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Annual Report
2025
Safestore Holdings plc
Safestore Holdings plc Annual report and financial statements 2025
Contents
Overview
1 Highlights
2 Financial highlights
3 About us
5 Investment case
Strategic report
6 Chairman’s statement
8 Chief Executive Officer’s statement
10 Safestore in action
17 Chief Financial Officer’s review
27 Our markets
29 Our business model, strategy and
how we create value
31 Our property portfolio
34 Engaging with our stakeholders and
our Section 172(1) statement
38 Principal risks and uncertainties
43 Non-financial and sustainability
information statement
44 Viability statement
45 Compliance with Climate-related
Financial Disclosures
46 Sustainability
Corporate governance
74 Introduction to corporate
governance
76 Board of Directors
78 Corporate governance
84 Nomination Committee report
87 Audit Committee report
91 Directors’ remuneration report
123 Directors’ report
127 Statement of Directors’
responsibilities
Financial statements
128 Independent auditor’s report
135 Consolidated income statement
135 Consolidated statement of
comprehensive income
136 Consolidated balance sheet
137 Consolidated statement of changes
in shareholders’ equity
138 Consolidated cash flow statement
139 Notes to the financial statements
169 Company balance sheet
170 Company statement of changes
inequity
171 Notes to the Company
financialstatements
175 Glossary
177 Directors and advisers
Strong operational
performance, investment in
future growth and earnings at
an inflection point.
Safestore’s performance in FY 2025 reflects strong operational execution and investment
in future growth. I want to thank our teams across the business for their hard work and
commitment throughout the year. We continued to drive REVPAF and optimise trading
across the like-for-like estate, which remains a key engine of profit growth for the Group.
We also demonstrated good cost control, and this continues to be a focus. The dividend
was up 1%, an important part of the total return for our shareholders.
Our new and recently opened stores are performing well across the portfolio, and,
together with the development pipeline of a further 20 stores, are expected to contribute
an additional £35–£40 million of EBITDA to the Group upon stabilisation.
We have entered the new financial year with confidence, and on the back of solid trading
in the first quarter to date. Safestore is now at an inflection point, where the significant
investment we have made in MLA expansion is driving revenue growth and is set to
translate into meaningful growth in earnings and long term value creation.
Frederic Vecchioli
Chief Executive Officer
Welcome
Highlights
Total Revenue
(£’m)
£234.3m
4.9%
Total Maximum
Lettable Area (“MLA”, sq ft)
9.3m
+8.0%
Adjusted Diluted
EPRA EPS (pence)
40.3p
(4.7%)
Group REVPAF
(£/sq ft)
27.47
(1.1%)
Dividend per share
(pence)
30.70p
+1.0%
Underlying
EBITDAR (£’m)
£137.0 m
1.2%
Closing Occupancy
(% of CLA)
78.1%
+0.1ppt
186.8
7.0
22
22
21
21
212.5
7.7
8.6
9.3
23
23
24
24
25
25
40.5
26.85*
25.10
22
22
22
21
21
21
47.5
27.59*
29.80
27.7 7
30.40
40.3
27.47
30.70
23
23
23
24
24
24
25
25
25
118.0
84.5%*
22
22
21
21
135.1
82.1%*
23
23
24
24
25
25
223.4
234.3
42.324135.4
78.0%
137.0
78.1%
224.2
8.1
47.9
27.70 *
30.10142.2
77. 0%*
Key financial drivers
• Group revenue at constant exchange rates (CER) up 5.0% to
£234.3 million, with 3.1% LFL growth; positive LFL growth across all
geographies and increasing contribution from non-LFL stores:
• UK revenue +3.3% improved through the year reaching £167.5
million, with increasing domestic occupancy, unit partitioning and
higher average storage rates driving LFL growth of 2.4%
• Paris revenue of €52.6 million +2.5% reflect solid LFL growth of
1.3% with increasing occupancy and flat average rates
• Expansion Markets total revenue of €26.2 million +27.0%; strong
growth in LFL (+13.5%) and non-LFL stores; Spain, Netherlands
and Belgium all performed well;
• Underlying store EBITDAR increased by 3.1% to £155.9 million;
inflationary cost pressures were partially offset by internal
efficiencies, resulting in LFL cost of sales increase of 4.4%, broadly
in line with sales and below the previously guided rise of 7-8%
• Underlying EBITDAR was £137.0 million, up 1.2%, lower growth
than store EBITDAR growth due to higher administrative costs
• Operating profit down 62.6% to £159.3 million due to lower property
revaluation gains of £23.1 million in FY 2025 (FY 2024: £292.2 million)
• Underlying net finance costs increased by £5.0 million to
£26.4 million due to increased borrowings to support the store
expansion programme
• Underlying profit before tax of £92.9 million and adjusted diluted
EPRA EPS 40.3p declined by 4.2% and 4.7% respectively,
reflecting the higher interest charge. Statutory profit before tax
of £127.1 million and Basic EPS of 50.9 pence declined 68.1%
and 70.1% respectively, as a result of lower fair value gains on
investment properties than in FY 2024
• Dividend per share of 30.70p, up 1%, underpinned by robust cash
flow from operating activities, in line with progressive dividend
policy and reflecting confidence in future prospects
• Balance sheet remained strong with £2.3 billion of net assets
growing 2.8% in the year. LTV ratio of 28.1% and interest cover
ratio (“ICR”) of 4.0x; capital structure underpinned by investment
property valuation of £3.5 billion
Strategy on track, pipeline executed
as planned
• Continued focus on REVPAF to optimise trading in our existing
store portfolio where we see significant potential to drive further
EBITDA growth from both LFL and non-LFL stores. Recently
opened (non-LFL) stores on track to meet 10% yield on cost hurdle,
with stores opened 2016-2021 achieving between 10%-20%
• £80 million investment in store development resulted in MLA growing
by a further 8% or 0.7 million sq ft to 9.3 million sq ft in FY 2025,
with the addition of 13 new stores and 1 extension, representing the
largest organic space increase in our recent history. In total since FY
2023 we have added 1.5 million sq ft, a 19% uplift to MLA
• £38.9 million investment in Italy through a new 50:50 joint venture
with Nuveen established in December 2024 with stores performing
in line with expectations
• Further enhancement of our technology-led operating model
that combines centralised efficiency and local expertise with
accelerated AI integration across marketing, pricing, and sales to
optimise revenue performance
• We continue to make good progress towards our target of
operational net zero with a 22% reduction in emissions intensity to
0.64 kgCO
2
e/ m
2
Guidance and FY 2026 outlook
• Q1 trading to date has shown a continuation of the trend in LFL
growth from FY 2025 across all our markets
• FY 2026 outlook: cautiously optimistic with a return to earnings growth
• Underlying LFL cost of sales growth expected to be 3%-6%
• Underlying net finance costs projected to increase by £1-£2 million
• Capital expenditure on new stores of £86 million
• 417k sq ft of additional MLA with a further 678k sq ft MLA in FY
2027 and beyond.
• On track to deliver the £35-£40 million of incremental EBITDA from
non-LFL stores and pipeline announced in January 2025
Key performance indicators
* Based on “MLA”.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
1
FY 2025 FY 2024
Change
(Total)
Change
(CER)
2
FINANCIAL METRICS
Total Revenue (£’m) 234.3 223.4 4.9% 5.0%
LFL
14
Revenue (£’m) 228.7 221.9 3.1%
Underlying EBITDAR
4
(£’m) 137.0 135.4 1.2% 1.3%
Operating Profit (£’m) 159.3 425.8 (62.6%)
Underlying Profit before Tax
5
(£’m) 92.9 97.0 (4.2%)
Statutory Profit before Tax (£’m) 127.1 398.6 (68.1%)
Adjusted Diluted EPRA EPS
11
(pence) 40.3 42.3 (4.7%)
Dividend per share (pence) 30.70 30.40 1.0%
BALANCE SHEET METRICS
EPRA Basic NTA
13
per Share (pence) 1,129 1,091 3.5%
Net Assets (£’m) 2,288.4 2,226.8 2.8%
Net cash inflow from operating activities (£’m) 99.9 95.9 4.2%
Net debt (£’m) 1,058.6 899.5 17.7%
Loan to value ratio (LTV) %
16
28.1% 25.1% (3.0ppt)
OPERATING METRICS
Maximum Lettable Area (“MLA”)
8
m sq ft 9.3 8.6 8.0%
Current Lettable Area (“CLA”)
3
m sq ft 8.5 8.2 3.9%
Closing Occupancy
7
(% of CLA) 78.1% 78.0% 0.1ppt
LFL Closing Occupancy (% of CLA) 81.2% 80.0% 1.2ppt
Group REVPAF
10
(£ / sq ft) 27.47 27.77 (1.1%) (1.0%)
LFL Group REVPAF (£ / sq ft) 28.93 28.12 2.9%
Key measures
Notes to Highlights, Financial highlights, Chairman’s
statement and Chief Executive’s statement
We prepare our financial statements using IFRS but we also use a few 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 to present results on a more comparable basis, removing FX movements.
These metrics are disclosed because management review and monitor performance of
the business on this basis. We also include a few measures defined by EPRA, which are
designed to enhance transparency and comparability across the European Real Estate
sector; see notes 11 and 13 below and ‘Non-GAAP financial information’ in the notes to
the financial statements.
1 Where reported amounts are presented either to the nearest £0.1 million or
to thenearest 10,000 sq ft, the effect of rounding may impact the reported
percentagechange.
2 CER is Constant Exchange Rate (Euro denominated results for the current
periodare 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. in order to present the reported results for the current
period on a comparable basis).
3 CLA is Current Lettable Area excludes space not yet fitted out and space which is
operationally unavailable from MLA (maximum lettable area). Measured in square
feet (“sq ft”).
4 Underlying EBITDAR was previously termed Underlying EBITDA. It 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, depreciation, the net profit from joint ventures and associates, interest
and tax. It has been renamed to ensure the name more closely reflects the nature
ofthe financial measure.
5 Underlying profit before tax is defined as underlying EBITDAR less leasehold
costs, depreciation charged on property, plant and equipment, net profit from joint
ventures and associates, and net finance charges relating to bank loans and cash.
6 Leasehold costs reflect the rental expense and therefore include both the lease
liability interest element and the fair value re-measurement of lease liabilities.
7 Occupancy excludes offices but includes bulk tenancy.
8 MLA is Maximum Lettable Area. Measured in square feet (sq ft).
9 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.
10 Revenue per Available Square Foot (“REVPAF”) is an Alternative Performance
measure used by the business and is considered by management as the best KPI
ofeconomic performance of a mature self-storage asset as it is the net outcome
ofthe occupancy/rate mix plus ancillary sales. It is calculated by dividing revenue
for the period by weighted average available square feet for the same period.
11 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, exceptional and one-off items, gain/loss on investment properties and
the associated tax impacts. The Company then makes further adjustments for
the impact of 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.
12 Cash flow before investing activities is defined as net cash inflow from operating
activities less leasehold cost payments.
13 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 14.
14 Like-for-like (“LFL”) information includes only those stores which have been open
throughout both the current and prior financial years, with adjustments made to
remove the impact of new and closed stores, as well as corporate transactions.
15 Expansion Markets comprise Spain, the Netherlands and Belgium plus income
earned in relation to the associate in Germany and the joint venture in Italy.
16 LTV ratio is loan to value ratio, which is defined as net debt (excluding lease
liabilities) as a proportion of the valuation of investment properties and investment
properties under construction (excluding lease liabilities).
17 ICR is interest cover ratio and is calculated as the ratio of Underlying EBITDA after
leasehold costs to underlying finance charges.
18 Yield on Cost is defined as incremental EBITDA divided by the initial investment
inanew store.
Reconciliations between underlying metrics and statutory metrics can be found in the
financial review and financial statements sections of this announcement.
Safestore Holdings plc | Annual report and financial statements 2025
2
Financial highlights
Who we are, what we do
Key numbers
Countries
7
Colleagues
858
Maximum Lettable
Area (“MLA”)
9.3m
sq ft
Stores
211
Stores in pipeline
20
MLA due tocome online
over next three years
1.1m
sq ft
Our operations
Safestore is one of Europe’s leading self-storage groups
and the largest in the UK. We focus our store operations
in dense urban and metropolitan areas with a strong
presence in London and central Paris. We have a proven
track record in long term value creation.
Revenue
Stores
by maturity
Customers
Property
mix
l UK 72.6%
l Paris 19.6%
l Exp Mkt 7.8%
l <2 yrs 10.4%
l 2-5 yrs 10.4%
l >5 yrs 79.2%
l Domestic 67%
l Business 33%
l Freehold 75.4%
l Leasehold 24.6%
Find out more online
corporate.safestore.com
OVERVIEW
FINANCIAL STATEMENTS
CORPORATE GOVERNANCESTRATEGIC REPORT
3
Safestore Holdings plc | Annual report and financial statements 2025
About us
Our strategy
Optimising trading performance of
existing portfolio
Maintaining a strong and flexible
capital structure
Selective portfolio management and
expansion opportunities
For more detail see pages 29 and 30
Our purpose Our business model
To add stakeholder value by developing profitable and
sustainable spaces that allow individuals, businesses and
local communities to thrive
We acquire, develop and operate sustainable self-storage
assets in attractive European markets
For more detail see page 78 For more detail see pages 29 and 30
For more detail see page 49
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
Our environment
Protect the planet from our
activities and manage risks to our
business from climate change
How we ensure sustainability
We have a wide range of stakeholders. What matters to each, how we
engage and how decision making considers their expectations are set
out in our Section 172 statement
In the UK we retain a REIT status meaning we are a tax efficient
business that delivers strong returns to key stakeholders
For more detail see pages 34 to 37
For more detail see page 148
Having strong relationships
withourkey stakeholders
Safestore’s REIT status
We love
customers
We lead
the way
We have
great people
We dare to
be different
We get it
Our values, created by our store teams, are the foundation of everything we do
Our values
Safestore Holdings plc | Annual report and financial statements 2025
4
About us continued
How we do business
Safestore has a proven track record in long term value creation through developing a
portfolio of self-storage properties that generate growing revenues, strong margins and
sustainable cash flows. We are a leading operator in the UK and Paris, with a growing
presence in other European countries. Our business benefits from efficient centralised
operations that deliver high levels of operational leverage over time.
The self-storage INDUSTRY
has excellent long term
growthcharacteristics
• Self-storage in Europe is still a
relatively immature, fragmented
industry with low penetration of stores
per capita compared to more mature
markets such as the US and Australia.
• Industry growth is supply driven;
new stores and effective marketing
generate higher customer awareness
and steadily increasing demand.
• The UK and Paris markets, where
Safestore is a leading player, have
demonstrated resilient long term
growth in supply and demand; we
expect other European countries
tofollow suit.
Safestore’s PEOPLE, led by a
highly experienced management
team, are fundamental to
creating value
• Safestore has a hugely experienced
management team and a proven track
record in value creation.
• Our rigorously trained and well-
incentivised store teams ensure high
levels of customer satisfaction tohelp
drive revenue growth.
• Investors in People Platinum
accreditation awarded for a second
time in 2024.
Safestore’s CASH FLOW AND
EARNINGS are at an inflection
point following an accelerated
investment cycle
• Disciplined investment approach
drives strong cash flow and returns
forthe long term.
• Accelerated investment cycle post-
Covid has peaked, and we expect a
step up in earnings growth from 2026.
• Additional longer term expansion
opportunities in Europe through joint
venturerelationships.
Safestore’s leading PORTFOLIO
is hard to replicate and
providesdiverse, multi-year
growth opportunities
• Safestore’s portfolio has been built
over several decades in dense urban
areas with high barriers to entry.
• We have demonstrated a strong
track record of securing high quality
developments delivering >10% yield
on cost at maturity.
• Our portfolio is diverse by geography
and maturity of store and provides
several layers of growth over the long
term, from filling unlet space in LFL
stores to new stores moving up the
maturity curve and covering their
fixed costs.
Safestore’s pan-European
PLATFORM drives
revenue maximisation
andscaleadvantages
• Our pan-European infrastructure,
technology and expertise in digital
lead generation, pricing intelligence
and in-store execution are at the core
of our revenue maximisation strategy.
• A customer-led approach allows us to
maximise store revenue opportunities
and achieve industry-leading REVPAF.
• Operating leverage enables high drop-
through rate of incremental revenues;
new stores roll out with marginal
increases in overhead costs.
Safestore aims to
deliver compounding
shareholder
returns through
the cycle – ten-year
TSR of 198%
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
5
Investment case
How we create value
Safestore delivered a strong
operational performance
and invested to drive future
growth, with earnings at an
inflection point.”
Introduction
It is pleasing to report a year of further progress and that Safestore
continued to deliver a strong operational performance in FY 2025
in the context of inflation-driven cost pressures and the short term
earnings impact from our accelerated development programme.
Ourstores experienced positive LFL sales growth throughout the
estate, which now spans seven European countries and presents
attractive prospects for multi-year growth. Revenue growth in the
financial year included encouraging LFL performance from our
mature UK and Paris sites and these stores continued to produce
the strong cash flow key to funding a large part of our development
programme. 0.7 million sq ft of new space was opened in FY 2025
and this represents the largest area of development the team has
ever delivered in a single year. We also invested in a new joint venture
with Nuveen in Italy which has started well and provides a footprint for
growth in an underdeveloped market. These are great achievements
from our dedicated and experienced Safestore team, at every level
ofthe business.
Financial results
Group revenue and underlying EBITDAR grew by 5.0% and 1.3%
respectively (CER), while underlying PBT and EPS declined 4.2%
and 4.7% as inflationary cost headwinds, new store expenses and
higher interest payments from financing our expansion impacted our
earnings. The dividend, an important part of the Safestore investment
opportunity, was increased by 1% to 30.70 pence per share, reflecting
our robust operating cash flow. Our balance sheet remained strong
with LTV at 28.1% and ICR at 4.0x, still comfortably within our internal
Overview
• Operational performance strong
despite inflation driven cost pressures.
• Portfolio continues to add additional
new space at pace.
• Stable Board in place implementing
recommendations from its prior year
evaluation.
• Good progress on social and
environmental responsibilities.
• Progressive dividend policy
maintained with a rebuild in cover over
the medium term.
David Hearn
Chairman
Safestore Holdings plc | Annual report and financial statements 2025
6
Chairman’s statement
thresholds. Net debt increased as anticipated by £159.1 million to fund
the development programme. EPRA NTA grew 3.5% to 1,129 pence
per share, a significant underpin reflecting the value generated by store
developments and the unique, and hard to replicate, attractions of our
property portfolio.
Strategic progress
Safestore’s strategy remains unchanged with management’s relentless
focus on optimising the trading performance of existing stores and
ultimately Safestore’s reputation as one of the best operators of self-
storage assets across Europe. We leverage property and operational
know-how to generate strong, sustainable returns in a growing
industry. These skills, built over decades, are deeply embedded in
how Safestore does business. Importantly in FY 2025, we continued to
invest in our capabilities – whether human capital or technology – that
enable the Safestore teams to deliver strong REVPAF, margins and
high levels of customer satisfaction.
Our portfolio continues to evolve and strengthen. We added 13 stores
in FY 2025 (incurring £80 million of new store capex), continuing
the delivery of the development pipeline. New stores help drive
future earnings growth by leveraging Safestore’s property expertise,
technology platform and financial firepower to build occupancy and
cover start-up costs quickly. Following this well-established ‘modus
operandi’ also reduces operational risk as we expand into new
geographies and joint venture partnerships such as in Italy.
It is encouraging to see the consistency of sales performance of
new store opened over the last 24 months, something the business
monitors closely, and this provides reassurance the stores are
on trackto reach our targeted returns. It is equally important
that as Safestore continues along its growth path, it maintains a
lean operatingcost base so that once stores stabilise (at around
fiveyears old), they achieve sustainably high store EBITDAR margins
withstrongcash conversion.
Our pipeline of future new stores is secure and we will be opening a
further 1.1 million sq ft of space in FY 2026 and beyond. We expect
this pipeline, together with non-LFL stores (those opened in the last
two years), to deliver incremental EBITDA of £35–£40 million upon
stabilisation. With the completion of recent openings, we expect the
rate of new store development will moderate in FY 2026 with the
potential to take advantage of further Joint venture opportunities
forgrowth over time.
Capital allocation and financial discipline are of course fundamental
to the returns that our portfolio delivers. The Board provides regular
oversight on investment opportunities and funding options taking into
account the market environment. This reflects our desire to generate
earnings growth, preserve a strong balance sheet and deliver a
progressive dividend.
In the year, investment was funded by operating cash flow of
£89.6million and £129.7 million of new financing split between a new
USPP and a new term loan, demonstrating the Group’s continued
ability to access debt capital. Net debt stood at £1,058.6 million at
the year end, with the balance sheet retaining comfortable headroom
to covenants for ICR 2.4x and LTV 60%. We are pleased to see our
average cost of debt fall to 3.46% over the period, a strong reflection
ofour management team’s success in pro-actively managing the debt.
Board developments and governance progress
I am grateful to be supported by a strong and capable Board.
Thepast year has benefited from a welcome period of stability,
withthe composition of the Board remaining consistent following
several consecutive years of change. This continuity has enabled
usto build on our collective experience and maintain a clear focus
onour strategic objectives.
Following the Board evaluation in FY 2024, we undertook a refresh
of our Committee structures, making changes to their composition
to distribute responsibilities and time commitments optimally among
Directors. In FY 2025, we conducted an externally facilitated Board
performance review, which confirmed that the Board remains well
aligned on key priorities and demonstrates a strong commitment to
close engagement with the business.
Our social and environmental responsibilities
• We have made progress on net zero initiatives and carbon,
embedded in day-to-day operational activities.
• Our people are key to our operational delivery and those in our
stores, helping customers each and every day, are the face of our
business. I am pleased to see the focus on ongoing training and
other initiatives to ensure we attract and retain the best people.
• Colleague engagement through our formal workforce advisory
panel is now fully embedded.
• My fellow Board members and I thank our Safestore colleagues
wholeheartedly for their hard work, dedication and passion for the
business each and every day.
Dividend
In line with the Group’s progressive dividend policy, the Board is
pleased to recommend a final dividend of 20.60 pence per share
(FY2024: 20.40 pence) resulting in a full year dividend up 1% to
30.70pence per share (FY 2024: 30.40 pence).
With this distribution we will have returned £448 million to
shareholders in the last ten years, reflecting the strong cash
generation of the business.
The full year dividend is covered 1.3x by earnings per share which
is below historical levels. The Board retains its commitment to a
progressive dividend whilst recognising the need to gradually rebuild
dividend cover as growth in earnings resumes.
Shareholders will be asked to approve the dividend at the Company’s
Annual General Meeting on 18 March 2026 and, if approved, the
final dividend will be payable on 14 April 2026 to shareholders on the
register at close of business on 13 March 2026.
Summary and outlook
The Board is confident that Safestore will continue to leverage its
operational and financial strengths to generate returns that are both
sustainable and in excess of our cost of capital. We have undergone a
period of elevated investment since FY 2022, successfully expanding
our estate to 211 stores to generate long term growth. As the pace
of development moderates and headwinds from inflationary cost
pressures ease, the Board has conviction that the business is at an
inflection point. The Group will reap the rewards from these actions,
delivering earnings growth and building on our track record of
delivering outstanding total shareholder returns, well into the future.
David Hearn
Chairman
14 January 2026
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
7
STRATEGIC REPORTOVERVIEW
Frederic Vecchioli
Chief Executive Officer
Group summary
Safestore delivered an encouraging performance in FY 2025, with
LFL growth improving through the year, a strong non-LFL revenue
contribution and further delivery of our store expansion programme.
We achieved this against a backdrop of lacklustre GDP growth,
demonstrating the resilience of the underlying demand for our
selfstorage offer. Revenue growth and store EBITDAR performance
were robust across all our geographies, notwithstanding the
anticipated inflation-driven cost challenges and the profit drag
impact of a higher number of new store openings. The slight decline
in underlying profit before tax and adjusted diluted EPRA EPS was
driven by increased debt to fund the store development programme,
which we are confident will contribute significantly to future earnings
growth. Overall, the results for the year reflect progress against our
strategy to optimise the trading performance of the existing store
portfolio and take advantage of selective expansion opportunities,
whilst maintaining a strong balance sheet.
Financial summary
Group revenues grew 5.0% (CER) in total to £234.3 million, with
LFL sales growth of 3.1% and newly opened (non-LFL) stores
contributing £5.9 million of revenue, up from £1.5 million in the prior
year. Underlying store EBITDAR was £155.9 million, up 3.2% (CER),
a good performance as we absorbed well-documented inflationary
cost increases and the incremental costs of rolling out new stores.
The underlying LFL cost of sales increase of 4.4% was below our
previously guided rate of 7-8%, helped by operational efficiencies
identified during the year which will continue to flow through in
FY2026. LFL store EBITDAR margins remained strong at 67.6%.
Underlying central administrative costs increased by £3.1 million or
19.6% to £18.9 million due to investments in technology capabilities
to enhance our data-led customer service and to support our larger
portfolio as well as re-established variable pay for Head Office
colleagues. This resulted in underlying EBITDAR of £137.0 million, up
1.3% (CER). Net finance costs rose by £5.0 million to £26.4 million due
to an increase in borrowings to fund the store expansion programme.
This impacted underlying PBT, which declined by 4.2% to £92.9 million.
In turn, Adjusted Diluted EPRA EPS fell by 4.7% to 40.3 pence.
Statutory profit before tax was £127.1 million (FY 2024: £398.6 million)
reflecting a lower gain on investment properties compared to the prior
year. EPRA basic EPS was 40.1 pence (FY 2024: 42.0 pence).
Cash flow before investing activities grew to £89.6 million (FY 2024:
£86.2 million). We incurred total capex of £109.2 million, including
£80 million on new store development compared to £94 million in
FY 2024. FY 2025 represented the peak MLA opening year for the
current pipeline development which runs to FY 2027 and beyond.
Net debt increased by £159.1 million to fund the store programme
Overview
• Continued to drive REVPAF
and optimise trading across our
LFL estate.
• Good cost control in place which
remains a focus.
• Continued dividend growth in line with
our TSR strategy.
• Investment in portfolio has been made
which will drive future return for our
shareholders.
• Earnings at an inflection point
which will translate into long term
value creation.
Safestore’s performance
in FY2025 reflects strong
operational execution and
investment in future growth.”
Safestore Holdings plc | Annual report and financial statements 2025
8
Chief Executive Officer’s statement
as planned, with a new five-year term loan of €77.5 million and a new
eight-year €70.0 million USPP arranged to refinance a portion of the
drawn RCF. The average blended cost of debt fell by 0.5ppt to 3.46%
due to lower rates on floating debt facilities and a higher proportion of
Euro denominated borrowings following the pro-active conversion of
€150 million of drawn facilities from GBP to EUR. Our balance sheet
remains strong: interest cover was 4.0x (FY 2024: 4.3x) and LTV stood
at 28.1% (FY 2024: 25.1%).
Safestore’s capital structure is underpinned by the valuation of
our investment properties which was £3,245.9 million (FY 2024:
£3,052.9million) at the year-end reflecting the stable valuation
oftheLFL estate and growth from the value created by our new
storedevelopment.
Trading Summary
Stores in our LFL portfolio (>two years old and 89% of MLA) delivered
revenue growth of 3.1% year on year. LFL closing occupancy was
81.2%, up 1.2ppt, and LFL REVPAF at a Group level was up 2.9%
to £28.93. This is a pleasing performance and reflects our relentless
focus on optimising trading in our existing store base.
Within the LFL estate, our mature stores (>five years old and 79%
of MLA) delivered 1.9% revenue growth through improvements in
average storage rate. Also within the LFL estate, our stabilising stores
(sites two-five years old and 10% of MLA), delivered good occupancy
and REVPAF growth, contributing 1.2ppt of the total 3.1% LFL growth.
Their performance underlines the opportunity to drive highly profitable
growth as they trade towards more mature occupancy levels.
Non-LFL stores (<two years old and 11% of MLA) delivered strong
revenue growth, contributing an additional £4.4 million of sales to the
Group (CER) as they quickly grow their occupancy and build REVPAF.
From a geographic perspective, in the UK our performance was
driven by higher domestic customer demand and the continued
conversion of space to smaller units that command higher rates.
TheUK business produced encouraging LFL revenue growth of
+2.4% and successfully offset inflationary cost pressures and the
impact of new store investment to achieve a stable store EBITDAR
margin for the year. In Paris, economic conditions remained tough,
but the business still produced robust revenue and store EBITDAR
growth and demonstrated excellent cost control. Our stores in
Expansion Markets (Spain, the Netherlands and Belgium) delivered
a strong trading performance and also a significant increase in store
EBITDAR as newer stores started covering their costs.
Portfolio and pipeline
We continued to deliver successfully on our new space programme.
MLA at the year end was 9.3 million sq ft, an 8% or 0.7 million sq ft
increase over the year with 13 new stores added. Our owned portfolio
has a total of 211 stores across five geographies with significant
strength in dense, metropolitan areas that hold high barriers to entry
for new site development. We opened two stores in the UK (+1.7% to
regional MLA), four in Paris (+16.8% to regional MLA) and four stores
in Spain (taking the number there to 16 and adding 45.5% to regional
MLA). New stores are trading in line with our expectations and are on
track to meet our hurdle yield on cost return rate of 10%, the highest
in the industry. In addition, our newly established joint venture with
Nuveen in Italy is performing well and together with our track record
gives us confidence that these joint venture relationships provide an
excellent route to grow our network.
Looking ahead, we are on track to deliver an additional 416,600 sq ft
in FY 2026, a 4.5% uplift to Group MLA. The total pipeline of new
space remains at 1.1 million sq ft as at the end of FY 2025, with
threefurther sites added to the pipeline since the half year results.
Platform and technology highlights
We made good progress in building our digital scale and the value
of our proprietary 27-year data set of over 2 million lets, further
strengthening our competitive advantage. In FY 2025 we accelerated
the integration of advanced AI across marketing, pricing and
property development capabilities that smaller operators cannot
replicate. Major initiatives in marketing – including refining expenditure
allocation through a proprietary AI-driven Customer Value Model that
optimises pay-per-click spend, the use of Google reviews, sentiment
tracking and AEO search visibility partnerships – helped to maintain
our overall marketing spend at 4.1% of revenues whilst enhancing
enquiry capture. In pricing architecture, we developed our predictive
modelling which anticipates occupancy trends and churn risks. This
enables more proactive revenue management, for example through
targeted discounting for low conversion segments. The operational
productivity of our sales teams continued to improve with the use
of enquiry conversion scoring models and automated sales calls
transcript analysis to drive performance coaching and ultimately
revenue generation.
Our priorities in FY 2026 are to grow REVPAF across all our stores,
continue our efforts to minimise cost growth and find efficiencies,
deliver the pipeline of new stores on time and on budget, maintain our
disciplined approach to investment and continue with our proactive
debt management. Together, we expect these core elements of our
strategy will generate long term, sustainable growth in earnings.
Dividend
The Board is pleased to increase the dividend by 1% to 30.70 pence
for the full year, of which 20.60 pence is payable as a final dividend in
April. We will continue to pursue a progressive dividend policy whilst
rebuilding dividend cover over the medium term.
Outlook
We are cautiously optimistic about the year ahead, in which we
expect earnings per share growth to resume. Q1 like-for-like growth
to date is tracking last year’s trends, despite the lacklustre economic
environment in many of our markets. We expect the inflationary cost
pressures incurred in FY 2025 to ease in FY 2026, alongside further
support from cost saving actions. We also anticipate a reduced
earnings drag from new stores in FY 2026 as a fewer number of
stores will be opened compared to FY 2025.
In FY 2026 we expect:
• LFL cost of sales growth of 3-6%;
• Underlying net finance costs increasing by £1-£2 million;
• Year-on-year MLA growth of 4.5% (0.4 million sq ft) in FY 2026 with
a further 7.3% MLA in FY 2027 and beyond; and
• Capital expenditure on new stores of c.£86 million.
Looking ahead, the Board is confident that the market dynamics for
self-storage in the UK and Europe remain positive with our portfolio
well positioned to deliver growth. We will continue to leverage and
finesse our marketing and operational expertise to drive REVPAF and
earnings. Growth will be driven by:
• EBITDA growth from LFL stores:
• Mature LFL stores (>five years old), which represent 79% of MLA,
through rate improvements, benefits from UK partitioning, and
cost inflation easing; and
• Contribution from fully invested stabilising LFL stores (between
two and five years old), which currently represent 10% of MLA,
as they continue up the maturity curve and build profitability;
• Increasing contribution from our non-LFL stores (1.0 million sq ft
or 11% of MLA and < two years old) and our current pipeline of
1.1 million sq ft projected to open over the next few years. This
2.1 million sq ft of space will contribute increasingly to earnings as
stores fill occupancy and cover their fixed costs. These stores are
expected to generate an incremental £35-£40 million of EBITDA
upon stabilisation; and
• Our joint ventures in Germany and Italy present an opportunity
to expand from a small footprint of stores with a low initial capital
outlay and management fee income. We see the potential for other
opportunities with this model to drive longer term portfolio growth.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
9
STRATEGIC REPORTOVERVIEW
Further information on our people strategy, wellbeing initiatives, and diversity
commitments can be found in our sustainability report on pages 46 to 73
Our people-led approach is a strategic differentiator. We empower
colleagues through aligned incentives and development opportunities,
creating a culture where individuals thrive – and Safestore thrives
with them.
• We employ over 850 colleagues, the majority in store-based roles,
where engagement with customers drives satisfaction, occupancy,
and revenue growth.
• We operate a performance-linked incentive framework, including a
transparent monthly bonus scheme aligning individual contribution
with business outcomes.
• In FY 2024, we achieved Investors in People Platinum accreditation
for the second time, reflecting our commitment to a high
performing, inclusive workplace where colleagues feel valued.
• In FY 2025, we delivered over 35,000 hours of training, averaging
40 hours per colleague, focused on practical skills, leadership
development and cross-functional collaboration.
• We offer structured career development through our Sales
Consultant Journey and our Store Manager Development
programme, which includes a Level 3 Management and Leadership
qualification funded by the Apprenticeship Levy, alongside
support for professional memberships with bodies such as CIPD,
ACCA and RICS.
My time at Safestore has genuinely meant a lot to me.
It’sa fantastic company to work with, and I’ve been lucky
enough to meet so many different people every day.
Hearing their stories, understanding their situations, and
being able to support them has helped me grow a deeper sense of
empathy and understanding – both in my role and as a person.
Starting the Store Manager training course is an exciting next step,
and I’m looking forward to building on everything I’ve learned so far
and continuing to grow within the business.”
Safestore has been one of the most rewarding
experiences of my career. From my very first day, I was
welcomed with genuine warmth, and that feeling has
never faded. There’s no sense of hierarchy here –
everyone is treated with respect and made to feel valued.
What I enjoy most is coaching and developing my team, helping them
grow and watching their confidence build. Over the years, I’ve learned
a great deal about leadership, communication and supporting
one another.”
Jayanna joined Safestore in March 2025 and quickly embraced the
Company’s culture of growth and development. With aspirations to progress
into leadership, she is preparing to join our Store Manager Development
programme – a key step toward building a career inmanagement.
Punch has been part of Safestore for nearly five years, progressing
into a leadership role where he thrives on coaching and developing
his team. His story reflects the strong sense of belonging and shared
success that defines our culture.
Over the years, I developed a passion for the business and
a desire to progress, which led me to take on the challenge
of the SMD programme. Although I hadn’t studied in a
longtime, I threw myself in because I wanted to further
mycareer. The programme was a fantastic opportunity – it gave me
thechance to learn new skills, apply management theories and opened
the door to a manager’s role.”
Mani’s journey with Safestore began in 2016 as a Sales Consultant.
After successfully completing our Store Manager Development
programme in 2024 with a Distinction, she now leads her first store
in Central London – a testament to our commitment to career
progression and professional excellence.
Empowering our people to deliver exceptional
customer experiences and drive growth
Jayanna – Sales Consultant,
West London
Mani – Store Manager,
Central London
Punch – Store
Manager, Middlesex
Safestore Holdings plc | Annual report and financial statements 2025
10
Safestore in action
Trading and operational review
Trading data
TOTAL LIKE-FOR-LIKE
Revenue Metrics 2025 2024 Change 2025 2024 Change
Revenue (millions)
Group (GBP) £234.3 £223.4 4.9% £228.7 £221.9 3.1%
UK (GBP) £167.5 £162.2 3.3% £164.8 £161.0 2.4%
Paris (EUR) €52.6 €51.3 2.5% €51.9 €51.2 1.3%
Expansion Markets (EUR) €26.2 €20.5 27.0% €23.0 €20.1 13.5%
Average rate (per sq ft)
Group (GBP) £30.20 £29.85 1.2% £30.58 £29.90 2.3%
UK (GBP) £30.68 £29.94 2.5% £30.71 £29.95 2.5%
Paris (EUR) €41.81 €42.28 (1.1%) €42.51 €42.33 0.4%
Expansion Markets (EUR) €24.30 €23.28 4.4% €25.29 €23.44 7.9%
REVPAF (per sq ft)
Group (GBP) £27.47 £27.77 (1.1%) £28.93 £28.12 2.9%
UK (GBP) £29.24 £28.85 1.3% £29.56 £28.77 2.8%
Paris (EUR) €37.33 €39.13 (4.6%) €39.04 €39.39 (0.9%)
Expansion Markets (EUR) €18.79 €18.48 1.7% €23.00 €20.38 12.9%
Space and occupancy metrics 2025 2024 Change 2025 2024 Change
Closing occupancy (million sq ft)
Group 6.67 6.41 4.0% 6.33 6.34 (0.1%)
UK 4.52 4.54 (0.4%) 4.43 4.51 (1.8%)
Paris 1.19 1.09 8.4% 1.12 1.09 3.2%
Expansion Markets 0.96 0.78 23.4% 0.78 0.74 5.8%
Closing occupancy (% of CLA)
Group 78.1% 78.0% 0.1ppt 81.2% 80.0% 1.2ppt
UK 79.9% 79.6% 0.3ppt 80.6% 80.3% 0.3ppt
Paris 81.2% 81.9% (0.7ppt) 84.8% 82.7% 2.1ppt
Expansion Markets 67.3% 65.5% 1.8ppt 79.7% 74.4% 5.3ppt
MLA (million sq ft)
Group 9.28 8.59 8.0% 8.24 8.23 0.1%
UK 5.98 5.88 1.7% 5.79 5.81 (0.3%)
Paris 1.66 1.42 16.8% 1.40 1.37 2.1%
Expansion Markets 1.64 1.29 27.1% 1.05 1.05 0.0%
CLA (million sq ft)
Group 8.54 8.22 3.9% 7.80 7.92 (1.6%)
UK 5.66 5.70 (0.8%) 5.49 5.61 (2.1%)
Paris 1.46 1.34 9.3% 1.32 1.31 0.6%
Expansion Markets 1.42 1.19 20.1% 0.99 1.00 (1.2%)
Geographic underlying performance – P&L in local currencies
FY 2025 FY 2024
Underlying performance
UK
£’m
Paris
€’m
Expansion
Markets
€’m
Total (CER)
£’m
UK
£’m
Paris
€’m
Expansion
Markets
€’m
Total (CER)
£’m
LFL 164.8 51.9 23.0 228.7 161.0 51.2 20.1 221.9
Non-LFL 2.7 0.7 3.2 5.9 1.2 0.1 0.4 1.5
Total revenue 167.5 52.6 26.2 234.6 162.2 51.3 20.5 223.4
LFL 109.1 39.4 14.1 154.6 108.8 37.6 11.6 150.8
Non-LFL 1.0 (0.4) 0.9 1.4 0.7 — (0.5) 0.4
Total store EBITDAR 110.1 39.0 15.0 156.0 109.5 37.6 11.1 151.2
LFL store EBITDARmargin 66.2% 75.9% 61.3% 67.6% 67.6% 73.4% 57.7% 68.0%
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
11
STRATEGIC REPORTOVERVIEW
UK (64% of MLA, 139 stores)
Our operational performance in the UK reflects a continuously
improved revenue trajectory through the year. Total revenue was up
3.3% to £167.5 million with LFL growth of 2.4% to £164.8 million.
Driven by increased product adoption, demand from domestic
customers remained robust throughout the year, with space occupied
up 3.4% at year-end, enabling us to accelerate our partitioning
programme by converting larger units into smaller units better suited
to domestic customer demand.
The programme is reducing our historical overweight to larger units
(>250 sq ft) within our UK portfolio, resulting in more smaller and
higher yielding configurations and enabling a more typical 70/30
domestic/business customer split in terms of space occupied.
Weintend to convert a total of 500,000 sq ft (out of an initial total of
approximately 1 million sq ft) of larger units into smaller units over
two years and made good progress in FY 2025 with 190,000 sq ft
completed. We expect to convert the balance in FY 2026 and 2027.
As smaller units have a higher rental value/sq ft, this has a positive
impact on the average rate we achieve and ultimately will drive
REVPAF growth.
LFL occupancy closed broadly flat year on year at 80.6% with
occupied space in units smaller than 250 sq ft increasing 1.4% and
occupied space in larger units decreasing by 132,000 sq ft (15.7%).
Business occupied space is down 6.2% on FY 2024, with the level
impacted by the unit partitioning programme described above. This
change in mix to smaller units and domestic customers contributed
tothe increase of 2.5% in the achieved rate for LFL stores, reflecting
the Group’s strategy to optimise REVPAF.
In the year there were eleven UK stores still stabilising and included
in LFL. These stores, which are between two and five years old,
increased their occupancy and provided a meaningful contribution
toLFL revenue growth. We expect stabilised occupancy of 85–90%
in our UK LFL portfolio, compared to the 80.6% achieved in FY 2025,
with further occupancy growth in stabilising stores expected to be a
contributing driver in closing this gap.
In addition to our LFL portfolio we have opened six stores since the
end of FY 2023 which are currently classified as non-LFL. These
stores contributed £1.5 million to year-on-year revenue growth in
the financial year and are performing in line with their expected
maturity curve.
The UK LFL store EBITDAR margin fell to 66.2% (FY 2024: 67.6%).
This was due to an increase in the LFL cost of sales base of 6.9% to
£55.7 million driven largely by inflation-linked increases in the National
Living Wage and National Insurance impacting employee costs, and
a 10.2% increase in business rates partially offset by savings from
integrating call centre activities in stores and improved insurance
costs. As a result, UK LFL store EBITDAR increased only slightly by
£0.3 million to £109.1 million for the financial year.
The strong growth in revenue from non-LFL stores in the UK
led to total EBITDAR for the UK to increase £0.6 million or 0.5%
year-on-year.
The mix of our customer base is depicted in the table below. The
combined impacts of stronger demand from domestic customers and
the partitioning of larger units, resulted in the proportion of domestic
customers in the UK increasing to 63% of occupied sq ft at the end of
FY 2025 (FY 2024: 59%).
Business & domestic customers UK Paris
Expansion
Markets
Domestic customers
Numbers (% of total) 79% 82% 90%
Sq ft occupied (% of total) 63% 66% 83%
Average length of stay (months) 17.3 22.9 21.6
Business customers
Numbers (% of total) 21% 18% 10%
Sq ft occupied (% of total) 37% 34% 17%
Average length of stay (months) 26.0 26.4 30.4
Paris (18% of MLA, 34 stores)
Our Paris business delivered €52.6 million revenue with LFL growth
of 1.3% and non-LFL delivering €0.7 million of revenue. This was a
steady result in context of the weaker economic conditions of the
region in FY 2025.
On a LFL basis, closing occupancy increased 2.1ppt to 84.8% in the
year, reflecting the strength of our unique portfolio of stores located
in both city centre and suburban areas and our skills at driving and
converting online enquires. The LFL average rate achieved was up
0.4% and LFL REVPAF was down slightly (0.9%) due to an additional
30,000 sq ft of CLA from two store extensions opened in the last
18months. These extensions will support LFL revenue growth in
Parisas they mature.
In FY 2024 and FY 2025, we opened a total of four new stores
and one extension in Paris, with a further four in the pipeline which
will take the number of stores in the market to 38. Non-LFL stores
contributed €0.6 million to year-on-year revenue growth. This 31%
growth in MLA means that our portfolio density within central Paris
will increase substantially and whilst we expect that the new stores
will be significant contributors to growth as they mature in the years
ahead, we anticipate that performance of LFL stores may be impacted
due to our approach of giving customers choice of storage locations
and prices with cross-network space allocation.
