress made on efficiency measures and waste reduction to date,

Safestore’s emissions intensity is considerably lower than the self

storage sector average.

GHG intensity (Scope 1 and 2) by REIT sector

kg CO

e/m

per year (2022)

Industrial

Office

Healthcare

Retail

Self storage

246

Residential

Safestore

Note:

1 KPMG/EPRA: Deep-dive on Non-Financial Performance: Listed Real Estate companies

across Europe, November 2023 (based on EPRA sBPR data sets for 101 listed

companies).

Nevertheless, as part of our commitment to SDG 13 (Climate action)

we have been working towards a previously set near term carbon

reduction target to 2025 (see sustainability targets and KPIs).

Inaddition, we have a commitment to work towards operational net

zero by 2035. This commitment covers Scope 1 and 2 emissions plus

Scope 3 emissions which relate to ongoing operations (water, waste,

electricity transmission and distribution and business travel). Thisyear,

we have introduced an interim target for absolute emissions and

emissions intensity for the financial year ending 2028 as a milestone

on our journey to operational net zero (see sustainability targets and

KPIs on page 47).

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Physical risks

The primary physical risk to our business relates to the increasing

likelihood of extreme weather events (particularly intense precipitation

and flooding). Based on current data, our insurer’s flood assessment

at the last renewal indicates that 91% of the Safestore portfolio by floor

area (90% by insured value) has little to no exposure to river/coastal

flood risk (the chance of a flooding event occurring annually is less

than 0.5%). This corresponds to just twelve current locations in the

UK with an elevated risk. There is a slightly higher exposure to surface

water flood risk – 71% of floor area and value is in stores with less than

0.5% Annual Exceedance Probability.

Accordingly, overall the portfolio has low exposure to acute flooding risk,

and whilst the frequency of extreme precipitation events are projected

to increase in all warming scenarios, the number of medium and high

impact rainfall days (defined by the UK Met Office’s National Severe

Weather Warning Service as 24-hour precipitation thresholds in mm/day

which are designed to be used for identifying prolonged rainfall which

may lead to flooding) are still projected to be relatively rare events

Note:

1 Hanlon, H.M., Bernie, D., Carigi, G. et al. Future changes to high impact weather in the

UK. Climatic Change 166, 50 (2021). https://doi.org/10.1007/s10584-021-03100-5).

Flood risk of UK portfolio

(% of insured value excl. customer goods)

100%

80%

60%

40%

20%

River/coastal %

Low/medium (<0.5% AEP) High (>0.5% AEP)

Surface water %

Research using the most recent granular climate models

confirms

thisprojection of extreme rainfall events and demonstrates the

elevated risks are in the autumn and summer seasons specifically.

Spring and winter events are rarely projected to exceed any impact

threshold out to 2080, even in the low mitigation (RCP 8.5) scenario.

This pattern is expected to be similar across the UK. This research

implies that the probability of these extreme events will rise in autumn

by 5–10% by 2040 and by 20–40% by 2080. The summer season

shows the largest change, especially towards the end of the century,

with probability close to 50% higher for a 1-in-200-year event, i.e.

despite overall summer drying trends in the future, increases in the

intensity of summer rainfall events are projected. It should be noted,

however, that projections for rare events have a high degree of

uncertainty, especially in the outer years of a projection period.

From prior experience, the main consequences of these intense

precipitation events are clean-up, repairs and maintenance costs, and

short term impact on asset availability (temporary closures preventing

new move-ins). Costs are usually recovered from insurers so over

time it is reasonable to expect insurance premia and flood-related

excesses will increase if extreme events occur more frequently.

There is also the longer term risk of lower occupancies in exposed

stores – although customer goods are also insured to their declared

value, there is the possibility of a reputational impact. A reasonable

assumption for the cost based on prior experience (borne by insurers,

direct impact being the impact on cost and availability of insurance) of

remediation after an extreme precipitation event is £100k per event,

regardless of the warming scenario.

Projections of low, medium, and high impact rainfall days in

the UK per year under different warming scenarios

Low Impact Rainfall days/yr

Global Warming Level

160

140

120

100

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

Medium Impact Rainfall days/yr

Global Warming Level

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

High Impact Rainfall days/yr

Global Warming Level

20.0

17. 5

15.0

12.5

10.0

7.5

5.0

2.5

0.0

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

It should be noted that where Safestore invests in property in higher

risk areas, risk mitigation measures are usually proactively deployed.

As such, even in extreme weather scenarios the majority of the UK

portfolio is not likely to be impacted from an ongoing operation,

insurance risk premium or valuation basis. Mitigation measures

(where deployed) should minimise disruption at higher risk sites,

and these locations may, in fact, experience increased demand from

impacted local communities as they seek temporary storage for

their belongings. In locations where mitigation becomes unviable, or

cost/ availability of insurance becomes prohibitive the Group would

seek to relocate to a nearby less exposed site.

Note:

2 Shane O’Neill, Simon F.B. Tett, Kate Donovan. Extreme rainfall risk and climate change

impact assessment for Edinburgh World Heritage sites, Weather and Climate Extremes,

Volume 38, 2022.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our environment continued

Task Force on Climate‑related Financial

Disclosures (“TCFD”) continued

Transitional risks

Our primary transition risks are policy and regulatory changes, which

may increase building specifications to meet net zero objectives.

Local authorities will continue to use planning processes to deliver

against their own objectives and policies such as Minimum Energy

Efficiency Standards (“MEES”) will impact landlords in the residential

and commercial sectors. To ensure relevant UK assets meet MEES

minimum standards, an estimated capital investment of approximately

£650 thousand will be required which will be incorporated into our

annual capital expenditure plans. For more details, see page 66.

Should any of our facilities with offices be unable to cost-effectively

meet MEES standards, we would convert office space into storage

area, which does not have this requirement meaning there is minimal

risk of lost revenue or ‘stranding’ of assets.

Requirements for new projects to meet more stringent energy

efficiency standards and include features such as solar photovoltaic

panels and electric vehicle charging facilities will add to the capital

costs of new developments; however, these would represent a small

portion (1–2%) of a new development project and would likely be

recovered through lower ongoing operating costs over the lifetime of

the building. A related market risk of carbon taxes on core building

materials such as steel could have a larger impact; however, where

possible, Safestore will convert existing structures and is, therefore,

less exposed to these increases in cost and embodied carbon.

Our transition plan is a combination of operational improvements,

including consumption reduction initiatives such as phasing out of

gas heating in the portfolio and ensuring all energy consumed is

self-generated (where viable) or purchased from certified renewable

sources. New buildings introduced to the portfolio will be developed

to high energy efficiency standards. Some residual emissions may

require the purchase of carbon offsets from a credible scheme(s).

Weestimate that the roadmap to operational net zero will require a

total investment of c. £3 million to 2035, with investments in later years

subject to detailed business case evaluation.

Opportunities

The transition to a low-carbon economy is likely to present

opportunities as well as risks. In general, businesses that build and

operate sustainable facilities are well-positioned in a world where

both local planning departments and end consumers are making

decisions with climate change in mind. In addition, reducing the

energy intensity of the business and reliance on gas is financially

advantageous, particularly in an era of volatile energy prices. Removing

gas-burning appliances from facilities also reduces associated fire

and carbon monoxide exposure risk. However, it should be noted that

the business is not an intensive user of energy (energy costs were

1.5% of revenue in 2022), unlike other more intensive usage sectors,

so the variability of power prices is not considered a significant risk

or opportunity. Nevertheless, it is likely that buildings with lower

operating costs and carbon emissions intensity will attract a valuation

premium and lower cost of funding over the medium to longer term.

Assuming PV installations progress, and grid connections are made,

and a suitable trading mechanism emerges, sales of excess power

generated from rooftop solar installations could become a revenue

stream in the medium term in addition to supporting decarbonisation

in our communities and the wider economy.

The provision of electric vehicle charging facilities could deliver a

customer benefit in the short term whilst also reducing associated

Scope 1 (business travel) and Scope 3 (customer travel to/from stores)

emissions and provide another ancillary revenue stream.

It should also be noted that well-positioned self storage facilities

could be seen as adding ‘system resilience’ to supply chain

disruptions and facilitating recovery post-extreme weather events via

temporary storage of business or consumer goods. This would be

of more relevance in the longer term as chance of extreme weather

eventsincreases.

Metrics and targets

To assess climate risk, we internally record and monitor a range of

construction and operational impact metrics such as development

cost trends, unit availability (offline units) and damage claims relating

to water damage. We also track and disclose the floor risk exposure of

the UK property portfolio (see section on physical risks).

In addition, we monitor and report a range of metrics relevant to the

property sector per the EPRA sBPR recommendations. Specifically,

we disclose:

• energy consumption (gas and electricity) and building energy

intensity per unit floor area;

• water use and water use intensity;

• waste generation including the proportion diverted to landfill;

• Scope 1 and 2, and operational Scope 3 greenhouse gas

emissionsand emissions intensity; and

• Energy performance ratings (EPC or equivalent) of new

storedevelopments.

These are disclosed in the following section of this report, on pages

65 to 77. Specifically, Scope 1, 2 and 3 emissions are disclosed in the

mandatory greenhouse gas reporting and Streamlined Energy and

Carbon Report on pages 70 to 77.

Supplementary data can be found in the Sustainability section of our

website, including the basis of reporting and independent limited

assurance on selected metrics. Scope 3 emissions which relate

to ongoing operations (water, waste, electricity transmission and

distribution and business travel) are measured and actively managed.

Upstream Scope 3 emissions relating to purchased goods and capital

expenditure are not currently reported, but we are actively engaging

with our suppliers to ensure these are being considered, for example,

through consolidation of deliveries to our stores or the proportion of

recycled material used in development projects. Downstream Scope

3 emissions (primarily customer journeys to our stores) are likely to

be material; however, we are not currently able to measure or report

these. We contend that collecting and reporting this data would not

be an appropriate use of time or resources given that emissions will

naturally abate over time as the consumer vehicle fleet and electricity

grid decarbonise in each of our markets.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Strategy for operational net zero

We will achieve operational net zero by 2035, through:

a) Reducing and optimising what we use

• Completion of lighting efficiency programme

(externalsignageandcustomer unit lighting)

• Voltage optimisation at selected sites

• Decommissioning of gas appliances

• Installation of building management

• Systems for remote monitoring and power

management(businesscase dependent)

b) Using only zero carbon energy

• Installation of solar photovoltaic on new build stores

where viable

• Securing certified green electricity through PPAs and/or

‘highquality’ tariffs

• Transition of company car fleet to PHEVs* and BEVs*

andintroducing charging points

• Retrofit of rooftop solar photovoltaic to selected stores

(businesscase dependent)

Total investment of

c. £3m spread until 2035

Note:

* PHEV = plug-in hybrid electric vehicles; BEV = battery electric vehicles.

Sustainable operations

Renewable energy

Electricity

We are committed to the use of green electricity. We actively seek to

reduce our overall energy usage through efficiency programmes and

self-generate our power where practicable.

Across our UK estate, we are supplied by 100% REGO certified

renewable energy. This electricity is supplied by multiple renewable

sources, including wind farms off East Anglia and Glebe Farm

Solar Park

We have solar installations with a total capability of over 150kW

These panels provide self-generated electricity, allowing us to reduce

our demand for grid electricity, and as a result, we have seen a

reduction in the associated costs.

Like-for-like usage (UK)

Last year This year %change

Electricity (MWh) 11,943 11,412 (4.4)%

The electricity used by our sites in Spain is provided from renewable

sources, partially generated from solar panels fitted to our stores.

Our upcoming stores will also be equipped with solar panels, further

increasing our capability to self-generate green power.

In France, we have certified guarantees of origin from several solar

photovoltaic, wind, and hydroelectric sources.

In January 2023, we signed a new green contract in the Netherlands

covering all sites, and we are currently working on certified green

energy for our sites in Belgium.

Lighting

Over the last five years, we have continued to optimise our UK

lighting consumption. Following the installation of motion-sensitive

LED lighting throughout communal areas, we are now upgrading the

lighting within our larger units. To date, during FY2022/23, we have

replaced the lighting in over 400 storage units. We will continue this

evolution of LED lighting as customers vacate units.

In France, we have completed the internal LED lighting upgrades

and our focus has moved on to all exterior lighting including the

replacement of high consumption fluorescent tubes with motion-

sensitive LED lighting.

Voltage optimisation

Voltage optimisation is a transformer-based technology which

optimises incoming supply from the national grid to match the

voltage required by equipment at an organisation’s premises.

Optimisingvoltage reduces commercial energy use and costs

aswellas lowering carbon emissions.

Last year, we installed voltage optimisation at our largest location, the

Battersea Park store and Business Centre. The return on investment

for Battersea will be calculated after twelve months with a predicted

decrease in electricity demand and a more stable supply to the critical

infrastructure at the site. We plan to install voltage optimisation at our

Liverpool and Bristol Brislington locations.

We continue to monitor advances in technology and any viable

solutions for the future to reduce our electricity usage.

Notes:

1 REGO certificate for UK received by Sustainable Energy First (“SEF”).

2 Listed maximum capacity of PV cells currently installed at existing sites by contractors.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our environment continued

Sustainable operations continued

Renewable energy continued

Gas

In 2020, we committed to eliminating gas usage by 2030 from our

UK stores; this will be achieved by installing high-output, low-energy

electric heaters, which are more efficient than water radiators reducing

consumption and demand on electricity.

Like-for-like usage (UK)

Last year This year %change

Gas (MWh) 2,300 1,862 (49)%

As at the end of October 2023, we had eliminated gas usage in 32

stores. We will work towards our 2030 target by removing gas in at

least five stores per year according to our net zero plan.

The benefits of removing gas from our stores are wide ranging

and include:

• a reduction in the CO

output attributed to Safestore;

• lower maintenance costs as electric heating systems are

more reliable;

• no requirement for carbon monoxide testing; and

• protection against volatile gas prices.

The gas used in our European stores is for the purposes of heating

reception areas and supplying hot water. Wherever possible, we have

purchased CO

-compensated gas contracts to minimise the impact of

our gas usage whilst we review the option of removing gas.

Minimum Energy Efficiency Standards (“MEES”)

The Energy Efficiency (Private Rented Property) (England and Wales)

Regulations 2015 prohibit landlords from letting a property with an

EPC rating of below E unless an exemption applies. This is relevant to

our UK locations with lettable offices and non self storage space.

The prohibition has applied to new tenancies for residential properties

since 1 April 2020 and has applied to commercial properties from

1 April 2018. Since 1 April 2023, landlords cannot continue to let

properties that fall below an EPC rating of ‘E’. It is currently unlawful

for landlords to grant a new tenancy of or continue to let commercial

property with an EPC rating of ‘F’ or ‘G’. This applies to both new

leases and renewals (unless an exemption applies, and the landlord

has registered that exemption). MEES does not apply to lettings of

sixmonths or less, or to lettings of 99years or more. From April 2027,

the Government is proposing to change the minimum standard to a

‘C’ rating as an interim step followed by a minimum standard of ‘B’

from 1 April 2030. This has been consulted on but not yet confirmed

by legislation.

Safestore identified 38 locations (storage centres which include lettable

offices and/or non self storage space) where we would have the

requirement to have a MEES energy performance survey conducted.

Since 2021/22, these stores have been surveyed by external

independent assessors and the findings are that the majority are

already compliant with the Government’s proposed 2027 requirements

of a ‘C’ rating. Just seven properties were identified as needing

improvements to meet the 2027 standard, and we are confident that

this can be achieved with modest capital investment. The readiness

of the portfolio for the 2027 standard is a consequence of the work

undertaken to date in the form of LED lighting upgrades, window and

insulation enhancements, and the recent drive to install high efficiency

electric heating.

Merchandise

We are proud to sell Safestore branded merchandise across the UK,

Belgium, the Netherlands, and Spain. Our branded boxes are made

from 100% recycled materials and are fully recyclable. We continue to

offer our ‘box for life promise’, ensuring the boxes can be recycled in a

responsible way.

The use of fully recycled paper across this range, including boxes, has

resulted in the equivalent of 590 trees being saved from being felled

this year

We are committed to ensuring our merchandise packaging contains

no single-use or non-biodegradable plastics.

Working with our supplier we endeavour to minimise the carbon

footprint of deliveries with items dispatched from local depots and

distribution centres, including one in Venlo, the Netherlands, for

European distribution to the Netherlands, Belgium, and Spain.

In France, we have updated our range of products to increase

the number of recycled materials, whilst ensuring that items are

fullyrecyclable.

Uniform

Our uniform supplier processes are accredited by the International

their factories. In addition, their processes are compliant with the

Ethical Trading Initiative (“ETI”).

Note:

1 ECOPAC Corporate Social Responsibility Statement for Sept 2022 to August 2023.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Waste management

Operational waste

In line with our objectives to ensure minimal waste to landfill in the UK,

we are pleased to confirm that since May 2022, all of our operational

waste in the UK has been diverted from landfill.

Alongside ensuring zero waste to landfill in the UK, we have

issued small in-store containers to help our sites segregate waste

streams, allowing us to responsibly dispose of all items and increase

ourrecycling.

We actively monitor waste with controls in place to reduce the volume

disposed of at our sites. For example, in France and the UK access to

containers is restricted to prevent third party access. In Belgium, we

are also able to report zero waste to landfill and up to 75% recycling.

We continue to review the scale and impact of operational waste

across the Group, and we are working to minimise the footprint of our

disposal of operational waste.

Like-for-like landfill waste (UK)

Last year This year % change

Waste (tonnes) 37 0 (100%)

As our new supplier can support us in maximising diversion from

landfill, we expect to achieve zero operational waste to landfill from

next year in the UK with options for other territories under review.

Water conservation and management

Water

Our stores consume low volumes of water, and we strive to minimise

our consumption wherever possible through the installation of

efficiency schemes such as flow rate restrictors, aerators, and push

button taps.

Like-for-like usage (UK)

Last year This year % change

Water (cubic meters) 41,570 31,857 (23.4)%

Last year’s usage included volumes associated with a significant leak

of c.6,429m

. On a two-year basis versus 2020/21, usage has reduced

by approximately 11% which better reflects efficiency initiatives and

areturn to more ‘normal’ patterns of water usage post pandemic.

Proactive maintenance and reactive responses also mean that the

likelihood and impact of events such as leaks, and associated waste

are mitigated wherever possible.

Across many of our UK stores, we partner with Refill, a campaign to

promote the use of reusable bottles and containers for drinking water.

As a result, Safestore has helped to contribute to saving an estimated

100 million bottles

from entering our community waste streams.

Note:

1 100 million single-use bottles are estimated to have been saved from entering our waste

stream because of the campaign (https://www.refill.org.uk/about/).

New store development – construction waste and recycling

We carefully monitor our new store construction waste and ensure we

separate waste for recycling where possible.

In the UK, we diverted 100% of our construction waste away from

landfill at our new store build in Morden. Across Europe, we aim to

meet the target of 98% within the next 24 months.

Across all our new store developments in the UK and across Europe,

we are committed to recycling or recovering 100% of all soft and hard

plastics. We continue to work with our suppliers to minimise plastic

packaging arriving onsite and to cut its usage over the coming years.

We aim to remove all such products from our sites by 2030.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Our environment continued

Sustainable construction and sourcing

Safe, sustainable construction

Safestore is committed to ensuring our buildings are constructed

responsibly and their ongoing operation has a minimal impact on

local communities and the environment. This is how we can make

a meaningful contribution towards achieving SDG 12 (Responsible

consumption and production) and SDG 13 (Climate action).

• All our construction teams in the UK and across Europe

follow sustainable construction principles and, wherever

practicable, use materials that have recycled content or are from

sustainable sources.

• Where feasible, concrete from existing buildings on site is demolished,

then crushed on site and re-used in the new development.

• We monitor the waste and energy usage on every site and introduce

efficiencies identified into future building projects.

• We design our stores to provide a safe, secure home for our

customers’ possessions and we build them with consideration

given to our colleagues, our customers, our communities, our

investors, and the environment.

• Over 50% of our new store openings in 2023 were conversions of

existing buildings.

• From the start of 2024, all our new store developments will have

roof-mounted photovoltaic cell systems installed (where structurally/

practically feasible), and electric vehicle charging points will be

provided in the car park for customer and colleague use.

• All new store developments provide bicycle parking for both our

customers and colleagues.

Energy Performance Certificates (“EPC”) of new

buildings and conversions

Energy Performance Certificates in the UK and their equivalent

inEuropean countries set out the energy efficiency of a property

usinga traffic light system of A–G, with A being the most efficient.

Our2023 target was that 80% of new store developments in the

UK and across Europe (excluding France, where certification of

self storage buildings is not conducted) would achieve a minimum

EPC rating of ‘B’. Weare pleased to report all ten relevant new

developments completed and opened in 2023 achieved this rating,

exceeding the set target

∆

. Forfurther details of energy ratings of 2023

openings including the basis of reporting and independent limited

assurance, see the Sustainability section of our website.

Note:

∆ Deloitte LLP have provided independent limited assurance in accordance with the

International Standard for Assurance Engagements 3000 (ISAE 3000) and Assurance

Engagements on Greenhouse Gas Statements (ISAE 3410) issued by the International

Auditing and Assurance Standards Board (“IAASB”) over the selected metrics identified

with a ∆. Deloitte’s full unqualified assurance opinion, which includes details of the

selected metrics assured, can be found in the Sustainability section of the Group website.

Building Research Establishment Environmental

Assessment Methodology (“BREEAM”) in the

UK, Holland and Spain, andHaute Qualité

Environnementale (“HQE”) in France

BREEAM/HQE certification is a local planning requirement for some

of our new stores in the UK and across Europe. The methodology

assesses the impact and opportunity for enhancing the environmental

aspects of design and construction.

The certification includes a review of new store energy, sustainable

building materials, water efficiency, waste recycling and ecology.

The review also includes social aspects of the building life, including

resource management, health, wellbeing, modes of transport and

pollution reduction.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Regardless of whether a site is BREEAM certified, we strive to build

to a minimum standard of BREEAM ‘Very Good’ on all our new store

developments across the UK and Holland.

During 2023, both our Morden and Ellesmere Port stores achieved a

BREEAM ‘Very Good’ rating.

Safestore construction standards

We have a long-standing commitment to providing both a long term

sustainable investment and a pleasant and safe environment for our

customers and colleagues.

Our stores are built or converted to achieve similarly high standards;

however, the configuration of an individual store may vary.

Safestore commitments from 2023/24 onwards are:

Best practice – internal/

external expectation Safestore commitment Applicability

BREEAM/HQE Equivalent to

‘Very Good’

Across all new

build stores

BREEAM/HQE Very Good Where part of

local planning

Sustainable

drainagesystems

Included Across all new

build stores

Solar photovoltaic Roof-mounted

photovoltaic

PV cell systems

on all new

own build

developments

Considerate Constructors

Scheme (UK only)

Score 40 or higher All new stores

Ecology Protect existing and

improve biodiversity

Across all new

build stores

Energy Efficient LED

lightingwithbuilt-in

motionsensors

Across all existing

and new stores

Security Operate safe and

secure facility

Across all existing

and new stores

Energy Performance

Certificate (or equivalent)

Rated B or higher All new stores

Construction material: recycled content

Typically, the construction of one of our stores may include the following:

Building material % of build cost % recycled content

Steel (main frame) 4%–5% Minimum 56%

Concrete 3%–4% 29%–37%

Cladding (walls and roof) 7%–9% 50% but Kingspan targets

improvement using

recycled bottles by 2030

Particle board (FSC

certified) (mezzanine floors)

2% 85%

Brick and block walls 3%–5% 9%–55%

Glazing 2% Glass 25%,

aluminium frames 60%

Hardcore (piling mat) 1% 100%

Considerate Constructors Scheme

(“CCS”) (UK only)

In the UK, construction sites, companies, and suppliers voluntarily

Practice, which is designed to encourage best practice beyond

statutory requirements.

The scheme’s remit is any area of construction activity that may have

a direct or indirect impact on the image of the industry. The main

areas of concern fall into three categories: the public, the workforce,

and the environment.

We register all new UK-built store developments with the CCS setting

a target score of 40 points for both the shell construction and fitting

out of the facility with our construction management partners.

Our new store in Morden scored an average of 42 out of 45 over

the course of its two visits, putting it in the top bracket of scoring.

Theinspector highlighted all areas of the inspections as ‘Excellent’,

which highlights the exceptional effort and commitment that our

construction team makes in raising the standards of our new

storedevelopments.

Construction health and safety

Our health and safety record is excellent. Across all markets, we aim

to exceed minimum standards. Safestore has a robust health and

safety policy, and we have very low incident levels compared with

our peers. During 2023, the number of reportable incidents on our

construction sites was zero.

Consultation process

As part of any local planning process, we consult widely amongst the

community and those most likely to be affected by any development.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

This report was undertaken in accordance with the mandatory

greenhouse gas (“GHG”) emissions reporting requirements outlined

under the Companies Act 2006 (Strategic Report and Directors’ Report)

Regulations 2013 (the “2013 Regulations”) and the Companies

(Directors’ Report) and Limited Liability Partnerships (Energy and

Carbon Report) Regulations 2018 (the “2018 Regulations”). This requires

Safestore Holdings plc (“Safestore”) to produce a Streamlined Energy

and Carbon Report as per Environmental Reporting Guidelines

(March2019). This report contains our GHG disclosure for the

2022/23 reporting period.

We have 132 stores in the UK, 29 stores in France, 11 stores in the

Netherlands, 6 stores in Belgium and 10 stores in Spain. Duringthe

2022/23 reporting period we opened stores in Morden and Wigan

(UK). We also opened 6 stores located across Spain.

This report contains the following environmental data for all our

stores which were operational at the beginning of the financial year:

GHG emissions, electricity consumption, electricity transmission and

distribution, gas consumption, water consumption, waste generation

and business travel.

Methodology

Scope of analysis and data collection

Over 2022/23 we have collected primary data for all of our stores,

including: building size (sq ft), electricity consumption (MWh),

electricity transmission and distribution (“T&D”) (MWh losses), gas

consumption (MWh), water consumption (m

), waste generation

(tonnes by waste disposal method) and business travel (mileage).

Wedo not have any refrigerant leakage to report for any of our stores

in the UK, France, Spain, the Netherlands or Belgium. All primary data

used within this report is from 1 September 2022 to 31 August 2023,

covering the same reporting period as last year. Where electricity, gas

or water consumption data is not available or incomplete, we have

estimated consumption based on a combination of pro-rata methods

as per Environmental reporting guidelines 2019 including:

• pro-rata extrapolation from known reliable data;

• average consumption per sq ft of lettable area of the stores where

we have reliable data; and

• direct comparison using a corresponding period.

KPI selection and calculation

For the purposes of this report stationary energy use (electricity

and gas consumption), water consumption, waste generation, and

business travel have been selected as the most appropriate key

performance indicators (“KPIs”) for the Group. To ensure consistency

in our reporting, particularly where there are differences between the

UK, France, Spain, the Netherlands, and Belgium, we are reporting all

GHG emissions in units of tonnes of CO

We have used the 2023 GHG conversion factors published annually

by the Department for Environment Food & Rural Affairs (“DEFRA”)

and Department for Energy Security & Net Zero formerly known as

Business, Energy, and Industrial Strategy (“BEIS”) with the exception

of the French, Spanish, Dutch and Belgian CO

e conversion factors

associated with electricity consumption and T&D, which are no longer

published by BEIS. These were sourced from the International Energy

Agency (“IEA”) and Carbon Footprint country specific grid electricity

factors both for Location-based and Market-based emission factors.

GHG emissions scope

The Greenhouse Gas Protocol (the “GHG Protocol”) differentiates

between direct and indirect emissions using a classification system

across three different scopes:

• Scope 1 emissions: includes direct emissions from sources which

Safestore owns or controls. This includes direct emissions from fuel

combustion and industrial processes.

• Scope 2 emissions: covers indirect emissions relating solely to the

generation of purchased electricity that is consumed by the owned

or controlled equipment or operations of Safestore.

• Scope 3 emissions: covers other indirect emissions including third

party-provided business travel.

GHG emissions – scopes included in this report

• Scope 1 emissions: we are reporting our gas consumption and

business mileage.

• Scope 2 emissions: we are reporting our electricity consumption.

• Scope 3 emissions: we are reporting our electricity transmission

and distribution, waste generation and water consumption and

business travel via train and plane. and business travel via train

and plane.

For more details on our basis of reporting for energy and carbon

please refer to the Safestore basis of reporting document as published

on the Sustainability section of our website.

Group environmental performance

We recognise the importance of taking a proactive, strategic approach

to environmental management and we aim to ensure that good

environmental practices are applied throughout our stores, and that

those working for or on behalf of Safestore are aware of the need to

act responsibly and sustainably. Our most significant environmental

impacts arise from the construction of new stores and the operational

energy consumption of our existing stores.

Safestore is committed to the protection of the environment, the

prevention of pollution, and continually improving its environmental

performance. We will comply with all relevant legislation and strive

to exceed legal requirements where possible in order to avoid or

minimise any potential environmental impacts.

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only)

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

The following table displays our total Group performance for electricity, gas and water consumption, waste generation (recycling, landfill, Energy

from Waste), and business travel against the previous years.

Breakdown of consumption by source (2018‑2023)

2018/19 2019/20 2020/21 2021/22 2021/22 2022/23

Emissions source Units (Sep–Aug) (Sep–Aug) (Sep–Aug) (Sep–Aug) (restated) (Sep–Aug)

Natural gas MWh 4,136 3,572 3,686 2,742 2,742 2,152

Electricity MWh 15,372 14,435 13,506 14,755 14,755 14,708

Purchased water m

55,113 43,372 47,503 53,024 53,024 52,774

Recycling tonnes 586 1,448 1,487 1,517 277 * 233

Landfill tonnes 44 58 57 43 37* 0

Energy from Waste tonnes 1,320 1,124 831 696 696 599

Business travel (Scope 1)* miles 396,088 346,076 421,829 469,324 608,381 ** 740,770

Business travel (Scope 3)**

rail,air, employee vehicle miles Not reported Not reported Not reported Not reported 423,570 *** 463,757

Note:

* 2022/23 and 2021/22 (restated) excludes landfill and recycling waste tonnage from Europe – UK operational waste only.

** 2022/23 and 2021/22 (restated) includes mileage in company-owned or operated vehicles throughout the Group. 2020/21 and earlier years includes mileage in company-owned or

operated vehicles in the UK only.

*** Includes business mileage in employee-owned and private hire vehicles in the UK, and via rail and air transport across the Group.

Breakdown of associated GHG emissions by source (2022/23)

0.5% 0.5% 7.6% 10.4% 81.0%

Purchased water Waste Business travel Natural gas Electricity

Group environmental performance – analysis

We have analysed the year-on-year change in our performance and provided commentary on our Group environmental performance, as below:

Gas performance

We are continually seeking opportunities to reduce energy consumption to the lowest practicable levels appropriate with the operational needs of the business

and to satisfy the needs of our customers. We are phasing out the use of gas in our stores wherever possible and have removed it from five additional sites

during this period, but some of our stores still consume low volumes of gas for heating in reception and office locations. At the design and construction stage

we seek opportunities to design efficient low consuming working environments and are ensuring that all new stores are built and rely just on electricity.

Gas performance

Year ended 31 August 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 % change

Gas use MWh 4,358.3 4,136.2 3,572.0 3,685.5 2,742.0 2,152.0 (21.5%)

Scope 1 emissions tCO

e 801.8 760.4 656.8 675.0 500.5 393.7 (21.3%)

Total gas consumption across all our stores was 2,152 MWh, which is a 21.5% decrease compared with the previous financial year. This

decrease is largely a result of the removal of gas appliance from a further five stores and the full year benefit of stores electrified in FY2022.

Electricity performance

We are continuing to identify opportunities to reduce electricity consumption across our stores.

Recognising that our electricity consumption is predominantly derived from our lighting requirements we have continued a portfolio wide LED

lighting upgrade programme, across all UK stores.

Electricity performance

Year ended 31 August 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 % change

Electricity use MWh 17,416.0 15,373.0 14,435.0 13,506.0 14,755.0 14,708.0 (0.3%)

Scope 2 emissions (LB) tCO

e 4,376.7 3,527.0 3,022.0 2,555.0 2,620.0 2,803.0 7.0%

Scope 2 emissions (MB) tCO

e Not reported Not reported 171.0 153.0 178.0 47.0 * (73.8%)

Scope 3 emissions tCO

e 371.4 299.0 261.0 228.0 237.0 260.0 9.8%

Note:

(LB) – Location Based (MB) – Market Based

Total electricity consumption across all Group stores was 14,708 MWh which is a 0.3% decrease in consumption compared to the previous year.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only) continued

Electricity performance contined

This saving demonstrates the continued positive impact that lighting installation has had on reducing our consumption. In addition, this

demonstrates that we have been able to decrease our overall electricity use whilst adding new stores and converting stores from gas space and

water heating appliances to high efficiency electric alternatives. Scope 2 location-based emissions increased by 7.0% compared to the previous

year due to the impact of a higher conversion factor for UK electricity generation and the full year inclusion of the Netherlands store portfolio

whose electricity consumption is converted at high conversion factors relative to other Group markets. Scope 2 market-based emissions

reduced by 73.8% compared to the previous year because our France stores switched to a 100% certified renewable supply agreement.

Water performance

Our stores consume very low volumes of water, and we strive to minimise our consumption of water wherever possible through the installation of

efficiency schemes.

Water performance

Year ended 31 August 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 % change

Water use m

61,655 55,113 43,372 47,503 53,024 52,774 (0.5%)

Scope 3 emissions tCO

e 64.9 58.0 45.6 20.0 22.0 19.95 (10.6%)

Between September 2022 and August 2023 the total water consumption across all our stores was 52,774 m

, which is a decrease of 0.5%.

compared to the previous financial year.

Waste performance

We produce a relatively small amount of operational waste, and we are seeking opportunities to further reduce or avoid the use of natural

resources and minimise waste production by promoting recycling where possible. We continue to improve our waste segregation at our stores

and are actively enhancing our recycling facilities to divert waste from landfill.

This year we report the waste generated from operations in the UK only. Waste from the European markets is excluded due to the difficulty of

separating operational waste from the majority of the waste volume which is customer generated. The prior year has been restated on this same

UK-only basis. Data for 2020/21 and earlier years contains a mix of both operational and customer waste in the UK and France, and is therefore

not comparable with the past two years.

Waste performance

Year ended 31 August 2017/18 2018/19 2019/20 2020/21 2021/22

2021/22

(restated) 2022/23 % change

Waste – recycling tonnes 1,211 586 1,448 1,488 1,517 277* 233 (15.9%)

Waste – Energy

fromWaste tonnes 730 1,321 1,124 831 696 696 599 (14.0%)

Waste – landfill tonnes 57 44.2 57.7 56.5 46.0 37.0 * 0 (100%)

Scope 3 emissions tCO

e 47.2 45.1 81.2 90.0 68.0 38.0* 17.7 (53.4%)

Note:

* 2022/23 and 2021/22 (restated) excludes recycling and landfill waste tonnage from Europe – UK operational waste only.

In the last twelve months to August 2022, a total of 832 tonnes of waste has been generated in the UK (Recycling, Energy from Waste and

Landfill) which is a decrease of 16% compared with the previous year. We continue to work on a Waste Efficiency Programme across our

portfolio to ensure that we have the correct facilities on site to enable our stores to minimise landfill waste and ensure that waste will be recycled

where possible.

Business travel performance

We report on our business travel, which historically was exclusively mileage in company vehicles in the UK (Scope 1). This year we also report business

mileage in company vehicles in France (Scope 1) and mileage in employee-owned vehicles in the UK (Scope 3) as well as travel by air and rail in all

countries (Scope 3). The figures for 2021/22 have been restated to ensure comparability.

Business travel performance

Year ended 31 August 2018/19 2019/20 2020/21 2021/22

2021/22

(restated) 2022/23 % change

Business travel* miles 396,088 346,076 421,829 469,324 608,381* 740,770 21.8%

Business travel (Scope 1) MWh 440.7 395.4 484.3 518.0 658.0* 721.0 9.5%

Business travel

(Scope3)** MWh N/A N/A N/A N/A 308.0** 311 0.9%

Scope 1 emissions* tCO

e 108.8 96.4 117.7 124.0 159.0* 170.0 6.8%

Business travel (PHEV/

EV) Scope 2 emissions tCO

e Not reported Not reported Not reported Not reported Not reported 6

Business travel

Scope3**emissions tCO

e Not reported Not reported Not reported Not reported 107.9** 122 13.2%

Notes:

* For 2022/23 and 2021/22 (restated) this includes mileage in company-owned or operated vehicles throughout the Group and mileage in employee-owned vehicles in the UK. For 2020/21

this includes mileage in company-owned or operated vehicles in the UK only.

** Scope 3 Business travel emissions includes emissions associated with business mileage in employee-owned and private hire vehicle emissions in the UK, and emissions associated with

rail and air travel across the Group.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

In our business we travelled 740,770 miles in vehicles in the twelve months to 31 August 2023, resulting in a 21.8% increase compared with the

previous year. This reflects increased a return to pre-pandemic levels of business activity as well as the travel associated with a growing portfolio

of stores in operation or development. We also saw an increase in emissions associated with air and rail travel due to travel associated with the

expanded Group portfolio in Spain, Belgium, and the Netherlands versus last year.

Group GHG performance (mandatory GHG reporting)

We have used the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance

and Greenhouse Gas

Protocol

methodology for compiling this GHG data and, for UK energy consumption and emissions, included the following material GHGs: CO

O and CH

. In accordance with the BEIS reporting guidelines and data

conversion factors for Greenhouse Gas emissions, the equivalent

reports on our France, Spain, Netherlands, and Belgium properties used the CO

e factors provided by Carbon footprint

emission factors

September 2023 edition for Grid Electricity both for Location based and Residual Fuel mix for Market based and Transportation and Distribution

losses (T&D Losses). The business travel miles reported includes company owned or operated vehicles throughout the Group and mileage in

employee-owned vehicles in the UK. We used the following GHG emission conversion factors:

Notes:

1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850130/Env-reporting-guidance_inc_SECR_31March.pdf

2 https://ghgprotocol.org/

3 https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023

4 Source: Carbon Footprint September 2023 Emission Factors (https://www.carbonfootprint.com/international_electricity_factors.html)

UK government GHG emission conversion factors for company reporting

Standard set for 2023 (this set covers the greatest proportion of the current GHG reporting year)

Source: BEIS 2023/Carbon Footprint Sep 23

Scope Emissions source Unit Conversion factors

1 Natural gas (gross CV) kWh 0.18293

1 Business travel (petrol) miles 0.26379

1 Business travel (diesel) miles 0.27332

1 Business travel (plug-in hybrid) miles 0.10601

2 UK electricity grid supply kWh 0.20707

2 France electricity grid supply (LB) kWh 0.05357

2 Spain electricity grid supply (LB) kWh 0.16372

2 Belgium electricity grid supply (LB) kWh 0.12177

2 The Netherlands electricity grid supply (LB) kWh 0.29634

2 UK electricity grid supply (MB) kWh 0.00000

2 France electricity grid supply (MB) kWh 0.05852

2 Spain electricity grid supply (MB) kWh 0.00000

2 Belgium electricity grid supply (MB) kWh 0.14427

2 The Netherlands electricity grid supply (MB) kWh 0.43897

2 Business travel (plug-in hybrid) miles 0.04152

2 Business travel (fully electric vehicle) miles 0.08116

3 UK electricity transmission and distribution kWh 0.01792

3 France electricity transmission and distribution kWh 0.00850

3 Spain electricity transmission and distribution kWh 0.01337

3 Belgium electricity transmission and distribution kWh 0.01705

3 The Netherlands electricity transmission and distribution kWh 0.04455

3 Water supply m

0.17700

3 Water treatment m

0.20100

3 Commercial waste – recycling tonnes 21.28081

3 Commercial waste – Energy from Waste tonnes 21.28081

3 Commercial waste – landfill tonnes 520.3347

3 Business travel plane (domestic flights) Pass-km 0.272577

3 Business travel train (national rail) Pass-km 0.035463

3 Business travel employee/hire (average diesel) miles 0.273316

Note:

The conversion factors for electricity (both location based and market based) emission factors were sourced from Carbon Footprint country specific electricity grid GHG Emission Factors,

residual mixes and production mix conversion factor. (Note: Defra/BEIS no longer provides overseas electricity generation conversion factors).

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only) continued

Streamlined Energy and Carbon Report (“SECR”) summary

In accordance with the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 (“the 2013 Regulations”) and the

Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (”the 2018 Regulations”)

wehavereported our Streamlined Energy and Carbon Report disclosure for the previous year 2021/22 and the current year 2022/23.

UK – GHG emissions (tCO

e) Units 2021/22

2021/22

(restated) 2022/23

Scope 1 tonnes CO

e (UK) 557 557 473

Scope 2 (LB) tonnes CO

e (UK) 2,415 2,415 2,504

Scope 2 (MB) tonnes CO

e (UK) 0 0 0

Scope 3 tonnes CO

e (UK) 279.8 384 * 371

Total GHG CO

e (LB) total tonnes CO

e (UK) 3,252 3,357 3,348

Total GHG CO

e (MB) total tonnes CO

e (UK) 837 941 844

GHG CO

e intensity (LB) tonnes CO

e/ floor space (UK - thousand sq ft) 0.38 0.39 0.39

GHG CO

e intensity (LB) tonnes CO

e / floor space (UK - thousand sq m) 4.08 4.22 4.15

GHG CO

e intensity (MB) tonnes CO

e/ floor space (UK - thousand sq ft) 0.10 0.11 0.10

GHG CO

e intensity (MB) tonnes CO

e / floor space (UK - thousand sq m) 1.05 1.18 1.05

Note:

* 2022/23 and 2021/22 Scope 3 figures includes emissions from business travel via public transport (rail, air) and emissions associated with business mileage in employee-owned vehicles.

Europe – GHG emissions (tCO

e) Units 2020/21

2021/22

(restated) * 2022/23

Scope 1 tonnes CO

e (Europe) 68 103* 91

Scope 2 (LB) tonnes CO

e (Europe) 205 205 299

Scope 2 (MB) tonnes CO

e (Europe) 178 178 47

Scope 3 tonnes CO

e (Europe) 48 21** 46

Total GHG CO

e (LB) total tonnes CO

e (Europe) 320 328 439

Total GHG CO

e (MB) total tonnes CO

e (Europe) 293 301 187

GHG CO

e intensity (LB) tonnes CO

e/floor space (Europe - thousand sq ft) 0.10 0.10 0.13

GHG CO

e intensity (LB) tonnes CO

e/floor space (Europe - thousand sq m) 1.08 1.08 1.36

GHG CO

e intensity (MB) tonnes CO

e/floor space (Europe - thousand sq ft) 0.09 0.11 0.05

GHG CO

e intensity (MB) tonnes CO

e/floor space (Europe - thousand sq m) 0.99 0.99 0.58

Notes:

* 2022/23 and 2021/22 include emissions associated with business mileage in company-owned or operated vehicles in France within Scope 1.

** 2022/23 and 2021/22 Scope 3 figures excludes emissions associated with waste in European countries and includes emissions from business travel via public transport (rail, air).

UK – underlying energy use (MWh) Units 2021/22 2022/23

Scope 1 MWh (UK) 2,918 2,470

Scope 2 MWh (UK) 12,490 12,093

Total Scope 1 and 2 MWh (UK) 15,408 14,563

MWh intensity MWh/floor space (UK – thousand sq ft) 1.80 1.68

MWh intensity MWh/floor space (UK – thousand sq m) 19.34 18.05

Europe – underlying energy use (MWh) Units 2020/21

2021/22

(restated) 2022/23

Scope 1 MWh (Europe) 341 482 * 404

Scope 2 MWh (Europe) 2,266 2,266 2,615

Total Scope 1 and 2 MWh (Europe) 2,606 2,747 3,019

MWh intensity MWh/floor space (Europe - thousand sq ft) 0.82 0.84 0.87

MWh intensity MWh/floor space (Europe - thousand sq m) 8.80 9.06 9.33

Note:

* Scope 1 restated to include energy associated with business mileage in company-owned or operated vehicles for France.