The LFL store EBITDAR margin rose to 75.9% mainly due to LFL cost
of sales in Paris falling 8.1% year on year. This reflected a normalising
bad debt provision and continued tight cost control, particularly in
the dynamic management of staffing and lower store variable pay,
together with savings in utilities through using Group procurement.
As a result, LFL EBITDAR for Paris increased by a healthy 4.8% year
on year to €39.4 million. Total store EBITDAR increased at a slightly
lower rate of 3.7% reflecting the impact of new store openings.
Expansion Markets (18% MLA, 38 stores)
Our Expansion Markets continued to be a strong contributor to Group
revenue growth with LFL sales increasing 13.5% to €23.0 million year
on year and total sales increasing 27.0% to €26.2 million.
Performance in each market was strong. In Spain (16 stores) revenue
grew 22.9% on a LFL basis to €7.7 million through both occupancy
and rate improvements with growth supported by seven stabilising
stores. LFL revenue in the Netherlands (15 stores) of €9.1 million
and Belgium (7 stores) of €5.5 million grew by 10.1% and 13.0%
respectively, achieved through both occupancy and rate increases.
LFL closing occupancy increased from 74.4% to 79.7% with the
growth in particular coming from stabilising stores in the Netherlands
and Spain as they fill up towards the Mature LFL store average level
of85.8% (FY 2024: 84.5%).
Safestore Holdings plc | Annual report and financial statements 2025
12
Chief Executive Officer’s statement continued
From planning to opening at pace
Planning permission for the store was granted in February 2024
and the build progressed rapidly from concept to completion.
Once demolition began in May 2024, Safestore and its construction
partners moved at speed. This swift and co-ordinated programme
meant the store opened just 21 months after planning consent
was granted.
Energy efficiency and carbon reduction features
The store incorporates multiple low carbon features that support
operational efficiency and reduce ongoing emissions:
• Fully electric building with no gas connection
• Motion sensor LED lighting throughout
• Fully electric passenger lift
• 50kW rooftop solar PV system supplying renewable power
to the store
• Living green wall across the front and side elevations with
automated irrigation and drainage
• Smart building systems, including energy-efficient controls
andNoke digital access through a secure mobile app
These technologies support our ambition to create modern,
lowimpact stores with long term sustainability built in.
Promoting sustainable transport
The external environment has been designed to encourage greener
travel for customers and colleagues:
• Twin 22kW EV charging points and a twin 50kW rapid charger
• Secure cycle parking
• A relocated bus stop installed directly outside the store
These facilities help reduce transport related emissions and make
thesite easily accessible without the need for private car use.
Delivering strong environmental ratings
Safestore Wembley has achieved an A+ EPC rating and is on track
to receive a BREEAM ‘Excellent’ certification. Together, these
accreditations reflect both the efficiency of the building in use
andthesustainable methods applied throughout construction.
50kW
rooftop solar
PV system
4
EV charging
points
45/45
Considerate Construction
Scheme score
Sustainable construction and material re-use
Sustainability was embedded from the earliest stage of the project.
The previously derelict site was regenerated with an emphasis on
minimising waste and lowering embodied carbon.
Key highlights include:
• The existing concrete slab was crushed and repurposed as part
of the piling mat, reducing waste and vehicle movements.
• A large underground attenuation tank was installed beneath the
car park to control rainwater runoff and support local drainage
infrastructure.
• The building uses composite and built-up cladding systems,
curtain wall glazing on the main elevation, and a single-ply roof
membrane for long term durability and efficiency.
The project also achieved the maximum score of 45/45 on both
Considerate Construction Scheme visits, demonstrating a high
standard of environmental and site management.
Safestore Holdings plc | Annual report and financial statements 2025
13
FINANCIAL STATEMENTS
CORPORATE GOVERNANCESTRATEGIC REPORTOVERVIEW
Safestore in action
Safestore Wembley – a fast-track,
lowcarbondevelopment
Safestore Wembley, opened in November 2025, is one of our most sustainably
delivered developments, turning a long-derelict brownfield site into a modern,
energy-efficient storage facility designed to serve customers and businesses
across London. With over 50,000 sq ft of lettable space, the store demonstrates
best practice in low carbon construction, smart technology, and urban regeneration.
Expansion Markets (18% MLA, 38 stores) continued
New stores and expansions contributed €3.2 million of non-LFL
revenue, with growth of €2.8 million in the year, largely through
openings in Spain.
Management fees from our joint ventures in Germany and Italy
contributed €1.7 million to Expansion Market revenue (FY 2024:
€0.8 million).
The LFL store EBITDAR margin increased to 61.3%, up 3.6ppt.
LFLcosts of sales for Expansion Markets increased 4.7%, reflecting
a mix of normal inflationary increases and the timing of maintenance
expenses. As a result, Expansion Markets LFL store EBITDAR
increased 21.6% with store EBITDAR including non-LFL stores
increasing 35.1% year-on-year.
Joint ventures and associates
We have an associate investment with Carlyle in Germany and a joint
venture with Nuveen in Italy. These joint ventures represent a route
for the Group to access new geographies and expand our managed
portfolio with diluted risk and with lower capital deployed. We earn
management fees which are recorded in Expansion Market revenue
together with our share of the results of the joint ventures themselves.
Our associate in Germany has seven stores totalling 327,000 sq ft with
a further five in its pipeline. Safestore owns 10% of the associate. The
underlying share of losses for FY 2025, a £0.6 million loss (FY 2024:
£nil), reflects one-off professional fees related to the establishment of
the business and normalisation of leases.
We entered into the joint venture in Italy in December 2024 through
the acquisition of a 50% share in EasyBox at a cost of £38.9 million.
EasyBox comprises twelve stores (of which two opened in FY 2025)
and is a leading platform in the emerging Italian storage market where
the supply of self-storage is equivalent to 3% of that in the UK. The
stores are located in the key economic centres of Rome, Florence
andnorthern Italy, and total 821,675 sq ft. and are performing in line
with our expectations. The underlying share of profit for FY 2025, a
£0.5 million gain (FY 2024: £nil), reflects the profit for the first nine
months of the 2025 calendar year.
MLA and CLA space and occupancy by geography
When developing new stores, we occasionally delay the full fit out
of the interior of our stores to reflect the phasing of occupancy
increases. In addition, through the partitioning programme space
can be held as unavailable until it is converted. Together these areas
which are still to be fitted out are not available to be leased and are
hence excluded from CLA.
(m sq ft) MLA
To be
fitted out
Operationally
unavailable CLA
%
Occupancy
of MLA
%
Occupancy
of CLA
UK 6.0 (0.2) (0.2) 5.6 75.6 79.9
Paris 1.7 (0.2) (0.0) 1.5 71.3 81.2
Expansion
Markets 1.6 (0.2) (0.0) 1.4 58.5 67.3
Total 9.3 (0.6) (0.2) 8.5 71.8 78.1
Pan-European platform for growth
Our operating model combines the benefits of centralised expertise
with targeted local execution. Core strategic functions, including
Marketing, IT, Revenue Management, Finance, and Construction
Analytics, are delivered from our UK headquarters enabling efficient,
consistent execution across all markets. This platform is integrated
with local operational support teams which are deployed specifically
in markets where on-the-ground expertise generates incremental
value and enhances asset performance.
Digital platform capabilities serve as a critical differentiator within our
industry for new lease enquiry generation and revenue optimisation.
Our centralised, in-house teams of specialists together with our
proprietary data set of years of historic leases enable the development
of advanced marketing tools and machine-learning algorithms to drive
performance. This provides us with a distinct competitive advantage
over most of the market, which consists largely of smaller operators
lacking the data depth required to replicate our price/occupancy
optimisation approach.
During the year, we accelerated the integration of artificial intelligence
(“AI”) across our key business functions to drive operational efficiency,
optimise revenue generation and enhance investment rigour. This
includes in marketing, where we have refined expenditure allocation
through a proprietary AI-driven Customer Value Model that optimises
pay-per-click spend by feeding enquiry value data back to Google,
alongside deploying generative AI to scale multi-lingual content
effectively. We also further strengthened our digital presence
throughGoogle reviews, sentiment tracking and AEO search visibility
partnerships, while testing AI-led campaign expansion tools to monitor
visibility and sentiment across emerging search platforms. InFY2025
these initiatives enabled us to enhance our enquiry capture whilst
maintaining a stable marketing cost of 4.1% of revenue (FY 2024: 4.1%).
We have further improved our pricing architecture through predictive
modelling which anticipates occupancy trends and churn risks,
enabling proactive revenue management. This includes targeted
discounting for low conversion segments and elasticity modelling
tooptimise the timing and magnitude of rate management.
The operational productivity of our sales teams continued to improve
with the use of enquiry conversion scoring models and automated
sales calls transcript analysis to drive performance coaching.
Additionally, the imminent rollout of custom AI agents will streamline
internal procedural queries and credit control authorisations.
Finally, we bolstered our property development capabilities with demand
and rate prediction models that analyse critical site attributes and provide
data-driven validation for new site selection, significantly mitigating
risk in untested markets and ensuring robust capital deployment.
The Safestore portfolio comprises both automated and staffed
facilities. Through our technology platform, we are able to offer
customers the option to choose a unit, start a contract fully online,
and access their space all without human intervention.
Nevertheless, our data consistently demonstrates that staffed
interactions drive superior financial outcomes, including higher
conversion rates and better rental yields. In the UK, spontaneous
adoption of a fully automated customer journey remained stable
at approximately 8%. While 60% of our customers execute their
contracts remotely, the majority, particularly first-time users, prioritise
interaction with our professional teams before completing their
e-contract. This consultative approach helps customers to select
the correct unit size (preventing the ‘over-estimation’ common in
self-service) and ensure they have the right level of customer goods
protection, and which also supports our yield optimisation. Balancing
automation with high value human interaction translates into both an
industry-leading ancillary sales contribution (16.1% of total revenue in
FY 2025) and REVPAF levels among the highest in the sector, growing
by 2.9% on a LFL basis in the year.
Safestore Holdings plc | Annual report and financial statements 2025
14
Chief Executive Officer’s statement continued
We continue to make good progress towards our target of operational net
zero with a 22% reduction in emissions intensity to 0.64 kgCO
2
e/ m
2
.
We now have all stores powered by certified zero-carbon electricity
with in-store improvements including fitting high efficiency lighting to
customer units and removal of gas heating appliances making further
contributions. We install solar panels on new openings where possible
and increased our capacity by over 450kWp in FY 2025, and we
expect this to further expand in FY 2026 to include fitting panels on
mature stores.
Portfolio review
Our store expansion model
We develop and acquire stores only when opportunities are expected
to hit our hurdle rate of return and the investment ensures we remain
within our balance sheet parameters through economic cycles.
This disciplined approach has served us well, creating a portfolio
that is hard to replicate and one that has driven a strong track
record of growth whilst navigating the macroeconomic and interest
rates cycles.
We focus on acquiring sites in dense, urban areas where we can
leverage our scale and operational expertise, and where barriers to
entry are high as supply is constrained by strict zoning regulations
and a scarcity of suitable development land. This strategy is reflected
in our recent development activity: of the 30 stores developed since
2023, three are located in London, five in Paris, ten in Barcelona
and Madrid, and six in the Randstad in the Netherlands, reinforcing
our market leadership in Europe’s most valuable real estate
territories. Over time it is expected that these locations will benefit
from significant first-mover advantages as prime urban assets are
largely irreplicable in today’s planning environment, providing strong
defensive characteristics in markets with deep and growing demand.
Development programme progress
In recent years we have stepped up our organic development
programme to take advantage of new space opportunities and ensure
longer term earnings growth for the portfolio. Since the beginning of
FY 2023 we have delivered 30 new stores totalling 1.5 million sq ft
of new space through investing £242 million in new store capital
expenditure, expanding the Group’s MLA by 19.4% to 9.3 million sq ft.
Included in this, in FY 2025 we opened 13 new stores, adding
0.7million sq ft to the portfolio which reached 211 stores. These
openings mark a third consecutive year of opening eight or more
newstores to generate long term growth.
The openings in the year include two in London, four in Paris and
seven in Expansion Markets (Spain four stores, the Netherlands two
stores, Belgium one store). New store locations are focused on key
metropolitan areas in each country.
With these openings, we now have 38 stores in Expansion Markets
reflecting our investment in countries where there are relatively
low levels of supply and positioning our portfolio to capture the
opportunity as these markets grow.
The valuation of our portfolio of investment properties increased
£193.1 million in the year primarily driven by the completion
of developments in the year, with the valuation at year end of
£3.25billion. Wehave financed our development programme
througha combination of retained earnings and debt and as
a result,net debt increased in the year by £159.1 million to
£1,058.6million, with the balance sheet remaining strong and
comfortably within our covenants. This disciplined approach
to capitalallocation has allowed us to add 2.5 million sq ft to
the portfolioover the last ten years without the need for any
equityincreases.
Development pipeline
There is a further 1.1 million sq ft of space (20 stores) in the current
development pipeline to be delivered from FY 2026 with total associated
capex of £219 million (of which £116 million was still to go at the end of
FY 2025). Within this are three new sites that have been identified and
secured since the FY 2025 half year results. The pipeline continues to
reflect our focus on key metropolitan areas across our markets and
includes eleven stores in London and SE England, four stores in Paris
and one in each of Barcelona and Madrid. In FY 2026 to date, one
store has been opened in Paris and one in London.
Our pipeline prioritises acquiring sites subject to planning, ensuring
that capital for land or building acquisition is deployed only when
construction is imminent, which significantly shortens the investment
cycle and accelerates payback timing. The pipeline reflects an
average facility size of 55,000 sq ft and avoids the development
of oversized stores, which we believe offer materially lower returns
on capital due to lower rental rates (a stabilised rate c. 20% less
than our portfolio average), higher construction costs and longer
permittingtimelines.
On completion of the existing pipeline the total investment since
the start of FY 2023 will be £461 million funding 2.5 million sq ft of
space and 50 new stores. In addition, we have invested a total of
£44million in joint ventures in Germany and Italy, which are generating
management fees and provide us with the opportunity to access at
scale two large European markets.
Our development hurdle rate is 10% yield-on-cost (defined as
incremental EBITDA/initial investment) upon stabilisation, which is
usually five to six years from opening with earnings break-even (after
the cost of financing) achieved between 18 and 24 months. Consistent
with our investment model, new stores typically follow a clear ‘J-curve’
trajectory: while year 1 reflects the impact of a fixed cost base whilst
sales ramp up, stores typically achieve operational break-even towards
the end of the first year, followed by rapid yield acceleration in years 2
to5 as occupancy and rate move towards stabilisation.
Recent vintages of new stores, including those opened in FY 2022
and FY 2023, are tracking in line with these established historical
benchmarks towards our hurdle rate, underpinning our confidence
in the future revenue contribution from our development pipeline.
Weexpect our non-LFL stores (stores <two years old / opened
sinceFY 2024) together with the existing pipeline to deliver a
total of £35-£40 million of incremental EBITDA to the Group
uponstabilisation.
Beyond the existing pipeline, our strong cash flow and disciplined
approach to capital allocation means that we have financial capacity
for further moderate space expansion. We will take advantage of
selective opportunities accordingly, including investment in joint
ventures, while being mindful of the short term impact on earnings
from new store costs and finance expenses.
Frederic Vecchioli
Chief Executive Officer
14 January 2026
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
15
STRATEGIC REPORTOVERVIEW
1
2
3
4
5
1
Milan – 6 stores
2
Turin – 2 stores
3
Genoa – 1 store
4
Florence – 1 store
5
Rome – 2 stores
Safestore Holdings plc | Annual report and financial statements 2025
16
Safestore in action
EasyBox: Safestore’s
entry into Italy
In December 2024, the Group entered into a
50/50 joint venture with Nuveen, acquiring the
€175 million EasyBox business in Italy.
EasyBox has twelve modern stores, all situated in prime locations in
Rome, Florence and Northern Italy including two new developments
which were opened in FY 2025. The portfolio of stores, together with
the strong operational base and positive track record provides a
unique opportunity in the Italian market.
Supply in the Italian market is a fraction of that in other key economies
of western Europe with levels per inhabitant equivalent to only 3%
of that of the UK. This provides a strong position for growth in the
affluent markets where we are situated which could include further
additions to the portfolio in the future.
We have invested a total £38.9 million for the acquisition including the
two new stores and expect to achieve similar yield on costs on the
capital deployed that we target for organic developments – over 10%.
During the course of FY 2025 we have been integrating EasyBox
into the Safestore platform, leverage our expertise, technology and
processes to drive the business.
This combination of a lower initial capital outlay combined with utilising
the Safestore platform is a key generator of value for us and our partners
and is a further demonstration of the strong track record we have with
joint ventures.
Simon Clinton
Chief Financial Officer
2025
£’m
2024
£’m
Movement
%
Revenue 234.3 223.4 4.9%
Underlying cost of sales (78.4) (72.2) 8.5%
Underlying store EBITDAR 155.9 151.2 3.1%
Underlying administrative costs (18.9) (15.8) 19.6%
Underlying EBITDAR 137.0 135.4 1.2%
Leasehold costs (16.1) (15.5) 3.9%
Underlying EBITDA after leasehold costs 120.9 119.9 0.8%
Depreciation (1.5) (1.5) 0.0%
Net underlying finance charges (26.4) (21.4) 23.4%
Net profit from joint ventures and associates (0.1) (0.0) 100.0%
Underlying profit before tax 92.9 97.0 (4.2%)
Current tax (4.4) (4.3) 2.3%
Adjusted EPRA earnings 88.5 92.7 (4.5%)
Diluted shares (for ADE EPS) (m) 219.7 219.3 0.2%
Adjusted Diluted EPRA EPS (p) 40.3 42.3 (4.7%)
Underlying income statement
The table below sets out the Group’s underlying results of operations for the twelve months ended 31 October 2025 (“FY 2025”) and the
twelve months ended 31 October 2024 (“FY 2024”). 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 associate 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.
Safestore delivered a robust financial outcome
in FY 2025. The business continued to invest in
new store development which impacted profits
through higher interest payments. We remain
confident these investments will drive future
earnings growth.”
Chief Financial Officer’s review
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
17
STRATEGIC REPORTOVERVIEW
Underlying income statement continued
The table below reconciles statutory profit before tax in the income statement to underlying profit before tax in the table above.
2025
£’m
2024
£’m
Statutory profit before tax 127.1 398.6
Adjusted for:
– gain on investment properties and investment properties under construction (33.4) (301.9)
– share of joint ventures’ and associates’ non-underlying income (2.6) —
– share-based payments 1.1 0.3
– exceptional items 0.7 —
Underlying profit before tax 92.9 97.0
Revenue and underlying profit by region
2025 2024
UK Paris Exp Mkt Total UK Paris Exp Mkt Total
Total revenue local currency ’m 167.5 52.6 26.2 — 162.2 51.3 20.6 —
Average exchange rate — 1.173 1.173 — — 1.173 1.173 —
Total revenue (CER) £’m 167.5 44.8 22.3 234.6 162.2 43.7 17.5 223.4
Underlying EBITDAR (CER) £’m 96.9 29.9 10.3 137.1 99.3 28.7 7.4 135.4
Foreign exchange — (0.1) — (0.1) — — — —
Underlying EBITDAR £’m 96.9 29.8 10.3 137.0 99.3 28.7 7.4 135.4
Analysis of cost base
2025
£’m
2024
£’m
Change
£’m %
Volume related costs including bad debt 5.7 5.7 — —
Store employees 24.8 23.8 1.0 4.2%
Marketing 9.6 9.1 0.5 5.5%
Business rates 18.3 16.9 1.4 8.3%
Facilities and premises insurance 15.7 15.5 0.2 1.3%
Underlying LFL cost of sales (CER) 74.1 71.0 3.1 4.4%
Non-LFL and developments 4.5 1.2 3.3 275.0%
Foreign exchange (0.2) — (0.2) —
Underlying cost of sales 78.4 72.2 6.2 8.6%
Depreciation 1.5 1.5 — —
Total cost of sales 79.9 73.7 6.2 8.4%
Cost of sales in the financial year continued to be impacted by elevated levels of inflationary cost pressures, particularly in the UK. This led to a
4.4% increase year on year in the underlying LFL cost of sales. The key drivers of this were:
• Volume related costs including bad debt: flat year on year with a normalisation of bad debt provisions in Paris;
• Store employees: a 4.2% increase year on year, driven by higher payroll costs in the UK from National Living Wage increases and rising
employer National Insurance costs. This increase was partially offset by savings in the UK where we have integrated call centre activities into
stores and lower costs in Paris as a result of dynamic staff management and lower variable pay;
• Marketing: remained stable at 4.1% of sales (FY 2024: 4.1%) reflecting our centrally controlled securing of customer enquiries in a cost-
effective manner;
• Business rates: increased 8.3% because of higher charges in the UK from reduced taper relief and inflationary uplifts; and
• Facilities and insurance: increased by only 1.3% in the year due to risk/reward sharing with insurers of the benefit of incident prevention work
largely offsetting inflationary increases in energy costs in the UK.
New stores classified as non-LFL incurred costs of £4.5 million in the year resulting in an overall increase in cost of sales of 8.4% to £79.9 million
(FY 2024: £73.7 million).
Chief Financial Officer’s review continued
Safestore Holdings plc | Annual report and financial statements 2025
18
Administrative expenses
2025
£’m
2024
£’m
Change
£’m %
Underlying administrative expenses (CER) 18.9 15.8 3.1 19.6
Exceptional costs 0.7 — 0.7 —
Share-based payments 1.1 0.3 0.8 266.7
Foreign exchange — — — —
Total administrative expenses 20.7 16.1 4.6 28.6
Administrative expenses comprise the Head Office costs of the Group. These costs include employee costs, listed company costs, professional
fees and IT costs. The key centralised operations of the Group include marketing, price-setting and IT carried out by specialist teams for
all markets.
In FY 2025 underlying administrative costs grew £3.1 million, up 19.6%. The key drivers were an increase in spend to enhance our capabilities
in AI and data management and finance, together with a return to a more normalised level of variable pay following FY 2024 when performance
targets were not met.
Underlying administrative costs exclude exceptional items of £0.7 million comprising investment in a new SAAS-based finance computer
system. The implementation of this system is expected to be completed in FY 2026 with further cost in that year. These costs have been
excluded from underlying performance due to their scale and irregular nature.
Investment properties
Cushman & Wakefield Debenham Tie Leung Limited LLP (“C&W”) valued the Group’s property portfolio as at 31 October 2025. The total value
of the Group’s investment property portfolio of open stores (“IP”) was £3,245.9 million, an increase of £193.1 million over the financial year
(31October 2024: £3,052.8 million).
In addition, investment property under construction (“IPUC”) had a value at the balance sheet date of £122.8 million and comprises ongoing
developments.
52 of our stores are leaseholds with the lease liabilities included separately on the balance sheet with a corresponding asset included in
investment property.
UK
£’m
Paris
£’m
Exp Mkt
£’m
Total IP
£’m
Value of IP as at 1 November 2024 2,144.5 627.2 281.1 3,052.8
Developments and acquisitions 49.7 36.0 44.0 129.7
Disposals — (5.2) (0.8) (6.0)
Revaluation (8.2) 4.9 26.6 23.3
Foreign exchange — 30.5 15.6 46.1
Value of IP as at 31 October 2025 2,186.0 693.4 366.5 3,245.9
IP under construction 85.1 32.8 4.9 122.8
IP and IPUC, before lease liabilities 2,271.1 726.2 371.4 3,368.7
IP lease liabilities 79.4 21.9 10.1 111.4
Total as at 31 October 2025 2,350.5 748.1 381.5 3,480.1
Value at
31 October 2024
Currency translation Additions and
acquisitions
Disposals Revaluation Value at
31 October 2025
3,500.0
3,000.0
2,500.0
2,000.0
1,500.0
1,000.0
500.0
0
47.7
3183.5 3368.7
110.1
(6.0)
33.4
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
19
STRATEGIC REPORTOVERVIEW
Property valuation: IP and IPUC, before lease liabilities
The above table summarises the movement in the valuations of the Group’s investment property portfolio including investment properties
underconstruction.
The Group’s property portfolio valuation, including investment properties under construction, increased by £185.2 million, including a gain on revaluation
of £33.4 million, £110.1 million relating to additions and store refurbishments and a favourable £47.7 million increase in the value of our investment
properties due to foreign currency movements.
The revaluation gain was driven by increases from both new and maturing stores reflecting the value created through their development and subsequent
stabilisation. The LFL portfolio valuation was stable year on year and there was a small movement in yields, which increased 13bps to 5.32% (FY 2024:
5.19%) and discount rates for future cash flows, which increased 36bps to 9.02% in the year (FY 2024: 8.66%).
Disposals in the year totalled £6.0 million from the sale of excess land and buildings.
In the year, the freehold of an existing store was acquired for £3.5 million (FY 2024: one store for £13.5 million).
The exchange rate at 31 October 2025 was €1.1375 : £1 compared to €1.1905 : £1 at 31 October 2024.
Gain on revaluation of properties
A full, independent external valuation of the store portfolio is undertaken by the Group on an annual basis for year-end reporting.
As a result of this exercise, the net gain on investment properties during the year was as follows.
2025
£’m
2024
£’m
Gross revaluation of investment properties 23.3 301.7
Gain on revaluation of investment properties under construction 10.1 (8.8)
Fair value re-measurement of lease liabilities (10.3) (9.7)
Gain on revaluation of investment properties 23.1 292.2
The revaluation of investment properties reflects the increased value of the Group’s store portfolio primarily as the new stores begin to trade
and deliver in line with our plans. The fair value re-measurement of lease liabilities reflects the reduction in investment property lease liabilities as
rent payments are made.
Joint ventures and associates
Year ended 31 October 2025
Italy
£’m
Germany
£’m
Paris
£’m
Total
£’m
Underlying share of joint venture and associate profit / (loss) 0.5 (0.6) — (0.1)
Fair value re-measurement of investment property lease liabilities — 0.2 — 0.2
Gain on revaluation of investment property 2.4 — — 2.4
Share of profit / (loss) from joint ventures and associates 2.9 (0.4) — 2.5
The underlying share of joint venture and associate profit reflects the income for the first nine months of trading (following its acquisition in
FY2025) from our Italian joint venture and the share of loss from our German associate. The result for the German associate includes the
impact of one-off professional fees related to the establishment of the business and normalisation of leases. In addition, the result for Italy
includes a £2.4 million gain (at share) on the revaluation of the investment property of the joint venture, taking the total share of profit from
jointventures and associates to £2.5 million (FY 2024: £nil).
Operating profit
Reported operating profit was £159.3 million for FY 2025, down £266.5 million, primarily due to a decrease in the investment property
revaluation gain.
A bridge from underlying EBITDAR to operating profit can be found as follows:
FY 2025
£’m
FY 2024
£’m
Underlying EBITDAR 137.0 135.4
Adjusted for
Gain on investment properties 23.1 292.2
Share of joint ventures and associates non-underlying earnings 2.5 —
Depreciation (1.5) (1.5)
Share-based payments (1.1) (0.3)
Exceptional items (0.7) —
Operating profit 159.3 425.8
Chief Financial Officer’s review continued
Safestore Holdings plc | Annual report and financial statements 2025
20
Underlying finance charge and net finance costs
The underlying finance costs represent the finance expense before interest on obligations under lease liabilities, changes in fair value of
derivatives and exceptional items. It is disclosed as management reviews and monitors the performance of the business on this basis.
The underlying finance costs increased by £5.4 million to £26.9 million (FY 2024: £21.5 million). Interest payable increased £3.1 million reflecting
the Group’s additional borrowings to fund the development programme with average drawn debt for FY 2025 increasing by £92 million year on
year. This was offset by reducing average rate of debt driven by the conversion of €150 million of Euro denominated RCF borrowings into GBP
borrowings to take advantage of the lower base rates together with the benefit of falling base rates for our floating rate debt.
A reduction in the number of ongoing developments led to a £2.5 million fall in interest capitalised on store developments to £5.3 million.
Other interest received of £0.5 million in the financial year principally reflects income on cash held, with the year-on-year increase a result
ofefficiency improvements in cash management.
2025
£’m
2024
£’m
Change
£’m %
Other interest received 0.5 0.1 0.4 400.0%
Total finance income 0.5 0.1 0.4 400.0%
Net interest payable (30.8) (27.7) (3.1) 11.2%
Capitalised interest on developments 5.3 7.8 (2.5) (32.1%)
Amortisation of debt issuance costs on loans (1.4) (1.6) 0.2 (12.5%)
Underlying finance costs (26.9) (21.5) (5.4) 25.1%
Net underlying finance charges (26.4) (21.4) (5.0) 23.4%
The movement in underlying finance costs can be summarised as follows:
Underlying finance cost to net finance costs
Net finance costs include interest payable, interest on obligations under lease liabilities, fair value movements on derivatives, exchange gains
orlosses, unwinding of discounts and exceptional finance income.
In the year a floating-rate term loan was drawn at the same time as a matching interest rate swap was put in place, taking the net interest to
afixed rate with a cash flow hedge relationship. The interest on the derivative is show together with that of the term loan.
Interest on lease liabilities was flat at £5.8 million in FY 2025 following the acquisition of the freehold on existing sites and reflects part of the
leasehold rental payment. The balance of the leasehold payment is charged through the gain or loss on investment properties in the income
statement. Overall, the leasehold cost charge increased by £0.6 million to £16.1 million in FY 2025 (FY 2024: £15.5 million).
The Group undertakes net investment hedge accounting for its Euro denominated loan notes reflecting the natural currency hedge against
Eurodenominated assets.
Net finance costs increased by £5.0 million to £32.2 million in FY 2025 (FY 2024: £27.2 million).
2025
£’m
2024
£’m
Change
£’m %
Total finance income 0.5 0.1 0.4 400.0%
Underlying finance costs (26.9) (21.5) (5.4) 25.1%
Interest on lease liabilities (5.8) (5.8) — —
Total finance costs (32.7) (27.3) (5.4) 19.8%
Net finance costs (32.2) (27.2) (5.0) 18.4%
Underlying finance costs
FY 2024
Development Capitalised interest Interest
rate change
Underlying finance costs
FY 2025
30.0
25.0
20.0
15.0
10.0
5.0
0.0
£’m
3.5
21.5 26.9
2.5
(0.6)
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
21
STRATEGIC REPORTOVERVIEW
Tax
The tax charge for the period is analysed below:
2025
£’m
2024
£’m
Underlying current tax charge 4.4 4.3
Current tax charge 4.4 4.3
Tax on investment properties movement 14.4 21.7
Adjustment in respect of prior years (2.8) (1.3)
Losses in respect of current year — 1.6
Deferred tax charge 11.6 22.0
Net tax charge 16.0 26.3
The net tax charge in the period was £16.0 million (FY 2024: £26.3 million).
The Group is a REIT with no tax charge on profits from its UK property rental business, so the current tax charge relates to Paris and Expansion
Markets. The underlying current tax charge for the period amounted to £4.4 million (FY 2024: £4.3 million).
Profit after tax
The profit after tax for the period was £111.1 million, compared with £372.3 million in FY 2024, a decrease of £261.2 million which arose
principally due to the decreased gain on investment properties, which is explained above.
Earnings per share
Basic EPS was 50.9 pence (FY 2024: 170.5 pence) and diluted EPS was 50.6 pence (FY 2024: 170.1 pence). As explained in note 2 to the financial
statements, management considers Adjusted Diluted EPRA EPS to be more representative of the underlying EPS performance of the business.
Adjusted Diluted EPRA EPS is based on the European Public Real Estate Association (“EPRA”)’s definition of earnings and is defined as profit
orloss for the period after tax excluding corporate transaction costs, changes in fair value of derivatives, exceptional and non-operating items,
gain/loss on the fair value of investment properties and the associated tax impacts. The Company then makes further adjustments for the
impactof share-based payment charges and deferred tax charges. This adjusted earnings figure is divided by the diluted number of shares.
Theshare-based payment 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 in 2017.
Management considers that the real cost to existing shareholders from such schemes is the dilution that they will experience on the granting of
shares. Therefore, earnings have been adjusted for the share-based payment charge and the number of shares used in the EPS calculation has
also been adjusted for the dilutive effect of the LTIP schemes.
Adjusted Diluted EPRA EPS for the year was 40.3 pence (FY 2024: 42.3 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:
2025 2024
Earnings
£’m
Shares
million
Pence
per share
Earnings
£’m
Shares
million
Pence
per share
Basic EPS 111.1 218.4 50.9 372.3 218.3 170.5
Adjustments:
Gain on revaluation of investment properties (23.1) — (10.6) (292.2) — (133.9)
Fair value re-measurement of investment
properties lease liabilities
(10.3) — (4.7) (9.7) — (4.5)
Exceptional items 0.7 — 0.3 — — —
Non-underlying joint venture and
associateearnings
(2.6) — (1.2) — — —
Tax on adjustments 11.6 — 5.4 22.0 — 10.1
Adjusted Basic EPRA EPS 87.4 218.4 40.1 92.4 218.3 42.2
Share-based payments charge 1.1 — 0.5 0.3 — 0.1
Dilutive shares — 1.3 (0.3) — 0.9 —
Adjusted Diluted EPRA EPS 88.5 219.7 40.3 92.7 219.2 42.3
The Group has exposure to the movement in the Euro/GBP exchange rate. Based on the FY 2025 results, a 10 cent increase to the average
exchange rate of 1.178 would cause an impact of £0.4 million to Adjusted EPRA Earnings (FY 2024: £1.7 million).
Chief Financial Officer’s review continued
Safestore Holdings plc | Annual report and financial statements 2025
22
Dividends per share
Dividends paid in 2025 (comprising the FY 2024 full year and FY 2025 interim dividends) were £66.6 million (30.50 pence per share) (FY 2024:
£65.9 million (30.20 pence per share)). A final dividend in respect of the year ended 31 October 2025 of 20.60 pence (FY 2024: 20.40 pence)
per share, amounting to a total final dividend of £45.0 million (FY 2024: £44.6 million), is to be proposed at the AGM on 18 March 2026. The
ex-dividend date will be 12 March 2026 and the record date will be 13 March 2026 with an intended payment date of 14 April 2026. The final
dividend has not been included as a liability at 31 October 2025.
The Property Income Distribution (“PID”) element of the final dividend is 10.30 pence (FY 2024: 15.30 pence), making the PID payable for the
year 12.83 pence (FY 2024: 17.80 pence) per share.
Gearing and capital structure
The Group finances its activities through a combination of equity and borrowings. As at 31 October 2025, the Group’s borrowings comprise
aRevolving Credit Facility “RCF” and a term loan together with US Private Placement notes (“USPPs”).
The drawn debt position as at 31 October 2025 is analysed as follows:
Facility
£/€’m
Drawn
£’m
Total rate
%
USPP 2026 – October €70.0 £61.5 1.26%
USPP 2027 €74.1 £65.1 2.00%
USPP 2028 €29.0 £25.5 0.93%
USPP 2029 €105.0 £92.3 2.45%
USPP 2032 €70.0 £61.5 4.03%
USPP 2033 €29.0 £25.5 1.42%
USPP total €377.1 £331.4 2.24%
Term Loan Facility 2030
1, 2
€77.5 £68.2 3.45%
Total fixed rate EUR debt €454.6 £399.6 2.44%
% of total debt 41.5%
USPP 2026 – October £35.0 £35.0 2.59%
USPP 2028 £20.0 £20.0 1.96%
USPP 2029 £50.5 £50.5 2.92%
USPP 2029 £30.0 £30.0 2.69%
USPP 2031 £80.0 £80.0 2.39%
Total fixed rate GBP debt £215.5 £215.5 2.55%
% of total debt 22.4%
Total fixed rate debt £615.1 2.48%
% of total debt 63.9%
RCF – GBP
2
£172.0 £172.0 5.58%
RCF – EUR
2
€200.0 £175.8 3.57%
RCF non-utilisation GBP £152.2 — 0.42%
Total variable rate debt £500.0 £347.8 4.75%
% of total debt 36.1%
Total debt £962.9 3.29%
Capitalised finance costs — (£4.7) —
Total borrowings £1,115.0 £958.2 3.46%
1 Floating-rate loan swapped to fixed-rate with a hedging interest rate swap.
2 Includes 5 bps saving for achieving ESG targets.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
23
STRATEGIC REPORTOVERVIEW
Gearing and capital structure continued
The debt repayment schedule can be summarised as follows (£’m):
Chief Financial Officer’s review continued
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033
USPP Term loan RCF
600.0
500.0
400.0
300.0
200.0
100.0
0.0
The committed facility in the RCF totals £500 million with an expiry in November 2028. As at 31 October 2025, £347.8 million of the £500.0
million RCF was drawn, split £172.0 million and €200.0 million (£175.8 million equivalent).
The Group pays interest on the RCF at an initial margin of 125bps plus SONIA or EURIBOR. The margin payable is linked to certain ESG
targets, which have been met, enabling a reduction in the margin by 5bps to 120bps. In addition, the Group pays a non-utilisation fee of 0.42%
on the undrawn facility balance.
USPPs are denominated in Euros and Sterling and incur fixed rates of interest.
The Euro denominated USPPs total €377.1 million over six maturities from 2026 to 2033 with a weighted average interest cost of 2.24% and
include a new €70.0 million, 4.03% USPP maturing in 2032 issued during the year. The Sterling denominated USPPs total £215.5 million with
maturities between 2026 and 2031 and a weighted average interest rate of 2.55%.
In addition, during the year the Group arranged a five-year floating rate term loan totalling €77.5 million. This loan has been hedged with an
interest rate swap with the resulting fixed interest cost of 3.45%.
As at 31 October 2025, 63.9% of the Group’s drawn debt attracts fixed rates of interest. Overall, the Group has an effective interest rate on its
borrowings of 3.46% as at 31 October 2025, compared with 3.96% at the previous year end.
The Euro denominated borrowings provide a natural hedge against the Group’s investment in the Paris and Expansion Markets businesses.
Euro denominated debt makes up 59.8% of total Group borrowings.
As at 31 October 2025, the weighted average remaining term for the Group’s committed borrowing facilities is 3.5 years with the next
maturities, both at 29 October 2026, comprising €70.0 million and £35.0 million USPPs. The weighted average interest rate on these USPPs is
1.74%. As current costs of borrowing are higher than this due to increased base rates, as these and subsequent USPPs are refinanced, there
may be higher finance costs for the Group in 2027 and beyond.
Net debt (including lease liabilities) stood at £1,058.6 million at 31 October 2025, an increase of £159.1 million during the year, principally due to
increased funding required for store acquisitions and developments. Net debt (excluding lease liabilities) was £947.2 million.
Management measures leverage 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 (excluding finance leases), including investment properties under construction. As at 31 October 2025,
the Group LTV ratio was 28.1% compared with 25.1% at 31 October 2024.
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 to achieve our medium term strategic objectives.
Borrowings under the existing loan facilities are subject to certain financial covenants. The RCF, term loan and USPPs share interest cover
and LTV covenants. The interest cover requirement is a minimum EBITDA interest of 2.4:1. Interest cover for FY 2025 was 4.0x (FY 2024: 4.3x),
calculated on the basis required under our financial covenants.
The LTV covenant is 60% for the Group. As at 31 October 2025, there is significant headroom in the Group LTV covenant calculations.
96.5
65.1
45.5
347.8
172.8
68.2
80.0
61.5
25.5
Safestore Holdings plc | Annual report and financial statements 2025
24
Loan to value
The following table sets out the drivers of the LTV, which comfortably sits below the Board’s targeted 30%-40% level at 28.1% in FY 2025 (FY
2024: 25.1%):
2025
£’m
2024
£’m
Current borrowings 96.5 —
Non-current borrowings 861.7 824.2
Cash and cash equivalents (11.0) (25.3)
Net debt excluding lease liabilities 947.2 798.9
Investment properties and IPUC 3,368.7 3,183.5
Group loan to value 28.1% 25.1%
Interest cover ratio
The following table sets out the components of the ICR measure, which was 4.0x in FY 2025 (FY 2024: 4.3x):
2025
£’m
2024
£’m
Underlying EBITDAR 137.0 135.4
Leasehold costs (16.1) (15.5)
Share-based payments national insurance charge 0.9 (0.6)
EBITDA (excluding share-based payments National Insurance charge) 121.8 119.3
Finance income 0.5 0.1
Finance expense (26.9) (21.6)
Capitalised interest (5.3) (7.8)
Amortisation of capitalised finance costs 1.4 1.6
Net interest (30.3) (27.7)
ICR 4.0x 4.3x
Cash flow
The table below sets out the cash flow of the business in FY 2025 and FY 2024.
2025
£’m
2024
£’m
Underlying EBITDAR 137.0 135.4
Working capital/exceptionals/other 1.5 (2.3)
Cash generated from operations 138.5 133.1
Interest payments (29.2) (25.3)
Leasehold cost payments (16.1) (15.5)
Tax payments (3.6) (6.1)
Cash flow before investing activities 89.6 86.2
Investment in joint ventures and associates (38.9) (2.5)
Capex – investment properties (106.6) (118.3)
Capex – property, plant and equipment (2.6) (1.8)
Net proceeds from disposal of investment properties 6.0 —
Adjusted net cash flow after investing activities (52.5) (36.4)
Issue of share capital — 0.7
Dividends paid (66.6) (65.9)
Group cash inflow/outflow (119.1) (101.6)
Net drawdown of borrowings 106.5 111.6
Movement in net debt 159.1 89.2
Opening net debt 899.5 810.3
Closing net debt 1,058.6 899.5
Cash generated from operations increased by £5.4 million in the year as a result of improving EBITDA year on year.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
25
STRATEGIC REPORTOVERVIEW
Cash flow continued
Interest payments increased compared to the prior year as a result of the increased interest charge associated with the additional borrowings
to fund the capital expenditure on new stores. With small increases in leasehold payments, cash flow before investing activities was £3.4 million
favourable year on year at £89.6 million (FY 2024: £86.2 million).
In the year, we invested £109.2 million (FY 2024: £120.1 million) on capital expenditure, principally on the development of new stores. An additional
£38.9 million was invested in joint ventures and associates where we entered the Italian market during the year and contributed to the funding
of further expansion of the Italian and German portfolios.
Dividends paid to shareholders were £66.6 million in FY 2025 (FY 2024: £65.9 million), and the Group drew a net £106.5 million of borrowings
tofinance capital expenditure.
The table below reconciles cash flow before investing activities in the table above to net cash inflow from operating activities in the consolidated
cash flow statement.
2025
£’m
2024
£’m
Cash flow before investing activities 89.6 86.2
Add back: Finance lease principal payments 10.3 9.7
Net cash inflow from operating activities 99.9 95.9
Cash flow before investing activities is shown after including the impact of finance lease principal payments as these are included in
leasehold costs.
Simon Clinton
Chief Financial Officer
14 January 2026
Chief Financial Officer’s review continued
Safestore Holdings plc | Annual report and financial statements 2025
26
Austria
Belgium
Czechia
Denmark
Finland
France
Germany
Ireland
Italy
Lithuania
Netherlands
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland
United Kingdom
3,000.0
2,500.0
2,000.0
1,500.0
1,000.0
500.0
0.0
Determining the exact size of the market in a country is difficult as self-
storage is not a registered or recorded market sector and few authorities
maintain a definitive list of self-storage stores. The two leading annual
reports for data in the UK and Europe are the Self Storage Association
UK annual industry report and the FEDESSA European self-storage
industry report in Europe. Improved analysis each year often identifies
sites that were not in previous reports and accounts for some of the
growth in store and space in addition to new space.
Market penetration for self-storage in Europe –
lowbut growing
The self-storage markets in the UK and Europe remain relatively
immature when compared to geographies such as the USA and
Australia. Industry dynamics remain positive with low penetration levels
and growing awareness of the product. In the UK the SSA annual survey
(May 2025) confirmed that self-storage capacity stands at 0.94 sq ft
per head of population and in Europe the most recent data (FEDESSA’s
2023 report) showed that capacity per capita was significantly below
the UK. This is illustrated in the chart below and compares with closer
to 7 sq ft per inhabitant in the USA and 2 sq ft in Australia.
Market dynamics – growing supply drives customer
awareness and demand
Safestore operates in geographic markets with relatively low
consumer awareness of the self-storage product. The range lies
between 9% of the population in the UK having never heard of self-
storage to as high as 54% in Italy. Awareness has been growing and
is a key driver of customer demand and industry growth. This growth
is expected to continue as store numbers increase and effective
digital marketing and intelligent pricing systems reach new customers.
Supply
In 2025, data published by FEDESSA estimated that there were
10,571 self storage sites across Europe, up 7.3% on 2024 with space
increasing 8.3%. In the same period, the total space growth in the
geographic markets where Safestore operates was estimated to
be 6.8%. The space in square meters and number of stores across
Europe is depicted in the chart below published by FEDESSA in 2024.
The UK, France, Germany and Spain are the largest markets with
68% of the total European self-storage space.
Source: FEDESSA European self-storage industry report 2025 page 21.
In the UK, the most recent SSA industry report 2025 states that self-
storage supply remains relatively fragmented with SSA estimates of
2,915 self-storage facilities including around 1,135 container-based
operations, and that Safestore was the industry leader by number
of stores, with 139 wholly owned sites. UK total space growth was
7.2% including containers with a 7.7% growth in store numbers.
Inaggregate, the top five leading operators account for around 42%
of the UK store portfolio. The remaining 58% of the market (a total of
c. 2,350 self-storage outlets including container- based operations)
is independently owned in small chains or single units. In London
wehave more stores inside the M25 area than any other operator.
Our French business, UPP, is mainly located in the core wealthier
and more densely populated regions of inner Paris and the first belt
(central arrondissements), whereas our two main competitors have a
greater presence in the outskirts and second belt of Paris.
Country
Stores Space
6,000,000.0
5,000,000.0
4,000,000.0
3,000,000.0
2,000,000.0
1,000,000.0
0.0
UK
Netherlands
Spain
France
Germany
Belgium
Italy
Australia
USA
0 1 2 3 4
sq ft per capita
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
27
STRATEGIC REPORTOVERVIEW
Our markets
Market dynamics – growing supply drives customer
awareness and demand continued
Supply continued
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.
Our Spanish business currently operates in Barcelona and Madrid
with one store in Pamplona. 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).
In Belgium our presence is focused on Brussels and the significant
urban conurbations of Liege, Charleroi and Nivelles.
Customer awareness and usage
Consumer awareness of self-storage is increasing, providing an
opportunity for future industry growth. The SSA UK survey indicates
that approximately half of consumers have low awareness about the
service offered by self-storage operators or had not heard of self-
storage at all. Over the last ten years awareness of the presence of a
local self-storage store has risen from circa 40% to 50%. Therefore,
the opportunity to grow awareness, combined with limited new
industry supply, makes for an attractive industry backdrop.
Across Europe an average of 4% of the population currently use
self-storage and 10% have used it in the past.
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. This also supports our focus on our well-trained store
staff who play such an important role in the purchasing journey of
customers, assisting with space and ancillary service requirements.
Brand awareness in self-storage is growing, but with 51% of
respondents in the 2025 SSA survey able to name at least one
brand and higher rates of penetration per capita, there is still further
awareness to go to help support demand growth. A strong online
presence remains key to driving customer engagement with the SSA
UK survey showing that 68% of respondents (FY 2024: 76%) search
for self-storage online while only 32% of respondents (FY 2024: 30%)
cite knowledge of a physical store as the reason for enquiry.
Across Europe, we observe similar trends in the FEDESSA European
Self Storage Report 2025.
Drivers of demand and usage
Self storage is a needs-based product, which is why effective
marketing and growing awareness of the product is so important in
driving industry growth.
There are numerous drivers of self-storage demand, with most
domestic and business customers needing temporary or permanent
storage for a host of different reasons at any point in the economic
cycle. For domestic customers these include life events such as
births, marriages, bereavements, divorces, house moves, renovations
and moves between rental properties. For business customers usage
may be driven by inventory growth, seasonality, flexibility or a big,
short-term project that doesn’t warrant new premises. This results
in a market that while not immune from fluctuations in economic
conditions is fairly resilient throughout the cycle. The UK SSA 2025
report depicts the current reasons for using self-storage as shown
in the chart below and notes that the drivers do change, with the
redecoration of homes moving from 13% in 2014 to 24.4% in 2025.
Customer awareness and usage
Country
I am currently using self storage I have used self storage in the last 12 months but am no longer using it
I have used self storage previously but not in the last 12 months I have considered using self storage but I have not used it yet
I have not considered or used self storage Don’t know / can’t recall
Source: FEDESSA European Self Storage Industry Report 2025
Austria
Denmark
France
Germany
Ireland
Italy
Netherlands
Poland
Portugal
Spain
Sweden
UK
Europe
100.0
75.0
50.0
25.0
0.0
Safestore Holdings plc | Annual report and financial statements 2025
28
Our markets continued
Our business model, strategy and how we create value
Safestore’s strategy
Safestore’s strategy is to leverage its well-located property assets,
expertise, infrastructure and balance sheet to increase earnings per
share and deliver a progressive dividend policy. We do this by:
Optimising the trading performance of the existing portfolio:
• Leveraging our scalable pan – European digital platform to capture
and convert enquiries into new lets.
• Our leading digital marketing platform has driven a 34% growth
in enquiries growth for the Group over the last five years. We
carefully manage our overall cost per enquiry and cost per new
let for maximum efficiency.
• Online enquiries this year made up 90% of all our enquiries in
the UK (FY 2024: 89%), and 85% in France (FY 2024: 86%).
The majority of our online enquiries now originate from a
mobile device.
• Our multi-channel sales strategy utilises online automated
channels, interaction through our store sales teams or our
specialist call centre and National Accounts teams, providing
each type of customer with the most tailored and easy way to
buy self-storage at Safestore.
• Maximising store revenue (REVPAF) using dynamic local pricing
and over 27 years of data to achieve the optimal balance of
occupancy and rates.
• Our central pricing team is responsible for the management of
our dynamic pricing policy, which is set weekly at the granular
level of store/unit size, together with the implementation of
promotional offers and the identification of additional ancillary
revenue opportunities. Whilst prices are managed centrally, the
store sales teams can offer discretionary discounts reflecting
local competition.
Our property assets
and location
We identify, buy and develop sites to build our portfolio of self-storage stores in densely populated
areas across Europe, e.g. London, Paris and major metropolitan areas. We have a flexible property
approach: freehold and leasehold, new builds, conversions.
Our customers
Channels /
customer access
Our people
Our revenue streams
Our financing /
capital structure
Our cost structure
We serve >105,000 customers by meeting the needs of two main segments:
• Domestic customers (individuals needing storage for personal belongings).
• Business customers, from SMEs to larger “National Accounts” (e.g. space for stock, filing,
archives, distribution, moving).
Marketing and new business enquiries are mostly online. We invest in our industry-leading platform
to generate SEO enquiries, bookings and contracts via the Safestore website. We balance this with
dedicated store teams which address individual customer needs for space and ancillary service
requirements. Customers can also access call centres and National Accounts teams.
Safestore employs over 850 people with around 90% being store based. We invest in and incentivise
our colleagues to drive high levels of customer engagement and satisfaction. See more on page 50
(sustainability report).
• Rental income from storage units (main revenue driver).
• Ancillary services and add-ons e.g. Store Protect, packing materials.
Safestore uses a mixture of debt and operating cash flow to fund developments. We have a rigorous
investment policy for all new stores and acquisitions including a 10% yield on cost return at maturity.
Our unsecured, multi-currency Revolving Credit Facility (“RCF”) gives financial flexibility, and we
operate comfortably within our covenants of 60% LTV and minimum 2.4x interest cover.
Cost of sales
• Fixed costs associated with running stores: staffing (average of three FTE per store), maintenance,
security, utilities.
• Property costs: owning (freehold) and leasing (leasehold) property and costs of developing new
stores or optimising existing ones (maintenance, conversions).
• Marketing costs (digital marketing, online presence, search engines).
Store costs are relatively fixed (e.g. store upkeep, colleagues, property costs), and as occupancy
increases, incremental revenue flows through at higher margins and stronger cash conversion.
Administrative costs
• Central functions e.g. Board, finance, technology, yield management.
What Safestore does
Safestore is a self-storage company operating in the UK and several European markets. It provides secure, flexible
and accessible storage units to domestic and business customers.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
29
STRATEGIC REPORTOVERVIEW
Safestore’s strategy continued
Optimising the trading performance of the existing
portfolio: continued
• Repurposing selected UK space from business to domestic
customers to optimise our mix and REVPAF potential.
• Investing in our people and incentivising store teams to
drive high levels of customer satisfaction, rental revenue and
ancillary services.
• Filling unlet space to leverage fixed costs and the fully invested
store estate.
Maintaining a strong and flexible capital structure:
• Maximising annual operating cash flows to fund investment and
pay dividends.
• Maintaining comfortable headroom against our covenants of 60%
LTV and minimum interest cover of 2.4x.
• Strategically managing our cost of debt.
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:
• Buying sites with a strict investment discipline to achieve 10% yield
on cost at maturity, leveraging local property expertise to secure
opportunities at a fair price.
• Consolidating our leading position in the UK and Paris, and building
a European footprint.
• Actively looking at joint venture and partnership opportunities in
existing and new markets.
We pursue our strategy whilst maintaining a strong focus on
Environmental, Social and Governance (“ESG”) priorities.
Read more in the CEO review on pages 8 to 15 and the sustainability
report on pages 46 to 73 to see how we delivered against our
strategy in FY 2025.
Delivering value for shareholders
Since Safestore was founded in 1998 the business has grown organically
and through acquisitions developing profitable and sustainable
spaces that today serve 105,000 customers and employs 850 people
annually. We are a leading operator of 211 high quality and secure
self-storage facilities primarily in the UK and Paris with a growing
presence across Europe. Over 95% of our portfolio is located in major
metropolitan areas where demand for space is structurally high and
new supply is constrained. As a result, our portfolio is hard to replicate
and benefits from high barriers to entry for new site development.
We believe our strong track record speaks for itself. Over the last ten
years Safestore has used the benefits of the REIT structure to return
£448 million to shareholders through dividends, achieving a total
shareholder return in that time of 198% and NAV growth of 377%.
Looking ahead, the Board is confident that the market dynamics for
self-storage in the UK and Europe remain positive with our portfolio
well positioned to deliver growth. We will continue to leverage our
marketing and operational expertise to drive REVPAF and earnings in
and beyond our large UK and Paris markets. Growth will be driven by:
• EBITDA growth from LFL stores:
• Mature LFL stores (>five years old), which represent 79% of MLA,
through rate improvements, benefits from UK partitioning and
cost inflation reducing.
• Contribution from fully invested stabilising LFL stores (between
twoand five years old), which currently represent 10% of MLA
as theycontinue up the maturity curve, increase occupancy and
build profitability.
• Increasing contribution from our non-LFL stores (1.0 million sq ft
or 11% of MLA and < two years old) and our current pipeline of
1.1 million sq ft projected to open over the next few years. These
stores will contribute increasingly to earnings as they fill occupancy
and cover their fixed costs. They are expected to generate an
incremental £35-40 million of EBITDA upon stabilisation.
• Our joint ventures in Germany and Italy present an opportunity
to expand from a small footprint of stores with a low initial capital
outlay and management fee income. We see the potential for other
opportunities with this model to drive longer term portfolio growth.
The self-storage INDUSTRY
has excellent long term growth
characteristics
Safestore’s PORTFOLIO is
hard to replicate and provides
diverse, multi-year growth
opportunities
Safestore’s pan-European
PLATFORM drives revenue
maximisation and scale
advantages
Safestore’s PEOPLE, led
by a highly experienced
management team, are central
to creating value
Safestore’s CASH FLOW AND
EARNINGS are at an inflection
point following an accelerated
investment cycle
How Safestore wins
Our business has five key strengths (see how Safestore creates value page 5, CEO review on pages 8 to 15
and our markets on pages 27 and 28 for more detail) which gives us confidence that we can continue to deliver
compounding shareholder returns through the cycle.
Our business model, strategy and how we create value continued
Safestore Holdings plc | Annual report and financial statements 2025
30
Geographies
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 offers a sizeable and attractive potential customer
base with over 30,000 per square mile in the densest boroughs.
The population of the Paris urban area is over 10 million inhabitants,
with a density of over 50,000 per square mile in the City of Paris and
first belt (or central arrondissements).
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. Nevertheless,
our deep property expertise and local market knowledge allow us to
take new attractive site opportunities when they arise, demonstrated
by our pipeline to FY 2027 and beyond which contains a further
eleven store developments in London and Paris combined.
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. All these new markets, particularly
Madrid and Barcelona, are wealthy, high density conurbations with
very high barriers to entry.
With more stores inside London’s M25 than any other operator and a
strong position in central Paris, we have leading positions in the two
most important and demographically favourable markets in Europe
operating 139 stores in the UK, 78 of which are in London and the
South East, and 34 stores in Paris.
In the UK, Safestore is the leading operator by number of wholly
owned stores, (2025 SSA Survey). Our national store footprint
represents a competitive advantage. 62% of our UK 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 51 stores within the M25, offering
us access to highly dense populations and strong customer bases.
In addition, we have 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.
In France, we have a leading position in the heart of the affluent
City of Paris market with nine stores branded as Une Pièce en Plus
(“UPP”) (‘A spare room’). Over half 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.
Overall, Expansion Markets now comprise 38 stores. In Spain, the
Group has fifteen stores open in Barcelona and Madrid and one
open in Pamplona in the Basque Country/Navarra region which has
clusters of population benefiting from an above average economic
dynamic. The Group has fifteen stores open in the Netherlands and
seven in Belgium.
Leasehold stores
The Group’s portfolio 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.
Although our property valuation for leaseholds is 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. From time to time, we will purchase the freehold on
leasehold properties, when these become available at appropriate
prices. 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, our leasehold sites 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. Taking this context
into account, the valuer values the French leaseholds based on an
indefinite property tenure, similar to freeholds but at a significantly
higher exit cap rate.
Our portfolio by geography
Store portfolio by region
London and
South East
Rest of
UK
UK
Total Paris
Expansion
Markets
Group
Total
Number of stores 78 61 139 34 38 211
Let Sq Ft (million sq ft) 2.36 2.16 4.52 1.19 0.96 6.67
Maximum lettable area (million sq ft) 3.18 2.80 5.98 1.66 1.64 9.28
Average let sq ft per store (k sq ft) 30 35 33 35 25 32
Average store MLA (k sq ft) 38 44 41 43 37 40
Closing occupancy (%) 79.1% 80.8% 79.9% 81.2% 67.3% 78.1%
Average rate (£ per sq ft) 36.90 23.94 30.68 35.49 20.63 30.20
Total revenue (£’m) 104.1 63.4 167.5 44.6 22.2 234.3
Average revenue per store (£’m) 1.33 1.04 1.21 1.31 0.58 1.11
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
31
STRATEGIC REPORTOVERVIEW
Our property portfolio
Portfolio by customer type
Our customer base is resilient and diverse and consists of around
105,000 domestic, business and National Accounts customers
across the Group.
At 37% of square feet occupied (41% in FY 2024), our customer
base in the UK is more heavily weighted to business customers than
the rest of the Group due to historical property configurations. As
such we have been accelerating the conversion of larger units (over
250 sq ft) into smaller ones to serve a wider range of customers.
Through this partitioning programme, we anticipate significantly
reducing the current c. 1.0 million sq ft of larger units so that the UK
ratio ofdomestic to business customers comes closer to the 70/30
splitseen in the rest of the Group.
Business and domestic customers UK Paris
Expansion
Markets
Domestic customers
Numbers (% of total) 79% 82% 90%
Square feet occupied (% of total) 63% 66% 83%
Average length of stay (months) 17.3 22.9 21.6
Business customers
Numbers (% of total) 21% 18% 10%
Square feet occupied (% of total) 37% 34% 17%
Average length of stay (months) 26.0 26.4 30.4
Portfolio developments
Our approach to store development and acquisitions in the UK,
Paris,Expansion Markets and our joint ventures, with Carlyle in
Germany and Nuveen in Italy, continues to be pragmatic, flexible
andfocused on the return on capital. We have a proven track
recordof double-digit yield on cost store returns at maturity.
Our experienced and skilled property teams in all geographies
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 criteria
focus our development selections on locations that will deliver a
10%+ YoC on stabilisation where we believe strong supply and
demand dynamics exist, using our long-standing experience and
local knowledge of customers. Our preference is to acquire sites
that are capable of being fully operational within 18–24 months
fromcompletion.
All property projects require planning permission. 70% are projects
with planning granted and 30% are still subject to planning. Typically,
we aim to structure our development opportunities to minimise
planning risk and working capital by making completion on contracts
for sites to be subject to planning.
Since 2022, the Group has opened 34 new stores with nine in the UK,
five in Paris and twenty in Expansion Markets. In total this period has
added 1,699,400 sq ft of MLA, inclusive of extensions, as set out in
the table below:
UK Paris Exp Mkt Group
New stores/
extensions MLA sq ft
New stores/
extensions MLA sq ft
New stores/
extensions MLA sq ft
New stores/
extensions MLA sq ft
2022 1 / 5 135,500 — — 2 / 0 52,500 3 / 5 188,000
2023 3 / 2 167,500 — — 7 / 0 280,300 10 / 2 447,800
2024 3 / 1 93,000 1 / 1 62,400 4 / 0 230,600 8 / 2 386,000
2025 2 / 0 101,600 4 / 1 226,300 7 / 0 349,700 13 / 1 677,600
Total 9 / 8 497,600 5 / 2 288,700 20 / 0 913,100 34 / 10 1,699,400
In the same period, we completed the revenue-enhancing extensions
of ten stores, adding a net 111,600 sq ft of fully invested space to the
estate. All of these stores are performing in line with or ahead of their
business plans whilst adding space to the portfolio that leverages the
existing cost base of our stores.
In FY 2024 the Group opened two fully automated, unmanned,
satellite self-storage centres in Eastleigh and London Paddington
Park West, having opened its first in Christchurch in FY 2023.
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. Following the success, additional unmanned
satellite stores are currently under various stages of assessment
anddevelopment.
Whilst looking for development sites, we also aim to take advantage of
acquisition opportunities that will enhance our overall Group portfolio.
Examples are the FY 2025 EasyBox acquisition in Italy through a joint
venture, and FY 2024 acquisition of Chelsea Self Storage in the UK.
Safestore Holdings plc | Annual report and financial statements 2025
32
Our property portfolio continued
Property development in FY 2025
In the year we opened two stores in the UK, four in Paris and one extension, four in Spain, two in the Netherlands and one in Belgium. New stores
opened were added 662,200 sq ft of new space with an additional 15,400 sq ft of new space from the extension. This added 677,600 sq ft of
space in total taking Group MLA at 31 October 2025 to 9.3 million sq ft.
FY 2025 stores opened FH/LH MLA Type
London – Lea Bridge FH 80.9 New Build
London – Walton FH 20.7 Conversion
Paris – East 1 (Noisy-le-Grand) FH 60.0 Conversion
Paris – West 3 (Mantes Buchelay) FH 58.0 New Build
Paris – North West 1 (Taverny) FH 54.0 Conversion
Paris – La Défense FH 38.9 New Build
Pamplona FH 64.5 Conversion
Madrid – North East (Barajas) FH 57.2 Conversion
Madrid – South West (Carabanchel) FH 45.4 Conversion
Barcelona – Central 2 (Manso) LH 19.8 Conversion
Randstad – Amsterdam FH 65.4 New Build
Randstad – Utrecht FH 50.0 Conversion
Brussels – Zaventem FH 47.4 New Build
Extensions
Paris – Pyrénées LH 15.4 Extension
Total openings and extensions in 2025 677.6
Property pipeline
Openings of new stores and extensions
We have a total pipeline of 20 developments opening in FY 2026 and beyond which is expected to add a total of 1.1 million sq ft, representing
11.8% of the portfolio MLA as at 31 October 2025. All sites in our development pipeline are new freehold sites. This includes the two new stores
below which had already opened in the first two months of the new financial year.
FY 2026 opened since year end FH/LH MLA Development type
London – Wembley FH 55.3 New Build
Paris – Colombes FH 65.2 New Build
Total opened in 2026 120.5
In addition to the 120,500 sq ft of MLA added in November and December, there is a pipeline of six stores with 296,100 sq ft of MLA projected
to open during the remainder of FY 2026. This brings a total additional MLA projected to be delivered in FY 2026 to 416,600 sq ft. Of the eight
stores to open in FY 2026, five will be in the UK, two in Paris and one in Spain.
Remaining FY 2026 openings FH/LH MLA Type Status *
London – Woodford FH 68.7 New Build C, UC
London – Watford FH 57.5 New Build C, UC
Hemel Hempstead FH 51.3 New Build C, UC
Shoreham FH 47.1 New Build C, UC
Paris – West 4 (Orgeval) FH 53.0 New Build C, UC
Madrid – Perseo FH 18.5 Conversion C, UC
Total remaining openings in 2026 296.1
* C = completed, CE = contracts exchanged, STP = subject to planning, PG = planning granted, UC = under construction.
Our ongoing pipeline of new store developments beyond FY 2026 comprises twelve projects identified which will deliver an additional
678,300sq ft of new space. Of the twelve developments nine will be in the UK, two in Paris and one in Spain.
FY 2027 and beyond openings FH/LH MLA Type Status *
London – Old Kent Road FH 75.6 New Build C, STP
London – Belvedere FH 53.6 New Build C, STP
London – Bermondsey FH 50.0 New Build C, STP
London – Kingston FH 55.0 New Build C, PG
Nottingham – Abbeyfield Road FH 55.0 Conversion CE, PG
Woking FH 55.0 New Build CE, STP
Norwich FH 52.7 New Build C, STP
Swindon FH 52.0 New Build CE, PG
Welwyn Garden City FH 51.0 New Build CE, PG
Paris – Bry-sur-Marne FH 58.1 New Build C, UC
Paris – West 1 (Conflans) FH 56.0 New Build C, PG
Barcelona – Hospitalet FH 64.3 New Build CE, STP
Total FY 2027 and beyond openings 678.3
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
33
STRATEGIC REPORTOVERVIEW
Our purpose: to add stakeholder value by developing profitable and sustainable spaces that allow individuals, businesses, and local
communities to thrive.
At the heart of our governance approach is a firm commitment to Section 172 of the Companies Act 2006, which requires the Board to act
in a way that promotes the long term success of the Company for the benefit of all stakeholders. We recognise that building and maintaining
effective dialogue with our stakeholders is fundamental to the success of the business. This ongoing engagement ensures that the Board’s
decisions are well informed and balanced, and that due consideration is given to the interests of our people, shareholders, customers, and
wider communities.
Our structured approach to stakeholder engagement involves close collaboration between the Board and management. While the Board
delegates management with certain day-to-day engagement activities, this approach is intended to enhance responsiveness and operational
efficiency, with the Board continuing to oversee and remain accountable for stakeholder engagement.
Management provides regular and comprehensive updates to the Board on stakeholder interactions, enabling Directors to remain fully informed
and responsive to emerging issues and opportunities.
Directors, including the Chairman and the Chair of the Remuneration Committee, also take an active role in engaging directly with shareholders,
seeking their views and feedback on key matters. This proactive outreach is central to our transparent and inclusive culture, and helps ensure
that stakeholder voices are not only heard but meaningfully influence our strategic direction.
Key stakeholders How we engage What they tell us matters to them Outcomes and highlights from engagement
Our people We foster an open and collaborative
atmosphere that prioritises our
colleagues’ wellbeing and interests.
Team members are invited to voice
their thoughts and contribute ideas
across multiple channels, such as
the ‘Make the Difference’ forum – our
dedicated staff advisory group since
2018. Directors receive a Health,
Safety and Wellbeing Report at each
Board meeting.
• Training and development
opportunities
• Reward and recognition initiatives
• Health and wellbeing and a safe
working environment
• Company performance and strategy
• Use of AI initiatives to improve
efficiency
• Diversity and inclusion
We remain committed to supporting
our colleagues, as evidenced by
our achievement of Investors in
People (“IIP”) Platinum status on two
occasions. This year, we have further
expanded the implementation of our
Quentic analytics system throughout
the UK and Europe, enhancing our
reporting capabilities and enabling
both management and the Board to
monitor trends and pinpoint areas for
improvement.
Our
customers
We communicate with customers
regularly through multiple channels,
including face-to-face interactions in
store, and online methods such as
our website, email, and social media.
We collect customer feedback
through these channels. Training,
tools, coaching, and evaluation are
provided for employees involved
in customer service to support
consistent communication and
interaction.
• Ensuring the safe and secure storage
of customers’ belongings
• Delivering exceptional
customer service
• Maintaining reliable channels of
communication
• Providing flexibility to accommodate
diverse client needs
• Understanding customer needs and
using our expertise to identify the
right solution to meet those needs
Positive ratings on all relevant customer
service rating platforms, including 4.5+
in all markets for Google Reviews.
In May 2025, we closed our UK-based
centralised Customer Support Centre,
replaced by enhanced digital and local
service channels to better match our
customers’ habits and needs. This
ensures continued accessibility and
responsiveness from local store teams
with local knowledge of the area.
Our shareholders
and investors
Safestore acknowledges the
significance of maintaining
productive relationships with
investors and shareholders,
recognising their contributions to the
Company’s long term success. All
Directors, including the Chairman
and Chair of the Remuneration
Committee remain accessible to
shareholders and regularly engage
with major institutional investors
to discuss governance, strategic
direction, and other key issues. In
addition, the Chief Executive Officer
and Chief Financial Officer maintain
open communication with all
shareholders, offering further insight
into the Company’s strategy and
operational performance.
• Implementation of a remuneration
structure aligned with established
practices to support organisational
objectives
• Prudent investment strategy that
drives improving financial returns and
share price performance
• Communication of strategy and
transparency regarding Company
performance
• Leadership and reputation
for adherence to business
conduct standards
• Progress toward Environmental,
Social and Governance
(“ESG”) targets
Shareholder engagement continues
to play an important role in informing
the Board’s decision making, with
feedback carefully considered as part
of the overall process. In shaping a
prudent investment strategy, the Board
weighed a range of perspectives,
ensuring that shareholder insights
were taken into account alongside
other factors.
The Remuneration Committee Chair’s
engagement with investors on the 2026
Remuneration Policy proposals, which
will be put to members at the 2026
Annual General Meeting, enabled the
Committee to reflect on shareholder
views as it refined its approach.
Similarly, the Chairman’s meetings
with shareholders throughout the year
provided the Board with a broader
understanding of investor sentiment
regarding the Company’s performance.
Safestore Holdings plc | Annual report and financial statements 2025
34
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 Company maintains strong
relationships with business
partners, including joint venture
partners, landlords at leasehold
sites, contractors, and suppliers
of goods and services, including
banks and lenders. Management
conducts regular meetings with joint
venture partners, holds quarterly
meetings with the key construction
management partner, and organises
supplier forums twice a year to
facilitate feedback exchange.
• Fostering robust professional
relationships
• Upholding sustainable
business practices
• Achieving operational excellence
• Ensuring transparent
communication, equitable
engagement, and timely payments
• Adhering to corporate governance
standards, including Know Your
Customer (‘KYC’) and Anti-Money
Laundering (‘AML’) protocols
Following the joint venture announced
in December with Nuveen as part
of the acquisition of EasyBox,
management has been working with
Nuveen to establish an effective
partnership while navigating the
requirements of the Italian jurisdiction
and addressing regulatory and
operational considerations. The
Company is also continuing its
expansion efforts in the German market
with Carlyle and is evaluating additional
partnership opportunities. The Board
notes the significance of maintaining
positive relationships with all joint
venture partners and aims to build on
the Company’s previous experience
with joint ventures.
In addition, we remain committed to
collaborating with our suppliers and
partners on essential ESG priorities,
such as responsible sourcing, reducing
our carbon footprint, and effective
waste management.
Our communities Location is essential to the success
of Safestore stores, and the
Company is dedicated to making
a positive impact within local
communities.
We aim to provide sustainable, long
term value to the areas in which
we operate and contribute to the
prosperity of the local economy.
Our Sustainable Development Goals
and overall sustainability strategy
are designed with a strong focus on
community engagement and benefit.
• Limiting any negative effects and
local disruption resulting from our
business activities
• Providing local employment
opportunities, both through direct
hiring and through our suppliers
and customers
• Participating in local community
projects and supporting charities
We provide fundraising support to
both established and emerging local
charity partners. For instance, in its
13th consecutive year, Safestore UK
collaborated with the WrapUp London
campaign to assist with the annual coat
drive, offering support to individuals
in need during the winter of 2024/25.
Additionally, in December, Head Office
employees organised a collection for a
local foodbank.
We also continue to offer subsidised
storage space to charitable
organisations and proactively pursue
practical and innovative solutions
through collaboration with various
charitable causes.
Our environment At Safestore, we actively engage with
our customers, colleagues and wider
stakeholders to ensure our approach
to environmental sustainability
reflects what matters most to them.
Through ongoing conversations,
feedback and collaborative initiatives,
we seek to understand their
priorities, aspirations and concerns
regarding our environmental impact,
and we work together to create
a safe, pleasant and sustainable
environment for everyone connected
to our business.
• Transparency in measuring and
reporting our environmental footprint
is important
• Tangible action to reduce energy
use, emissions and waste
throughout our operations is valued
• Clear communication and
opportunities for involvement
in sustainability initiatives are
appreciated
• Continual review and improvement
of our practices to ensure long term
positive impact on the environment
and local communities is expected
• Overall Group market-based
emissions reduced by 16% YoY;
emissions intensity reduced by 22%.
Main drivers:
• First full year of all Group
stores powered by certified
renewable electricity (zero Scope
2 market-based emissions
forpurchasedelectricity)
• Further five UK stores have gas
use removed, reducing overall
usage year on year by nearly 19%
• UK company vehicle fleet fully
transitioned to plug-in hybrids
• 100% diversion from landfill for
UK operational waste; 98% of UK
construction project waste diverted
• Improved Google review volumes
and sentiment – ratings in all markets
exceeding 4.5 threshold target
• Gold rating in EPRA sustainability
BPR awards
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
35
STRATEGIC REPORTOVERVIEW
s172 statement
The Board states that the Directors have, to the best of their understanding and in good faith, acted with the intention of promoting the success
of the Company for the benefit of all its members, while considering the matters set out in s172(1)(a) to (f) (“s172 Matters”). In accordance with
s414CZA of the Companies Act 2006, the following outlines principal decisions taken during the year and describes how the Directors had
regard for the s172 Matters in the decision making process. Principal decisions and consideration of the matters outlined in s172(1)(a) to (f) are
detailed below.
Principal decision Background Regard for s172 Matters
Development of 2026
Remuneration Policy
In the years leading up to the
formulation of the 2026 Remuneration
Policy, the Company undertook
significant engagement with its
shareholders to ensure that its
executive pay arrangements aligned
to shareholders’ expectations. The
approval and implementation of the
2023 Remuneration Policy were
undertaken following consultation
with leading institutional investors.
Their feedback was invaluable
in shaping the Remuneration
Committee’s approach.
Following this engagement, the
Remuneration Committee undertook
steps to gradually transition towards
a more standardised remuneration
framework, in alignment with upper
quartile FTSE 250 peers. This
commitment has been reflected in
the strategy to align executive pay
packages with market benchmarks,
ensuring salary, pension contributions,
and incentive arrangements are
appropriate for the Company’s scale
and the roles in question.
The development of the 2026 Remuneration Policy has been a measured
and transparent process, rooted in the Company’s commitment to
best practice and stakeholder engagement. Throughout the year, the
Board and Remuneration Committee have benefited significantly from
the guidance of external advisers, whose expertise has ensured that
our approach remains aligned with evolving market standards and
shareholder expectations. Their input has helped refine the framework,
providing clarity and rigour to the policy’s structure and its implementation.
Shareholder engagement has continued to be a cornerstone of our
remuneration strategy, building on the constructive dialogue established
during the implementation of the 2023 Remuneration Policy in recent
years. Feedback from leading institutional investors was instrumental
in shaping the Committee’s thinking, guiding the transition towards
a more standardised approach. This ongoing consultation has not
only strengthened shareholder confidence but has also ensured that
performance targets embedded within executive pay arrangements
remain appropriately stretching, supporting the Company’s long
term success.
Further engagement during the year has shaped a remuneration
framework that reflects market benchmarks and the interests of
shareholders. The Committee has taken deliberate steps to harmonise
executive pay with upper quartile FTSE 250 peers, balancing competitive
salary and incentive structures with robust performance criteria. This
ensures that reward packages drive accountability and foster a culture
ofhigh achievement.
Importantly, the Company recognises the critical contribution of its
broader workforce to overall performance. As has been the case for many
years, comprehensive LTIP and bonus schemes have been extended
across the organisation, enabling colleagues to share in the Company’s
success and reinforcing a strong alignment between individual effort
and collective outcomes. In January 2025, the Remuneration Committee
exercised its discretion to award partial bonuses to colleagues (excluding
the CEO and CFO), in recognition of their dedication and commitment,
despite the Company not meeting its financial targets. This decision
underscores the Board’s appreciation of the resilience and hard work
demonstrated by colleagues during a challenging period, and reflects
ourongoing commitment to reward and motivate our people.
Safestore Holdings plc | Annual report and financial statements 2025
36
Engaging with our stakeholders and our Section 172(1) statement continued
Principal decision Background Regard for s172 Matters
Financing activity During the year, Safestore Group
undertook a number of minor
refinancing projects to optimise its
capital structure and take advantage
of improving market conditions. The
Company issued a new US Private
Placement “USPP” note and secured
a sustainability-linked term loan, using
the proceeds to refinance a portion
of the drawn Revolving Credit Facility.
This new debt provided liquidity for the
Group whilst fixing interest rates and
adding term to maturity. The new term
loan was structured with sustainability-
linked features, with rates contingent
on meeting specific ‘Green KPIs’,
thereby demonstrating Safestore’s
commitment to environmental
responsibility.
In making decisions surrounding the refinancing, the Board gave careful
consideration to a variety of topics. In considering financing activity, the
Board gave careful consideration to a number of matters. The Board
places primary focus on ensuring robust liquidity for the Group to enable it
to both withstand market fluctuations and to maintain operational flexibility
for the deployment of capital. In addition, the Board considers the costs
of financing and the balance of currencies and fixed/floating rate debt to
ensure risk is appropriately managed. The Board also placed importance
on the sustainability-linked features of the new term loan which reflects
their commitment to responsible business practices.
Safeguarding the Company’s strong financial position was a key
priority, ensuring that Safestore remains well placed to pursue growth
opportunities and deliver long term value. The Board ensured that
constructive relationships with banking partners were fostered throughout
the refinancing process, with open dialogue and negotiation to secure
competitive terms. These collaborative efforts have reinforced the
Company’s reputation as a reliable and forward-thinking counterparty.
In all deliberations, the Board acted in the best interests of shareholders
as a whole, balancing the need for financial prudence with opportunities
for strategic advancement. By considering the long term impact of its
decisions, the Board has laid the foundations for continued success,
sustainable growth, and the ongoing delivery of value to all stakeholders.
Italian joint venture In December 2024, the Company
embarked on a significant strategic
geographical expansion in Italy by
entering into a joint venture with
Nuveen to acquire EasyBox. This
move was driven by a desire to
broaden the Company’s portfolio and
capitalise on opportunities in attractive
new geographies, specifically within
key economic centres across Italy.
The €175 million joint acquisition
comprised ten fully operational
stores that immediately boosted
the Company’s footprint in the
region. The decision to partner with
Nuveen was underpinned by shared
values and a mutual commitment
to operational excellence, providing
a strong foundation for growth and
collaboration in a new market.
Alongside the ten existing stores, the
acquisition also included two turn-key
developments which opened in 2025,
further reinforcing the Company’s
commitment to long term investment
and expansion in Italy.
Management has played a pivotal role in the successful integration and
ongoing collaboration with our joint venture partners as we established
our presence in the Italian market. From the outset, there has been a
conscious effort to build a strong, mutually beneficial relationship with
Nuveen, rooted in common guiding principles and unified dedication
to achieving high standards in our operations. Regular strategic
meetings and open channels of communication have fostered trust and
transparency, allowing both parties to swiftly align on key priorities and
operational approaches. The collaborative approach adopted has been
instrumental in navigating the complexities of a new jurisdiction and
capitalising on opportunities for growth.
Alongside our joint venture partners, management has proactively
engaged a broad network of stakeholders, including banks, advisers
– such as tax and legal experts – employee works councils, and local
authorities. Expanding into the Italian market, with its intricate regulatory
and administrative landscape, demanded a comprehensive approach.
By collaborating with local advisers and regulatory bodies, we are able to
strive towards full compliance with local requirements while also tailoring
our operational processes to suit the unique market environment. Ongoing
dialogue with our new colleagues has facilitated a smooth transition,
ensuring their concerns are addressed and that they feel integrated into
the wider Safestore family.
The integration process has been planned to facilitate engagement
with new colleagues and to co-ordinate activities with current business
partners and suppliers. We have invested time in understanding local
business practices and customer expectations, which has been essential
in delivering a consistent experience across all locations. By migrating
customers and operational processes onto the Safestore platform, we
have maintained continuity and upheld the high standards for which our
Group is known. These efforts have laid the groundwork for sustained
success, operational consistency, and a strong reputation in the Italian
self-storage market.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
37
STRATEGIC REPORTOVERVIEW
The principal risks and uncertainties described could have potentially the most significant effect on Safestore’s strategic objectives. These risks
and emerging risks (risks where the extent and implications are not yet fully understood or quantified and are expected to increase over time)
have been evaluated and management strategies assessed against our risk appetite.
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:
Risk Current mitigation activities Developments since FY 2024
Strategic risks
The Group develops business
plans based on a wide range of
variables. Incorrect assumptions
about the economic environment
or the self-storage market or
changes in the needs or 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 Group’s brands
through acquisitions and development projects.
• The portfolio is geographically diversified with
performance monitoring covering 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.
The Group’s strategy is regularly reviewed through
theannual planning and budgeting process, and
regular reforecasts are prepared during the year.
The acquisition of new stores, new storeopenings
and the EasyBox joint venture business have been
fully integrated in the Group’s store portfolio.
The current macroeconomic conditions, with elevated
inflation and interest rates and with ongoing cost
pressures on businesses and consumers, have
continued to impact growth.
The level of risk is considered unchanged from
the31October 2024 assessment.
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.
• The Group’s RCF runs to 30 November 2028.
The US Private Placement Notes have staggered
maturities between 2026 and 2033.
In the past few years, there have been significant
opportunities to invest in new stores, both in the UK
and throughout Europe.
During the year the Group issued a new €70million
USPP and a €77.5 million term loan, demonstrating
continued accesstofinancing and providing
ampleliquidity.
Ongoing planning for refinancing of next debt
maturities in October 2026 and in 2027.
Continued monitoring of loan-to-value ratio (“LTV”)
and interest cover ratio with both remaining broadly
constant during the year.
Therefore, this risk remains broadly unchanged from
the 31 October 2024 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.
• The Group enters into interest rate hedging to limit
exposure to floating rate risks where appropriate.
• Foreign currency denominated assets are financed by
borrowings in the same currency where appropriate.
Euro denominated borrowings continue to provide
an effective, natural currency hedge against the
net assets and income of our Euro denominated
businesses with the proportion of Euro denominated
borrowings increasing to 59.8% in the year.
At year end 63.9% of the Group’s debt is at fixed
rates or has been hedged, reducing the impact of
volatility ofinterest rate fluctuations as we move
into2026.
Therefore, this risk remains broadly unchanged from
the 31 October 2024 assessment.
Safestore Holdings plc | Annual report and financial statements 2025
38
Principal risks and uncertainties
Risk Current mitigation activities Developments since FY 2024
Property investment and
development risk
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.
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.
• Large portfolio of potential new sites, prioritised
based on detailed research into areas most likely
tobe successful.
• Thorough due diligence is conducted and detailed
analysis is undertaken prior to Board approval for
property investment and development.
• Where appropriate, the Group executes targeted
acquisitions and disposals.
• Strong operational knowledge and experience
inintegrating new sites.
• The Group’s overall exposure to development
projects 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.
• Development activity on a site-by-site basis
withlimited scale of each project reducing risk
through diversification of capital deployment.
Projects are not pursued when they fail to meet our
rigorous investment criteria, and post-investment
reviews continue to 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 capacity within our financing arrangements.
We continue to pursue investment and development
opportunities, and consider our recent track record
tohave been successful.
This risk is broadly unchanged from the 31 October
2024 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.
• Significant headroom of borrowings for LTV
ismaintained and continuously monitored.
The valuation of the Group’s portfolio has continued
to grow during the year, reflecting a stable valuation
of our like-for-like portfolio together with gains
arising from additions to our portfolio through new
developments.
However, economic pressures which impact on
consumer and business spending may impact the
self-storage market. Therefore, the key assumptions
that underpin the investment property valuation are
inherently subject to volatility.
There has been no significant change to this risk
sincethe 31 October 2024 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 customer feedback facilities
closelyreviewed.
With the economic outlook remaining uncertain, this
may lead to pressure on occupancy in the next year.
Growth in our store portfolio, including to new
geographies, diversifies the potential impact of
underperformance of an individual store but does
notfully mitigate the risk.
There has been no significant change to this risk since
the 31 October 2024 assessment.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
39
STRATEGIC REPORTOVERVIEW
Risk Current mitigation activities Developments since FY 2024
Operational
Risks from running a large
property portfolio including
fire, health and safety, and
extreme weather. A major
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 and Risk 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.
• Online colleague training modules.
• Fire Brigade primary authority relationship in place.
Implementation of a Group-wide health and safety
platform completed to monitor all incidents and to
enable proactive prevention. Continuing focus from
the RiskCommittee, with particular attention to
specificissues.
The level of risk is considered similar to the
31October 2024 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.
Failure to comply with the REIT
legislation could expose the
Group to potential tax penalties
or loss of its REIT status.
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.
• Legal and professional advice.
• Online colleague and new recruit training modules.
• Internal monitoring procedures are in place
to ensurethat the appropriate REIT rules and
legislationare complied with and this is formally
reported to the Board.
• Where a store is at risk of compulsory purchase,
contingency plans are developed.
All regulatory compliance risks are monitored during
the year.
The Group’s tax obligations are regularly reviewed,
ensuring key tax risks are in line with the Group’s
taxstrategy.
HMRC triennial review confirmed the Group’s low
riskrating for a further three years.
The level of risk is considered similar to the
31October 2024 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 digital platform.
• 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.
The level of risk is considered similar to the
31October 2024 assessment.
Safestore Holdings plc | Annual report and financial statements 2025
40
Principal risks and uncertainties continued
Risk Current mitigation activities Developments since FY 2024
IT security
Cyber-attacks and data
security breaches are
becoming more prominent
and sophisticated. 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 by the Group
Audit Committee.
• We minimise the retention of customer and colleague
data in accordance with GDPR best practice.
• IT policies and procedures, including regular user
awareness campaigns, are under constant review
and benchmarked against industry best practice.
• IT systems are backed up locally, air-gapped to tape,
and held offsite.
Ongoing penetration testing together with automated
vulnerability testing to assess system security.
Programme to address any issues found and ensure
all systems are patched up to date.
We added an external Managed Defence Response
solution for 24/7 analysis of our network to identify
and control any malicious activity.
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 2024 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 services 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 Services function always engages with
customers to resolve any issues or complaints.
Our sustainability report on pages 46 to 73 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 2024 assessment.
Geographical expansion
The Group has invested
in expanding the overseas
operations of the business
through both subsidiaries and
joint ventures over recent years.
Returns and asset values
from such investments may
be impacted by local market,
customer, regulatory or
fiscal factors.
• 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.
• Centralised operational processes for marketing,
pricing and site management enabling Group
expertise to be applied.
In 2024, the Italian self-storage EasyBox joint venture
business has been fully integrated in the Group’s
storeportfolio.
The level of risk is considered similar to the
31October 2024 assessment.
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 voluntary 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
workforce remuneration.
• In 2024, Safestore received the Investors in People
Platinum accreditation for the second time. This
demonstrates that our colleagues are engaged
insupporting Safestore to deliver sustainable
business performance.
The level of risk is considered similar to the
31October 2024 assessment.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
41
STRATEGIC REPORTOVERVIEW
Risk Current mitigation activities Developments since FY 2024
Climate change
related risk
The Group could be exposed
to physical and transition risks
as a result of climate change.
Climate change physical risks
could affect the Group’s stores
and may result in higher repair
and maintenance costs and
insurance costs.
Failing to transition to a low
carbon economy may cause an
increase in taxation, a 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
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 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’ or equivalent 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.
Further, our Sustainability Committee, with
representation from across the business, assesses
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 evolve as we
continue on the climate-related disclosures journey.
The level of risk is considered similar to the
31October 2024 assessment.