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

GHG emissions Units 2018/19 2019/20 2020/21 2021/22

2021/22

(restated) 2022/23 %change

Scope 1 tonnes CO

e (UK, Europe) 869 753 793 625 660* 564 (14.5%)

Scope 2 (LB) tonnes CO

e (UK, Europe) 3,527 3,022 2,555 2,620 2,620 2,803 7.0%

Scope 2 (MB) tonnes CO

e (UK, Europe) n/a 171 153 178 178 47 (73.8%)

Scope 3 tonnes CO

e (UK, Europe) 402 396 324 327 405** 420 3.7%

Total GHG CO

e (LB) total tonnes CO

e (UK,

Europe)

4,798 4,171 3,671 3,572 3,685 3,787 2.8%

Total GHG CO

e (MB) total tonnes CO

e (UK,

Europe)

n/a 1,320 1,269 1,130 1,243 1,030 (17.1%)

GHG CO

e intensity tonnes CO

e/floor space

(thousand sq ft)

0.50 0.40 0.35 0.30 0.31 0.31 (0.1%)

GHG CO

e intensity tonnes CO

e/floor space

(thousand sq m)

6.60 4.90 3.73 3.27 3.35 3.35 (0.1%)

GHG CO

e intensity

(MB)

tonnes CO

e/ floor space

(thousand sq ft)

0.12 0.10 0.11 0.09 (19.4%)

GHG CO

e intensity

(MB)

tonnes CO

e/ floor space

(thousand sq m)

1.29 1.03 1.13 0.91

∆

(19.4%)

Energy consumed Units 2021/22

2021/22

(restated) 2022/23 % change

Scope 1 MWh (UK, Europe) 3,260 3,400 * 2,874 (15.5%)

Scope 2 MWh (UK, Europe) 14,755 14,755 14,708 (0.3%)

Total Scope 1 and 2 total MWh (UK, Europe) 18,015 18,156 17,582 (3.2%)

MWh intensity MWh/floor space (thousand sq ft) 1.53 1.53 1.44 (5.8%)

MWh intensity MWh/floor space (thousand sq m) 16.48 16.52 15.55 (5.8%)

Notes:

* Scope 1 restated to include business mileage in company-owned or operated vehicles in France.

** Scope 3 business travel via rail and air included for all countries under overall Scope 3 emissions; business mileage in employee-owned vehicles included for the UK. Emission associated

with waste from European countries excluded.

∆ Deloitte LLP have provided independent limited assurance in accordance with the International Standard for Assurance Engagements 3000 (ISAE 3000) and Assurance Engagements

on Greenhouse Gas Statements (ISAE 3410) issued by the International Auditing and Assurance Standards Board (“IAASB”) over the selected metrics identified with a ∆. Deloitte’s full

unqualified assurance opinion, which includes details of the selected metrics assured, can be found in the Sustainability section of the Group website.

Energy efficiency narrative

Through a range of energy efficiency initiatives and a switch to 100% renewable electricity we have reduced our absolute energy use,

withabsolute market-based carbon emissions 17% lower than the previous year despite growth in Group floor space.

In our UK wholly owned stores, 100% of our electricity is from renewable energy sources. We have seen a further 4.4% reduction in usage in UK

like-for-like electricity consumption despite replacing some gas heating appliances with electric alternatives in some stores. This is due in large

part to the continued rollout of efficient LED lighting with built in motion sensors across all existing and new stores including customer units as

they become vacant. We also have the added provision of self-generation, reducing our usage at some sites in addition to the benefits of voltage

optimisation at our largest location, Battersea Park.

This year we have also continued our programme of replacement of gas boilers across our estate with more efficient alternative heating sources.

During this financial year we replaced gas appliances in five locations with electric heat pump alternatives, further upgrades are scheduled over

the coming years.

Procurement of renewable energy

We are actively pursuing renewable energy within our purchasing decisions. 100% of our UK electricity consumption in our wholly owned stores

is purchased from Ofgem accredited renewable sources with associated renewable energy certificates. The energy sources that we use include

onshore wind farms and solar fields. Our objective here is to help meet our sustainability goals and to reduce our market-based GHG emissions.

Group GHG performance (mandatory GHG reporting) analysis

Total location-based GHG emissions for Scope 1, Scope 2, and Scope 3 for the twelve-month period to 31 August 2023 have increased by

2.8% to 3,787 tonnes CO

e. Whilst underlying energy use has declined compared to the prior year, the impact of a higher conversion factor for

UK electricity generation and the full year inclusion of Netherlands store portfolio whose electricity is converted at a relatively high conversion

factor has had the effect of increasing location-based emissions overall. However, the Group is primarily focused on reducing its market-based

emissions on its journey to operational net zero by 2035 and has continued to seek certified renewable electricity supply arrangements to this

end. Market-based emissions have reduced by 17% (or by 213 tonnes CO

e) compared to the previous year to 1,023 tonnes of CO

e despite

growth of the Group portfolio. This is due to a combination of initiatives delivered during the year including removal of gas appliances in a number

of UK stores, electricity efficiency via lighting improvements and voltage optimisation, and switching to supply of 100% certified renewable

electricity in France.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only) continued

Group GHG performance (mandatory GHG reporting) analysis continued

Breakdown of emissions scopes 2022/23

Our overall floor space has increased from 11,763,815 sq ft (2021/22) to 12,167,970 sq ft (2022/23).

Our market-based GHG emissions CO

e intensity has decreased from 1.13 tonnes CO

e per 1,000 sq m in 2021/22 (restated) to 0.91 tonnes

e per 1,000 sq m in 2022/23, which is a decrease of 19.4%.

Location-Based

15% 74% 11%

Scope 1 Scope 2 Scope 3

Market-Based

55% 5% 41%

Scope 1 Scope 2 Scope 3

Safestore Holdings plc | Annual report and financial statements 2023

Sustainability continued

Our commitment to sustainability continued

Our GHG emissions and intensity since 2015/2016

Market‑based emissions intensity (Tonnes CO

e/1,000 m

)

Sustainable Energy First (formerly “BiU”) has collated the data set covering Scope 1–3 emissions for the period 1 September 2022 to 31 August 2023.

Sustainable Energy First has direct visibility of the raw data used to calculate ~94% of the total global Scope 1–3 emissions and as such can

provide confirmation on the completeness and accuracy of these emissions as well as around the emissions factors applied, their relevance and

source; reference to these has been provided within this report. Where estimations have been made, these have been noted within this report

and efforts continue to be made to improve the quality of the data used within our annual energy and emissions report.

10,000

8,000

6,000

4,000

2,000

1.20

1.00

0.80

0.60

0.40

0.20

0.0

Group total floor area (M sq. m)

Total operational CO

e (Tonnes)

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

(restated)

2022/23

Location-based (Tonnes CO

e/1,000m

) Market-based (Tonnes CO

e/1,000m

) Group floor area (M sq. m)

7,911

7,86 4

5,836

4,798

4,171

3,671 3,685

3,787

1,320

1,269

1,243

1,030

1.36 1.29 1.13 0.91

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Dear shareholder

On behalf of the Board, I am pleased to introduce the Company’s

corporate governance report for the year ended 31 October 2023.

TheBoard is committed to high standards of corporate governance

and decisions are based on what the Board believes is likely to be for

the benefit of all stakeholders by promoting and maintaining the long

term success of the Company and its reputation. This review and the

reports of the Nomination, Audit and Remuneration Committees that

follow summarise the key matters considered by the Board during

theyear and how it discharges its responsibilities.

Company purpose, values, strategy and culture

Safestore’s purpose is to add stakeholder value by developing

profitable and sustainable spaces that allow individuals, businesses,

and local communities to thrive. This is achieved through the delivery

of our strategy, supported by an effective framework of governance

and risk management and by our culture and values.

Safestore has an open and supportive culture. Our colleague and

stakeholder engagement has been fundamental to our success and

isintegral to and aligned with our values and corporate culture.

Ourcolleague and stakeholder engagement arrangements are set

outon pages 32 to 34 and in the Sustainability report. Our successful

performance is only possible due to the hard work and commitment

ofour colleagues, who continue to be engaged with our strategy,

andaligned with our values and our culture. Our high level of

colleague engagement was evidenced by Safestore being awarded

the prestigious Investors in People (“IIP”) Platinum accreditation and

making the final top ten shortlist for the Platinum Employer of the Year

(250+) category in the IIP Awards 2021. This award is explained more

fully on page 48.

The Board is satisfied that our culture is aligned with the Company’s

purpose, values and strategy. Our values are summarised on page 53

and our strategy is explained on pages 8 to 19.

Board priorities

As you would expect in 2023, the Board has focused on delivering its

strategic priorities, investing in its store portfolio and its people, and

refinancing its Revolving Credit Facilities. The Board has continued to

enhance its oversight of environmental risks, employee welfare and

governance. The Board is committed to implementing the relevant

recommendations of the Task Force on Climate-related Financial

Disclosures (“TCFD”) and reports against its framework. We have

made climate-related financial disclosures consistent with the TCFD

recommendations and further details are set out on pages 43 and

59to 64.

A top priority in 2024 will be the search for a new Chief Financial

Officer and Executive Director, following the announcement in

September 2023 that Andy Jones will be retiring as CFO. The search

and selection process to appoint Andy’s successor remains ongoing.

Board membership

The Company announced in April 2023 that Ian Krieger had

advisedthe Board that he would not be seeking re-election as a

Non-Executive Director at the Company’s Annual General Meeting, to

be held in March 2024. Ian will therefore be retiring as a Non-Executive

Director, as the Chair of the Audit Committee and as the Senior

Independent Director following the conclusion of the Company’s 2024

Annual General Meeting.

Following ten years as a Non-Executive Director and over nine and

eight years as Chair of the Audit Committee and Senior Independent

Director respectively, Ian has made an exceptional contribution to the

Board and its Committees. On behalf of the Board, I would like to thank

Ian for his invaluable guidance, and we wish him well for thefuture.

In April 2023, we were also pleased to announce that Jane Bentall

would become Chair of the Audit Committee upon Ian’s retirement.

Atthe time of drafting, the Board had not met the target set out

inListing Rule 9.8.6(9)(a)(ii). With Ian set to step down as Senior

Independent Director at the 2024 Annual General Meeting, we are

inthe final stages of selecting his replacement for the role and except

to announce our new Senior Independent Director prior to the Annual

General Meeting on 13 March 2024. I can confirm this will be one

ofour existing female non-executive directors and we will therefore

meet all of the targets set out in Listing Rule 9.8.6(9)(a).

Following an extensive search process conducted by search firm

Teneo, we were pleased to welcome Avis Darzins to the Board on

1September 2023 as a Non-Executive Director and as a member

ofthe Audit and Remuneration Committees. Avis brings a wealth

ofexperience both from an in-house operational career and as a

consultant, supporting large organisations. Her expertise will be

highlyvaluable to Safestore as the business continues to expand.

We continue to appoint only the most appropriate candidates to the

Board and our recruitment process in selecting and appointing Board

members is explained in more detail in the Nomination Committee

report on page 87.

“The Board is committed to high standards

of corporate governance and decisions are

based on what the Board believes is likely

to be for the benefit of all stakeholders by

promoting and maintaining the long term

success of the Company and its reputation.”

Safestore Holdings plc | Annual report and financial statements 2023

Introduction to corporate governance

Equality, Diversity and Inclusion

I am delighted that the Board has met its ethnic and gender diversity

targets; at the date of this report, the Board comprises 44% women

(FY2022: 38%). However, the pace of change for diversity in the senior

leadership team is slower than we would like. The Board is keen to

encourage more women at Safestore, at all levels, and our aim is

toattract 40% female applicants for every role. In addition, we are

working hard on attracting, retaining, and supporting women in our

workforce and we know that there is still an under-representation

ofblack, Asian and ethnic minority colleagues in higher paid roles.

In2023 the Board adopted a Board Diversity Policy, covering diversity

targets and the board’s approach to inclusivity. The Board Diversity

Policy is available on the Company’s website. For more information on

gender and ethnic diversity across the Group, details of the Company’s

equality, diversity and inclusion policy and the gender and ethnicity

balance of senior managers and direct reports, please see page 50.

Board evaluation

Each year, the Board undertakes a formal evaluation of its

effectiveness. During 2023, an internally facilitated evaluation of

theBoard and its Committees was carried out. The evaluation was

conducted by the Chairman, and facilitated by the Company Secretary

using a detailed questionnaire alongside opportunities for additional

comments, which was completed by each Board member. The results

arising from the evaluation were discussed by the whole Board.

Notwithstanding that the report considered that the Board’s

performance was strong, a number of actions were identified to

further enhance the Board’s effectiveness, and further details of

thesemay be found on pages 83 and 84.

2023 Directors’ Remuneration Policy

Following an extensive shareholder consultation programme

withmost of our major shareholders and investor bodies, the Board

was delighted to receive 97.4% shareholder support for Safestore’s

2023 Directors’ Remuneration Policy (the “Policy”), when approved

byshareholders at the Company’s General Meeting held in July 2023.

The new Policy has been designed to operate for three years, and

issummarised on pages 99 to 102. I would like to thank our

majorshareholders on behalf of the Board for their engagement,

constructive feedback andsupport.

Compliance statement

The Company is reporting against the UK Corporate Governance

Code 2018 (the “Code”). Throughout the year ended 31 October 2023,

and up to the date of this report, the Company has been in

compliance with the principles and provisions of the Code. The Code

is available on the Financial Reporting Council (“FRC”) website at:

www.frc.org.uk.

2024 Annual General Meeting (“AGM”)

The AGM of the Company will take place at 12 noon on

Wednesday13 March 2024 at Brittanic House, Stirling Way,

Borehamwood, Hertfordshire WD6 2BT. All Directors will attend

theAGM, which willprovide an opportunity for shareholders to hear

more about our performance during the year and to ask questions of

the Board. We will again invite shareholders to submit their written

questions on the business of the 2024 AGM. You will find details of

how to submit written questions in advance of the meeting on our

investor website at https://www.safestore.co.uk/corporate and in

theNotice of the 2024 AGM.

David Hearn

Non-Executive Chairman

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Commenced role

November 2021 (appointed as Chairof

the Remuneration Committee in

June 2022)

Skills and experience

Laure Duhot brings over 30 years of

senior executive level experience in

the investment banking and property

sectors, specialising in alternative

realestate assets, and has been a

non-executive director at a number

offunds and property companies.

Laure started her career in the

investment banking sector and has

developed a focus on the property

sector. She has held senior roles at

Lehman Brothers, Macquarie Capital

Partners, Sunrise Senior Living Inc.,

Pradera Limited and Grainger plc,

andlatterly was head of investment

and capital markets – Europe

atLendlease.

External appointments

Laure is currently a non-executive

director of Primary Health Properties

plc and NB Global Monthly Income

Fund Limited, a premium-listed

Guernsey registered fund. Laure is

also a director of Lifestory Group

Limited and acts as the independent

member on CBRE-IM’s UK

investmentcommittee.

Commenced role

1 January 2020 (appointed to the

Board and as a member of the

Remuneration Committee on

1December 2019 and appointed

asNomination Committee Chair on

1January 2020)

Skills and experience

David Hearn is an experienced chair

and brings a wealth of international

board and senior executive experience

in public companies, having previously

been CEO of leading consumer goods

businesses Goodman Fielder in

Australasia, United Biscuits in Europe

and Asia, Cordiant plc in the US and

the UK and also international private

equity and advisory firm Committed

Capital. Until recently David was chair

of The a2 Milk Company, a company

listed on the New Zealand Stock

Exchange and dual listed on the

Australian Stock Exchange.

External appointments

David is chair of Tate & Lyle PLC anda

director of Lovat Partners, Committed

Capital and the architectural firm

Robin Partington & Partners.

David Hearn

Non-Executive Chairman

Commenced role

September 2013

Skills and experience

Frederic Vecchioli founded our French

business in 1998 and has overseen its

growth to 29 stores in Paris operating

under the ‘Une Pièce en Plus’ brand.

He joined the Group as President and

Head of French Operations following

the Mentmore acquisition in 2004.

Frederic was appointed to the Board

in March 2011 and became Chief

Executive Officer of the Group in

September 2013.

External appointments

None.

Frederic Vecchioli

Chief Executive Officer

Commenced role

May 2013

Skills and experience

Andy Jones joined the Group in May

2013 as Chief Financial Officer. Andy’s

previous role was director of group

finance at Worldpay Limited, prior to

which he held the positions of director

of finance and investor relations at TUI

Travel plc, and chief financial officer at

Virgin Entertainment Group in the US.

Andy began his career at Ernst &

Young, where he qualified as a

chartered accountant in 1992.

Andyisa graduate of the University

ofBirmingham.

External appointments

None.

Andy Jones

Chief Financial Officer

Commenced role

March 2015 as Senior Independent

Director. Ian Krieger will retire as a

Non-Executive Director of the Company

following the conclusion of the Company’s

2024 Annual General Meeting.

Skills and experience

Ian Krieger joined the Board in

October 2013 as a Non-Executive

Director and was appointed Chair

ofthe Audit Committee in April 2014

andSenior Independent Director

inMarch 2015. Ian is a chartered

accountant and was a senior partner

and vice-chair at Deloitte until his

retirement in 2012. Ian brings a wealth

of recent financial experience to the

Board as well as his experience as

senior independent director and audit

committee chair for two other UK-listed

companies in the property sector.

External appointments

Ian is a non-executive director of

Capital & Regional plc and Primary

Health Properties plc.

Ian Krieger

Senior Independent Director

Laure Duhot

Non-Executive Director

Safestore Holdings plc | Annual report and financial statements 2023

Board of Directors

as at 16 January 2024

Committee membership

Audit Committee Chair of Committee

Nomination Committee

Remuneration Committee

Commenced role

November 2021

Skills and experience

Delphine Mousseau brings over

25years of senior executive level

andconsultancy experience in

e-commerce and customer

engagement across Europe,

specialising in retail.

Delphine began her career as a

project manager at the Boston

Consulting Group before moving on to

join Plantes-et-Jardins.com where she

became head of operations. Between

2007 and 2011, she was director of

e-commerce for Europe at Tommy

Hilfiger and then became an

independent consultant, primarily for

the former Primondo Specialty Group

which was Carlyle owned.

LatterlyDelphine was a VP markets at

Zalando and a non-executive director

of Fnac-Darty SA.

External appointments

Based in Germany, Delphine is

currently non-executive director at

Aramis Group SAS, listed on Euronext

Paris, and a member of the Holland

&Barrett UK board and chair of the

Refurbed board in Austria.

Delphine Mousseau

Non-Executive Director

Commenced role

May 2022

Skills and experience

Jane Bentall has extensive experience

and understanding of operating

multi-site, consumer-led businesses.

Most recently, Jane was managing

director of Haven, the UK holiday

parks chain and largest business

division of Bourne Leisure. Prior

tobecoming managing director

ofHaven, she was the group chief

financial officer for twelve years

andpreviously spent six years as

operations director. In her career she

has also held senior financial roles

atthe Rank Group.

External appointments

Jane is a director of Oakman Inns plc,

and a non-executive director of

TheRoyal Marsden NHS Foundation

Trust. Jane is also a director of

Resident Hotels Limited, a

consultantfor Blackstone, and

amember of Pilotlight.

Jane is an ACA qualified accountant

and a fellow of the Institute of

Chartered Accountants.

Jane Bentall

Non-Executive Director

Commenced role

September 2023

Skills and experience

Avis Darzins has over 20 years of

senior executive level and management

consulting experience in the retail and

entertainment and media sectors,

specialising in customer experience

strategy and business transformation.

Avis began her career in the retail

sector covering domestic and

international B2B and B2C sales and

buying and category management

before specialising in large-scale

change programmes. Before joining

Sky PLC in 2009 as business

transformation director, Avis spent

eight years at Accenture, having been

promoted to partner in 2004. Avis was

a non-executive director ofMoss Bros

Group plc, until its sale in 2020.

Morerecently Avis has established her

own business consulting company.

External appointments

Avis is a non-executive director for

Marshalls plc and Grafton Group plc,

and the senior independent

trustee/director for the children’s

charity Barnardo’s.

Avis Darzins

Non-Executive Director

Commenced role

June 2020

Skills and experience

During his extensive and varied

career, Gert van de Weerdhof has

held a number of senior executive

positions including as CEO of

GrandVision Europe BV before

progressing to become chief retail

officer for Esprit Holdings Ltd and

latterly as CEO of RFS Holland

Holdings BV and its subsidiary

Wehkamp BV. Gert has been a

non-executive director, for Wereldhave

NV, and Accell Group NV, and chair of

CTAC NV. Gert brings a wealth of

international expertise to the Board

having held roles across multi-site

retail, e-commerce, consumer goods

and real estate.

External appointments

Gert is currently CEO of Mercy Ships

and non-executive director of Sligro

Food Group NV, a company listed

onEuronext Amsterdam.

Gert van de Weerdhof

Non-Executive Director

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Leadership

The role of the Board

The Board is collectively responsible for promoting the long-term

sustainable success of the Company and its reputation, for the benefit

of its stakeholders.

The Board is responsible for setting:

• the Company’s purpose, its values and strategy, and satisfying itself

that these are aligned with the overall culture of the Group;

• appropriate performance targets for management and monitoring

the business’ performance against those targets; and

• the Group’s risk appetite and satisfying itself that financial controls

and risk management systems are robust, while ensuring the Group

is adequately resourced.

The Board also ensures that there is appropriate dialogue with

shareholders on strategy and remuneration.

The Board is collectively responsible for promoting the long term

success of the Group for the benefit of the Company’s stakeholders.

Itagrees the overall strategy, direction and culture of the Group and

has the powers and duties set out in the Companies Act 2006

(the“Act”) and the Company’s Articles of Association.

The Board delegates certain matters to the Board Committees

anddelegates the day-to-day operation of the business to the

Executive Directors.

The Board’s activities during the year and how it discharges its

responsibilities can be found on page 84 and 85. The Group’s

established strategy has evolved to embed sustainability within its

purpose. Ourstrategy is underpinned by our values, as defined on

pages 4 and53, our behaviours and our governance structure, which

shape our culture and remain central to the way we conduct our

business. The culture of the business is a key part of our success.

The Non-Executive Directors are responsible for providing

constructive challenge to the Executive Directors, assisting in

developing proposals on the Group’s strategy and monitoring

theperformance of the Executive Directors against strategic

andoperational objectives.

The Board has delegated certain responsibilities to its Audit,

Remuneration and Nomination Committees. Each Board Committee

has defined terms of reference, which can be found online within the

Governance section of the Company’s website: www.safestore.com.

The activities of each Board Committee are set out in separate

sections of this report. The Audit Committee is, in turn, supported by

the Risk Committee, which is a management committee, chaired by

the Chief Financial Officer.

The Board also has an established Standing Committee and a

Disclosure Committee, which are sub-committees of the Board and

meet as required. The Standing Committee has delegated authority to

approve routine matters such as matters relating to the operation of

the Company’s share scheme arrangements, and any other matters,

which may be expressly delegated to it by the Board from time to

time. The Disclosure Committee has delegated responsibility for

overseeing the disclosure of information by the Company to meet its

obligations under the Market Abuse Regulation.

All Committees and all Directors have the authority to seek information

from any Group colleague and to obtain professional external advice

ifthey feel necessary.

Implementation of agreed plans, budgets and projects in pursuit of the

Group’s strategy and the actual operation of the Group’s system of

internal control and risk management are delegated to the Executive

Directors, who are supported by an Executive Team. This includes

implementing Group strategy to optimise the trading performance of

the existing store portfolio, to monitor financial performance and

maintain a strong and flexible capital structure, to identify selective

portfolio and expansion opportunities, to develop our colleagues and

to implement the Group’s sustainability strategy. Sustainability

governance is explained more fully on page 46.

The Board and its independence

At the date of this report, the Board consists of nine Directors,

theChairman, two Executive Directors and six independent

Non-Executive Directors, with Ian Krieger appointed as current

SeniorIndependent Director until the 2024 Annual General Meeting.

The Chairman was considered to be independent on appointment.

The skills and experience of each of the Directors, along with the

dates they commenced their role, are set out on pages 80 and 81.

Both on an individual and collective basis, the Directors have the

skills,understanding, experience and expertise necessary to ensure

the effective leadership of the Group. At least half of the Board,

excluding the Chair, are independent. The Board monitors the

independence of its Non-Executive Directors. The Board is aware

ofthe other commitments of its Directors and is satisfied that these

neither conflict with their duties, nor impact their independence or

time commitment as Non-Executive Directors of the Company.

The Board is mindful that the Code lists that where non-executive

directors hold cross-directorships or have significant links with other

directors through involvement in other companies or bodies, this is

likely to impair, or could appear to impair, a non-executive director’s

independence. Accordingly when assessing the independence of

Laure Duhot and Ian Krieger, it was noted that both Laure and Ian

serve as independent non-executive directors of Primary Health

Properties plc (“PHP”), a UK listed company. They are not involved

inexecutive duties for PHP and each has a similar obligation to be

independent for PHP as they do for the Company. The Board

doesnot consider that Laure and Ian’s positions as independent

Non-Executive Directors of the Company are adversely impacted by

their roles on the board of PHP and is satisfied that, notwithstanding

these appointments, they are therefore regarded as independent.

IanKrieger will be stepping down from the Board at the 2024

AnnualGeneral Meeting, at which point there will be no instances

ofcross-directorships on the Board.

The Board is also mindful that non-executive director tenure that

exceeds nine years is also listed by the Code as a circumstance that

islikely to impair, or could appear to impair, a non-executive director’s

independence. Ian Krieger was appointed to the Board in October2013.

Having undertaken a rigorous review of Ian’s performance as a

Non-Executive Director and having taken into account other relevant

factors that might be considered likely to impair, or could appear to

impair, independence including as set out in Provision 10 of the Code,

the Board considers that Ian has remained independent during the

year under review.

Our purpose: to add stakeholder value

by developing profitable and sustainable

spaces that allow individuals, businesses,

and local communities to thrive

Safestore Holdings plc | Annual report and financial statements 2023

Corporate governance

In April 2023, the Company announced that Ian had advised his

intention to retire as a Non-Executive Director of the Company

following the conclusion of the Company’s 2024 Annual

GeneralMeeting.

Each Non-Executive Director continues to bring independent

judgement to the Board’s decision-making process. Frederic Vecchioli

is also a director of the group of companies that forms the Joint

Venture group structure operating in Germany, which includes

companies incorporated in Germany and Luxembourg and that are

associated companies of the Group; apart from these appointments

the Executive Directors do not hold any executive or non-executive

directorships in other companies.

Division of responsibilities

The roles of Chairman, Chief Executive Officer and Senior

Independent Director are separate and clearly defined, with the

division of responsibilities set out in writing and agreed by the Board.

The Chairman is responsible for the management of the Board and

foraspects of external relations, while the Chief Executive Officer has

overall responsibility for the management of the Group’s businesses

and implementation of the strategy approved by the Board. The Senior

Independent Director is also responsible for supporting the Chairman

on all governance issues. The statement of the division of responsibilities

between the Chairman, the Chief Executive Officer and the Senior

Independent Director is available on the Governance section of the

Company’s website: www.safestore.com.

Formal workforce advisory panel

Our ‘Make the Difference’ people forum, launched in 2018, is a formal

workforce advisory panel. The Board approved the establishment of

the advisory panel to facilitate engagement between colleagues

fromdifferent areas of the business and provide a two-way feedback

process between the Board and our colleagues. The panel has

termsof reference that define its purpose and has a mechanism for

appointing colleague representatives, known as ‘People Champions’.

Further information relating to the panel and our ‘People Champions’

can be found on page 11. The Board receives regular feedback

fromthe panel which has resulted in the Board approving outcomes

as detailed in the Sustainability report on page 50 and Directors’

remuneration report on pages 96, 102 and 106. The Chief Executive

Officer attends panel meetings twice a year to report the views of the

Board and to provide regular updates covering the Group’s performance

and the delivery of our strategy. The Board considers the formal

workforce advisory panel to be effective.

Effectiveness

Activities of the Board

The Board scheduled eight meetings during the financial year, with

three further Board meetings arranged as required. The Board has

held a mix of meetings either in person or by video conference,

andheld one meeting at the Group’s office in Paris.

The Board has a formal schedule of matters specifically reserved for

its decision, which includes (amongst other things) various strategic,

financial, operational and governance responsibilities. A summary of the

key activities of the Board during the year, in accordance with the formal

schedule of reserved matters, can be found on pages 84 and 85.

The services of the Company Secretary are available to all members

of the Board. Board minutes are circulated to all Board members.

There is also regular informal contact between Executive and

Non-Executive Directors to deal with important matters that arise

between scheduled Board meetings. A separate meeting for

Non-Executive Directors is held at least once in every year.

Appropriate directors’ and officers’ insurance cover is arranged by the

Group through its insurance brokers and is reviewed annually.

Board meetings held in 2022/23

Attendance of the individual Directors of the Board at meetings that

they were eligible to attend during the financial year is shown in the

table below:

Director who served during the year ended

31October 2023

Number of

meetings held

during tenure

during the year

Number of

meetings

attended

David Hearn 11 11

Frederic Vecchioli 11 11

Andy Jones 11 11

Ian Krieger 11 11

Gert van de Weerdhof 11 11

Laure Duhot 11 11

Delphine Mousseau 11 11

Jane Bentall* 11 10

Avis Darzins** 1 1

Note:

* Jane Bentall missed a Board meeting due to a family medical emergency.

** On 1 September 2023, Avis Darzins was appointed as an independent

Non-ExecutiveDirector.

In addition to the scheduled Board meetings, the Standing Committee

met on 20 occasions and was granted express delegation by the Board

to approve the full year and half year results announcements and

ancillary matters, including the Company’s new financing arrangements.

The Standing Committee also approved routine administrative matters

which related to the maturity of the Company’s Sharesave schemes,

and vesting of the Company’s Long Term Incentive Plans, the grant of

new options under the 2023 (three-year) Sharesave scheme and the

Company’s new financing and intercompany funding arrangements.

The Disclosure Committee hasnot met during the year.

2023 Board and Committee evaluation

The Board recognises that it continually needs to monitor and improve

its performance. This is achieved through annual Board effectiveness

reviews, full induction of new Board members and ongoing Board

development activities. Each year the Board conducts an

effectiveness review and every three years the review is carried out

externally. An external evaluation was completed in 2022.

This year the Board carried out an internal evaluation of its

performance, its Committees and individual Directors. The scope

wasagreed with the Chairman and was facilitated by the Company

Secretary. Directors were invited to complete a detailed questionnaire

alongside opportunities for additional comments, which was

completed by each Board member. The questionnaire covered

anumber of key areas, including strategy, succession planning,

Boardsize, composition and balance of skills, risk management and

the relationship between the Board and management. The responses

were considered by the Chairman and were collated and shared with

the Board. The Chairman discussed the outcome of the evaluation

with each Director and shared his findings with the Board.

The anonymity of respondents was ensured throughout the evaluation

process in order to promote an open and frank exchange of views.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Effectiveness continued

2023 Board and Committee evaluation continued

Notwithstanding that the report considered that the Board’s

performance was strong, the evaluation provided constructive

feedback and identified opportunities for development and growth.

The Board undertook to develop an action plan to address particular

areas of interest, with a focus on improving the Board and its

Committees, effectiveness and develop efficiencies together with

theexecutive function to enable Directors to prioritise strategic

progression and generating shareholder value.

The results of the Board evaluation confirmed that the Board

continues to function effectively to a high standard.

TheBoardmembers were seen as engaged and committed while the

Board’s culture remains open, respectful and constructive.

The content for any subsequent effectiveness reviews will be designed

to build upon insights gained in the previous exercise to ensure that

the recommendations agreed in the review have been implemented

and that year-on-year progress is measured.

The Chairman reviewed the performance of the Chief Executive

Officer and the Non-Executive Directors. The Chief Executive Officer

reviewed the performance of the Chief Financial Officer, and this year,

the Chairman’s own performance was assessed by the Senior

Independent Director after seeking and receiving feedback from

eachof the other Directors.

A summary of the key matters considered by the Board during the year

Responsibilities Activities

Strategy • The development and implementation of the Company’s strategy included general updates from the CEO and CFO.

• Presentations from members of the management team on strategy implementation in their operations.

• Considered selective portfolio management and expansion opportunities, which included the establishment of a new

JointVenture arrangement with Carlyle in Germany, and site acquisitions in the UK, France, Spain and Benelux.

Performance

and operational

matters

• Reviewed the 2023 performance against budget and updated forecasts for the UK, French, Spanish and

Beneluxoperations.

• Reviewed customer performance data.

• Maintained a detailed focus on full year earnings guidance.

• Approved the 2023 Board budget.

• Reviewed and approved the Group’s investment appraisal policy.

• Received regular operational updates from members of the management team, relating to property, colleagues,

marketing, IT, store operations, Company secretarial and legal matters.

Finance and

capital

• Reviewed the Group’s capital structure and approved the arrangements for the Group’s new £400 million unsecured

multi-currency Revolving Credit Facility and agreed to extend the facility by a further one year to November 2027.

• Monitored the Company’s going concern and long term viability statements.

• Reviewed cash flow, dividend policy (in line with the UK REIT requirements) and shareholder returns.

People, culture

and values

• Received regular updates on colleague wellbeing and HR matters, including updates on colleague engagement and

updates from our ‘Make the Difference’ people forum, our formal workforce advisory panel.

• Reviewed and approved the Group’s key policies including the Company’s Modern Slavery Act Statement, anti-corruption and

bribery statement and policy, the whistleblowing (“Speak Out”) policy and the health and safety policy statement.

• Considered and reviewed the gender pay gap report for 2022.

• Reviewed the Company’s sustainability strategy, including the Company’s commitment to working towards operational

carbon neutrality (net zero) by 2035.

• Reviewed colleague engagement arrangements.

Governance

andrisk

• Approved changes to Board composition, and considered Director independence, and succession planning.

• Approved an increase in Non-Executive Director fees, in line with overall general increases to all colleagues.

• Reviewed reports on governance and legal issues.

• Considered the Company’s risk appetite in relation to its strategy.

• Reviewed the outcome of the Board and its Committees’ 2023 Board effectiveness review.

• Reviewed the Directors’ Conflict of Interests Register.

• Monitored and reviewed the Company’s Risk management and internal control system. (See Audit Report for more details

on effectiveness).

Shareholder

and stakeholder

engagement

• Discussed feedback from investors’ and analysts’ meetings following the release of our full year and half year results

announcements and interim management statements and meetings with existing and potential shareholders.

• Discussed feedback following the Chairman and Chair of the Remuneration Committee’s engagement with major

shareholders ahead of submitting the Company’s 2023 Directors’ Remuneration Policy to shareholders for approval at the

General Meeting held in July 2023.

• Received regular updates from brokers and advisers on the market perception of Safestore.

• Received updates from the CEO and CFO on stakeholder engagement in relation to investor and partner engagement.

Safestore Holdings plc | Annual report and financial statements 2023

Corporate governance continued

Responsibilities Activities

Other • Approved the Annual Report and Financial Statements and recommended the final dividend in line with the Company’s

dividend policy for shareholder consideration.

• Approved the 2023 half year results announcement and declared the interim dividend in line with the Company’s

dividendpolicy.

• Approved the interim management statements in November 2022 and February and September 2023 regarding trading updates.

• Received and reviewed monthly shareholder analysis reports.

Board appointments

Each decision to appoint further Directors to the Board is taken by the

entire Board in a formal meeting based on a recommendation from the

Nomination Committee. The Nomination Committee consults with

financial and legal advisers and uses the services of external

recruitment specialists. New members of the Board are provided with

initial and ongoing training appropriate to individual needs in respect

of their role and duties as Directors of a listed company.

During the year the Nomination Committee engaged in a rigorous

search for a new Non-Executive Director. The process for identifying

and overseeing the appointment of the new Non-Executive Director

has been explained in the Nomination Committee report on page 87.

Board development

The Chairman is responsible for ensuring that all Non-Executive Directors

receive ongoing training and development. Our Non-Executive Directors

are conscious of the need to keep themselves properly briefed and

informed about current issues. Specific and tailored updates are

provided at Board meetings and to members of the Audit Committee

and have included presentations from the Company’s advisers.

There is a procedure to enable Directors to take independent legal

and/or financial advice at the Company’s expense, managed by the

Company Secretary, if they feel necessary to carry out their duties as

a Director fully. No such independent advice was sought in 2023.

During the year the Company has delivered an induction programme

for Avis Darzins which has been led by the Chief Executive Officer.

Theinduction programme has been prepared to ensure that it

provides a comprehensive introduction to the Group as a whole.

Appointment terms and elections of Directors

All Directors have service agreements or letters of appointment and

the details of their terms are set out in the Directors’ remuneration

report on page 121. The service agreements of the Executive

Directors and letters of appointment of the Non-Executive Directors

are available for inspection at the Company’s registered office during

normal business hours, including the 15 minutes immediately prior to

the AGM. The letters of appointment for Non-Executive Directors are

in line with the provisions of the Code relating to expected time

commitment. At each AGM of the Company, all Directors will stand for

re-election in accordance with the Code and the Company’s Articles

of Association. The Company’s Articles of Association require that a

Director appointed during the preceding year should be subject to

election at the Company’s next AGM.

Directors’ conflicts of interest

The Company’s Articles of Association give the Directors the power to

consider and, if appropriate, authorise conflict situations where a

Director’s declared interest may conflict or does conflict with the

interests of the Company.

Procedures are in place at every meeting for individual Directors

toreport and record any potential or actual conflicts which arise.

Theregister of reported conflicts is reviewed by the Board at least

annually. The Board has complied with these procedures during

theyear.

Accountability

Risk management and internal control

A summary of the principal risks and uncertainties within the business

is set out on pages 35 to 40.

The Board retains overall responsibility for setting Safestore’s risk

appetite and establishing, monitoring and maintaining the Group’s risk

management and internal control systems. These systems are

designed to enable the Board to be confident that such risks are

mitigated or controlled as far as possible, although no system can

eliminate risk entirely.

The Board has established a number of ongoing processes to identify,

evaluate and manage the strategic, financial, operating and compliance

risks faced by the Group and for determining the appropriate course

of action to manage and mitigate those risks. The Board delegates the

monitoring of these internal control and risk management processes

to the Audit Committee. These measures have been in place

throughout the year and up to the date of this report.

The Risk Committee supports the Group’s risk management strategy

and undertakes regular reviews of the formal risk assessments and

reports regularly to the Audit Committee of the Board. The Risk

Committee is chaired by the Chief Financial Officer and comprises

representatives from the Operations, Finance, Human Resources and

Property functions. Risk management remains an ongoing

programme within the Group and is formally considered at operational

meetings as well as at meetings of the Board.

As reported last year, during the year ended 31 October 2023, the

Group employed a Head of Internal Audit in the UK supported by three

auditors responsible for reviewing operational and financial controls

across the UK, France, Spain, Belgium, the Netherlands and

Germany. The internal audit team operates with a mandate to provide

assurance that the stores’ risk management and control processes

operate effectively. The Head of Internal Audit reports to the Chief

Financial Officer and the Chair of the Audit Committee. Further details

are provided in the Audit Committee report.

During the financial year, the Board has directly, and through

delegated authority to the Audit and Risk Committees, overseen

andreviewed the performance and evolution of risk management

activities and practices and internal control systems within the Group.

Throughboth its ongoing involvement in and overview of risk management

and internal control activities, the Board is satisfied that there have

been no significant failings or weaknesses identified and the Directors

believe that during 2023 the system of internal control has been

appropriate for the Group.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Accountability continued

Budgetary process

A comprehensive budgeting process is in place, with an annual

budget prepared and validated at a country and functional level.

Thebudget is subject to significant consideration and approval by the

Board. The Directors are provided with relevant and timely information

required to monitor financial performance.

Investment appraisal (including acquisitions)

Budgetary approval and defined authorisation levels regulate capital

expenditure. Acquisition activity is subject to internal guidelines

governing investment appraisal criteria, financial targets, negotiation,

execution and post-acquisition management.

Company ethics and whistleblowing

The Company is committed to the highest standards of integrity and

honesty and expects all colleagues to maintain the same standards in

everything they do at work. The Company recognises that effective

and honest communication is essential to maintain its business values

and to ensure that any instances of malpractice are detected and

dealt with.

The Company has a number of policies available online for its

colleagues. These include a code of conduct, an anti-bribery and

corruption policy, a receipt of gifts and corporate hospitality policy and

a whistleblowing (“Speak Out”) policy. The anti-bribery and corruption

policy reinforces the Group’s commitment to countering bribery, tax

evasion and corruption as it seeks to comply with the Bribery Act

2010 and the Criminal Finances Act 2017.

The Speak Out policy has procedures for disclosing malpractice and,

together with the code of conduct, is intended to act as a deterrent to

fraud or other corruption or serious malpractice. It is also intended to

protect the Group’s business and reputation.

No whistleblowing issues were reported during the year.

The Board considers the payment of taxes as a responsibility that

brings positive socio-economic impacts through its presence and

employment creation in the countries it operates in. A Group tax

strategy has been in place since 2016, which is approved by the

Board and reviewed annually by the Audit Committee and is available

on the Group’s website: www.safestore.com. It is the Group’s policy to

pay the right amount of tax wherever it does business, based on a fair

and sound application of local tax laws to the economic substance of

its business transactions. Safestore does not use artificial tax

avoidance schemes or tax havens to reduce the Group’s tax liabilities.

Investor relations and shareholder and

investor engagement

We are committed to proactive and constructive engagement with all

our shareholders and consider all shareholders’ views as part of the

Board’s decision-making process. The Group places a great deal of

importance on communication with its shareholders and maintains a

dialogue with the investment community. Engagement is maintained

through a comprehensive investor relations programme, which

includes formal presentations of the full year and half year results,

meetings with institutional investors and analysts as required and

attendance at investor conferences. The presentation slides used at

these meetings are made available on the Company’s website and

accessible for all shareholders. The Board ensures that our

shareholders, investors and investor community have a strong

understanding of our strategy, performance and culture.

Demonstrating our commitment to full transparency and engagement

with our shareholders during this year the Chairman and Chair of the

Remuneration Committee engaged extensively with most of our major

shareholders and Investor Bodies in relation to our remuneration

strategy and our 2023 Remuneration Policy (the “Policy”). The Board

would like to thank shareholders for showing their overwhelming

support for our new Policy at our General Meeting held in July 2023.

To ensure all Board members share a good understanding of the

views of all our shareholders, the Board receives regular updates on

the views of our shareholders and receives summaries of institutional

investor comments following meetings on the full year and half

yearresults.

In the event that shareholders have any concerns, which the normal

channels of communication through the Chief Executive Officer or

Chief Financial Officer have failed to resolve or for which such contact

is inappropriate, our Chairman or Senior Independent Director are

available to address such concerns. Both make themselves available

when requested for meetings with shareholders on issues relating to

the Company’s governance and strategy.

The Board considers the Annual Report and Financial Statements,

theAGM and its website to be the primary vehicles for communication

with private investors. All shareholders are invited to the Annual General

Meeting and can raise any comments they may have throughout the

year via our IR inbox, which is published on our website. Resolutions

at the Company’s AGM are proposed on each substantially separate

issue and the Company indicates the level of proxy voting lodged in

respect of each resolution. The AGM gives all shareholders who are

able to attend (especially private shareholders) the opportunity to ask

questions of the full Board of Directors, including the Chairs of the

Audit, Nomination and Remuneration Committees.

Safestore Holdings plc | Annual report and financial statements 2023

Corporate governance continued

Meetings held in 2022/23

Members of the Committee during the year

ended 31 October 2023

Number of

meetingsheld

during tenure

during the year

Number of

meetings

attended

David Hearn (Chair) 4 4

Ian Krieger 4 4

Gert van de Weerdhof 4 4

Membership

The Nomination Committee comprises Non-Executive Directors and is

chaired by David Hearn. There were no changes to the Committee’s

membership during the year. Other Directors and management are

invited to attend meetings as appropriate.

Key objectives

To ensure the Board and Executive Team comprise individuals with

the appropriate skills, knowledge, experience and diversity, and to

ensure that the Board is effective in discharging its responsibilities.

Responsibilities

The Board has approved terms of reference for the Nomination

Committee which are available on the Governance pages of the

Group’s website, www.safestore.com, within ‘Governance

Documents’. These provide the framework for the Committee’s work

in the year and can be summarised as:

• assessing the composition of the Board and making

recommendations on appointments to the Board and

seniorexecutive succession planning; and

• overseeing the performance evaluation of the Board,

itsCommittees and individual Directors.

How the Committee operates

The Nomination Committee met as necessary and each meeting had

full attendance.

Activities of the Committee during the year

Appointment of a new Non-Executive Director

During the year the Committee reviewed the Board’s size, skill set

anddiversity and agreed to undertake a search for a new additional

Non-Executive Director.

Following a tender process the Committee engaged Teneo to conduct

and advise on the executive search for a new Non-Executive Director.

Teneo has signed up to the voluntary code of conduct on gender

diversity and best practice, and is accredited under the enhanced

code of conduct for executive search firms, which specifically

acknowledges those firms with a strong track record in and promotion

of gender diversity in FTSE 350 companies. Teneo has no other

connection with the Group or any of the Company’s Directors.

The Nomination Committee prepared a job specification and agreed

acandidate profile for Teneo to undertake an executive search. A diverse

range of candidates with a breadth of experience were considered.

Anextensive search of the market was conducted to develop a

longlist of 13 candidates. The Nomination Committee reviewed the

longlistof potential candidates from which a shortlist of six candidates

wasdrawn up for further review and discussion by the Committee.

The Committee reviewed the respective skills and experience of the

shortlisted candidates and their fit with the Board’s candidate profile.

The members of the Committee unanimously recommended Avis

Darzins to the Board and the Board approved Avis’ appointment as a

Non-Executive Director and a member of the Audit and Remuneration

Committees with effect from 1 September 2023.