Emerging risks
At Safestore, our approach to identifying emerging risks is both rigorous and forward looking. We actively monitor the evolving business
landscape, tracking technological changes, regulatory developments, shifting market conditions, and macroeconomic trends that could
influence our operations. This process is supported by cross-departmental collaboration, horizon scanning initiatives, and scenario planning,
enabling us to pinpoint risks and opportunities that may not yet be fully apparent. Company-wide engagement ensures that early signals and
potential threats are surfaced and escalated to our Risk and Audit Committees for consideration.
Assessing and managing these emerging risks are inherently complex, particularly when their probability or potential impact is difficult to
predict or quantify. We tackle this issue by blending expert judgement with quantitative tools, leveraging our team’s knowledge and comparing
our performance to industry standards. An example of this is how we utilise our health and safety tool, Quentic, to gather data, including
‘near misses’, and the knowledge of our team to help us deal with emerging health and safety risks to our customers, employees and the
general public.
Risks are prioritised based on their potential to affect our health and safety, financial stability, reputation, and strategic objectives, even in the
absence of concrete data. Our risk management framework is intentionally flexible, allowing for regular reassessment and adaptation as new
information arises and circumstances shift.
Recognising that emerging risks can arise and evolve rapidly, we have established robust procedures for continuous monitoring. These
measures include frequent updates to our risk registers, ongoing training for colleagues at all levels, and the integration of real-time data feeds
and analytics tools. Maintaining this awareness enables the Company to respond promptly by formulating new mitigation strategies, reallocating
resources as necessary, and leveraging emerging opportunities. By embedding these practices into the culture of our Company, we aim to
ensure resilience and the sustainable delivery of value to our stakeholders.
Safestore Holdings plc | Annual report and financial statements 2025
42
Principal risks and uncertainties continued
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 the our
environment section on pages 57 to 66 of the sustainability report.
The Company’s approach to environmental matters is overseen
bythe Company’s sustainability leadership team.
Employees
• Code of conduct
• Equality, diversity and inclusion policy
• Bullying and harassment policy
• Disciplinary and conflict resolution
policies
• Health and safety manual
• ‘People Principles’ document
• Anti bribery and corruption
The pivotal role of our colleagues is reported within the our people
section of the sustainability report on pages 50 to 53 and within
the Chief Executive’s statement on pages 8 to 15.
The Company’s internal policies are accessible to all colleagues via
the intranet. Our ‘People Principles’, which outline how we create
a positive and engaging workplace at Safestore, are published on
the corporate website. In addition, our anti-bribery and corruption
statement is publicly available on the Company’s website.
The Company’s approach to pay fairness throughout the Group is
set out on pages 98 to 99 of the Directors’ remuneration report.
Human rights
• Code of conduct
• Equality, diversity and inclusion policy
• Data privacy policies
• Anti-slavery and human trafficking
statement
• Whistleblowing policy
• IT policy
• ‘People Principles’ document
• Anti bribery and corruption policy
andstatement
The Company’s internal policies are accessible to all colleagues
via the intranet. Our ‘People Principles’, which outline how
we create a positive and engaging workplace at Safestore,
are published on the corporate website. In addition, our
whistleblowing policy, data privacy policy, anti-bribery and
corruption and anti-slavery and human trafficking statements are
publicly available 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 the
OurCommunity section on page 56 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 bribery and corruption policy and
statement
• Gifts, tips and hospitality policy
• ‘People Principles’ document
The Company’s internal policies are accessible to all colleagues via
the intranet. Our ‘People Principles’, which outline how we create
a positive and engaging workplace at Safestore, are published on
the corporate website. In addition, our anti-bribery and corruption
statement is publicly available on the Company’s website.
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 38 to 42 of the
strategic report)
The Company’s approach to risk management and internal control
is set out in the governance report on page 82.
Description of the
business model
The Company’s market and business model are reported
on pages 29 and 30 in the Chief Executive’s review of the
strategicreport.
Non-financial key
performance indicators
Non-financial KPIs are summarised in the Chief Executive’s
statement on pages 8 to 15; within the trading performance
section of the strategic report on pages 1 and 2; as well as in the
sustainability report on page49.
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.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
43
STRATEGIC REPORTOVERVIEW
Non-financial and sustainability information statement
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 the Group can
continue to operate and meet its liabilities, taking into account its
current position and principal risks. In assessing viability, the Board
considered a number of key factors, including our strategy (see page
29 and 30), our business model (see pages 29 and 30), our risk
appetite and our principal risks and uncertainties (see pages 38 to 42
of the strategic report).
The Board is required to assess the Group’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, two plausible
downside 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 set out on pages 38 to 42.
These scenarios are differentiated by the impact of lower demand
levels, lower average rate growth and what level of cost savings is
reasonable, which can be summarised as follows:
• Base scenario – three-year plan as approved by the Board.
• Downside scenario – which assumes a flat LFL revenue growth
alongside reduction in certain Head Office costs which are a direct
correlation to and would naturally flow from a lower revenue.
• 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.
As at 31 October 2025 the Group has US Private Placement Notes
(“USPPs”) of €377.1 million (FY 2024: €307.1 million) which have
maturities between 2026 and 2033 with fixed-rate coupons of between
0.93% and 4.03% and £215.5 million (FY 2024: £215.5 million) which
have maturities between 2026 and 2031 with fixed-rate coupons of
between 1.96% and 2.92%. The weighted average cost of interest
on the overall USPPs at 31 October 2025 was 2.36% per annum.
During the financial year the Group entered into a term loan with its
relationship banks for €77.5 million attracting a margin over SONIA/
EURIBOR of 1.25%. At the same the Group entered into an interest
SWAP, fixing the overall borrowing of the term loan at a rate of 3.4%.
In addition the Group has arranged a Revolving Credit Facility (“RCF”)
with its relationship banks. The RCF attracts a margin over SONIA/
EURIBOR of between 1.25% and 2.50%, by reference to the Group’s
performance against its interest cover covenant. The Group has
USPPs totalling £96.5 million maturing on 30 October 2026. The
Group has consistently demonstrated its ability to raise new debt,
including through the arrangement of £147.5 million of new financing
in the form of USPPs and a Term loan in FY 2024 and FY 2025.
Management continues to discuss options for refinancing upcoming
maturities with lenders and advisers with multiple sources of new debt
being available. The Board therefore is confident that the assumption
within the Going Concern assessment that the maturing USPPs will
be refinanced.
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.
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.
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
2025, 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 gave consideration
to the USPPs expiring during the going concern period, and given
their ability to raise funding, demonstrated over the last 12 months,
have confidence that these will be replaced when the time arises.
The Directors considered the most recent three-year financial plans,
in particular the projections for the period to 30 April 2027, approved
by the Board. In the context of the current environment, plausible
downside 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 which are
set out on pages 38 to 42. These scenarios are differentiated by the
impact of lower demand levels, lower average rate growth and what
level of cost savings is reasonable. 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.
The impact of the downside 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 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.
Viability statement
Safestore Holdings plc | Annual report and financial statements 2025
44
Compliance with Climate-related Financial Disclosures
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 6.6.6R(8) 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. The Group currently discloses 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 powered by a clean energy grid.
The Group is compliant with the reporting requirements of the Companies Act 2006 as amended by the Companies (Strategic Report)
(Climate-related Financial Disclosure) Regulations 2022.
TCFD recommendation
Included in
FY 2025 disclosures? Reference/comment
Governance
a) Describe the Board’s oversight of climate-related risks and opportunities Yes Strategic report page 58
Corporate governance report
page 58
b) Describe management’s role in assessing and managing climate-related risks
andopportunities
Yes Strategic report page 58
Strategy
a) Describe the climate-related risks and opportunities the organisation has identified
over the short, medium, and long term
Yes Strategic report pages 58
to 62
b) Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning
Yes Strategic report pages 58
to 62
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 58
to 62
Risk management
a) Describe the organisation’s processes for identifying and assessing climate-related risks Yes Strategic report page 58
b) Describe the organisation’s processes for managing climate-related risks Yes Strategic report pages 42
and 58
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 42
and 58
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 63
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 67 to 73
c) Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets
Yes Strategic report pages 49,
57, 59, 60, 63, 65 and
68 to 73
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
45
STRATEGIC REPORTOVERVIEW
Our commitment
to sustainability
We combine strong
business performance
with a dedication to
sustainability, ensuring
our spaces foster
community growth
and business success,
while contributing to a
sustainable future.”
Frederic Vecchioli
Chief Executive Officer
Being a sustainable organisation remains fundamental to Safestore’s
business. We are committed to operating responsibly, valuing our
customers, engaging our colleagues, supporting our communities,
and mitigating our environmental impact. We are dedicated to
ensuring that our actions reflect our long term commitment to
creating shared value for our stakeholders, while also protecting
theenvironment for future generations.
Our sustainability focus
As the UK’s largest self-storage provider, with operations across
Western Europe, we recognise our responsibility to lead by example.
We are committed to making continuous, incremental changes
that benefit our colleagues, suppliers, customers, and the broader
community. Our strategy revolves around four key pillars that guide
our actions:
• Our people: 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 focus on offering simple,
practical wellbeing initiatives, to support our colleagues to lead
healthier and happier lives. This includes health benefits, career
development opportunities, and the promotion of work-life balance.
• Our customers: we focus on delivering a seamless and
sustainable customer experience by offering digital tools to
enhance convenience, as well as flexible storage solutions that
support both residential and business customers in their own
sustainability efforts.
• Our community: we remain committed to supporting the
communities in which we operate. Through partnerships with
localcharities, educational institutions, and community groups,
weprovide not just storage solutions, but tangible benefits that
foster local economic growth and societal wellbeing.
• Our environment: reducing our environmental impact is a core
priority. We continue to improve energy efficiency across our sites,
invest in renewable energy, and adhere to sustainable construction
practices. By driving progress towards our net zero goals, we are
playing our part in tackling climate change.
Safestore Holdings plc | Annual report and financial statements 2025
46
Sustainability
As part of our ongoing commitment to improvement, we are
proudtoshare several key achievements and targets met in
thepastyear, including:
• Powered by renewable energy: the electricity supply to all of
ourGroup stores comes from renewable sources.
• Expansion of diversity initiatives: following our first Diversity
Pay Gap Report in 2022, we have greater strategic focus on
equality, diversity, and inclusion resulting in exceptional Investors
inPeople survey results on this topic.
• Enhanced waste management: we have increased our
commitment to reducing waste, achieving a 97.9% diversion of
construction waste from landfill, and introducing new recycling
programmes in all UK stores.
• Progress on operational net zero goals: we are on track with
our net zero targets, having reduced operational GHG emissions
by 16% in 2025. We remain committed to further reductions as
weprogress towards our 2028 goals.
Our sustainability strategy
Our sustainability strategy is anchored around the pillars of our
people, customers, community, and environment which provide us
with a structured yet flexible framework. This allows us to address key
material issues identified through engagement with our stakeholders,
including investors, colleagues, customers, and suppliers.
We periodically review our sustainability strategy to ensure alignment
with our corporate goals and the UN Sustainable Development
Goals (for more information on our SDG alignment, please visit the
Sustainability section of our Group website), focusing on areas that
matter most to our business and stakeholders. We measure our
progress using targeted medium term targets set in our 2019 KPIs
and align our reporting with the latest European Public Real Estate
Association (“EPRA”) and Global Reporting Initiative (“GRI”) standards.
Our achievements are reflected in recognitions such as the Gold
rating in the 2025 EPRA Sustainability BPR Awards and an ‘A’ rating
from the Global Real Estate Sustainability Benchmark (“GRESB”)
for its 2025 Public Disclosures assessment. Additionally, MSCI has
awarded Safestore its second-highest rating of ‘AA’ for ESG.
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/.
4.5+
customer satisfaction rating in all markets
Gold
rating in the 2025 EPRA Sustainability
BPRawards
97.9%
of construction waste diverted away from
landfill in the UK
22%
reduction in market-based operational
GHG intensity
Sustainability achievements
and highlights for 2025
Delivering our sustainability strategy
Safestore’s approach to sustainability is embedded across every
level of the organisation, from our Board and executive leadership
to day-to-day operations. This year, our key areas of focus
have included:
• Engaging our workforce to deliver exceptional service and
foster a great workplace.
• Strengthening ties with local charities and communities.
• Partnering with suppliers that share our commitment to
sustainability.
• Minimising our environmental footprint through responsible
resource management.
• Upholding the standards of the Self Storage Association.
Gold rating in the 2025 EPRA Sustainability
BPR Awards
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
47
STRATEGIC REPORTOVERVIEW
Read more on page 78
To add stakeholder value by developing profitable and sustainable spaces
that allow individuals, businesses, and local communities to thrive
Sustainability governance
Sustainability at Safestore is overseen by our cross-functional Sustainability Group, co-chaired by two Executive Team members. This ensures
that sustainability is embedded in our business functions and in how we operate. The Group reports on its activities directly to the Board.
Sustainability Group
Plc Board
Marketing Director
Executive sponsor
Group Head of HR
Executive sponsor
Property/construction
Functional lead
Operations/Retail Services
Functional lead
Marketing
Functional lead
Risk
Functional lead
Facilities management
Functional lead
For more detail see page 49
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
Our environment
Protect the planet from our
activities and manage risks to our
business from climate change
How we ensure sustainability
Our purpose
We love
customers
We lead
the way
We have
great people
We dare to
be different
We get it
Our values, created by our store teams, are the foundation of everything we do
Our values
Safestore Holdings plc | Annual report and financial statements 2025
48
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 2025 targets set in 2019,
and our near-term focus now shifts to the 2028 targets. The actual performance outcomes for each KPI are detailed in the following sections.
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%
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 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
97.9% 100%
% of UK operations
waste to landfill
0% 0%
Reduce our
emissions
% of renewables in
owned store electricity
(Group)
100% 100%
Abs. operational GHG
emissions (market based,
tonnes CO
2
e)
1,014 820
Operational GHG
intensity (market based,
kg CO
2
e/sq m)
0.93 0.75
% of new stores
achieving EPC B or better
(excl. France)
100% 100%
Key:
Target achieved Target nearly achieved Target not met
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
49
STRATEGIC REPORTOVERVIEW
Our people
Target
Engagement score –
Maintain score > 80%
At Safestore, our people are central to our success. As of the end
of the reporting period, we employed 858 colleagues across two
key areas: our store colleagues, who play a pivotal role in engaging
customers and executing our operational strategy, and our central
support functions, which include HR, finance, marketing, IT, and
operations, based primarily at our Head Office.
The majority of our colleagues are store based, reflecting the
operational nature of our business model and the critical role of
localexecution. Our colleagues are not only the face of Safestore,
but also key drivers of commercial performance. Their ability to
consistently deliver high standards directly influences customer
satisfaction, occupancy, and revenue growth.
To ensure strong alignment between individual contribution and
business outcomes, we’ve embedded a performance-linked incentive
framework, reinforcing our strategic priorities and fostering a culture
ofownership and accountability.
Our approach to people management is a strategic differentiator.
Weknow our colleagues as individuals and foster a culture of respect,
inclusion, and trust, enabling colleagues to bring their full, unique
selves to work. We maintain low colleague-to-manager ratios to ensure
leaders have the time to inspire and motivate, coach in the moment,
and support both personal and professional growth.
This leadership approach is formalised through bi-annual goal
setting and performance reviews supported by a coaching culture
that encourages two-way feedback. It also includes programmes for
onboarding and leadership development, helping colleagues build
confidence to continually evolve.
In 2024 we were proud to achieve the Investors in People (“IIP”)
Platinum accreditation – the highest level of recognition – for the
second time. This accolade, which is valid for three years, reflects
ourcommitment to creating a high performing, inclusive workplace
where colleagues feel valued and empowered.
Our employment practices also support our broader ESG commitments,
particularly SDG 3 (Good Health and Wellbeing), SDG 8 (Decent Work
and Economic Growth), and SDG 10 (Reduced Inequalities). Through
our Wellbeing Strategy, our Equality, Diversity, and Inclusion Strategy,
and our People Principles, we continue to build a safe, secure, and
supportive working environment that enables all colleagues to thrive.
Performance
2024/25
84%
Colleague engagement and wellbeing
We set a target to achieve a leadership engagement score above
80%, and in our 2024 IIP survey, we were delighted to exceed this
with an average score of 84% across leadership-related questions.
At Safestore, colleague engagement begins with creating a
culturewhere people feel valued, supported, and connected.
Our leaders play a vital role in fostering this environment, forming
genuine connections with their teams and encouraging open,
honestcommunication.
Our ‘Make the Difference’ people forum, launched in 2018, is a formal
workforce advisory panel, that enables frequent opportunities for
us to hear and respond to our colleagues. Our network of ‘People
Champions’ across the Group collates questions and feedback from
colleagues across all countries and puts them to members of the
Executive Committee.
Our people forum provides a listening culture, ensuring high levels of
consultation, innovation, and ideas continue to 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.
Wellbeing remains central to our engagement strategy. We offer
practical support to help colleagues lead healthier lives, including
our popular Medicash health cash plan, which provides access to
GP appointments, counselling, and 24/7 emotional wellbeing tools.
Additional support is available through our Employee Assistance
Programme (“EAP”), partnerships with Mind and Mental Health UK,
andprivate counselling via our occupational health provider.
Learning and development
At Safestore, we invest in colleague development to strengthen
customer relationships and drive commercial performance, which is
critical to the Group’s strategic progress. In 2025, we delivered over
35,000 hours of training across the Group, c. 40 hours of training
per colleague, with an average score of 82% across the ‘Building
Capability’ IIP indicator.
Our programmes focus on practical skill building, leadership
development, and cross-functional collaboration. In-store colleagues
benefit from targeted initiatives such as our Sales Consultant
and Store Manager Development programmes, which enhance
confidence, capability, and consistency in customer engagement.
The Store Manager programme, now in its eighth year, is funded by
the Apprenticeship Levy and includes a Level 3 Management and
Leadership qualification.
We maintain a coaching culture supported by low colleague-to-
manager ratios, enabling leaders to provide regular feedback and
foster personal and professional growth. This approach is formalised
through bi-annual goal setting and succession planning aligned with
our Values and Behaviours framework.
We also support professional development through funded
memberships with bodies such as CIPD, ACCA, and RICS.
Safestore Holdings plc | Annual report and financial statements 2025
50
Sustainability continued
Equality, diversity, and inclusion (“EDI”)
At Safestore, we are committed to fostering a diverse, equitable, and inclusive workplace where every colleague feels empowered to bring their
full, unique selves to work. Our approach is guided by our core values and underpinned by our Equality, Diversity, and Inclusion Strategy, which
is designed to ensure that all colleagues are respected, valued, and able to thrive.
Colleague journey
• Provide an inclusive on-boarding
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
Colleague data and analytics
• Improve data quality tounderstand our
workforce diversity
• Invest in data development and analytics
• Use diversity data to inform
positive action
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
Leadership and management
• Equip and educate leaders to encourage
andwelcome diversity
• Actively remove bias
• Create a safe space foropen and
inclusivediscussion
Safestore Equality, Diversity, and Inclusion Strategy
Purpose: To enable colleagues to feel confident to bring their full, unique selves to work
Policies and practices
We are committed to providing an inclusive workplace and
encouraging and welcoming diversity with zero tolerance of
harassment and discrimination.
Our EDI policy covers all aspects of diversity including gender,
ethnicity, age, disability, sexual orientation, and socio-economic
background. We ensure our recruitment, development, and reward
practices are fair and free from bias. All colleagues have access to
learning and development opportunities, and we provide targeted
support for under-represented groups.
We comply with the Equality Act 2010 and all relevant UK legislation,
and our approach to data collection is consistent, transparent, and
respectful of privacy.
Progress and performance
Our Investors in People Platinum accreditation, achieved for the
second time in 2024, reflects our ongoing commitment to a high
performing, inclusive workplace. We are proud that:
• Over 84% of colleagues agreed that Safestore is committed
todiversity.
• Over 85% stated that we value and respect individual differences.
• Over 90% of colleagues stated that they were aware of our Equality,
Diversity, and Inclusion policy.
Our latest gender pay gap is 15.9% (mean) and 9.1% (median).
Ourmedian gender pay gap is below the national average of 13.1%
(Gender pay gap in the UK: 2024, ONS.gov.uk). Our median ethnicity
pay gap is 7.9%. We continue to makeprogressin attracting more
ethnic minority colleagues into ourstores and are actively working to
increase female representation in under-represented roles.
Further analysis can be found in the 2024 Diversity Pay Gap Report
on our website. The report also sets out a range of actions we are
taking to help close the gap.
Looking ahead
We recognise that building a truly inclusive workplace is an ongoing
journey. We will continue to review and evolve our EDI strategy, set
stretching targets, and engage with colleagues at all levels to ensure
Safestore remains a great place to work for everyone.
Gender and ethnicity data collection
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?” However, we appreciate
that not everyone identifies as the gender they were assigned at birth.
Therefore, in the UK, we have updated our gender data collection forms
by adding a supplementary question about gender identity, allowing
colleagues to self-identify.
Ethnicity data is voluntarily self-reported by colleagues in the UK via
our payroll self-service portal. The data in the table on the following
page is as at 31October 2025. The voluntary section, entitled ‘ethnic
group’, uses the Office for National Statistics (“ONS”) ethnicity
categories. Colleagues who have not provided data are not included in
our calculations. The global landscape for data reporting on ethnicity
is complex and, following a review of legal and local considerations,
at present we only collect ethnicity data for UK colleagues. Further
analysis, including our gender and ethnicity pay gaps and the actions
we are taking to close them, can be found in our 2024 Diversity Pay Gap
Report on our website.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
51
STRATEGIC REPORTOVERVIEW
Our people continued
Board and senior leadership diversity
In line with Financial Conduct Authority (“FCA”) Listing Rules and best practice, we report annually on the diversity of our Board and Executive
Management. As at 31 October 2025, 50% of our Board were women, with at least one senior Board position held by a woman, and at least one
Board member from a minority ethnic background. We are committed to meeting or exceeding the FCA’s targets:
• At least 40% of the Board are women.
• At least one senior Board position (Chair, CEO, SID, or CFO) is held by a woman.
• At least one Board member is from a minority ethnic background.
We have also published standardised numerical data on Board and Executive Management diversity by gender and ethnicity below.
Gender representation at 31 October 2025
Number of
Board members
1
Percentage
of the Board
Number of senior
positionson the Board
(CEO, CFO, SID, and Chair)
Number in
Executive
Management
2
Percentage
of Executive
Management
Men 4 50% 3 7 87.5%
Women 4 50% 1 1 12.5%
Not specified/prefer not to say — — — — —
Ethnicity representation at 31 October 2025
Number of
Board members
1
Percentage
of the Board
Number of senior
positionson the Board
(CEO, CFO, SID, and Chair)
Number in
Executive
Management
2
Percentage
of Executive
Management
White British or other White
(including minority-white groups)
7 87.5% 4 6 75.0%
Mixed/multiple ethnicgroups 1 12.5% — — —
Asian/Asian British — — — 1 12.5%
Black/African/Caribbean/Black British — — — — —
Other ethnic group — — — — —
Not specified/prefer not to say — — — 1 12.5%
Notes:
1 The Board self-reports its data.
2 Executive Management means the Executive Committee and Company Secretary.
Senior management positions
Total colleagues
Women Ethnically diverse
2023/24 2023/24
2024/25 2024/25
l Women 38%
l Men 62%
Ethnic diversity: we aim for 18.3% ethnic minority representation in
senior management by 2027.
28%
24%
26.9%
18.2%
Safestore Holdings plc | Annual report and financial statements 2025
52
Sustainability continued
Health and safety
At Safestore, we uphold a ‘safety-first’ culture as a core value across
all aspects of our business. The health, safety, and wellbeing of our
colleagues, customers, and contractors are our top priorities, and
we are unwavering in our commitment to fostering a safe, supportive
environment for everyone.
We take pride in setting high safety standards that often exceed local
and regional regulations. Regardless of the country or territory, we
hold ourselves to rigorous benchmarks that ensure consistent safety
practices across the Group.
Our approach emphasises sharing best practice and standardising
policies to create seamless, robust safety processes throughout
ouroperations. We are dedicated to preventing injuries and
advancingour industry-leading safety performance through
continuous improvement.
Our progress includes:
• Continuous engagement with our colleagues in developing
practical solutions to self-improve working environments.
• Heightened focus on new colleague safety induction training
andmentorship, as well as risk management.
• Implementation of Quentic, the new digital health and safety
system, providing key safety support functions simultaneously
across all territories, informing colleagues’ safety focus with
analytics and data.
• Group implementation of recording Lost Time Injury Frequency
Rate
1
(“LTIFR”) to assess our safety performance and gauge
effectiveness of Company safety management and culture.
We are continually strengthening our safety-focused culture by
actively engaging our colleagues in partnership with our leaders.
This collaborative approach empowers colleagues to contribute
to the development of safety solutions, initiatives, and feedback
processes, fostering shared responsibility in identifying and solving
safety challenges. In doing so, we aspire to prevent all injuries by
creating a zero-incident culture and setting a new goal of a Lost Time
Injury Frequency Rate of 5.1 and zero RIDDOR
2
/Reportable
3
Injuries
for 2025/26.
Group health and safety statistics
Injuries
The Group’s ability to precisely monitor safety performance
wasenhanced by the 2024 implementation of Quentic analytics.
Asubstantial 59% reduction in lost time was achieved in 2025, with
the LTIFR falling from 8.31 (2024) to 3.36. This improvement reflects
agenuine reduction in the number of injuries resulting in lost time.
The observed rise in reported accidents in 2025 is a positive indicator
of improved data collection, stemming from the deployment of our
new digital system, Quentic. The software simplifies and encourages
reporting across the Group, leading to better visibility of incidents,
rather than an actual increase in their occurrence.
RIDDOR/Reportable Injuries
No RIDDOR/Reportable injuries of colleagues, Customer, Contractor,
and Visitor (“CCV”) were reported for the period.
Construction
We are committed to creating the safest possible workplaces and
fostering a culture of safety across all of our construction projects.
Inevery territory, we challenge our colleagues and partners to
gobeyond minimum standards and embrace our high safety
expectations. We are proud to have maintained zero reportable
incidents on our construction sites for two consecutive years.
Colleague health and safety
Summary:
• 41 minor injuries were recorded over the past year.
• Zero reportable accidents/incidents were reported for this period.
Year ended 31 October 2023 2024 2025
Number of colleagues 753 804 858
Number of minor injuries 13 27 41
Number of reportable injuries
(RIDDOR/Reportable) — 3 0
LTIFR per 1,000,000 workinghours(Group) — 8.31 3.36
Notes:
1 Lost Time Injury Frequency Rate per 1,000,000 working hours (Group).
2 RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences (UK only).
3 Reportable = 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).
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
53
STRATEGIC REPORTOVERVIEW
Our customers
Sustainability continued
Customer engagement
Customer-centric communication
Safestore serves a diverse customer base across the UK and Europe
and remains committed to delivering excellent service tailored to
individual preferences. Following the closure of our UK-based Customer
Support Centre in May 2025, we have enhanced our digital and local
service channels to ensure continued accessibility and responsiveness.
Customers can now contact their local store teams directly by phone
and email, LiveChat, or WhatsApp, enabling faster, more personalised
assistance. Our store colleagues are highly trained to handle enquiries
efficiently, ensuring a seamless customer experience from initial
enquiry to reservation and move-in. In the UK customers can, if they
choose to, self-serve and complete the pre move-in process entirely
digitally with online booking, secure payment powered by Stripe, and
digital contract creation.
We maintain an active social media presence on platforms including
Facebook, Instagram, X (formerly Twitter), and LinkedIn. This allows
us to engage with customers in real time, share updates, and gather
valuable feedback to continually refine our service offering.
Addressing customer feedback and concerns
Customer feedback remains central to Safestore’s commitment to
delivering exceptional service, and we’re proud to have received
the Feefo Platinum Trusted Service award in the UK for the sixth
consecutive year, reinforcing our commitment to outstanding
customer experiences.
We actively collect and analyse reviews which provides us with a clear
view of customer experiences across all markets. Our teams regularly
review feedback, responding promptly to concerns and identifying
themes that may help us improve customer experience.
Target
4.5+
customer satisfaction
rating in each market
This year, the Group has prioritised Google Reviews as a key driver
of online brand reputation and visibility, especially as AI-powered
search increasingly favours businesses with strong, recent customer
feedback. High ratings and a consistent flow of verified reviews
help ensure our locations remain prominent in search results. All
our markets – including Italy, which joined the Group more recently
– haveseen year-on-year improvements in Google scores of 4.5+,
reflecting our continued focus on service quality across the Group.
This approach strengthens our digital presence and supports
customers in choosing us with confidence in each of our markets.
Feedback also helps benchmark our performance, guiding
improvements and reinforcing our market leadership. We engage
directly with customers through reviews, surveys and follow-up
communication, fostering dialogue and trust. Internally, we celebrate
colleagues who deliver exceptional customer service, embedding
aculture of responsiveness and continuous improvement.
Empowering customers for sustainable choices
At Safestore, we are committed to helping customers make
sustainable choices that have a positive impact on the environment.
In addition to reducing the environmental footprint of our own
operations, we provide customers with practical ways to make
sustainability part of their self-storage experience.
Our key initiatives include:
• Digital contracts and paper reduction – customers across all
markets can now sign a storage contract online. This has saved
approximately 1.2 million printed pages this year – equivalent
to over 2,400 reams of paper – including a 17% year-on-year
reduction in paper use in the UK.
• Supporting Refill and reducing plastic waste – the Refill
initiative is available at 124 Safestore stores across the UK,
offeringfree tap water to encourage reusable bottles and
reducesingle-use plastic.
• Eco-friendly products and services – all stores offer
sustainably packaged merchandise and eco-friendly box products,
giving customers environmentally responsible options without
compromising on quality or convenience.
• Electric vehicle (“EV”) charging points – installed across new
store locations to support cleaner transport and provide added
convenience for customers with electric vehicles.
• Encouraging sustainable practices – through our blog and
social media, we share practical sustainability tips, from efficient
packing to recycling advice, helping customers reduce their own
environmental impact.
By integrating these initiatives into our services, we make it easier for
customers to choose greener options and contribute collectively to
protecting the planet for future generations.
Performance
2024/25
4.5+
in all markets for
Google Reviews
Safestore Holdings plc | Annual report and financial statements 2025
54
Product quality and innovation
A multilingual digital offering
As part of our commitment to providing a seamless customer
experience, Safestore has developed a strong multilingual digital
presence. Our websites are available in multiple languages, allowing
customers across the UK and Europe to access content in their
preferred language. The platform delivers locally relevant content,
including video, imagery, storage sizes in the preferred measurement
system (imperial or metric), and quotations in local currencies. As
most visitors use mobile devices, our mobile-first approach ensures
asmooth and efficient user journey.
We have also restructured the website to make it easier for visitors to
find key information about our storage offerings, storage facilities and,
importantly, how to find their local store via our bespoke integration
with Google Maps. By prioritising most-searched content, which is
written in-house by professionals (for AI, not by AI), we are able to
present clear and concise information to help storage seekers make
informed decisions quickly. This supports trust and credibility in the
Group’s brands.
Our new unified platform brings additional benefits across
allmarkets,including:
• Consistent design and improved efficiency through reusable
content modules and pages.
• Faster website performance and a smoother user experience.
• Upgraded payment options via our integration with Stripe.
• Enhanced security and robust hosting environment.
This unified multilingual platform strengthens our digital presence,
enhances the customer experience, and supports growth across
existing and new European markets, ensuring that all customers can
access the information and services they need easily and efficiently.
App-controlled storage centres for ultimate convenience
Safestore continues to expand its network of app-based storage
centres, offering customers a fully digital, contactless experience.
Building on the success of our first unmanned store in Christchurch,
we now have several fully automated, app-operated centres across
our UK network, with further sites under development.
These stores use industry-leading automated technology, supported
by in-house communication and control systems, allowing customers
to access their units securely via a simple mobile app. This innovation
removes the need for physical keys or fobs and enables customers
to grant temporary access to family members, colleagues, or movers
with ease.
Our growing network of app-based stores demonstrates our
commitment to innovation, convenience, and flexibility – giving
customers secure, extended hour access and a seamless experience
that fits around their lives. The continued rollout of these physical
stores, with digital access controls, reinforces our leadership in smart,
technology-driven self-storage solutions.
Customer, Contractor, and Visitor (“CCV”) health
and safety
Maintaining a safe environment for our customers, contractors, and
visitors remains a top priority. The observed increase in the number
of reported accidents in 2025 is attributed to the implementation of
our new digital health and safety system, Quentic. This simplifies and
encourages the reporting process including the reporting of unsafe
behaviours, hazards and near misses, all of which promotes a safer
environment and reduces the likelihood of accidents, underscoring
our commitment to safety through continuous monitoring and
proactive measures.
Summary:
• 51 injuries were recorded over the past year, none of which were
reportable under RIDDOR
1
/Reportable
2
.
• 2 minor injuries were recorded to contractors and 49 to customers.
No injuries were recorded to visitors.
• Injuries were recorded as 14 minor cuts, 8 bumps and bruises and
3 muscular, mainly relating to customers handling their goods.
Year ended 31 October 2023 2024 2025
Number of stores 190 199 211
Customer, Contractor, and
Visitor movements
225,828 225,441 252,095
Number of minor injuries 30 49 51
Number of reportable injuries
(RIDDOR/Reportable)
3 2 0
RIDDOR per 100,000
CCV movements
1.3 0.9 0
Notes:
1 RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences.
2 Reportable = 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).
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
55
STRATEGIC REPORTOVERVIEW
Our community
Sustainability continued
Supporting community development
Safestore is proud to play an active role in supporting the development
of local communities through both financial contributions and practical
assistance. We work closely with charities and community
organisations, providing them with subsidised storage space,
whichhelps them to reduce their operational costs so they can
focuson delivering vital services to those who need them most.
This year, we donated 27,237 sq ft of subsidised space, valued at
£1,101,416, to 206 charity organisations across 115 stores. From local
food banks and youth groups to mental health charities and housing
support services, this practical support continues to make a tangible
difference to people and communities across the UK.
Responding to local needs
We’re committed to supporting the communities around our
stores and responding to local needs in practical and meaningful
ways. Every year, we see first-hand how charities and community
organisations are working to tackle urgent challenges such as
homelessness, domestic abuse and mental health. By offering
subsidised storage space, we help them manage their resources
more efficiently so they can focus on providing vital support to the
people who rely on them.
In July 2025, the Safestore Charitable Fund made a £2,500 grant to
Smart Works Bristol, an organisation that helps women move into
employment by providing high quality interview clothes and interview
coaching to boost confidence and self-belief. The grant is helping
to fund its new centre in Bristol and to cover core costs so it can
continue delivering employment support services to unemployed
women most in need across the city.
This year, our Head Office colleagues have also taken part in hands-on
initiatives to support local causes; for example, organising a food
bank collection to provide essentials for local families. These efforts
not only offer practical help but also bring our teams together in a
shared goal of making a positive difference.
Target
Provision of subsidised space and additional
supportto high impact local community groups –
opportunity led
Performance 2024/25
27,237 sq ft
provided, worth
£1,101,416
HandsOn London
For the 13th consecutive year, Safestore proudly partnered with
HandsOn London to support the WrapUp London campaign – an
initiative that collects and distributes winter coats to vulnerable people
across the UK. This year, just under 22,700 coats were collected
and distributed through a network of over 112 charities, reaching the
homeless, refugees, families in crisis, and the elderly.
Safestore’s contribution to the campaign included:
• Donating 5,585 sq ft of space across multiple locations, enabling
1,448 volunteers to sort and distribute coats efficiently.
• Acting as convenient drop-off points for members of the public,
while co-ordinating with businesses and community groups to
extend the campaign’s reach.
• Using our communication channels to raise awareness and inspire
participation among colleagues and customers alike.
Safestore’s long-standing support has once
again been instrumental to the success of our
WrapUp campaign. Their generous donation
of storage space and provision of drop-off
points across the UK make it possible for us
tocollect, sort and distribute thousands of
winter coats to those most in need.
Beyond the practical help, their ongoing
partnership reflects a genuine commitment
to community impact. We deeply value their
continued collaboration and look forward to
building on this success together.”
Jon Meech
CEO, HandsOn London
Safestore Holdings plc | Annual report and financial statements 2025
56
Our environment
Target
Performance 2024/25
UK
owned stores powered by 100% renewable electricity
100%
completed
Reduce
UK operational waste to landfill by 50% by 2025 vs
2016/17 level
100%
completed – we have achieved 100% diversion from
landfill forUK operational waste ahead of schedule
Achieve
100% diversion from landfill for UK construction waste
97.9%
on track – we have achieved 97.9% diversion of UK
construction waste from landfill
Reduce
carbon emissions by 20% of 2021 baseline by 2025
35%
on track – 16% year-on-year reduction; emissions now 35%
below2021
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 Climate-related Financial
Disclosures (“CFD”) 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 and Science Based Targets initiative
(“SBTi”) alignment
We reiterate our commitment to becoming 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 combines consumption reduction initiatives,
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.
The Carbon Risk Real Estate Monitor (“CRREM”) and Science
Based Targets initiative (“SBTi”) have established science-based
decarbonisation pathways for numerous developed real estate markets
globally, aligning with the climate goals set by the Paris Agreement.
These pathways serve as practical benchmarks for assessing individual
assets or portfolios in light of high level global commitments, like
net zero carbon targets and the Paris Agreement. Guidance for the
buildings sector has been published which is aligned with the CRREM
tool developed by the EU. As of today, no specific SBTi guidance exists
for the self-storage real estate subsector. We therefore assess our
decarbonisation plans with reference to the closest real estate subsector,
which is “distribution warehouse – warm”. Our decarbonisation trajectory
is ahead of that required by the SBTi pathway for this sector. From our
base year in 2021, we expected our market-based operational carbon
intensity to reduce by 57% by 2030. We are pleased to report that we
are ahead of schedule (and sector pathway) having already achieved a
50% reduction in emissions intensity across the Group. Per the above
commitment, we aim to reduce operational emissions intensity by 100%
by 2035, significantly ahead of the rate required by the sector pathway.
In addition to reducing operational carbon, we are working 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 generates
less embodied carbon than operators which develop new build
structuresexclusively.
2024/25 Achievements
100%
certified zero carbon electricity used across the Group
100%
of our UK-owned fleet vehicles arenowplug-in hybrid
electric vehicles
450kW
solar generation capacity added
5
UK stores have had gas removed this year, reducing
ourconsumption by over 15% year-on-year
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
57
STRATEGIC REPORTOVERVIEW
Climate-related financial disclosures
Since 2021, we have been on a journey to implement the relevant
recommendations of the Task Force on Climate-related Financial
Disclosures (“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 original 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 two members of the Executive Management Team (see the
Sustainability governance section on page 48 for the 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 risks 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 handled
by the relevant functional teams, for example, through proposed or
actual responses to regulatory changes 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 emissions intensity KPI. Performance
against this measure is linked to executive remuneration to encourage
and reward 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.
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 register is
reviewed annually to incorporate ongoing refinement 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 – including
wildfire, extreme heat, water stress, coastal flooding, fluvial flooding,
and drought – and their relevance to 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 other Northwestern 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 2030), medium (to 2050), and long (beyond 2050) term.
In keeping with the Group’s approach to risk management, risks are
deemed to be low impact where the potential annual EBITDA impact is
estimated to be below £100,000 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). An EBITDA
consequence of between £150,000 and £1 million or likely balance
sheet impairment between £10 million and £25 million was considered
medium impact.
Our environment continued
Sustainability continued
Safestore Holdings plc | Annual report and financial statements 2025
58
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 (most relevant for the core asset portfolio), 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).
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 impact on development
costs from higher building standards and installation of proactive risk mitigations is the primary mechanism for how climate-related issues filter
into the wider financial planning process.
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.
Low Medium
-long
Identify and avoid higher
risk exposure areas during
investment appraisal.
Acute Primarily, flooding risks (UK and Northwestern European 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 increase, 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, 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
directly or via SSA/FEDESSA
toensure standards for new
stores are proportionate given
intended use.
Identify existing locations
exposed – relocate or change
use if improvements are
notviable.
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 Ongoing Continue progress on
decarbonisation; maintain
transparency via disclosures.
Technology
Electric vehicles
(“EVs”)
To deliver net zero targets, EV use will increase and drive demand
for charging 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.
Low Short Ensure preparatory electrical
work is in place where possible.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
59
STRATEGIC REPORTOVERVIEW
Risk type Description
Potential
impact Timeframe
Mitigation/
resilience measures
Transition risks continued
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 Ensure heated areas are
upgraded as part of the refurb
cycle.
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
We already convert existing
structures where possible;
ensure competitive tendering
on 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 Maintain disclosure credentials
and progress on carbon intensity.
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
Maintain progress towards
operational net zero.
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
Maintain progress towards
operational net zero.
Sustainability continued
Our environment continued
Climate-related financial disclosures continued
Strategy continued
The self-storage sector is not a significant consumer of energy
when compared with other segments of the real estate landscape.
Comparing Safestore’s emissions intensity to a range of listed real
estate companies across Europe, it is clear the sector has far lower
greenhouse gas emissions intensity than other real estate sub sectors.
Despite this low relative starting point, considerable progress has
been made on reducing Group emissions intensity through energy
(specifically lighting) efficiency and gas removal from the UK estate.
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). Last year,
we introduced an interim target for absolute emissions and emissions
intensity for FY 2028 as a milestone on our journey to operational net
zero (see sustainability targets and KPIs on page 49).
GHG intensity (Scope 1 and 2) by REIT sector
kg CO
2
e/m
2
per year (2024)
1
Residential
Office
Retail
Industrial
Safestore
Lodging/Resorts
Note:
1 KPMG/EPRA: Deep-dive on Non-Financial Performance: Listed Real Estate
Companies Across Europe, December 2025.
57
41
32
24
6
2
Safestore Holdings plc | Annual report and financial statements 2025
60
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 UK portfolio
by 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 15 locations in the UK with an elevated risk.
There is a slightly higher exposure to surface water flood risk and yet
66% of floor area and value is in stores with less than 0.5% Annual
Exceedance Probability. The risk profile of the portfolio has been
stable over the past few years.
Our Benelux portfolio (which represents 10% of Group floor space
in 2025) has a slightly higher flood risk profile with 7 of 25 locations
considered high risk by the insurance underwriters (last year 7 of
21, so overall risk profile has improved with new additions). In Spain,
insurers do not conduct flood risk assessments of specific assets
due to a small premium which applies to every policy to cover
such natural occurrences. However, we understand the current
Spanish portfolio to be at low risk of surface flooding. According to
ThinkHazard!, a web-based tool established by the Global Facility for
Disaster Reduction and Recovery (“GFDRR”), Barcelona is classified
as ‘low’ risk for urban flooding resulting from intense rainfall. This
is the second lowest risk level and means that there is a chance of
more than 1% that potentially damaging floods occur in the coming
ten years (return period of c. 1 in 1,000 years). Madrid, by contrast,
is considered ‘very low’ risk with a less than 1% chance of this
sort of event.
Accordingly, overall the Group portfolio has low exposure to acute
flooding risk, and whilst the frequency of extreme precipitation events
is projected to increase in all warming scenarios, 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
1
.
Flood risk of UK portfolio 2025
(% of insured value excl. customer goods)
100%
80%
60%
40%
20%
0%
River/coastal %
Low/medium (<0.5% AEP) High (>0.5% AEP)
Surface water %
Research using the most recent granular climate models
2
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 £100,000 per
event, regardless of the warming scenario.
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 most 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.
Notes:
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).
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.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
61
STRATEGIC REPORTOVERVIEW
Our environment continued
Sustainability continued
Climate-related financial disclosures 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,
we estimated capital investment of approximately £650,000 would be
required which is incorporated into our annual capital expenditure plans.
For more details, see page 64. Should any of our facilities with offices be
unable to cost-effectively meet MEES standards, we would convert office
space into a 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 are approximately 1.5% of revenue), 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, 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.
Low impact rainfall days/yr
Global warming level
160
140
120
100
80
60
40
20
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 S and E Scotland
Medium impact rainfall days/yr
Global warming level
50
40
30
20
10
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 S and E 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 S and E Scotland
Note:
1 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.
Projections of low, medium, and high impact rainfall days
inthe UK per year under different warming scenarios
1
Safestore Holdings plc | Annual report and financial statements 2025
62
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).
Our headline KPI for management is market-based operational
carbon emissions intensity. Performance against this measure is
linked to executive remuneration to encourage and reward progress
in emissions reduction. It is also one of the KPIs linked to our active
revolving credit facility. We set milestone targets for FY 2025 and FY
2028 relative to base year FY 2021 as milestones towards operational
net zero in FY 2035.
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.
• Energy performance ratings (EPC or equivalent) of new
storedevelopments.
These are disclosed in the following section of this report, on pages
63 to 73. Specifically, Scope 1, 2, and 3 emissions are disclosed
inthe mandatory greenhouse gas reporting and Streamlined Energy
and Carbon Reporting sections on pages 67 to 73.
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.
Our suppliers and partners
At Safestore, we recognise that our suppliers play a critical role
in achieving our sustainability objectives. As we progress in our
sustainability journey, we are committed to working with suppliers
that share our values and commitment to responsible business
practices. Our goal is to ensure that our supply chain aligns with our
sustainability principles, helping us reduce our environmental impact
while driving positive social outcomes.
Key focus areas in 2025:
• Responsible sourcing: we continue to partner with suppliers
thatprioritise sustainable materials and ethical practices.
• Carbon footprint: as part of our operational net zero focus,
we are working closely with our suppliers to reduce the carbon
footprint of goods and services.
• Waste management: we continually strive to divert 100% of
construction waste from UK stores away from landfill.
• Supplier audits: we have intensified our supplier audit processes,
ensuring that ESG considerations are fully integrated into our
supply chain management.
Sustainable operations
Renewable energy
Electricity
One way that Safestore is committed to the environment is through
the use of green electricity. Firstly, this is through reducing the
consumption of energy through efficiency programmes. When energy
must be used, all sites in the UK, France, the Netherlands, Spain,
and Belgium are powered by certified green electricity. Some of this
consumption goes towards EV charging stations that some sites offer
to our colleagues and customers. Safestore also generates some of
our own power through solar photovoltaic panels on our new stores
where possible. During 2025 we added over 450kW of generation
potential to take the installed capacity to over 1MW. We plan to add a
further 0.5MW during 2025/26.
Installed solar PV generation capacity (kWp)
1,600
1,400
1,200
1,000
800
600
400
200
0
2021
169
2024
547
1,004
2025 2026
(planned)
1,503
UK EU markets Total
Gas
In 2020, we committed to eliminating gas usage by 2030 from our UK
stores; this will be achieved by installing more efficient high output,
low energy electric heaters, and a variety of additional measures such
as heat pumps.
The benefits of removing gas from our stores are wide ranging
and include:
• Reducing our CO
2
emissions.
• Lower maintenance costs and no carbon monoxide testing.
• Protection from volatile gas territories.
During 2025, a further five UK stores were removed from dependence
on natural gas.
Water
Safestore strives to reduce its water consumption where possible and
the installation of efficiency schemes (push button taps, aerators, and
flow rate restrictors) help to make this happen. Being proactive with
maintenance, and swift with reactive repairs, helps mitigate against
wasted water and reduces the likelihood of leaks.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
63
STRATEGIC REPORTOVERVIEW
Sustainability continued
Sustainable operations continued
Renewable energy continued
Merchandise
We are proud to sell Safestore branded merchandise across the UK,
the Netherlands, Belgium, 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. In France, our boxes are made from paper sourced
from sustainably managed forests, and deliveries are made using
hybrid vehicles.
Operational waste
Safestore is proud that since May 2022, 100% of UK operational waste
has been successfully diverted from landfill. This goal has also been
achieved with our waste service provider Renewi in Belgium.
In some central European locations where waste collection is
undertaken by local authorities, our visibility of waste treatment is
limited. We are, however, committed to reducing the impact of our
waste and promoting recycling across our stores in order to minimise
our environmental footprint.
Vehicle fleet
For our Company-owned vehicle fleet, we look to purchase modern plug-in
hybrid electric vehicles capable of delivering the business needs on a
day-to-day basis whilst helping us achieve our sustainable transport goals.
Longer term, we are looking to transition our entire fleet to fully electric
vehicles, subject to practicability and vehicle availability across all territories.
During 2025, the remaining petrol/diesel vehicles in the UK company
fleet were transitioned to plug-in hybrid electric vehicles.
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. 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 four properties are identified as needing improvements to meet the
possible 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.
In our European geographies there is new emerging legislation. The
key legislation is the EU Energy Performance of Buildings Directive
2024 and the EU Energy Efficiency Directive 2024. This is an outline
framework which requires each geography within the EU to implement
a regime compliant with the overarching framework. We will continue to
monitor how each geography intends to respond to the regulations at
national level and what that means for our portfolio.
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
* PHEVs = plug-in hybrid electric vehicles; BEVs = battery electric vehicles.
Our environment continued
Safestore Holdings plc | Annual report and financial statements 2025
64
Sustainable construction and sourcing
Safe, sustainable construction
We are 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 derived 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.
• Since the beginning of 2024, where structurally/practically feasible,
we have been installing solar PV systems and electric vehicle
charging points in new stores. During the year, we installed solar
PV systems at our stores in Lea Bridge, Buchelay, Amsterdam
New West, Melsbroek, Madrid (Carabanchel), Madrid (Barajas),
Pamplona, and Barcelona (Manso).
• All new store developments provide bicycle parking for both our
customers and colleagues.
New store development – construction waste
and recycling
In the UK, our Lea Bridge store achieved 97.9% landfill diversion for its
construction waste. Across our European operations, we have set a
goal of achieving 98% landfill diversion within the next twelve months
as part of our commitment to responsible waste management.
In the UK, we continue to partner with the Community Wood
Recycling charity (“CWR”) to ensure that wood waste from our
construction sites is re-used. We require our principal contractors to
set aside all waste wood for collection by CWR, which repurposes
it into a range of garden products, from flowerbeds to benches and
tables. By collaborating with CWR, we are not only reducing landfill
waste but also supporting community-based re-use initiatives that
develop skills for the many volunteers who work with it.
As a Group, we are dedicated to recycling or recovering 100% of soft
and hard plastics from our construction projects. We continue to work
closely with our suppliers to reduce the amount of plastic packaging
arriving at our sites and to further decrease plastic usage over the
coming years. We are committed to phasing out all non-essential
plastic products by 2030 as part of our ongoing sustainability journey.
UK Considerate Constructors Scheme (“CCS”)
In the UK, construction sites, companies, and suppliers voluntarily
register with the CCS and agree to abide by the Code of Considerate
Practice, which is designed to encourage best practice beyond
statutory requirements.
Our new store in Lea Bridge scored an average of 44 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.
Energy Performance Certificates (“EPCs”)
ofnewbuildings and conversions
EPCs 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. Since 2024, our target has been to ensure
that 100% 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 that in 2025, all of our new buildings
achieved a rating of either ‘A’ or ‘B’
∆
.
Note:
∆
SLR Consulting Ltd (“SLR”) 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
∆
. SLR’s limited assurance statement, 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,
the Netherlands, 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.
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 the Netherlands.
Our Lea Bridge store, developed during 2025, achieved a BREEAM
‘Very Good’ rating.
Construction health and safety
Safestore has a robust health and safety policy where we aim to
exceed minimum standards. Accordingly, our development projects
experience very low incident levels compared with our peers. During
2025, 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.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
65
STRATEGIC REPORTOVERVIEW
MijnSafestore Amsterdam Nieuw-West —
amodel for sustainable self-storage
Opened in 2025, MijnSafestore Amsterdam
Nieuw-West represents a new generation
of environmentally responsible self-storage.
Situated in the Lutkemeerpolder, on the
western edge of Amsterdam, the store was
designed to demonstrate that commercial
development can actively enhance its natural
surroundings rather than diminish them.
From circular construction methods to biodiversity-led landscaping,
the project integrated sustainability into every element of its design
and operation.
Designed with nature in mind
Inspired by the biodiversity of the Lutkemeerpolder, the building
was conceived as a ‘neighbour to nature’. The surrounding
landscape features water channels, green banks, and native
planting that provide habitats for birds, insects and small mammals.
More than half of the site remains green, creating a tranquil
environment that supports the local ecosystem.
Key ecological features include:
• Green facades with over 50% coverage by native climbing plants
such as ivy, honeysuckle, hop, and clematis.
• Edible hedgerows and fruit gardens that offer food for people
and wildlife alike.
• Nesting boxes and insect hotels to encourage biodiversity.
• Bat-friendly lighting to minimise light pollution and protect
nocturnal species.
Circular and sustainable construction
MijnSafestore Amsterdam Nieuw-West was built using circular,
reusable materials and modular components designed for long
term adaptability:
• The steel frame is fully demountable, allowing future reuse.
• Facade panels are made from recycled concrete aggregate and
U-glass for natural light diffusion.
• Sandwich panels use the CradleCore system, in which insulation
materials can be fully recycled. The whole panel including the
insulation materials is fully recyclable after its lifespan.
• Bio-based composites made in the Netherlands replace
tropicalhardwoods.
Internally, the modular storage units can be relocated or repurposed,
supporting a circular economy within the building’s life cycle.
Renewable energy and smart water management
The store’s roof combines solar panels and green roofing, achieving
an energy-positive outcome:
• 108 solar panels generate around 55,000 kWh annually, enabling
the site to operate at net zero energy.
• The remaining roof area is covered with sedum planting, which
enhances
insulation, improves air quality, and provides habitats
forpollinators.
• Rainwater harvesting is integrated into the design. Collected
water irrigates the facades via an automated system, with excess
channelled through an open ‘waterfall’ feature into on-site ponds
– both practical and educational.
Sustainable landscaping and biodiversity
Beyond the building itself, the surrounding landscape has been
designed as a mini biotope. Indigenous trees, shrubs, and grasses
create varied habitats, while brushwood piles, sandy banks,
and ponds offer nesting and breeding areas for wildlife. All site
management is free from harsh chemicals, and pruning waste is
processed locally on site and reused in the garden.
A blueprint for the future
MijnSafestore Amsterdam Nieuw-West demonstrates Safestore’s
ambition to lead the sector in sustainable development. By combining
energy efficiency, circular construction, and biodiversity enhancement,
the store delivers environmental, social, and architectural value.
Itillustrates how storage facilities can operate in harmony with
nature – offering practical urban infrastructure that also restores
and enriches the local environment.
Sustainability continued
Our environment continued
Safestore Holdings plc | Annual report and financial statements 2025
66
Mandatory greenhouse gas (“GHG”)
emissions reporting (wholly owned
stores only)
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 2024/25 reporting period.
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 2024/25 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
3
), 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 2024 to 31 August 2025, 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 (March 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.
• 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
2
e.
We have used the 2023 GHG conversion factors published annually
by the Department for Environment, Food & Rural Affairs (“Defra”) and
the Department for Energy Security and Net Zero, formerly known as
the Department for Business, Energy and Industrial Strategy (“BEIS”).
Exceptions are the French, Spanish, Dutch, and Belgian CO
2
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, water consumption, 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 in the Sustainability section of our corporate 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,
prevention of pollution, and to 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.
The following table displays our total Group performance for
electricity consumption, gas consumption, water consumption,
wastegeneration (recycling, landfill, Energy from Waste), and
businesstravel against the previous years.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
67
STRATEGIC REPORTOVERVIEW
Mandatory greenhouse gas (“GHG”) emissions reporting
(whollyownedstoresonly) continued
Breakdown of consumption by source (2020–2025)
Emissions source
Units
2021/22
(Sep–Aug)
2022/23
(Sep-Aug)
2023/24
(Sep–Aug)
2024/25
(Sep–Aug)
Natural gas MWh 2,742 2,587 2,419 1,964
Electricity MWh 14,755 14,708 15,200 16,196
Purchased water m
3
53,024 52,774 41,772 47,876
Recycling tonnes 277 233 182 145
Landfill tonnes 37 — — —
Energy from Waste tonnes 696 599 484 438
Business travel miles 608,381 740,770 513,295 557,113
(Company vehicles)
Business travel (train/plane/employee/hire vehicle) miles 423,570 463,757 464,963 430,136
0.50% 0.08% 5.46% 10.37% 83.59%
Purchased water Waste Business travel Natural gas Electricity
Breakdown of associated GHG emissions by source (2024–2025)
Group environmental performance – analysis
We have analysed the year-on-year change in our environmental performance and provided commentary below.
Gas performance
We aim to design and build energy and carbon efficient environments. New developments do not use natural gas, and we are also undertaking
a multi-year programme of removing existing UK stores from dependence on gas appliances as part of our plan to achieve net zero emissions
from operations by 2035.
Gas performance
Year ended 31 August Units 2021/22 2022/23 2023/24 2024/25 % change
Gas use MWh 2,742 2,587 2,419 1,964 (18.8%)
Scope 1 emissions tCO
2
e 500.5 473.3 442.4 359.2 (18.8%)
Total gas consumption across all our stores is 1,964 MWh, an 18.8% decrease compared with the previous financial year. This is driven by a
reduction in the UK store portfolio that uses natural gas for space and water heating. A further five stores were removed from gas dependence
in the year.
Electricity performance
We are continuing to identify opportunities to reduce electricity consumption across our stores including the use of self-generation through
solar PV panels on new stores.
Recognising that our electricity consumption is predominantly for lighting, we have been undertaking an upgrade programme across our
portfolio which replaces lighting in stores with high efficiency, motion-sensitive LED fitments as well as high efficiency external lighting.
Sustainability continued
Our environment continued
Safestore Holdings plc | Annual report and financial statements 2025
68
Electricity performance
Year ended 31 August Units 2020/21 2021/22 2022/23 2023/24 2024/25 % change
Electricity use* MWh 13,506 14,755 14,708 15,200 16,196 6.6%
Scope 2 emissions (LB) tCO
2
e 2,555 2,620 2,803 3,005 2,641 (12.1%)
Scope 2 emissions (MB) tCO
2
e 153 178 47 87 7 (92.5%)
Scope 3 emissions tCO
2
e 228 237 260 248 255 2.6%
Notes:
(LB) Location based
(MB) Market based
* Electricity use includes electricity purchased for electric vehicles.
Total electricity consumption across the Group was 16,196 MWh, a 6.6% increase compared to the prior year. The increase is driven by a
combination of new store openings and the transition from gas-burning appliances in some UK stores to high efficiency electric alternatives.
The increase in electricity consumption is more than offset by the reduced gas consumption in these stores. Carbon emissions associated with
this gas-to-electric transition are also greatly reduced (on market-based method) as the electricity used to power our stores is generated from
renewable sources. Despite the increase in consumption, Scope 2 location-based emissions decreased 12.1% driven by year-on-year changes
in grid conversion factors. Scope 2 market-based emissions decreased by 92.5% due to the full year impact of the transition to green electricity
supply in Belgium during FY 2024.
Water performance
Our stores consume very low volumes of water, and we strive to further minimise our consumption of water wherever possible through the
installation of efficiency measures.
Water performance
Year ended 31 August Units 2020/21 2021/22 2022/23 2023/24 2024/25 % change
Water use m
3
47,503 53,024 52,774 41,772 47,876 14.6%
Scope 3 emissions tCO
2
e 20.0 22.0 20.0 14.2 17.3 22.5%
The total water consumption across all Group stores was 47,876 m
3
, an increase of 14.6% compared to the prior year.
Waste performance
Our stores produce a relatively small amount of 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 waste segregation at stores and are actively
enhancing our recycling facilities to maintain waste diversion from landfill.
Waste performance
Year ended 31 August Units 2021/22 2022/23 2023/24 2024/25 % change
Waste – recycling tonnes 277 233 147 145 (1.4%)
Waste – energy fromwaste tonnes 696 599 448 438 (2.6%)
Waste – landfill tonnes 37 0 0 0 0%
Scope 3 emissions tCO
2
e 38.0 17.7 3.8 2.7 (33.8%)
In the twelve months to August 2025, 583 tonnes of waste were generated, a decrease of 2% compared to the prior year.
Business travel performance
We report on our business travel, which includes vehicles owned by Safestore and business mileage on employee-owned cars and public transport
such as plane, train, and taxi. We continue to promote public transport and car sharing where possible.
Business travel performance
Year ended 31 August Units 2021/22 2022/23 2023/24 2024/25 % change
Business travel miles 608,381 740,770 513,295 557,113 8.5%
Business travel (Scope1) MWh 658 721 406 458 12.8%
Business travel (Scope3) MWh 308 311 309 225 (27.3%)
Scope 1 emissions tCO
2
e 159 170 94 106 12.5%
Business travel (PHEV/EV) Scope 2 emissions tCO
2
e Not reported 6 8 7 (17.4%)
Business travel Scope3emissions tCO
2
e 107.9 122.0 103.0 83.0 (19.7%)
Company vehicles travelled 557,113 miles in the twelve months to 31 August 2025, an 8.5% increase versus the prior year. This increase is
associated with the operational management of a growing, and more geographically dispersed store portfolio.
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
69
STRATEGIC REPORTOVERVIEW
Mandatory greenhouse gas (“GHG”) emissions reporting
(whollyownedstoresonly) continued
Group GHG performance (mandatory GHG reporting)
We have used the Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting guidance
1
and Greenhouse Gas
Protocol
2
methodology for compiling this GHG data and, for UK energy consumption and emissions, included the following material GHGs: CO
2
,
N
2
O, and CH
4
. In accordance with the BEIS reporting guidelines and data conversion factors for greenhouse gas emissions
3
, the equivalent reports
on our France, Spain, the Netherlands, and Belgium properties used the CO
2
e factors provided by carbon footprint emission factors September
2025 edition
4
for grid electricity both for location-based and residual fuel mix for market-based and transmission and distribution losses (“T&D
losses”). Our GHG emissions for 2024/25 covered 100% of gross floor space. For vehicle fleets in the UK, France, Spain, the Netherlands, and
Belgium (both directly controlled and owner-driven vehicles), we used the following GHG emission conversion factors:
UK Government GHG emission conversion factors for company reporting
Standard set for 2025 as this set covers the greatest proportion of the current GHG reporting year
Source: DESNZ 2025 / Carbon Footprint, September 2025
Scope Emissions source Units Conversion factors
1 Natural gas (gross CV) kWh 0.18296
1 Business travel (petrol) miles 0.26187
1 Business travel (diesel) miles 0.27849
1 Business travel (plug-in hybrid) (Company owned) miles 0.14751
2 UK electricity grid supply (LB) kWh 0.17700
2 France electricity grid supply (LB) kWh 0.04704
2 Spain electricity grid supply (LB) kWh 0.13589
2 Belgium electricity grid supply (LB) kWh 0.11945
2 Netherlands electricity grid supply (LB) kWh 0.25477
2 UK electricity residual mix (MB) kWh 0.36532
2 France electricity residual mix (MB) kWh 0.04704
2 Spain electricity residual mix (MB) kWh 0.29053
2 Belgium electricity residual mix (MB) kWh 0.16988
2 Netherlands electricity residual mix (MB) kWh 0.38826
2 Business travel (plug-in hybrid) (Company owned) miles 0.01885
3 UK electricity transmission and distribution kWh 0.01853
3 France electricity transmission and distribution kWh 0.00420
3 Spain electricity transmission and distribution kWh 0.01442
3 Belgium electricity transmission and distribution kWh 0.00568
3 Netherlands electricity transmission and distribution kWh 0.01200
3 Water supply m
3
0.19130
3 Water treatment m
3
0.17088
3 Commercial waste – recycling tonnes 4.68568
3 Commercial waste – Energy from Waste tonnes 4.68568
3 Commercial waste – landfill tonnes 520.53
3 Business travel – plane (international flights) pass-km 0.12786
3 Business travel – train (national rail) pass-km 0.03546
3 Business travel – train (international rail) pass-km 0.00446
3 Business travel – employee vehicles (average diesel) miles 0.27849
3 Business travel – employee vehicles (average petrol) miles 0.26187
3 Business travel – employee vehicles (average unknown) miles 0.26915
3 Business travel – employee vehicles (average battery electric) miles 0.06512
3 Business travel – hire car/regular taxi pass-km 0.14861
Notes:
The international 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 factors. (Note: Defra/BEIS no longer provides overseas electricity generation conversion factors).
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-2025
4 Source: Carbon Footprint September 2025 Emission Factors (https://www.carbonfootprint.com/international_electricity_factors.html)
Sustainability continued
Our environment continued
Safestore Holdings plc | Annual report and financial statements 2025
70
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 previous year 2023/24 and current year 2024/25.
UK – GHG emissions (tCO
2
e) Units 2022/23 2023/24 2024/25
Scope 1 tonnes CO
2
e (UK) 473 361 345
Scope 2 (LB) tonnes CO
2
e (UK) 2,504 2,451 2,130
Scope 2 (MB) tonnes CO
2
e (UK) — 8 6
Scope 3 tonnes CO
2
e (UK) 371 319 309
Total GHG CO
2
e (LB) total tonnes CO
2
e (UK) 3,348 3,131 2,783
Total GHG CO
2
e (MB) total tonnes CO
2
e (UK) 844 688 660
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (UK – thousand sq ft) 0.385 0.351 0.301
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (UK – thousand sq m) 4.15 3.78 3.24
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (UK – thousand sq ft) 0.10 0.08 0.07
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (UK – thousand sq m) 1.05 0.83 0.77
Note:
Scope 3 figures now include emissions from business travel via public transport (train/plane) and employee/hire vehicles for business travel.
Europe – GHG emissions (tCO
2
e) Units 2022/23 2023/24 2024/25
Scope 1 tonnes CO
2
e (Europe) 171 176 121
Scope 2 (LB) tonnes CO
2
e (Europe) 299 554 512
Scope 2 (MB) tonnes CO
2
e (Europe) 47 79.2 0.2
Scope 3 tonnes CO
2
e (Europe) 49 50 49
Total GHG CO
2
e (LB) total tonnes CO
2
e (Europe) 519 781 682
Total GHG CO
2
e (MB) total tonnes CO
2
e (Europe) 266 306 170
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (Europe – thousand sq ft) 0.149 0.199 0.147
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (Europe – thousand sq m) 1.60 2.14 1.57
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (Europe – thousand sq ft) 0.08 0.08 0.04
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (Europe – thousand sq m) 0.82 0.84 0.39
Notes:
Scope 3 figures now include emissions from business travel via public transport (train/plane) and employee/hire vehicles for business travel.
UK – underlying energy use (MWh) Units 2022/23 2023/24 2024/25
Scope 1 MWh (UK) 2,470 1,901 1,819
Scope 2 MWh (UK) 12,093 11,837 12,031
Total Scope 1 and 2 MWh (UK) 14,563 13,738 13,850
MWh intensity MWh/floor space (UK – thousand sq ft) 1.68 1.54 1.50
MWh intensity MWh/floor space (UK – thousand sq m) 18.05 16.58 16.14
Europe – underlying energy use (MWh) Units 2022/23 2023/24 2024/25
Scope 1 MWh (Europe) 839 923 603
Scope 2 MWh (Europe) 2,615 3,363 4,165
Total Scope 1 and 2 MWh (Europe) 3,454 4,286 4,768
MWh intensity MWh/floor space (Europe – thousand sq ft) 0.99 1.09 1.03
MWh intensity MWh/floor space (Europe – thousand sq m) 10.68 11.73 11.00
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
71
STRATEGIC REPORTOVERVIEW
Sustainability continued
Mandatory greenhouse gas (“GHG”) emissions reporting
(whollyownedstoresonly) continued
Streamlined Energy and Carbon Report (“SECR”) summary continued
GHG emissions Units 2022/2023 2023/2024 2024/25 % change
Scope 1 tonnes CO
2
e (UK, Europe) 644 536 466 (13.3%)
Scope 2 (LB) tonnes CO
2
e (UK, Europe) 2,803 3,005 2,641 (12.1%)
Scope 2 (MB) tonnes CO
2
e (UK, Europe) 47 87 7 (92.5%)
Scope 3 tonnes CO
2
e (UK, Europe) 420 369 358 (3.3%)
Total GHG CO
2
e (LB) total tonnes CO
2
e (UK, Europe) 3,867 3,911 3,464 (11.4%)
Total GHG CO
2
e (MB) total tonnes CO
2
e (UK, Europe) 1,110 993 830 (16.5%)
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (thousand sq ft) 0.3178 0.3046 0.2499 (18.0%)
GHG CO
2
e intensity (LB) tonnes CO
2
e/floor space (thousand sq m) 3.420 3.275 2.683 (18.1%)
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (thousand sq ft) 0.091 0.077 0.060 (22.7%)
GHG CO
2
e intensity (MB) tonnes CO
2
e/floor space (thousand sq m) 0.98 0.83 0.64
∆
(22.8%)
Note:
∆
SLR Consulting Ltd (“SLR”) 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
∆
. SLR’s limited assurance statement, which includes details of the selected metrics assured, can be found in the Sustainability section of the Group website.
Energy consumed Units 2023/24 2024/25 % change
Scope 1 MWh (UK, Europe) 2,825 2,421 (14.3%)
Scope 2 MWh (UK, Europe) 15,200 16,196 6.6%
Total Scope 1 and 2 total MWh (UK, Europe) 18,025 18,617 3.3%
MWh intensity MWh/floor space (thousand sq ft) 1.40 1.34 (4.4%)
MWh intensity MWh/floor space (thousand sq m) 15.09 14.42 (4.5%)
Procurement of renewable energy
We actively pursue renewable energy within our purchasing decisions. Since May 2024, all electricity for owned stores across the Group has
been powered by zero carbon electricity sources.
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. We also continue to invest in self-generation via solar panels, reducing our requirement for grid
electricity.
Group GHG performance (mandatory GHG reporting) analysis
Total GHG emissions (location based) for Scope 1, Scope 2, and Scope 3 for the twelve-month period to 31 August 2025 have decreased by
11.4% (or decreased by 448 tonnes CO
2
e) to 3,464 tonnes CO
2
e. Of the total GHG emissions, Scope 1 accounts for 14%, Scope 2 (location
based) accounts for 76%, and Scope 3 accounts for 10%. In terms of market-based emissions, the emissions have reduced by 16.5% (or
reduced by 164 tonnes CO
2
e) to 830 tonnes of CO
2
e, Scope 1 accounts for 43%, Scope 2 (market based) accounts for 1%, and Scope 3
accounts for 56% of the overall GHG emissions across global stores.
Our overall floor space has increased from 12,838,515 sq ft (2023/24) to 13,864,750 sq ft (2024/25).
Our GHG emissions (location based) CO
2
e intensity has decreased from 0.305 tonnes CO
2
e per 1,000 sq ft in 2023/24 to 0.250 tonnes CO
2
e
per 1,000 sq ft in 2024/25, which is a decrease of 18.0%.
GHG emissions (market based) CO
2
e intensity has decreased from 0.077 tonnes CO
2
e per 1,000 sq ft in 2023/24 to 0.060 tonnes CO
2
e per
1,000 sq ft in 2024/25, which is a decrease of 22.7%.
Our environment continued
Safestore Holdings plc | Annual report and financial statements 2025
72
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Our GHG emissions and intensity since 2019/2020
5,000
4,000
3,000
2,000
1,000
0%
Total operational CO
2
e (tonnes)
Location based (tonnes CO
2
e/1,000m
2
) Market based (tonnes CO
2
e/1,000m
2
) Group floor area (million sq m)
Sustainable energy First (formally “BiU”) has collated the data set covering Scope 1 to 3 emissions for the period 1 September 2024 to 31 August
2025. ‘Sustainable energy First’ has direct visibility of the raw data used to calculate ~94% of the total global Scope 1 to 3 emissions and as such can
provide confirmation on the completeness and accuracy of these emissions as well as around the emissions factors applied, and 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.
14% 76% 10%
Scope 1 Scope 2 Scope 3
56% 1% 43%
Scope 1 Scope 2 Scope 3
Breakdown of emissions scopes 2024/25 – location based
Breakdown of emissions scopes 2024/25 – market based
4,171
1,320
3,671
1,269
3,685
1,243
3,867
1,110
3,911
993
3,464
830
0.97
1.13
1.19
1.29
1.09
0.98
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Safestore Holdings plc | Annual report and financial statements 2025
73
STRATEGIC REPORTOVERVIEW
Dear shareholder
On behalf of the Board, I am pleased to introduce the Company’s
corporate governance report for the year ended 31 October 2025.
The Board continues to uphold the highest standards of governance
and this remains a central principle by which it operates. All decisions
are made with thorough deliberation and careful consideration of
their impact on all stakeholders, with the long term success of the
Company at the forefront. This review, along with the reports from
the Nomination, Audit, and Remuneration Committees, details the
principal governance matters addressed by the Board during the
financial year ended 31 October 2025. Further commentary and
analysis on the Board’s decisions and the manner in which it fulfilled
its responsibilities are contained throughout the various reports.
Board and Committee composition
In comparison to previous years, the Board has benefited from
notable stability and consistency, with no new Directors appointed or
departing. This continuity has reinforced robust boardroom dynamics
and a strong Board culture, as reflected in the findings of our recent
external Board evaluation, which I discuss further below.
Following last year’s internal Board evaluation, the Nomination
Committee recommended that Committee compositions be rotated
to more evenly distribute responsibilities and time commitments
among Directors, thereby further enhancing boardroom dynamics
anddiversity of thought.
Gert van de Weerdhof stepped down from the Nomination
Committee and was succeeded by Laure Duhot. With this change,
each Committee Chair now serves as a member of the Nomination
Committee. Additionally, Delphine Mousseau was appointed to the
Audit Committee. Directors have transitioned effectively into their
new roles. Moreover, Directors continue to be encouraged to attend
all Committee meetings, enabling continued valuable contributions
and insights.
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 goal is realised
through the implementation of our strategic plan, underpinned by
robust governance, risk management frameworks, and a strong
organisational culture and set of values.
The Company fosters an open and supportive working environment.
Engagement with colleagues and stakeholders has been instrumental
to our success, forming an essential part of our values and corporate
culture. Further details regarding these engagement practices can
be found on pages 46 to 73 and within the Sustainability Report. Our
achievements are attributable to the dedication of our employees,
whose commitment to our strategy, values and culture has remained
Safestore’s most valuable asset. The high degree of employee
engagement is evidenced by our two-time Investors in People (“IIP”)
Platinum accreditation. Safestore is proud to be one of only a small
number of companies to have received this prestigious award as it is
a reflection of the positive sentiment of our colleagues towards their
experiences at the Company.
The Board is satisfied that our culture is aligned with the Company’s
purpose, values and strategy. Our values are summarised on page 48
and our strategy is explained on pages 29 to 30.
Board priorities
The Board remains committed to progressing its strategic objectives.
Achieving sustainable growth by expanding our store portfolio,
investing in new assets, and entering under-penetrated self-storage
markets across Europe continues to be a key priority. The Board
maintains a strong focus on generating value for shareholders,
adhering to a disciplined investment strategy with capital allocation
limited to high yield opportunities that meet rigorous return on
investment criteria. As previously indicated, the Board places great
importance on workforce engagement and fair compensation, in
addition to its ongoing oversight of risks including environmental,
health and safety matters, and governance responsibilities. The Board
is dedicated to the continued implementation of the recommendations
of the Task Force on Climate-related Financial Disclosures (“TCFD”)
and reporting in accordance with its framework. We have made
climate-related financial disclosures in line with TCFD guidance;
further information isavailable on pages 45 and 58 to 63.
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.”
David Hearn
Chairman
Safestore Holdings plc | Annual report and financial statements 2025
74
Introduction to corporate governance
Equality, diversity, and inclusion
Equality, diversity, and inclusion are integral components of the
Board’s dynamics and play a critical role in our ongoing success.
Safestore remains committed to fostering an ethnically and gender-
diverse Board and is pleased to continue meeting the diversity targets
established by the FTSE Women Leaders and Parker Reviews, in
alignment with the Board’s Diversity Policy. As of the date of this
report, 50% of the Board members are women (FY 2024: 50%).
TheBoard maintains its commitment to challenging management on
advancing diversity in senior leadership roles and actively encourages
greater female representation at all levels within Safestore. The
Company is dedicated to attracting, retaining, and supporting women
throughout the organisation, while recognising the need to address
the under-representation of ethnic minority colleagues in higher paid
positions. Further information regarding gender and ethnic diversity
across the Group, as well as details of the Company’s equality,
diversity, and inclusion policy and statistics relating to the gender and
ethnicity balance among senior managers and their direct reports,
can be found on page 52.
Board Performance Review
The Board undertakes a formal annual evaluation of its performance
as well as that of its Committees. In 2025, an external review
was conducted by Lintstock, which collaborated closely with the
Company Secretary and I to design a tailored enquiry consistent
with Safestore’s business objectives and those of the Board.
The assessment addressed core governance matters, including
information flow, Board composition, group dynamics, and key
elements such as people, strategy, and risk relevant to Safestore’s
effectiveness. Particular attention was given to the:
• long term priorities regarding Board composition;
• methods to enhance the Board’s annual work cycle; and
• oversight of Safestore’s strategic direction.
Further details on the evaluation process and its outcomes are
available on pages 84 to 86.
Compliance statement
The Company is reporting against the UK Corporate Governance
Code 2018 (the “Code”). Throughout the year ended 31 October
2025, and up to the date of this report, the Company has applied the
principles and complied with all provisions of the Code. The Code
is available on the Financial Reporting Council (“FRC”) website at:
www.frc.org.uk.
2025 Annual General Meeting (“AGM”)
The AGM of the Company will take place at 1.00pm on Wednesday
18 March 2026 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 2026 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 2025 AGM.
David Hearn
Chairman
14 January 2026
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
75
Commenced role
September 2013
Skills and experience
Frederic Vecchioli founded our French
business in 1998 and has overseen its
growth to 35 stores in Paris operating
under the ‘Une Pièce en Plus’ brand today.
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
April 2024
Skills and experience
Simon Clinton joined the Group in March
2024 and was appointed as Chief Financial
Officer on 22 April 2024. Simon was
previously chief financial officer of Logicor,
one of Europe’s largest warehouse and
logistics real estate companies. He joined
Logicor as director of group finance in
February 2017, before being promoted
to chief financial officer in May 2018.
Prior to this, Simon held a number of
senior finance roles at Tesco and Diageo.
Simon began his career andqualified as a
chartered accountant atHays Allen.
External appointments
None.
Commenced role
January 2020 (appointed to the Board
and as a member of the Remuneration
Committee in 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. 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, until
November 2023. In January 2024, David
was appointed chair of Tate & Lyle PLC.
External appointments
David is chair of Tate & Lyle PLC
and a director of Lovat Partners
andCommitted Capital.
David Hearn
Non-Executive Chairman
Commenced role
May 2022 (appointed as Senior
Independent Director and Chair of the
Audit Committee in March 2024)
Skills and experience
Jane Bentall has extensive experience
and understanding of operating multi-site,
consumer-led businesses. Jane was CEO
of Haven, the UK holiday parks chain
and largest business division of Bourne
Leisure. Prior to becoming CEO 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.
Jane is an ACA-qualified accountant
and a fellow of the Institute of Chartered
Accountants of England and Wales.
External appointments
Jane is chair of Resident Hotels Limited
and chair of audit and finance and a
non-executive director of The Royal
Marsden NHS Foundation Trust. Jane is a
director of Oakman Group plc. She has her
own business consulting company andis a
member of Pilotlight.
Jane Bentall
Senior Independent Director
N
R
Simon Clinton
Chief Financial Officer
A
N
R
Gender
l Female 4
l Male 4
l British 4
l French 3
l Dutch 1
Nationality
Safestore Holdings plc | Annual report and financial statements 2025
76
Board of Directors
as at 14 January 2026
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. Gert was
the CEO of the charity Mercy Ships until
2025, but has remained as a non-executive
director of Mercy Ships Netherlands. Gert
stepped down as a non-executive director
of Sligro Food Group NV in 2025.
External appointments
Non-executive director of Mercy Ships
Netherlands.
Gert van de Weerdhof
Non-Executive Director
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.
Laure was a non-executive director of
Emeis SA (ex-Orpea) until December
2023, where she was part of the team
which successfully negotiated a major
restructuring of the large healthcare group,
and NB Global Monthly Income Fund
Limited until July 2024.
External appointments
Laure is currently a non-executive director
of Primary Health Properties plc. Laure
is also a director of Pegasus Homes
Holdings Ltd and acts as the independent
member on CBRE-IM’s UK investment
committee. She is chair of GI DI Pilgrim
Acquisition Limited (the holding entity for
the ASK4 group) and of PRSO Limited.
Laure Duhot
Non-Executive Director
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. Delphine was VP markets
at Zalando anda non-executive director on
several boards including 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
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
A
R
R
N
A
R A
R
l >5 years 3
l 3 – 5 years 3
l 0 – 3 years 2
Tenure
Committee membership
A
Audit Committee
Chair of Committee
N
Nomination Committee
R
Remuneration Committee
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
77
Our purpose: to add stakeholder value by
developing profitable and sustainable spaces
that allow individuals, businesses, and local
communities to thrive.
Leadership
The role of the Board
The Board is collectively responsible for promoting the Company’s
long term sustainable success and ensuring actions taken benefit
itsstakeholders.
Principal duties of the Board include:
• establishing the Company’s purpose, values, and strategic
direction, and confirming these align with the Group’s
overall culture;
• setting management performance targets and monitoring
achievement towards those goals; and
• determining the Group’s risk appetite, reviewing the robustness of
financial controls and risk management systems, and ensuring the
Group is adequately resourced.
The Board also encourages active engagement with shareholders
and stakeholders on material topics.
In compliance with the Companies Act 2006 (the “Act”) and the
Company’s Articles of Association, the Board holds ultimate
responsibility for guiding the Group’s strategy, direction, and culture,
always focused on advancing long term sustainable success for the
benefit of its stakeholders.
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 for the year, along with details of how it fulfils its
responsibilities, are outlined on pages 79 to 83. The Group’s strategy
has evolved over time to incorporate sustainability and stakeholder
value into its core objectives. This strategy is underpinned by the
Group’s values described on page 48 and on our website, as well as
by established behaviours and a defined governance structure that
influence business operations and promote the Company’s Purpose.
Non-Executive Directors offer oversight and guidance to Executive
Directors, contribute to developing proposals for the Group’s strategy,
and assess Executive Director performance relative to set objectives.
The Board delegates certain duties to its Audit, Remuneration, and
Nomination Committees. Each Committee operates under defined
terms of reference available online in the Governance section of the
Company’s website: www.safestore.com. Committee activities are
detailed in separate sections of this report. The Audit Committee
receives additional support from the Risk Committee, which is chaired
by the Chief Financial Officer.
The Board has established both a Standing Sub-Committee and
a Disclosure Sub-Committee, each convening as necessary. The
Standing Sub-Committee is authorised to approve routine matters,
including those related to the administration of the Company’s share
scheme arrangements and any other items expressly delegated by
the Board from time to time. The Disclosure Sub-Committee holds
delegated responsibility for overseeing the Company’s information
disclosures to the market and the administration of the Company’s
compliance with Market Abuse Regulation and its internal Market
Abuse procedures.
All Committees and Directors are encouraged to seek information
from any Group employee and have the ability to obtain external
professional advice should they consider it appropriate.
The responsibility for executing agreed plans, budgets, and projects
in alignment with the Board-approved Group strategy – as well
as overseeing the effective operation of internal control and risk
management systems – is delegated to the Executive Directors, who
are supported by the wider executive management team. Their remit
includes implementing the Group’s strategic initiatives to optimise
trading performance across the existing store portfolio, monitoring
financial results, maintaining a robust and adaptable capital
structure, identifying targeted opportunities for portfolio growth and
expansion, supporting colleague development, and advancing the
Group’s sustainability agenda. Further details regarding sustainability
governance may be found on page 48.
The Board and its independence
As of the date of this report, the Board comprises eight Directors:
the Chairman, two Executive Directors, and five independent Non-
Executive Directors, with Jane Bentall serving as Senior Independent
Director. The Chairman was deemed independent upon appointment.
Details regarding each Director’s qualifications, experience, and
commencement dates are provided on pages 76 and 77.
Individually and collectively, the Directors possess the skills,
knowledge, and expertise required to provide effective leadership
for the Group. Excluding the Chairman, at least half of the Board is
independent. The Board regularly reviews the independence of its
Non-Executive Directors and is consulted about any new external
commitments or changes to existing external commitments. The
Board remains satisfied that these commitments do not conflict
with the individual Non-Executive Directors’ responsibilities or affect
their independence or ability to devote sufficient time to their role
within the Company. The Board is confident that every Director has
adequate capacity and the necessary competencies to fulfil their
dutieseffectively.
Corporate governance
Safestore Holdings plc | Annual report and financial statements 2025
78
In furtherance of this, as part of the 2024 annual Board review, the
Nomination Committee recommended to the Board that a number
of changes be made to the composition of the Board Committees.
Itwas viewed that this rotation of committee members would refresh
the boardroom dynamics and would more evenly distribute the roles
and responsibilities of each of the Non-Executive Directors.
Non-Executive Directors continue to offer independent judgement in
the Board’s decision making process. Frederic Vecchioli serves as
a director and provides oversight for the joint venture and associate
group structures operating in Germany and Italy. With the exception
of these roles, the Executive Directors do not hold executive or
non-executive directorships in any other external organisations.
Frederic Vecchioli and Simon Clinton act as statutory Directors for
Group subsidiary entities along with other members of the Executive
Team and the Company Secretary.
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 in 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 established with the Board’s approval
to facilitate engagement between colleagues from different areas
of the business and provide a robust two-way feedback process
between the Board and colleagues. The panel operates under terms
of reference that define its purpose and includes a mechanism for
appointing colleague representatives, known as ‘People Champions’.
In 2025, the panel comprised 15 People Champions, who engaged
directly with the Chief Executive Officer, representing the wider
workforce, on a wide range of topics.
During the year, we communicated with colleagues and gathered their
feedback in several ways. The People Champions continued to meet
with the CEO across a variety of subjects, including remuneration.
Appropriate feedback from these sessions was subsequently
presented to the Board and Remuneration Committee. Over recent
years, feedback from the panel has led to tangible improvements
for colleagues, including enhanced Company sick pay, improved
healthcare provision, and increased opportunities to participate in
all-colleague share schemes, and was influential in the award of the
recognition payments made to all employees, excluding Executive
Directors, in 2025 to acknowledge the hard work of colleagues,
despite not hitting Company financial performance bonus thresholds.
The Board receives regular feedback from the panel, with outcomes
reflected in the Sustainability report (page 50) and Directors’
remuneration report (pages 94, 98 and 102).
In addition to the advisory panel, the CEO holds virtual town hall
events where colleagues are able to raise questions, discuss business
issues, and provide feedback.
Our management team and the workforce advisory panel continued
to review progress against the recommendations from the 2024
Investors in People colleague survey, assessing the impact of
improvements made and identifying further actions to support
leadership engagement. The Board considers the formal workforce
advisory panel and these integrated feedback mechanisms to be
effective in supporting transparent decision making and fostering a
culture of continuous improvement for all colleagues.
Effectiveness
Activities of the Board
A total of nine Board meetings were scheduled during the year,
conducted either in person or via video conference. There was an
additional ad hoc meeting to consider a specific matter. The Board
operates according to a formal schedule outlining matters reserved
for its deliberation, including, but not limited to, strategic, financial,
operational, and governance responsibilities. A summary of the
principal activities undertaken by the Board throughout the year,
inline with this schedule, is provided on pages 80 and 81.
All members of the Board have access to the services of the
Company Secretary, and minutes of Board meetings are promptly
circulated to each member. In addition, there is ongoing informal
communication between Executive and Non-Executive Directors to
address significant issues as they arise outside of the formal meeting
calendar. At least once annually, a separate meeting is convened
exclusively for Non-Executive Directors.
The Group arranges Directors’ and Officers’ insurance cover through
its appointed insurance brokers, with the policy subject to annual
review to ensure it remains appropriate.
Board meetings held in 2025/26
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 2025
Number of
meetings held
during tenure
during the year
Number of
meetings
attended
David Hearn* 10 9
Frederic Vecchioli 10 10
Simon Clinton 10 10
Jane Bentall 10 10
Avis Darzins 10 10
Laure Duhot 10 10
Delphine Mousseau 10 10
Gert van de Weerdhof 10 10
Note:
* David Hearn was unexpectedly hospitalised before the scheduled Board and
Committee meetings in December 2024 and was unable to attend.
In addition to the scheduled Board meetings, the Standing Committee
met on four 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 2025 (three-year)
Sharesave scheme and formalities in relation to a number of
propertyacquisitions.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
79
Effectiveness continued
2025 Board and Committee Performance Review
Safestore conducts annual Board and Committee Performance Reviews in accordance with the UK Corporate Governance Code, and
tri-annually engages with a third party provider to conduct a thorough review, aiming to enhance the effectiveness of its Board and highlight
areas for improvement. In 2025, the Company appointed Lintstock Ltd, an independent advisory firm specialising in board reviews, to
undertake a performance review of the Board and its Committees, ensuring an objective and tailored evaluation process.