“The Board, on the advice of the

Committee, recommends the election

orre-election of each Director.”

David Hearn

Chair of the Nomination Committee

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Nomination Committee report

Activities of the Committee during the year continued

Appointment of new Non-Executive Director continued

A significant amount of the Committee’s time in 2023 was spent on Board composition; other activities of the Nomination Committee included:

Responsibilities Activities

Board and Committee

composition

• Assessed the diversity, skill set and composition of the existing Board and its Committees.

• Oversaw the process for appointing an additional Non-Executive Director.

Succession planning • Discussed succession planning in respect of both Board members and senior management within the Group.

Board development • Reviewed the programme for Non-Executive Director development.

Governance • Reviewed the Group’s culture, values and behaviours.

• Discussed the remit and role of the Committee and reviewed its terms of reference.

Succession planning

It is a key responsibility of the Committee to advise the Board on succession planning. The Committee ensures that future changes in the

Board’s membership are anticipated and properly managed and that, in the event of unforeseen changes, management and oversight of the

Group’s business and long term strategy will not be disrupted. The Committee also addresses continuity in, and development of, the Executive

Committee below Board level.

Board and Committee performance evaluation

The Committee’s performance was reviewed as part of the 2023 internal Board and Committee evaluation process, which is explained

onpages83 and 84. The review found that the Committee functions effectively and should continue to develop succession plans at Board

andexecutive level with due regard for the benefits of diversity.

Directors standing for election and re-election

In accordance with the Company’s Articles of Association and the provisions of the Code, Avis will be subject to election and the remaining

Directors will stand for re-election, at the Company’s 2024 AGM. Following the annual Board performance review and the outcome of

performance reviews of individual Directors, I can confirm that each Director subject to either election or re-election:

• continues to operate as an effective member of the Board;

• remains committed to their roles and has sufficient time available to perform their duties; and

• has the skills, knowledge and experience that enable them to discharge their duties properly and contribute to the effective operation

oftheBoard.

The Board, on the advice of the Committee, recommends the election or the re-election of each Director. Further information on the Directors,

including their skills and experience, can be found in the Directors’ biographies on pages 80 and 81.

I will be available at the Annual General Meeting to answer any questions on the work of the Nomination Committee.

David Hearn

Chair of the Nomination Committee

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

Nomination Committee report continued

Meetings held in 2022/23

Members of the Committee during the year

ended 31 October 2023

Number of

meetings held

during tenure

during the year

Number of

meetings

attended

Ian Krieger (Chair) 4 4

Gert van de Weerdhof 4 4

Jane Bentall* 4 3

Avis Darzins 1 1

Note:

* Jane Bentall was unable to attend an Audit Committee meeting due to a family

medicalemergency.

Membership

The Audit Committee comprises solely independent Non-Executive

Directors. Avis Darzins was appointed as a member of the Committee

on 1 September 2023. The members of the Committee have been

selected to provide a wide range of financial and commercial expertise

necessary to fulfil the Committee’s duties and responsibilities and I am

the Committee’s designated financial expert for the purposes of

theCode.

In order to ensure that the Committee continues to have experience

and knowledge relevant to the sector in which the Company operates,

all of the Non-Executive Directors receive regular updates on

business, regulatory, financial reporting and accounting matters.

TheCommittee’s performance was reviewed as part of the 2023

Board evaluation, which is explained on pages 83 and 84. The review

found that the Committee functions effectively and that issues are

dealt with in a thoughtful, clear and rigorous manner.

After nine years as Chair of the Audit Committee, I will be standing

down from this role at the Company’s 2024 Annual General Meeting

and will be replaced by Jane Bentall.

Key objectives

The provision of effective governance over the appropriateness of the

Company’s financial reporting, the performance of both internal audit

arrangements and the external auditor and oversight over the

Company’s system of internal control.

Responsibilities

The Board has approved terms of reference for the Audit Committee,

which are available on the Governance pages of the Group’s website,

www.safestore.com, within ‘Governance Documents’. These provide

the framework for the Committee’s work in the year and can be

summarised as providing oversight of the:

• appropriateness of the Company’s external financial reporting;

• relationship with, and performance of, the external auditor;

• Group’s internal audit arrangements and the risk management

framework; and

• Group’s internal control framework.

How the Committee operates

The Audit Committee met four times during the year, and has

anagenda linked to the events in the Group’s financial calendar.

Inaddition to the Committee members, the following individuals

attend by invitation:

• the Chief Financial Officer and the Group Financial Controller;

• the Chairman and the Chief Executive Officer;

• the Head of Internal Audit;

• other senior managers, as appropriate, including those responsible

for IT security and risk management;

• the audit partner, directors and senior managers from Deloitte; and

• the valuation team from the Company’s property valuers, Cushman

& Wakefield.

This year, during two Audit Committee meetings, the Committee met

separately with Deloitte without any other member of management

being present.

“The Company’s control environment

remains robust.”

Ian Krieger

Chair of the Audit Committee

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Audit Committee report

Main activities of the Committee during the year

A summary of the Audit Committee’s main activities during the year included the following items:

Responsibilities The Audit Committee has:

Financial reporting • reviewed the Annual Report and Financial Statements and that, taken as a whole, it is fair, balanced and

understandable and provides the information necessary for shareholders to assess the Company’s

performance, business model and strategy;

• assessed and concluded on the Group’s viability statement and the appropriateness of adopting the going

concern basis of accounting for the full and half year financial results;

• reviewed the significant issues and material judgements which were made in preparing the 2023 half year

results and the Annual Report and Financial Statements;

• considered and agreed the approach for performing the valuations of investment properties for the Annual

Report and Financial Statements and interim results;

• challenged the valuers findings and judgements in relation to the property valuation;

• reviewed the integrity of the financial statements and announcements relating to the financial performance and

governance of the Group at year end and half year;

• reviewed the principal judgemental accounting matters affecting the Group based on reports from both the

Group’s management and the external auditor;

• considered alternative performance measures, not defined under IFRS or ‘non-GAAP’ measures, ensuring

consistency with how management measures and judges the Group’s financial performance; and

• reviewed and agreed the Company’s response to the FRC’s request for information in relation to the Company’s

Annual Report and Financial Statements for the year ended 31 October 2022.

External auditor • reviewed and approved the audit plan with the external auditor, and that it was appropriate for the Group,

including in respect of scope and materiality and aligned to the key risks of the business;

• considered external audit effectiveness and independence;

• challenged the auditor’s findings and judgements in relation to the property valuation;

• approved auditor remuneration; and

• considered the requirement to tender for audit services, in line with the Statutory Services for Large Companies

Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Responsibilities) Order 2014.

Internal audit

arrangements

• reviewed the effectiveness of the Group’s internal controls and disclosures made in the Annual Report and

Financial Statements;

• approved the internal audit plan for 2023 and 2024; and

• assessed the effectiveness and independence of the internal audit team.

Governance and risk • monitored the adequacy and the effectiveness of the Group’s ongoing risk management systems and

processes, through risk and assurance plans and reports, including:

• store assurance audit reports;

• internal financial control assessments;

• fraud and loss prevention reports; and

• operational risk updates, including IT security, health and safety and climate change risk;

• reviewed the Company’s anti-corruption and bribery statement and policy, and whistleblowing (“Speak Out”)

policy and procedures;

• monitored the effectiveness of the Company’s information security and business continuity arrangements; and

• reviewed the Company’s REIT compliance and tax strategy.

Appropriateness of the Company’s external

financial reporting

Financial reporting and significant financial judgements

The Committee assessed whether suitable accounting policies

hadbeen adopted and whether management had made appropriate

estimates and judgements. The Committee reviewed accounting

papers prepared by management which provided details on the

mainfinancial reporting judgements. The Committee paid particular

attention to the investment in the German associate with Carlyle

ensuring that the correct accounting treatment had been applied

andthe investment in associate had been correctly recorded using

theequity method of accounting.

The Audit Committee reviewed the assumptions associated with

theaccounting for share-based payments to ensure that they were

accurately measured and disclosed appropriately in the Annual Report

and Financial Statements in accordance with IFRS 2 “Share-based

Payments”, with particular focus on the assessment of the

performance conditions under which the share-based payments vest.

The Committee also reviewed reports by the external auditor on the

full year and half year results which highlighted any issues with respect

to the work undertaken on the year-end audit and half year review.

The Committee paid particular attention to matters it considered

important by virtue of their impact on the Group’s results and

remuneration, and particularly those which involved a high level

ofcomplexity, judgement or estimation by management.

Safestore Holdings plc | Annual report and financial statements 2023

Audit Committee report continued

The Committee has concluded that there were not significant levels

ofjudgements included in the financial statements, other than for the

property valuation as described below.

Property valuations

The key area of judgement that the Committee considered in reviewing

the financial statements was the valuation of the investment property

portfolio. Whilst this is conducted by independent external valuers, it

isone of the key components of the financial results and is inherently

complex and subject to a high degree of judgement and estimation.

Aswell as detailed management procedures and reviews of the process,

the Committee met the Group’s valuers to discuss the valuations, review

the key judgements and discuss whether there were any significant

disagreements with management. This year the Committee reviewed

and challenged the valuers on the cap rates, rental growth assumptions

and stabilised occupancy levels, and also the considerations made

around the macro-economic and inflationary environment, in order to

agree the appropriateness of the assumptions adopted. The Committee

also challenged the valuers and satisfied itself on their independence,

their quality control processes (including peer partner review) and

qualifications to carry out the valuations. Management also has

processes in place to review the external valuations. In addition, the

external auditor uses valuation experts to conduct a detailed review of

the key assumptions that underpin the investment property valuations

and reports their findings to the Committee.

A more detailed explanation of the background, methodology and

judgements that are adopted in the valuation of the investment

properties is set out in note 13 to the financial statements.

Financial statements

The Committee considered and was satisfied with management’s

presentation of the financial statements.

Management confirmed to the Committee that it was not aware of

anymaterial misstatements and the auditor confirmed that it had

found no material misstatements during the course of its work.

The Committee is satisfied that the judgements and estimates made

by management are reasonable and that appropriate disclosures have

been included in the financial results. After reviewing the reports from

management and following its discussions with the valuers and auditor,

the Committee is satisfied that the financial statements appropriately

address the critical judgements and key estimates, bothin respect

ofthe amounts reported and the disclosures. TheCommittee is also

satisfied that the processes used for determining the value of the

assets and liabilities have been appropriately reviewed and challenged

and are sufficiently robust.

Fair, balanced and understandable assessment

At the request of the Board, the Committee also considered whether

the Annual Report and Financial Statements was fair, balanced and

understandable and whether it provided the necessary information for

shareholders to assess the Company’s performance, business model

and strategy.

The Committee has advised the Board that in its view, taken as a

whole, the Annual Report and Financial Statements is fair, balanced

and understandable. In reaching this conclusion, the Committee

considered the overall review and confirmation process around the

Annual Report and Financial Statements, going concern and viability.

The Committee was provided with, and commented on, a draft copy

of the Annual Report and Financial Statements. In carrying out the

above processes, key considerations included ensuring that there was

consistency between the financial results and the narrative provided in

the front half of the Annual Report. The Committee is satisfied that

alternative performance measures, not defined under IFRS or

‘non-GAAP’ measures, are consistent with how management

measures and judges the Group’s financial performance.

Going concern and viability statement

The Committee has reviewed the Group’s assessment of viability over

a period of three years. The Committee’s approach in assessing going

concern and the viability statement is set out on page 42.

Financial Reporting Council’s (“FRC”) review

ofthe Company’s Annual Report and Financial

Statements for the year ended 31 October 2022

The Company received a request for further information from the FRC

in relation to its Annual Report and Financial Statements for the year

ended 31 October 2022. The Audit Committee reviewed and agreed

its response to the FRC. Accordingly, the Company provided further

information to the FRC concerning the payment of the 2022 interim

dividend and satisfactorily explained the Company’s accounting

treatment for the settlement of debt following the Group’s acquisition

of Carlyle’s 80% share of the Benelux Joint Venture. Whilst the

Company had adequate distributable reserves to cover the 2022

interim dividend, paid on 11 August 2022, the Company agreed

tofileCompany accounts for the half year ended 30 April 2022 at

Companies House and to propose resolutions at its 2024 AGM to

approve deeds of release between the Company and each of its

shareholders and Directors.

The FRC’s review provides no assurance that our Annual Report and

Financial Statements for the year ended 31 October 2022 are correct

in all material respects; the FRC’s role is not to verify the information

provided but to consider compliance with reporting requirements.

Relationship with, and performance of,

theexternal auditor

Annual auditor assessment

During the year, the Committee conducted a review of the

effectiveness of the external audit process and the audit quality.

In considering the effectiveness of the external audit, the Committee

requested reports from the external auditor and management on the

audit process, quality procedures and the handling of key judgements.

In addition the Committee assessed:

• the arrangements for ensuring the external auditor’s independence

and objectivity;

• the quality of the audit team and their expertise;

• the quality and scope of the audit plan and reporting;

• the quality of the formal audit report to shareholders;

• the robustness and perceptiveness of the auditor in its handling

ofthe key accounting and audit judgements; and

• the content of the external auditor’s comments on control

improvement recommendations.

The Committee also sought the views of key members of the finance

team, senior management and Directors on the audit process and

thequality and experience of the audit partner engaged in the audit.

Theirfeedback confirmed that the auditor had shown the requisite

commitment in providing its services and has demonstrated depth

ofknowledge of the Company and the industry, with the necessary

robustness, independence and objectivity. The Auditor continues

toperform well and provides an appropriate level of challenge

tomanagement.

It is standard practice for the external auditor to meet privately with

theAudit Committee, without any member of management or the

Executive Directors being present, at least once a year.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Relationship with, and performance of,

theexternal auditor continued

External auditor objectivity, independence and non-audit work

The Audit Committee’s terms of reference set out that it is responsible

for the formal policy on the award of non-audit work to the auditor.

TheCommittee has formalised procedures for the approval of non-audit

services which stipulate the services for which the auditor will not be

used. The policy also stipulates projects where the auditor may be

used, subject to certain conditions and pre-approval requirements.

Inorder to preserve auditor objectivity and independence, the external

auditor is not asked to carry out non-audit work. A report of all audit

and non-audit fees payable to the external auditor is provided to the

Committee at each meeting, including both actual fees for the year to

date and a forecast for the full year, analysed by project and into

pre-defined categories. In the current financial year, Deloitte LLP

provided non-audit services, amounting to £50,000 covering first year

engagement of ESG covenant compliance work, for the Company’s

lenders. It was determined that the nature of the work would not

impact auditor objectivity and independence given the safeguards

inplace.

It is the Committee’s policy to ensure that there is audit partner

rotation every five years to safeguard the external auditor’s

independence and objectivity. Deloitte was appointed as external

auditor to conduct the audit for the 2014 financial year. The first lead

audit partner retired following the 2017 audit and his successor retired

following the 2022 audit. Stephen Craig was appointed as the new

lead audit partner for the 2023 audit.

The auditor is asked on an annual basis to articulate the steps that it

has taken to ensure objectivity and independence, including where

the auditor provides non-audit services. As part of the 2023 audit,

Deloitte confirmed that it was independent within the meaning of

applicable regulatory and professional requirements. Taking this into

account and having considered the steps taken by Deloitte to

preserve its independence, the Committee concluded that Deloitte’s

independence had not been compromised, notwithstanding the level

of non-audit fees incurred during the year.

Audit tender

Deloitte was appointed by the Company’s shareholders as the

Group’s statutory auditor in 2014 following a formal tender process.

The lead partner for Deloitte was rotated in 2023. As required by the

Statutory Auditors and Third Country Auditors Regulations 2016

(“SATCAR”), the Company was required to undertake a formal tender

foraudit services for its financial year ending 31 October 2024.

At the end of 2023, the Board invited a number of audit firms to

participate in a formal tender for the audit and related services of the

Group, commencing with the audit for the year ending 31 October

2024. Confirmation of intent to participate was received from KPMG

and Deloitte, with other firms declining to participate due to independence

and capacity challenges. The Company undertook an RFP to assist

the Audit Committee in making its recommendation to the Board. The

tender process was led by the Audit Committee with assistance from

management. Key personnel were invited to have a series of

management meetings with the RFP participants.

Auditors were invited to submit a final proposal and make a

presentation to the Audit Committee. The proposals were required

tocover the following:

• understanding of the business and industry;

• approach to servicing other geographies;

• understanding of the Company’s overseas geographies,

andtheiraudit approach;

• strength and experience of their team;

• audit approach;

• quality assurance;

• communication and reporting;

• independence;

• implementation; and

• fees.

The Audit Committee evaluated the proposals carefully against set

criteria and received feedback from management meetings.

Appointment or Re-appointment of auditor

At the time of signing of this report, the outcome of the Audit Tender

had not been determined. The Audit Committee will make a

recommendation to the Board on the outcome of the Tender before

the publication of the Notice of Meeting for the Company’s Annual

General Meeting on Wednesday, 13 March 2024 and the appointment

or re-appointment of the Company’s Auditor will be put to shareholder

vote at the Annual General Meeting.

Group’s risk management and internal

control framework

The Board, as a whole, including the Audit Committee members,

considered whether the nature and extent of Safestore’s risk

management framework and risk profile were acceptable in order to

achieve the Company’s strategic objectives. The Board and Committee

were satisfied with the actions being taken by management to remedy

and concerns raised by our internal audit function. As a result, the

Committee considered that the Board has fulfilled its obligations under

the Code. For more information on risk mitigation activities, see the

Principal Risks section of the Strategic Report.

Safestore’s internal controls, along with its design and operating

effectiveness, remain a key priority for the Group and are subject to

ongoing monitoring by the Audit Committee through reports received

from management, along with those from the external auditor. The

Committee, together with management, has continued to maintain

itscomprehensive review of the controls across the business. The

Committee is satisfied that the Company’s control environment

remains robust. The risks and uncertainties facing the Group, and its

internal control processes, are considered in the strategic report on

pages 35 to 40 and on pages 85 and 86.

Internal audit

The Audit Committee has oversight responsibilities for the new internal

audit team, established during the 2023 financial year, which is

responsible for reviewing operational and financial controls at head

office and store level. The Committee has also reviewed the Group’s

risk management framework and its linkage to the inaugural internal

audit plan.

I will be available at the Annual General Meeting to answer any

questions on the work of the Audit Committee.

Ian Krieger

Chair of the Audit Committee

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

Audit Committee report continued

Part A: Annual statement

Dear shareholder

On behalf of the Remuneration Committee (the “Committee”), I am

pleased to provide an overview of our work in relation to both Director

and wider workforce remuneration for the year ended 31 October 2023.

FY2023 has proved to be an extremely busy year for the Committee

with a significant majority of our time spent developing our new 2023

Directors’ Remuneration Policy (the “Policy”). I was delighted to see

that it was positively received by our shareholders, with 97.4% of the

votes in favour and would like to thank all our shareholders and the

investor bodies for their constructive feedback provided through an

extensive engagement process conducted over the year, and for

showing their overwhelming support at our General Meeting (“GM”)

held on 12 July 2023. We will continue to consult with shareholders as

we normalise our Remuneration Policy over the medium term while

ensuring that pay outcomes are closely aligned with corporate

performance and the shareholder experience.

The other key activities undertaken by the Committee during the year

were as follows:

• proactively responded to the 74.7% votes in favour of the 2022

remuneration report during the consultation noted above, as set out

in the Board’s Public Statement dated 29 August 2023;

• considered wider workforce pay policies and practices and

feedback from the workforce panel;

• approved the 2023 salary increase for Executive Directors and

senior managers alongside the wider workforce salary budget;

• agreed annual bonus targets for 2023 and reviewed and approved

the 2023 LTIP grant and the associated performance conditions;

• discussed and approved Executive Director and senior manager

remuneration outcomes for 2023 including measuring the

performance outcomes of the relative TSR element of the 2020 LTIP

award and the EPS element of the 2021 LTIP award;

• reviewed the gender and ethnicity pay gap analysis results and

signed off corresponding actions;

• reviewed and approved the Directors’ remuneration report for 2022/23;

• reviewed and approved the retirement package for the CFO

following the notification to the Board of Andy Jones’ intention to

retire; and

• reviewed the Committee’s terms of reference.

2023 Remuneration Policy

The 2023 Directors’ Remuneration Policy was put to a binding

shareholder vote on 12 July 2023 and took effect immediately upon

conclusion of the GM. It is intended that the new Directors’ Remuneration

Policy will remain in force until the 2026 AGM such that the Remuneration

Policy approval reverts to a normal three-year timeline. There are no

planned changes to the Policy over the period to which it applies.

The Committee determined that it would be appropriate to reposition

the Executive Directors’ total remuneration opportunity, at grant,

available for exceptional performance to the upper quartile of FTSE

250 companies on the basis that:

• the management team is highly regarded by investors;

• the team has had an outstanding track record of performance over

a decade (consistently in excess of the FTSE 250 upper quartile TSR);

• the achievement of significant expansion resulted in increased

complexity with the business now operating across multiple

European countries; and

• Safestore has moved into the upper quartile of companies in the

FTSE 250 by market capitalisation.

As part of the process undertaken by the Committee when designing

the Policy, it carried out an extensive consultation seeking to engage

with around 50 of our largest shareholders as well as investor bodies.

The Committee collated the feedback received and understood that

some areas of the proposals required further consideration to ensure

significant levels of shareholder support. In particular, there was a

desire across our shareholder base for the Company to move to a

more conventional remuneration structure over the medium term,

particularly with regard to the split between base salary and LTIP to

deliver upper quartile total remuneration for exceptional performance.

Therefore, the Committee pledged to move to a conventional

remuneration package over time consisting of a competitive salary,

pension contribution rates in line with the wider workforce, and

incentives award levels (annual bonus and LTIP), each at levels within

the market range for the respective role. The Committee determined

that a phased approach in which salary increases are applied, which

for the avoidance of doubt may be higher than the average workforce

rate, together with reductions in the LTIP opportunity would be the

most appropriate way to achieve the desired structure and ensures

alignment with shareholder expectations, although it did not entirely

rule out a one-off adjustment if the opportunity could arise.

For FY2023, to take into consideration the feedback from many

shareholders regarding the particularly difficult economic environment

and cost of living crisis, the base salary increase for the Executive

Directors was 6%, below the average UK workforce increase of 8.5%.

The maximum LTIP opportunity for the CEO and CFO was 480% and

344% of salary respectively, which included a maximum multiplier of

1.6x, and requires upper decile TSR performance in order to vest in

full. It is the Committee’s intention that the maximum multiplier will

remain at 1.6x for upper decile relative TSR performance, ensuring

that the Committee’s guiding principle of upper quartile total

remuneration for exceptional performance is maintained throughout

the life of the Policy.

“The Company has delivered a year

ofsignificant strategic progress

during2022/23.”

Laure Duhot

Chair of the Remuneration Committee

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Directors’ remuneration report

for the year ended 31 October 2023

Part A: Annual statement continued

2023 Remuneration Policy continued

Our commitment to achieving the goal of a conventional remuneration

structure over time is absolute, although it must be recognised that we

cannot anticipate the remuneration environment accurately and it may

be that our objective is not fully met within this timeframe. It is our

intention, however, that sufficient progress has been made such that,

in principle, a new Policy put to shareholders in 2026 would reflect a

“normalised structure”. If circumstances permit, the Committee may

also seek to accelerate this process over a shorter time frame as

noted above.

On behalf of the Committee, I would like to thank our major

shareholders again for both engaging with our remuneration

challenges and inputting into the remuneration proposals. We were

pleased that a significant majority of our shareholders have shown

their support at the 2023 GM. The Committee remains committed to

ongoing dialogue with the Company’s shareholder base to ensure the

views of all stakeholders are considered and that the correct decisions

are made for the Company. Full details of the 2023 Remuneration

Policy can be found in the Notice of Meeting for the 12 July 2023 GM

which is available on the Company’s website.

Overview of business performance

As set out in this Annual Report, the Board is pleased with Safestore’s

solid financial performance. After two years of outperformance in

which the Group delivered total like-for-like revenue growth as well as

what we believe to be industry leading REVPAF in our key markets,

2023 has been a year of consolidation and strategic progress. Whilst

we have seen some softness in the UK’s business customer segment,

reflective of a weaker macro-economic environment, trading with our

domestic customers and the remainder of business customers has

been resilient.

During the year our strategic progress has been significant. The Group

has opened, acquired, or extended 13 stores (five in the UK, six

inSpain and two in the Netherlands) adding over 500,000 sq ft of

Maximum Lettable Area (“MLA”) to the portfolio. In addition, a pipeline

of a further 1.5 million sq ft across 30 projects has been established

which represents 18% of the existing MLA of the business. A Joint

Venture with Carlyle was established earlier in the year and has

facilitated the Group’s entry into the under-penetrated German market

and the integration of our Benelux business, acquired in 2022, is

nowcomplete.

Looking beyond any short term volatility, there remains a significant

undersupply of quality self-storage capacity across the UK and

Europe. New locations feed awareness which subsequently drives

demand. Safestore’s industry leading business model remains

unchanged and we have significant growth to deliver both from filling

the 1.8m sq ft of fully invested, currently unlet space, and from the

new sites in our pipeline, across major cities in the UK and continental

Europe. Safestore has a proven track record, and the returns we

deliver are significantly ahead of our cost of debt, so we look forward

to the future with confidence.

This continued performance could not have been possible without our

people, whom we pro-actively continue to engage with and develop.

This includes significant training, supporting and incentivising all

colleagues to perform to the best of their ability. We recognise that it is

also critical for our colleagues to feel valued as well as to be paid fairly.

We are exceptionally proud that our commitment to colleagues was

recognised externally in 2021 by the award of the prestigious Investors

in People (“IIP”) Platinum accreditation.

The Company continues to increase base salaries for all colleagues

and Board Directors. I am pleased to report that an average UK

workforce increase of 8.5% was provided to colleagues during 2023,

above the level of increase applied to the Executive and Non-Executive

Directors’ salaries and fees.

2023 performance metrics

The highlights set out above have translated into a solid year for

Safestore. Our 2023 performance can be summarised as follows:

• Group revenue up 5.5% to £224.2 million;

• Underlying EBITDA up 5.3% to £142.2 million;

• Adjusted Diluted EPRA Earnings per Share up 0.8% to 47.9 pence

resulting in 16.6% p.a. growth over the three years to 31 October 2023;

• proposed total dividend in respect of the year to 31 October 2023

up 1% to 30.1 pence per share;

• property pipeline at 31 October 2023 of 1.5 million sq ft of MLA;

• Group occupancy at 31 October 2023 stood at 77%, down 5.1ppts

on 2022, and total occupancy was 6.231 million sq ft, down 1.4%

on2022;

• continued progress made in relation to sustainability including

further reductions in our emissions and exceeding our target whereby

100% of construction waste is diverted away from landfill; and

• maintained EPRA Silver award status.

Despite our share price having fallen somewhat recently, £100 invested

in Safestore in September 2013, when the current management team

took over the business, would be worth £673 as at 31 October 2023,

taking account of share price growth and reinvested dividends.

Thisrepresents outperformance against key competitors and

industrybenchmarks.

Remuneration outcomes for 2023

Base salary increases

The Committee determined, as part of the implementation of the 2023

Policy, to increase the Executive Directors’ salaries by 6% effective

from 1 May 2023 (which was below the UK average workforce

increase rate of 8.5%) resulting in salaries of £481,853 for the CEO

and£343,320 for the CFO.

Pension

Executive Directors’ pension contribution rates continue to be aligned

with the average workforce rate of 4.1% of salary.

Annual bonus outcome

Targets for the 2023 annual bonus set by the Committee were based

two-thirds on adjusted EBITDA (excluding all leasehold rent charges

and adjusted for budgeted exchange rates) and one-third on strategic/

operational measures with a maximum opportunity of 150% of salary.

The Committee confirms that no performance target has been

adjusted in the year for any reason.

Safestore Holdings plc | Annual report and financial statements 2023

Directors’ remuneration report continued

for the year ended 31 October 2023

Given the tough operating environment and the challenging targets set

by the Committee, the Company narrowly failed to meet the adjusted

EBITDA (adjusted for budgeted exchange rates) threshold level of

performance (£142.1 million versus threshold of £144.8 million). On the

basis that the threshold performance level under the EBITDA measure

was not achieved, under the Policy, no payout can be made under the

strategic/operational measures, such that the Remuneration

Committee was not formally required to test achievement under this

element for 2023. However, in line with our commitment to provide

transparency in relation to the strategic/operational bonus element, we

have set out a summary of these measures and their achievement for

2023 in the annual report on remuneration.

On this basis, the formulaic outcome for the 2023 Executive Director

bonus is nil. Despite there being nil annual bonus for the year, the

Committee acknowledged the management team’s excellent

performance, particularly in relation to the strategic progress made

during the year which will create long-term value for our shareholders.

However, the Committee determined that it should not exercise its

discretion to adjust the formulaic bonus outturn as it was aligned with

the shareholder experience over 2023.

Long Term Incentive Plans

2021 LTIP – EPS and Relative TSR element performance

measurement

The performance period of the EPS element of the 2021 LTIP ended

on 31 October 2023; EPS performance accounts for two-thirds of the

award. On that basis, the Committee measured the Company’s EPS

growth and Cash on Cash Return in relation to the underpin over the

three-year performance period. Adjusted Diluted EPRA EPS increased

by 16.6% p.a., significantly ahead of the 8% p.a. growth required for

maximum vesting. The average Cash on Cash Return over the same

period was 11.9% which also exceeded the 8% underpin target

resulting in 100% of the awards being earned under the EPS element

of the 2021 LTIP.

The final vesting level for the 2021 LTIP will not be determined by the

Committee until the vesting date of 28 January 2024, with the balance

of awards subject to the Company’s relative TSR performance

measured over the three-year period ending on 27 January 2024. As

at 31 October 2023, Safestore’s TSR growth is between the median

and upper quartile of the FTSE 250 excluding the Investment Trusts

Index and above the upper quartile of the FTSE 350 Supersector Real

Estate Index, which would equate to around 85% vesting under the

relative TSR measure.

Therefore, the Committee confirms that based on performance to

date, the total 2021 LTIP awards are expected to vest at around

95%of maximum and will consider whether the formulaic outcome

isin linewith underlying Company performance at the vesting date.

The Committee will also review the outcome at the vesting date in

thecontext of the share price at grant to ensure no windfall gains

haveoccurred.

The value of the 2021 LTIP awards expected to vest in January 2024,

plus an estimate of the value of dividend equivalents accrued to 31

October 2023, has been included in the single figure of remuneration

table for 2023 on the basis that the relative TSR performance period

has been substantially completed.

2020 LTIP – Vesting Outcome

As reported in the 2022 remuneration report, the EPS element of the

2020 LTIP representing two-thirds of the awards was earned in full as

at 31 October 2022. The balance of the awards was subject to a

relative TSR measure with a three-year performance period ending on

17 March 2023. On the basis that Safestore’s TSR was significantly in

excess of the upper quartile of both the FTSE 250 excluding Investment

Trusts Index and FTSE 350 Supersector Real Estate Index peer

groups, the formulaic vesting outcome for this element was 100%.

The Committee determined that the formulaic vesting outcome was

aligned with the Company’s underlying performance on the basis that:

• the Group’s profits, as measured by EPS, and its share price had

increased to a similar extent over the performance period; and

• the Group’s financial success had been achieved in parallel with

itreceiving several accolades in relation to its colleague initiatives,

ESG performance, and consistently outstanding customer

feedbackscores.

In line with best practice, the Committee also debated whether any

windfall gains had been received as a result of the 2020 LTIP vesting

and noted that:

• grant price of the award (£6.74) was 54% higher than the grant price

of the previous LTIP award (i.e., the 2017 award) and was only 3%

below the average share price over the twelve months prior to the

grant date;

• had an LTIP grant been awarded in mid-March 2019, the share

price at grant would have been around £6. This would mean that

the grant price of the 2020 LTIP would have been 13% higher; and

• Safestore significantly outperformed peers in terms of TSR over the

performance period.

Taking these factors into consideration, the Committee determined

that participants had not benefited from a windfall gain and therefore,

in line with formulaic outcome, 100% of the 2020 LTIP awards vested

on 18 March 2023. The Executive Directors’ awards are also subject

to a 2 year post-vesting holding period.

Deferred annual bonus

Restricted shares granted in respect of the annual bonus earned

inthe year to 31 October 2020 were subject to a holding period of

2years which ended on 1 November 2022. The number of restricted

shares granted to the CEO and CFO was 13,681 and 9,748 respectively.

2023 LTIP grant

In line with the new Policy set out above, the Committee made a grant

of LTIP awards to the Executive Directors on 12 July 2023. The Base

awards had a face value of 300% and 215% of base salary with a

maximum multiplier of 1.6x such that the overall maximum award

was480% and 344% of salary for the CEO and CFO respectively.

The awards will vest after three years subject to the achievement of

financial and non-financial performance measures: Adjusted Diluted

EPRA EPS growth (65% weighting), aggregate net increase in “MLA”

(25% weighting), and ESG targets (EPC ratings of developments and

refurbishments at A or B and reduction in greenhouse gas emission

intensity with a total of 10% weighting split equally between the 2

measures). The Base awards are combined with a relative TSR multiplier,

and an absolute and relative TSR performance modifier. The awards

will also be subject to a two-year post-vesting holding period.

The Committee will have overriding discretion to change the formulaic

outcome (both downwards and upwards) if it is out of line with the

underlying performance of the Company. This will include an

assessment at vest as to whether any windfall gains have occurred.

Full details of the performance conditions attached to the awards can

be found in the annual report on remuneration on pages 116 and 117.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part A: Annual statement continued

Remuneration outcomes for 2023 continued

Non-Executive Directors’ fees

The Executive Directors recommended to the Board that Non-Executive

Director and Chairman fees should rise by 6% from 1 May 2023 in line

with the increase applied to the Executive Directors’ salaries, and below

the UK average workforce increase rate of 8.5%. As such, Non-Executive

Director base fees have increased to£61,141, Committee Chair fees

have increased to £11,464, and the Chairman’s fee has increased to

£233,200.

Wider workforce pay

Safestore’s pay principles were reviewed during the year and continue

to set out a framework for making decisions on colleagues’ pay.

Reward packages follow a pay-for-skills model and consist of a

combination of fixed and variable elements, including base pay,

performance related pay, annual bonus, pension and benefits. In the

UK, we also operate an annual all-colleague share plan to foster the

culture of ownership, reflecting our remuneration principles by rewarding

colleagues for the successful execution of strategy over a multi-year

horizon. We are delighted that many UK colleagues are enrolled in our

Sharesave scheme, with 36% participating in our most recent scheme.

Participation in the LTIP has also continued to expand with 73 employees

across four countries being granted awards during the year.

The Committee receives remuneration information from across the

Group regarding annual salary reviews, bonus, gender and ethnicity

pay gaps and CEO pay ratios, together with the principles that are

applied in relation to broader incentive schemes, and how these align

with culture. We recognise that it is critical for our colleagues to feel

valued as well as to be paid fairly.

Our approach to colleague engagement through our formal workforce

advisory panel is now fully embedded. Our 15 People Champions

continue to engage directly with the CEO on a wide range of subjects

including remuneration. In addition, the CEO also ran 2 virtual town

hall sessions where colleagues had the opportunity to raise questions,

discuss business issues and provide feedback. Please see the section

on our communication with colleagues for more information.

I am also exceptionally proud that we hold the prestigious Investors in

People (“IIP”) Platinum accreditation in 2021 and we continue to strive

for excellence in this area.

Our 2022 ethnicity pay gap of 7.7% remains above the latest national

ethnicity pay gap of 2.3%

. This gap tells us that there is still an

under-representation of Black, Asian and ethnic minority colleagues in

higher paid roles. We know that, at our sales colleague level, our mean

ethnicity pay gap is 2.2%. However, many of our colleagues have not

yet shared their ethnicity information, which does limit our ability to

see the wider picture. Encouraging our colleagues to disclose their

ethnicity, and addressing any barriers to them doing so, remains a key

focus for us. Our median gender pay gap of 7.9% is significantly below

the UK average of 14.9%

. We currently have more men than women

in senior leadership positions that attract higher levels of pay; this,

therefore, contributes to our gender pay gap. We can see that women

at Safestore are progressing to more senior levels, as the level of

female representation in our upper pay quartiles is up by 3.4ppts

thisyear and has slightly reduced in the lower pay quartile.

We have also published our CEO pay ratio for the fifth time in line

withthe reporting regulations and the Committee notes that it is

significantly lower than in 2021 and 2022, given the 2017 LTIP awards

have now fully vested.

Notes:

1 Ethnicity pay gaps: 2019, ONS.gov.uk.

2 Gender pay gap in the UK: 2022, ONS.gov.uk.

2022 Remuneration report voting outcome

The Committee noted the significant vote against the 2022 annual

report on remuneration, with 74.66% of the votes in favour of the

report. As set out in last year’s Directors’ Remuneration Report, the

Board expected this outcome given previous shareholder engagement

which indicated that some investors who voted against the 2017

Remuneration Policy at its inception had a policy to vote against all

future remuneration reports that disclosed the vesting value of the

2017 LTIP awards. In addition, a number of these shareholders noted

that their vote against the remuneration report did not reflect a vote

against either the management or the Board and that they accept fully

that the payouts reflect the outstanding value creation for all

shareholders over the five-year period from 2017 to 2022.

As set out above, the 2023 Remuneration Policy has received

overwhelming levels of support so the Committee is hopeful that its

execution will be viewed favourably over the coming years.

Executive Director change

As announced on 28 September 2023, Andy Jones has notified the

Board of his intention to retire from the role of Chief Financial Officer

and as a Director of the Company. Andy will continue in his role until

the transition to his successor is complete, and the Company has

commenced an external search for his replacement.

For over ten years, Andy has been instrumental in helping deliver

theCompany’s strategy, significantly expanding its store portfolio and

entering 4 additional geographies. Given that Andy will continue in his

role until the transition to his successor is complete, the Remuneration

Committee determined that it would be appropriate to grant him a

2024 LTIP award to cover this period. In addition, given that Andy is

retiring, he will be treated as a good leaver in accordance with Policy

and the LTIP rules and, in line with best practice, the Committee

determined that his unvested LTIP awards will be pro-rated for time,

with performance testing and vesting occurring on their normal dates.

Andy will also be eligible for a pro-rated bonus for 2024.

Planned activities for 2024

We set out below the activities which the Committee expects to

undertake next year:

• determine the appropriate recruitment and ongoing remuneration

package for the new CFO when appointed;

• implement the new Policy as part of the Committee’s pledge to

move to a conventional remuneration package over time for both

the new CFO and CEO;

• continue the normal oversight of the annual remuneration cycle

including approving Company-wide salary increases, approving the

annual bonus and LTIP performance measures, weightings and

targets, measuring performance against the bonus targets and

determining the vesting outcomes of the relative TSR element of the

2021 LTIP award and the EPS element of the 2022 LTIP award;

• review of senior manager salaries in the context of Executive

Director salaries; and

• review of wider workforce pay policies and practices and feedback

from the workforce panel.

Safestore Holdings plc | Annual report and financial statements 2023

Directors’ remuneration report continued

for the year ended 31 October 2023

Base salary and LTIP award levels for 2024

At the time of writing, the Committee has not determined 2024 salary

and LTIP Award levels. It is anticipated that 2024 salary, LTIP award

levels and performance targets will be finalised before the publication

of the Notice of Meeting for the 2024 AGM. Therefore, to provide

shareholders with full disclosure of the remuneration decisions which

will be voted upon at the AGM, the Committee will provide details of its

decisions in the notes of the 2024 AGM Notice of Meeting. For future

years, the Committee will revert to the usual approach of disclosing

such details in relation to the implementation of Policy in the

annualreport.

Summary

Overall, the Company delivered solid performance during 2022/23

and unfortunately narrowly missed its bonus targets. Although

disappointing, the Committee believes that the 2023 remuneration

outcomes are appropriate and reflective of the shareholder experience.

We will also be asking shareholders to vote in favour of our Directors’

remuneration report at the 2024 AGM; I would welcome any feedback

or comments on this report and look forward to receiving any written

questions ahead of our AGM. You will find details of the conference

facility and how to submit written questions on our website at

www.safestore.co.uk/corporate.

We will continue to engage with shareholders and their representative

bodies on remuneration and other governance matters and thank all

our shareholders for their continued support on remuneration matters.

Finally, I want to recognise that the Company’s performance would not

be possible without the excellence demonstrated by our colleagues.

To all colleagues – thank you for your hard work and commitment to

making Safestore the strong business it remains today.

Approved by the Board on 16 January 2024 and signed on its behalf by:

Laure Duhot

Chair of the Remuneration Committee

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part B: Our remuneration at a glance

Ahead of the annual report on remuneration, we have summarised below the key elements of our current Policy approved at the GM held on

12 July 2023 along with a summary of how we intend to implement the Policy in 2024. The implementation of Policy will be in line with that set

out in the Notice of Meeting from 12 July 2023. We also summarise the key remuneration outcomes for 2023.

Our full Policy can be found on the Safestore website at www.safestore.co.uk.

Summary of our Directors’ Remuneration Policy and planned implementation of Policy for 2024

Element Key features of Policy approved at 2023 AGM Implementation for 2024

Executive Directors Frederic Vecchioli Andy Jones

Base salary Reflects an individual’s responsibilities, experience and role.

Salary increases will normally be applied annually over the life of

the Policy, which for the avoidance of doubt may be higher

than the average workforce rate. This is to rebase fixed pay to

a more market-competitive position allowing a corresponding

reduction in LTIP award levels to achieve a more ‘normalised

remuneration structure’.

Base salary of £481,853.

(6% increase in May 2023).

Base salary of £343,320.

(6% increase in May 2023).

The increases were below the average for the UK

workforce (8.5%). Both salaries remain below both the

FTSE 250 and FTSE 350 Supersector Real Estate Index

lower quartiles.

At the time of writing, the Committee has not determined

the level of salary increase to be applied for2024.

However, to provide shareholders with full disclosure of

the remuneration decisions which will be voted upon at

the AGM, the Committee will set out this information in

the notes of the 2024 AGM Notice of Meeting.

Benefits and

pension

All Executive Directors will receive the average employer

pension contribution rate received by the workforce (currently

4.1% of salary).

Market-competitive benefits package provided.

The Committee would expect to be able to provide other

benefits where appropriate and to adopt benefits such as

relocation expenses, tax equalisation and support in meeting

specific costs incurred by Executive Directors to ensure the

Company and the individuals comply with their obligations in

the reporting of remuneration.

Executive Directors will receive a pension contribution/

cash supplement of 4.1% of salary in line with the

average workforce contribution rate.

Benefits in line with the Policy.

Annual bonus Maximum award equal to 150% of salary per annum.

Performance measures are two-thirds financial and one-third

non-financial, with a financial underpin ensuring no payout

forstrategic/operational element if financial performance is

belowthreshold.

Payout for threshold performance is 20% of maximum and for

target performance is 50% of maximum.

Any bonus in excess of 100% of salary will be held in shares

(referred to hereinafter as restricted shares) on a net of tax

basis, via an agreement with the Executive, until the end of the

two-year period following the financial year in which the bonus

is earned.

For bonus paid in cash, malus applies in the year the bonus

is earned and claw-back operates for three years thereafter.

For restricted shares, malus applies until the end of the

two-year period following the financial year in which the bonus

is earned, and claw-back operates for three years thereafter.

Dividends are payable on restricted shares.

The Committee will continue to have overriding discretion to

change formulaic outcomes (both downwards and upwards) if

they are out of line with underlying performance of the

Company. In addition, the Committee has the discretion to

adjust targets or performance measures for any exceptional

events that may occur during the year.

Maximum opportunity of 150% of salary.

The annual bonus for 2024 will be based on two-thirds

EBITDA (excludes all leasehold rent charges and

non-recurring items) and one-third strategic/operational

measures. There will be no pay-out under non-financial

measures if threshold performance under the financial

measure is not met.

The Board deems the annual bonus targets to be

commercially sensitive. Full details of the 2024 targets

and their achievement will be disclosed retrospectively in

the 2024 Directors’ Remuneration Report. All other

elements of 2024 annual bonus operation will be in line

with the Policy.

Safestore Holdings plc | Annual report and financial statements 2023

Directors’ remuneration report continued

for the year ended 31 October 2023

Element Key features of Policy approved at 2023 AGM Implementation for 2024

Executive Directors Frederic Vecchioli Andy Jones

LTIP LTIP award of nil-cost options over shares on an annual basis

with a three-year vesting and two-year holding period. Dividend

equivalents will be paid on vested shares.

The maximum annual Base award will be up to 300% of

salaryfor the CEO and 215% of salary for the CFO/other

Executive Directors.

The performance measures, weightings and targets for the

Base award will be set each year by the Committee based

onacombination of financial and non-financial measures.

Financialmeasures will not account for less than 65% of the

LTIP opportunity.