The review process began with defining the scope and objectives through meetings between Lintstock, the Chairman, and the Company
Secretary. Together, they devised a bespoke line of enquiry that addressed the specific needs of Safestore, covering essential governance
aspects such as information flow, composition, Board dynamics, and also focusing on people, strategy, and risk areas. Particular attention
wasgiven to long term Board composition, refining the annual work cycle, and oversight of the Company strategy.
During July and August 2025, Board members completed surveys on the performance of the Board and its Committees. Lintstock then
analysed the survey results and produced a detailed report, which included recommendations to further support Board effectiveness.
The findings were subsequently discussed at the September Nomination Committee meeting, where agreed actions were discussed for
implementation and ongoing monitoring.
Key findings from Lintstock noted strong engagement from the Safestore Board, with Directors showing alignment on strategic priorities and
a clear commitment to business engagement. The Chairman’s management of meetings and Company Secretarial support received positive
feedback, and the Board’s composition was seen as well matched to the Company’s strategic needs. The review identified priorities such as
ongoing strategic oversight, enhancing engagement with management, and maintaining focus on succession planning and talent management.
The Board’s performance was also benchmarked against the Lintstock Governance Index, providing valuable context to its strengths and priorities.
In addition to the Performance Review the Board continued to review its own composition and that of its Committees, assessing in detail the
particular strengths and weaknesses of the Board and its Committees as a whole, with due consideration given to matters of independence,
the benefits of diversity and three-horizon succession planning.
A summary of the key matters considered by the Board during the year
Responsibilities Activities
Strategy • Consideration and approval of proposed updates to the Company’s strategy.
• The CEO and CFO provided regular updates on the development and implementation of the approved Company strategy.
• Management team members delivered presentations on executing the strategy within their respective operations.
• Selective portfolio management and expansion activities were reviewed, including:
• establishment of a joint venture with Nuveen for the acquisition of EasyBox; and
• site acquisitions in the UK, France, Spain, Italy, and Benelux.
Performance
and operational
matters
• Reviewed the 2025 performance against budget and updated forecasts for the UK, French and Expansion Markets.
• Reviewed customer performance data including occupancy levels and rates.
• Oversaw marketing strategy and implementation of new website launch and establishment of Stripe payment facility.
• Maintained a detailed focus on full year earnings guidance.
• Reviewed and discussed the 2025 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
• Conducted evaluation of the Group’s capital structure and assessed and approved a new USPP and a new term loan,
refinancing portions of the RCF.
• Oversaw the preparation and accuracy of the Company’s going concern assessment and long term viability statements.
• Reviewed cash flow management, dividend policy, including compliance with UK REIT requirements, and
shareholder returns.
• Launched investment into a new SAAS-based finance computer system.
People, culture
and values
• Received regular updates regarding colleague wellbeing, staff safety and HR matters, including information about
colleague engagement and reports from the ‘Make the Difference’ people forum, which serves as the formal workforce
advisory panel.
• Reviewed and approved the Group’s principal policies, such as the Modern Slavery Act statement, anti-corruption and
bribery statement and policy, the whistleblowing (“Speak Out”) policy, and the health and safety policy statement.
• Examined the Diversity Pay Gap Report published in 2025.
• Assessed the Company’s sustainability strategy, including its commitment to achieving operational carbon neutrality
(netzero) by 2035.
• Reviewed arrangements for colleague engagement.
Safestore Holdings plc | Annual report and financial statements 2025
80
Corporate governance continued
Responsibilities Activities
Governance
andrisk
• The Board approved updates to its composition, evaluated Director independence, and addressed
succession planning.
• An increase in Director fees was authorised, aligning with general pay adjustments for colleagues.
• The Board reviewed the Company’s Market Abuse Manual and Dealing Code effectiveness.
• Governance and legal updates were considered by the Board.
• The Company’s risk appetite was assessed within the context of its strategic objectives.
• The results of the 2025 Board and Committee effectiveness review were considered and the actions from the 2024
effectiveness reviews were tracked.
• The Directors’ Conflict of Interests Register underwent review.
• Ongoing monitoring and evaluation of the Company’s risk management and internal control systems were conducted.
(Refer to the Audit Committee Report for further details regarding effectiveness.)
IT and Cyber
security
• In 2025, the Board assumed joint responsibility with the Audit Committee for IT security and cyber matters, reflecting an
increased focus and risk profile following several high profile cyber-attacks in the UK.
• Assessment of external penetration testing result, alongside regular internal assessments to proactively identify and
address vulnerabilities in the organisation’s systems.
• The Board reviewed emerging cybersecurity trends and threats, facilitating informed discussions on strategy and
prioritising resilience against evolving risks.
• IT and Cyber security training remained a top priority, together with the evaluation of phishing test results to better
assess employee awareness and inform improvements to cybersecurity initiatives.
• The Board successfully oversaw the rollout of a new website platform, enhancing the Company’s digital presence and
improving user experience.
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 as part of the implementation of the 2023 Directors’ Remuneration Policy.
• 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.
Other • The Annual Report and Financial Statements was reviewed, and the final dividend was recommended in accordance
with the Company’s dividend policy for shareholder consideration.
• The 2025 half year results announcement was reviewed, and the interim dividend was declared in line with the
Company’s dividend policy.
• Interim management statements were prepared in November 2024 and February and September 2025 to provide
trading updates.
• Monthly shareholder analysis reports were received and examined.
Board appointments
The decision to appoint new Directors is taken by the entire Board in
a formal meeting based on a recommendation from the Nomination
Committee. The Nomination Committee consults with 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.
There were no new appointments to the Board in the financial year
ended 31 October 2025.
Board development
The Chairman, with support of the Company Secretary, is
accountable for ensuring that all Non-Executive Directors receive
ongoing training and development. Non-Executive Directors remain
mindful of their responsibility to stay fully informed about current
issues. Tailored updates are presented at Board meetings and to
Audit Committee members, which have included briefings by the
Company’s advisers. The Company Secretary updates the Board
on developments in regulatory and corporate governance matters at
each meeting, integrating these topics into ongoing Board training
and the forward planner as appropriate.
Procedures are in place whereby Directors may obtain independent
legal or financial advice at the Company’s expense, co-ordinated
by the Company Secretary, should they consider it necessary for
the proper fulfilment of their duties as Directors. In 2025, no such
independent advice was sought.
Appointment terms and elections of Directors
All Directors have entered into service agreements or letters of
appointment, with the terms detailed in the Directors’ remuneration
report on page 121. The service agreements for Executive Directors
and the letters of appointment for Non-Executive Directors are
available for inspection at the Company’s registered office during
normal business hours, including the 15 minutes immediately
preceding the AGM. The letters of appointment for Non-Executive
Directors align with the Code’s provisions regarding expected time
commitment. At each AGM, all Directors stand for re-election in
accordance with the Code and the Company’s Articles of Association.
Furthermore, the Articles of Association stipulate that any Director
appointed during the preceding year is subject to election at
the next AGM.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
81
Corporate governance continued
Effectiveness continued
Directors’ conflicts of interest
The Company’s Articles of Association provide Directors with the
authority to consider and, where appropriate, approve situations
where a Director’s declared interest could potentially conflict
or conflicts with the interests of the Company. Procedures are
established at each meeting for Directors to disclose and document
any potential or actual conflicts that may occur. The register of
reported conflicts is reviewed by the Board at least once a year.
Throughout the year, the Board has followed these procedures.
Accountability
Risk management and internal control
A summary of the principal risks and uncertainties within the business
is provided on pages 38 to 42.
The Board holds overarching responsibility for defining Safestore’s
risk appetite and supervising the Group’s risk management and
internal control frameworks. These mechanisms are designed
to mitigate or manage risks where feasible and to ensure that
appropriate safeguards and or insurance coverages are in place when
full mitigation is not possible.
Ongoing processes have been established by the Board to
identify, evaluate, and manage strategic, financial, operational, and
compliance risks faced by the Group, and to determine appropriate
actions for managing and mitigating those risks. Monitoring of internal
control and risk management processes is delegated to the Audit
Committee. These measures have remained in place throughout the
year and up to the date of this report.
The Risk Committee supports the Group’s risk management strategy
and conducts regular reviews of formal risk assessments, reporting
updates to the Audit Committee. The Risk Committee is chaired
by the Chief Financial Officer and includes representatives from the
Operations, Finance, Human Resources, and Property functions.
Risk management is an ongoing programme within the Group and is
formally addressed at both operational and Board meetings.
In the year ended 31 October 2025, the Group appointed a new
Head of Internal Audit to lead the internal audit function. The internal
audit team consists of five auditors who review operational and
financial controls across the Group, providing assurance regarding
the effectiveness of risk management and control processes at stores
and Head Office. The Chief Financial Officer, new Head of Internal
Audit, and Company Secretary conducted a review of Provision 29
requirements within the 2024 UK Corporate Governance Code and
took the opportunity to examine principal risks and internal controls,
preparing an action plan for effectiveness reviews prior to Provision 29
taking effect for the financial year ending 31 October 2027.
Throughout the financial year, the Board, through direct involvement
and delegated authority to the Audit and Risk Committees, has
overseen and reviewed risk management activities, practices, and
internal control systems within the Group. No significant failings or
weaknesses have been identified, and during 2025, the system of
internal control was maintained according to requirements.
Budgetary process
A budgeting process is implemented, involving the preparation and
validation of an annual budget at both country and functional levels.
The budget undergoes review and approval by the Board. Directors
receive timely information necessary to monitor financial performance.
The budgeting process includes regular reviews comparing actual
performance to budget, enabling the Board and management to
identify variances and address trends or challenges as they arise.
These assessments facilitate ongoing monitoring of financial targets
throughout the year, supporting decision making and allocation
of resources across the Group. Forecasting and reforecasting
procedures are also established to accommodate changes in
the operating environment, which align with the Group’s strategic
and operational objectives and maintain financial discipline within
theorganisation.
Investment appraisal (including acquisitions)
Capital expenditure is governed by budgetary approval processes
and clearly defined authorisation levels. Acquisition activities adhere
to internal guidelines that specify investment appraisal standards,
financial benchmarks, procedures for negotiation and execution,
andprotocols for post-acquisition oversight.
Comprehensive oversight is applied throughout the investment
appraisal process, utilising established protocols for evaluating and
approving capital projects and acquisitions. This ensures alignment
with the Group’s strategic priorities and risk management framework.
Such a structured approach promotes informed decision making
andupholds accountability across all related activities.
Company ethics and whistleblowing
The Company is dedicated to upholding the highest standards of
integrity and honesty and expects all employees to adhere to these
principles in their professional conduct. The Company recognises
that clear and honest communication is vital for maintaining its core
business values and for ensuring that any instances of malpractice
arepromptly identified and addressed.
Multiple policies are made available online for all colleagues, including
a code of conduct, an anti-bribery and corruption policy, a receipt
of gifts and corporate hospitality policy, and a whistleblowing policy.
The anti-bribery and corruption policy underscores the Group’s
commitment to preventing bribery, tax evasion, and corruption, in
compliance with the Bribery Act 2010, the Criminal Finances Act 2017,
and the Economic Crime and Corporate Transparency Act 2023.
The whistleblowing policy provides clear procedures for reporting
malpractice and, together with the code of conduct, aims to deter
fraud, corruption, and other serious misconduct. These measures
are also designed to safeguard the Group’s business operations
andreputation.
During the year there was one anonymous whistleblowing incident
reported. This matter was thoroughly investigated by the Head of
Internal Audit and no credible evidence was found to support it.
Thematter was reported to the Board.
The Board views the payment of taxes as an essential responsibility
that contributes positively to the socio-economic development
of the countries in which it operates, particularly through local
employment opportunities. Since 2016, the Group has maintained
a tax strategy approved by the Board and subject to annual review
by the Audit Committee. This strategy is publicly accessible at
www.safestore.com. It is the policy of Safestore to pay the appropriate
amount of tax in every jurisdiction where it conducts business,
ensuring fair and proper application of local tax laws in relation to the
economic substance of business transactions. Safestore does not
engage in artificial tax avoidance arrangements or utilise tax havens
toreduce its tax liabilities.
Safestore Holdings plc | Annual report and financial statements 2025
82
Investor relations and shareholder
andinvestor engagement
We are dedicated to engaging proactively and constructively with
all shareholders, taking into consideration their views as part of the
Board’s decision making process. The Group prioritises transparent
communication with shareholders and sustains dialogue within the
investment community through a comprehensive investor relations
programme. This programme features formal presentations of annual
and interim results, meetings with institutional investors and analysts
as needed, and participation in investor conferences. Presentation
materials from these events are made available on the Company’s
website for shareholder access. The Board is committed to ensuring
that our shareholders, investors, and the wider investment community
have a thorough understanding of our strategy, performance, and
corporate culture.
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. The Board received an Investor Relations update at each
Board meeting, including share register analysis to monitor new
shareholders, and regular updates on market consensus.
Over the course of the year, Directors, including the Chairman and the
Remuneration Committee Chair, actively engaged with shareholders,
offering face-to-face meetings with institutional investors to cover a
range of subjects.
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 and 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 both the Annual General Meeting (“AGM”) and
the corporate website as essential channels for engaging 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 Company ensures that significant matters
are handled through separate resolutions presented at the AGM and
discloses proxy voting details for each resolution, further promoting
transparency and accessibility for all investors.
How Safestore Holdings plc has applied the Principles
set out in the UK Corporate Governance Code
The Board is fully committed to the Principles set out in the UK
Corporate Governance Code, applying them transparently and
responsibly. The Board sets the purpose, values, and strategy,
regularly reviewing progress to ensure management actions align
withour long term business goals and stakeholder interests.
Leadership roles are clearly defined, and a strong presence of
independent Non-Executive Directors provides balanced decision
making and effective oversight.
Through comprehensive disclosures throughout the entirety of this
Annual Report, we offer clear explanations of how each Principle
is embedded within our governance framework, including Board
composition, succession, audits, remuneration, risk management,
and internal controls. These disclosures are structured to help
shareholders see how Board Committees operate, how performance
and decisions are evaluated, and how our governance policies
support sustainable value creation while managing risk appropriately.
By presenting a holistic view in the Annual Report — covering
strategy, governance, and engagement — we enable shareholders to
evaluate not only the application of each Principle, but also how they
collectively shape the Company’s culture, integrity, and accountability.
This transparency ensures investors can make informed assessments
based on the Annual Report as a whole.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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David Hearn
Chair of the Nomination Committee
Meetings held in 2024/25
Members of the Committee during theyear ended
31October 2025
Number of
meetingsheld
during tenure
during the year
Number of
meetings
attended
David Hearn (Chair)*
Jane Bentall
Laure Duhot**
Gert van de Weerdhof***
Notes:
* David Hearn was unexpectedly hospitalised before the scheduled Board and Committee
meetings in December 2024 and was unable to attend.
** Laure Duhot was appointed to the Committee on 15 May 2025.
*** Gert van de Weerdhof stepped down from the Committee on 15 May 2025.
Membership
The Nomination Committee comprises Non-Executive Directors and is
chaired by David Hearn. Following a review of Committee composition
from the 2024 Board and Committee Evaluation, the Committee
recommended to the Board that the Non-Executive composition of
its Committees be rotated to distribute the responsibilities and time
commitment more evenly. Consequently, Gert van de Weerdhof
stepped down from the Nomination Committee on 15 May 2025 and
was replaced by Laure Duhot.
Key objectives
To ensure that the Board, its Committees, and the Executive Team
comprise individuals possessing the requisite skills, knowledge, and
experience, with due regard to the benefits of diversity and inclusion,
including of diversity of thought. Additionally, it is responsible
for leading the annual effectiveness review of the Board and its
Committees in fulfilling their duties, and providing recommendations
to the Board regarding composition and succession planning for the
Board, its Committees and the Executive Team.
Responsibilities
The Board has established terms of reference for the Nomination
Committee, which can be found under ‘Governance Documents’ on
the Governance pages of the Group’s website at www.safestore.com.
These terms outline the Committee’s responsibilities, including:
• evaluating the composition of the Board and providing
recommendations regarding Board appointments and senior
executive succession planning; and
• supervising the performance evaluation process for the Board,
itsCommittees, and individual Directors.
How the Committee operates
The Nomination Committee met as necessary and each meeting had
full attendance, with the exception of the meeting in December 2024.
Activities of the Committee during the year
Responsibilities Activities
Board and
Committee
composition
• Assessed the diversity, skill set and composition
of the existing Board and its Committees.
• Made a recommendation to the Board to
rebalance the Non-Executive composition
of its Committees to distribute the
responsibilities and time commitments
more evenly.
Performance
reviews
• Proposed actions deriving from the 2024
Board and Committee Evaluations and
monitored the progress of those actions
throughout the year.
• Set a defined scope for the selection of the
2025 external Board and Committee evaluator.
Following a rigorous selection process, the
Company engaged Lintstock Ltd to conduct
an external review of the performance of the
Board and its Committees.
Succession
planning
• Discussed succession planning in respect of
both Board members and senior management
within the Group across the near term,
medium term and long term horizons.
Board
development
and onboarding
programme
• Reviewed the programme for Director
continued development.
Governance • Reviewed the Group’s culture, values
andbehaviours.
• Discussed the remit and role of the Committee
and reviewed its terms of reference.
Directors were well aligned on
key priorities and demonstrated
a strong commitment to close
engagement with the business.”
Nomination Committee report
Safestore Holdings plc | Annual report and financial statements 2025
84
Diversity and inclusion
The Nomination Committee routinely reviews diversity and inclusion
topics within the Board and the wider Group. Information regarding
the sex and ethnicity of the Board and employees, as well as
data collection methods, is available on pages 51 and 52. The
Board addresses its responsibilities in promoting a culture where
colleagues can bring their full identities to work. The Board adopts a
Board Diversity Policy, designed to align with the Safestore People
Principles. This policy states that inclusivity and diversity contribute
to a range of perspectives and insights, inform decision making, and
support business objectives. The Committee tracks progress towards
the policy’s objectives and relevant external targets, such as those
from the FTSE Women Leaders and Parker Reviews, through an
annual review conducted by the Head of HR.
The Group supports equal opportunities through its Equality,
Diversity and Inclusion Policy, which aligns with the Listing Rules,
and Disclosure Guidance and Transparency Rules, and incorporates
current legislation and best practices. This policy outlines the Group’s
commitments relating to race, gender, socio-economic status, and
disability equality.
Applications for employment from disabled persons receive
consideration, and suitable training and career development
opportunities are provided.
The Board Diversity Policy and the Safestore People Principles are
available on the Company’s website.
2024 Board evaluation actions
The 2024 Board Evaluation was undertaken internally through a
comprehensive process that included a Board-wide questionnaire,
and a series of interviews conducted with the Chairman. This
approach enabled candid feedback from Board members and
facilitated a detailed assessment of the Board’s effectiveness,
dynamics and governance practices. The evaluation focused
on identifying areas for improvement and strengthening Board
operations, providing valuable insights into both strengths and
opportunities for development.
The Nomination Committee recommended and tracked several
actions during the year, including revising Board papers for clarity
and focus, allocating more time to Group strategy discussions,
establishing opportunities for Non-Executive Directors to interact with
senior leadership outside formal meetings, and prioritising effective
succession planning.
The Nomination Committee confirmed that the recommendations
arising from the 2024 Board evaluation had been implemented. The
Committee noted that it was particularly pleased with the enhanced
quality of Board papers resulting from the review conducted by the
Chief Financial Officer and Company Secretary. Whilst significant
progress had been made in the year, the Committee identified further
opportunities for improvement with engagement with the senior
leadership team and recommended that certain actions should
continue to be a focus for the forthcoming financial year.
2025 Board performance review
In line with the Corporate Governance Code and best practice,
theCompany undertakes an external Board review on a tri-annual
basis. It is the Board and Nomination Committee’s view that the use
of an external board review provider increases objectivity, enhances
credibility, and provides a deeper analysis of Board performance and
dynamics. An external consultant can provide a fresh perspective
to identify blind spots and facilitate candid discussion on sensitive
topics, to increase Board effectiveness and to identify areas for
improvement. Following a rigorous selection process, the Company
engaged Lintstock Ltd to conduct its external review of the
performance of the Board and its Committees in 2025. Lintstock is
an advisory firm that specialises in board reviews and has no other
connection with the Company or individual Directors.
Methodology
Scoping and tailoring
June — July 2025
The scope and objectives of the review were agreed following a briefing meeting with Lintstock.
Lintstock collaborated with the Chair and the Company Secretary to design a bespoke line of enquiry
tailored to the business needs of the Company.
As well as covering core aspects of governance such as information, composition and dynamics,
thereview considered people, strategy and risk areas relevant to the performance of the Group.
Thereview had a particular focus on the following areas:
• long term Board composition priorities;
• opportunities to refine the Board’s annual cycle of work; and
• the Board’s oversight of Safestore’s Group strategy.
Completion of surveys
July — August 2025
Board members completed surveys assessing the performance of the Board and each of its
Committees. Each Director also completed a self-assessment questionnaire addressing their
ownperformance.
Analysis and delivery of reports
August 2025
Lintstock analysed the findings from the surveys and delivered a focused report documenting
thefindings, including a number of recommendations to increase effectiveness.
Board discussion
September 2025
Lintstock’s findings were shared with the Board and then discussed at the September Nomination
Committee meeting. Actions were agreed for implementation and monitoring.
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OVERVIEW
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Key findings
Lintstock found that the Board engaged well with the Board review
process, with the Directors taking the opportunity to reflect on the
Board’s priorities for the coming year.
Lintstock observed that the Directors were well aligned on key
priorities and demonstrated a strong commitment to close
engagement with the business. The Chairman’s management of
meetings, with the assistance of the Company Secretary, received
particularly positive feedback, and the Board was seen to benefit from
a strong composition that is well aligned with Group’s strategy.
The review identified a number of priorities for the Board, including:
• continuing to oversee the delivery of the strategy, refining the
cadence of Board strategy discussions as necessary;
• further enhancing the Board’s engagement with management,
including opportunities for informal engagement; and
• maintaining focus on succession planning and talent management.
The review included a comparison of the Board’s performance
against the Lintstock Governance Index, drawn from over 200 of
Lintstock’s recent mandates. This provided a balanced view of the
Board’s strengths and priorities, placing its performance into context.
Succession planning
Succession planning represents a fundamental responsibility of the
Committee and is addressed alongside related considerations such
as reviewing existing skills and experience, promoting diversity,
evaluating length of service, boardroom dynamics, and both Board
and Committee composition. The Committee employs a three-horizon
framework for succession planning. The short term horizon focuses
on contingency measures for unforeseen departures or changes
in Board composition. Medium term planning evaluates the natural
rotation of Directors, enabling proactive preparation for anticipated
events such as retirements and assessments of independence. In
this context, the Committee determines which skills and experiences
may be needed as Directors rotate off the Board, while ensuring
appropriate Committee size and composition and fostering diversity
of thought. The long term horizon is aligned with the strategic
direction of the business, ensuring that succession planning supports
the organisation’s ongoing objectives.
Directors standing for election and re-election
In accordance with the Company’s Articles of Association and
the relevant provisions of the Code, all Directors are scheduled to
stand for re-election at the Company’s 2026 AGM. Following both
the annual Board performance evaluation and individual Director
assessments, I can confirm that each Director subject to re-election:
• continues to fulfil their responsibilities as an effective member of
the Board;
• remains dedicated to their role and possesses sufficient time to
perform their duties; and
• demonstrates the requisite skills, knowledge, and experience
necessary for the proper execution of their responsibilities and for
contributing to the Board’s effective operation.
The Board, on the advice of the Committee, recommends 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 76 and 77.
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
14 January 2026
Nomination Committee report continued
Safestore Holdings plc | Annual report and financial statements 2025
86
Jane Bentall
Chair of the Audit Committee
Membership
The Audit Committee is composed exclusively of independent Non-
Executive Directors. Following a review of Committee composition
as part of the 2024 Board and Committee evaluation, the Nomination
Committee recommended to the Board that Delphine Mousseau be
appointed as a Committee member. Delphine Mousseau joined the
Committee in May 2025. Members have been selected to ensure a
broad spectrum of financial and commercial expertise necessary to
fulfil the Committee’s duties and responsibilities, with a designated
financial expert identified in accordance with the Code.
All members actively contribute to the Committee’s work, offering
a well-rounded mix of financial expertise, risk management
skills, commercial insight, and experience within multi-national
organisations. This collective competence, combined with a thorough
understanding of the Company’s operations, is recognised by the
Board as essential for effective governance. The Committee provides
appropriate scrutiny, challenge, and guidance to management, while
independent judgement remains fundamental to its role – particularly
in evaluating management activities and the assurances from both
internal audit and external auditors. To ensure continued relevance
and sector-specific knowledge, Non-Executive Directors receive
regular updates regarding business developments, regulatory
changes, financial reporting standards, and accounting issues.
TheCommittee’s performance was reviewed during the 2025 Board
evaluation, summarised on pages 85 and 86, which confirmed that
the Committee functions effectively, demonstrating thoughtful, clear,
andrigorous approaches to key matters.
Meetings held in 2024/25
Members of the Committee during the year ended
31October 2025
Number of
meetingsheld
during tenure
during the year
Number of
meetings
attended
Jane Bentall (Chair)
Avis Darzins
Delphine Mousseau*
Gert van de Weerdhof
Note:
* Delphine Mousseau was appointed to the Audit Committee on 15 May 2025.
Key objectives
The provision of effective governance over the appropriateness
of the Company’s financial reporting to safeguarding shareholder
interests and strengthening stakeholder confidence, achieved through
monitoring and scrutinising the performance of both internal audit
arrangements and the external auditor, while exercising oversight of
the Company’s system of internal control to assure robust governance
for the Board.
Responsibilities
The Board has established terms of reference for the Audit
Committee, which are accessible on the governance section of
the Group’s website, www.safestore.com, under ‘Governance
documents’. These terms outline the framework for the Committee’s
activities throughout the year and can be summarised as providing
oversight of the following areas:
• appropriateness of the Company’s external financial reporting;
• relationship with, and performance of, the external auditor;
• the Group’s internal audit arrangements and the risk management
framework; and
• the Group’s internal control framework.
How the Committee operates
The Audit Committee convened five times throughout the year.
Fourmeetings were in accordance with its established meeting
schedule and there was an additional ad hoc meeting in May 2025.
The agendas for these regular meetings were aligned with key dates
in the Group’s financial calendar. In addition to Committee members,
the following individuals were invited as guests:
• the Chief Financial Officer and Group Financial Controller;
• the Chairman of the Board and Chief Executive Officer;
• the Head of Internal Audit;
• relevant senior managers, including those overseeing 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.
For each meeting this year, the Committee also held separate closed
sessions with Deloitte, during which management was not present.
The Committee assessed
whether suitable accounting
policies had been adopted
and whether management
had made appropriate
estimates and judgements.”
Audit Committee report
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FINANCIAL STATEMENTS
OVERVIEW
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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;
• debated and decided upon the appropriateness of adopting the going concern basis of accounting for the full
and half year financial results and the Company’s viability statement;
• undertook reviews of significant issues, key sources of estimation uncertainty, and critical judgements which
were made in preparing the 2025 half year results and the Annual Report and Financial Statements;
• considered and approved the approach for performing the valuations of investment properties for the Annual
Report and Financial Statements and interim results;
• tested and scrutinised the conclusions and assessments made by the valuer regarding the property portfolio’s
appraisal and challenged where appropriate;
• reviewed the integrity of the financial statements and announcements relating to the financial performance and
governance of the Group at the year end and half year;
• reviewed the principal judgemental accounting matters affecting the Group based on reports from both the
Group’s management team 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
• balanced those Alternative Performance Measures with IFRS standard measures to ensure that shareholders
and stakeholders are provided with a fair, balanced and understandable overview of the Company’s performance.
External auditor • reviewed and approved the audit plan with the external auditor, and ensured 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; and
• approved auditor remuneration.
Internal audit
arrangements
• set the scope of the recruitment process and approved the appointment of a new Head of Internal Audit;
• reviewed the effectiveness of the Group’s internal controls and disclosures made in the Annual Report and
Financial Statements;
• reviewed internal audit reports and tracked progress against the internal audit plan 2024/25;
• approved the internal audit plan for 2025/26; and
• assessed the effectiveness and independence of the internal audit team.
Governance and risk • held closed sessions with the external auditor;
• reviewed and updated a formalised non-audit services policy;
• 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;
• reviewed the Company’s REIT compliance and tax strategy;
• oversaw the finance system transformation plans; and
• monitored the adequacy and 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, fire and flood, and climate change risk.
Appropriateness of the Company’s external
financial reporting
Financial reporting and significant financial judgements
The Committee evaluated the appropriateness of the accounting
policies adopted and assessed whether management’s estimates
and judgements were suitable. It reviewed accounting documentation
prepared by management, which detailed the primary financial
reporting judgements made during the year.
The Committee considered reports from the external auditor on both
the full year and half year results, which outlined any matters arising
from the year-end audit and half year review processes.
The Committee focused particularly on issues deemed material due
to their impact on the Group’s results and remuneration, especially
where they involved significant complexity, judgement, or estimation
by management.
Audit Committee report continued
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Except for property valuation, as described below, the Committee
concluded that there were no significant levels of judgement present
in the financial statements.
Property valuations
The Committee identified the valuation of the investment property
portfolio as the principal area of estimation uncertainty during
its review of the financial statements. Although this valuation is
performed by independent external valuers, it represents a significant
aspect of the financial results and involves considerable complexity,
judgement, and estimation. In addition to overseeing comprehensive
management procedures and process reviews, the Committee
engaged with the Group’s valuers to evaluate the valuations, assess
key judgements, and address any notable disagreements with
management. This year, the Committee scrutinised investment
properties under construction, discount rates, assumptions regarding
rental growth, stabilised occupancy levels, and factors relating to
the macro-economic and inflationary environment as well as interest
rates, to determine the appropriateness of the adopted assumptions.
The Committee also examined the independence of the valuers,
their quality control measures, including peer partner reviews, and
their qualifications to conduct these valuations, ensuring all were
satisfactory. Management has established procedures to thoroughly
review the external valuations. Furthermore, the external auditor
utilises valuation experts to perform an in-depth analysis of the key
assumptions underlying the investment property valuations and
presents its findings to the Committee.
Further details on the background, methodology, and judgements
involved in valuing investment properties are provided in note 13 to
the financial statements.
Financial statements
The Committee has reviewed and found management’s presentation
of the financial statements to be appropriate. Management has
confirmed that it is not aware of any material misstatements, and
the auditor has reported no material misstatements identified during
its audit. The Committee considers the judgements and estimates
applied by management to be reasonable, with all necessary
disclosures appropriately reflected in the financial results. Following
a thorough examination of management’s reports and discussions
with both valuers and the auditor, the Committee is confident that
the financial statements comprehensively address key judgements
and critical estimates, in terms of both reported figures and required
disclosures. Furthermore, the Committee is assured that the
processes employed to determine asset and liability values have
undergone proper scrutiny and are sufficiently robust.
Fair, balanced and understandable assessment
At the request of the Board, the Committee reviewed whether the
Annual Report and Financial Statements was fair, balanced, and
understandable, and whether it included sufficient information for
shareholders to assess the Company’s position, performance,
business model, and strategy.
The Committee informed the Board that, in its view, the Annual
Report and Financial Statements, when considered as a whole, is
fair, balanced, and understandable. In making this assessment, the
Committee took into account the review and confirmation processes
related to the Annual Report and Financial Statements, as well as
considerations regarding going concern and viability.
The Committee received and provided feedback on a draft version
of the Annual Report and Financial Statements. In conducting these
processes, key factors included ensuring consistency between the
financial results and the narrative presented in the strategic report
section of the Annual Report. The Committee noted that Alternative
Performance Measures not defined under IFRS, or ‘non-GAAP’
measures, align with management’s approach to evaluating
the Group’s financial performance. The balance between these
measures and IFRS measures was also assessed to determine if they
provide shareholders and stakeholders with a fair, balanced, and
understandable overview of the Company’s 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 44.
Relationship with, and performance of, the
external auditor
Annual auditor assessment
During the year, the Committee reviewed the effectiveness of the
external audit process and audit quality. To evaluate the external
audit, the Committee received reports from both the external auditor
and management concerning the audit process, quality procedures,
and the handling of key judgements. The Committee also assessed:
• the arrangements in place to ensure the external auditor’s
independence and objectivity;
• the qualifications and expertise of the audit team;
• the quality and scope of the audit plan and related reporting;
• the content and structure of the formal audit report to shareholders;
• the approach used by the auditor in addressing key accounting and
audit judgements; and
• the external auditor’s comments regarding recommendations for
control improvements.
The Committee gathered feedback from members of the finance
team, senior management, and Directors about the audit process and
the audit partner’s experience. This input indicated that the auditor
met the requirements for service provision, displayed knowledge
of the Company and industry, and maintained independence
and objectivity during the audit. The auditor continued to fulfil its
responsibilities and provided appropriate challenge of management.
External auditor objectivity, independence and non-audit work
The Audit Committee’s terms of reference specify its responsibility
for the formal policy governing the award of non-audit engagements
to the external auditor. The Committee has established formal
procedures to approve non-audit services, clearly outlining those
services for which the auditor will not be engaged. The policy also
identifies projects where the auditor may be appointed, subject
to defined conditions and pre-approval requirements. To maintain
auditor objectivity and independence, the external auditor is only
engaged for non-audit work related to tasks concerning half year
accounts. The Committee receives regular reports at its meetings
detailing all audit and non-audit fees payable to the external auditor,
including actual year-to-date fees and forecasts for the full year,
analysed by project and categorised accordingly.
During the current financial year, Deloitte LLP provided non-audit
services totalling £90,000 which covered a review of the half year
results and a minor procedure review in France. These services fall
within the 70% non-audit fee cap rules. It has been confirmed that,
due to appropriate safeguards, the nature of this work does not
compromise auditor objectivity or independence.
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OVERVIEW
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Relationship with, and performance of,
theexternalauditor continued
External auditor objectivity, independence
andnon-auditwork continued
The Committee maintains a policy requiring audit partner rotation
every five years to uphold the independence and objectivity of the
external auditor. Deloitte was appointed as external auditor for
the 2014 financial year. The initial lead audit partner retired after
completing the 2017 audit and the second lead audit partner retired
following the 2022 audit. Stephen Craig is now the third lead audit
partner, following his appointment in 2023. In 2024, Deloitte was
re-appointed as the Group’s statutory auditor by the Company’s
shareholders after a formal tender process was conducted.
Accordingly, the Committee confirms compliance with the Statutory
Audit Services for Large Companies Market Investigation (Mandatory
Use of Competitive Tender Processes and Audit Committee
Responsibilities) Order 2014. The next tender is due to be completed
prior to 2034.
Each year, the auditor is required to outline the measures
implemented to maintain objectivity and independence, particularly
when providing non-audit services. For the 2025 audit, Deloitte
affirmed its compliance with all relevant regulatory and professional
standards of independence. After reviewing these assurances
and evaluating Deloitte’s procedures to uphold independence, the
Committee determined that Deloitte’s independence remained intact,
despite non-audit fees incurred during the period.
Appointment or re-appointment of auditor
Following the successful completion of the audit tender process in
2024, the Committee recommended to the Board that Deloitte LLP be
retained as the Company’s auditor and proposed for re-appointment
by shareholders at the Annual General Meeting in 2025. Deloitte LLP
received more than 94.36% of votes in support of its re-appointment.
In assessing the effectiveness, independence, objectivity, and
expertise of the external auditor with respect to the financial year
ended 31 October 2025, the Audit Committee determined that
Deloitte delivered its audit responsibilities effectively. Accordingly,
theCommittee recommended to the Board that Deloitte be put
forward for re-appointment as external auditor for 2026.
Shareholders will be asked to approve resolutions to re-appoint
Deloitte as auditor, and to authorise the Directors to determine
its remuneration, at the Annual General Meeting scheduled for
18March 2026.
Group’s risk management and internal
control framework
The Board, including Audit Committee members, assessed the
adequacy of Safestore’s risk management framework and risk profile
in relation to the Company’s strategic objectives. The Board and
Committee are satisfied with management’s response to issues
identified by both internal and external audit functions. Consequently,
the Committee concluded that the Board has met its obligations
under the Code. Further details regarding risk mitigation activities can
be found in the principal risks section of the strategic report.
Safestore’s internal controls – including their design and operational
effectiveness – remain a central focus for the Group and are
continuously monitored by the Audit Committee through reports from
management, the internal audit function, and the external auditor. The
Committee, working in collaboration with management, has sustained
a comprehensive review of controls throughout the business and is
confident that the Company’s control environment remains strong.
Risks, uncertainties, and internal control processes relevant to the
Group are further discussed in the strategic report on pages 38 to 42.
The Audit Committee has initiated workstreams in relation to
Provision29 of the UK Corporate Governance Code, which will
become applicable to the Company for the financial year ending
31October 2027. In preparation, the Committee is collaborating
closely with management to establish the requisite processes,
controls, and reporting structures necessary to fulfil these
enhanced obligations. This proactive strategy underscores the
Group’s dedication to robust corporate governance and ensures
continuedcompliance with evolving regulatory standards.
Internal audit
The Audit Committee holds oversight responsibility for the
internal audit function, which conducts reviews of operational
and financial controls both at the Head Office and across store
locations. Additionally, the Committee has evaluated the Group’s
risk management framework and its integration with the internal
audit plan.
During the year, the Audit Committee approved the appointment
of a new Head of Internal Audit after a comprehensive selection
process. The selected candidate possesses extensive expertise in
risk management and internal controls and is expected to play a
key role in further strengthening the Group’s assurance framework.
The Committee anticipates close collaboration with the new Head of
Internal Audit to ensure the ongoing enhancement of the internal audit
function in accordance with best practices.
I will be in attendance at the Annual General Meeting on 18 March
2026 to address any enquiries regarding the activities of the
AuditCommittee.
Jane Bentall
Chair of the Audit Committee
14 January 2026
Audit Committee report continued
Safestore Holdings plc | Annual report and financial statements 2025
90
Laure Duhot
Chair of the Remuneration Committee
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
2025. It has proven to be another busy year for the Committee with
a significant proportion of our time spent developing our new 2026
Directors’ Remuneration Policy (the “Policy”). I was delighted to see
that the 2024 Directors’ remuneration report was positively received by
our shareholders, receiving 91.75% of votes in favour, and would like
to thank all our shareholders for showing their support at our Annual
General Meeting (“AGM”) held on 19 March 2025. The key activities
undertaken by the Committee during the year were as follows:
Area Activity
Determining the
2026 Directors’
Remuneration
Policy
The Committee undertook a remuneration review
during 2025 to assess whether the guiding
principles of the Policy remain fit for purpose and
to design the proposed Policy to be presented
forshareholder vote at the 2026 AGM.
Target setting
and outcome
determination
The Committee agreed annual bonus targets for
2025 and reviewed and approved the 2025 LTIP
grant and the associated performance conditions.
It also discussed and approved Executive Director
and senior manager remuneration outcomes
for 2025 including measuring the performance
outcomes of the relative TSR element of the 2022
LTIP award.
2025
salary increases
The Committee approved the 2025 salary
increase for senior managers alongside the wider
workforce salary budget.
Wider
workforce pay
The Committee considered wider workforce pay
policies and practices and feedback from the
workforce panel.
Pay gaps The Committee reviewed the gender and
ethnicity pay gap analysis results and signed off
corresponding actions, which included encouraging
our colleagues to disclose their ethnicity, and
addressing any barriers to them doing so.
Meetings held in 2024/25
Members of the Committee during the year ended
31October 2025
Number of
meetingsheld
during tenure
during the year
Number of
meetings
attended
Laure Duhot (Chair)
David Hearn*
Gert van de Weerdhof
Delphine Mousseau
Jane Bentall
Avis Darzins
Note:
* David Hearn was unexpectedly hospitalised before the scheduled Board and Committee
meetings in December 2024 and was unable to attend.
Overview of business performance
As set out in this Annual Report, we have delivered an encouraging
trading performance in the year, with revenue momentum building
through the financial year.
In the UK, we are encouraged by the improving trajectory with both
domestic enquiries and domestic customer occupied space up on a
like-for-like (“LFL”) basis and growing average rates and REVPAF.
We are pleased with the steady performance of our operations in
Paris despite weaker economic trading conditions. Our Expansion
Markets achieved continued strong LFL growth and new store
contribution.
Our cash-on-cash track record gives confidence in future returns
and our pipeline and current non-LFL stores are projected to deliver
incremental £35 million to £40 million of EBITDA on stabilisation.
In particular, we are expecting strongly accretive returns on the
ramp-up of stores and stabilisation, following the initial EPS dilutive
impact in the early years of trading, as occupancy increases. In
addition, our pipeline provides a significant runway for growth, with
a focus on metropolitan centres across the UK and Europe and our
technology and in-store capabilities enable us to maximise revenue
todrive returns.
This continued performance could not have been possible without our
people, whom we continue to proactively 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
and we are exceptionally proud that our commitment to colleagues was
recognised externally in 2021 and again in 2024 by the award of the
prestigious Investors in People (“IIP”) Platinum accreditation, valid for
threeyears. I am pleased to report that an average UK workforce salary
increase of 5.2% was provided to colleagues during the year.
The Company delivered a
strong operational performance
during 2024/25.”
Directors’ remuneration report
for the year ended 31 October 2025
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
91
Directors’ remuneration report continued
for the year ended 31 October 2025
Part A: Annual statement continued
Overview of business performance continued
2025 performance metrics
The highlights outlined earlier have translated into a solid year for
Safestore. Our 2025 performance can be summarised as follows:
• Group revenue of £234.3 million;
• opened our 200th store in November 2024;
• Adjusted Diluted EPRA Earnings per Share at 40.3 pence;
• proposed total dividend in respect of the year to 31 October 2025
up 1% to 30.70 pence per share;
• property pipeline at 31 October 2025 of 1.1 million sq ft of MLA;
• Group occupancy at 31 October 2025 stood at 78.1%, and total
occupancy was 6.67 million sq ft;
• continued progress made in relation to sustainability including
reduction of market-based absolute emissions by 16% year on year
(emissions intensity also below 2025 target); and
• achieved EPRA Gold Award status.
Remuneration outcomes for 2025
Annual bonus outcome
Targets for the 2025 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.
Notwithstanding the tough operating environment and the challenging
targets set by the Committee, the Company achieved adjusted EBITDA
1
of £137.1 million versus threshold of £134.2 million, meaning the
threshold performance level under the EBITDA measure was achieved.
The Committee determined that the strategic and operational measures
would pay out at 100% of maximum, reflecting the significant progress
achieved against key strategic priorities during 2025. Further details of
this assessment are provided on pages 106 to 107.
As such, the formulaic outcome for the 2025 Executive Director
bonus is 58.4%. 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; therefore, no adjustments have been made to the
formulaic outcomes.
In total, the overall bonus payout was 58.4% of maximum and 87.6%
of salary for both Executive Directors, versus a maximum opportunity
of 150% of base salary. In line with Policy, the bonus will be paid
in cash as it is below the 100% of salary threshold, above which
deferral applies.
Long Term Incentive Plans
2023 LTIP – performance measurement
The final level of vesting under the 2023 LTIP awards will be included
in the single figure of remuneration table for 2026 in next year’s
Annual Report on the basis that the TSR performance period, which
determines any multiplier or modifier to the base award, ends in
July 2026.
2022 LTIP – vesting outcome
In line with the estimated outcome set out in last year’s report, the
2022 LTIP lapsed in full. The Committee determined that the formulaic
vesting outcome was aligned with the Company’s underlying
performance and therefore no adjustment was required.
Note:
1 Adjusted EBITDA excludes all leasehold rent charges and non-recurring items and
is equivalent to the reported Underlying EBITDAR in the financial statements with
European results translated at the budget Euro exchange rate of 1.17. Also adjusted
to exclude profit from joint ventures and associates.
2026 Directors’ Remuneration Policy review
Our current Policy was approved by 97.40% of shareholders at our
General Meeting (“GM”) held on 12 July 2023. Under the Policy,
the Committee has begun to transition the remuneration package
to a more market-aligned, conventional structure, consisting of a
competitive salary, pension contribution rates in line with the wider
workforce, and incentive award levels (annual bonus and LTIP) each
within the market range for the respective role.
Accordingly, over the last two years the Committee has applied
increases to the CEO’s base salary alongside annual reductions in
the LTIP opportunity from 480% of salary in 2023 to 350% of salary
in 2025. Throughout this process the Committee has retained the
principle that the package should align with the FTSE 250 upper
quartile on a total remuneration basis, with salary positioned around
market median. The remuneration report received 90.50% and
91.75% of votes in favour at the 2024 and 2025 AGMs respectively.
As set out in this Annual Report, Safestore’s highly cash-generative
core portfolio, disciplined cost management, and strong balance
sheet provide a solid foundation for sustainable, long term value
creation. Despite difficult trading conditions, we continue to deliver
top line growth and the investments in our development programme,
which represents 11.8% of our FY 2025 closing MLA, are expected to
be highly accretive to Group earnings.
With a clear focus on operational efficiency, customer-centric
service, and expansion into high potential markets, we are confident
in our ability to deliver attractive returns and continued growth for
shareholders over the coming cycle to progress the Group towards
the top of the FTSE 250 index. It is in this context that the principles
ofour Policy remain as follows:
• to pay at the upper quartile of the FTSE 250 market on a total
remuneration basis for achievement of outstanding performance
with salary positioned around market median; and
• to maintain a culture where a significant portion of total remuneration
is based on driving financial performance by growing EPS and
maximising shareholder returns via stretching performance conditions.
Proposed amendments to Policy
To inform our review, we considered the latest proxy and shareholder
guidance as well as market practice and benchmarking data from the
FTSE 250 (all sectors excluding Investment Trusts) and the FTSE 350
Supersector Real Estate peer groups, consistent with the peer groups
that we have used in previous years. This ensures that the revised
Policy is grounded in robust market data, with a clear reference to our
sector, and reflects the expectations of our shareholders.
Taking account of the findings above and in line with the remuneration
principles, we set out details of the amendments proposed.
LTIP
The proposed Policy maintains our key principle of paying our
Executive Directors at the upper quartile of the FTSE 250 on a total
remuneration basis for achievement of outstanding performance. To
achieve this, there would either need to be an increase to base salary
or a change to variable remuneration opportunity. To retain the focus
on pay for performance, the Committee therefore prioritised the latter.
Within variable pay, the Committee considered an increase to the
bonus quantum but on balance did not feel that would be appropriate
as the LTIP has stronger alignment with the shareholder experience.
The Committee therefore decided to meet the upper quartile
principle through the LTIP which is achieved through a reduction
from the current level of 350% to 325% of salary for the CEO. This
completes the commitment made to shareholders in 2023 to align
the CEO’s LTIP percentage more closely with prevailing market
practice. The modifier and multiplier components of the current LTIP
will be removed, aligned with our goal to simplify the remuneration
structure. The vesting of LTIP awards will continue to be subject to
the achievement of robust, stretching targets of a combination of
financial, strategic and returns-based performance measures. This is
consistent with the transition towards a package that is more market
Safestore Holdings plc | Annual report and financial statements 2025
92
aligned, both in terms of variable pay opportunity, and in terms of
the structure of the LTIP which is now consistent with a conventional
performance share plan with no modifier or multiplier components.
The CFO’s maximum LTIP award will be increased from 250% to
260% of salary to ensure that the CFO’s maximum total remuneration
aligns with the FTSE 250 upper quartile, in line with the principle
agreed by the Committee.
Shareholding requirements
The in-employment shareholding requirement will be set at 325% of
salary for the CEO and 260% for the CFO in line with the respective
LTIP opportunities and best practice. In line with standard market
practice and shareholder preferences as set out in the Investment
Association (“IA”) Principles of Remuneration, the post-employment
guideline will be set at the level of the in-employment shareholding
requirement (or actual shareholding at the date of cessation, if lower)
and will remain in place for two years. The requirement will continue
to exclude shares owned pre-18 March 2020 and awards vesting from
the 2017 LTIP. The CEO currently holds shares in excess of 47.8 times
his salary (as at 31 October 2025). The CFO will continue to build a
shareholding towards his requirement, following his appointment in
2024. The amendment also supports the Committee’s objective to
simplify the Policy where possible.
Bonus deferral
The Policy will introduce flexibility to reduce bonus deferral for
Executive Directors who have met their shareholding requirements,
while retaining robust malus and clawback provisions. In line with
the current Policy any bonus in excess of 100% of salary will be
held in shares (“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. Under the
new Policy, for Executive Directors that have met their shareholding
requirement, the Committee has flexibility to reduce, but not remove,
the deferred bonus element. At least half of any bonus in excess of
100% of salary will still be deferred. This approach reflects feedback
received during our shareholder consultation and is also in line with
the latest IA Principles of Remuneration and emerging FTSE practice,
and recognises that the CEO currently holds shares significantly in
excess of the shareholding requirement (47.8 times his salary as at
31October 2025).
No other amendments are proposed. We set out a summary of the
proposals in the at a glance section of this report and full details of the
Policy can be found on pages 113 to 122.
Implementation of the Policy for 2026
We set out below how the proposed Remuneration Policy is intended
to be implemented in 2026 for the CEO and CFO.
Annual bonus awards for FY 2026
In terms of incentive targets, the annual bonus will be based two-thirds
on Underlying EBITDAR (adjusted for budgeted exchange rates)
and one-third on strategic/operational measures. Targets will be
disclosed retrospectively as the Committee determines targets to be
commercially sensitive.
LTIP awards for FY 2026
The Committee recognises that, in the current challenging trading
environment, it is essential to prioritise financial performance and
shareholder returns over the next cycle. Accordingly, 80% of the total
FY 2026 LTIP awards will be determined by these measures with 40%
based on Adjusted Diluted EPRA EPS growth (“EPS”) and 40% based
on relative total shareholder return (“TSR”).
EPS remains a core financial metric, understood and valued by our
shareholders, and will be a key measure of the business performance
over the next three years. The EPS targets will be 2% p.a. growth
for threshold vesting (20% of maximum) and 6.5% p.a. growth for
maximum vesting. In determining this target range, the Committee
considered: Safestore’s three-year financial plan and market forecasts;
the challenging economic climate; the Company’s strategic goals
and priorities; planned investments and the expanded development
pipeline; the anticipated Underlying EBITDAR uplift from new store
openings, partially offset by higher interest costs; and previous
years’ results.
As we transition away from the TSR-based multiplier and modifier,
the Committee remains committed to retaining a robust shareholder
returns metric, consistent with shareholder preferences and prevailing
market practice. 40% of the award will therefore be based on relative
TSR, with 50% of the element measured against the constituents of
the FTSE 250 excluding Investment Trusts Index and the remaining
50% against the constituents of the FTSE 350 Supersector Real
Estate Index. Threshold and maximum payout will be delivered
for achieving median and upper quartile performance respectively
against both peer groups.
The Committee also acknowledges the importance of strategic
and operational metrics to the long term success of the business.
As such, the remaining 20% of the award will be based on the
achievement of key strategic and operational objectives. In recent
years, the focus has been on expanding the Company’s footprint,
mainly through organic growth, taking the opportunity of compelling
development opportunities, and this was used to reward participants
for continuing to invest in the asset base and to continue to increase
MLA, which are key drivers of future growth and shareholder value.
Given that the Board considers the MLA targets to be commercially
sensitive, they will be disclosed retrospectively.
Historically there has also been an assessment of ESG measures
for LTIP awards, as well as for the bonus. While ESG remains a top
priority for the Company, we believe that the annual bonus structure is
a more effective mechanism for driving ESG progress. This approach
allows us to respond dynamically to evolving technology guidance,
and to incentivise ad hoc initiatives that deliver impactful changes
in the near term. Embedding ESG into the LTIP, which operates
on a three-year cycle and can only focus on a few much broader
quantitative targets, is less impactful and can limit our ability to move
quickly and adapt to new opportunities or challenges. By keeping
ESG only as part of the bonus KPI, we also remove the potential for
rewarding twice for similar ESG targets, or for practices that are now
firmly embedded in the Company’s operations.
Given this, and the progress that has been made in these areas already
to date, ESG targets will not be included in the LTIP for FY 2026 with the
weighting allocated to ESG in the past instead allocated to the strategic
and operational measures. With the exception of the removal of the ESG
measures, this means that the proposed weightings of the measures for
the FY 2026 awards are broadly consistent with the current LTIP.
CFO salary
The Committee and the Board have been highly impressed with the
performance of Simon Clinton since his appointment as Chief Financial
Officer in April 2024. The CFO role at Safestore is a complex one.
Following our entry into the German and Italian markets, with new
joint venture partners, there are multiple local teams to manage, and
various tax jurisdictions to deal with, as well as debt and currency
hedging arrangements to put in place. During a difficult period for the
sector, Simon has exhibited excellent leadership of the finance function
and has been central to the identification of cost savings for the Group
which have helped to mitigate inflationary cost pressures and enabled
resilient performance over the year. Simon has played a key role in
M&A, for example in respect of our recent Italian transaction where
he was involved in underwriting the transaction and optimising its
funding strategy, leading negotiations with the sellers, and arrangement
of the joint venture agreements with new partners whilst building a
long term relationship with them. In addition, Simon has used his prior
experience to launch an internal review of all of Safestore’s financial
and reporting systems, in order to make the most of the latest technology.
As part of the review of the Policy the Committee noted that Simon’s
positioning relative to the market on a total remuneration basis was
materially below the principle of the FTSE 250 upper quartile agreed
by the Committee. Subject to approval of the Policy at the 2026 AGM,
the Committee therefore intends to apply an increase of 9.5% to his
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
93
Directors’ remuneration report continued
for the year ended 31 October 2025
Part A: Annual statement continued
CFO salary continued
salary which will be backdated to 1 November 2025. Together
with an LTIP award of 260% of salary as described previously, this
positions his maximum total remuneration in line with the FTSE 250
upper quartile, consistent with the principle for the Policy agreed by
the Committee. This increase also aligns the CFO’s salary with the
median of the FTSE 350 Supersector Real Estate Index which ensures
that the package remains competitive with Safestore’s direct peers
and recognises his position as an established CFO with experience
atboth private and listed companies in the sector.
The Remuneration Committee has not yet determined a salary
increase for the CEO for the year ending 31 October 2026 but it is
notcurrently expected to be above the level of the wider workforce.
Non-Executive Directors’ fees
The Executive Directors recommended to the Board that
Non-Executive Director and Chairman fees should rise by 3% from
1 May 2025, lower than the UK average workforce increase rate of
5.2%. As such, Non-Executive Director base fees have increased to
£65,803, Committee Chair fees have increased to £12,338, and the
Chairman’s fee has increased to £250,982.
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 25% participating across
all schemes. Participation in the LTIP continues to be robust, with
82 employees across seven countries receiving awards this year –
closely aligned with last year’s figure.
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,
representing the wider workforce, continue to engage directly with the
CEO on a wide range of subjects including remuneration. In addition,
the CEO also ran one virtual town hall session 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 exceptionally proud that our commitment to colleagues was
recognised externally in 2021 and again in 2024 by the award of the
prestigious Investors in People (“IIP”) Platinum accreditation, valid for
three years.
Since our last Diversity Pay Gap Report, we have remained
committed to embedding our strategy at the heart of our values –
promoting a strong, inclusive culture where every colleague feels
empowered to be their authentic self. We are delighted this is reflected
in our Investors in People survey where 85% of colleagues agree
Safestore values and respects individual differences. Our median
ethnicity pay gap is 7.9%. We are making progress in attracting more
ethnic minority colleagues into our stores, represented by lower
pay quartiles. Our mean gender pay gap remains relatively stable,
whilst our median gender pay gap shows more fluctuation at 9.1%.
Our median gender pay gap is below the national gender pay gap at
13.1%
1
. We also recognise that women are under-represented in some
industries from which we recruit and are actively working to attract
a more diverse talent pool through targeted recruitment efforts. Our
Equality, Diversity, and Inclusion Strategy is focused on building on
our existing strengths while identifying new opportunities to empower
all colleagues to confidently bring their authentic selves to work.
We have also published our CEO pay ratio for the seventh time in
line with the reporting regulations and the Committee notes that it
is higher than in the prior year, reflecting the inclusion of the annual
bonus which paid out at 58.4% of maximum.
Note:
1 Gender pay gap in the UK: 2024, ONS.gov.uk.
Planned activities for 2026
We set out below the activities which the Committee expects to
undertake next year:
• implement the new Policy if approved by shareholders at
the 2026 AGM;
• 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 final vesting outcome of the 2023 LTIP award and
assessing performance for the EPS, MLA, and ESG elements of the
2024 LTIP award; and
• review of wider workforce pay policies and practices and feedback
from the workforce panel.
Summary
We will be asking shareholders to vote in favour of our Directors’
remuneration report at the 2026 AGM, as well as the proposed
Directors’ Remuneration Policy as set out in this report. In developing
the proposed Policy, the Committee has listened to the feedback
received through the extensive shareholder engagement process
and is comfortable with the amended proposals as we believe that
they are in line with the best interests of Safestore and will incentivise
and retain the highly successful Executive Team which is critical to
executing our business strategy and driving long term creation of
value for shareholders. For example, the Committee initially proposed
to introduce the flexibility to reduce the bonus deferral to zero for
Executive Directors who have met their shareholding requirements;
however, in response to investor feedback, it has changed this to
a maximum reduction of up to 50% of the current deferral level. In
addition, the shareholding requirement levels were initially proposed
to align with FTSE 250 upper quartile market practice (at 300%
of salary for the CEO and 200% for the CFO) but they have been
increased to align with the LTIP opportunity levels in response to
investor feedback.
I would welcome any feedback or comments on this report or our
remuneration principles and Policy in general and look forward to
receiving any written questions ahead of the meeting. 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.
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 robust business it
remains today.
Approved by the Board on 14 January 2026 and signed on its
behalf by:
Laure Duhot
Chair of the Remuneration Committee
14 January 2026
Safestore Holdings plc | Annual report and financial statements 2025
94
Part B: Our remuneration at a glance
Ahead of the annual report on remuneration, we have summarised below the key elements of our proposed Policy and how we intend to
implement it in 2026 in line with the changes set out in the Remuneration Committee Chair’s annual statement on pages 91 to 94. We also
summarise the key remuneration outcomes for 2025 under our existing Remuneration Policy, which was approved at the GM held on 12 July 2023
and can be found in full on the Safestore website at www.safestore.co.uk.
Summary of our proposed Directors’ Remuneration Policy and planned implementation of Policy for 2026
Element Key features of proposed Policy Implementation for 2026
Executive Directors Frederic Vecchioli Simon Clinton
Base salary Reflects an individual’s responsibilities, experience and role. Base salary of £665,000.
(2026 increase to be
determined and to apply
from 1 May 2026.)
Base salary of £477,009.
(9.5% increase backdated
to 1November 2025,
subject to shareholder
approval of the
newPolicy.)
Benefits and
pension
All Executive Directors will receive no higher than the average
employer pension contribution rate received by the workforce.
Market-competitive benefits package provided.
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 Policy.
Annual bonus Maximum award equal to 150% of salary per annum.
Any bonus in excess of 100% of salary will be held in shares
(“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 Executive Directors that have met their shareholding
requirement, the Committee has flexibility to reduce this to a
minimum of 50% of any bonus in excess of 100% of salary.
Maximum opportunity of 150% of salary.
The annual bonus for 2026 will be based on two-thirds
Underlying EBITDAR and one-third strategic/operational
measures. There will be no payout 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 2026 targets
and their achievement will be disclosed retrospectively
in the 2026 Directors’ remuneration report. All other
elements of 2026 annual bonus operation will be in line
with the proposed Policy.
There is currently no intention to reduce bonus deferral
for 2026.
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 award will be 325% of salary for the
CEO and 260% for the CFO/other Executive Directors.
As set out in the Committee Chair’s statement, the CEO’s
award will be reduced from 350% of salary (equivalent to
a 218.75% of salary base award with a 1.6x multiplier) to
325% of salary (with no multiplier).
The CFO’s award will increase from 250% of salary
(equivalent to a 156.25% of salary base award with a
1.6x multiplier) to 260% of salary (with no multiplier).
Performance measures and targets are set out in the
following table.
Shareholding
guidelines
In-employment guidelines will be set at 325% of salary for the
CEO and 260% for the CFO/other Executive Directors.
The post-employment guideline will be set at the level of
the in-employment shareholding requirement (or actual
shareholding at the date of cessation, if lower) and will
remain in place for two years. The requirement will continue
to exclude shares owned pre-18 March 2020 and awards
vesting from the 2017 LTIP.
Will operate as per Policy.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
95
Directors’ remuneration report continued
for the year ended 31 October 2025
Element Key features of proposed Policy Implementation for 2026
Chairman 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: £250,982.
Non-Executive base fee: £65,803.
Committee Chair and SID fee: £12,338.
Non-Executive Director and Chairman fees were
increased by 3% from 1 May 2025, lower than the
UKaverage workforce increase rate of 5.2%.
2026 increase to be determined and to apply from
1May2026.
2026 LTIP performance measures and targets
The table below sets out the details of the performance measures and targets chosen in respect of the LTIP awards for the financial year
ending31 October 2026.
2026 performance measures and targets
Adjusted Diluted EPRA EPS growth (“EPS”) (40% weighting):
• Threshold (20% vesting) = 2% p.a. growth.
• Maximum (100% vesting) = 6.5% p.a. growth.
Straight-line vesting in between performance levels.
Relative total shareholder return (“TSR”) (40% weighting):
50% of the TSR element is measured against the constituents of the FTSE 250 Index excluding Investment Trusts and the remaining 50%
against the constituents of the FTSE 350 Supersector Real Estate Index.
• Threshold (20% vesting) = median performance of each peer group.
• Maximum (100% vesting) = upper quartile performance of each peer group.
Straight-line vesting in between performance levels.
Strategic/operational targets (20% weighting):
For 2026, the measure will be the aggregate net increase in Maximum Lettable Area (“MLA”) (includingnet increase in MLA for jointly-owned
stores in a joint venture where the Company has an option to buy its partner), over the three financial years ending 31 October 2028.
• 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.
Part B: Our remuneration at a glance continued
Summary of our proposed Directors’ Remuneration Policy and planned implementation of Policy for 2026 continued
Safestore Holdings plc | Annual report and financial statements 2025
96
Business performance and incentive outcomes in 2025
2025 annual bonus
KPI 2025 performance 2025 incentive outcome
Underlying EBITDA in 2025 Up 1.3% to £137.1 million.
Optimisation of performance
ofexisting portfolio
For details of performance see page 106.
Strong and flexible
capitalstructure
For details of performance see page 106.
Take advantage of selective
portfolio management and
expansion opportunities
For details of performance see page 107.
ESG For details of performance see page 107.
202 2 LTIP
KPI Performance
Incentive outcome
(%ofmaximum)
TSR growth over three years
to24 January 2025
Safestore = (40.5)%.
Median of:
• FTSE 250 Index excluding Investment Trusts = (13.9)%; and
• FTSE 350 Supersector Real Estate Index = (22.9)%.
0%
Key:
Threshold or below Threshold to target Target to maximum
The incentive outcome for the 2022 LTIP award is reported as in respect of the year ended 31 October 2024 for the purposes of the single
figure of remuneration but is shown here for completeness as the TSR performance period of the award was not complete at the time of
drafting last year’s report.
When combined with the nil vesting of the Adjusted Diluted EPRA Earnings per Share growth measure, as reported last year, the overall vesting
outcome was 0%. For completeness, the average cash-on-cash return for the 2022 LTIP was 10.8%, which exceeded the 8% underpin target.
2023 LTIP
The final level of vesting under the 2023 LTIP awards will be included in the single figure of remuneration table for 2026 in next year’s Annual
Report on the basis that the TSR performance period ends in July 2026.
The Committee is comfortable that the Policy operated as intended and that the overall 2025 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 5.2% during the year.
• Executive Director pension contributions continue to be aligned with those offered to the general workforce.
• At 25%, participation in our Sharesave scheme continues to reflect stable and typical engagement levels across the UK market.
• LTIP participation continues to be robust, with 82 employees across seven countries receiving awards this year – closely aligned
withlastyear’s figure.
• Safestore’s 2024 UK median gender pay gap is 9.1% and 2024 median ethnicity pay gap is 7.9%.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
97
Part C: Annual report on remuneration
The 2025 annual report on remuneration contains the details of how the Company’s Policy was implemented during the financial year ended
31 October 2025. An advisory resolution to approve this report and the Remuneration Committee Chair’s annual statement will be put to
shareholders at the 2026 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 below the various factors which make up our colleague value proposition:
Pay and benefits
• We pay all our colleagues above the over-21 National Living Wage
rate, regardless of their age. The average annual salary for our store
sales colleagues is £28,768, over £3,370 above the current National
Living Wage for an over-21 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 across our Sharesave
schemes is 25% of the eligible population.
• Under the 2025 LTIP, 82 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.
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-to-manager ratios.
• 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 five 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.
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 2025, we invested over 35,000 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, which
everyone is assessed against every six 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.
Directors’ remuneration report continued
for the year ended 31 October 2025
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98
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.
Alignment with Provision 40 of the Corporate Governance Code and Company strategy
The table below sets out how the proposed 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 is addressed in the proposed Remuneration Policy
Clarity This is 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 Taking on board shareholder feedback, we designed a new LTIP for our 2026 Policy, with no multiplier or performance
modifier, which aligns with standard market practice. This approach is well understood by shareholders, who inputted
on its construct throughout the extensive shareholder consultation process.
Risk Identified risks have been mitigated as follows:
• deferring a minimum of 50% of any bonus achieved above 100% of salary into shares and requiring a two-year
holding period for LTIP share awards help ensure that the performance related awards are sustainable and thereby
discourage short term behaviours;
• aligning any reward to the agreed strategy of the Company;
• reducing the awards or cancelling them through malus and clawback 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 Remuneration Policy on pages 113 to 122 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 proposed Policy, are sufficient.
Proportionality One of the key strengths of the approach of the Company to remuneration is the direct link between strategy and the
value received by Executive Directors.
Please see the schematic on the following page which sets out in detail the link between Company strategy and the
performance measures in the proposed incentive arrangements.
Alignment to culture 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 48.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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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 on on the previous page, the Committee
designed the incentive arrangements such that they were closely aligned with Company strategy as set out in the schematic below:
LTIP
Optimising the trading
performance of existing portfolio
Maintaining a strong and
flexiblecapital 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 and TSR relative to FTSE 250 and sector peers
All feed through to KPI = EBITDA growth
Annual
bonus
Strategic and
operational
Financial
Directors’ remuneration report continued
for the year ended 31 October 2025
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100
Pay relativities
CEO pay ratio
Our CEO-to-colleague pay ratios for 2025 are set out in the table below. We also provide the 2019–2024 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 54:1
Total pay and benefits: £24,866
Salary: £22,200
49:1
Total pay and benefits: £27,499
Salary: £22,700
36:1
Total pay and benefits: £37,270
Salary: £34,500
2024 Option A 22:1
Total pay and benefits: £27,626
Salary: £25,305
20:1
Total pay and benefits: £30,106
Salary: £24,800
16:1
Total pay and benefits: £38,934
Salary: £33,983
2025 Option A 44:1
Total pay and benefits: £29,588
Salary: £27,700
41:1
Total pay and benefits: £31,720
Salary: £26,400
32:1
Total pay and benefits: £40,251
Salary: £33,313
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 105. The remuneration figures for the
colleague at each quartile were determined as at 31 October 2025. Each colleague’s pay and benefits were calculated using each element
of their 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;
• one off recognition payment;
• overtime and extra pay; and
• Sharesave (no value has been included this year as there is no gain under awards maturing during FY 2025).
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.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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Part C: Annual report on remuneration continued
Pay relativities continued
CEO pay ratio continued
The Committee notes that the 2025 median CEO pay ratio is higher than in the prior year, reflecting the inclusion of the annual bonus which
paid out at 58.4% of maximum. By contrast, no annual bonus was payable in 2024 as threshold performance under the EBITDA measure was
not achieved. The 2025 figure does not include any LTIP awards as the 2023 LTIP will be included in the 2026 figure as described earlier in this
report. The 2024 figure includes the 2022 LTIP which lapsed, whereas the 2021 LTIP vested at 93.5%, meaning that the 2023 ratio was higher
than the 2024 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.
The Committee considers the median pay ratio to be consistent with pay and progression policies for UK colleagues.
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 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 Equality, 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.
We are proud to continue publishing our Diversity Pay Gap Report, which includes both ethnicity and gender data. We voluntarily report on
ethnicity pay because we believe this is an important step in advancing our diversity and inclusion journey.
Since our last Diversity Pay Gap Report, we have remained committed to embedding our strategy at the heart of our values – promoting a
strong, inclusive culture where every colleague feels empowered to be their authentic self. We are delighted this is reflected in our Investors
in People survey where 85% of colleagues agree Safestore values and respects individual differences. Our median ethnicity pay gap is 7.9%.
We are making progress in attracting more ethnic minority colleagues into our stores, represented by lower pay quartiles. Our mean gender
pay gap remains relatively stable, whilst our median gender pay gap shows more fluctuation at 9.1%. Our median gender pay gap is below
the national gender pay gap at 13.1%
1
. We also recognise that women are under-represented in some industries from which we recruit and
are actively working to attract a more diverse talent pool through targeted recruitment efforts. Our Equality, Diversity, and Inclusion Strategy
isfocused on building on our existing strengths while identifying new opportunities to empower all colleagues to confidently bring their
authentic selves to work.
Note:
1 Gender pay gap in the UK: 2024, ONS.gov.uk.
Remuneration justification
The Committee is comfortable that the internal and external pay relativity reference points provide justification that the proposed Policy
isappropriate.
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: 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 Board, which the Remuneration Committee considered when
determining the remuneration levels for Executive Directors. 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 one virtual town hall session 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 aligns with the wider Company pay policy.
Colleague survey: Although no Investors in People colleague survey was conducted in 2025, our management team and the workforce advisory
panel continued to review progress against the 2024 recommendations, assessing the impact of improvements made and identifying further
actions to support leadership engagement.
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
2025 AGM vote on annual report on remuneration 164,559,762 91.75 14,802,248 8.25 2,215,242
2023 GM vote on Remuneration Policy 178,517,273 97.40 4,769,130 2.60 2,815,021
The Committee was delighted to see that the 2023 Remuneration Policy, and its implementation, 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, and for showing their overwhelming support.
This year, the Committee undertook another extensive shareholder engagement exercise on the proposed 2026 Remuneration Policy. Further
details are set out on page 122.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
102
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 2015 through to
31October 2025. 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 Safestore’s
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 2015 onwards (see right-hand scale).
Total shareholder return and Adjusted Diluted EPRA (“ADE”) Earnings per Share (pence)
Chief Executive Officer pay over the last ten years
The table below sets out the total single figure of remuneration, the annual bonus payout as a percentage of maximum and the LTIP vesting
level as a percentage of maximum for the Chief Executive Officer over a ten-year period.
Oct 2016 Oct 2017 Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022 Oct 2023 Oct 2024 Oct 2025
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)
1,481 1,728 1,719 1,134 1,108 13,020 8,385 1,355 614 1,299
Annual bonus
payout (% of max)
100% 82% 81% 91% 100% 100% 100% 0% 0% 58.4%
LTIP earned
(%ofmax)
100% 100% 100% n/a n/a 100% 100% 93.5% 0% n/a
ADE EPS (pence)
500
400
300
200
100
0
60
50
40
30
20
10
0
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 31/10/2024 31/10/2025
Safestore Holdings plc FTSE 250 Index FTSE 350 Supersector Real Estate Index ADE EPS
TSR value (£)
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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Part C: Annual report on remuneration continued
Total shareholder return and Chief Executive Officer pay over the last ten years 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 Group on a full-time equivalent basis.
% change from 2024 to 2025 % change from 2023 to 2024 % change from 2022 to 2023 % change from 2021 to 2022 % change from 2020 to 2021
Base
salary/
fees Benefits
Annual
bonus
Base
salary/
fees Benefits
Annual
bonus
Base
salary/
fees Benefits
Annual
bonus
Base
salary/
fees Benefits
8
Annual
bonus
Base
salary/
fees
1
Benefits
Annual
bonus
F Vecchioli (CEO)
10
17.5% 1.0% n/a 21% 4% n/a 5% 3% (100%) 4% (3%) 3% 3% n/a 5%
S Clinton (CFO)
9
1.2% (1.5%) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
D Hearn
(NE Chairman)
2
3.7% n/a n/a 5% n/a n/a 12% n/a n/a 10% n/a n/a 19% n/a n/a
G van de
Weerdhof (NED)
3
3.7% n/a n/a 5% n/a n/a 5% n/a n/a 14% n/a n/a 175% n/a n/a
L Duhot (NED)
4
3.7% n/a n/a 5% n/a n/a 15% n/a n/a n/a n/a n/a n/a n/a n/a
D Mousseau (NED)
5
3.7% n/a n/a 5% n/a n/a 5% n/a n/a n/a n/a n/a n/a n/a n/a
J Bentall (NED)
6
16.7% n/a n/a 29% n/a n/a 127% n/a n/a n/a n/a n/a n/a n/a n/a
A Darzins (NED)
7
3.7% n/a n/a 515% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Colleague pay 5.2% n/a n/a 8.9% n/a n/a 8.5% n/a (100%) 6.9% n/a 8.8% 4.2% n/a 20%
Notes:
1 The increases in 2021 to Non-Executive Director fees are a result of the increase to the base fee and Committee chairship 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. J Bentall was appointed Senior Independent Director
and Chair of the Audit Committee on 13 March 2024.
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 2024 only.
9 S Clinton was appointed as CFO on 22 April 2024 so received a pro-rated remuneration for 2024.
10 F Vecchioli salary was rebased in November 2024 following shareholder consultation to align fixed pay to a more market-competitive position allowing a corresponding reduction
in LTIP award levels to achieve a more ‘normalised remuneration structure’.
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
1
2025 2024 % change
Colleague costs (£’m) 37.2 30.9 20.4%
Distributions to shareholders in the form of shareholder dividends and share buybacks (£’m) 66.6 65.9 1.1%
Note:
1 The above figures are taken from notes 26 (Employees and Directors) and 9 (Dividends per share) to the financial statements.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
104
Executive Director remuneration for the year ended 31 October 2025
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
1
£’000
Annual
bonus
2
£’000
Long term
incentives
3,4
£’000
Pension
5
£’000
Other
£’000
Total
£’000
Total fixed
remuneration
£’000
Total variable
remuneration
£’000
F Vecchioli (CEO)
2025 665 25 582 0 27 0 1,299 717 582
2024 566 25 0 0 23 0 614 614 0
S Clinton (CFO)
6,7
2025 430 25 418 0 18 0 891 473 418
2024 273 17 0 0 11 0 301 301 0
Notes:
1 Taxable benefits comprise a car allowance and private medical insurance.
2 No portion of the 2024 or 2025 bonus figures have been deferred into restricted shares as the total bonus is below 100% of salary for both years which is the threshold level for
any bonus deferral.
3 No value for the 2023 LTIP award is included in the single figure table for the year ended 31 October 2025 because the relative TSR performance period which determines any
multiplier or modifier to the base award does not end until July 2026. Any value vesting in respect of this award will be included in the single figure table in respect of the year
ended 31 October 2026.
4 The 2024 figure is the value of the 2022 LTIP as at the vesting date, 25 January 2025. The 2022 LTIP lapsed in full. As such there is no amount 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 Director participates in a Group defined benefit or final
salary pension scheme.
6 Simon Clinton joined Safestore on 11 March 2024 and was appointed to the role of CFO on 22 April 2024. His remuneration shown above for 2024 is that earned from 11 March 2024,
and as such includes payments made in respect of time before his formal appointment to the Board. All payments were made consistent with the approved Remuneration Policy.
7 In line with Company practice, annual bonuses are paid based on the individual’s salary at the date of payment. The figure in the table is therefore based on the CFO’s proposed
salary of £477,009 which will be backdated to 1 November 2025, subject to approval of the Directors’ Remuneration Policy at the 2026 AGM.
Annual bonus outcomes for the financial year ended 31 October 2025 (audited)
For 2025, the Executive Directors had a maximum annual bonus opportunity of 150% of salary. For each Executive Director, the 2025 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.
Notwithstanding the tough operating environment and the challenging targets set by the Committee, the Company achieved adjusted EBITDA
1
of £137.1 million versus threshold of £134.2 million, meaning the threshold performance level under the EBITDA measure was achieved.
As such, the achievement of the strategic/operational measures was assessed by the Remuneration Committee as the financial gateway of
outperforming the threshold adjusted EBITDA target was met. The table below provides information on the targets for each measure, actual
performance 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
1
Two-thirds £134.2m £139.1m £141.9m £137.1m 37.6% 37.6% 250 37.6% 179
Strategic/
operational
measures
One-third Objectives based on
strategic/operational
See below 100% 50.0% 332 50.0% 239
Total bonus achieved in 2025 87.6% 582 87.6% 418
Note:
1 Adjusted EBITDA excludes all leasehold rent charges and non-recurring items and is equivalent to the reported Underlying EBITDAR in the financial statements with European
results translated at the budget Euro exchange rate of 1.17. Also adjusted to exclude profit from joint ventures and associates.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
105
Part C: Annual report on remuneration continued
2025 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 over time 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 2025 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.
In 2024 we were proud to achieve the Investors in People (“IIP”) Platinum accreditation –
the highest level of recognition – for the second time. This accolade, which is valid for three
years, reflects our commitment to creating a high performing, inclusive workplace where
colleagues feel valued and empowered.
Highlights included:
• exceeding our target to achieve a leadership engagement score above 80%, with an
average score of 84% across leadership-related IIP questions;
• continuing to prioritise the health and wellbeing of our colleagues and our customers;
• delivering over 35,000 hours of training across the Group, over 40 hours of training per
colleague; and
• making 49 internal promotions across the Group in FY 2025.
Enhance website
performance to drive
new lets and marketing
spend in line with
budgeted expectations.
Highlights included:
• completed rebuild of all Group websites on next generation supported platform;
• completed integration of new payment platform to support deployment of online
booking and invoice settlement across all markets;
• developed multiple quote flows and ability to switch approach based on commercial
imperatives; and
• developed ability to deliver ‘smart’ personalised deals – in testing.
Leverage Group
knowledge, experience
and resources to
improve productivity
and drive efficiencies.
Highlights included:
• further improved data-driven insights and analytics, to assist with commercial decision
making;
• strengthened our AI team, hiring three in-house data scientists and a data engineer in
order to optimise application of AI where beneficial;
• continued expansion of acquisition teams to grow store portfolio;
• successful integration of our Italian joint venture has standardised key processes,
strengthened people support, and upgraded systems;
• integrated 24/7 external cybersecurity monitoring and response;
• multi-lingual learning management system deployed to deliver required training across
the Group; and
• integration with new payment partner to reduce friction and offer localised payment
options for new and existing customers across Europe.
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:
• new US Private Placement (“USPP”) of €70 million drawing down on 3 December 2024
and due to be repaid in December 2032;
• new €77.5 million five-year term loan together with interest rate swap;
• dynamic use of financing in different currencies, using the natural hedge of Euro-
denominated assets and income to reduce overall interest cost for the Group;
• Group leverage was below the Group’s strategic targeted level of an LTV ratio between
30% and 40% (28.1% for 2025); and
• the full year dividend for the year ended 31 October 2025 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.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
106
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 two 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.
Entered into a joint venture with the Nuveen group to acquire the EasyBox business in Italy.
Alongside ten existing stores, the acquisition included two turn-key developments which
opened in 2025.
Acquired new development opportunities in the UK, Spain, France and the Netherlands, in
addition to opening new stores and completing store extensions in various locations.
Highlights included:
Redevelopments and extensions:
• France – Paris, Pyrenees
New developments:
• UK – London, Lea Bridge
• UK – London, Walton
• Spain – Madrid, North East (Barajas)
• Spain – Madrid, North East (Carabanchel)
• Spain – Pamplona
• Spain – Barcelona, Central 2 (Manso)
• France – Paris, East 1 (Noisy-le-Grand)
• France – Paris, West 3 (Mantes-Buchelay)
• France – Paris, North West 1 (Taverny)
• France – Paris, La Défense
• Netherlands – Randstad (Amsterdam)
• Netherlands – Randstad (Utrecht)
• Belgium – Brussels (Zaventem)
We have a total pipeline of 20 developments and extensions opening in FY 2026 and
beyond which is expected to add a total of 1.1 million sq ft, representing 11.8% of portfolio
MLA as at 31 October 2025. This includes the two new stores which had already opened
as at the date of this report. Our property pipeline summary can be found on page 33.
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 2024;
• market-based absolute emissions 16% lower year on year (emissions intensity also
below 2025 target);
• gas removed from a further five UK stores. On track for our 2030 target to remove gas
use entirely;
• all new stores opened achieved minimum EPC rating of B;
• maintained 4.5/5 or equivalent ratings on all relevant customer service platforms for all
markets;
• maintained Feefo Platinum Trusted Service award for Safestore UK; and
• external recognition of ESG efforts and disclosures: EPRA Sustainability BPR Gold
Award, GRESB Public Disclosure A, and MSCI ESG ‘AA’.
Our strong wellbeing foundation has enabled us to develop a strategy setting out our
approach to further support diversity and inclusion at Safestore. Our Equality, 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.
The Committee assessed that 50% of base salary (or 100% of maximum) of the strategic/operational objectives had been achieved for 2025.
In total, the overall bonus payout was 58.4% of maximum and 87.6% of salary for both Executive Directors, versus a maximum opportunity of
150% of base salary. In line with Policy, the bonus will be paid in cash as it is below the 100% of salary threshold above which deferral applies.
In determining the payouts under the annual bonus plan for the Executive Directors, the Committee has been mindful not only of the formulaic
outcome against the targets set, but also of the underlying performance of the business. On this basis, the Committee felt comfortable that the
formulaic bonus outcome reflected the individual Executive Director and Company performance. As a result, the Committee determined that no
overriding discretion will be applied to the bonus outcome.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
107
Part C: Annual report on remuneration continued
2025 annual bonus outcomes: strategic objectives continued
LTIP awards included in single figure for the year ended 31 October 2025 (audited)
No value for the 2023 LTIP award is included in the single figure table for the year ended 31 October 2025 because the relative TSR
performance period which determines any multiplier or modifier to the base award does not end until July 2026. Any value vesting in respect of
this award will be included in the single figure table in respect of the year ending 31 October 2026.
The three-year performance period for the relative TSR element of the 2022 LTIP ended on 24 January 2025; relative TSR accounts for one-third
of the award with 50% of the element measured against the constituents of the FTSE 250 Index excluding Investment Trusts and the remaining
50% against the constituents of the FTSE 350 Supersector Real Estate Index.
Safestore’s TSR growth was down 40.5% over the three-year performance period and was below the median of the FTSE 250 Index excluding
Investment Trusts peer group (down 13.9%) and below the median of the FTSE 350 Supersector Real Estate Index (down 22.9%), which equates
to 0% vesting. Additionally, the Committee confirmed that the cash-on-cash return underpin had been satisfied as at 31 October 2024. 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
(13.9%) (23.7%) (40.5%) 0% (22.9%) (15.0%) (40.5%) 0%
Therefore, no shares vested under the 2022 LTIP.
The Committee determined that the formulaic vesting outcome was aligned with the Company’s underlying performance and therefore no
adjustment has been made. As the 2022 LTIP lapsed in full, there was no question of any windfall gains having been received and therefore
noadjustment was required. The Executive Directors’ awards are also subject to a two-year post-vesting holding period.
2024 figures
Name
Number of
2022 LTIP
awards granted
Number of
2022 LTIP awards
estimated to vest
Estimated number of
2022 LTIP dividend
equivalent shares
Value of
2022 LTIP awards
estimated to vest
Value attributable to
share price growth
F Vecchioli (CEO) 71,645 — — — —
S Clinton (CFO) n/a n/a n/a n/a n/a
LTIP awards granted in the year ended 31 October 2025 (audited)
LTIP awards were granted on 20 January 2025 to the CEO and CFO. As set out in the Remuneration Committee Chair’s statement, the
CEO’s base award had a face value of 218.75% of base salary and the CFO’s base award had a face value of 156.25% of base salary. The
base awards are subject to a maximum multiplier of 1.6x such that the overall maximum awards were 350% and 250% of salary, respectively.
Noconsideration was paid for the grants which were structured as a nil-cost option. The LTIP awards will vest on the third anniversary of their
award dates. Once vested, the LTIP awards will normally be exercisable until the day before the tenth anniversary of the award date and are
subject to a two-year holding period commencing on vesting.
Name Role
Base salary at
date of grant
Face value of
2025 LTIP award
(% of base salary)
Share
price
Face value of
2025 LTIP award
Face value at
minimum vesting
1
Number of shares
granted under
nil-cost option
2,3
F Vecchioli CEO £665,000 350% £6.24 £2,327,500 £189,109 372,995
S Clinton CFO £425,000 250% £6.24 £1,062,500 £86,328 170,272
Notes:
1 65% of the base 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 the share price as shown in the table above, being the closing share price on the dealing day immediately
before the date of grant.
3 Dividend equivalents will be payable on vested shares.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
108
Performance measures and targets:
• Base award:
• 65% Adjusted Diluted EPRA EPS growth over three financial years ending 31 October 2027:
• Threshold (20% vesting) = 2% p.a. growth.
• Maximum (100% vesting) = 6% p.a. growth.
• Straight-line vesting in between performance levels. The EPS target range was set to recognise the challenging business environment in
which the Company is operating, lower internal forecasts and external consensus estimates for future growth.
• 25% strategic/operational measures:
• For 2025, the measure will be the aggregate net increase in Maximum Lettable Area (“MLA”) over three financial years ending 31
October 2027:
• 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 two measures for 2025 with equal weighting:
• 1. EPC ratings of developments and refurbishments at A or B completed during the three financial years ending 31 October 2027:
• 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. Greenhouse gas emissions intensity for the financial year ending 31 October 2027:
• Threshold (0% vesting): reduction to 0.80 kg CO
2
/m².
• Target (50% vesting): reduction to 0.775 kg CO
2
/m².
• Maximum (100% vesting): reduction to 0.75 kg CO
2
/m².
• Straight-line vesting in between ESG performance levels.
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 or equal to 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.
TSR is measured over a three-year period ending on 19 January 2028.
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 occurred.
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.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
109
Part C: Annual report on remuneration continued
Annual bonus – deferred bonus restricted share awards made in the year ended 31 October 2025
On the basis that no bonus was earned in respect of the year ended 31 October 2024, no deferred bonus restricted shares were awarded.
Operation of Policy
The Committee is comfortable that the Policy operated as intended in 2025 and that the overall remuneration paid to Executive Directors for
2025, as set out above, was appropriate.
Payments to past Directors or for loss of office (audited)
A Jones stepped down as CFO on 22 April 2024 and ceased employment with the Company on 27 September 2024. In line with the
Remuneration Policy, the Committee determined that on the basis A Jones retired he be treated as a good leaver.
LTIP awards
As set out in the 2024 Annual Report, A Jones held 45,375 shares under the 2022 LTIP. As set out above, these awards did not vest.
Restricted deferred bonus shares
In line with Policy, 8,339 restricted shares earned by A Jones in respect of his bonus from the year ended 31 October 2022 were subject
toatwo-year holding period that expired on 1 November 2024.
Post-cessation shareholding requirement
In line with Policy, A Jones remains subject to a two-year post-cessation of employment shareholding requirement.
There were no payments for loss of office during the year.
Implementation of the Remuneration Policy for the year ending 31 October 2026
Please see the at a glance section on pages 95 and 96 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
2025 248 — 248
2024 239 — 239
G van de Weerdhof
2025 65 — 65
2024 63 — 63
L Duhot
2025 77 — 77
2024 74 — 74
D Mousseau
2025 65 — 65
2024 63 — 63
J Bentall
2025 89 — 89
2024 77 — 77
A Darzins
2025 65 — 65
2024 63 — 63
Fees to be provided in 2026 to the Non-Executive Directors
The following table sets out the annual fee rates for the Non-Executive Directors from 1 May 2025:
Fee component 2026
Chairman fee £250,982
Non-Executive Director base fee £65,803
Additional fee for SID and Committee chairship £12,338
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
110
Statement of Directors’ shareholding and share interests
Shareholding and other interests at 31 October 2025 (audited)
Directors’ share interests are set out below. As per the 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 CEO had five years from the approval of the 2023 Policy
(12 July 2023) to achieve this guideline and as shown in the table below meets the in-employment guidelines. The CFO will have five years from
his appointment on 22 April 2024 to meet his guideline subject to any deferred bonus awards and the vesting outcomes on any LTIP awards,
and noting that, subject to shareholder approval, this will reduce under the 2026 Policy (see footnote 3 below).