The vesting schedule will be such that for the financial

measures, 20% of awards will vest for threshold performance

and 0% of awards will vest for threshold performance for the

non-financial measures.

Vesting of the Base awards can be increased by up to 1.6x

such that the overall maximum award will be up to 480%

and344% of salary for CEO and CFO/other Executive

Directorsrespectively.

Total LTIP award levels will be reduced annually during the

Policy period.

Malus applies up to the vesting date and claw-back applies

during the two-year holding period.

The Committee will have overriding discretion to change

formulaic outcomes of the LTIP awards (both downwards and

upwards) if they are out of line with underlying performance of

the Company. In addition, the Committee has the discretion to

adjust targets or performance measures for any exceptional

events that may occur during the year.

As set out within the new Policy, the Committee

willdetermine the appropriate level of LTIP award to

grantto the CEO and CFO for 2024 to move to a more

conventional remuneration structure, taking into account

the salary increase for 2024.

At the time of writing, the Committee has not determined

the salary increase, and therefore the corresponding 2024

LTIP award levels and associated performance targets.

However, to provide shareholders with full disclosure of

the remuneration decisions which will be voted upon at

the AGM, the Committee will set out this information in

the notes of the2024 AGM Notice of Meeting.

Safestore Holdings plc | Annual report and financial statements 2023

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part B: Our remuneration at a glance continued

Summary of our Directors’ Remuneration Policy and planned implementation of Policy for 2024 continued

Element Key features of Policy approved at 2023 AGM Implementation for 2024

Executive Directors Frederic Vecchioli Andy Jones

LTIP continued

Shareholding

guidelines

In-employment guidelines are 600% and 450% of salary for the

CEO and CFO/other Executive Directors respectively.

Post-employment guideline is 350% of salary on cessation for

two years (or their actual shareholding on cessation if lower than

350% of salary). This excludes shares owned pre-18 March

2020 and awards vesting from the 2017 LTIP.

Chair and Non-Executive Directors

Fees Non-Executive Directors may receive a base fee and

additionalfees for chairing a Committee or being the Senior

IndependentDirector.

The Chairman’s fee: £233,200.

Non-Executive base fee: £61,141.

Committee Chair and SID fee: £11,464.

Non-Executive Director and Chairman fees were

increased by 6% from 1 May 2023 in line with the

increase applied to the Executive Directors’ salaries, and

below the UK average workforce increase rate of 8.5.

Legacy awards

The Company will honour any remuneration related commitments to current and former Executive Directors and Non-Executive Directors

(including the exercise of any discretions available in relation to such commitments) where the terms were agreed and/or commitments made in

accordance with any previous Remuneration Policy of the Company. Such payments or awards will be set out in the Annual Report on

Remuneration in the relevant year. For the avoidance of doubt, it is noted that Executive Directors are eligible to receive payment under any

award made prior to the approval and implementation of the new Remuneration Policy set out in this report.

Safestore Holdings plc | Annual report and financial statements 2023

100

Directors’ remuneration report continued

for the year ended 31 October 2023

Business performance and incentive outcomes in 2023

KPI Measured in 2023 performance 2023 incentive outcome

Underlying EBITDA in 2023 Annual bonus 5.3% increase to £142.2 million.

Adjusted Diluted EPRA

Earnings per Share growth

over three years to 31 October

2023

2021 LTIP 58.6%, i.e. 16.6% per annum.

TSR growth over three years

to17 March 2023

2020 LTIP Safestore = 34.2%.

Upper quartile of:

• FTSE 250 Index excluding Investment Trusts = 21.6%; and

• FTSE 350 Supersector Real Estate Index = -7.3%.

Optimisation of performance

of existing portfolio

Annual bonus As an Investors in People Platinum accredited organisation, our

focus on our colleagues and culture has enabled us to continue

to deliver sustainable business performance.

The time spent on training across the business was over

28,000hours. Other highlights include:

• Developed a fully online booking and contracting process and

commenced testing and iteration.

• Developed a Construction Analytics function, delivering

improved construction cost control across the Group.

• Developed and integrated multiple technologies to enable

ourfirst fully unmanned stores.

• Expansion of acquisition teams to grow store portfolio.

Strong and flexible

capitalstructure

Annual bonus The Company’s strong capital structure continued to allow it to

take advantage of opportunities across the Group in order to

deliver incremental earnings growth over the longer term.

Highlights included:

• On 11 November 2022, the Group completed the refinancing

of its RCFs which were due to expire in June 2023. The

previous £250 million Sterling and €70 million Euro RCFs

were replaced with a single, unsecured four-year £400 million

multi-currency revolving facility. In addition, a further £100

million uncommitted accordion facility is incorporated in the

facility agreement, which increases funding capacity, allowing

us to continue to consider strategic, value-accretive

investments as and when they arise. The facility is for a

four-year term with two one-year extension options

exercisable after the first and second years of the agreement.

• Group leverage was below the Group’s strategic targeted

level of an LTV ratio of between 30–40% (25.4% for 2023).

Take advantage of selective

portfolio management and

expansion opportunities

Annual bonus Joint Venture to enter the German market. Started with 7leasehold

stores but since acquired the freehold of one of the stores and

exchanged contracts on 2 further freeholdopportunities.

Acquired new development opportunities in the UK, Spain and

the Netherlands, in addition to opening new stores and

completing store extensions in various locations.

ESG Annual bonus Continued external recognition of ESG achievements and

disclosures through the following:

• EPRA Sustainability BPR Silver Award

• GRESB Public Disclosure A

• MSCI ESG ‘AA’

• Support the Goals – 5*

Key:

Threshold or below Threshold to target Target to maximum

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101

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part B: Our remuneration at a glance continued

Business performance and incentive outcomes in 2023 continued

This resulted in the following incentive outcomes:

• On the basis that the threshold EBITDA performance level was narrowly missed, there will be no payout under the financial element of the

bonus. In line with the Policy, the payout from the strategic/operational element, is also set to nil as the EBITDA threshold financial gateway has

not been met.

• Although disappointing, the Committee determined that this formulaic outcome was representative of the shareholder experience over the

year and as a result, the 2023 annual bonus payout for the Executive Directors is nil.

• The performance period of the relative TSR element of the 2020 LTIP, which accounts for one-third of the award, ended on 17 March 2023.

Safestore’s performance being in excess of the upper quartile of both peer groups, combined with satisfying the Cash on Cash Return

underpin, resulted in the performance targets under this element being met in full. Therefore, taking account of the EPS element which also

fully vested representing two-thirds of the award, the final vesting level for the 2020 LTIP was determined by the Committee to be 100%.

• The Committee believes that the awards that vested in March 2023 for the Executive Directors and their colleagues are commensurate with

the corporate success that the Company achieved over the three-year performance period (as set out on pages 94 and 95 of the

Remuneration Committee Chair’s annual statement and the annual report on remuneration).

• The performance period of the EPS element of the 2021 LTIP ended on 31 October 2023; EPS performance accounts for two-thirds of the

award. On that basis, the Committee measured the Company’s EPS growth and Cash on Cash Return in relation to the underpin over the

three-year performance period. Adjusted Diluted EPRA EPS increased by 16.6% p.a., significantly ahead of the 8% p.a. growth required for

maximum vesting. The average Cash on Cash Return over the same period was 11.9% which also exceeded the 8% underpin target.

Therefore, the formulaic outcome of this element is that 100% of the awards have been earned.

• The final vesting outcome for the 2021 LTIP will not be determined by the Committee until the vesting date of 28 January 2024, with the

balance of awards earned being subject to the Company’s relative TSR performance measured over the three-year period ending on

27January 2024. As at 31 October 2023, Safestore’s TSR growth is between the median and upper quartile of the FTSE 250 excluding

Investment Trusts and above the upper quartile of the FTSE 350 Supersector Real Estate Index peer groups, which would equate to 85% of

maximum vesting. Therefore, the Committee confirms that based on current performance and taking account of the EPS element, it expects

the awards to vest at around 95% of maximum and will consider whether the formulaic outcome is in line with underlying Company

performance at the vesting date.

• The Committee is comfortable that the Policy operated as intended and that the overall 2023 remuneration earned by the Executive Directors

was appropriate.

Remuneration in the wider context

Context to our Executive Director remuneration in light of wider workforce considerations:

• The wider workforce predominantly has access to competitive bonus arrangements, can participate in all-colleague share plans and/or

recognition schemes and is eligible to be auto-enrolled into the Safestore Group Personal Pension Plan.

• The wider workforce pay principles have been reviewed, leading to further increases in salaries and benefits, including an average UK

workforce salary increase of 8.5% during the year.

• Continued alignment of Executive Director and general workforce pension contributions.

• Participation in our Sharesave scheme remained well above typical levels at 38%.

• Safestore’s 2022 UK median gender pay gap is 7.9% and 2022 median ethnicity pay gap is 7.7%.

Safestore Holdings plc | Annual report and financial statements 2023

102

Directors’ remuneration report continued

for the year ended 31 October 2023

Part C: Annual report on remuneration

The 2023 annual report on remuneration contains the details of how the Company’s Policy was implemented during the financial year ended

31October 2023. An advisory resolution to approve this report and the Remuneration Committee Chair’s annual statement will be put to

shareholders at the 2024 AGM.

Pay fairness

To attract and retain the highest calibre individuals, we aspire to become the employer of choice within our sector, maintaining a competitive

reward package that balances fairness to the colleague with the responsible use of shareholders’ funds.

We review our pay principles, which set out a framework for making decisions on colleagues’ pay, annually. The aim is to:

• support the recruitment and retention of high quality colleagues;

• enable us to recognise and reward colleagues appropriately for their contribution;

• help to ensure that decisions on pay are managed in a fair, just and transparent way; and

• create a direct alignment between Company culture and our reward strategy.

As part of our commitment to fairness, we have set out further information about our colleague offering. The various factors which make up our

colleague value proposition are set out below:

Pay and benefits

• We pay all our colleagues above the over-23 National Living Wage

rate, regardless of their age. The average annual salary for our store

sales colleagues is £25,445, over £3,771 above the current National

Living Wage for an over-23 year old on a 40-hour contract.

• All our sales colleagues are eligible for our performance-based

monthly bonus scheme and can earn up to 50% of their monthly

salary. Our Head Office colleagues are eligible to receive a

discretionary annual bonus, which is calculated against business

targets and objectives.

• Colleagues can join our Sharesave scheme on an annual basis for a

fixed three-year term. Membership for our 2023 offering was 36% of

the eligible population.

• Under the 2023 LTIP, 73 key colleagues were invited to participate,

allowing them to share in the success of the Company. The

performance conditions for below Board-level colleagues are the

same as those for the Executive Directors.

• All eligible colleagues are auto-enrolled into the Safestore Group

Personal Pension Plan provided through Aviva with a minimum

employer contribution rate of 4% of salary.

• Additional benefits include private healthcare cover, healthcare cash

plan, discounted gym membership, life insurance from day one of

employment, paid holiday allocation and a Cycle to Work scheme.

• Our family friendly policy means we offer new mothers twelve weeks’

full pay and new fathers 2 weeks’ full pay, as well as sending new

parents a beautiful gift when their child is born.

Working environment

• Our leadership teams have created an environment where our

managers and leaders are provided with the skills, tools and,

crucially, time to dedicate to their teams. This has been achieved

through maintaining good colleague–manager ratios; for example,

no Regional Manager oversees more than 12 stores.

• Our ‘Make the Difference’ people forum, launched in 2018, is a

formal workforce advisory panel which enables frequent

opportunities for us to hear and respond to our colleague voice. We

drive change and continuous improvement in responding to the

feedback we receive, via our internal communications channels and

through our network of People Champions.

• We have a comprehensive Colleague Assistance programme where

our teams can find guidance on coping strategies. They can speak

to a professional who is ready to support and guide them through

any concerns they have; in addition, for those who need it, they can

access up to 5 counselling sessions.

• We support a healthy work–life balance through offering a Company

sick pay scheme and encouraging all team members to take their rest

breaks. We welcome and consider all requests for flexible working

and at-home working, where appropriate.

• We know our people as individuals, and show respect for each other,

enabling everyone to have a voice so that they can bring their full,

unique selves to work.

• We are committed to providing an inclusive workplace and

encouraging and welcoming diversity with zero tolerance of

harassment and discrimination. More detail can be found in our

People Principles document online.

• Our strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion

atSafestore.

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Part C: Annual report on remuneration continued

Pay fairness continued

Development opportunities

• We have built an environment where it’s natural for us to give regular,

honest feedback and to coach in the moment. We go beyond

mandatory training to promote life-enhancing learning where

everyone can continually evolve.

• In 2023, we invested over 28,000 hours into developing our people.

From online learning modules to face-to-face sales training, every

one of our colleagues can take part in structured learning.

• We offer health and safety training including first aid, forklift and

firesafety.

• Our Store Manager Development programmes offer the opportunity

to gain a nationally recognised qualification from either the Institute of

Leadership & Management (“ILM”) or the Chartered Management

Institute (“CMI”) utilising the Apprenticeship Levy.

• Our Senior Leadership Development programme ‘LEAD Academy’

supports a Level 5 Management and Leadership apprenticeship.

• Furthermore, our Graduate programme provides an opportunity for

newly qualified graduates to build their skill set and experience into a

career with Safestore.

Recognition

• We recognise great performance and behaviours through our

annual appraisal process.

• Our values, created by our store teams, are at the heart of

everything the organisation does.

• The values are accompanied by a set of behaviours and everyone is

assessed against these every 6 months.

• Our annual pay review/bonus schemes are based on individual

performance ratings.

• We also reward our sales consultants for completion of training

modules through a pay-for-skills approach.

Informing the Committee on the wider workforce

To build the Remuneration Committee’s understanding of reward arrangements applicable to the wider workforce, the Committee is provided

with data on the remuneration structure for management level tiers below the Executive Directors and pay outcomes for these roles, as well as

comparable benchmarking information. The Committee also reviews feedback from the formal workforce advisory panel, in addition to the

Investors in People survey, which provides further context in relation to pay and conditions throughout the organisation and supports the

Committee in making decisions on future pay outcomes in line with the Policy. The Committee uses this information to ensure consistency and

fairness of approach throughout the Company in relation to remuneration.

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Directors’ remuneration report continued

for the year ended 31 October 2023

Alignment with Provision 40 of the Corporate Governance Code and Company strategy

The table below sets out how the current Policy addresses the factors in Provision 40 of the Corporate Governance Code, the objective of which

is to ensure that the remuneration arrangements operated by the Company are aligned to all stakeholder interests including those of shareholders.

Factor How this was addressed in the Remuneration Policy

Clarity

Remuneration arrangements should be transparent and promote

effective engagement with shareholders and the workforce.

This was addressed through our commitment to full transparency and

engagement with our shareholders in relation to the Policy.

The Company engages directly with the broader colleague population on

their remuneration through a variety of methods including the workforce

advisory panel and town hall events led by the CEO.

Simplicity

Remuneration structures should avoid complexity and their rationale and

operation should be easy to understand.

Taking on board shareholder feedback, we designed a new LTIP for our

2023 Policy which is well understood by shareholders who inputted on its

construct throughout the extensive shareholder consultation process.

Risk

Remuneration arrangements should ensure reputational and other risks

from excessive rewards, and behavioural risks that can arise from

target-based incentive plans, are identified and mitigated.

Identified risks have been mitigated as follows:

• deferring an element of bonus into shares and requiring a two-year

holding period for LTIP share awards helps ensure that the

performance related awards are sustainable and thereby discourages

short term behaviours;

• aligning any reward to the agreed strategy of the Company;

• reducing the awards or cancelling them through malus and claw-back

provisions if the behaviours giving rise to the awards are

inappropriate; and

• reducing annual bonus or LTIP awards or cancelling them, if it

appears that the criteria on which the awards were based do not

reflect the underlying performance of the Company.

Predictability

The range of possible values of rewards to individual Directors and any

other limits or discretions should be identified and explained at the time

of approving the Policy.

The Remuneration Policy in the 2023 Notice of General Meeting sets out

the potential remuneration available in several performance scenarios.

The Committee is comfortable that the discretions available to it as set

out in the current Policy are sufficient.

Proportionality

The link between individual awards, the delivery of strategy and the long

term performance of the Company should be clear. Outcomes should

not reward poor performance.

One of the key strengths of the current approach of the Company to

remuneration is the direct link between strategy and the value received by

Executive Directors.

Please see the schematic below which sets out in detail the link

betweenCompany strategy and the performance measures in the

currentincentive arrangements.

Alignment to culture

Incentive schemes should drive behaviours consistent with Company

purpose, values and strategy.

The LTIP rewards long term sustainable performance which is a key

tenetof the Company’s strategy, purpose and values as set out in our

sustainability report on page 44.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

LTIP

Optimising the trading

performance of existing portfolio

Maintaining a strong and

flexiblecapital structure

Selective portfolio management

and expansion opportunities

What does success look like?

How do we measure progress against our objectives?

• First-class digital marketing

expertise

• Motivated and effective store teams

benefiting from improved training

and coaching

• Central revenue management and

cost control

• A capital structure appropriate for

our business

• Flexibility to take advantage of

carefully evaluated development and

acquisition opportunities

• Successful store openings

• Strong pipeline for future openings

• External recognition of ESG efforts

• Independent customer

servicesurvey

• People engagement survey results

• Assessment of online

marketingenhancement

• Occupancy management

enhancement

• Free cash flow

• Key capital cover ratios

• Increased ability to pay dividends

• Successful store openings on

time/budget

• Strong pipeline for future openings

• Increased portfolio valuation

• Continued successful execution of strategy should lead to shareholder value creation measured over three years by Adjusted

EPRA EPS growth, increase in net MLA, progress against our ESG strategy and TSR relative to FTSE 250 and sector peers

All feed through to KPI = EBITDA growth

Annual

bonus

Strategic and

operational

Financial

Part C: Annual report on remuneration continued

Pay fairness continued

Alignment with Provision 40 of the Corporate Governance Code and Company strategy continued

In line with the proportionality factor from Provision 40 of the Corporate Governance Code set out above, the Committee designed the incentive

arrangements such that they were closely aligned with Company strategy as set out in the schematic below:

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Directors’ remuneration report continued

for the year ended 31 October 2023

Pay relativities

Internal – CEO pay ratio

Our CEO to colleague pay ratios for 2023 are set out in the table below. We also provide the 2019–2022 data for comparison purposes.

Financial year Method used 25th percentile pay ratio 50th percentile pay ratio 75th percentile pay ratio

2019 Option B (gender pay

gap data)

60:1

Total pay and benefits: £19,067

Salary: £17,197

55:1

Total pay and benefits: £20,669

Salary: £18,175

37:1

Total pay and benefits: £31,278

Salary: £25,029

2020 Option B (gender pay

gap data)

49:1

Total pay and benefits: £22,820

Salary: £18,500

41:1

Total pay and benefits: £27,244

Salary: £24,240

32:1

Total pay and benefits: £34,857

Salary: £30,852

2021 Option A 554:1

Total pay and benefits: £23,502

Salary: £19,540

500:1

Total pay and benefits: £26,019

Salary: £19,540

365:1

Total pay and benefits: £35,686

Salary: £28,829

2022

Option A 349:1

Total pay and benefits: £24,031

Salary: £20,300

312:1

Total pay and benefits: £26,849

Salary: £21,100

227:1

Total pay and benefits: £36,939

Salary: £30,556

2023 Option A 53:1

Total pay and benefits: £24,866

Salary: £22,200

48:1

Total pay and benefits: £27,499

Salary: £22,700

36:1

Total pay and benefits: £37,270

Salary: £34,500

Note:

1 2022 ratios have been updated in line with the restated CEO single figure of remuneration for 2022.

Since 2021, the Company has chosen methodology Option A for the calculation, which takes into consideration the full-time equivalent basis of

all UK employees and provides a representative result of employee pay conditions across the Company. In 2019 and 2020, the Company used

methodology Option B. However, given the guidance by several shareholders that Option A is preferred, we updated our methodology to

maintain market best practice disclosures.

The CEO remuneration figure is as shown in the Executive Directors’ remuneration table on page 110. The remuneration figures for the employee

at each quartile were determined as at 31 October 2023. Each colleague’s pay and benefits were calculated using each element of employee

remuneration, consistent with the CEO, pro-rated to be on a full-time equivalent basis. This therefore included the following elements of pay:

• base salary;

• private medical insurance;

• car/car allowance;

• fuel allowance;

• employer pension contribution;

• annual bonus;

• overtime and extra pay;

• 2021 LTIP (including estimate of relative TSR element); and

• Sharesave.

No components of pay have been omitted. The following estimates and adjustments were made:

• For new joiners, salary and benefits were annualised and bonus was calculated based on average payout for the relevant store.

• For colleagues on the annual bonus scheme, awards were estimated based on expected outcomes.

• Adjustments were made to achieve full-time equivalent rates.

The Committee notes that the 2023 median ratio is lower than in 2021 and 2022 due to the CEO’s single figure of remuneration being significantly

lower than in those years. This is because the 2021 LTIP payouts are expected to be significantly lower than those of the 2017 LTIP, given the

reduced award levels. The Committee notes that the 75th percentile employee is below the seniority to receive a 2020 or 2021 LTIP award and

therefore payouts to c. 70 participants do not get captured within this ratio.

The above analysis demonstrates that the ratio is driven by the different structure of our CEO’s pay versus that of our colleagues, as well as the

composition of our workforce. This ratio varies between businesses even in the same sector. What is important from our perspective is that this

ratio is influenced only by the differences in structure, and not by divergence in fixed pay between the CEO and the wider workforce.

The Committee considers the 50th percentile pay ratio to be consistent with pay and progression policies for UK colleagues.

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Part C: Annual report on remuneration continued

Pay relativities continued

Diversity pay gap reporting

We are committed to providing an inclusive workplace and encouraging and welcoming diversity with zero tolerance of harassment and

discrimination. More detail can be found in our People Principles document (which can be found in the governance section of our website).

Building a diverse and inclusive workplace is a top priority for us. Our already strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion at Safestore. Our new Diversity and Inclusion Strategy is about embedding

and continuing the important work we’ve already done to enable all our colleagues to feel confident to bring their full, unique selves to work.

At Safestore, all colleagues are paid equally for doing the same or similar work. Our bonus schemes are open to all job levels and colleagues at

the same level have the same bonus opportunity.

This year we were pleased to publish our first ever Diversity Pay Gap Report, which includes ethnicity and gender data. We have chosen to

voluntarily report on our ethnicity pay data, because we believe this is an important step on our diversity and inclusion journey. We know there is

still work to do to reduce our pay gaps. Our ethnicity pay gap of 7.7% remains above the latest national ethnicity pay gap of 2.3%

. This gap tells

us that there is still an under-representation of Black, Asian and ethnic minority colleagues in higher paid roles. However, many of our colleagues

have not yet shared their ethnicity information, which does limit our ability to see the wider picture. Encouraging our colleagues to disclose their

ethnicity, and addressing any barriers to doing so, remains a key focus for us. Our median gender pay gap of 7.9% is significantly below the

UKaverage of 14.9%

. We currently have more men than women in senior leadership positions that attract higher levels of pay; this, therefore,

contributes to our gender pay gap. We also know that women are under-represented in some industries from which we recruit, such as property

and construction.

Highlights include:

• Our median gender pay gap of 7.9% is significantly below the UK average of 14.9%

• We can see that women at Safestore are progressing to more senior levels, as the level of female representation in our upper pay quartiles is

up by 3.4ppts this year and has slightly reduced in the lower pay quartile.

• We know that, at our sales colleague level, our mean ethnicity pay gap is 2.2%

Notes:

1 Gender pay gap in the UK: 2022, ONS.gov.uk.

2 Ethnicity pay gaps: 2019, ONS.gov.uk.

Remuneration justification

The Committee is comfortable that the internal and external pay relativity reference points provide justification that the new Policy is appropriate,

as set out in the Chairman’s statement.

Communication with colleagues

During the year, we communicated with colleagues and gathered their feedback in a number of ways as set out below:

Workforce advisory panel: As set out in the Committee Chair’s statement, in 2018 the Company established a formal workforce advisory panel

to facilitate engagement with colleagues. The panel has now been successfully embedded in the business. Our 15 People Champions have

continued to engage directly with the CEO across a wide range of subjects including remuneration. Appropriate feedback from these sessions

was presented to the Remuneration Committee, which the Committee considered when determining the remuneration levels for Executive

Directors in 2023. In addition, over the past few years feedback from the panel has resulted in the Remuneration Committee and Board

approving improved colleague benefits such as enhanced Company sick pay, improved healthcare provision, and more frequent opportunities to

participate in all-colleague share schemes.

CEO town hall events: The CEO also ran 2 virtual town hall sessions where colleagues had the opportunity to raise questions, discuss business

issues, and provide feedback on subjects including remuneration. As part of these events, colleagues were engaged on how the Executive

Directors’ Remuneration Policy aligned with the wider Company pay policy.

Colleague survey: Our management team and the workforce advisory panel reviewed the recommendations from our 2021 Investors in People

colleague survey, establishing improvements made and agreeing further actions with the aim of maintaining our leadership engagement score of

over 90%.

Communication with shareholders

The table below shows the results of the latest shareholder votes on the Directors’ remuneration report and Policy resolutions:

Votes for % Votes against % Votes withheld

2023 AGM vote on annual report on remuneration 140,636,482 74.66 47,726,385 25.34 354,337

2023 GM vote on Remuneration Policy 178,517,273 97.40 4,769,130 2.60 2,815,021

Please refer to the Chairman’s statement which sets out the shareholder engagement undertaken by the Committee over the past year in relation

to our remuneration strategy. The Committee was delighted to see that the 2023 Remuneration Policy was positively received by our

shareholders and would like to thank all our shareholders and the investor bodies for their constructive feedback provided through an extensive

engagement process conducted over the year, and for showing their overwhelming support at our General Meeting.

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Directors’ remuneration report continued

for the year ended 31 October 2023

Chief Executive Officer and colleague pay

Total shareholder return and Chief Executive Officer pay over the last ten years

The chart shows the performance of a hypothetical investment of £100 in ordinary shares (as measured by the TSR for the Company) against the

FTSE 250 and FTSE 350 Supersector Real Estate Index over a period of ten financial years starting from 31 October 2013 through to 31 October

2023. The FTSE 250 has been selected as an appropriate comparison index due to Safestore’s ranking within the FTSE in terms of market

capitalisation. The FTSE 350 Supersector Real Estate Index has been selected as an appropriate comparator group as its major sector

competitors are constituents of this index.

The chart also shows the increase in Adjusted Diluted EPRA (“ADE”) Earnings per Share from 31 October 2013 onwards (see right-hand scale).

Total shareholder return and Adjusted Diluted EPRA (“ADE”) Earnings per Share (pence)

1,10 0

1,000

900

800

700

600

500

400

300

200

100

31/10/2013 31/10/2014 31/10/2015 31/10/2016 31/10/2017 31/10/2018 31/10/2019 31/10/2020 31/10/2021 31/10/2022 31/10/2023

Safestore Holdings plc FTSE 250 Index FTSE 350 Supersector Real Estate Index ADE EPS

TSR Value (£)

The chart also illustrates that the sustained EPS growth has resulted in significant TSR outperformance which is reflected in the bonus payouts

and vesting of the long term incentive awards over several years.

Oct 2014 Oct 2015 Oct 2016 Oct 2017 Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022 Oct 2023

F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli

Role CEO CEO CEO CEO CEO CEO CEO CEO CEO CEO

Single figure of total

remuneration (£’000) 973 1,224 1,481 1,728 1,719 1,134 1,108 13,020 8,385 1,325

Annual bonus

payout (% of max) 76% 100% 100% 82% 81% 91% 100% 100% 100% 0%

LTIP earned

(%ofmax) 96% 100% 100% 100% 100% n/a n/a 100% 100% 95%

Note:

1 Estimated outcome as at 31 October 2023.

ADE EPS (pence)

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part C: Annual report on remuneration continued

Pay relativities continued

Percentage change in Executive Director, Non-Executive Director and colleague remuneration

The table below shows the percentage change in remuneration of the Directors undertaking the roles of Chief Executive Officer, Chief Financial

Officer and Non-Executive Directors, together with average pay of the Company’s colleagues in the listed entity on a full-time equivalent basis.

% change from 2022 to 2023 % change from 2021 to 2022 % change from 2020 to 2021 % change from 2019 to 2020

Base

salary/

fees Benefits

Annual

bonus

Base

salary/

fees Benefits

Annual

bonus

Base

salary/

fees

Benefits

Annual

bonus

Base

salary/

fees Benefits

Annual

bonus

F Vecchioli (CEO) 5% 3% (100)% 4% (3%) 3% 3% 0% 5% 1% 0% 11%

A Jones (CFO) 5% 5% (100)% 4% 2% 3% 3% 0% 5% 1% 0% 11%

D Hearn (NE Chair)

12% n/a n/a 10% n/a n/a 19% n/a n/a n/a n/a n/a

I S Krieger (NED) 5% n/a n/a 19% n/a n/a 22% n/a n/a 1% n/a n/a

G van de Weerdhof

(NED)

5% n/a n/a 14% n/a n/a 175% n/a n/a n/a n/a n/a

L Duhot (NED)

15% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

D Mousseau (NED)

5% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

J Bentall (NED)

127% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

A Darzins

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Colleague pay 8.5% 0% (100)% 6.9% 0% 8.8% 4.2% 0% 20% 2.3% 0% 19%

Notes:

1 The increases in 2021 to Non-Executive Director fees are a result of the increase to the base fee and Committee chairmanship fees and the Company starting to pay a Senior Independent

Director fee of £10,500. All increases were effective 1 May 2021.

2 The Chairman was appointed on 1 December 2019 so received a pro-rated fee for 2020.

3 G van de Weerdhof was appointed on 1 June 2020 so received a pro-rated fee for 2020.

4 L Duhot was appointed as an independent Non-Executive Director on 1 November 2021.

5 D Mousseau was appointed as an independent Non-Executive Director on 1 November 2021.

6 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022 so received a pro-rated fee for 2022.

7 A Darzins was appointed as an independent Non-Executive Director on 1 September 2023 so received a pro-rated fee for 2023.

8 F Vecchioli received dental insurance for two-twelfths of the year only.

Relative importance of spend on pay

The table below sets out the overall spend on pay for all colleagues compared with the returns distributed to shareholders.

Significant distributions

2023 2022 % change

Colleague costs (£’m) 30.0 38.1 (21.3)%

Distributions to shareholders in the form of shareholder dividends and share buybacks (£’m) 65.9 56.9 15.8%

Notes:

1 The above figures are taken from notes 10 and 26 to the financial statements.

2 The reduction is due to lower share-based payments and bonus awards in 2023.

Executive Director remuneration for the year ended 31 October 2023

Single figure remuneration table (audited)

The remuneration of Executive Directors showing the breakdown between components with comparative figures for the prior financial year is shown below.

Base salary

£’000

Taxable

benefits

£’000

Annual

bonus

£’000

Long term

incentives

3,4

£’000

Pension

£’000

Other

£’000

Total

£’000

Total fixed

remuneration

£’000

Total variable

remuneration

£’000

F Vecchioli (Chief

Executive Officer)

2023 468 24 0 814 19 0 1,325 511 814

2022 448 23 682 7,195 18 19 8,385 489 7,896

A Jones (Chief

Financial Officer)

2023 334 20 0 580 14 0 948 368 580

2022 319 19 486 4,860 13 19 5,716 351 5,365

Notes:

1 Taxable benefits comprise a car allowance, private medical and dental insurance.

2 The 2022 annual bonus figures include the portion subject to deferral into restricted shares.

3 The 2023 figure is the outcome of the 2021 LTIP noting that the performance period for the TSR element will end on 27 January 2024, i.e. it has been substantially completed and therefore an

estimate of the vesting of this element has been included. The 2021 LTIP outcome has been valued based on the three-month average share price to 31 October 2023 of £7.82 and includes

dividend equivalents accrued from the date of grant to 31 October 2023. Please see page 116 for further detail on the amount of the LTIP value attributable to share price appreciation.

4 The 2022 figure is the aggregate of the outcomes under the 2017 LTIP relative TSR element and the 2020 LTIP (which has been restated). The 2017 LTIP relative TSR element is valued as

at the vesting date, i.e. based on the closing share price on 29 September 2022 of £7.94, and includes dividend equivalents of £0.9665 per share accrued from the date of grant to the

date of vest. The 2020 LTIP is valued as at the vesting date, i.e. based on the closing share price on 18 March 2023 of £9.45, and includes dividend equivalents accrued from the date of

grant to the date of vest. Please see page 116 of the 2022 DRR for further detail on the amount of the 2017 LTIP values attributable to share price appreciation.

5 The pension contribution rate is 4.1% of salary in line with the average workforce pension contribution. No Executive Directors participate in a Group defined benefit or final salary pension scheme.

6 The other column refers to maturity of the 2019 (3YR) Sharesave awards. The value for 2022 has been calculated as the gain in excess of the 510 pence exercise price at the maturity date

of 1 September 2022.

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Directors’ remuneration report continued

for the year ended 31 October 2023

Annual bonus outcomes for the financial year ended 31 October 2023 (audited)

For 2023, the Executive Directors had a maximum annual bonus opportunity of 150% of salary. For each Executive Director, the 2023 annual

bonus measures were weighted two-thirds for adjusted EBITDA (excludes all leasehold rent charges and non-recurring items) and one-third for

strategic/operational measures.

Given the tough operating environment and the challenging targets set by the Committee, the Company narrowly failed to meet the adjusted

EBITDA threshold level of performance such that there will be no payout under the financial element of the bonus. Under the Policy, on the

basisthat the threshold performance level under the EBITDA measure was not achieved, no payout can be made under the strategic/operational

measures, such that the Remuneration Committee was not formally required to test achievement under this element for 2023. However, in line

with our commitment to provide transparency in relation to the strategic/operational bonus element we have set out below a summary of these

measures and their achievement for 2023 in addition to details of the targets and actual performance for the EBITDA measure and resulting

bonus payment for each Executive Director.

Performance required

Actual performance

CEO

CFO

Measure Weighting

Threshold

(20% payout)

On target

(50% payout)

Maximum

(100% payout) Actual

% of element

payable

Achievement as

% salary

Bonus value

£’000

Achievement as

% salary

Bonus value

£’000

Adjusted

EBITDA

Two-

thirds

£144.8m £149.2m £152.2m £142.1m 0% 0% 0 0% 0

Strategic/

operational

measures

One-

third

Objectives based on

strategic/operational

See below 0% 0% 0 0% 0

Total bonus achieved in 2023 0% 0 0% 0

Note:

1 Adjusted EBITDA excludes all leasehold rent charges and non-recurring items, and is equivalent to the reported EBITDA in the financial statements with European results translated at the

budget Euro exchange rate of 1.15.

2023 annual bonus outcomes: strategic objectives

The Group’s proven strategy remains unchanged. We believe that the Group has a well-located asset base, management expertise,

infrastructure, scale and balance sheet strength to exploit the current industry dynamics. As we look forward, we consider that the Group has the

potential to further increase its EPS by: optimising the trading performance of the existing portfolio; maintaining a strong and flexible capital

structure; and taking advantage of selective portfolio management and expansion opportunities. Therefore, the Executive Directors’ strategic/

operational objectives reflect the Company’s priorities in these areas for 2023 as well as the Company’s ESG performance.

Objective Achievement Outcome

Optimisation of performance of existing portfolio (20% of salary)

Enhancing people

performance through

engagement and

improved capabilities in

order to increase

conversion of enquiries

into new lets.

As an Investors in People Platinum accredited organisation, our focus on our colleagues

and culture has enabled us to continue to deliver sustainable business performance.

Highlights included:

• continuing to prioritise the health and wellbeing of our colleagues and our customers;

• increasing the number of hours spent on training across the business to over 28,000;

• recruiting additional key roles to support the business for future growth; and

• making 18 internal promotions from 2022 to 2023.

Enhance website

performance to drive

new lets and marketing

spend in line with

budgeted expectations.

Delivered improvements to current website platforms:

• onboarded Germany to Safestore Web platform;

• developed a fully online booking and contracting process and commenced testing

anditeration;

• revamped store pages;

• tested alternative marketing attribution model; and

• identified technology and development partner for next iteration of website

platform(FY24).

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

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Part C: Annual report on remuneration continued

2023 annual bonus outcomes: strategic objectives continued

Objective Achievement Outcome

Optimisation of performance of existing portfolio (20% of salary) continued

Leverage Group

knowledge, experience

and resources to

improve productivity

anddrive efficiencies.

Highlights included:

• full pricing model rolled out to all territories including Germany;

• three-way contracts rolled out to new geographies after successful development

intheUK;

• development of a Construction Analytics function, delivering improved construction

cost control across the Group;

• transitioned IT support for all territories to our internal, centralised and multi-lingual

ITsupport team;

• developed and integrated multiple technologies to enable our first fully

unmannedstores; and

• expansion of acquisition teams to grow store portfolio.

Strong and flexible capital structure (9% of salary)

Ensure the financial

flexibility exists to deliver

selected development

and acquisition

opportunities whilst

maintaining conservative

leverage and a

progressive

dividendpolicy.

The Company’s strong capital structure continued to allow it to take advantage of

opportunities across the Group in order to deliver incremental earnings growth over the

longer term.

Highlights included:

• On 11 November 2022, the Group completed the refinancing of its RCFs which were

due to expire in June 2023. The previous £250 million Sterling and €70 million Euro

RCFs were replaced with a single, unsecured four-year £400 million multi-currency

revolving facility. In addition, a further £100 million uncommitted accordion facility is

incorporated in the facility agreement, which increases funding capacity, allowing us to

continue to consider strategic, value-accretive investments as and when they arise.

The facility is for a four-year term with two one-year extension options exercisable after

the first and second years of the agreement. The first extension has recently been completed.

• Group leverage was below the Group’s strategic targeted level of an LTV ratio between

30–40% (25.4% for 2023).

• The full year dividend for the year ended 31 October 2023 increased by 1%

demonstrating a continued progressive dividend policy.

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

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112

Directors’ remuneration report continued

for the year ended 31 October 2023

Objective Achievement Outcome

Take advantage of selective portfolio management and expansion opportunities (15% of salary)

Grow store portfolio

through development

oracquisition by at least

2stores per year within

the Board-approved

ROIguidelines.

Improve property

valuations of the stores

in the refurbishment and

extension programme

by more than the capital

investment.

Joint Venture to enter the German market. Started with 7 leasehold stores but

sinceacquired the freehold of one of the stores and exchanged contracts on 2 further

freehold opportunities.

Acquired new development opportunities in the UK, Spain and the Netherlands, in addition

to opening new stores and completing store extensions in various locations.

Highlights included:

Redevelopments and extensions:

• London – Crayford

• London – Paddington Marble Arch

New developments:

• London – Morden – New build

• Wigan – Conversion

• Madrid North – Conversion

• Madrid South – Conversion

• Madrid East – Conversion

• Barcelona North – Conversion

• Barcelona South – Conversion

• Barcelona Central – Conversion

• Netherlands Amersfoort – New build

• Ellesmere Port – New build

Property pipeline summary of c. 1.5 million sq ft representing c. 19% of our existing

property portfolio can be found on page 14.

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part C: Annual report on remuneration continued

2023 annual bonus outcomes: strategic objectives continued

Objective Achievement Outcome

ESG (6% of salary)

Improve the Group’s

ESG activities in order

to deliver real value to

all our stakeholders by:

• year-on-year carbon

footprint reduction;

and

• customer satisfaction

initiatives.

Align sustainability

reporting with

appropriate

framework(s).

Continued progress on our commitment to responsible and sustainable businesspractices.

Highlights included:

• delivered year-on-year carbon emissions intensity reduction through efficiency and

electrification initiatives versus 2022 including the fully acquired Benelux portfolio;

• market-based absolute emissions 17% lower year on year (emissions intensity also

below 2023 target);

• gas removed from 32 UK stores on track for our 2030 target to remove gas use entirely;

• 100% diversion of construction waste from landfill;

• 100% operational waste diversion;

• maintained positive ratings on all relevant customer service platforms:

• Feefo Platinum Trusted Service award for Safestore UK;

• Trustpilot ‘Excellent’ rating achieved in the UK with a Trustpilot ‘Great’ rating

maintained in France;

• average Google rating of 4.7 achieved in Spain; and

• in the Netherlands, a high score of 4.9 was achieved on Trustpilot, whilst in Belgium,

customer service was rated 4.7 on Feefo; and

• external recognition of ESG efforts and disclosures: EPRA Sustainability BPR Silver

Award, GRESB Public Disclosure A, MSCI ESG ‘AA’ and Support the Goals – 5*.

Our strong wellbeing foundation has enabled us to develop a strategy setting out our

approach to further support diversity and inclusion at Safestore. Our Diversity and Inclusion

Strategy is about embedding and continuing the important work we’ve already done to

enable all our colleagues to feel confident to bring their full, unique selves to work.

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

Given that the threshold performance level under the EBITDA measure was not achieved, the formulaic outcome for the 2023 Executive Director

bonus is nil. Despite there being nil annual bonus for the year, the Committee acknowledged the management team’s excellent performance,

particularly in relation to the strategic progress made during the year which will create long term value for our shareholders. However, the

Committee determined that it should not exercise its discretion to adjust the formulaic bonus outturn as it was aligned with the shareholder

experience over 2023.

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Directors’ remuneration report continued

for the year ended 31 October 2023

LTIP awards included in single figure for the year ended 31 October 2023 (audited)

2021 LTIP – EPS and Relative TSR element performance measurement

For the 2021 LTIP, the Executive Directors were granted an LTIP award equal to a maximum of 200% of salary.

The performance period of the EPS element of the 2021 LTIP ended on 31 October 2023; EPS performance accounts for two-thirds of the

award. On that basis, the Committee measured the Company’s EPS growth and Cash on Cash Return in relation to the underpin over the

three-year performance period. Adjusted Diluted EPRA EPS increased by 16.6% p.a., significantly ahead of the 8% p.a. growth required for

maximum vesting. The average Cash on Cash Return over the same period was 11.9% which also exceeded the 8% underpin target resulting in

100% of the awards being earned under the EPS element of the 2021 LTIP.

This is summarised in the table below:

Adjusted Diluted EPRA EPS growth

Cash on Cash Return underpin

Threshold

performance

(25%vesting)

Maximum

performance

(100% vesting)

Actual

performance

% of awards

earned

Underpin

performance

required Actual performance

Overall % of

awards earned

5% p.a. 8% p.a. 16.6% p.a. 100% 8% 11.9% 100%

Notes:

1 Vesting between threshold and maximum based on a sliding scale.

2 Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for the period after tax but

excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further

adjustments for the impact of exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted

number of shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element).

Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the associated National Insurance element).

3 Cash on Cash Return p.a. is the average Cash on Cash Return over the performance period, where Cash on Cash Return is Underlying EBITDA after leasehold rent divided by original

cost of investments calculated for each financial year in the performance period.

The final vesting level for the 2021 LTIP will not be determined by the Committee until the vesting date of 28 January 2024, with the balance of

awards subject to the Company’s relative TSR performance measured over the three-year period ending on 27 January 2024. Half of the TSR

element of the awards are measured relative to the FTSE 250 excluding Investment Trusts, and the other half to the FTSE 350 Supersector Real

Estate Index, with threshold and maximum vesting for median and upper quartile TSR growth versus the peer groups respectively.

As at 31 October 2023, Safestore’s TSR growth is between the median and upper quartile of the FTSE 250 excluding the Investment Trusts Index

and above the upper quartile of the FTSE 350 Supersector Real Estate Index, which would equate to around 85% vesting under the relative TSR

measure. Therefore, the Committee confirms that, based on performance to date and taking account of the EPS element, it expects the 2021

LTIP awards to vest at around 95% of maximum and will consider whether the formulaic outcome is in line with underlying Company

performance at the vesting date.

The value of the 2021 LTIP awards expected to vest on 28 January 2024, plus an estimate of the value of dividend equivalents accrued to 31

October 2023, has been included in the single figure of remuneration table for 2023 on the basis that the relative TSR performance period has

been substantially completed. On the assumption that the relative TSR element vests at c. 85% of maximum, the CEO and CFO will earn 96,240

and 68,571 shares respectively which will become exercisable on or after the vesting date of 28 January 2024.

Dividend equivalents will also be awarded on vested shares based on dividends between the grant and vesting date of the award. In line with the

reporting regulations, an estimate of the value of dividend equivalents between the grant date and 31 October 2023 has been included in the

value of the awards in the single figure of remuneration table as set out on page 110.

Restatement of LTIP awards included in single figure for the year ended 31 October 2022 (audited)

The three-year performance period for the relative TSR element of the 2020 LTIP ended on 17 March 2023; relative TSR accounts for one-third of

the award with 50% of the element measured against the constituents of the FTSE 250 Index excluding Investments Trusts and the remaining

50% against the FTSE 350 Supersector Real Estate Index.

Safestore’s TSR growth was 34.2% over the three-year performance period to 17 March 2023 and was significantly in excess of the upper

quartile of both peer groups (21.6% and -7.3% for the FTSE 250 Index excluding Investment Trusts and FTSE 350 Supersector Real Estate Index

respectively), which equates to maximum vesting. Given that the Committee confirmed that the Cash on Cash Return underpin had been

satisfied as at 31 October 2022, the performance targets under the relative TSR element of the 2020 LTIP were met in full. This is summarised in

the table below:

TSR vs FTSE 250 Index excluding Investment Trusts TSR vs FTSE 350 Supersector Real Estate Index

Threshold

performance –

median TSR

(25% vesting)

Maximum

performance –

upper quartile TSR

(100% vesting)

Safestore’s TSR

performance

% of awards

vested

Threshold

performance –

median TSR

(25% vesting)

Maximum

performance –

upper quartile TSR

(100% vesting)

Safestore’s TSR

performance

% of awards

vested

-7.8% 21.6% 34.2% 100% -17.8% -7.3% 34.2% 100%

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part C: Annual report on remuneration continued

2023 annual bonus outcomes: strategic objectives continued

LTIP awards included in single figure for the year ended 31 October 2023 (audited) continued

Restatement of LTIP awards included in single figure for the year ended 31 October 2022 (audited) continued

Therefore, in total, 123,489 shares for the CEO and 87,986 shares for the CFO vested under the 2020 LTIP and became exercisable on 18 March 2023.

The CEO and CFO also became entitled to 9,658 and 6,881 dividend equivalent shares respectively.

The value of the awards that vested under the 2020 LTIP included in the single figure of remuneration table for the year ended 31 October 2022

has been restated to include the actual dividend equivalents earned during the vesting period, valued at the share price on vesting.

The Committee determined that the formulaic vesting outcome was aligned with the Company’s underlying performance on the basis that:

• the Group’s profits, as measured by EPS, and its share price had increased to a similar extent over the performance period; and

• the Group’s financial success had been achieved in parallel with it receiving several accolades in relation to its colleague initiatives, ESG

performance, and consistently outstanding customer feedback scores.

In line with best practice, the Committee also debated whether any windfall gains had been received as a result of the 2020 LTIP vesting and

noted that:

• the grant price of the award (£6.74) was 54% higher than the grant price of the previous LTIP award (i.e. the 2017 award) and was only 3%

below the average share price over the 12 months prior to the grant date;

• had an LTIP grant been awarded in mid-March 2019, the share price at grant would have been around £6. This would mean that the grant

price of the 2020 LTIP would have been 13% higher than this price; and

• Safestore significantly outperformed its peers in terms of TSR over the performance period.

As such, the Committee determined that no overriding discretion will be applied to the 2020 LTIP outcome.

Taking these factors into consideration, the Committee determined that participants had not benefited from a windfall gain and therefore, in line

with the formulaic outcome, 100% of the 2020 LTIP awards vested on 18 March 2023. The Executive Directors’ awards are also subject to a

two-year post-vesting holding period.

2022 figures (restated) 2023 figures

Name

Number of

2020 LTIP

awards

granted

Number of

2020 LTIP

awards

vested

Number of

2020 LTIP

dividend

equivalent

Value of

2020 LTIP

awards

vested

Value

attributable

to share

price

growth

Number of

2021 LTIP

awards

granted

Number of

2021 LTIP

awards

estimated

to vest

Estimated

number of

2021 LTIP

dividend

equivalent

Value of

2021

LTIP awards

estimated

to vest

Value

attributable

to share

price

growth

F Vecchioli (Chief Executive

Officer) 123,489 123,489 9,658 £1,257,573 £334,038 101,465 96,240 7,935 £814,369 £0

A Jones (Chief Financial

Officer) 87,986 87,986 6,881 £896,019 £238,002 72,294 68,571 5,654 £580,240 £0

Notes:

1 Based on the closing share price on 18 March 2023 of £9.445.

2 Based on growth in share price from date of grant (£6.74 being the closing share price on the dealing day immediately before the date of grant of 18 March 2020) to the closing share price

on the date of vest (£9.445 – 18 March 2023).

3 Based on three-month average share price to 31 October 2023 of £7.82.

4 Based on growth in share price from date of grant (£8.285 being the closing share price on the dealing day immediately before the date of grant of 28 January 2021) to three-month

average share price to 31 October 2023 (£7.82).

LTIP awards granted in the year ended 31 October 2023 (audited)

The first LTIP award under the new Remuneration Policy was granted on 12 July 2023. In line with the Policy, the CEO and CFO’s Base award

had a face value of 300% and 215% of base salary respectively with a maximum multiplier of 1.6x such that the overall maximum award was

480% and 344% of salary. No consideration was paid for the grant which was structured as a nil-cost option. The normal vesting date of the LTIP

awards will be 12 July 2026, being the third anniversary of the award date. Once vested, the LTIP award will normally be exercisable until the day

before the tenth anniversary of the award date and is subject to a two-year holding period commencing on vesting.

Name Role

Base salary at

date of grant

Face value

of 2023

LTIP award

(% of base salary)

price

Face value

of 2023

LTIP award

Face value

at minimum

vesting

Number of shares

granted under

nil-cost option

2,3

F Vecchioli CEO £481,853 480% £8.375 £2,312,890 £300,676 276,166

A Jones CFO £343,320 344% £8.375 £1,181,009 £153,531 141,016

Notes:

1 65% of the award has threshold vesting of 20% of maximum and 35% of the award has threshold vesting of nil.

2 The number of shares granted under the award was calculated using a share price of £8.375, being the closing share price on the dealing day immediately before the date of grant as

shown above.

3 Dividend equivalents will be payable on vested shares.

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Directors’ remuneration report continued

for the year ended 31 October 2023

Performance measures and targets:

• Base award:

• 65% Adjusted Diluted EPRA EPS growth:

• Threshold (20% vesting) = 5% p.a. growth.

• 65% vesting = 7% p.a. growth.

• Strong (80% vesting) = 9% p.a. growth.

• Maximum (100% vesting) = 12% p.a. growth.

• Straight-line vesting in between performance levels.

• 25% strategic/operational measures:

• For 2023, the measure will be the aggregate net increase in Maximum Lettable Area (“MLA”) over the three financial years ending 31

October 2025:

• Threshold net increase (0% vesting).

• Target net increase (50% vesting).

• Maximum net increase (100% vesting).

• Straight-line vesting in between performance levels.

• Given the Board considers the targets set to be commercially sensitive, they will be disclosed retrospectively.

• 10% ESG measures:

• There are 2 measures for 2023 with equal weighting:

• 1. EPC ratings of developments and refurbishments at A or B:

• Threshold (0% vesting) 95% of developments and refurbishments.

• Target (50% vesting) 98% of developments and refurbishments.

• Maximum (100% vesting) 100% of developments and refurbishments.

• 2. Reduction in greenhouse gas emission intensity:

• Threshold (0% vesting) reduction to 1.03 kg CO

/m².

• Target (50% vesting) reduction to 0.93 kg CO

/m².

• Maximum (100% vesting) reduction to 0.89 kg CO

/m².

• The Committee has discretion to deal with acquisitions as appropriate. For example, acquisitions could be excluded from the

performance assessment, or the target could be reset in line with those published in future annual reports.

• Multiplier:

• If TSR performance is above the upper quartile of the FTSE 250 (excluding Investment Trusts) then the Base award vesting can be increased

by up to a maximum of 1.6x for upper decile performance as follows:

• Below upper quartile: Base award vesting increased by 1x (no increase to Base award).

• Upper quartile: Base award vesting increased by 1x (no increase to Base award).

• Upper decile or above: Base award vesting increased by 1.6x.

• Straight-line increase in multiplier vesting between upper quartile and upper decile relative TSR performance.

• Performance modifier:

• The awards are underpinned by a performance modifier whereby the number of LTIP awards vesting will be reduced by one-third, if

Safestore’s TSR over the three-year performance period is either below the median TSR of the FTSE 350 Supersector Real Estate Index,

ornegative.

The Committee will have overriding discretion to change the formulaic outcome (both downwards and upwards) if it is out of line with the

underlying performance of the Company and this will include an assessment of whether any windfall gains have been made.

Note:

1 Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for the period after tax

butexcluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further

adjustments for the impact of exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted

number of shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element).

Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the associated National Insurance element). The financial statements will

disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis and will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part C: Annual report on remuneration continued

Annual bonus – deferred bonus restricted share awards made in the year ended 31 October 2023

In line with the Policy, the bonus awarded in excess of 100% of salary in respect of the year ended 31 October 2022 is held in shares by the

Executive Directors on a net of tax basis (referred to as restricted shares). The restricted shares are subject to a two-year holding period that

expires on 1 November 2024. Malus provisions apply during the holding period and claw-back provisions apply for three years thereafter. The

restricted shares were acquired by the Executive Directors on 30 January 2023 at market value of £10.079.

Name Role

Face value of

restricted shares

Number of

restricted shares

F Vecchioli CEO £117,975 11,705

A Jones CFO £84,049 8,339

Note:

1 Dividends will be payable.

Operation of Policy

The Committee is comfortable that the Policy operated as intended in terms of Company performance and quantum in 2023 and that the overall

remuneration paid to Executive Directors for 2023, as set out above, was appropriate.

Payments to past Directors or for loss of office (audited)

During the year there were no payments to past Directors or for loss of office.

Implementation of the Remuneration Policy for the year ending 31 October 2024

Please see the at a glance section on pages 98 to 100 of this report for details.

Non-Executive Directors

Single figure remuneration table (audited)

The remuneration of Non-Executive Directors showing the breakdown between components, together with comparative figures for the prior year,

is shown below.

Director

Fees

£’000

Other

£’000

Total

£’000

D Hearn

2023 227 — 227

2022 203 — 203

I S Krieger

2023 82 — 82

2022 78 — 78

G van de Weerdhof

2023 59 — 59

2022 57 — 57

L Duhot

2023 71 — 71

2022 61 — 61

D Mousseau

2023 59 — 59

2022 57 — 57

J Bentall

2023 59 — 59

2022 26 — 26

A Darzins

2023 10 — 10

2022 — — —

Notes:

1 L Duhot was appointed Remuneration Committee Chair on 1 June 2022 so received a pro-rated Committee fee for 2022.

2 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022 so received a pro-rated fee for 2022.

3 A Darzins was appointed as an independent Non-Executive Director on 1 September 2023 so received a pro-rated fee for 2023.

Fees to be provided in 2024 to the Non-Executive Directors

The following table sets out the annual fee rates for the Non-Executive Directors from 1 May 2023:

Fee component 2024

Chairman fee £233,200

Non-Executive Director base fee £61,141

Additional fee for SID and Committee chairmanship £11,464

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118

Directors’ remuneration report continued

for the year ended 31 October 2023

Statement of Directors’ shareholding and share interests

Shareholding and other interests at 31 October 2023 (audited)

Directors’ share interests are set out below. As per the new Remuneration Policy, in order that the Executive Directors’ interests are aligned with

those of shareholders, Executive Directors are encouraged to build up and maintain a personal shareholding equal to 600% and 450% of salary

for the CEO and CFO/other Directors respectively. The shareholding guidelines take account of beneficially owned shares, restricted shares from

bonus deferral and vested but unexercised awards at their net of tax value. The Executive Directors had five years from the approval of this Policy

(12 July 2023) to achieve this guideline. As shown in the table below, both Executive Directors meet the in-employment guidelines under thePolicy.

A shareholding guideline will continue to apply for two years post-cessation of employment. Executive Directors must retain shares equivalent

invalue to 350% of salary for two years post-cessation of employment (or their actual shareholding on cessation if lower than 350% of salary).

This excludes shares owned pre-18 March 2020 and awards vesting from the 2017 LTIP.

As at 31 October 2023

Director

Number of

beneficially

owned

% of

salary

held

Shareholding

requirement

(% of salary)

Shareholding

requirement met

Total interests

subject to

conditions

(LTIP nil-cost

awards)

Outstanding

Sharesave

awards

Total

interests at

31 October 2023

F Vecchioli 3,293,754 4,672 600 Yes 449,276 2,008 3,745,038

A Jones 1,301,726 2,592 450 Yes 264,357 2,008 1,568,091

D Hearn 15,000 n/a n/a n/a n/a n/a 15,000

I S Krieger 88,587 n/a n/a n/a n/a n/a 88,587

G van de Weerdhof 9,081 n/a n/a n/a n/a n/a 9,081

L Duhot 1,711 n/a n/a n/a n/a n/a 1,711

D Mousseau 1,460 n/a n/a n/a n/a n/a 1,460

J Bentall 9,300 n/a n/a n/a n/a n/a 9,300

A Darzins Nil n/a n/a n/a n/a n/a Nil

Notes:

1 Beneficial interests include shares held directly or indirectly by connected persons and deferred bonus restricted shares acquired on 4 February 2022 and 30 January 2023.

2 Based on the 31 October 2023 share price of 683.5 pence per share and beneficially owned shares only.

Between 31 October 2023 and 15 January 2024 (being the latest practicable date prior to the publication of this report), there were no other

changes to the Directors’ interests.

2020 LTIP awards – awards exercised on 24 March 2023

The Executive Directors exercised their 2020 LTIP vested nil-cost options on 24 March 2023 as set out in the table below:

Director Role

Number

of nil-cost

options

granted

Dividend

equivalents

Total number of

shares exercised Retained shares

F Vecchioli CEO 123,489 9,658 133,147 69,468

A Jones CFO 87,986 6,881 94,867 49,427

The retained shares are included within the column ‘number of beneficially owned shares’ in the Directors’ shareholding table above.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Part C: Annual report on remuneration continued

Outstanding LTIP awards at 31 October 2023

The following LTIP awards remain outstanding and unvested at 31 October 2023:

Director Awards granted Maximum award Awards vested Awards lapsed

Maximum

outstanding

awards

31 October

2023

Market

price at

date of

vesting (p)

Normal

vesting date

F Vecchioli 28/01/2021 LTIP 101,465 — — 101,465 — 28/01/2024

25/01/2022 LTIP 71,645 — — 71,645 — 25/01/2025

12/07/2023 LTIP 276,166 — — 276,166 — 12/07/2026

A Jones 28/01/2021 LTIP 72,294 — — 72,294 — 28/01/2024

25/01/2022 LTIP 51,047 — — 51,047 — 25/01/2025

12/07/2023 LTIP 141,016 — — 141,016 — 12/07/2026

Note:

1 Figures shown exclude dividend equivalents.

The 2021, 2022 and 2023 LTIP awards are subject to performance measures and a continued service condition over a three-year period. The

performance measures and targets for the 2021 LTIP awards are set out on page 100 of the 2021 Annual Report; for the 2022 LTIP awards, these

are set out on pages 111 and 112 of the 2022 Annual Report; and for the 2023 LTIP awards, these are set out on pages 116 and 117 of this report.

Consideration of shareholder views

Please see page 108 for details.

Consideration of conditions elsewhere in the Group

Please see page 108 for details.

Considerations by the Committee of matters relating to Directors’ remuneration for 2023

The Committee is responsible for recommending to the Board the Remuneration Policy for Executive Directors and senior management and for

setting the remuneration packages for each Executive Director. The Committee also has oversight of the Remuneration Policy for all colleagues.

The written terms of reference of the Committee are available on the Company’s website and from the Company on request.

Members of the Committee in the year to 31 October 2022 Independent

Meetings held

during tenure

during the year

Number of

meetings

attended

L Duhot (Chair) Yes 8 8

D Hearn Yes 8 8

I S Krieger Yes 8 8

G van de Weerdhof Yes 8 8

D Mousseau Yes 8 8

J Bentall Yes 8 8

A Darzins

Yes 1 1

Note:

1 A Darzins was appointed as an independent Non-Executive Director on 1 September 2023.

Please see page 93 of the Chair’s statement for the activities undertaken by the Committee during the year ended 31 October 2023.

None of the Committee members have any personal financial interest (other than as shareholders) in the decisions made by the Committee,

conflicts of interest arising from cross-directorships or day-to-day involvement in running the business.

The Chief Executive Officer, the Chief Financial Officer, the HR Director and the Company Secretary may attend meetings at the invitation of

theCommittee but are not present when their own remuneration outcomes are being discussed. The HR Director acts as the secretary to

theCommittee.

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Directors’ remuneration report continued

for the year ended 31 October 2023

The Committee received external advice in 2023 from PricewaterhouseCoopers LLP (“PwC”) in connection with remuneration matters, including

the provision of general guidance on market and best practice. PwC was appointed by the Committee after a competitive tender process in August

2016. PwC is considered by the Committee to be objective and independent. PwC is a member of the Remuneration Consultants Group and, as

such, voluntarily operates under the code of conduct in relation to executive remuneration consulting in the UK. PwC also provided the Company

with reward, tax, and consulting advice. The Committee reviewed the nature of all the services provided during the year by PwC and was satisfied

that no conflict of interest exists or existed in the provision of these services and therefore the advice provided was objective andindependent.

The total fees paid to PwC in respect of services to the Committee during the year were £167,000. Fees were determined based on the scope

and nature of the projects undertaken for the Committee.

Executive Director service contracts

The service agreements of the Executive Directors are not fixed term and are terminable by either the Company or the Director on the

followingbasis:

Director Date of current service contract Notice period

F Vecchioli 3 September 2013 Twelve months

A Jones 29 January 2013 Twelve months

Non-Executive Director letters of appointment

The Non-Executive Directors were appointed for an initial three-year term and their appointment continues, subject to annual re-election at the

Company’s AGM up to a maximum term of 9 years.

The table below sets out the dates that each Non-Executive Director was first appointed and the notice period by which their appointment may

be terminated early by either party:

Director Date of appointment Notice period by Company or Director

D Hearn 1 December 2019 Three months

I S Krieger

3 October 2013 Three months

G van de Weerdhof 1 June 2020 Three months

L Duhot 1 November 2021 Three months

D Mousseau 1 November 2021 Three months

J Bentall 18 May 2022 Three months

A Darzins

1 September 2023 Three months

Notes:

1 I S Krieger is stepping down from the Board at the 2024 AGM and is therefore not seeking re-election as a Non-Executive Director.

2 A Darzins was appointed as an independent Non-Executive Director on 1 September 2023.

Safestore Holdings plc | Annual report and financial statements 2023

121

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Safestore Holdings plc is a public limited liability company

incorporated under the laws of England and Wales with the registered

number 04726380. It has a premium listing on the London Stock

Exchange Main Market for listed securities (LON:SAFE) and is a

constituent member of the FTSE 250 Index. The Company is a real

estate investment trust (“REIT”). It is expected that the Company,

which has no branches, will continue to operate as the holding

company of the Group. The address of the registered office is Brittanic

House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT.

The principal activity of the Group is to provide storage solutions and

related goods and services to commercial and domestic customers.

The principal activity of the Company is that of a holding company.

The Directors present their report and the audited consolidated

financial statements for the year ended 31 October 2023. References

to Safestore, “the Group”, “the Company”, “we” or “our” are to

Safestore Holdings plc, and its subsidiary companies where appropriate.

Disclosures incorporated by reference

The following disclosures required to be included in the Directors’

report have been incorporated by way of reference to other sections of

this report and should be read in conjunction with this report:

• corporate governance report on pages 82 to 86;

• strategy and relevant future developments – refer to pages 8 to 19

of the strategic report;

• section 172, including engagement with employees, suppliers,

customers and others – refer to pages 32 to 34 of the strategic report;

• financial risk management, policies and objectives of the Group, along

with any details of exposure to any liability and cash flow risk, are set

out on pages 35 to 40 and in note 20 to the financial statements;

• details of the Group’s going concern assessment and viability

statement on pages 42 and 138; and

• employee matters and carbon emission disclosures are set out

inthe Sustainability report on pages 48 to 53 and pages 59 to

77respectively.

Results for the year and dividends

The results for the year ended 31 October 2023 are set out in the

consolidated statement of comprehensive income on page 134 and

areview of the Group’s results is explained further on pages 1 to 31.

An interim dividend of 9.9 pence (FY2022: 9.40 pence) was paid on

10August 2023, comprised of a Property Income Distribution (“PID”)

of 2.47 pence (FY2022: 2.35 pence) and a non-PID dividend of

7.43pence (FY2022: 7.05 pence). The Directors recommend a final

dividend in respect of the year ended 31 October 2023 of 20.20 pence

per ordinary share (FY2022: 20.40 pence), of which the PID element

will be 15.15 pence (FY2022: 20.40 pence). If authorised at the 2024

AGM, the dividend will be paid on 9 April 2024 with the record date

of8 March 2024.

PIDs are paid after the deduction of withholding tax at the basic rate

(currently 20%). However, certain categories of shareholder may be entitled

to receive payment of a gross PID if they are UK resident companies, UK

public bodies, UK pension funds and managers ofISAs, PEPs and child

trust funds. Information, together with the relevant forms which must be

completed and submitted to the Company’s Registrar, for shareholders

who are eligible to receive gross PIDs is available in the Investor Relations

section of the Company’s website at www.safestore.com. Non-PID

dividends are not subject to withholding tax.

Going concern and viability statement

After making enquiries, the Directors of Safestore are confident that,

onthe basis of current financial projections and facilities available and

after considering sensitivities, and stress testing, the Group has sufficient

resources for its operational needs and to enable the Group to remain

in compliance with the financial covenants in its bank facilities for

theforeseeable future, a period of not less than twelve months.

TheDirectors have assessed Safestore’s viability over a three-year

period to 31 October 2026. This is based on modelling over a

three-year period, which gives greater certainty over the forecasting

assumptions used. The viability statement is set out on page 42.

Financial instruments

The financial risk management objectives and policies of the Group,

along with any details of exposure to any liability and cash flow risk, are

set out on pages 35 to 40, and in note 20 to the financial statements.

Disclosures required under Listing Rule 9.8.4R

For the purposes of LR 9.8.4R, the information required to be

disclosed by LR 9.8.4R can be found in the following locations within

the Annual Report:

Page

(1) Amount of interest capitalised 26

(2) Publication of unaudited financial information n/a

(4) Details of long term incentive schemes 165 and 166

(5) Waiver of emoluments by a Director n/a

(6) Waiver of future emoluments by a Director n/a

(7) Non-pre-emptive issues of equity for cash 165

(8) Item (7) in relation to major subsidiary undertakings n/a

(9) Parent company participation in a placing by a

listed subsidiary

n/a

(10) Contracts of significance 125

(11) Provision of services by a controlling shareholder n/a

(12) Shareholder waiver of dividends 123

(13) Shareholder waiver of future dividends n/a

(14) Agreements with controlling shareholders n/a

All the information referenced above is incorporated by reference into

the Directors’ report.

Management report

The strategic report and the Directors’ report collectively comprise the

“management report” for the purposes of the Financial Conduct

Authority’s Disclosure Guidance and Transparency Rules (DTR 4.1.5R).

Corporate governance statement

In compliance with the Financial Conduct Authority’s Disclosure

Guidance and Transparency Rules, the disclosures required by

DTR7.2.6 are set out in this Directors’ report.

Post-balance sheet events

There were no reportable events after the balance sheet date.

Directors

The Directors of the Company who served during the year and to the

date of this report were as follows:

Jane Bentall Non-Executive Director

Avis Darzins Non-Executive Director

(appointed 1 September 2023)

Laure Duhot Non-Executive Director

David Hearn Non-Executive Chairman

Andy Jones Chief Financial Officer

Ian Krieger Senior Independent Director

Delphine Mousseau Non-Executive Director

Frederic Vecchioli Chief Executive Officer

Gert van de Weerdhof Non-Executive Director

Safestore Holdings plc | Annual report and financial statements 2023

122

Directors’ report

The skills and experience of the serving Directors are set out on

pages80 and 81, and their interests in the ordinary share capital of

theCompany, and details of options granted to Executive Directors

under the Group’s share schemes are set out in the Directors’

remuneration report on pages 115 to 120.

Appointment and removal of Directors

The Company’s rules governing the appointment and removal of

Directors are contained in its Articles of Association. Changes to the

Articles of Association are only permitted in accordance with legislation

and must be approved by a special resolution of shareholders. The

Company’s Articles of Association provide that a Director may be

appointed by an ordinary resolution of the shareholders or by the

existing Directors, either to fill a vacancy or as an additional Director.

Further information on the Company’s internal procedures for the

appointment of Directors is given in the corporate governance section

on pages 85 and 88.

A Director may be removed by the Company in certain circumstances

set out in the Articles of Association or by an ordinary resolution of the

Company’s shareholders.

Vacation of office

The office of a Director shall be vacated if (amongst other

circumstances) a Director: (i) resigns; (ii) has been appointed for a

fixed term and the term expires; (iii) ceases to be a Director by virtue of

the Companies Act, is removed from office pursuant to the Articles of

Association or becomes prohibited by law from being a Director; (iv)

becomes bankrupt or the subject of an interim receiving order or

compounds with creditors generally or applies to the court for an

interim order under Section 253 of the Insolvency Act 1986 (as

amended) in connection with a voluntary arrangement under that act

or any analogous event occurs in relation to the Director in another

jurisdiction; (v) has been suffering from mental or physical ill health and

may remain so for more than three months; (vi) both a Director and his

or her alternate Director (if any) are absent, without the permission of

the Board from meetings of the Board for six consecutive months and

the Board resolves that his or her office is vacated; or (vii) is removed

from office by notice addressed to the Director at their last-known

address and signed by all co-Directors.

Directors’ powers

The Board, which is responsible for the management of the business,

may exercise all the powers of the Company subject to the provisions

of relevant legislation, the Company’s Articles of Association and

directions given by special resolution of the Company. The powers of

the Directors set out in the Articles of Association include those in

relation to the issue and buyback of shares.

Annual re-election of Directors

The Company’s Articles of Association require that all Directors retire

by rotation each year. In accordance with the Company’s Articles of

Association and with the Code, all Directors will retire at the Annual

General Meeting (“AGM”) to be held on Wednesday 13 March 2024

and will offer themselves for re-election.

Directors’ indemnities

The Company maintains directors’ and officers’ liability insurance

which provides appropriate cover for legal action brought against its

Directors. The Company has also granted indemnities to each of its

Directors to the extent permitted by law. The Directors also have (and

during the year ended 31 October 2023 had) the benefit of the

qualifying third party indemnity provision contained in the Company’s

Articles of Association, which provides a limited indemnity in respect

of liabilities incurred as a Director or other officer of the Company.

Directors’ interests in contracts and conflicts

of interest

No member of the Board had a material interest in any contract of

significance with the Company, or any of its subsidiaries, at any time

during the year. Directors are required to notify the Company of any

conflict or potential conflict of interest.

The Company’s policy is that Directors notify the Chairman and the

Company Secretary of all new outside interests and actual or potential

conflicts of interest as and when they arise. The Board confirms that

no actual or potential conflicts have been identified or notified to the

Company during the year and, accordingly, the Board has not

authorised any conflicts of interest as permitted by the Company’s

Articles of Association.

Share capital

At 31 October 2023, the Company’s issued share capital comprised

218,039,419 ordinary shares of 1 pence each. The rights and obligations

attached to the Company’s ordinary shares are set out in its Articles

ofAssociation and note 11 of the Company’s financial statements.

Details of movements in the share capital during the year are provided

in note 23 of the financial statements. The issued share capital has

been increased by 6,111,922 ordinary shares during the year by fully

paid issues as follows:

Date Share scheme

Number of

ordinary shares

of 1 pence

2 November 2022

to23 February 2023

Exercise of options under

the2017 (five-year)

Sharesavescheme

35,183

9 November 2022

to19 October 2023

Exercise of options under

the2019 (three-year)

Sharesavescheme

15,774

29 December 2022

to20 April 2023

Early exercise of options

underthe 2020 (three-year)

Sharesave scheme

4,666

10 November 2022 to

27 September 2023

Issue of new share to the

Trusteeof the Safestore

Employee Benefit Trust to

satisfy share awards granted by

the Company under its 2017

LongTerm Incentive Plan

5,625,324

24 March 2023 Issue of new share to the Trustee

of the Safestore Employee

Benefit Trust to satisfy share

awards granted by the Company

under its 2020 Long Term

Incentive Plan

430,975

No person holds securities in the Company carrying special rights

with regard to control of the Company.

Own shares – Employee Benefit Trust

At 31 October 2023, the Employee Benefit Trust retains 64,363

ordinary shares (FY2022: 359,795) with a nominal value of £643.63

(FY2022: £3,598) to satisfy awards under the Group’s share scheme

arrangements. This represents less than 0.03% (FY2022: 0.17%) of

thetotal issued share capital of the Company. The Trustee of the

Employee Benefit Trust has elected not to receive dividends on its

retained ordinary shares.

Safestore Holdings plc | Annual report and financial statements 2023

123

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Purchase of own shares

The Company was granted authority at the 2023 AGM to make market

purchases of its own ordinary shares. This authority will expire at the

conclusion of the 2024 AGM and a resolution will be proposed to

seekfurther authority. No ordinary shares were purchased under

thisauthority during the year or in the period from 1 November 2023

to 15January 2024.

Restrictions on transfers of shares and/or

voting rights

The Company is not aware of any agreements between shareholders

that may result in restrictions on the transfer of securities and/or voting

rights and apart from the matters described below, there are no

restrictions on the transfer of the Company’s ordinary shares and/or

voting rights:

• Certain restrictions on transfers of shares may from time to time be

imposed by laws and regulations (such as the Market Abuse

Regulation). The Company’s Securities Dealing Code provides that

all Directors and employees are required to seek the Company’s

approval to deal in its shares.

• Some share-based employee incentive plans include restrictions on the

transfer of shares, while the shares are subject to the plan concerned.

• The Directors’ Remuneration Policy provides that annual bonus

awards in excess of 100% of salary be deferred into shares. The

annual bonus plan rules include restrictions on the transfer of such

shares, while the shares are subject to the plan concerned.

• The transferor of a share is deemed to remain the holder until the

transferee’s name is entered in the register of shareholders. The

Board can refuse to register any transfer of any share which is not a

fully paid share. The Company does not currently have any partly

paid shares.

• Unless the Directors determine otherwise, members are not entitled

to vote personally or by proxy at a shareholders’ meeting, or to

exercise any other member’s right in relation to shareholders’

meetings, in respect of any share for which any call or other sum

payable to the Company remains unpaid.

• Unless the Directors determine otherwise, no transfer of shares

shall be registered and members are not entitled to vote personally

or by proxy at a shareholders’ meeting, or to exercise any other

member’s right in relation to shareholders’ meetings if the member

fails to provide the Company with the required information

concerning interests in those shares within the prescribed period

after being served with a notice under Section 793 of the

Companies Act 2006.

• The shareholding guidelines set out in the Directors’ Remuneration

Policy provide that Executive Directors are expected to build up

their shareholding over a five-year period. Executive Directors would

be expected to retain any shares vesting (post-tax) under in-flight

awards until they have acquired the necessary shares to meet their

shareholding requirements.

Details of deadlines in respect of voting for the 2024 AGM are

contained in the Notice of Meeting that has been circulated to

shareholders and can be viewed on the Company’s website at

www.safestore.com.

Substantial shareholdings

The table below sets out the names of those persons who, insofar as the Company is aware, as at 9 November 2023 (being the nearest date of

the Company’s internal analysis to 31 October 2023), are interested directly or indirectly in 3% or more of the issued share capital of the Company.

Name of shareholder

Number of

ordinary shares

Percentage of issued

share capital

BlackRock Inc (Combined) 20,818,518 9.55%

The Capital Group Companies, Inc 13,301,733 6.10%

abrdn plc (Combined) 12,089,357 5.54%

The Vanguard Group, Inc (Combined) 11,219,006 5.14%

Principal Financial Group (Combined) 10,257,696 4.70%

Cohen and Steers (Combined) 9,937,862 4.56%

State Street Global Advisors (Combined) 7,360,404 3.38%

Information provided to the Company pursuant to Rule 5 of the Disclosure Guidance and Transparency Rules (“DTR”) is published on a

Regulatory Information Service and on the Company’s website.

During the current financial year and as at 31 October 2023, the Company received the following notifications in accordance with DTR 5

disclosing changes to voting interests in its issued share capital. The information provided includes the percentage of issued capital as at the

date of the notifications.

Name of shareholder

Date of

latest notification

Number of

ordinary shares

Percentage of

issued share capital

Nature of holding

(direct/indirect)

The Capital Group Companies, Inc 25 September 2023 10,926,792 5.01% Indirect

Aggregate of abrdn plc affiliated investment

management entities with delegated voting

rights on behalf of multiple managed portfolios

21 June 2023 Not advised Below 5.00% Indirect

Cohen and Steers, Inc 2 May 2023 10,685,793 4.90% Indirect

Between 1 November 2023 and 15 January 2024, being a date not more than one month prior to the date of the Company’s Notice of Annual

General Meeting 2023, the Company did not receive any notification(s) in accordance with DTR 5 disclosing changes to voting interests in its

issued share capital.

All interests disclosed to the Company in accordance with DTR 5 that have occurred since 15 January 2024 can be found on the Company’s

website www.safestore.com.

Safestore Holdings plc | Annual report and financial statements 2023

124

Directors’ report continued

Significant agreements and change of control

The Group’s bank facilities agreement and US Private Placement Note agreements contain provisions entitling the counterparty to terminate the

contractual agreements in the event of a change of control of the Group. The rules governing the Group’s share scheme arrangements also

contain provisions relating to the vesting and exercising of options in the event of a change of control of the Group.

There are no agreements between the Company and its Directors or employees providing for compensation for loss of office or employment

(whether through resignation, purported redundancy or otherwise) that occurs because of a takeover bid.

Employment and environmental matters

Information in respect of the Group’s employment and environmental policies, including the policies regarding the employment of disabled

persons and greenhouse gas reporting, is summarised in the sustainability section on pages 44 to 77.

Amendment of the Articles of Association

The Company’s Articles of Association may only be amended by special resolution at a general meeting of the shareholders.

Political donations

The Company made no political donations and incurred no political expenditure during the year (FY2022: £nil). It remains the Company’s policy

not to make political donations or to incur political expenditure; however, the application of the relevant provisions of the Companies Act is

potentially very broad in nature and, as with last year, the Board is seeking shareholder authority to ensure that the Company does not

inadvertently breach these provisions as a result of the breadth of its business activities. It is not the policy of the Company or its subsidiaries

tomake political donations.

Disclosure of information to auditor

Each of the persons who is a Director at the date of approval of this report confirms that:

• so far as the Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and

• each Director has taken all the steps a Director might reasonably ought to have taken in order to make themself aware of any relevant audit

information and to establish that the Company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.

Independent auditor

The Audit Committee undertook their annual review of the Auditor’s independence. The Directors determined that Deloitte LLP remained

independent through the course of the year.

The Company began a formal Audit Tender at the end of 2023 for Audit Services, starting with the financial year ending 31 October 2024.

Atthetime of signing of this report, the outcome of the Audit Tender had not been determined. The Audit Committee will make a recommendation

to the Board on the outcome of the Tender before the publication of the Notice of Meeting for the Company’s Annual General Meeting on

Wednesday, 13 March 2024 and the appointment/re-appointment of the Company’s Auditor will be put to shareholder vote at the Annual

GeneralMeeting.

Annual General Meeting (“AGM”)

The AGM will be held at the Company’s registered office at Brittanic House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT, on Wednesday,

13 March 2024 at 12.00 noon.

The 2024 AGM will include, as special business, resolutions dealing with authority to issue shares, disapplication of pre-emption rights, authority

to purchase the Company’s own shares, authority to call a general meeting on not less than 14 days’ notice, and Deed of Release The Notice of

AGM sets out details of the business to be considered at the AGM and contains explanatory notes on such business. This has been dispatched

to shareholders and can be found on the Company’s website at www.safestore.com.

Shareholders are encouraged to use their vote at this year’s AGM by casting their votes online by using our electronic proxy appointment service

offered by the Company’s Registrar, Link Group, at www.signalshares.com or via the Link Group shareholder app, LinkVote+.

This report was approved by the Board for release on 16 January 2024 and signed on its behalf by:

David Orr

Company Secretary

16 January 2024

Safestore Holdings plc | Annual report and financial statements 2023

125

OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report and the

Group and parent company financial statements in accordance with

applicable law and regulations.

Company law requires the Directors to prepare such financial

statements for each financial year. Under that law the Directors are

required to prepare the Group financial statements in accordance

withUnited Kingdom-adopted International Accounting Standards.

Thefinancial statements also comply with International Financial

Reporting Standards (“IFRS”) as issued by the IASB. The Directors

have chosen to prepare the parent company financial statements in

accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law),

including Financial Reporting Standard 101 “Reduced Disclosure

Framework”. Under company law the Directors must not approve the

financial statements unless they are satisfied that they give a true and

fair view of the state of affairs of the Group and the parent company

and of the profit or loss of the Group for that period.

In preparing the parent company financial statements, the Directors

are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable UK-adopted International Accounting

Standards have been followed for the Group financial statements

and United Kingdom Accounting Standards, comprising FRS 101,

have been followed for the Company financial statements,

subjectto any material departures disclosed and explained in

thefinancial statements;

• make judgements and accounting estimates that are reasonable

and prudent; and

• prepare the financial statements on the going concern basis

unlessit is inappropriate to presume that the Company will continue

in business.

In preparing the Group financial statements, International Accounting

Standard 1 requires that Directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a

mannerthat provides relevant, reliable, comparable and

understandable information;

• provide additional disclosures when compliance with the specific

requirements of the financial reporting framework is insufficient to

enable users to understand the impact of particular transactions,

other events and conditions on the entity’s financialposition and

financial performance; and

• make an assessment of the Group’s ability to continue as a

goingconcern.

The Directors are responsible for keeping adequate accounting records

that are sufficient to show and explain the Group’s transactions and

disclose with reasonable accuracy at any time the financial position of

the parent company and the Group to enable them to ensure that the

financial statements comply with the Companies Act 2006. They are

also responsible for safeguarding the assets of the parent company

and the Group and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the

corporate and financial information included on the Group’s website at

www.safestore.com. Legislation in the United Kingdom governing the

preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.

Responsibility statement

The Directors consider that the Annual Report and Accounts, taken

asa whole, is fair, balanced and understandable and provides the

information necessary for shareholders to assess the Company’s

position and performance, business model and strategy.

Each of the Directors, whose names and functions are listed in

BoardofDirectors on pages 80 and 81 confirm that, to the best

oftheirknowledge:

• the consolidated financial statements, which have been prepared in

accordance with UK-adopted International Accounting Standards,

give a true and fair view of the assets, liabilities, financial position

and profit of the Group;

• the Company’s financial statements, which have been prepared

inaccordance with United Kingdom Accounting Standards,

comprising FRS 101, give a true and fair view of the assets,

liabilitiesand financial position of the Company; and

• the Strategic Report of this report includes a fair review of the

development and performance of the business and the position

ofthe Company and the wider Group, together with a description

ofthe principal risks and uncertainties that it faces.

In the case of each Director in office at the date the Directors’ report

isapproved:

• so far as the Director is aware, there is no relevant audit information

of which the Company’s external auditor is unaware; and

• the Director has taken all the steps that they ought to have taken as

a Director in order to make themselves aware of any relevant audit

information and to establish that the Company’s external auditor is

aware of that information.

This responsibility statement was approved by the Board of Directors

on 16 January 2024 and is signed on its behalf by:

Frederic Vecchioli Andy Jones

Chief Executive Officer Chief Financial Officer

Safestore Holdings plc | Annual report and financial statements 2023

126

Statement of Directors’ responsibilities

Report on the audit of the financial statements

1. Opinion

In our opinion:

• the financial statements of Safestore Holdings plc (the “parent company”) and its subsidiaries (the “Group”) give a true and fair view of the state

of the Group’s and of the parent company’s affairs as at 31 October 2023 and of the Group’s profit for the year then ended;

• the Group financial statements have been properly prepared in accordance with United Kingdom – adopted International Accounting Standards;

• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the consolidated income statement;

• the consolidated statement of comprehensive income;

• the consolidated and parent company balance sheets;

• the consolidated and parent company statements of changes in equity;

• the consolidated cash flow statement; and

• the Group related notes 1 to 31 and parent company related notes 1 to 13.

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law, and United

Kingdom – adopted International Accounting Standards. The financial reporting framework that has been applied in the preparation of the parent

company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”

(United Kingdom Generally Accepted Accounting Practice).

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under

those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.

We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the Financial Reporting Council’s (“FRC’s”) Ethical Standard as applied to listed public interest entities,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services provided to the Group and

parent company for the year are disclosed in notes 7 and 4 respectively to the financial statements. We confirm that we have not provided any

non-audit services prohibited by the FRC’s Ethical Standard to the Group or the parent company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

3. Summary of our audit approach

Key audit matters The key audit matter that we identified in the current year was the valuation of the investment properties,

whichisconsistent with the key audit matter identified in the prior year.

Within this report, the key audit matter is identified as follows:

Newly identified

Increased level of risk

Similar level of risk

Decreased level of risk

Materiality The materiality that we used for the Group financial statements was £38.5 million which was determined on the basis

of2% of net assets. For testing of items affecting adjusted EPRA earnings we have applied a lower threshold amounting

to£5.0 million, which was determined as 5% of adjusted EPRA earnings.

Scoping We have identified four components within the Group: United Kingdom (“UK”), France, Spain and Benelux. The Group

engagement team (“GET”) has performed a full scope audit of the UK component and a French component audit team has

performed a full scope audit of the French component. In addition, the GET has performed specified procedures in respect

of the Spanish and Benelux components.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Independent auditor’s report

to the members of Safestore Holdings plc

Report on the audit of the financial statements continued

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the

financial statements is appropriate.

Our evaluation of the Directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern basis

ofaccounting included:

• obtaining an understanding of the relevant controls relating to the going concern process;

• an assessment of the Group’s financing facilities including nature of facilities, repayment terms and covenants;

• testing the mathematical accuracy of, and assessing the sophistication of, the model used to prepare the going concern forecast;

• challenging the range of scenarios, including the base case, modelled by management through our understanding of sector performance and

sentiment and historical forecasting accuracy of management;

• an assessment of the level of headroom arising in each scenario;

• an assessment of the outcome of the reverse stress testing performed by management; and

• an evaluation of the appropriateness of the going concern disclosures in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or

collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a going concern for a period of at least twelve

months from when the financial statements are authorised for issue.

In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention

to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt the going

concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the

current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit and directing the

efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do

not provide a separate opinion on these matters.

5.1. Valuation of investment properties

Key audit matter

description

Investment properties are held at a fair value of £2,890.9 million at 31 October 2023 (2022: £2,647.4 million).

Thisisthe most quantitatively material balance in the financial statements.

Property valuation, which is performed by an external valuer, is by its nature subjective with significant estimation

being applied. We consider the key assumptions to comprise stabilised occupancy, capitalisation rate, discount

rate and net rental growth. These assumptions drive a cash flow model that is used as the basis of the valuation

of each individual property. Additionally, there are specific judgements pertaining to ‘immature’ stores which were

defined as: stores open for five years or less alongside occupancy under 80% and UK assets under leasehold with

an unexpired lease term of ten years or less.

For key sources of estimation uncertainty disclosures and further details of the Group’s valuation method and

assumptions, refer to note 2 and 13 of the financial statements. The valuation of investment properties is also

discussed in the Audit Committee report on page 91.

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Independent auditor’s report continued

to the members of Safestore Holdings plc

Report on the audit of the financial statements continued

5. Key audit matters continued

5.1. Valuation of investment properties continued

How the scope of our audit

responded to the key audit

matter

We carried out the following audit procedures in response to the identified key audit matter:

Understanding the properties and relevant controls:

• We gained an understanding of and tested the key controls relevant to the property valuation process.

• We met with management to enhance our understanding of the portfolio.

Data provided to the valuer:

• We obtained the source data provided by management to the valuer (e.g. historical revenue, occupancy,

average rental rates and lettable area on a store by store basis) and tested a sample of the source data for

completeness and accuracy.

External valuation:

• We assessed the appropriateness of the valuer’s scope and evaluated the competence, objectivity and

capability of the valuer.

• We identified individual properties through analysis against the following criteria:

• ‘immature’ stores, defined as stores open for five years or less alongside occupancy under 80%;

• UK leasehold stores with a term of ten years or less; and

• properties which display characteristics of audit interest through analysis of key assumptions, namely

stabilised occupancy, capitalisation rate, discount rate and net rent growth.

• We investigated the properties identified and challenged the key estimates by assessing the appropriateness

through comparison with the market and our expectation.

• We met with the valuers and with the involvement of our internal real estate specialists (who are members of

the Royal Institution of Chartered Surveyors), we performed an independent assessment of the assumptions

that underpin the valuations, based on our internal real estate specialists’ knowledge of the self storage

industry and wider real estate market.

• We evaluated whether the Group’s valuation methodology remains appropriate and assessed whether

indicative rents and yields achieved in recent comparable transactions were consistent with the assumptions

used in the Group’s valuations.

• We have also challenged the valuer and management around the impact of climate change on the portfolio

valuation, if any.

• We tested the accuracy and integrity of key elements of the valuer’s model. We also recalculated the valuation

for a sample of property assets, obtained contradictory evidence where available and performed a ‘stand-back’

review to assess the sufficiency of audit evidence.

• We reconciled the external valuation reports to underlying financial records to test for completeness and

accuracy within the Group’s financial statements.

Disclosures

• We assessed the sufficiency of the Group’s valuation disclosures, including the related sensitivities.

Key observations We consider the assumptions applied in arriving at the fair value of the Group’s investment property to be

reasonable. The sensitivity disclosures are considered appropriate given the level of estimation involved and the

valuations are suitable for inclusion in the financial statements at 31 October 2023.

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of

areasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and

inevaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Group financial statements Parent company financial statements

Materiality £38.5 million (2022: £32.1 million). £7.3 million (2022: £6.2 million).

Basis for determining

materiality

2% of net assets (2022: 2% of net assets). 3% of net assets (2022: 3% of net assets).

Rationale for the benchmark

applied

We considered net assets to be a critical financial

performance measure for the Group on the basis that it

is a key metric used by management, investors, analysts

and lenders.

We considered net assets to be a critical financial

performance measure for the Company on the basis

that it is a key metric used by management, investors,

analysts and lenders.

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Report on the audit of the financial statements continued

6. Our application of materiality continued

6.1. Materiality continued

In addition to net assets, we also consider profit before income tax, adjusted for investment property and derivative fair value movements,

tobeacritical financial performance measure for the Group, which aligns closely with EPRA earnings. We applied a lower threshold of

£5.0million (2022: £6.0 million) for testing of balances impacting that measure, which has been determined as 5% (2022: 5%) of profit

beforeincome tax adjusted for investment property and derivative fair value movements.

Audit Committee reporting

threshold: £1.9m

Group materiality: £38.5m

Net assets

Group materiality

Component materiality

range: £6.7m to £21.6m

Net assets:

£1,929.7m

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected

misstatements exceed the materiality for the financial statements as a whole.

Group financial statements Parent company financial statements

Performance materiality 70% (2022: 70%) of Group materiality 70% (2022: 70%) of parent company materiality

Basis and rationale for

determining performance

materiality

In determining performance materiality, we considered the following factors:

a. the quality of the control environment and whether we were able to rely on controls;

b. the low volume of uncorrected misstatements in the previous audit; and

c. turnover of management or key accounting personnel.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £1.9 million (2022: £1.6 million),

aswell as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee

on disclosure matters that we identified when assessing the overall presentation of the financial statements.

7. An overview of the scope of our audit

7.1. Identification and scoping of components

Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and assessing the

risks of material misstatement at the Group level.

We have determined that there are four components within the Group: United Kingdom, France, Spain and Benelux operations. The Group audit

teamhas performed a full scope audit of the UK component and a French component audit team has performed a full scope audit of the French

component. In addition, the Group audit team has performed specified procedures at Group level in respect of the Spanish and Benelux components.

7.2. Our consideration of the control environment

From our understanding of the Group and after assessing relevant controls, we tested and relied on controls in performing our audit of self

storage income.

In addition, we have obtained an understanding of the relevant controls such as those relating to the financial reporting cycle, and those

inrelation to our key audit matter.

Revenue

Profit

before tax

Total

assets

Full audit scope 94%

Specified audit

procedures 6%

Full audit scope 98%

Specified audit

procedures 2%

Full audit scope 99%

Specified audit

procedures 1%

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Independent auditor’s report continued

to the members of Safestore Holdings plc

Report on the audit of the financial statements continued

7. An overview of the scope of our audit continued

7.2. Our consideration of the control environment continued

The Group uses the following application systems for the recording and reporting of its financial statements:

• SpaceManager

• Access Dimensions

We involved IT specialists to assess the relevant controls over these systems. Working with our IT specialists, we identified and assessed relevant

risks arising from each relevant IT system. We obtained an understanding of the IT environment as part of these risk assessment procedures.

Wefurther performed the following procedures:

• determined whether each general IT control, individually or in combination with other controls, was appropriately designed to address the risk;

• obtained sufficient evidence to assess the operating effectiveness of the controls across the full audit period; and

• performed additional procedures where required if there were exceptions to the operation of those controls, including relevant mitigating controls.

From our understanding of the group and after assessing relevant controls, we tested the relevant controls relating to self storage income,

however we do not take a controls reliance approach for any substantive testing. Additionally, we obtained an understanding of the relevant

controls such as those relating to the financial reporting cycle, and those in relation to our key audit matter.

7.3. Our consideration of climate-related risks

We have made enquiries of management to understand the processes in place to assess the potential impact of climate change on the business

and the financial statements. Management considers climate change to be a principal risk which particularly impacts the cost of retrofitting stores

to improve their sustainability credentials and comply with future regulations. These risks are consistent with those identified through our own risk

assessment process.

As part of our identification of key audit matters, we consider there to be a risk in relation to climate change as part of the valuation of investment

properties. There is a risk that the valuation does not include the relevant assumptions around climate change, principally capital expenditure

required to bring the stores up to a certain environmental standard, to the extent assumed by a third party when determining fair value.

We challenged the valuer and management as to the assumptions included, and considered their reasonableness with the assistance of our

internal real estate specialists. We have reviewed the disclosures in the principal risk section and note 2 of the Annual Report and consider that

management has appropriately disclosed the current risk that has been identified.

7.4. Working with other auditors

We instructed the French component auditor to perform the audit of the France component and supervised its work through regular

communication. As the Group team, we attended a site visit in Paris and met local management. We attended its local audit close meeting with

the local management team as well as evaluated the outputs of its work in person and challenged their conclusions as part of our component

oversight role.

Our component audit work was executed at levels of materiality applicable to each individual component which were lower than Group

materiality, ranging from £6.7 million to £21.6 million (2022: £5.6 million to £17.4 million). In addition, for the lower materiality threshold described

above, our component thresholds ranged from £0.9 million to £2.8 million (2022: £1.1 million to £3.4 million).

8. Other information

The other information comprises the information included in the Annual Report, other than the financial

statements and our auditor’s report thereon. The Directors are responsible for the other information contained

within the Annual Report.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information

ismaterially inconsistent with the financial statements or our knowledge obtained in the course of the audit,

orotherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine

whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work

we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact.

We have nothing to report

in this regard.

9. Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial statements

and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the parent company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors

either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.

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Report on the audit of the financial statements continued

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

butisnot a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected

toinfluence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

11. Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,

outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable

ofdetecting irregularities, including fraud, is detailed below.

11.1. Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and

regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration

policies, key drivers for Directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management, internal audit, the Directors and the Audit Committee about their own identification and assessment

ofthe risks of irregularities, including those that are specific to the Group’s sector;

• any matters we identified having obtained and reviewed the Group’s documentation of its policies and procedures relating to:

• identifying, evaluating and complying with laws and regulations and whether it was aware of any instances of non-compliance;

• detecting and responding to the risks of fraud and whether it has knowledge of any actual, suspected or alleged fraud;

• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

• the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists,

including tax, IT, climate and property valuation specialists regarding how and where fraud might occur in the financial statements and any

potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the

greatest potential for fraud in the assumptions used in the valuation of investment properties. In common with all audits under ISAs (UK), we are

also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and

regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and

regulations we considered in this context included the UK Companies Act, Listing Rules and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance

with which may be fundamental to the Group’s ability to operate or to avoid a material penalty.

11.2. Audit response to risks identified

As a result of performing the above, we identified the valuation of the investment properties as a key audit matter related to the potential risk of

fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed

inresponse to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws

and regulations described as having a direct effect on the financial statements;

• enquiring of management, the Audit Committee and legal counsel concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business

rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal

specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations

throughout the audit.

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Independent auditor’s report continued

to the members of Safestore Holdings plc

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the Directors’ report for the financial year for which the financial statements are prepared

isconsistent with the financial statements; and

• the strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the Group and the parent company and their environment obtained in the course of the audit,

wehave not identified any material misstatements in the strategic report or the Directors’ report.

13. Corporate governance statement

The Listing Rules require us to review the Directors’ statement in relation to going concern, longer term viability and that part of the corporate

governance statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance

statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• the Directors’ statement with regard to the appropriateness of adopting the going concern basis of accounting and any material uncertainties

identified set out on page 122;

• the Directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period is appropriate

set out on page 42;

• the Directors’ statement on fair, balanced and understandable set out on page 126;

• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 35 to 40;

• the section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set out on page 83; and

• the section describing the work of the Audit Committee set out on page 90.

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the parent company, or returns adequate for our

audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns.

We have nothing to report

inrespect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of

Directors’ remuneration have not been made or the part of the Directors’ remuneration report to be audited

is not in agreement with the accounting records and returns.

We have nothing to report

inrespect of these matters.

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the Audit Committee, we were appointed by the shareholders on 12 October 2014 to audit the financial

statements for the year ended 31 October 2014 and subsequent financial periods. The period of total uninterrupted engagement including

previous renewals and re-appointments of the firm is ten years, covering the years ended 31 October 2014 to 31 October 2023.

15.2. Consistency of the audit report with the additional report to the Audit Committee

Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in accordance with ISAs (UK).

16. Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.

Ourauditwork has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an

auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than

the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As required by the Financial Conduct Authority (“FCA”) Disclosure Guidance and Transparency Rule (“DTR”) 4.1.14R, these financial statements

form part of the European Single Electronic Format (“ESEF”) prepared Annual Financial Report filed on the National Storage Mechanism of the

UK FCA in accordance with the ESEF Regulatory Technical Standard (“ESEF RTS”). This auditor’s report provides no assurance over whether the

Annual Financial Report has been prepared using the single electronic format specified in the ESEF RTS.

Stephen Craig FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

17 January 2024

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		Group
		2023	2022
	Notes	£’m	£’m
Revenue	3, 4	224.2	212.5
Cost of sales		(69.9)	(63.0)
Gross profit		154.3	149.5
Administrative expenses		(17.7)	(27.1)
Share of loss in associate	12	—	(0.3)
Underlying EBITDA		142.2	135.1
Exceptional items	5	—	(0.1)
Share-based payments		(3.5)	(11.2)
Depreciation and variable lease payments		(2.1)	(1.3)
Share of associate’s depreciation, interest and tax		—	(0.4)
Operating profit before gains on investment properties and other exceptional gains		136.6	122.1
Gain on investment properties	13	93.8	381.6
Other exceptional gains	5	—	10.8
Operating profit	4, 6	230.4	514.5
Finance income	8	0.8	2.0
Finance expense	8	(23.4)	(17.7)
Profit before income tax		207.8	498.8
Income tax charge	9	(7.6)	(35.9)
Profit for the year		200.2	462.9
Earnings per share for profit attributable to the equity holders
– basic (pence)	11	92.2	219.5
– diluted (pence)	11	91.8	212.4

The financial results for both years relate to continuing operations.

Underlying EBITDA is an Alternative Performance Measure and is defined as operating profit before exceptional items, share-based payments,

corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments and the share of associate’s

depreciation, interest and tax.

The notes on pages 138 to 169 are an integral part of these consolidated financial statements.

Consolidated statement of comprehensive income

for the year ended 31 October 2023

	Group
	2023	2022
	£’m	£’m
Profit for the year	200.2	462.9
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Currency translation differences	7.1	8.0
Net investment hedge	(2.9)	(4.6)
Other comprehensive income, net of tax	4.2	3.4
Total comprehensive income for the year	204.4	466.3

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Consolidated income statement

for the year ended 31 October 2023

		Group
		2023	2022
	Notes	£’m	£’m
Assets
Non-current assets
Investment in associates	12	4.1	1.8
External valuation of investment properties, net of lease liabilities		2,681.1	2,457.8
Add-back of lease liabilities		101.2	95.1
Investment properties under construction		108.6	94.5
Total investment properties	13	2,890.9	2,647.4
Property, plant and equipment	14	5.2	3.4
Deferred tax assets	22	6.6	0.8
		2,906.8	2,653.4
Current assets
Inventories		0.4	0.3
Derivative financial instruments	20	—	1.7
Trade and other receivables	16	32.7	31.2
Amounts due from associates	16	0.1	—
Cash and cash equivalents	17	16.9	20.9
		50.1	54.1
Total assets		2,956.9	2,707.5
Current liabilities
Bank borrowings	19	(44.5)	(101.7)
Trade and other payables	18	(52.4)	(62.7)
Current income tax liabilities		(0.4)	(0.8)
Lease liabilities	21	(13.1)	(13.2)
		(110.4)	(178.4)
Non-current liabilities
Bank borrowings	19	(681.3)	(522.1)
Deferred income tax liabilities	22	(139.2)	(129.0)
Lease liabilities	21	(88.3)	(82.2)
Provisions	27	(2.6)	(2.4)
		(911.4)	(735.7)
Total liabilities		(1,021.8)	(914.1)
Net assets		1,935.1	1,793.4
Equity
Ordinary share capital	23	2.2	2.1
Share premium		62.0	61.8
Translation reserve		12.7	8.5
Retained earnings		1,858.2	1,721.0
Total equity		1,935.1	1,793.4

These financial statements were authorised for issue by the Board of Directors on 16 January 2024 and signed on its behalf by:

A Jones F Vecchioli

Chief Financial Officer Chief Executive Officer

Company registration number: 04726380

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Consolidated balance sheet

as at 31 October 2023

			Group
	Share	Share	Translation	Retained
	capital	premium	reserve	earnings	Total
	£’m	£’m	£’m	£’m	£’m
Balance at 1 November 2021	2.1	61.3	5.1	1,306.4	1,374.9
Comprehensive income
Profit for the year	—	—	—	462.9	462.9
Other comprehensive income
Currency translation differences	—	—	8.0	—	8.0
Net investment hedge	—	—	(4.6)	—	(4.6)
Total other comprehensive income	—	—	3.4	—	3.4
Total comprehensive income	—	—	3.4	462.9	466.3
Transactions with owners
Dividends (note 10)	—	—	—	(56.9)	(56.9)
Increase in share capital	—	0.5	—	—	0.5
Employee share options	—	—	—	8.6	8.6
Transactions with owners	—	0.5	—	(48.3)	(47.8)
Balance at 1 November 2022	2.1	61.8	8.5	1,721.0	1,793.4
Comprehensive income
Profit for the year	—	—	—	200.2	200.2
Other comprehensive income
Currency translation differences	—	—	7.1	—	7.1
Net investment hedge	—	—	(2.9)	—	(2.9)
Total other comprehensive income	—	—	4.2	—	4.2
Total comprehensive income	—	—	4.2	200.2	204.4
Transactions with owners
Dividends (note 10)	—	—	—	(65.9)	(65.9)
Increase in share capital and share premium	0.1	0.2	—	—	0.3
Employee share options	—	—	—	2.9	2.9
Transactions with owners	0.1	0.2	—	(63.0)	(62.7)
Balance at 31 October 2023	2.2	62.0	12.7	1,858.2	1,935.1

The translation reserve balance of £1 2. 7 million (FY2022: £8. 5 million) comprises all foreign exchange differences arising from the translation of

the financial statements of foreign operations and the impact of the net investment hedge. The cumulative impact of the net investment hedge

included within this reserve is a net expense of £2.8 million (FY2022: £0. 1 million).

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Consolidated statement of changes in shareholders’ equity

for the year ended 31 October 2023

		Group
		2023	2022
	Notes	£’m	£’m
Cash flows from operating activities
Cash generated from operations	24	128.4	132.2
Interest received		—	0.1
Interest paid		(24.9)	(16.9)
Tax paid		(5.5)	(5.6)
Net cash inflow from operating activities		98.0	109.8
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired	12	—	(111.5)
Investment in associates	12	(2.3)	(0.8)
Expenditure on investment properties and development properties		(119.0)	(95.2)
Proceeds from disposal of investment properties		—	6.4
Proceeds from disposal of land		—	1.0
Purchase of property, plant and equipment		(2.9)	(1.0)
Proceeds from sale of property, plant and equipment		—	0.2
Net cash outflow from investing activities		(124.2)	(200.9)
Cash flows from financing activities
Issue of share capital		0.2	0.5
Equity dividends paid	10	(65.9)	(56.9)
Proceeds from borrowings		108.4	266.1
Repayment of borrowings		(7.1)	(134.0)
Exceptional swap termination	8	—	0.5
Financial instruments income	8	0.4	1.3
Debt issuance costs		(4.9)	(0.1)
Principal payment of lease liabilities		(8.8)	(8.4)
Net cash inflow from financing activities		22.3	69.0
Net decrease in cash and cash equivalents		(3.9)	(22.1)
Exchange loss on cash and cash equivalents		(0.1)	(0.2)
Cash and cash equivalents at 1 November		20.9	43.2
Cash and cash equivalents at 31 October	17, 25	16.9	20.9

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Consolidated cash flow statement

for the year ended 31 October 2023

1. General information

Safestore Holdings plc (the “Company”) and its subsidiaries (together, the “Group”) provide self storage facilities to customers throughout the UK,

Paris, Spain, the Netherlands, and Belgium. The Company is a public limited company, which is listed on the London Stock Exchange and

incorporated and domiciled in the UK, England and Wales. The Company operates as the ultimate parent company of the Group. The address

of its registered office is Brittanic House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT.

2. Summary of significant accounting policies

The principal accounting policies of the Group are set out below. These policies have been consistently applied to each of the years presented,

unless otherwise stated.

Basis of preparation

The consolidated financial statements have been prepared in accordance with United Kingdom adopted International Financial Reporting

Standards (“IFRS”) and International Financial Reporting Interpretations Committee (“IFRIC”) interpretations. They also comply with those parts

of the Companies Act 2006 applicable to companies reporting under IFRS.

The Group consolidated financial statements are presented in Sterling and are rounded to the nearest £0.1 million, unless otherwise stated.

They are prepared on a going concern basis under the historical cost convention as modified by the revaluation of investment properties and the

fair value of derivative financial instruments.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and assumptions that

affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses

during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual

amounts may differ from those estimates.

Going concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than twelve

months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing this consolidated financial information.

In assessing the Group’s going concern position as at 31 October 2023, the Directors have considered a number of factors, including the current

balance sheet position, the principal and emerging risks which could impact the performance of the Group and the Group’s strategic and

financial plan. Consideration has been given to compliance with borrowing covenants along with the uncertainty inherent in future financial

forecasts. The Directors considered the most recent three-year outlook approved by the Board. In the context of the current environment, four

plausible scenarios were applied to the plan, including a reverse stress test scenario. These were based on the potential financial impact of the

Group’s principal risks and uncertainties and the specific risks associated with the cost of living crisis and the conflict in Ukraine. These scenarios

are differentiated by the impact of demand and enquiry levels, average rate growth and the level of cost savings. A scenario was also performed

where we carried out a reverse stress test to model what would be required to breach ICR and LTV covenants, which indicated highly improbable

changes would be needed before any issues were to arise. In November 2022, the Group completed the refinancing of its Revolving Credit

Facilities (“RCF”) which were due to expire in June 2023. The previous £250 million and €70 million revolving credit facilities have been replaced with

a single multi-currency unsecured £400 million facility, with a four-year term with two one-year extension options (available headroom £197 million).

One tranche of Private Placement notes matures in 2024 and it has been assumed this will be renewed at market rates The impact of these

scenarios has been reviewed against the Group’s projected cash flow position and financial covenants over a three-year period. Should any of

these scenarios, which are differentiated by the impact of demand and enquiry levels, average rate growth and the level of cost savings, occur,

clear mitigating actions are available to ensure that the Group remains liquid and able to meet its liabilities as they fall due. The financial position

of the Group, including details of its financing and capital structure, is set out in the financial review section of this report. Further details of the

Group’s viability statement are set out on page 42.

Standards, amendments to standards and interpretations issued and applied

The following new or revised accounting standards or IFRIC interpretations are applicable for the first time in the year ended 31 October 2023:

• Amendments to IFRS 3 References to the Conceptual Framework in IFRS Standards

• Amendments to IAS 16 Property, Plant and Equipment – Proceeds before Intended Use

• Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract

• Annual Improvements to IFRS Standards 2018–2020 Cycle

The adoption of the standards and interpretations has not significantly impacted these financial statements and any changes to our accounting

policies as a result of their adoption have been reflected in this note.

New and revised IFRSs in issue but not yet effective

At the date of authorisation of these financial statements, a number of new standards and amendments to standards and interpretations have

been issued but are not yet effective for the current accounting period. The Directors do not expect these standards to have a material impact

on the financial statements of the Group or Company.

• IFRS 17 Insurance Contracts

• Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policy

• Amendments to IAS 8 Definition of Accounting Estimate

• Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction

• Amendments to IAS 1 Classification of Liabilities as Current or Non-current

• Amendments to IAS 28 and IFRS 10 Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture

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Notes to the financial statements

for the year ended 31 October 2023

2. Summary of significant accounting policies continued

Basis of consolidation and business combinations

The consolidated financial statements incorporate the financial statements of the Company and all its subsidiary undertakings made up to

31 October each year. Subsidiaries are entities controlled by the Company. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date

of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those

used by the Group.

All intra-group transactions, balances and unrealised gains on transactions are eliminated on consolidation. Unrealised losses are also eliminated

unless the transaction provides evidence of an impairment of the assets transferred.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the

acquisition is measured as the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity

instruments issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are

measured initially at their fair values at the date of acquisition. Any excess of the cost of an acquisition over the fair value of the Group’s share of

net identifiable assets including intangible assets of the acquired entity at the date of acquisition is recognised as goodwill. Any discount received

is credited to the income statement in the year of acquisition as negative goodwill on acquisition of subsidiary. Costs attributable to an acquisition

are expensed in the consolidated income statement under the heading ‘administrative expenses’.

Investment in associates

An associate is an entity over which the Group is in a position to exercise significant influence, but not control or joint control, through

participation in the financial and operating policy decisions of the investee. Significant influence is the power to participate in the financial and

operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting except

when classified as held for sale. Investments in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the

Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of

the Group’s interest in that associate (which includes any long term interests that, in substance, form part of the Group’s net investment in the

associate) are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the

associate. Where necessary, adjustments are made to the financial statements of associates to bring the accounting policies used into line with

those used by the Group. Where a Group company transacts with an associate of the Group, profits and losses are eliminated to the extent of

the Group’s interest in the relevant associate. Losses may provide evidence of an impairment of the asset transferred, in which case appropriate

provision is made for impairment.

Segmental reporting

IFRS 8 “Operating Segments” (“IFRS 8”) requires operating segments to be identified based upon the Group’s internal reporting to the chief

operating decision maker (“CODM”) to make decisions about resources to be allocated to segments and to assess their performance. The

CODM is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Group has

determined that its CODM are the Executive Directors.

An operating segment is a component of an entity:

(a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating

to transactions with other components of the same entity);

(b) whose operating results are regularly reviewed by the entity’s CODM to make decisions about resources to be allocated to the segment

and assess its performance; and

The Group’s net assets, revenue and profit before tax are attributable to one principal activity, the provision of self storage, in four geographical

reporting segments, the United Kingdom, Paris in France, Spain, and the Netherlands and Belgium in Benelux.

Segment results, assets and liabilities include items directly attributable to segments as well as those that can be allocated on a reasonable basis.

Revenue recognition

Revenue represents amounts derived from the provision of self storage services (rental space, customer goods insurance and consumables) which

fall within the Group’s activities provided in the normal course of business, net of discounts, VAT (where applicable) and other sales related taxes.

Rental income is recognised over the period for which the space is occupied by the customer on a time apportionment basis. No revenue is

recognised if there are significant uncertainties regarding recovery of the consideration due. Insurance income is recognised over the period for

which the space is occupied by the customer on a time apportionment basis.

The Group has put in place insurance arrangements whereby the Group purchases block policies from third party insurers that customers can

access, for which it pays annual premiums at the beginning of the insurance year. The Group allows customers to benefit from the policies and

charges a fee for the level of cover that the customer needs. The block policies purchased and the income earned from charging customers are

independent transactions. Although Safestore is involved in the initial handling of any customers’ insurance claims, these are passed on to the

third party insurance providers, who are responsible for all insurance payments. The Group is not exposed to insurance risk.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

2. Summary of significant accounting policies continued

Revenue recognition continued

The Group bears the inventory risk and pricing risk associated with these contracts and as such the Group acts as principal in the provision

of the access to insurance services for its customers who elect to access that insurance, and therefore revenue from insurance premiums is

reported on a gross basis. The portion of insurance premiums receivable from customers on occupied space that relates to unexpired risks at

the balance sheet date is reported as unearned premium liability in other payables.

Income for the sale of assets and consumables is recognised when the significant risks and rewards have been transferred to the buyer. For

property sales this is generally at the point of completion. Where any aspect of consideration is conditional then the revenue associated with that

conditional item is deferred. Income earned on the sales of consumable items is recognised at the point of sale.

Income from insurance claims is recognised when it is virtually certain of being received.

Foreign currency translation

Functional and presentation currency

The individual financial statements for each company are measured using the currency of the primary economic environment in which it operates

(its functional currency). For the purposes of the consolidated financial statements, the results and financial position of the Group are expressed

in Sterling, which is the presentational currency of the Group.

Transactions and balances

Foreign currency transactions are translated into the functional currency at the rates of exchange prevailing on the dates of the transactions.

At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on

the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the

rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the income statement for

the period, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly

in equity.

On consolidation, the assets and liabilities of the Group’s overseas operations are translated into the Group’s presentational currency at

exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period.

Exchange differences arising are classified as equity and are recognised as a separate component of equity, within the translation reserve.

Such translation differences are recognised as income or expense in the period in which the operation is disposed of.

Borrowing costs

All borrowing costs are recognised in the consolidated income statement in the period in which they are incurred, unless the costs are incurred

as part of the development of a qualifying asset, when they will be capitalised. Commencement of capitalisation is the date when the Group

incurs expenditure for the qualifying asset, incurs borrowing costs and undertakes activities that are necessary to prepare the assets for their

intended use when it is probable that they will result in future economic benefits to the entity and the costs can be measured reliably. In the case

of suspension of activities during extended periods, the Group suspends capitalisation. The Group ceases capitalisation of borrowing costs

when substantially all of the activities necessary to prepare the asset for use are complete, typically when a store opens.

Investment properties and investment properties under construction

Investment properties are those properties owned by the Group that are held to earn rental income, or for capital growth, or both. Investment

properties and investment properties under construction are initially measured at cost, including related transaction and borrowing costs.

After initial recognition, investment properties and investment properties under construction are held at fair value based on a market valuation

by professionally qualified external valuers at each balance sheet date.

The fair value of investment properties and investment properties under construction reflects, among other things, rental income from current

leases and assumptions about rental income from future leases in light of current market conditions. The fair value also reflects, on a similar

basis, any cash outflows that could be expected in respect of the property. Some of these outflows are recognised as a liability, including lease

liabilities in respect of leasehold land and buildings classified as investment properties; others, including variable lease payments not based on

an index or rate, are not recognised in the balance sheet.

In accordance with IAS 40, investment property held as a leasehold is stated gross of the recognised lease liability. Leasehold properties are

classified as investment properties and included in the balance sheet at fair value. The obligation to the lessor for the leasehold is included in the

balance sheet at the present value of the minimum lease payments. The minimum lease payment valuation is re-measured at the point of lease

modification and the value of the Group’s right-of-use assets is adjusted accordingly over the lease term. Gains or losses arising on changes in

the fair values of investment properties and investment properties under construction at the balance sheet date are recognised in the income

statement in the period in which they arise.

Gains or losses on sale of investment properties are calculated as the difference between the consideration received and fair value estimated

at the previous balance sheet date.

If an investment property or part of an investment property becomes owner-occupied, it is reclassified as property, plant and equipment,

and its fair value at the date of reclassification becomes its cost for accounting purposes.

Property, plant and equipment

Property, plant and equipment not classified as investment properties or investment properties under construction are stated at historical cost

less accumulated depreciation and any accumulated impairment loss. Historical cost comprises the purchase price and costs directly incurred

in bringing the asset into use.

Assets’ residual values and useful lives are reviewed and, if appropriate, adjusted at each balance sheet date. If the carrying amount of an asset

is greater than the recoverable amount then the carrying amount is written down immediately to the recoverable amount.

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Notes to the financial statements continued

for the year ended 31 October 2023

2. Summary of significant accounting policies continued

Property, plant and equipment continued

Depreciation is charged so as to write off the cost of an asset less estimated residual value of each asset over its expected useful life using the

straight-line method. The principal rates are as follows:

Owner-occupied freehold buildings 2% per annum

Motor vehicles 20–25% per annum

Computer hardware and software 15–33% per annum

Fixtures, fittings, signs and partitioning 10–15% per annum

The gain or loss arising on the retirement or disposal of an asset is determined as the difference between the net sales proceeds and the

carrying amount of the asset and is recognised in the income statement on disposal.

Impairment of tangible assets (excluding investment property)

At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those

assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates

the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is deemed to be the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future

cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset

(or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.

A reversal of an impairment loss is recognised as income immediately.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises all costs of purchase and other costs incurred in bringing the

inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the

estimated selling price less directly associated costs. Provision is made for slow-moving or obsolete stock, calculated on the basis of sales

trends observed in the year.

As at 31 October 2023 the Group held finished goods and goods held for resale of £0.4 million (FY2022: £0.3 million). The Group consumed

£1.1 million (FY2022: £0.7 million) of inventories during the year. Inventory write downs were £nil for the financial year ended 31 October 2023

(FY2022: £nil). Inventories of £nil (FY2022: £nil) are carried at fair value less costs to sell.

Leases

A right-of-use asset and corresponding lease liability are recognised at commencement of the lease. The lease liability is measured at

the present value of the lease payments, discounted at the rate implicit in the lease or, if that cannot be readily determined, at the lessee’s

incremental borrowing rate specific to the term, country, currency and start date of the lease. Lease payments include: fixed payments; variable

lease payments dependent on an index or rate, initially measured using the index or rate at commencement; the exercise price under a purchase

option if the Group is reasonably certain to exercise; penalties for early termination if the lease term reflects the Group exercising a break option;

and payments in an optional renewal period if the Group is reasonably certain to exercise an extension option or not exercise a break option.

The lease liability is subsequently measured at amortised cost using the effective interest rate method. It is re-measured at the point of lease

modification, with a corresponding adjustment to the right-of-use asset, when there is a change in future lease payments resulting from a rent

review, change in an index or rate such as inflation, or change in the Group’s assessment of whether it is reasonably certain to exercise a

purchase, extension or break option.

The corresponding asset is initially measured at cost, comprising: the initial lease liability; any lease payments already made less any lease

incentives received; initial direct costs; and any dilapidation or restoration costs. The Group has two categories of assets in respect of leases:

those in respect of leases related to its leasehold properties, classified as investment property, and an occupational lease for its Head Office in

France, classified as a right-of-use asset under IFRS 16. The right-of-use assets classified as investment property are subsequently measured at

fair value, gross of the lease liability. The right-of-use asset in respect of its occupational leases is classified as property, plant and equipment and

is subsequently depreciated over the length of the lease.

Leases of low value assets and short term leases of twelve months or less are expensed to the Group consolidated income statement.

Variable lease payments, being the difference between the rent review accruals that will become payable but not yet finalised and the minimum

lease payments of the lease liability on current actual rent paid, are charged as expenses in the years in which they are payable.

Finance charges are charged directly against income, unless they are directly attributable to qualifying assets, in which case they are capitalised

in accordance with the Group’s general policy on borrowing costs.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

2. Summary of significant accounting policies continued

Financial instruments

(a) Financial assets

Financial assets are classified as financial assets at fair value through profit or loss (“FVTPL”) or at amortised cost as appropriate.

The Group determines the classification of its assets at initial recognition.

Financial assets are de-recognised only when the contractual right to the cash flows from the financial asset expires or the Group transfers

substantially all risks and rewards of ownership.

A financial asset is measured at amortised cost if it meets both of the following conditions:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost as described above are measured through FVTPL. This includes all derivative

financial assets.

Financial assets at FVTPL – these assets are subsequently measured at fair value. Net gains and losses, including any interest, are recognised

in profit or loss.

Financial assets at amortised cost – these assets are subsequently measured at amortised cost using the effective interest method.

The amortised cost is reduced by impairment losses (expected losses). Interest income, foreign exchange gains and losses and impairment

are recognised in profit or loss. Any gain or loss on de-recognition is recognised in profit or loss.

The Group has the following classes of financial assets:

• Trade and other receivables – trade receivables are initially recognised at transaction price. Other receivables are initially recognised at fair

value. Subsequently, these assets are measured at amortised cost using the effective interest method, less provision for expected credit losses.

• Cash and cash equivalents – cash and cash equivalents represent only liquid assets with original maturity of 90 days or less. Bank overdrafts

that cannot be offset against other cash balances are shown within borrowings in current liabilities on the balance sheet. Cash and cash

equivalents are also classified as amortised cost. They are subsequently measured at amortised cost. Cash and cash equivalents include

cash in hand, deposits at call with banks, and other short term, highly liquid investments with original maturities of three months or less.

(b) Impairment of financial assets

The Group applies the IFRS 9 simplified approach to measuring expected credit losses (“ECLs”) which uses a lifetime expected loss allowance

on trade receivables. The expected credit losses are estimated using a provisions matrix based upon the Group’s historical credit loss

experience and geographic business unit, adjusted for factors that are specific to the debtors, general economic conditions, and an assessment

of both the current and forecast direction of conditions at the reporting date, including time value of money where appropriate.

Loss allowances for other receivables are initially measured at an amount equal to twelve months’ ECLs and subsequently it is assessed whether

the credit risk has increased significantly since initial recognition. When determining whether the credit risk of a financial asset has increased

significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant

and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s

historical experience and informed credit assessment and including forward-looking information. If the credit risk increased significantly, the loss

allowance is then measured using the lifetime ECL. The Group considers a financial asset to be in default when the borrower is unlikely to pay its

credit obligations to the Group in full.

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for

trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and

losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost

using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on

de-recognition is also recognised in profit or loss.

The Group has the following classes of financial liabilities:

• Trade and other payables – trade and other payables are initially recognised at fair value. Subsequently, they are measured at amortised

cost using the effective interest rate method.

• Borrowings – interest-bearing bank loans and overdrafts are initially recognised at fair value, net of directly attributable transaction costs.

Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in

the income statement using the effective interest method and are included within the carrying amount of the instrument to the extent that they

are not settled in the period in which they arise. Where fees are payable in relation to raising debt the costs are disclosed in the cash flow

statement within financing activities.

Where existing borrowings are replaced by others from the same lenders on substantially different terms, or the terms of existing borrowings

are substantially modified, such an exchange or modification is treated as a de-recognition of the original borrowings and the recognition of

new borrowings, and the difference in the respective carrying amounts, including issuance costs, is recognised in the income statement.

Otherwise, issuance costs incurred on refinancing are offset against the carrying value of borrowings.

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Notes to the financial statements continued

for the year ended 31 October 2023

2. Summary of significant accounting policies continued

Financial instruments continued

(d) Derivative financial instruments

The Group uses derivative financial instruments such as interest rate swaps, cross-currency swaps, and foreign exchange swaps, to hedge risks

associated with fluctuations on borrowings and foreign operations transactions. Such derivatives are initially recognised and measured at fair

value on the date a derivative contract is entered into and subsequently re-measured at fair value at each reporting date. The gain or loss on

re-measurement is taken to finance expense in the income statement. Interest costs for the period relating to derivative financial instruments,

which economically hedge borrowings, are recognised within interest payable on bank loans and overdrafts. Other fair value movements on

derivative financial instruments are recognised within fair value movement of derivatives. Designation as part of an effective hedge relationship

occurs at inception of a hedge relationship. Currently, the Group does not have any cash flow hedges or fair value hedges.

The borrowings denominated in foreign currency are used to hedge net assets. The effective part of any gain or loss on borrowings that are

designated as a hedge of a net investment in a foreign operation is recognised in other comprehensive income and presented in the translation

reserve in equity and is subsequently recognised in the Group income statement as part of the profit or loss on disposal of the net investment.

The ineffective portion of the gain or loss is recognised immediately within trading profit in the Group income statement.

Taxation including deferred tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement

because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable

or deductible. The Group’s liability for current tax is calculated using tax rates for that period that have been enacted or substantively enacted by

the balance sheet date.

Deferred tax is provided on items that may become taxable at a later date, on temporary differences between the balance sheet value and the

tax base value, on an undiscounted basis. Deferred tax liabilities are generally recognised for taxable temporary differences and deferred tax

assets are recognised to the extent that it is probable that taxable profits will be available, against which deductible temporary differences can

be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer

probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates

substantively enacted at the balance sheet date that are expected to apply in the period when the liability is settled, or the asset is realised.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to set off current tax assets against current tax liabilities.

Employee benefit costs

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-managed

retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s obligations under the schemes are

equivalent to those arising in a defined contribution retirement benefit scheme.

Share capital

Ordinary shares are classified as equity.

Costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Share-based payments

Share-based incentives are provided to employees under the Group’s Long Term Incentive Plan and employee Sharesave schemes. The Group

recognises a compensation cost in respect of these schemes that is based on the fair value of the awards, measured using Black-Scholes or

Monte Carlo valuation methodologies. For equity-settled schemes, the fair value is determined at the date of grant and is not subsequently

re-measured unless the conditions on which the award was granted are modified. For cash-settled schemes, the fair value is determined at the

date of grant and is re-measured at each balance sheet date until the liability is settled. Generally, the compensation cost is recognised on a

straight-line basis over the vesting period. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to the

failure to satisfy service conditions or non-market performance conditions.

Climate change

In preparing the financial statements, the Directors have considered the impact of climate change, particularly in the context of the climate

change risks identified in the sustainability section of the strategic report and the Group’s stated target of operational net zero carbon emissions

by 2035. These considerations did not have a material impact on the financial reporting judgements and estimates in the current year.

This reflects the conclusion that climate change will have a limited exposure and vulnerability on the Group’s investment property portfolio, the

carrying value of non-current assets and the estimates of future profitability used in our assessment of the recoverability of deferred tax assets.

Key sources of estimation uncertainty

The preparation of consolidated financial statements under IFRS requires the Directors to make judgements, estimates and assumptions that

may affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual outcomes may

therefore differ from these judgements, estimates and assumptions.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period

in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both

current and future periods.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

2. Summary of significant accounting policies continued

Key sources of estimation uncertainty continued

The following key source of estimation uncertainty has significant risk of causing a material adjustment, within the next financial year, to the

carrying amounts of assets and liabilities within the consolidated financial statements:

Estimate of fair value of investment properties and investment properties under construction

The Group values its investment properties using a discounted cash flow methodology which is based on projections of net operating income.

Principal assumptions and management’s underlying estimation of the fair value of those relate to: stabilised occupancy levels; expected future

growth in storage rental income and operating costs; maintenance requirements; capitalisation rate; and discount rates. There are inter-relationships

between the valuation inputs and they are primarily determined by market conditions. The effect of an increase in more than one input could be to

magnify the impact on the valuation. However, the impact on the valuation could be offset by the inter-relationship of two inputs moving in opposite

directions, e.g. an increase in rent may be offset by a decrease in occupancy, resulting in minimal net impact on the valuation. For immature stores,

these underlying estimates hold a higher risk of uncertainty, due to the unproven nature of its cash flows. C&W have considered Safestore’s

commitment to operational net zero carbon emissions by 2035 and the impacts that this could have on each of the Group’s investment properties.

A more detailed explanation of the background, methodology and estimates made by management that are adopted in the valuation of the

investment properties, as well as detailed sensitivity analysis, is set out in note 13 to the financial statements.

Non-GAAP financial information/Alternative Performance Measures

The Directors have identified certain measures that they believe will assist the understanding of the performance of the business. The measures

are not defined under IFRS and they may not be directly comparable with other companies’ adjusted measures. The non-GAAP/Alternative

Performance Measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but they have been included

as the Directors consider them to be important comparables and key measures used within the business for assessing performance.

The following are the key non-GAAP/Alternative Performance Measures identified by the Group:

• The Group defines exceptional items to be those that warrant, by virtue of their nature, size or frequency, separate disclosure on the face of

the income statement where, in the opinion of the Directors, this enhances the understanding of the Group’s financial performance.

• Underlying EBITDA is an Alternative Performance Measure and is defined as operating profit before exceptional items, share-based payments,

corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments and the share of associate’s

depreciation, interest and tax. Management considers this presentation to be representative of the underlying performance of the business,

as it removes the income statement impact of items not fully controllable by management, such as the revaluation of derivatives and

investment properties, and the impact of exceptional credits, costs and finance charges. A reconciliation of statutory operating profit to

Underlying EBITDA can be found in the financial review on page 20.

• Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined

as profit or loss for the period after tax but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment

properties and the associated tax impacts. The Company then makes further company-specific adjustments for the impact of exceptional

items, net exchange gains/losses recognised in net finance costs, exceptional tax items, and deferred and current tax in respect of these

adjustments. The Company also adjusts for IFRS 2 share-based payment charges. This adjusted earnings is divided by the diluted number of

shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated

National Insurance element). Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the

associated National Insurance element). The financial statements disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis and

will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest. A reconciliation of statutory basic

Earnings per Share to Adjusted Diluted EPRA Earnings per Share can be found in note 11.

• EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”). EPRA NTA is considered to be the most relevant measure for the Group’s

business which provides sustainable long term progressive returns and is now the primary measure of net assets. The basis of calculation,

including a reconciliation to reported net assets, is set out in note 15.

• Like-for-like figures are presented to aid in the comparability of the underlying business as they exclude the impact on results of purchased,

sold, opened or closed stores.

• Constant exchange rate (“CER”) figures are provided in order to present results on a more comparable basis, removing foreign

exchange movements.

3. Revenue

Analysis of the Group’s operating revenue can be found below:

	2023	2022
	£’m	£’m
Self storage income	187.2	178.0
Insurance income	25.5	23.9
Other non-storage income	11.5	10.6
Total revenue	224.2	212.5

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Notes to the financial statements continued

for the year ended 31 October 2023

4. Segmental analysis

The segmental information presented has been prepared in accordance with the requirements of IFRS 8. The Group’s revenue, profit before

income tax and net assets are attributable to one activity: the provision of self storage accommodation and related services. This is based on the

Group’s management and internal reporting structure.

Safestore is organised and managed in four operating segments, based on geographical areas, being the United Kingdom, Paris in France,

Spain, and the Netherlands and Belgium in Benelux.

The chief operating decision maker, being the Executive Directors, identified in accordance with the requirements of IFRS 8, assesses the

performance of the operating segments on the basis of Underlying EBITDA, which is defined as operating profit before exceptional items,

share-based payments, corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments, and the

share of associate’s depreciation, interest and tax.

The operating profits and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

	UK	Paris	Spain	Benelux	Group
Year ended 31 October 2023	£’m	£’m	£’m	£’m	£’m
Continuing operations
Revenue	166.5	43.9	3.8	10.0	224.2
Underlying EBITDA	106.2	30.5	1.1	4.4	142.2
Share-based payments	(3.1)	(0.3)	(0.1)	—	(3.5)
Variable lease payments and depreciation	(1.9)	(0.2)	—	—	(2.1)
Operating profit before gain on investment properties
and other exceptional gains	101.2	30.0	1.0	4.4	136.6
Gain/(loss) on investment properties	70.9	16.3	(0.7)	7.3	93.8
Operating profit	172.1	46.3	0.3	11.7	230.4
Net finance expense	(13.8)	(2.2)	(1.1)	(5.5)	(22.6)
Profit/(loss) before tax	158.3	44.1	(0.8)	6.2	207.8
Total assets	2,298.2	606.6	28.0	24.1	2,956.9

	UK	Paris	Spain	Benelux	Group
Year ended 31 October 2022	£’m	£’m	£’m	£’m	£’m
Continuing operations
Revenue	163.0	41.4	3.0	5.1	212.5
Share of loss in associates	(0.3)	—	—	—	(0.3)
Underlying EBITDA	103.5	28.0	1.5	2.1	135.1
Exceptional items	—	(0.1)	—	—	(0.1)
Share-based payments	(10.2)	(1.0)	—	—	(11.2)
Variable lease payments and depreciation	(1.2)	(0.1)	—	—	(1.3)
Share of associate’s depreciation, interest and tax	(0.4)	—	—	—	(0.4)
Operating profit before gain on investment properties
and other exceptional gains	91.7	26.8	1.5	2.1	122.1
Gain on investment properties	295.7	78.5	1.3	6.1	381.6
Other exceptional gains	5.7	5.1	—	—	10.8
Operating profit	393.1	110.4	2.8	8.2	514.5
Net finance (expense)/income	(14.4)	(1.6)	(0.1)	0.4	(15.7)
Profit before tax	378.7	108.8	2.7	8.6	498.8
Total assets	2,024.8	581.7	28.2	72.8	2,707.5

Inter-segment transactions are entered into under the normal commercial terms and conditions that would also be available to unrelated third

parties. There is no material impact from inter-segment transactions on the Group’s results. The segmental results exclude intercompany transactions.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

5. Exceptional items and other exceptional gains

	2023	2022
	£’m	£’m
Costs relating to corporate transactions and exceptional property taxation	—	(0.1)
Exceptional items	—	(0.1)

	2023	2022
	£’m	£’m
Valuation gain on associate buy-out	—	5.5
Gain on disposals of investment properties	—	0.2
Gain on disposal of land	—	5.1
Other exceptional gains	—	10.8

Exceptional items of £nil were incurred in the year (FY2022: £0.1 million relating to fees associated with the Group’s corporate restructuring).

In the prior year, the Group sold the Nanterre site to the Joint Venture partner of Nanterre FOCD 92 for a total price of €7.6 million excluding VAT

and including demolition cost reimbursement, where the settlement was done partially in cash of £1.0 million (€1.1 million excluding tax), and

partially in kind through the delivery of the new building at the end of the operation (estimated at €6.5 million). This resulted in a net gain on

disposal of £5.1 million (€5.9 million) included within other exceptional gains in 2022.

In addition, the Group acquired the remaining 80% equity of Safestore Storage Benelux B.V. from its previous Joint Venture partner for €53.6 million

(£45.3 million) and became a wholly owned subsidiary (note 12). The original 20% equity investment was effectively de-recognised and re-recognised

back at the fair value based on the revised equity value effective at the 30 March 2022 transaction. This resulted in a valuation gain on the associate

buy-out of £5.5 million included within other exceptional gains in 2022.

Finally, the Group sold its Birmingham Digbeth store to a third party for £6.5 million and incurred a 1% agent fee on the sale price. The carrying

value of this store included within investment properties prior to disposal was £6.2 million, resulting in a gain on disposal of investment properties

of £0.2 million included within other exceptional gains in 2022.

6. Operating profit

The following items have been charged/(credited) in arriving at operating profit:

		2023	2022
	Notes	£’m	£’m
Staff costs	26	30.0	38.1
Inventories: cost of inventories recognised as an expense (included in cost of sales)	2	1.1	0.7
Depreciation on property, plant and equipment	14	1.3	1.0
Gain on investment properties	13	(93.8)	(381.6)
Variable lease payments payable under lease liabilities		0.8	0.3

7. Fees paid to auditor

During the year, the Group (including its overseas subsidiaries) obtained the following services from the Company’s auditor at costs

detailed below:

	2023	2022
	£’m	£’m
Audit services
Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated
financial statements	0.4	0.2
Fees payable to the Company’s auditor and its associates for the audit of the Company’s subsidiaries pursuant to legislation	—	0.2
Total audit fees	0.4	0.4
Fees for other services	0.1	0.1
Total	0.5	0.5

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146

Notes to the financial statements continued

for the year ended 31 October 2023

8. Finance income and costs

	2023	2022
	£’m	£’m
Finance income
Other interest and similar income	0.1	0.1
Interest receivable from loan to associates	—	0.1
Financial instruments income	0.4	1.3
Underlying finance income	0.5	1.5
Net exchange gains	0.3	—
Exceptional finance income	—	0.5
Total finance income	0.8	2.0
Finance costs
Interest payable on bank loans and overdraft	(15.1)	(11.9)
Amortisation of debt issuance costs on bank loan	(1.3)	(0.5)
Underlying finance charges	(16.4)	(12.4)
Interest on lease liabilities	(5.3)	(5.0)
Fair value loss of derivatives	(1.7)	(0.3)
Net exchange losses	—	—
Total finance costs	(23.4)	(17.7)
Net finance costs	(22.6)	(15.7)

The total change in fair value of derivatives reported within net finance costs for the year is a £1.7 million net loss (FY2022: £0.3 million net loss).

Included within finance income is £0.4 million relating to swaps settled in June 2023. In the prior year (FY2022: £1.3 million) received on

settlement of two €8.0 million average rate contracts acquired in March 2020 and settled in April 2022 for £0.7 million and October 2022 for

£0.6 million respectively.

9. Income tax charge

Analysis of tax charge in the year:

		2023	2022
	Note	£’m	£’m
Current tax:
– current year		5.1	6.1
– prior year		—	—
		5.1	6.1
Deferred tax:
– current year		5.3	29.8
– prior year		(2.8)	—
	22	2.5	29.8
Tax charge		7.6	35.9

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

9. Income tax charge continued

Reconciliation of income tax charge

The tax for the period is lower (FY2022: lower) than the standard rate of corporation tax in the UK for the year ended 31 October 2023 of 22.5%

(FY2022: 19%). The differences are explained below:

	2023	2022
	£’m	£’m
Profit before tax	207.8	498.8
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 22.5% (FY2022: 19%)	46.8	94.8
Effect of:
– permanent differences	(6.3)	—
– profits from the tax exempt business	(32.4)	(71.5)
– deferred tax arising on acquisition of overseas subsidiary	—	4.5
– difference from overseas tax rates	0.9	8.6
– potential deferred tax assets not recognised	1.4	0.4
– utilisation of unrecognised brought forward tax losses	—	(0.9)
– prior year adjustment	(2.8)	—
Tax charge	7.6	35.9

The Group is a UK real estate investment trust (“REIT”). As a result, the Group is exempt from UK corporation tax on the profits and gains from its

qualifying property rental business in the UK, providing it meets certain conditions. Non-qualifying profits and gains of the Group remain subject to

corporation tax as normal. The Group monitors its compliance with the REIT conditions. There have been no breaches of the conditions to date.

The main rate of corporation tax in the UK increased from 19% to 25% with effect from 1 April 2023. Accordingly, the Group’s results for this

accounting period are taxed at a blended effective rate of 22.5% (FY2022: 19%).

Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

10. Dividends per share

The dividend paid in 2023 was £65.9 million (30.30 pence per share) (FY2022: £56.9 million (27.00 pence per share)). A final dividend in respect

of the year ended 31 October 2023 of 20.20 pence (FY2022: 20. 40 pence) per share, amounting to a total final dividend of £44.1 million (FY2022:

£42.8 million), is to be proposed at the AGM on 13 March 2024. The ex-dividend date will be 7 March 2024 and the record date will be 8 March

2024 with an intended payment date of 9 April 2024. The final dividend has not been included as a liability at 31 October 2023.

The Property Income Distribution (“PID”) element of the final dividend is 15.15 pence (FY2022: 20.4 pence), making the PID payable for the year

17.62 pence (FY2022: 22.75 pence) per share.

11. Earnings per Share

Basic Earnings per Share (“EPS”) is calculated by dividing the profit attributable to equity holders of the Company by the weighted average

number of ordinary shares in issue during the year excluding ordinary shares held as treasury shares. Diluted EPS is calculated by adjusting the

weighted average number of ordinary shares to assume conversion of all dilutive potential shares. The Company has one category of dilutive

potential ordinary shares: share options. For the share options, a calculation is performed to determine the number of shares that could have

been acquired at fair value (determined as the average annual market price of the Company’s shares) based on the monetary value of the

subscription rights attached to the outstanding share options. The number of shares calculated as above is compared with the number of shares

that would have been issued assuming the exercise of the share options.

		Year ended 31 October 2023			Year ended 31 October 2022
	Earnings	Shares	Pence	Earnings	Shares	Pence
	£’m	million	per share	£’m	million	per share
Basic	200.2	217.2	92.2	462.9	210.9	219.5
Dilutive securities	—	0.9	(0.4)	—	7.0	(7.1)
Diluted	200.2	218.1	91.8	462.9	217.9	212.4

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Notes to the financial statements continued

for the year ended 31 October 2023

11. Earnings per Share continued

Adjusted Earnings per Share

Explanations related to the adjusted earnings measures adopted by the Group are set out in note 2 under the heading, Non-GAAP financial

information/Alternative Performance Measures, on page 144. Adjusted EPS represents profit after tax adjusted for the valuation movement on

investment properties, exceptional items, change in fair value of derivatives, exchange gains/losses, unwinding of the discount on the CGS

receivable and the associated tax thereon. The Directors consider that these alternative measures provide useful information on the performance

of the Group.

EPRA earnings and Earnings per Share before non-recurring items, movements on revaluations of investment properties and changes in the fair

value of derivatives have been disclosed to give a clearer understanding of the Group’s underlying trading performance.

		Year ended 31 October 2023			Year ended 31 October 2022
	Earnings	Shares	Pence	Earnings	Shares	Pence
	£’m	million	per share	£’m	million	per share
Basic	200.2	217.2	92.2	462.9	210.9	219.5
Adjustments:
Gain on investment properties	(93.8)	—	(43.2)	(381.6)	—	(180.9)
Exceptional items	—	—	—	0.1	—	—
Other exceptional gains	—	—	—	(10.8)	—	(5.1)
Exceptional finance income	—	—	—	(0.5)	—	(0.2)
Net exchange gain	(0.3)	—	(0.1)	—	—	—
Change in fair value of derivatives	1.7	—	0.8	0.3	—	0.1
Tax on adjustments	1.4	—	0.6	29.7	—	14.1
Adjusted	109.2	217.2	50.3	100.1	210.9	47.5
EPRA adjusted:
Fair value re-measurement of lease liabilities
add-back	(8.8)	—	(4.1)	(8.3)	—	(3.9)
Tax on lease liabilities add-back adjustment	1.1	—	0.5	1.0	—	0.5
Adjusted EPRA basic EPS	101.5	217.2	46.7	92.8	210.9	44.1
Share-based payments charge	3.5		1.6	11.2	—	5.3
Dilutive shares	—	1.9	(0.4)	—	8.0	(1.9)
Adjusted Diluted EPRA EPS	105.0	219.1	47.9	104.0	218.9	47.5

Note:

1 Adjusted Diluted EPRA EPS is defined in note 2 under, Non-GAAP financial information/Alternative Performance Measures, on page 144.

Gain on investment properties includes the fair value re-measurement of lease liabilities add-back of £8.8 million (FY2022: £8.3 million) and the

related tax thereon of £1.1 million (FY2022: £1.0 million). As an industry standard measure, EPRA earnings is presented. EPRA earnings of

£101.5 million (FY2022: £92.8 million) and EPRA Earnings per Share of 46.7 pence (FY2022: 44.1 pence) are calculated after further adjusting

for these items.

	2023	2022	Movement
EPRA adjusted income statement (non-statutory)	£’m	£’m	%
Revenue	224.2	212.5	5.5%
Underlying operating expenses (excluding depreciation and variable lease payments)	(82.0)	(77.5)	5.8%
Share of associate’s Underlying EBITDA	—	0.1	(100%)
Underlying EBITDA before variable lease payments	142.2	135.1	5.3%
Share-based payments charge	(3.5)	(11.2)	(68.8%)
Depreciation and variable lease payments	(2.1)	(1.3)	61.5%
Operating profit before fair value re-measurement lease liabilities add-back	136.6	122.6	11.4%
Fair value re-measurement of lease liabilities add-back	(8.8)	(8.3)	6.0%
Operating profit	127.8	114.3	11.8%
Net financing costs	(21.2)	(15.9)	33.3%
Share of associate’s finance charges	—	(0.4)	(100%)
Profit before income tax	106.6	98.0	8.8%
Income tax	(5.1)	(5.2)	(1.9)
Profit for the year (“Adjusted EPRA basic earnings”)	101.5	92.8	9.4%
Adjusted EPRA basic EPS	46.7 pence	44.1 pence	5.9%
Final dividend per share	20.20 pence	20.40 pence	(0.98%)

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

12. Investment in associates

	2023	2022
	£’m	£’m
PBC Les Groues SAS	1.8	1.8
CERF II German Storage Topco S.a.r.l.	2.3	—
	4.1	1.8

Safestore Storage Benelux B.V. (formerly CERF Storage JV B.V.)

Until 30 March 2022, the Group had a 20% interest in Safestore Storage Benelux B.V. (“SSB”) (formerly CERF Storage JV B.V.), a company registered

and operating in the Netherlands. SSB was accounted for using the equity method of accounting. SSB invests in carefully selected self storage

opportunities in Europe. The Group earned a fee for providing management services to SSB. This investment as an associate was considered

immaterial relative to the Group’s underlying operations. On 30 March 2022, the Group acquired the remaining 80% equity from its previous Joint

Venture partner for €53.6 million (£45.3 million) and SSB became a wholly owned subsidiary. Under IFRS 3 this transaction, where properties

were acquired through the purchase of a corporate vehicle in the year, has been judged to meet the accounting definition of an asset purchase.

PBC Les Groues SAS

The Group has a 24.9% interest in PBC Les Groues SAS (“PBC”), a company registered and operating in France. PBC is accounted for using

the equity method of accounting. PBC is the parent company of Nanterre FOCD 92, a company also registered and operating in France, which

is developing a new store as part of a wider development programme located in Paris. The development project is managed by its joint venture

partners, therefore the Group has no operational liability during this phase. During the current period there has been no material investment in

the company (31 October 2022: £0.8m). The investment is considered immaterial relative to the Group’s underlying operations. The aggregate

carrying value of the Group’s interest in PBC was £1.8m (31 October 2022: £1.8m), made up of an investment of £1.8m (31 October 2022: £1.8m).

The Group’s share of profits from continuing operations for the period was £nil (30 October 2022: £nil). The Group’s share of total comprehensive

income of associates for the period was £nil (31 October 2022: £nil).

CERF II German Storage Topco S.a.r.l.

On 1 December 2022 the Group acquired a 10.0% interest in CERF II German Storage Topco S.a.r.l. (CERF II), a company registered in

Luxembourg for which the Group has board representation. The reporting date of the financial statements for the company is 31 December.

CERF II is accounted for using the equity method of accounting. Safestore entered the German Self Storage market via a new investment with

Carlyle which acquired the myStorage business. The aggregate carrying value of the Group’s interest in CERF II was £2.3m (31 October 2022: £nil),

made up of an investment of £2.3m (31 October 2022: £nil). The Group’s share of profits from continuing operations for the period was £nil

(31 October 2022: £nil). The Group’s share of total comprehensive income of associates for the period was £nil (31 October 2022: £nil).

13. Investment properties

	External valuation		Investment
	of investment		property	Total
	properties, net of	Add-back of	under	investment
	lease liabilities	lease liabilities	construction	properties
	£’m	£’m	£’m	£’m
At 1 November 2022	2,457.8	95.1	94.5	2,647.4
Additions	67.6	17.5	56.4	141.5
Disposals	—	(3.1)	—	(3.1)
Reclassifications	42.0	—	(42.0)	—
Revaluations	103.5	—	(0.9)	102.6
Fair value re-measurement of lease liabilities add-back	—	(8.8)	—	(8.8)
Exchange movements	10.2	0.5	0.6	11.3
At 31 October 2023	2,681.1	101.2	108.6	2,890.9

The Group acquired the freehold of the Oldbury property on 22 February 2023 and Valencia property in January 2023. This resulted in the

disposal of lease liabilities with a carrying value of £2.2m and £0.9m respectively.

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Notes to the financial statements continued

for the year ended 31 October 2023

13. Investment properties continued

	External valuation		Investment
	of investment		property	Total
	properties, net of	Add-back of	under	investment
	lease liabilities	lease liabilities	construction	properties
	£’m	£’m	£’m	£’m
At 1 November 2021	1,881.8	82.1	67.4	2,031.3
Acquisition of subsidiaries	128.2	0.6	—	128.8
Additions	31.8	20.2	47.4	99.4
Disposals	(6.2)	—	—	(6.2)
Reclassifications	16.5	—	(16.5)	—
Revaluations	394.1	—	(4.2)	389.9
Fair value re-measurement of lease liabilities add-back	—	(8.3)	—	(8.3)
Exchange movements	11.6	0.5	0.4	12.5
At 31 October 2022	2,457.8	95.1	94.5	2,647.4

The gain on investment properties comprises:

		Revaluation
	Cost	on cost	Valuation
	£’m	£’m	£’m
Freehold stores
At 1 November 2022	892.7	1,142.4	2,035.1
Movement in year	126.1	75.7	201.8
At 31 October 2023	1,018.8	1,218.1	2,236.9
Leasehold stores
At 1 November 2022	133.7	289.0	422.7
Movement in year	5.5	16.0	21.5
At 31 October 2023	139.2	305.0	444.2
All stores
At 1 November 2022	1,026.4	1,431.4	2,457.8
Movement in year	131.6	91.7	223.3
At 31 October 2023	1,158.0	1,523.1	2,681.1

	2023	2022
	£’m	£’m
Revaluations of investment property and investment property under construction	102.6	389.9
Fair value re-measurement of lease liabilities add-back	(8.8)	(8.3)
	93.8	381.6

The valuation of £2,681.1 million (FY2022: £2,457.8 million) excludes £0.6 million in respect of owner-occupied property, which is included within

property, plant and equipment. Rental income earned from investment properties for the year ended 31 October 2023 was £188.5 million

(FY2022: £179.3 million).

The Group has classified the investment property and investment property under construction, held at fair value, within Level 3 of the fair value

hierarchy. There were no transfers to or from Level 3 during the year.

As described in note 2, summary of significant accounting policies, where the valuation obtained for investment property is net of all payments

to be made, it is necessary to add back the lease liability to arrive at the carrying amount of investment property at fair value. The lease liability

of £101.4 million (FY2022: £95.4 million) per note 21 differs to the £101.2 million (FY2022: £95.1 million) disclosed above as a result of accounting

for the French Head Office lease under IFRS 16. This lease is included as part of property, plant and equipment, and has a net book value of

£0.2 million as at 31 October 2023 (FY2022: £0.3 million) (note 14).

All direct operating expenses arising from investment property that generated rental income as outlined in note 3 were £82.0 million

(FY2022: £75.3 million).

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13. Investment properties continued

The freehold and leasehold investment properties have been valued as at 31 October 2023 by external valuer, Cushman & Wakefield Debenham

Tie Leung Limited (“C&W”). The valuation has been carried out in accordance with the current edition of the RICS Valuation – Global Standards,

which incorporates the International Valuation Standards and the RICS Valuation UK National Supplement (the “RICS Red Book”). The valuation

of each of the investment properties has been prepared on the basis of fair value as a fully equipped operational entity, having regard to trading

potential. Two non-trading properties were valued on the basis of fair value. The valuation has been provided for accounts purposes and, as

such, is a Regulated Purpose Valuation as defined in the RICS Red Book. In compliance with the disclosure requirements of the RICS Red Book,

C&W has confirmed that:

• the member of the RICS who has been the signatory to the valuations provided to the Group for the same purposes as this valuation has done

so since April 2020. The valuations have been reviewed by an internal investment committee comprising two valuation partners and an

investment partner, all unconnected with the assignment;

• C&W has been carrying out regular valuations for the same purpose as this valuation on behalf of the Group since October 2006;

• C&W does not provide other significant professional or agency services to the Group;

• in relation to the preceding financial year of C&W, the proportion of total fees payable by the Group to the total fee income of the firm is less

than 5%; and

• the fee payable to C&W is a fixed amount per property and is not contingent on the appraised value.

Valuation method and assumptions

The valuation of the operational self storage facilities has been prepared having regard to trading potential. Cash flow projections have been

prepared for all of the properties reflecting estimated absorption, revenue growth and expense inflation. A discounted cash flow method of

valuation based on these cash flow projections has been used by C&W to arrive at its opinion of fair value for these properties.

C&W has adopted different approaches for the valuation of the leasehold and freehold assets as follows:

Freehold and long leasehold (UK, Paris, Spain, the Netherlands, and Belgium)

The valuation is based on a discounted cash flow of the net operating income over a ten-year period and a notional sale of the asset at the end

of the tenth year.

Assumptions:

• Net operating income is based on projected revenue received less projected operating costs together with a central administration charge of

6% of the estimated annual revenue, subject to a cap and collar. The initial net operating income is calculated by estimating the net operating

income in the first twelve months following the valuation date.

• The net operating income in future years is calculated assuming either straight-line absorption from day one actual occupancy or variable

absorption over years one to four of the cash flow period, to an estimated stabilised/mature occupancy level. In the valuation the assumed

stabilised occupancy level for the trading stores (both freeholds and all leaseholds) open at 31 October 2023 averages 89.33% (FY2022: 89.18%).

The projected revenues and costs have been adjusted for estimated cost inflation and revenue growth. The average time assumed for stores

to trade at their maturity levels is 13.44 months (FY2022: 18.51 months).

• The capitalisation rates applied to existing and future net cash flows have been estimated by reference to underlying yields for industrial and

retail warehouse property, yields for other trading property types such as purpose-built student housing and hotels, bank base rates, ten-year

money rates, inflation and the available evidence of transactions in the sector. The valuation included in the accounts assumes rental growth

in future periods. If an assumption of no rental growth is applied to the external valuation, the net initial yield pre-administration expenses for

mature stores (i.e. excluding those stores categorised as ‘developing’) is 5.92% (FY2022: 6.08%), rising to a stabilised net yield pre-administration

expenses of 6.71% (FY2022: 6.74%).

• The weighted average freehold exit yield on UK freeholds is 5.75% (FY2022: 5.74%), on France freeholds is 5.61% (FY2022: 5.96%), on Spain

freeholds is 5.50% (FY2022: 5.50%), on the Netherlands freeholds is 5.15% (FY2022: 5.05%) and on Belgium freeholds is 5.00% (FY2022: 5.02%).

The weighted average freehold exit yield for all freeholds adopted is 5.72% (FY2022: 5.78%).

• The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that reflects the risk

associated with each asset. The weighted average annual discount rate adopted (for both freeholds and leaseholds) in the UK portfolio is

8.59% (FY2022: 8.40%), in the France portfolio is 8.38% (FY2022: 8.58%), in the Spain portfolio is 8.39% (FY2022: 8.29%), in the Netherlands

portfolio is 7.74% (FY2022: 7.49%) and in the Belgium portfolio is 7.99% (FY2022: 7.62%). The weighted average annual discount rate adopted

(for both freeholds and all leaseholds) is 8.54% (FY2022: 8.49%).

• Purchaser’s costs in the range of approximately 3.3% to 6.8% for the UK, 7.5% for Paris, 2.5% for Spain, 7.5% for the Netherlands and 7.5%

for Belgium have been assumed initially, reflecting the progressive SDLT rates brought into force in March 2016 in the UK, and sales plus

purchaser’s costs totalling approximately 5.3% to 8.8% (UK), 9.5% (Paris), 4.5% (Spain), 7.5% (the Netherlands) and 7.5% (Belgium) are

assumed on the notional sales in the tenth year in relation to freehold and long leasehold stores.

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Notes to the financial statements continued

for the year ended 31 October 2023

13. Investment properties continued

Valuation method and assumptions continued

Short leaseholds (UK)

The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is assumed but the discounted

cash flow is extended to the expiry of the lease. The average unexpired term of the Group’s UK short term leasehold properties is 13.2 years

(FY2022: 13.0 years). The average unexpired term excludes the commercial leases in France and Spain.

Short leaseholds (Paris)

In relation to the commercial leases in Paris, C&W has valued the cash flow projections in perpetuity due to the security of tenure arrangements

in that market and the potential compensation arrangements in the event of the landlord wishing to take possession. The valuation treatment

is therefore the same as for the freehold properties. The capitalisation rates on these stores reflect the risk of the landlord terminating the

lease arrangements.

Short leaseholds (Spain)

In relation to the commercial leases in Spain, C&W has valued the cash flow projections in perpetuity due to the nature of the lease agreements

which allows the tenant to renew the lease year-on-year into perpetuity. The valuation treatment is therefore the same as for the freehold

properties. The capitalisation rates on these stores reflect the risk of the rolling lease arrangements.

In relation to one other short leasehold in Spain, the lease allows for a five-year automatic extension beyond the initial lease expiry date subject

to neither party serving notice stating it does not wish to do so. This allows the landlord to terminate the lease at the original expiry date if it so

wishes. The same methodology has been used as for freeholds, except that no sale of the asset in the tenth year is assumed but the discounted

cash flow is extended to the expiry of the lease.

Short leaseholds (the Netherlands)

The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is assumed but the discounted cash

flow is extended to the expiry of the lease.

Short leaseholds (Belgium)

There are no short term leaseholds in Belgium.

Investment properties under construction

C&W has valued the stores in development adopting the same methodology as set out above but on the basis of the cash flow projection

expected for the store at opening and allowing for the outstanding costs to take each store from its current state to completion and full fit out,

except several recently acquired stores which have been valued at acquisition costs. C&W has allowed for carry costs and construction

contingency, as appropriate.

Immature stores: value uncertainty

C&W has assessed the value of each property individually. Where the stores in the portfolio are relatively immature and have low initial cash flow.

C&W has endeavoured to reflect the nature of the cash flow profile for these properties in its valuation, and the higher associated risks relating to

the as yet unproven future cash flow, by adjustment to the capitalisation rates and discount rates adopted. However, immature low cash flow

stores of this nature are rarely, if ever, traded individually in the market, unless as part of a distressed sale or similar situation, although there is

more evidence of such stores being traded as part of a group or portfolio transaction.

C&W states that, in practice, if an actual sale of the properties was to be contemplated then any immature low cash flow stores would normally

be presented to the market for sale, lotted or grouped with other more mature assets owned by the same entity, in order to alleviate the issue of

negative or low short term cash flow. This approach would enhance the marketability of the group of assets and assist in achieving the best price

available in the market by diluting the cash flow risk.

C&W has not adjusted its opinion of fair value to reflect such a grouping of the immature assets with other properties in the portfolio and all stores

having been valued individually. However, C&W highlights the matter to alert the Group to the manner in which the properties might be grouped

or lotted in order to maximise their attractiveness to the marketplace.

C&W considers this approach to be a valuation assumption but not a special assumption, the latter being an assumption that assumes facts that

differ from the actual facts existing at the valuation date and which, if not adopted, could produce a material difference in value.

Valuation assumption for purchaser’s costs

The Group’s investment property assets have been valued for the purposes of the financial statements after adjusting for notional purchaser’s

costs in the range of approximately 3.3% to 6.8% (UK), 7.5% (Paris), 2.5% (Spain), 7.5% (the Netherlands) and 7.5% (Belgium), as if they were sold

directly as property assets. The valuation is an asset valuation which is strongly linked to the operating performance of the business. They would

have to be sold with the benefit of operational contracts, employment contracts and customer contracts, which would be difficult to achieve

except in a corporate structure.

This approach follows the logic of the valuation methodology in that the valuation is based on a capitalisation of the net operating income after

allowing a deduction for operational cost and an allowance for central administration costs. A sale in a corporate structure would result in a

reduction in the assumed stamp duty land tax but an increase in other transaction costs reflecting additional due diligence resulting in a reduced

notional purchaser’s cost of c. 2.75% of gross value. All the significant sized transactions that have been concluded in the UK in recent years

were completed in a corporate structure. The Group therefore instructed C&W to prepare additional valuation advice on the basis of purchaser’s

cost of 2.75% of gross value which is used for internal management purposes.

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13. Investment properties continued

Valuation method and assumptions continued

Sensitivity of the valuation to assumptions

As noted in ‘Key sources of estimation uncertainty’ on page 143, self storage valuations are complex, derived from data which is not widely publicly

available and involves a degree of judgement. All other factors being equal, higher net operating income would lead to an increase in the valuation of

a store and an increase in the capitalisation rate or discount rate would result in a lower valuation, and vice versa. Higher assumptions for stabilised

occupancy, absorption rate, rental rate and other revenue, and a lower assumption for operating costs, would result in an increase in projected net

operating income, and thus an increase in valuation.

There are inter-relationships between the valuation inputs, and they are primarily determined by market conditions. The effect of an increase in more

than one input could be to magnify the impact on the valuation. However, the impact on the valuation could be offset by the inter-relationship of two

inputs moving in opposite directions, e.g. an increase in rent may be offset by a decrease in occupancy, resulting in no net impact on the valuation.

For these reasons we have classified the valuation of our property portfolio as Level 3 as defined by IFRS 13. Inputs to the valuation, some

of which are ‘unobservable’ as defined by IFRS 13, include capitalisation yields, stable occupancy rates, and time to stabilised occupancy. The

existence of an increase of more than one ‘unobservable’ input would augment the impact on the valuation. The impact on the valuation would be

mitigated by the inter-relationship between unobservable inputs moving in opposite directions. For example, an increase in stable occupancy may

be offset by an increase in yield, resulting in no net impact on the valuation. A sensitivity analysis showing the impact on valuations of changes

in capitalisation rates and stable occupancy is shown below:

					Impact of a delay
					in stabilised
		Impact of change in		Impact of a change in stabilised	occupancy
		capitalisation rates		occupancy assumption	assumption
		£’m		£’m	£’m
	25 bps decrease	25 bps increase	1% increase	1% decrease	24-month delay
Reported group	129.1	88.1	53.5	(31.9)	(16.22)

14. Property, plant and equipment

	Owner-
	occupied	Motor	Fixtures	IFRS 16
	buildings	vehicles	and fittings	leases	Total
	£’m	£’m	£’m	£’m	£’m
Cost
At 1 November 2022	1.0	0.9	7.8	0.6	10.3
Additions	0.7	0.6	1.8	—	3.1
Disposals	—	(0.1)	(0.1)	—	(0.2)
At 31 October 2023	1.7	1.4	9.5	0.6	13.2
Accumulated depreciation
At 1 November 2022	0.2	0.5	5.9	0.3	6.9
Charge for the year	—	0.2	1.0	0.1	1.3
Disposals	—	(0.1)	(0.1)	—	(0.2)
At 31 October 2023	0.2	0.6	6.8	0.4	8.0
Net book value
At 31 October 2023	1.5	0.8	2.7	0.2	5.2
At 31 October 2022	0.8	0.4	1.9	0.3	3.4

As a result of adopting IFRS 16, the Group initially recognised a right-of-use asset of £0.4 million in property, plant and equipment and a lease

liability of £0.4 million at the transition date of 1 November 2019. Due to a lease extension for this asset, this has subsequently been re-measured

by an additional £0.2 million. The additional depreciation charge for the right-of-use asset recognised during the year was £0.1 million.

The reduction in the lease liability in respect of principal repayments and interest was £0.1 million.

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Notes to the financial statements continued

for the year ended 31 October 2023

14. Property, plant and equipment continued

	Owner-
	occupied	Motor	Fixtures	IFRS 16
	buildings	vehicles	and fittings	leases	Total
	£’m	£’m	£’m	£’m	£’m
Cost
At 1 November 2021	0.8	1.0	7.0	0.4	9.2
Additions	0.2	0.2	0.8	0.2	1.4
Disposals	—	(0.3)	—	—	(0.3)
At 31 October 2022	1.0	0.9	7.8	0.6	10.3
Accumulated depreciation
At 1 November 2021	0.2	0.5	5.1	0.2	6.0
Charge for the year	—	0.1	0.8	0.1	1.0
Disposals	—	(0.1)	—	—	(0.1)
At 31 October 2022	0.2	0.5	5.9	0.3	6.9
Net book value
At 31 October 2022	0.8	0.4	1.9	0.3	3.4
At 31 October 2021	0.6	0.5	1.9	0.2	3.2

15. Net assets per share

EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”).

EPRA NTA is considered to be the most relevant measure for the Group’s business which provides sustainable long term progressive returns and

is now the primary measure of net assets, replacing the previously reported EPRA NAV metric. EPRA NTA assumes that entities buy and sell

assets, thereby crystallising certain levels of unavoidable deferred tax. Due to the Group’s REIT status, deferred tax is only provided at each

balance sheet date on properties outside the REIT regime. As a result, deferred taxes are excluded from EPRA NTA for properties within the REIT

regime. For properties outside of the REIT regime, deferred tax is included to the extent that it is expected to crystallise, based on the Group’s

track record and tax structuring.

There are no reconciling items between EPRA NTA and the previously reported EPRA NAV metric. EPRA NTA is shown in the table below:

		2023	2022
		Diluted pence		Diluted pence
	£’m	per share	£’m	per share
Balance sheet net assets	1,935.1	884	1,793.4	820
Adjustments to exclude:
Fair value of derivative financial instruments (net of deferred tax)	—		(1.7)
Deferred tax liabilities on the revaluation of investment properties	139.2		129.0
EPRA NTA	2,074.3	948	1,920.7	879
Basic net assets per share		888		848
EPRA basic NTA per share		952		908

The basic and diluted net assets per share have been calculated based on the following number of shares:

	2023	2022
	Number	Number
Shares in issue
At year end	218,039,419	211,927,497
Adjustment for Employee Benefit Trust (treasury) shares	(64,363)	(359,795)
IFRS/EPRA number of shares (basic)	217,975,056	211,567,702
Dilutive effect of Save As You Earn shares	39,269	87,562
Dilutive effect of Long Term Incentive Plan shares	860,328	6,956,633
IFRS/EPRA number of shares (diluted)	218,874,653	218,611,897

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15. Net assets per share continued

Basic net assets per share is shareholders’ funds divided by the number of shares at the year end. Diluted net assets per share is shareholders’

funds divided by the number of shares at the year end, adjusted for dilutive share options of 899,597 shares (FY2022: 7,044,195 shares). EPRA

diluted net assets per share excludes deferred tax liabilities arising on the revaluation of investment properties. The EPRA NAV, which further

excludes fair value adjustments for debt and related derivatives net of deferred tax, was £2,074.3 million (FY2022: £1,920.7 million), giving EPRA

NTA per share of 948 pence (FY2022: 879 pence). The Directors consider that these alternative measures provide useful information on the

performance of the Group.

EPRA adjusted balance sheet (non-statutory)

	2023	2022
	£’m	£’m
Assets
Non-current assets	2,906.8	2,653.4
Current assets	50.1	52.4
Total assets	2,956.9	2,705.8
Liabilities
Current liabilities	(110.4)	(178.4)
Non-current liabilities	(772.2)	(606.7)
Total liabilities	(882.6)	(785.1)
EPRA adjusted Net Asset Value	2,074.3	1,920.7
EPRA adjusted basic net assets per share	952 pence	908 pence

16. Trade and other receivables

	2023	2022
	£’m	£’m
Current
Trade receivables	21.8	20.6
Less: credit loss allowance	(5.8)	(5.5)
Trade receivables – net	16.0	15.1
Other receivables	10.8	8.9
Amounts due from associates (note 12)	0.1	—
Prepayments	5.9	7.2
	32.8	31.2

The creation and release of credit loss allowances have been included in cost of sales in the income statement.

The Group always measures the loss allowance for the trade receivables at an amount equal to lifetime expected credit loss. The expected credit

losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the

debtor’s current financial position, adjusted for factors that are specific to the debtor and an analysis of the debtors, general economic conditions

of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting

date. The Group provides in full against all receivables due over six months past due because historical experience has indicated that these

receivables are generally not recoverable.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The Group writes off a trade receivable when there is information indicating that the debtors are in severe financial difficulty and there is no

realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings.

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Notes to the financial statements continued

for the year ended 31 October 2023

16. Trade and other receivables continued

The following table details the risk profile of trade receivables based on the Group’s provision matrix:

UK	Not past due	<28 days	29–60 days	>60 days	Total
Expected credit loss rate (%)	—	6.5%	16.7%	-55.6%	7.5%
Estimated total gross carrying amount at default (£’m)	6.8	3.1	1.2	0.9	12.0
Lifetime ECL (£’m)	—	(0.2)	(0.2)	(0.6)	(1.0)
Net trade receivables as at 31 October 2023	6.8	2.9	1.0	0.3	11.0

France	Not past due	<28 days	29–60 days	>60 days	Total
Expected credit loss rate (%)	—	7.1%	-20.0%	71.9%	49.0%
Estimated total gross carrying amount at default (£’m)	1.5	1.4	0.5	6.4	9.8
Lifetime ECL (£’m)	—	(0.1)	(0.1)	(4.6)	(4.8)
Net trade receivables as at 31 October 2023	1.5	1.3	0.4	1.8	5.0

UK	Not past due	<28 days	29–60 days	>60 days	Total
Expected credit loss rate (%)	—	7.1%	25.0%	57.1%	10.1%
Estimated total gross carrying amount at default (£’m)	7.5	2.8	1.2	1.4	12.9
Lifetime ECL (£’m)	—	(0.2)	(0.3)	(0.8)	(1.3)
Net trade receivables as at 31 October 2022	7.5	2.6	0.9	0.6	11.6

France	Not past due	<28 days	29–60 days	>60 days	Total
Expected credit loss rate (%)	—	14.3%	20.0%	85.1%	57.5%
Estimated total gross carrying amount at default (£’m)	1.4	0.7	0.5	4.7	7.3
Lifetime ECL (£’m)	—	(0.1)	(0.1)	(4.0)	(4.2)
Net trade receivables as at 31 October 2022	1.4	0.6	0.4	0.7	3.1

Outstanding trade receivables in Spain, the Netherlands, and Belgium totalled £0.5 million (FY2022: £0.4 million); therefore, the risk profile for this

geography has been excluded.

The difference between expected credit loss rates in the UK and France is largely due to the differing processes for collecting overdue debt,

with legal proceedings in France typically taking significantly longer than in the UK.

The above balances are short term (including other receivables) and therefore the difference between the book value and the fair value is not

significant. Consequently, these have not been discounted.

Movement in the credit loss allowance:

	2023	2022
	£’m	£’m
Balance at the beginning of the year	5.5	4.3
Acquisition of subsidiaries	—	0.1
Amounts provided in the year	2.1	2.5
Amounts written off as uncollectable	(1.8)	(1.4)
Balance at the end of the year	5.8	5.5

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16. Trade and other receivables continued

The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:

	2023	2022
	£’m	£’m
Sterling	18.7	19.0
Euros	14.1	12.2
	32.8	31.2

Amounts due from associates of £0.1 million (FY2022: £nil) relate to the Joint Venture arrangement (note 12), made up of management fees of

£0.1 million (FY2022: £nil). These amounts are considered to be fully recoverable and have not been impaired (FY2022: £nil).

17. Cash and cash equivalents

	2023	2022
	£’m	£’m
Cash at bank and in hand	16.9	20.9

The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:

	2023	2022
	£’m	£’m
Sterling	4.9	6.4
Euros	12.0	14.5
	16.9	20.9

18. Trade and other payables

	2023	2022
	£’m	£’m
Current
Trade payables	9.4	8.0
Other taxes and social security payable	6.3	6.2
Other payables	2.9	4.9
Accruals	15.0	24.8
Deferred income	18.8	18.8
	52.4	62.7

The carrying amounts of the Group’s trade and other payables are denominated in the following currencies:

	2023	2022
	£’m	£’m
Sterling	34.7	47.4
Euros	17.7	15.3
	52.4	62.7

19. Financial liabilities – bank borrowings and notes

	2023	2022
	£’m	£’m
Bank loans and notes
Secured	—	625.1
Unsecured	730.8	—
Debt issue costs	(5.0)	(1.3)
	725.8	623.8

On 11 November 2022, the Group completed the refinancing of its RCFs which were due to expire in June 2023. The previous £250.0 million

Sterling and €70.0 million Euro RCFs have been replaced with a single multi-currency £400 million facility. In addition, a further £100 million

uncommitted accordion facility is incorporated in the facility agreement. The facility is for a four-year term with two one-year extension options

exercisable after the first and second years of the agreement, the first of which was completed in October.

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Notes to the financial statements continued

for the year ended 31 October 2023

19. Financial liabilities – bank borrowings and secured notes continued

The Group has US Private Placement Notes of €358 million (FY2022: €358 million) which have maturities extending to 2024, 2026, 2027, 2028,

2029 and 2033 and £212.5 million (FY2022: £215.5 million) which have maturities extending to 2026, 2028, 2029 and 2031. The blended cost of

interest on the overall debt at 31 October 2023 was 3.58% per annum. Since the year end the Group has successfully refinanced its bank

facilities borrowings (note 32). On 11 November 2022, the Group completed the refinancing of its RCF which were due to expire in June 2023.

The previous £250.0 million Sterling and €70.0 million Euro RCFs were replaced with a single multi-currency £400 million facility. In addition, a

further £100 million uncommitted accordion facility is incorporated in the facility agreement. The facility is for a four-year term with two one-year

extension options exercisable after the first and second years of the agreement, with the first one-year extension being granted in October 2023.

The bank facilities attract a margin over SONIA/EURIBOR. The margin ratchets between 1.25% and 2.50%, by reference to the Group’s

performance against its interest cover covenant. The Company has in issue €50.9 million (FY2022: €50.9 million) 1.59% Series A Senior Notes

due 2024, €70.0 million (FY2022: €70.0 million) 1.26% Series A Notes due 2026, £35.0 million (FY2022: £35.0 million) 2.59% Series B Senior

Notes due 2026, €74.1 million (FY2022: €74.1 million) 2.00% Series B Senior Notes due 2027, £20.0 million (FY2022: £20.0 million) 1.96% Series

A Notes due 2028, €29.0 million (FY2022: €29.0 million) 0.93% Series B Notes due 2028, £50.5 million (FY2022: £50.5 million) 2.92% Series C

Senior Notes due 2029, £30.0 million (FY2022: £30.0 million) 2.69% Series C Senior Notes due 2029, €105.0 million (FY2022: €105.0 million)

2.45% Private Shelf Senior Notes due 2029, £80.0 million (FY2022: £80.0 million) 2.39% Series C Notes due 2031 and €29.0 million (FY2022:

€29.0 million) 1.42% Series D Notes due 2033.

The €358.0 million of Euro denominated borrowings provides a natural hedge against the Group’s investment in the France, Spain, Netherlands

and Belgium businesses, so the Group has applied net investment hedge accounting and the retranslation of these borrowings is recognised

directly in the translation reserve.

Bank loans and unsecured notes are stated before unamortised issue costs of £5.0 million (FY2022: £1.3 million).

Bank loans and unsecured notes are repayable as follows:

	Group
	2023	2022
	£’m	£’m
Within one year	44.5	101.8
Between one and two years	—	43.8
Between two and five years	409.0	158.9
After more than five years	277.3	320.6
Bank loans and notes	730.8	625.1
Unamortised debt issue costs	(5.0)	(1.3)
	725.8	623.8

The effective interest rates at the balance sheet date were as follows:

	2023	2022
Bank loans (UK term loan)	Monthly, quarterly or six monthly SONIA plus 1.25%	Quarterly or monthly SONIA plus 1.25%
Bank loans (Euro term loan)	Monthly, quarterly or six monthly EURIBOR plus 1.25%	Quarterly EURIBOR plus 1.25%
Private Placement Notes (Euros)	1.80%	1.80%
Private Placement Notes (Sterling)	2.55%	2.55%

Borrowing facilities

The Group has the following undrawn committed borrowing facilities available at 31 October 2023 in respect of which all conditions precedent

had been met at that date:

	Floating rate
	2023	2022
	£’m	£’m
Expiring within one year	—	208.4
Expiring beyond one year	297.0	—
	297.0	208.4

The carrying amounts of the Group’s borrowings are denominated in the following currencies:

	2023	2022
	£’m	£’m
Sterling	377.5	291.5
Euros	353.3	333.6
	730.8	625.1

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

20. Financial instruments

Financial risk management

Financial risk management is an integral part of the way the Group is managed. In the course of its business, the Group is exposed primarily

to foreign exchange risk, interest rate risk, liquidity risk, and credit risk. The overall aim of the Group’s financial risk management policies is to

minimise potential adverse effects on financial performance and Net Asset Values (“NAV”). The Group manages the financial risks within policies

and operating parameters approved by the Board of Directors and does not enter into speculative transactions. Treasury activities are managed

centrally under a framework of policies and procedures approved and monitored by the Board. These objectives are to protect the assets of the

Group and to identify and then manage financial risk. In applying these policies, the Group will utilise derivative instruments, but only for risk

management purposes.

The principal financial risks facing the Group are described below.

Interest rate risk

The Group finances its operations through a mixture of retained profits, issued share capital, bank borrowings, and notes. The Group

borrows in Sterling and Euros at floating rates and, where necessary, uses interest rate swaps to convert these to fixed rates to generate the

preferred interest rate profile and to manage its exposure to interest rate fluctuations. A 1ppt change in interest rates would have a £2 million

(FY2022: £0.5 million) impact on net interest. This sensitivity impact has been prepared by determining average floating interest rates and flexing

these against average floating rate deposits and borrowings by major currency area over the course of the year.

Liquidity risk

The Group’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations without the need to carry significant

net debt over the medium term. The Group’s principal borrowing facilities are provided by a group of core relationship banks in the form of term

loans and overdrafts, revolving credit facilities and notes. The quantum of committed borrowing facilities available to the Group is reviewed

regularly and is designed to exceed forecast peak gross debt levels. Further details of the Group’s borrowing facilities, including the repayment

profile of existing borrowings and the amount of undrawn committed borrowing facilities, are set out in note 19.

Credit risk

Credit risk arises on financial instruments such as trade and other receivables and short term bank deposits. Policies and procedures exist to

ensure that customers have an appropriate credit history and account customers are given credit limits that are monitored. Short term bank

deposits are executed only with A-rated or above authorised counterparties based on ratings issued by the major rating agencies. Counterparty

exposure positions are monitored regularly so that credit exposures to any one counterparty are within predetermined limits. Overall, the Group

considers that it is not exposed to a significant amount of credit risk. The amount of trade receivables outstanding at the year end does not

represent the maximum exposure to operational credit risk due to the normal patterns of supply and payment over the course of a year.

Based on management information collected as at month ends the maximum level of net trade receivables at any one point during the year

was £16.0 million (FY2022: £18.3 million).

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk in respect of the Euro. Foreign exchange risk arises from future

commercial transactions, recognised assets and liabilities and net investments in foreign operations.

The Group has investments in foreign operations in France, Spain, the Netherlands and Belgium, whose net assets are exposed to foreign

currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through

borrowings denominated in the relevant foreign currencies.

The Group holds Euro denominated loan notes totalling €358 million (FY2022: €358 million) and as such is exposed to foreign exchange risk on

these notes. The foreign exchange risk relating to the notes provides a natural hedge against the Euro denominated assets of its operations in

France, Spain, the Netherlands and Belgium and were 100% effective. As a result, the Group applies net investment hedging in respect of these

loan notes and the change in fair value during the year of £2.9 million (FY2022: £4.6 million) was recognised in other comprehensive income.

The Group holds average rate forward contracts to mainly hedge against the investment exposure of subsidiaries denominated in Euros and the

future earnings generated by these foreign subsidiaries. The hedge rate of these forwards was 1.0751 and they mature in six tranches bi-annually

commencing from October 2020 as detailed further within this note.

At 31 October 2023, if Sterling had weakened by 10% against the Euro with all other variables held constant, pre-tax profit for the year would

have been £0.4 million lower (FY2022: £0.1 million lower). Equity (translation reserve) would have been £22.8 million higher (FY2022: £19.0 million

higher), arising primarily on translation of Euro denominated net assets held by subsidiary companies with a Euro functional currency less the

Euro denominated loan notes.

The Group is not exposed to significant transaction foreign exchange risk as purchases are invoiced in either Sterling or Euros.

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Notes to the financial statements continued

for the year ended 31 October 2023

20. Financial instruments continued

Financial risk management continued

Capital risk

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for

shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to

shareholders, issue new shares or sell assets to reduce debt. Being a REIT, the Group is required to distribute as a dividend a minimum of 90%

of its property rental income to shareholders. This is factored into the Group’s capital risk management.

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by

total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings and lease liabilities’ as shown in the

consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as equity as shown in the consolidated balance sheet

plus net debt.

The gearing ratios at 31 October 2023 and 2022 were as follows:

	2023	2022
	£’m	£’m
Total borrowings (excluding derivatives)	827.2	719.2
Less: cash and cash equivalents (note 17)	(16.9)	(20.9)
Net debt	810.3	698.3
Total equity	1,935.1	1,793.4
Total capital	2,745.4	2,491.7
Gearing ratio	29.5%	28.0%

The Group considers that a loan-to-value (“LTV”) ratio, defined as gross debt (excluding lease liabilities) as a proportion of the valuation of

investment properties and investment properties under construction (excluding lease liabilities), below 40% represents an appropriate medium

term capital structure objective. The Group’s LTV ratio was 25.4% at 31 October 2023 (FY2022: 23.6%).

The Group has complied with all of the covenants on its banking facilities during the year.

Financial instruments

Financial instruments disclosures are set out below:

		2023	2022
	Asset	Liability	Asset	Liability
	£’m	£’m	£’m	£’m
Interest rate swaps	—	—	1.2	—
Foreign currency forwards	—	—	0.5	—

The fair value of financial instruments that are not traded in an active market, such as over the counter derivatives, is determined using valuation

techniques. The Group obtains such valuations from counterparties which use a variety of assumptions based on market conditions existing at

each balance sheet date.

The fair values of all financial instruments are equal to their book value, with the exception of bank loans, which are set out below. The fair value

of loan notes is determined using a discounted cash flow, while the fair value of bank loans drawn from the Group’s bank facilities equates to

book value. The carrying value less impairment provision of trade receivables, other receivables and the carrying value of trade payables and

other payables approximates to their fair value.

The fair value of bank loans is calculated as:

		2023	2022
	Book value	Fair value	Book value	Fair value
	£’m	£’m	£’m	£’m
Bank loans	725.8	789.3	623.8	694.1

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

20. Financial instruments continued

Financial instruments continued

Fair value hierarchy

IFRS 13 requires fair value measurements to be recognised using a fair value hierarchy that reflects the significance of the inputs used in the

measurements, according to the following levels:

Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – inputs for the asset or liability that are not based on observable market data.

The table below shows the level in the fair value hierarchy into which fair value measurements have been categorised:

	2023	2022
Assets per the balance sheet	£’m	£’m
Derivative financial instruments – Level 2	—	1.7
Amounts due from associates – Level 2	0.1	—

	2023	2022
Liabilities per the balance sheet	£’m	£’m
Derivative financial instruments – Level 2	—	—
Bank loans – Level 2	725.8	694.1

There were no transfers between Level 1, 2 and 3 fair value measurements during the current or prior year.

Over the life of the Group’s derivative financial instruments, the cumulative fair value gain/loss on those instruments will be £nil as it is the Group’s

intention to hold them to maturity.

Interest rate swaps not designated as part of a hedging arrangement

The notional principal amounts of the outstanding interest rate swap contracts at 31 October 2023 were £nil and €nil (FY2022: £55.0 million and €nil).

At 31 October 2023, the weighted average fixed interest rates were Sterling nil% as the swaps were expired in June 2023 (FY2022: Sterling at 0.6885%),

and floating rates are at quarterly SONIA and the quarterly EURIBOR. The movement in fair value recognised in the income statement was a net

loss of £1.2 million (FY2022: net gain of £1.0 million).

Foreign currency forwards not designated as part of a hedging arrangement

As at 31 October 2023, all average rate forward contracts had matured for the Group (FY2022: one tranche totalling €8.5 million). The movement

in the fair value recognised in the income statement in the period was a net loss of £0.5 million (FY2022: net loss of £1.3 million). The €8.5 million

tranche previously held matured and was settled in April 2023, resulting in a fair value disposal of £0.5 million and a receipt of £0.4 million.

This resulted in £0.4 million recognised as finance income and £0.5 million expense as part of the £1.7 million expense recognised in fair value

movement of derivatives within finance costs in the income statement.

Financial instruments by category

		Assets at fair
	Financial assets	value through
	at amortised cost	profit and loss	Total
Assets per the balance sheet	£’m	£’m	£’m
Trade receivables and other receivables excluding prepayments	22.5	—	22.5
Derivative financial instruments	—	—	—
Cash and cash equivalents	16.9	—	16.9
At 31 October 2023	39.4	—	39.4

	Other financial	Liabilities at fair
	liabilities at	value through
	amortised cost	profit and loss	Total
Liabilities per the balance sheet	£’m	£’m	£’m
Borrowings (excluding lease liabilities)	725.8	—	725.8
Lease liabilities	101.4	—	101.4
Payables and accruals	27.2*	—	27.2
At 31 October 2023	854.4	—	854.4

Safestore Holdings plc | Annual report and financial statements 2023

162

Notes to the financial statements continued

for the year ended 31 October 2023

20. Financial instruments continued

Financial instruments continued

Financial instruments by category continued

		Assets at fair
	Financial assets	value through
	at amortised cost	profit and loss	Total
Assets per the balance sheet	£’m	£’m	£’m
Trade receivables and other receivables excluding prepayments	24.0	—	24.0
Derivative financial instruments	—	1.7	1.7
Cash and cash equivalents	20.9	—	20.9
At 31 October 2022	44.9	1.7	46.6

	Other financial	Liabilities at fair
	liabilities at	value through
	amortised cost	profit and loss	Total
Liabilities per the balance sheet	£’m	£’m	£’m
Borrowings (excluding lease liabilities)	623.8	—	623.8
Lease liabilities	95.4	—	95.4
Payables and accruals	37.7*	—	37.7
At 31 October 2022	756.9	—	756.9

Note:

* The financial liabilities exclude other taxes and social security payable in FY2023: £6.3 million (FY2022: £6.2 million) as they do not meet the definition of a financial liability

The interest rate risk profile, after taking account of derivative financial instruments, was as follows:

		2023			2022
	Floating rate	Fixed rate	Total	Floating rate	Fixed rate	Total
	£’m	£’m	£’m	£’m	£’m	£’m
Borrowings	203.0	522.8	725.8	46.8	577.0	623.8

The weighted average interest rate of the fixed rate financial borrowing was 2.10% (FY2022: 2.05%) and the weighted average remaining period

for which the rate is fixed was five years (FY2022: five years).

Maturity analysis

The table below analyses the Group’s financial liabilities and non-settled derivative financial instruments into relevant maturity groupings based

on the remaining period at the balance sheet date to the contractual maturity dates. The amounts disclosed in the table are the contractual

undiscounted cash flows.

	Less than	One to two	Two to five	More than
	one year	years	years	five years
	£’m	£’m	£’m	£’m
2023
Borrowings	54.6	10.2	436.0	297.0
Derivative financial instruments	—	—	—	—
Lease liabilities	13.8	13.7	36.4	77.0
Payables and accruals	29.4	—	—	—
	97.8	23.9	472.4	374.0

	Less than	One to two	Two to five	More than
	one year	years	years	five years
	£’m	£’m	£’m	£’m
2022
Borrowings	114.7	53.9	187.8	348.3
Derivative financial instruments	1.0	—	—	—
Lease liabilities	13.8	12.9	35.9	74.7
Payables and accruals	43.9	—	—	—
	173.4	66.8	223.7	423.0

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

21. Lease liabilities

The Group leases certain of its investment properties under lease liabilities. The average remaining lease term is 10.7 years (FY2022: 10.9 years).

			Present value of minimum
	Minimum lease payments		lease payments
	2023	2022	2023	2022
	£’m	£’m	£’m	£’m
Within one year	13.8	13.8	13.1	13.2
Within two to five years	50.1	48.8	42.0	40.6
Greater than five years	77.0	74.7	46.3	41.6
	140.9	137.3	101.4	95.4
Less: future finance charges on lease liabilities	(39.5)	(41.9)	—	—
Present value of lease liabilities	101.4	95.4	101.4	95.4

	2023	2022
	£’m	£’m
Current	13.1	13.2
Non-current	88.3	82.2
	101.4	95.4

Amounts recognised within the consolidated income statement include interest on lease liabilities of £5.3 million and variable lease payments not

included in the measurement of the lease liabilities of £0.8 million. Amounts recognised in the consolidated statement of cash flows include lease

liabilities principal payments of £8.8 million and interest on lease liabilities of £5.3 million. The maturity analysis for lease liabilities under

contractual undiscounted cash flows is included in note 20.

22. Deferred income tax

Deferred tax is calculated in full on temporary differences under the liability method using tax rates enacted in each respective jurisdiction

corresponding to when they are expected to reverse. The movement on the deferred tax account was as shown below.

		2023	2022
	Note	£’m	£’m
At 1 November		128.2	96.2
Charge to income statement	9	2.5	29.8
Exchange differences		1.9	2.2
At 31 October		132.6	128.2

The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction where permitted by IAS 12)

during the period are shown below.

	Revaluation of	Other
	investment	timing
	properties	differences	Total
Deferred tax liability	£’m	£’m	£’m
At 1 November 2021	96.9	0.1	97.0
Charge to income statement	29.9	(0.1)	29.8
Exchange differences	2.2	—	2.2
At 31 October 2022	129.0	—	129.0
At 1 November 2022	129.0	—	129.0
Charge to income statement	8.3	—	8.3
Exchange differences	1.9	—	1.9
At 31 October 2023	139.2	—	139.2

Safestore Holdings plc | Annual report and financial statements 2023

164

Notes to the financial statements continued

for the year ended 31 October 2023

22. Deferred income tax continued

	Other
	timing
	differences	Tax losses	Total
Deferred tax asset	£’m	£’m	£’m
At 1 November 2021	0.8	—	0.8
Credit to income statement	—	—	—
At 31 October 2022	0.8	—	0.8
At 1 November 2022	0.8	—	0.8
Credit to income statement	—	5.8	5.8
At 31 October 2023	0.8	5.8	6.6

The deferred tax liability due after more than one year is £139.2 million (FY2022: £129.0 million).

As at 31 October 2023, the Group had trading losses of £34.7 million (FY2022: £16.7 million) and capital losses of £36.5 million (FY2022: £36.5 million)

in respect of its UK operations.

As at 31 October 2023, the Group had trading losses of £6.6 million (FY2022: £4.6 million) in respect of its Netherlands and Belgium operations.

As at 31 October 2023, the Group had trading losses of £2.3 million (FY 2022: £nil) in respect of its Spanish operations.

All losses can be carried forward indefinitely. A deferred tax asset of £5.8 million has been recognised in respect of these losses in the current

period, recognising the extent to which the Group believes these losses will be utilised in the future to reduce income tax liabilities.

23. Called up share capital

		2023	2022
		£’m	£’m
Called up, allotted, and fully paid
218,039,419 (FY2022:	211,927,497) ordinary shares of 1 pence each	2.2	2.1

Ordinary shares

The holders of the ordinary shares shall be entitled to one vote for each ordinary share.

During the year the Company issued 6,111,922 ordinary shares (FY2022: 1,103,794 ordinary shares).

Safestore Holdings plc Sharesave scheme

The Sharesave awards are a savings related award accruing over a three-year period. There are no performance conditions attached to the

awards; as such, the sole condition for vesting is continued service. The fair value of the Sharesave options granted during the year was

assessed by an independent actuary using a Black-Scholes model based on the assumptions set out in the table below:

		Grant date
		25 September 2023
		(UK three years)
Number of options granted		176,852
Share price at grant date	(pence)	758
Exercise price	(pence)	692
Risk-free rate of interest	(% per annum)	4.32
Expected volatility	(% per annum)	28.0
Expected dividend yield	(% per annum)	4.00
Expected term to exercise	(years)	3.10
Value per option	(pence)	159

Safestore Long Term Incentive Plan

The fair values of the awards granted in the accounting period were assessed by an independent actuary using a Monte Carlo model based on

the assumptions set out in the table below. In determining an appropriate assumption for expected future volatility, the historical volatility of the

share price of Safestore Holdings plc has been considered along with the historical volatility of comparator companies.

			Grant date July 2023
		(PBT EPS part)	(MLA part)	(ESG part)
Number of options granted		510,469	193,336	78,535
Weighted average share price at grant date	(pence)	864	864	864
Exercise price	(pence)	—	—	—
Weighted average risk-free rate of interest	(% per annum)	5.05%	5.05%	5.05%
Expected volatility	(% per annum)	27.5%	27.5%	27.5%
Weighted average expected term to exercise	(years)	3.00	3.00	3.00
Weighted average value per option	(pence)	5.24	5.24	5.24

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

23. Called up share capital continued

Safestore Long Term Incentive Plan continued

Details of the awards outstanding under all of the Group’s share schemes are set out below:

	At				At
	31 October				31 October	Exercise	Expiry
Date of grant	2022	Granted	Exercised	Lapsed	2023	price	date
Safestore Holdings plc
Sharesave scheme
24/10/2017	35,183	—	(35,183)	—	—	352.8p	01/05/2023
14/08/2019	16,126	—	(15,774)	—	352	510.0p	01/03/2023
26/08/2020	133,500	—	(4,666)	(12,704)	116,130	600.0p	01/05/2024
20/08/2021	45,077	—	—	(21,446)	23,631	824.0p	01/05/2025
22/08/2022	94,346	—	—	(60,980)	33,366	896.0p	01/05/2026
22/08/2023	—	176,852	—	(12,676)	164,176	692.0p	01/05/2027
Total	324,232	176,852	(55,623)	(107,806)	337,655
Safestore Long Term
Incentive Plan – 2017
29/09/2017	5,094,214	—	(5,094,214)	—	—	0.1p	28/09/2027
09/10/2017	150,000	—	(150,000)	—	—	0.0p	28/09/2027
15/06/2018	13,000	—	(13,000)	—	—	0.1p	28/09/2027
05/02/2019	81,550	—	(64,050)	—	17,500	0.1p	28/09/2027
05/07/2019	—	—	—	—	—	0.1p	28/09/2027
23/01/2020	149,129	—	(140,797)	—	8,332	0.1p	28/09/2027
Total	5,487,893	—	(5,462,061)	—	25,832
Safestore Long Term
Incentive Plan – 2020
18/03/2020	406,191	—	(363,807)	(6,796)	35,588	0.0p	18/03/2023
Total	406,191	—	(363,807)	(6,796)	35,588
Safestore Long Term
Incentive Plan – 2021
28/01/2021	347,422	—	—	—	347,422	0.0p	28/01/2024
Total	347,422	—	—	—	347,422
Safestore Long Term
Incentive Plan – 2022
25/01/2022	246,833	—	—	—	246,833	0.0p	25/01/2025
29/09/2022	—	4,892	—	—	4,892	0.0p	25/01/2025
Total	246,833	4,892	—	—	251,725
Safestore Long Term
Incentive Plan – 2023
12/07/2023	—	785,340	—	—	785,340	0.0p	12/02/2026
Total	—	785,340	—	—	785,340

In addition, gross amounts totalling £nil (FY2022: £378,000) in respect of bonuses awarded to Executive Directors for the year ended 31 October

2023 will be deferred into shares which will vest at the end of two years following the financial year in which the bonus is earned. The grant

date is the last day of the financial year in which the performance stage is assessed. The share entitlement is expected to be determined in

January 2024.

The weighted average exercise price of outstanding options under the Sharesave scheme is 690.0 pence (FY2022: 698.6 pence). The weighted

average exercise price of options exercised under the Sharesave scheme was 366.1 pence (FY2022: 400.4 pence).

Own shares

Included within retained earnings are ordinary shares with a nominal value of £644 (FY2022: £3,598) that represent shares held by the Safestore

Employee Benefit Trust in satisfaction of awards under the Group’s Long Term Incentive Plan and which remain unvested.

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Notes to the financial statements continued

for the year ended 31 October 2023

24. Cash flow from operating activities

Reconciliation of operating profit to net cash inflow from operating activities:

		2023	2022
Cash generated from continuing operations	Notes	£’m	£’m
Profit before income tax		207.8	498.8
Gain on investment properties	13	(93.8)	(381.6)
Other exceptional gains	5	—	(10.8)
Share of loss in associates		—	0.3
Depreciation	14	1.3	1.0
Net finance expense	8	22.6	15.7
Employee share options		2.9	8.6
Changes in working capital:
Decrease in inventories		—	0.2
(Increase)/decrease in trade and other receivables		(1.4)	0.1
Decrease in trade and other payables		(11.2)	(0.4)
Increase in provisions		0.2	0.3
Cash generated from continuing operations		128.4	132.2

25. Analysis of movement in gross and net debt

			Non-cash
	2022	Cash flows	movements	2023
	£’m	£’m	£’m	£’m
Bank loans	(623.8)	(96.4)	(5.6)	(725.8)
Lease liabilities	(95.4)	8.8	(14.8)	(101.4)
Total gross debt (liabilities from financing activities)	(719.2)	(87.6)	(20.4)	(827.2)
Cash in hand	20.9	(3.9)	(0.1)	16.9
Total net debt	(698.3)	(91.5)	(20.5)	(810.3)

			Non-cash
	2021	Cash flows	movements	2022
	£’m	£’m	£’m	£’m
Bank loans	(484.7)	(132.0)	(7.1)	(623.8)
Lease liabilities	(82.3)	8.4	(21.5)	(95.4)
Total gross debt (liabilities from financing activities)	(567.0)	(123.6)	(28.6)	(719.2)
Cash in hand	43.2	(22.1)	(0.2)	20.9
Total net debt	(523.8)	(145.7)	(28.8)	(698.3)

The table above details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities

arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated cash flow

statement as cash flows from financing activities.

The cash flows from bank loans make up the net amount of proceeds from borrowings, repayment of borrowings and debt issuance costs.

Non-cash movements relate to the amortisation of debt issue costs of £1.3 million (FY2022: £0.5 million), foreign exchange movements of

£4.3 million (FY2022: £6.8 million) and unwinding of discount to lease liabilities of £14.8 million (FY2022: £21.5 million).

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

26. Employees and Directors

	2023	2022
Staff costs (including Directors) for the Group during the year	£’m	£’m
Wages and salaries	24.2	25.1
Social security costs	2.0	3.8
Other pension costs	0.9	0.6
Share-based payments	2.9	8.6
	30.0	38.1

During the period ended 31 October 2023, the Company’s equity-settled share-based payment arrangements comprised the Safestore Holdings

plc Sharesave scheme and the Safestore Long Term Incentive Plans. The number of awards made under each scheme is detailed in note 23.

No options have been modified since grant under any of the schemes, other than the modification in respect of the LTIP awards for Executive

Directors described in note 23.

	2023	2022
Average monthly number of people (including Executive Directors) employed	Number	Number
Sales	619	604
Administration	134	123
	753	727

	2023	2022
Key management compensation	£’m	£’m
Wages and salaries	2.7	4.4
Social security costs	0.3	(0.3)
Post-employment benefits	0.1	0.1
Share-based payments	1.9	4.5
	5.0	8.7

The key management figures given above include Directors.

	2023	2022
Directors	£’m	£’m
Aggregate emoluments	2.9	5.7
Company contributions paid to money purchase pension schemes	—	—
	2.9	5.7

There were two Directors (FY2022: two) accruing benefits under a money purchase scheme.

27. Provisions

In France, the basis on which property taxes have been assessed has been challenged by the tax authority for financial years 2011 onwards.

In November 2022, the French Supreme Court delivered a final judgement in respect of litigation for years 2011 to 2013, which resulted in a partial

success for the Group. The Group is separately pursuing litigation in respect of years since 2013 and has lodged an appeal with the French administrative

tribunal against the issues included in assessments for 2013 onwards on which it was ultimately unsuccessful in the French Supreme Court for

the earlier years. A provision is included in the consolidated financial accounts of £2.6 million at 31 October 2023 (31 October 2022: £2.4 million)

to reflect the increased uncertainty surrounding the likelihood of a successful outcome. Of the total provided, £0.2 million has been charged in

relation to the year ended 31 October 2023 within cost of sales (Underlying EBITDA) (31 October 2022: £0.2 million within cost of sales (underlying

EBITDA) and £1.9 million recorded as an exceptional charge in respect of financial years 2012 to 2020). The litigation is expected to be resolved

over the next few years.

It is possible that the French tax authority may appeal the decisions of the French Court of Appeal on which the Group was successful to the

French Supreme Court. The maximum potential exposure in relation to these issues at 31 October 2023 is £3.0 million (31 October 2022: £3.0 million).

No provision for any further potential exposure has been recorded in the consolidated financial statements since the Group believes it is more

likely than not that a successful outcome will be achieved, resulting in no additional liabilities.

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Notes to the financial statements continued

for the year ended 31 October 2023

28. Contingent liabilities

As part of the Group banking facility, the Company has guaranteed the borrowings totalling £730.8 million (FY2022: £625.1 million) of fellow

Group undertakings by way of a charge over all of its property and assets. There are similar cross-guarantees provided by the Group companies

in respect of any bank borrowings which the Company may draw under a Group facility agreement. The financial liability associated with this

guarantee is considered remote and therefore no provision has been recorded.

The Group also has a contingent liability in respect of property taxation in the French subsidiary as disclosed in note 27.

29. Capital commitments

The Group had £128 million of capital commitments as at 31 October 2023 (FY2022: £146.0 million).

30. Related party transactions

The Group’s shares are widely held. Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on

consolidation and are not disclosed in this note.

Transactions with PBC Les Groues SAS

As described in note 12, the Group has a 24.9% interest in PBC Les Groues SAS (“PBC”). During the period, the Group made no transactions

with PBC (FY2022: £0.8 million (€0.9 million). The total amount invested is included as part of its non-current investments in associates. The total

amount outstanding at 31 October 2023 included within trade and other receivables was £nil (FY2022: £nil).

Transactions with CERF II German Storage Topco S a r l (“CERF II”)

As described in note 12, the Group has a 10.0% interest in CERF II German Storage Topco S a r l (“CERF II”). During the period, the Group

recharged £0.4 million .

31. Post-balance sheet events

There are no post balance sheet events.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Company

Notes

2023

£’m

2022

£’m

Non-current assets

Investments in subsidiaries 6 1.0 1.0

Deferred tax asset 13 2.9 —

Loans to Group undertakings 7 943.9 835.7

Total non-current assets 947.8 836.7

Current assets

Trade and other receivables 8 1.0 0.2

Cash and cash equivalents 1.6 1.2

Total current assets 2.6 1.4

Total assets 950.4 838.1

Current liabilities 9 (183.1) (108.7)

Total assets less current liabilities 767.3 729.4

Non-current liabilities 10 (524.9) (523.3)

Net assets 242.4 206.1

Equity

Called up share capital 11 2.2 2.1

Share premium account 62.0 61.8

Retained earnings 178.2 142.2

Total equity 242.4 206.1

The Company’s profit for the financial year amounted to £99.0 million (FY2022: £137.8 million profit).

The Company financial statements were approved by the Board of Directors on 16 January 2024 and signed on its behalf by:

A Jones F Vecchioli

Chief Financial Officer Chief Executive Officer

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170

Company balance sheet

as at 31 October 2023

Company registration number: 04726380

Company

Called up

share capital

£’m

Share premium

account

£’m

Retained

earnings

£’m

Total

£’m

Balance at 1 November 2021 2.1 61.3 52.7 116.1

Comprehensive income

Profit for the year — — 137.8 137.8

Total comprehensive income 2.1 61.3 190.5 253.9

Transactions with owners

Dividends — — (56.9) (56.9)

Increase in share capital — 0.5 — 0.5

Employee share options — — 8.6 8.6

Transactions with owners — 0.5 (48.3) (47.8)

Balance at 1 November 2022 2.1 61.8 142.2 206.1

Comprehensive income

Profit for the year — — 99.0 99.0

Total comprehensive income 2.1 61.8 241.2 305.1

Transactions with owners

Dividends — — (65.9) (65.9)

Increase in share capital 0.1 0.2 — 0.3

Employee share options — — 2.9 2.9

Transactions with owners 0.1 0.2 (63.0) (62.7)

Balance at 31 October 2023 2.2 62.0 178.2 242.4

For details of the dividend paid in the year see note 10 in the Group financial statements.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Company statement of changes in equity

for the year ended 31 October 2023

1. Accounting policies and basis of preparation

The Company financial statements are prepared in accordance with Financial Reporting Standard 101 “Reduced Disclosure Framework”

(“FRS101”). In preparing these financial statements the Company applies the recognition, measurement and disclosure requirements of United

Kingdom – adopted International Financial Reporting Standards (“IFRS”) but makes amendments where necessary in order to comply with the

Companies Act 2006 and sets out below where advantage of the FRS 101 disclosure exemptions has been taken.

In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:

• a cash flow statement and related notes;

• comparative period reconciliations for tangible fixed assets;

• disclosures in respect of transactions with wholly owned subsidiaries;

• disclosures in respect of capital management;

• the effects of new but not yet effective IFRSs;

• IFRS 2 “Share-based Payment” in respect of Group-settled share-based payments; and

• certain disclosures required by IFRS 13 “Fair Value Measurement” and the disclosures required by IFRS 7 “Financial Instruments: Disclosures”.

The above disclosure exemptions are permitted because equivalent disclosures are included in the Group consolidated financial statements.

The financial statements are prepared on a going concern basis under the historical cost convention. The Company’s principal accounting

policies are the same as those applied in the Group financial statements, except as described below:

Investments

Investments held as fixed assets are stated at cost less provision for impairment in value.

2. Results of parent company

As permitted by Section 408 of the Companies Act 2006, the Company has elected not to present its own profit and loss account as part of

these financial statements. The Company’s profit for the financial year amounted to £99.0 million (FY2022: £137.8 million profit).

3. Directors’ emoluments

The Directors’ emoluments are disclosed in note 26 of the Group financial statements.

4. Operating profit

The Company does not have any employees (FY2022: none). Details of the Company’s share-based payments are set out in note 23 to the

Group financial statements.

Auditor’s remuneration for the year ended 31 October 2023 was £17,000 (FY2022: £17,000). There were no non-audit services (FY2022: none)

provided by the auditor.

5. Property, plant and equipment

£’m

Cost

At 1 November 2022 and at 31 October 2023 0.2

Accumulated depreciation

At 1 November 2022 0.2

Charge for the year —

At 31 October 2023 —

Net book value

At 31 October 2023 —

At 31 October 2022 —

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172

Notes to the Company financial statements

for the year ended 31 October 2023

6. Investments in subsidiaries

£’m

Cost and net book value

At 1 November 2022 1.0

At 31 October 2023 1.0

Investments in subsidiaries are stated at cost. A list of interests in subsidiary undertakings is given below. The Directors believe that the carrying

value of the investments is supported by their underlying net assets.

Interests in subsidiary undertakings

The entities listed below are subsidiaries of the Company or the Group. The Group percentage of equity capital (represented by ‘ordinary shares’)

and voting rights is 100% for all subsidiaries listed. The results of all of the subsidiaries have been consolidated within these financial statements.

The registered address of each subsidiary is Brittanic House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT, except where indicated below

by a footnote.

Subsidiary Country of incorporation Principal activity

Safestore Investments 2018 Limited

1,11

England and Wales Holding company

Safestore Investments Limited

England and Wales Holding company

Safestore Group Limited England and Wales Holding company

Safestore Acquisition Limited

England and Wales Holding company

Safestore Limited

England and Wales Provision of self storage

Safestore Properties Limited

England and Wales Provision of self storage

Spaces Personal Storage Limited

England and Wales Provision of self storage

Safestore Trading Limited

England and Wales Non-trading

Mentmore Limited

England and Wales Holding company

Invest Holding

2,11

Luxembourg

Holding company

Une Pièce en Plus SAS

11,12

France

Provision of self storage

OMB Self Storage S.L.U.

Spain

Provision of self storage

Safestore Netherlands B.V.

Netherlands

Holding company

Your Room Self Storage Limited

England and Wales Provision of self storage

Safestore Storage Benelux B.V.

Netherlands

Holding company

Safestore Storage B.V.

Netherlands

Provision of self storage

M3 Self-Storage B.V.

Netherlands

Provision of self storage

Safestore Storage Properties 1 B.V.

Netherlands

Provision of self storage

Safestore Storage Properties 2 B.V.

Netherlands

Provision of self storage

Safestore Storage Properties 3 B.V.

Netherlands

Provision of self storage

Lokabox SA

Belgium

Provision of self storage

Safestore Europe SAS

10,11

France

Provision of self storage

Investimmo SAS

10,11

France

Provision of self storage

Safestore Germany Gmbh

11,13

Germany Holding company

Notes:

1 Held directly by the Company.

2 Formerly named Access Storage Holdings (France) S.à r.l.

3 Registered address: 412F, route d’Esch, L-2086 Luxembourg.

4 UK tax resident; registered address prior to liquidation: St Martin’s House, Le Bordage, St Peter Port, Guernsey.

5 Registered address: 1, rue François Jacob, 92500 Rueil Malmaison, France.

6 Registered address: Calle Marina 153, 08013 Barcelona, Spain.

7 Registered address: Herikerbergwerg 88, 1101CM Amsterdam, 1077ZX Amsterdam, Netherlands.

8 Registered address: Beijnesweg 19, 2031BB Haarlem, Netherlands.

9 Registered address: Chaussée de Bruxelles 151-155, 6040 Charleroi, Belgium.

10 Incorporated in July 2022.

11 These companies are exempt from the requirement to prepare individual audited financial statements in respect of the year ended 31 October 2023 by virtue of Sections 479A and 479C

of the Companies Act 2006.

12 Merged under the EU Merger Directive on 31 October 2022 resulting in the cessation of Compagnie de Libre Entreposage France SAS.

13 Incorporated in February 2023.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

7. Non-current assets – loans to Group undertakings

2023

£’m

2022

£’m

Loans to Group undertakings 943.9 835.7

943.9 835.7

Amounts owed by Group undertakings are unsecured and repayable on demand; however, the Directors consider it unlikely that repayment will

arise in the short term and in practice amounts owed by Group undertakings are used to meet the capital requirements of the borrower with no

realistic repayment in the near future. It is for this reason that the amounts are classified as non-current assets.

Interest is charged to Group undertakings on amounts totalling £524.9 million (FY2022: £523.3 million). The remaining amounts owed by Group

undertakings are interest free. The movement in loans to Group undertakings relates to interest charged of £11.1 million (FY2022: £9.9 million)

and additional amounts loaned and recharged of £97.1 million (FY2022: £240.0 million).

8. Trade and other receivables

2023

£’m

2022

£’m

Trade receivables — —

Other receivables 1.0 0.2

1.0 0.2

Trade and other receivables due within one year were tested for impairment in line with the Group as described in note 2. As at 31 October 2023,

these amounts due are considered fully recoverable and no provision has been made (FY2022: £nil).

9. Current liabilities

2023

£’m

2022

£’m

Amounts owed to Group undertakings 179.8 98.6

Trade payables — 0.2

Accruals and deferred income 3.3 9.9

183.1 108.7

Amounts owed to Group undertakings are unsecured, interest free and repayable on demand. The Directors have received assurance that

repayment of amounts owed to Group undertakings will not arise in the short term.

10. Non-current liabilities

2023

£’m

2022

£’m

Loan notes 524.9 523.3

524.9 523.3

Of the above, £277.4 million (FY2022: £320.6 million) is due after more than five years.

The Company has in issue €50.9 million (FY2022: €50.9 million) 1.59% Series A Senior Notes due 2024, €70.0 million (FY2022: €70.0 million)

1.26% Series A Notes due 2026, £35.0 million (FY2022: £35.0 million) 2.59% Series B Senior Notes due 2026, €74.1 million (FY2022: €74.1million)

2.00% Series B Senior Notes due 2027, £20.0 million (FY2022: £20.0 million) 1.96% Series A Notes due 2028, €29.0 million (FY2022: €29.0million)

0.93% Series B Notes due 2028, £50.5 million (FY2022: £50.5 million) 2.92% Series C Senior Notes due 2029, £30.0 million (FY2022: £30.0million)

2.69% Series C Senior Notes due 2029, €105.0 million (FY2022: €105.0 million) 2.45% Private Shelf Senior Notes due 2029, £80.0 million

(FY2022: £80.0 million) 2.39% Series C Notes due 2031 and €29.0 million (FY2022: €29.0 million) 1.42% Series D Notes due2033.

11. Called up share capital

2023

£’m

2022

£’m

Called up, allotted, and fully paid

218,039,419 (FY2022: 211,927,497) ordinary shares of 1 pence 2.2 2.1

Ordinary shares

The holders of the ordinary shares shall be entitled to one vote for each ordinary share.

For details of share options see note 23 in the Group financial statements.

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Notes to the Company financial statements continued

for the year ended 31 October 2023

12. Contingent liabilities

For details of contingent liabilities see note 28 in the Group financial statements.

13. Deferred tax

Deferred tax is calculated in full on temporary differences under the liability method using tax rates enacted in each respective jurisdiction

corresponding to when they are expected to reverse. The movement on the deferred tax account was as shown below.

Deferred tax asset

Other

timing

differences

£’m

Tax losses

£’m

Total

£’m

At 1 November 2021 — — —

Credit to income statement — — —

At 31 October 2022 — — —

At 1 November 2022 — — —

Credit to income statement — 2.9 2.9

At 31 October 2023 — 2.9 2.9

The deferred tax asset receivable after more than one year is £2.9 million (FY2022: £nil) and will be utilised by reducing future taxable profit.

As at 31 October 2023, the Company had unutilised trading losses of £11.2 million (FY2022: £nil).

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Absorption rate The rate at which rentable space is filled.

Adjusted Diluted EPRA

Earnings per Share

Based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for

the period after tax but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on

investment properties and the associated tax impacts. The Company then makes further adjustments for the

impact of exceptional items, net exchange gains/losses recognised in net finance costs, exceptional tax items,

and deferred and current tax in respect of these adjustments. The Company also adjusts for IFRS 2 share-based

payment charges.

Adjusted earnings growth The increase in adjusted EPS year-on-year.

Adjusted EPS Adjusted profit after tax divided by the diluted weighted average number of shares in issue during the financial

year.

Adjusted profit before tax The Company’s pre-tax EPRA earnings measure with additional Company adjustments.

Average net achieved rent per

sq ft

Storage revenue divided by average occupied space over the financial year.

Average rental growth The growth in average net achieved rent per sq ft year-on-year.

Average storage rate Revenue generated from self storage revenues divided by the average square footage occupied during the

period in question.

BREEAM An environmental rating assessed under the Building Research Establishment’s Environmental Assessment

Method.

Cap and collar Term used in connection with interest rates. A cap is an upper limit or maximum interest rate that will apply, while

a collar is the minimum interest rate.

Capitalisation rate The ratio of net operating income to property asset value.

Compound Annual Growth Rate

(“CAGR”)

The annual rate of return over a specified period of time longer than one year.

CER Constant Exchange Rates (Euro denominated results for the current period have been retranslated at the

exchange rate effective for the comparative period, in order to present the reported results on a more

comparable basis).

Closing net rent per sq ft Annual storage revenue generated from in-place customers divided by occupied space at the balance sheet

date.

Earnings per Share (“EPS”) Profit for the financial year attributable to equity shareholders divided by the average number of shares in issue

during the financial year.

EBITDA Earnings before interest, tax, depreciation and amortisation.

EPRA The European Public Real Estate Association, a real estate industry body. This organisation has issued Best

Practices Recommendations with the intention of improving the transparency, comparability and relevance of the

published results of listed real estate companies in Europe.

EPRA earnings The IFRS profit after taxation attributable to shareholders of the Company excluding investment property

revaluations, gains/losses on investment property disposals and changes in the fair value of financial instruments.

EPRA Earnings per Share EPRA earnings divided by the average number of shares in issue during the financial year.

EPRA Net Asset Value (“NAV”) IFRS net assets excluding the mark-to-market on interest rate derivatives effective cash flow and deferred

taxation on property valuations where it arises. It is adjusted for the dilutive impact of shareoptions.

EPRA NAV per share EPRA NAV divided by the diluted number of shares at the year end.

EPRA Net Tangible Assets

(“NTA”)

A proportionally consolidated measure, representing the IFRS net assets excluding the mark-to-market on

derivatives and related debt adjustments, the mark-to-market on the convertible bonds, the carrying value

of intangibles and deferred taxation on property and derivative valuations. It includes the valuation surplus on

trading properties and is adjusted for the dilutive impact of share options.

EPRA NTA per share EPRA NTA divided by the diluted number of shares held at the year end.

Equity All capital and reserves of the Group attributable to equity holders of the Company.

Euro Interbank Offered Rate

(“EURIBOR”)

The average benchmark interest rate at which Eurozone banks offer unsecured short term lending on the

inter-bank market.

Exit yield Represents the capital value of an investment property at the end of the investment term expressed in

percentage terms.

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176

Glossary

Free cash flow Cash flow before investing and financing activities but after leasehold rent payments.

Gross property assets The sum of investment property and investment property under construction.

Gross value added The measure of the value of goods and services produced in an area, industry or sector of an economy.

ICR ICR is interest cover ratio and is calculated as the ratio of Underlying EBITDA after leasehold rent to underlying

finance charges.

Joint Venture A business arrangement in which two or more parties agree to pool their resources for the purpose of

accomplishing a specific task.

Like-for-like occupancy Excludes the closing occupancy of new stores acquired, opened and closed in the current financial year in both

the current financial year and comparative figures.

Like-for-like revenue Excludes the impact of new stores acquired, opened and closed in the current or preceding financial year in both

the current year and comparative figures.

Loan to value (“LTV”) Gross debt (excluding lease liabilities) as a proportion of the valuation of investment properties and investment

properties under construction (excluding lease liabilities).

Maximum lettable area (“MLA”) The total square feet (“sq ft”) available to be fitted out to rent to customers.

Net debt Total borrowings (including ‘current and non-current borrowings and lease liabilities’ as shown in the

consolidated balance sheet) less cash and cash equivalents.

Net initial yield The forthcoming financial year’s net operating income expressed as a percentage of capital value, after adding

notional purchaser’s costs.

Net promoter score (“NPS”) An index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s

products or services to others. The Company measures NPS based on surveys sent to all of its move-ins and

move-outs.

Net rent per sq ft Storage revenue generated from in-place customers divided by occupancy.

Occupancy The space occupied by customers divided by the MLA expressed as a %.

Occupied space The space occupied by customers in sq ft.

Pipeline The Group’s development sites.

Property Income Distribution

(“PID”)

A dividend, generally subject to withholding tax, that a UK REIT is required to pay from its tax exempt property

rental business and which is taxable for UK-resident shareholders at their marginal tax rate.

Real Estate Investment Trust

(“REIT”)

A tax regime which in the UK exempts participants from corporation tax both on UK rental income and gains

arising on UK investment property sales, subject to certain conditions.

Real Estate Transfer Tax

(“RETT”)

RETT is levied in respect of the acquisition of the legal and/or beneficial ownership of real estate located in

theNetherlands, certain rights concerning such Dutch real estate, and shares in entities that qualify as a real

estate entity.

REVPAF REVPAF is an alternative performance measure used by the business. REVPAF stands for revenue per available

square foot (“REVPAF”) and is calculated by dividing revenue for the period by weighted average available square

feet for the same period.

Sterling Overnight Index

Average (“SONIA”)

The effective overnight interest rate paid by banks for unsecured transactions in the British Sterlingmarket.

Store EBITDA Store earnings before interest, tax, depreciation and amortisation.

Task Force on Climate-related

Financial Disclosures (“TCFD”)

The Financial Stability Board created the TCFD to improve and increase reporting of climate-related

financialinformation.

Total shareholder return

(“TSR”)

The growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase

additional units of shares.

Underlying EBITDA Operating profit before exceptional items, share-based payments, corporate transaction costs, gain/loss on

investment properties, depreciation and variable lease payments and the share of associate’s depreciation,

interest and tax. Underlying EBITDA therefore excludes all leasehold rent charges.

Underlying profit before tax Underlying EBITDA less leasehold rent, depreciation charged on property, plant and equipment and net finance

charges relating to bank loans and cash.

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OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS

Directors

David Hearn (Non-Executive Chairman)

Frederic Vecchioli (Chief Executive Officer)

Andy Jones (Chief Financial Officer)

Ian Krieger (Non-Executive Director)

Gert van de Weerdhof (Non-Executive Director)

Laure Duhot (Non-Executive Director)

Delphine Mousseau (Non-Executive Director)

Jane Bentall (Non-Executive Director)

Avis Darzins (Non-Executive Director)

Company Secretary

David Orr

Registered office

Brittanic House

Stirling Way

Borehamwood

Hertfordshire WD6 2BT

Registered company number

04726380

Websites

www.safestore.co.uk

www.safestore.com

Bankers

National Westminster Bank plc

ABN Amro Bank N.V.

Crédit Industriel et Commercial

Bank of China

Citibank N.A.

Banco de Sabadell S.A.

Independent auditor

Deloitte LLP

Statutory Auditor

2 New Street Square

London EC4A 3TR

Legal advisers

Travers Smith LLP

10 Snow Hill

London EC1A 2AL

Eversheds LLP

115 Colmore Row

Birmingham B3 3AL

Brokers and financial advisers

Investec Bank Plc

30 Gresham Street

London EC2V 7QN

Safestore Holdings plc | Annual report and financial statements 2023

178

Directors and advisers

Citigroup Global Markets Limited

Citigroup Centre

33 Canada Square

London E14 5LB

Financial PR advisers

Instinctif Partners

65 Gresham Street

London EC2V 7NQ

Shareholder information

Registrar

Link Group

The Registry

10th Floor

Central Square

29 Wellington Street

Leeds LS1 4DL

Telephone: +44 (0)371 664 0300

(Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable

international rate).

Lines are open between 9.00am and 5.30pm Monday to Friday, excluding public holidays in England and Wales.

Email: shareholderenquiries@linkgroup.co.uk

Share Portal Enquiries: shareholderenquiries@linkgroup.co.uk

Share Portal: www.signalshares.com

Through the website of our Registrar, Link Group, shareholders are able to manage their shareholding by registering for the Share Portal, afree,

secure, online access to their shareholding.

Please visit our investor relations website

For all the latest news and updates at www.safestore.com.

Safestore Holding plc’s commitment to environmental issues

isreflected in this Annual Report, which has been printed on

Magno Satin, an FSC

certified material. This document was

printed by Park Communications using its environmental print

technology, which minimises the impact of printing on the

environment, with 99% of dry waste diverted from landfill.

Boththe printer and the paper mill are registered to ISO 14001.

Safestore Holdings plc | Annual report and financial statements 2023

179

FINANCIAL STATEMENTSCORPORATE GOVERNANCESTRATEGIC REPORTOVERVIEW

Safestore Holdings plc Annual report and financial statements 2023

Further information and investor

updatescanbefound on our website at

www.safestore.co.uk/corporate

Safestore Holdings plc

Brittanic House

Stirling Way

Borehamwood

Hertfordshire WD6 2BT

Tel: 020 8732 1500

Fax: 020 8732 1510