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 guideline excludes shares owned pre-18 March 2020 and awards vesting from the 2017 LTIP.
As at 31 October 2025
Director
Number of
beneficially
owned
shares
1
% of
salary
held
2
Shareholding
requirement
(% of salary)
3
In-employment
shareholding
requirement
met
Total interests
subject to
conditions
(LTIP nil-cost
awards)
Outstanding
Sharesave
awards
Vested but
unexercised
LTIP nil-cost
awards
Total
interests at
31 October
2025
F Vecchioli 3,615,009 3,887 600 Yes 947,250 2,008 Nil 4,564,267
S Clinton 8,802 14 450 No 309,433 Nil Nil 318,235
D Hearn 15,000 n/a n/a n/a n/a n/a n/a 15,000
G van de Weerdhof 9,081 n/a 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 n/a 1,711
D Mousseau 1,460 n/a n/a n/a n/a n/a n/a 1,460
J Bentall 23,000 n/a n/a n/a n/a n/a n/a 23,000
A Darzins 1,581 n/a n/a n/a n/a n/a n/a 1,581
Notes:
1 Beneficial interests include shares held directly or indirectly by connected persons.
2 Based on the 31 October 2025 share price of 715 pence per share and beneficially owned shares only.
3 The shareholding requirement shown in the table is in line with the 2023 Policy. Subject to approval, under the 2026 Policy the in-employment shareholding requirement will
be set at 325% of salary for the CEO and 260% for the CFO. The post-employment guideline will be set at the level of the in-employment shareholding requirement (or actual
shareholding at the date of cessation, if lower) and will remain in place for two years.
Following 31 October 2025, Frederic Vecchioli has cashed out of the Sharesave scheme and has no outstanding Sharesave awards. Simon
Clinton enrolled in the 2025 Sharesave scheme, beginning 1 November 2025, and therefore has 3,509 Sharesave awards under option.
Between 31 October 2025 and 12 January 2026 (being the latest practicable date prior to the publication of this report), there were no other
changes to the Directors’ interests.
Outstanding LTIP awards at 31 October 2025
The following LTIP awards remain outstanding and unvested at 31 October 2025:
Director Awards granted Maximum award Awards vested Awards lapsed
Maximum
outstanding
awards at
31 October
2025
1
Market
price at
date of
vesting (p)
Normal
vesting date
F Vecchioli 12/07/2023 LTIP 276,166 — — 276,166 — 12/07/2026
27/02/2024 LTIP 298,089 — — 298,089 — 27/02/2027
20/01/2025 LTIP 372,995 — — 372,995 — 20/01/2028
S Clinton 13/03/2024 LTIP 139,161 — — 139,161 — 13/03/2027
20/01/2025 LTIP 170,272 — — 170,272 — 20/01/2028
Note:
1 Figures shown exclude dividend equivalents.
The 2023, 2024 and 2025 LTIP awards are subject to performance measures and a continued service condition over a three-year period. The
performance measures and targets for the 2023 LTIP awards are set out on pages 116 and 117 of the 2023 Annual Report; for the 2024 LTIP
awards, these are set out on page 114 of the 2024 Annual Report; and for the 2025 LTIP awards, these are set out on page 109 of this report.
Consideration of conditions elsewhere in the Group
Please see page 102 for details.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
111
Part C: Annual report on remuneration continued
Considerations by the Committee of matters relating to Directors’ remuneration for 2025
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 2025 Independent
Meetings held
during tenure
during the year
Number of
meetings
attended
L Duhot (Chair) Yes 6 6
D Hearn
1
Yes 6 5
G van de Weerdhof Yes 6 6
D Mousseau Yes 6 6
J Bentall Yes 6 6
A Darzins Yes 6 6
Note:
1 D Hearn was unexpectedly hospitalised before the scheduled Board and Committee meetings in December 2024 and was unable to attend.
Please see page 91 of the Chair’s statement for the activities undertaken by the Committee during the year ended 31 October 2025.
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 Company Secretary acts as the secretary to
the Committee.
The Committee received external advice in 2025 from PricewaterhouseCoopers LLP (“PwC”) in connection with remuneration matters,
including the provision of general guidance on market and best practice, and support in relation to the Remuneration Policy review. 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 £87,083. Fees were determined based on the scope
and nature of the projects undertaken for the Committee.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
112
Part D: Directors’ Remuneration Policy
Introduction
This new Directors’ Remuneration Policy will be put to a binding shareholder vote at the AGM on 18 March 2026 and, if approved, will take
effect immediately upon conclusion of the AGM (in place of the current Policy approved at the 12 July 2023 General Meeting which will continue
to apply until such time). It is intended that the new Directors’ Remuneration Policy will remain in force until 2029 and there are no planned
changes toitover the three-year period to which it applies.
In designing the Remuneration Policy for Directors, the Committee considered the principles of the Policy which, as described in the Chair’s
letter, remain as follows:
• to pay at the upper quartile of the FTSE 250 market on a total remuneration basis for achievement of outstanding performance with salary
positioned around market median; and
• to maintain a culture where a significant portion of total remuneration is based on driving financial performance by growing EPS and
maximising shareholder returns via stretching performance conditions.
As part of the process undertaken by the Committee when designing the proposed 2026 Remuneration Policy, it carried out an extensive
consultation seeking to engage with our largest shareholders as well as proxy voting agencies. Full details of the proposed new Policy, including
changes from the previous Policy, are set out on pages 113 to 122.
The Committee is satisfied that the Directors’ Remuneration Policy set out below is in the best interests of shareholders and does not promote
excessive risk taking.
Executive Directors’ Remuneration Policy
The Directors’ Remuneration Policy will be put to a binding vote at the Annual General Meeting held on 18 March 2026 and will take effect from
the date of the meeting.
Element and strategic link
Basic salary
To provide competitive fixed
remuneration that will attract and retain
appropriate talent.
Reflects an individual’s responsibilities,
experience and role.
Changes to Policy:
None.
Operation
Normally reviewed annually. Salaries are paid monthly.
When determining the salary of an Executive, the Committee takes into consideration:
• the individual Director’s experience and responsibilities;
• the performance of the individual Director;
• the performance of the Group;
• pay and conditions throughout the Group; and
• the economic environment.
Levels of base salary are reviewed periodically against companies of a comparable size in both the
real estate sector and the FTSE 250.
Maximum
There is no prescribed maximum annual basic salary increase. When reviewing Executive salaries,
consideration will always be given to the approach to colleague pay across the Group and the
general performance of the Group.
Individuals who are recruited or promoted to the Board may, on occasion, have their salaries
set below the targeted Policy level until they become established in their role. In such cases
subsequent increases in salary may be higher than the general rises for colleagues until the target
positioning is achieved.
The Company will set out in the section headed Implementation of Remuneration Policy, in the
following financial year, the salaries for that year for each of the Executive Directors.
Performance targets and recovery provisions
A broad assessment of individual and business performance is used as part of the salary review.
No recovery provisions apply.
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113
Element and strategic link
Benefits
To provide competitive benefits and
to attract and retain high calibre
colleagues.
Changes to Policy:
None.
Operation
Reviewed periodically to ensure benefits remain market competitive.
Currently includes car allowance and life, private medical and dental insurance.
Directors’ indemnities and Directors’ and Officers’ insurance during and following employment are
provided.
The Committee recognises the need to maintain suitable flexibility in the determination of benefits
that ensure it is able to support the objective of attracting and retaining personnel. Accordingly,
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.
Maximum
Benefit values vary year on year depending on premiums and the maximum potential value is the
cost of the provision of these benefits.
Performance targets and recovery provisions
No performance targets or recovery provisions apply.
Pension
To provide a Company contribution
that aligns with the rate received by the
workforce.
Changes to Policy:
None.
Operation
Pensions are provided by way of a contribution to a defined contribution arrangement and/or cash
salary supplement.
Maximum
Executive Directors will receive no more than the average employer pension contribution rate
received by the workforce.
Performance targets and recovery provisions
No performance targets or recovery provisions apply.
Annual bonus
Incentivises the achievement of a
combination offinancial and non-
financial performance targets in line
with corporate strategy over aone-year
period.
Changes to Policy:
Introduces flexibility to reduce bonus
deferral for Executive Directors who have
met their shareholding requirements.
Operation
Awards made annually based on the achievement of a combination of financial and non-financial
performance measures. Annual bonus of up to 100% of salary paid in cash.
Any bonus in excess of 100% of salary will be held in shares (“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 Executive Directors that have met their
shareholding requirement, the Committee has flexibility to reduce this to a minimum of half of
anybonus in excess of 100% of salary.
Dividends are payable on restricted shares.
Maximum
Maximum bonus opportunity is 150% of salary.
Threshold performance will result in a bonus of 20% of maximum. Target performance will result
ina bonus of 50% of maximum.
Performance targets and recovery provisions
Performance measures and targets will be set by the Committee annually. Two-thirds of the
maximum opportunity will be subject to financial measures.
One-third of the maximum opportunity will be subject to non-financial measures.
There will be no payout under the non-financial measures if threshold performance under the
financial measures is not met.
The Committee retains overriding discretion to change the formulaic outcome (both downwards
and upwards) if it is out of line with the 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.
For bonus paid in cash, malus applies in the year the bonus is earned and clawback 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 clawback operates for three years thereafter.
Directors’ remuneration report continued
for the year ended 31 October 2025
Part D: Directors’ Remuneration Policy continued
Executive Directors’ Remuneration Policy continued
Safestore Holdings plc | Annual report and financial statements 2025
114
Element and strategic link
Long Term Incentive Plan
Incentivises Executive Directors to
execute the long term business plan and
deliver long term sustainable value for
shareholders.
Changes to Policy:
The maximum LTIP award will be
reduced from 480% to 325% of salary
for the CEO and from 344% to 260% for
the CFO.
The modifier and multiplier components
of the current LTIP will be removed.
Operation
Annual awards of nil-cost options.
Vesting period of three years followed by holding period of two years, via an agreement with the
Executive (during which any vested awards cannot be sold except for tax purposes on exercise).
Dividend equivalents are payable on vested shares.
Maximum opportunity
Overall maximum annual award is up to 325% of salary for the CEO and up to 260% of salary for
the CFO/other Executive Directors.
For financial measures, 20% of awards will vest for threshold performance and for non-financial
measures, 0% of awards will vest for threshold performance.
Performance targets and recovery provisions
The performance measures, weightings and targets for the LTIP will be set annually by the
Committee based on a combination of financial and non-financial measures. Financial measures
will account for no less than 65% of the award opportunity. All targets are measured over a
three-year performance period.
Malus applies up to the vesting date and clawback applies during the two-year holding period.
The Committee will have overriding discretion to change formulaic outcome of the LTIP awards
(both downwards and upwards) if it is 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.
All-colleague Sharesave scheme
Encourages long term shareholding in
the Company by all UK colleagues.
Changes to Policy:
None.
Operation
Under the terms of the Sharesave scheme all UK colleagues can apply to save for a three or five-
year period towards an option to acquire the Company’s shares priced at a discount of up to 20%.
Maximum
£500 per month or HMRC limits as applicable from time to time.
Performance targets and recovery provisions
No performance targets or recovery provisions apply.
Shareholding guidelines
To ensure that Executive Directors’
interests are aligned with those of
shareholders over a longer time horizon.
Changes to Policy:
The in-employment shareholding
requirement will be reduced from 600%
to 325% of salary for the CEO and from
450% to 260% of salary for the CFO.
The post-employment guideline will be
reduced from 350% of salary to the
level of the in-employment shareholding
requirement (or actual shareholding at
the date of cessation, if lower).
Operation
Executive Directors are required to build up a shareholding of 325% of salary for the CEO and
260% of salary for the CFO/other Executive Directors.
Current Executive Directors are expected to meet the guidelines within five years of the approval
of this Policy. Newly recruited Executive Directors are expected to meet the guidelines within five
years of joining.
Beneficially owned shares, restricted shares under the annual bonus deferral, and vested but
unexercised awards valued on a net of tax basis will count towards the guidelines.
Executive Directors must retain shares equivalent to the level of the in-employment shareholding
requirement above (or actual shareholding at the date of cessation, if lower) for two years post-
cessation of employment. This excludes shares owned pre-18 March 2020 and awards vesting
from the 2017 LTIP.
Performance targets and recovery provisions
No performance targets or recovery provisions apply.
Discretion within the Directors’ Remuneration Policy
The Committee has discretion in several areas of the Policy as set out in this report. In particular, the Committee will have overriding discretion
to change formulaic outcomes (both downwards and upwards) if they are out of line with underlying performance of the Company. The Committee
may also exercise operational and administrative discretions under relevant plan rules approved by shareholders.
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 this new Remuneration Policy set out in this report.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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115
Part D: Directors’ Remuneration Policy continued
Performance measures and targets
The table below sets out the rationale for the performance measures chosen in respect of the annual bonus and LTIP for the financial year ending
31 October 2026. In line with the proposed Policy and standard practice, the performance measures, weightings and targets for future years will
be set annually by the Committee, with future targets reflecting the current business plan and economic environment at the time targets are set.
2026 performance measures 2026 performance measuretargets How targets are set Rationale
Annual bonus
• Two-thirds Underlying
EBITDAR.
• One-third strategic/
operational measures.
The Board deems the annual bonus
targets to be commercially sensitive.
Full details of the 2026 targets and
their achievement will continue to be
disclosed retrospectively in the 2026
Directors’ remuneration report.
The strategic/operational measures will
include an ESG-related component,
reflecting the commitment to
sustainability and responsible business
practices.
There will be no payout under the
strategic/operational measures if
threshold performance under the
Underlying EBITDAR measure is
notmet.
The performance targets are
determined annually by the
Committee considering the
Company’s business plan,
strategic and operational
imperatives, market
conditions and external
forecasts.
The combined use of financial, strategic,
and operational measures provides
a holistic assessment of corporate
performance and allows for the
Company to focus annually on targets
that work towards the delivery of the
financial measures under the LTIP.
In line with previous years, the Committee
is of the view that Underlying EBITDAR is
the most appropriate financial measure for
the annual bonus assessment for 2026.
The financial performance underpin
ensures that no payment can be made
under the non-financial element unless
acceptable financial performance has
been achieved.
Long Term Incentive Plan
• 40% Adjusted Diluted
EPRA Earnings per Share
(“EPS”) growth.
• 40% relative total
shareholder return
(“TSR”).
• 20% strategic/operational
measures.
EPS targets:
For 2026:
• Threshold (20% vesting) = 2% p.a.
growth.
• Maximum (100% vesting) = 6.5%
p.a. growth.
Straight-line vesting in between
performance levels.
TSR targets:
50% of the TSR element is measured
against the constituents of the FTSE
250 Index excluding Investment
Trusts and the remaining 50% against
the constituents of the FTSE 350
Supersector Real Estate Index.
Threshold (20% vesting) = median
performance of the peer group.
Maximum (100% vesting) = upper quartile
performance of the peer group.
Straight-line vesting in between
performance levels.
Strategic/operational targets:
For 2026, the measure will be the
aggregate net increase in Maximum
Lettable Area (“MLA”) (includingnet
increase in MLA for jointly-owned
stores in a joint venture where the
Company has an option to buy its
partner), over the three financial years
ending 31October 2028.
• 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.
EPS targets:
For the 2026 award, in
determining the EPS target
range (2%–6.5% p.a.), the
Committee considered:
Safestore’s three-year
financial plan and market
forecasts; the challenging
economic climate; the
Company’s strategic goals
and priorities; planned
investments; and previous
years’ results.
Targets are designed to be
challenging yet achievable
to effectively motivate
management and align with
the Company’s strategic
goal of providing long term
growth for shareholders.
Strategic/operational
targets:
For 2026, the Board
determined that the most
suitable measure to support
and incentivise growth
remains the net increase in
MLA.
EPS targets:
EPS remains a core financial metric,
understood and valued by our
shareholders, and will be a key measure
of the business performance over the
next three years. It is also an established
measure of Safestore’s long term
sustainable profitability.
TSR targets:
As we transition away from the
TSR-based multiplier and modifier,
the Committee remains committed to
retaining a robust shareholder returns
metric, consistent with shareholder
preferences and prevailing market practice.
The Committee determined that it would
be appropriate to maintain an assessment
of TSR performance against both the
FTSE 250 (excluding Investment Trusts)
and the FTSE 350 Supersector Real
Estate Index. The former peer group
is considered appropriate based on
Safestore’s ranking within the FTSE and
the latter based on sector comparability.
Strategic/operational targets:
The Committee acknowledges the
importance of strategic and operational
metrics to the long term success of the
business. For example, these reward
participants for continuing to invest in the
asset base and to increase MLA, either
on the balance sheet or via strategic joint
ventures which are key drivers of future
growth and shareholder value.
Overall:
The framework established to set 2026
performance targets ensures that the
Committee is comfortable that significant
levels of vesting will only be achieved for
commensurate levels of performance.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
116
Differences between Executive Directors’ and colleagues’ remuneration
The following differences exist between the Company’s policy for the remuneration of Executive Directors as set out in the Policy table
previously, and its approach to the payment of employees generally:
• our Head Office colleagues are eligible to receive a discretionary annual bonus, which is calculated against business targets and objectives.
A lower level of maximum annual bonus opportunity applies to Head Office employees below the Executive Directors;
• all our sales colleagues are eligible for our performance-based monthly bonus scheme and can earn up to 50% of their monthly salary;
• Executive Directors may opt to receive a cash supplement in lieu of pension. Executive Directors receive no more than the average employer
pension contribution rate received by the workforce; and
• Executive Directors are able to participate in the LTIP. Currently c. 80 colleagues (c. 9% of the workforce) within our middle and senior
management levels are invited to participate in the LTIP at the Remuneration Committee’s discretion.
In general, these differences arise from the development of remuneration arrangements that are market competitive for the various categories
of individuals. They also reflect the greater emphasis placed on performance related pay for Executive Directors.
Pay for performance: scenario analysis
The following charts provide an estimate of the potential future reward opportunities for the Executive Directors, and the potential split between
the different elements of pay under four different performance scenarios: ‘Minimum’, ‘On target’, ‘Maximum’ and ‘Maximum with LTIP share
price growth of 50% over three years’.
Assumptions used in determining the level of payout under given scenarios are as follows:
Element Minimum On target Maximum
Maximum with LTIP share price
growth of 50% over three years
Fixed elements Base salary as at 1 May 2025 for the CEO and as at 1 November 2025 for the CFO
Pension of 4.1% of salary
Benefits in line with value in year to 31October 2025
Annual bonus Nil 50% of maximum 100% of maximum 100% of maximum
LTIP Nil 50% of maximum 100% of maximum 100% of maximum with
50%share price growth
Notes:
1 Dividends have not been included in the restricted shares from the annual bonus deferral and dividend equivalents have not been included in the LTIP awards.
2 No Sharesave awards included.
CEO (£’000) CFO (£’000)
£’000
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
117
Minimum On target Maximum Maximum
(with LTIP share
price growth of 50%
over three years)
Minimum On target Maximum Maximum
(with LTIP share
price growth of 50%
over three years)
Fixed pay Annual bonus LTIP
5,000
4,000
3,000
2,000
1,000
0
100%
100%
14%
20%
66%
17%
23%
60%
19%
26%
55%
21%
29%
50%
31%
22%
47%
35%
24%
41%
£717
£522
£2,297
£1,499
£3,876
£2,477
£4,957
£3,097
Part D: Directors’ Remuneration Policy continued
Approach to recruitment and promotions
The Committee’s approach to recruitment remuneration is to pay no more than is necessary to attract candidates of the appropriate calibre
and experience needed for the role. The remuneration package for any new recruit would be assessed following the same principles as for
the Executive Directors and would be set in accordance with the terms of the Company’s prevailing approved Remuneration Policy at the time
of appointment and take into account the skills and experience of the individual, the market rate for a candidate of that experience and the
importance of securing the relevant individual.
Element Recruitment policy
Base salary Salary levels may take into account the individual’s experience, market data for the relevant role, internal relativities
and current base salary. Where an individual is recruited at below market norms, they may be realigned over time,
subject to performance in the role.
Benefits, pension and
all-colleague Sharesave
Will be set in accordance with the Remuneration Policy.
Annual bonus Will operate in line with the Remuneration Policy with the maximum opportunity set at 150% of salary.
LTIP Will operate in line with the Remuneration Policy with the maximum opportunity set at 325% of salary for the CEO and
260% of salary for the CFO/other Executive Directors.
Maximum variable
remuneration
Will be the total of the maximum annual bonus and LTIP opportunity (475% of salary for the CEO and 410% of salary
for the CFO/other Executive Directors) in line with the Remuneration Policy.
Shareholding guidelines In line with the Remuneration Policy, with five years from joining to meet in-employment guideline.
Internal promotions Where an existing colleague is promoted to the Board, the Policy set out above will apply from the date of promotion
but there would be no retrospective application of the Policy in relation to subsisting incentive awards or remuneration
arrangements. Accordingly, prevailing elements of the remuneration package for an existing colleague would be
honoured and form part of the ongoing remuneration of the colleague. These would be disclosed to shareholders in
the following year’s annual report on remuneration.
‘Buyout’ of incentives
forfeited on cessation
ofemployment
The Committee does not have an automatic policy to buy out subsisting incentives granted by an Executive’s
previous employer and which would be forfeited on cessation. Should, however, the Committee determine that it
is appropriate to do so, the Committee may consider buying out incentive awards which an individual would forfeit
upon leaving their current employer, although any compensation would, where possible, be consistent with respect
to vehicle (i.e. cash for cash, equity for equity), vesting periods (i.e. there would be no acceleration of payments),
expected values and the use of performance targets. The Committee may then grant up to the same expected values
where possible under the Company’s incentive plans, subject to the annual limits under these plans. It does, however,
retain the discretion to provide the expected value under specific arrangements in relation to the recruitment of the
individual, e.g. under an arrangement in accordance with Listing Rule 9.3.2.
Relocation In instances where the new Executive is relocated from one work location to another, the Company will provide
compensation to reflect the cost of relocation for the Executive in cases where they are expected to spend significant
time away from their home location in accordance with its normal relocation package for colleagues. The level of
the relocation package will be assessed on a case-by-case basis but may take into consideration any cost of living
differences, housing allowance and schooling in accordance with the Company’s normal relocation package for
colleagues.
Notice period Twelve months for Executive Directors.
Service contracts for Executive Directors
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
S Clinton 22 April 2024 Twelve months
When setting notice periods, the Committee has regard to market practice and corporate governance best practice. All service contracts are
available for viewing at the Company’s registered office and at the AGM.
Fees for external non-executive directorships
The Board allows Executive Directors to accept appropriate outside commercial Non-Executive Director appointments provided the aggregate
commitment is compatible with their duties as Executive Directors. The Executive Directors concerned may retain fees paid for these services,
which will be subject to approval by the Board. The Executive Directors hold no external directorships.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
118
Payment for loss of office
When determining any loss of office payment for a departing Director, the Committee will always seek to minimise the cost to the Company
whilst complying with the contractual terms and seeking to reflect the circumstances in place at the time. The Committee reserves the right to
make additional payments where such payments are made in good faith in discharge of an existing legal obligation (or by way of damages for
breach of such an obligation), or by way of settlement or compromise of any claim arising in connection with the termination of an Executive
Director’s office or employment. The Committee also reserves the rights to agree ancillary payments such as Executive Directors’ fees.
Regarding salary, benefits and pension, there will be no compensation for normal resignation or in the event of termination by the Company
due to gross misconduct. In other circumstances, Executive Directors will be entitled to receive notice pay or payment in lieu of notice. On loss
of office, the all-colleague Sharesave scheme will operate in line with the HMRC approved rules. A summary of the main contractual terms in
relation to annual bonus and LTIP is set out below:
Scenario Timing or calculation of vesting/payment Committee’s discretion
Annual bonus
Good leaver – A ‘good leaver’ is
defined as a participant that ceases
to be in employment by reason of
death, ill health, injury, disability,
redundancy, retirement, the company
employing the participant ceasing
to be a member of the Group, the
participant’s employing business
being sold out of the Group or at
theCommittee’sdiscretion.
Performance year of cessation
Bonus will normally be pro-rated for service
provided in the year of cessation and is subject
to the achievement of performance targets
measured at the end of the year. Bonus up to
100% of salary is delivered in cash at the end
of the performance year. Bonus earned over
100% of salary will be held in shares (“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 in line with Policy.
Restricted shares
The period applying to any restricted shares
willcontinue to apply until the normal end date
and the shares will continue to be subject to
malus/clawback.
The Remuneration Committee has the following
elements of discretion:
• to determine whether an Executive is a good
leaver in line with the provision on the left-hand
side;
• to determine that a bonus may be paid at the
date of cessation; and
• to determine that the portion of the bonus held
as restricted shares is reduced, or that any
restricted shares period ceases to apply.
Bad leaver – Anyone who is not a
good leaver will be a ‘bad leaver’.
Performance year of cessation
There will be no bonus for the year in which
theyleave.
Restricted shares
The period applying to any restricted shares will
continue to apply until the normal end date and
the shares will continue to be subject to malus/
clawback.
Change of control
Performance year of cessation
The bonus will be determined by the Committee
at its discretion by reference to the time elapsed
from the start of the performance year to the
change of control date and the achievement of
the performance targets as at that date.
Restricted shares
The period applying to any restricted shares will
cease immediately prior to a change of control.
The Committee has the discretion to determine,
in exceptional circumstances, whether to pro-rate
for time served as a colleague during the year
ofcessation.
Long Term Incentive Plan
Good leaver – A ‘good leaver’ is
defined as a participant that ceases
to be in employment by reason of
death, ill health, injury, disability,
redundancy, retirement, the company
employing the participant ceasing
to be a member of the Group, the
participant’s employing business
being sold out of the Group or at
theCommittee’sdiscretion.
Unvested awards will vest on the normal vesting
date, subject to: (i) the extent any applicable
performance targets have been satisfied at the
end of the normal performance period; and
(ii)pro-rating to reflect the period between grant
and cessation of employment as a proportion
ofthe vesting period that has elapsed.
In the case of death, unvested awards will
normally vest immediately.
Where cessation of employment occurs
during any holding period, the holding period
will normally continue to apply to vested
LTIPshares.
The Remuneration Committee has the following
elements of discretion:
• to determine whether an Executive is a good
leaver in line with the provision on the left-hand
side;
• to determine whether the performance period
ends on the date of cessation with awards
vesting on that date;
• in the case of death, to determine that awards
vest on the normal vesting date;
• to determine whether to pro-rate the number of
awards for the time elapsed since grant; and
• to allow the shares to be released from a holding
period in certain exceptional circumstances.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
119
Directors’ remuneration report continued
for the year ended 31 October 2025
Scenario Timing or calculation of vesting/payment Committee’s discretion
Long Term Incentive Plan continued
Bad leaver – Anyone who is not a
good leaver will be a ‘bad leaver’.
Bad leavers will forfeit all unvested awards.
Where cessation of employment occurs during
any holding period, the holding period will
continue to apply to vested LTIP award shares
as normal.
Change of control The Committee will determine the level of
vesting taking into account: (i) the extent that
any applicable performance targets have been
satisfied at that time; (ii) the bid consideration
received; and (iii) the portion of the vesting
period that has then elapsed.
In the event of an internal corporate
reorganisation, the Committee may decide to
replace unvested awards with equivalent new
awards over shares in the acquiring company.
The Committee has the discretion to determine,
in exceptional circumstances, whether to pro-rate
the award for time served as a colleague during
the vesting period.
Buyout award Where cessation of employment occurs in
relation to a new Executive Director who
has been granted a buyout award, the
treatment would be in line with the terms
ofthebuyoutaward.
In line with terms of buyout award.
Malus and clawback policies
The table below sets out the time period for which malus and clawback will apply for each incentive and why the selected period is most
suitable for Safestore.
Incentive Time period Rationale
Annual bonus – cash Malus applies in the year the bonus is earned
andclawback for three years thereafter.
These periods have been selected as they are
the most reflective of the period of assessment of
individual and Company performance in relation to
the respective incentives, during which the malus
and clawback triggers would apply.
The multi-year period provides the Remuneration
Committee with the ability to apply malus and/or
clawback in the event that the circumstances are
not known for some time.
Annual bonus – restricted shares Malus applies until the end of the two-year period
following the financial year in which the bonus is
earned and clawback for three years thereafter.
LTIP Malus applies up to vesting and clawback
duringthe two-year holding period.
No malus or clawback has been applied in the last financial year.
The circumstances in which malus and clawback could apply are as follows:
• discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company or the audited
accounts of any Group member; and/or
• the discovery that assessment of any performance condition or target in respect of a payment was based on error, or inaccurate or
misleading information; and/or
• the discovery that any information used to determine the amount of any incentive payment was based on error, or inaccurate or misleading
information; and/or
• action or conduct of a participant which, in the reasonable opinion of the Committee, amounts to colleague misbehaviour, fraud or gross
misconduct; and/or
• a material failure of risk management of the Company, a Group member or a business unit of the Company; and/or
• the Company or any Group member or business of the Group becomes insolvent or otherwise suffers corporate failure so that the value of
the award is materially reduced, provided that the Board determines following an appropriate review of accountability that the participant
should be held responsible (in whole or in part) for that insolvency or corporate failure; and/or
• events or behaviour of a participant have led to the censure of a Group member by a regulatory authority or have had a significant detrimental
impact on the reputation of any Group member, provided that the Committee is satisfied that the relevant participant was responsible for the
censure or reputational damage and that the censure or reputational damage is attributable to them.
Part D: Directors’ Remuneration Policy continued
Payment for loss of office continued
Safestore Holdings plc | Annual report and financial statements 2025
120
Non-Executive Directors
The Board as a whole and specifically the Chair of the Board and the Executive Directors are responsible for setting the remuneration of
the Non-Executive Directors, other than the Chair of the Board whose remuneration is determined by the Remuneration Committee and
recommended to the Board.
The table below sets out the key elements of the Policy for Non-Executive Directors.
Strategic link Operation Maximum Performance targets and recovery provisions
To provide compensation that
attracts high calibre individuals
and reflects their experience
and knowledge.
Non-Executive Directors may receive
a base fee and additional fees for
the role of Senior Independent
Director or Chair of a Committee.
The Company retains the flexibility
to pay fees for the membership
ofCommittees.
Fees for a Chair/membership of a
new Committee will be in line with
the Policy.
Fees are reviewed annually with
anychanges generally effective
from1May.
Non-Executive Directors also receive
reimbursement of reasonable
expenses (and any tax thereon)
incurred undertaking their duties
and/or Company business.
Non-Executive Directors do not
receive any variable remuneration
element or pension contribution but
may receive benefits if determined
appropriate to the role.
The fees for Non-Executive
Directors and the Chair of the
Board are broadly set at a
competitive level against other
companies of comparable size and
complexity.
Where made, any increase in
Chair or Non-Executive Director
fees will generally be in line with
the increase awarded to the wider
workforce; however, the increase
may be higher to reflect any
changes to time commitments and
take into consideration increases
inthe level of responsibility.
No performance targets or recovery
provisions apply.
Non-Executive Director letters of appointment
The Group’s policy is to appoint Non-Executive Directors to the Board with a breadth of skills and experience that is relevant to the Group’s
business. Appointments are made by the Board upon the recommendations and advice from the Nomination Committee. The Non-Executive
Directors do not have service contracts but are appointed under letters of appointment. Non-Executive Directors are appointed for an initial
three-year term and their appointment continues subject to annual re-election at the Company’s AGM. Non-Executive Directors are typically
expected to serve up to three three-year terms subject to performance review.
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
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
No compensation is payable in the event of early termination apart from the notice period. All letters of appointment are available for viewing at
the Company’s registered office and at the AGM.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
121
Part D: Directors’ Remuneration Policy continued
Consideration of conditions elsewhere in the Group
As part of our commitment to fairness across the business, and in line with requirements under the UK Corporate Governance Code, we
set out information earlier in this Annual Report on the pay conditions of the wider workforce and comparisons with Executives, as well
as our diversity policies and statistics. We are committed to transparency internally and externally in relation to developments on these
important issues.
The Committee did not specifically consult with colleagues when drawing up the proposed Directors’ Remuneration Policy. However, 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. These valuable insights
were considered when the Committee developed the Policy set out above.
Statement of shareholder views
In formulating our proposed Policy, the Committee undertook an extensive shareholder engagement exercise.
The Committee presented an initial proposal for the 2026 Remuneration Policy to our largest institutional shareholders, representing over
77% of issued share capital as well as proxy voting agencies, in September and October 2025. The Committee subsequently held meetings
with a large number of shareholders as well as proxy voting agencies to understand sentiment towards the proposals. We were pleased that
all our shareholders were generally supportive of the initial proposals. The Committee has listened to the feedback received from a number
of shareholders and made some refinements to the initial proposals. In particular, the Committee initially proposed to introduce the flexibility
to reduce the bonus deferral to zero for Executive Directors who have met their shareholding requirements; however, in response to investor
feedback, it has changed this to a maximum reduction of up to 50% of the current deferral level. In addition, the shareholding requirement levels
were initially proposed to align with FTSE 250 upper quartile market practice (at 300% of salary for the CEO and 200% for the CFO) but they
have been increased to align with the LTIP opportunity levels in response to investor feedback.
The Committee is comfortable with the amended proposals and we believe that they are in line with the best interests of Safestore and will
incentivise and retain the highly successful Executive Team which is critical to executing our business strategy and driving long term creation of
value for shareholders.
The Committee remains committed to ongoing dialogue with the Company’s shareholder base to ensure the views of all stakeholders are taken
into account and that the correct decisions are made for the Company. The Committee welcomes the participation of all shareholders in voting
on the proposed Remuneration Policy at the Annual General Meeting.
Directors’ remuneration report continued
for the year ended 31 October 2025
Safestore Holdings plc | Annual report and financial statements 2025
122
Safestore Holdings plc is a public limited liability company
incorporated under the laws of England and Wales with the registered
number 04726380. It is listed on the London Stock Exchange under
the category equity shares (commercial companies) (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 2025. 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 78 to 83;
• strategy and relevant future developments – refer to pages 29 to 30
of the strategic report;
• Section 172, including engagement with employees, suppliers,
customers and others – refer to pages 34 to 37 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 38 to 42 and in note 20 to the financialstatements;
• details of the Group’s going concern assessment and viability
statement on pages 44 and 139; and
• employee matters and carbon emission disclosures are set out in the
sustainability report on pages 50 to 53 and pages 67 to 73 respectively.
Results for the year and dividends
The results for the year ended 31 October 2025 are set out in the
consolidated statement of comprehensive income on page 135 and a
review of the Group’s results is explained further on pages 17 to 26.
An interim dividend of 10.10 pence (FY 2024: 10.00 pence) was paid
on 7 August 2025, comprised of a Property Income Distribution
(“PID”) of 2.53 pence (FY 2024: 2.50 pence) and a non-PID dividend
of 7.57 pence (FY 2024: 7.50 pence). The Directors recommend a final
dividend in respect of the year ended 31 October 2025 of 20.6 pence
per ordinary share (FY 2024: 20.40 pence), of which the PID element
will be 10.30 pence (FY 2024: 15.30 pence). If authorised at the 2025
AGM, the dividend will be paid on 14 April 2026 with a record date of
13 March 2026 and an ex-dividend date of 12 March 2026.
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 or 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
The Directors of Safestore are confident that, on the basis of current
financial projections and facilities available and after considering
sensitivities, and reviewing the stress testing scenarios, 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 2028. 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 44.
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 38 to 42, and in note 20 to the financial statements.
Disclosures required under UK Listing Rule 6.6.1R
and 6.6.6R
For the purposes of UKLR 6.6.1R and UKLR 6.6.6R, the information
required to be disclosed can be found in the following locations within
the Annual Report:
Page
(1) Amount of interest capitalised 21
(2) Publication of unaudited financial information n/a
(3) Details of long term incentive schemes 164 to 166
(4) Waiver of emoluments by a Director n/a
(5) Waiver of future emoluments by a Director n/a
(6) Non-pre-emptive issues of equity for cash 164
(7) Item (6) in relation to major subsidiary undertakings n/a
(8) Parent company participation in a placing by a
listedsubsidiary
n/a
(9) Contracts of significance 126
(10) Provision of services by a controlling shareholder n/a
(11) Shareholder waiver of dividends 124
(12) Shareholder waiver of future dividends n/a
(13) Independence from controlling shareholder n/a
(14) PDMR interests statement 111
(15) Interest disclosed under DTR 5 125
(16) Going Concern Statement 139
(17) Statement in relation to purchase of own shares 124
(18) Statement on application of UK Corporate
Governance Code
83
(19) Statement setting out unexpired terms of any
Director’s service contract
n/a
(20) TCFD disclosures 58 to 63
(21) Statement on gender diversity 52
(22) Numerical data on ethnic background and the gender
identity or sex of Board and Executive Management
52
(23) Approach on collecting data for purposes of
UKLR6.6.6R(9)
51
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’ report
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
123
Directors
The Directors of the Company who served during the year and to the
date of this report were as follows:
Jane Bentall Senior Independent Director
Simon Clinton Chief Financial Officer
Avis Darzins Non-Executive Director
Laure Duhot Non-Executive Director
David Hearn Non-Executive Chairman
Delphine Mousseau Non-Executive Director
Frederic Vecchioli Chief Executive Officer
Gert van de Weerdhof Non-Executive Director
The skills and experience of the serving Directors are set out on
pages 76 and 77, 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 page 111.
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 page 81.
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 18 March 2026
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 2024 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 2025, the Company’s issued share capital comprised
218,490,500 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 10 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 did not change in the financial year ended 31 October 2025.
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 2025, the Employee Benefit Trust retains 65,282
ordinary shares (FY 2024: 73,759) with a nominal value of £652.82
(FY 2024: £737.59) to satisfy awards under the Group’s share scheme
arrangements. This represents c. 0.03% (FY 2024: 0.03%) 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.
Purchase of own shares
The Company was granted authority at the 2025 AGM to make
market purchases of its own ordinary shares. This authority will expire
at the conclusion of the 2026 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 2025
to 12 January 2026.
Directors’ report continued
Safestore Holdings plc | Annual report and financial statements 2025
124
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 2025 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 19 November 2025 (being the nearest
date of the Company’s internal analysis to 31 October 2025), 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 21,449,869 9.82%
Aberdeen plc 13,263,179 6.07%
The Vanguard Group, Inc 12,457,594 5.70%
BNP Paribas Group 10,814,963 4.95%
Janus Henderson Group plc 7,367,869 3.37%
Ameriprise Financial 7,227,600 3.31%
CPP Investment Board 6,806,924 3.12%
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 2024, 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. 1 May 2025 10,833,764 4.95846% Indirect
Between 1 November 2025 and 12 January 2026, being a date not more than one month prior to the date of the Company’s Notice of Annual
General Meeting 2025, 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 13 January 2026 can be found on the Company’s
website, www.safestore.com.
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Safestore Holdings plc | Annual report and financial statements 2025
125
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 46 to 73.
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 (FY 2024: £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 its annual review of the auditor’s
independence. The Directors determined that Deloitte LLP remained
independent through the course of the year.
Deloitte LLP was put forward to shareholders at the Company’s
Annual General Meeting on Wednesday, 19 March 2025 for
re-appointment, and received 94.36% of votes in favour.
The Audit Committee undertook a review of the external auditor
effectiveness and independence in September 2025. The Audit
Committee found that Deloitte had continued to demonstrate
independence and a strong performance. A recommendation
wasmade to the Board that Deloitte be put forward for re-election
as the Company’s auditor. Shareholders will have the opportunity
tovote on the re-appointment of the Company’s auditor at the
AnnualGeneral Meeting on Wednesday 18 March 2026.
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 18 March 2026 at 1.00pm.
The 2026 AGM will include, as special business, resolutions dealing
with the authority to issue shares, disapplication of pre-emption
rights, authority to purchase the Company’s own shares and authority
to call a general meeting on not less than 14 days’ notice. 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, MUFG, at
www.signalshares.com or via the MUFG shareholder app, Vote+.
This report was approved by the Board for release on 15 January
2026 and signed on its behalf by:
David Orr
Company Secretary
14 January 2026
Directors’ report continued
Safestore Holdings plc | Annual report and financial statements 2025
126
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 76 and 77, 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 they face.
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 14 January 2026 and is signed on its behalf by:
Frederic Vecchioli Simon Clinton
Chief Executive Officer Chief Financial Officer
Statement of Directors’ responsibilities
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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127
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 2025 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 related notes 1 to 31 and the parent company relates notes 1 to 12.
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 (the ‘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 note 6 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 matter 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).
Materiality The materiality that we used for the group financial statements was £45.9 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
£4.4 million, which was determined as 5% of adjusted EPRA earnings.
Scoping We have identified four components within the group: United Kingdom (“UK”), France, Spain, Benelux (Belgium
andNetherlands).
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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, maturity profile and covenants;
• testing the mathematical accuracy 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 covenant and liquidity 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 the investment properties
Key audit matter description Investment properties are held at a fair value of £3,480.1 million at 31 October 2025 (FY 2024: £3,284.1 million).
Investment property valuation is subjective in nature with significant estimation in critical assumptions, increasing
the risk of fraud or material error.
The property valuation, which is performed by an external valuer, is determined using factual data at the balance
sheet date and applies a range of subjective assumptions based on market evidence and the valuer’s expertise.
This data drives a cash flow model that is used as the basis of the valuation of each individual property. We
consider the key assumptions to comprise the exit capitalisation rate, rental growth rate and discount rates.
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 89.
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129
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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:
• Gained an understanding of the relevant controls within the property valuation process.
• Made enquiries of management to enhance our understanding of the portfolio and market.
Data provided to the valuer:
• Obtained the source data provided by management to the valuer and for a sample tested the completeness
and accuracy.
External valuation:
• Assessed the appropriateness of the valuer’s scope and evaluated the competence, objectivity and capability
of the valuer.
• Identified individual properties through an assessment of valuer key assumptions which are considered
outliers to our expected range.
• Investigated the properties considered to be outliers and challenged the key estimates by assessing the
appropriateness through comparison with market evidence and our expectation.
• Met with the valuer and with the involvement of our internal real estate specialists, performed an independent
assessment of the assumptions that underpin the valuations, including the exit capitalisation rate, rental
growth rate and discount rates.
• Evaluated whether the valuation methodology remains appropriate and assessed whether indicative
rents and exit capitalisation rates achieved in recent comparable transactions were consistent with the
assumptions used in the group’s valuations.
• Tested the accuracy and integrity of key elements of the valuer’s model and for a sample of properties,
recalculated the valuation.
• To address the risk of fraud, we assessed whether the changes between the draft valuations presented to
management for review and the final valuation report were appropriate and substantiated.
• Considered contradictory evidence where available and performed a ‘stand-back’ review to assess the
sufficiency of audit evidence.
Financial statements and disclosures:
• Reconciled the external valuation reports to underlying financial records to test for completeness and
accuracy within the group’s financial statements.
• 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 and therefore the valuation reported in the financial statements to be reasonable.
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 £45.9 million (FY 2024: £41.0 million) £4.8 million (FY 2024: £5.2 million)
Basis for determining
materiality
2% of net assets (FY 2024: 2% of net assets). 3% of net assets (FY 2024: 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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Independent auditor’s report continued
to the members of Safestore Holdings plc
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 Adjusted EPRA earnings as a key benchmark. We applied a lower threshold of £4.4 million
(FY2024:£4.5million) for testing of balances impacting that measure, which has been determined as 5% (FY 2024: 5%) of Adjusted EPRA earnings.
Audit Committee reporting
threshold: £2.0m
Group materiality: £45.9m
Net assets
Group materiality
Component materiality
range: £3.41m to £25.7m
Net assets:
£2,288.4m
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% (FY 2024: 70%) of group materiality 70% (FY 2024: 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 £2.0 million (FY 2024:
£2.0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.
The group’s accounting process is structured around the markets they operate within globally and managed by local finance functions with
support provided by the group function in the United Kingdom. We performed a detailed scoping exercise of each individual account balance,
class of transaction and disclosure at a group level, to determine the individual markets’ contribution to each significant account in the group
financial statements. This has resulted in certain markets being subject to audit procedures through either an audit of the entire financial
information, audit procedures on specific account balances or being subject to specified procedures (“the components subject to audit
procedures”).
Based on our assessment, our audit scope focuses on component entities within four locations, United Kingdom, France, Spain and Benelux.
We have engaged Deloitte France to perform audit procedures on specific account balances, whilst the scoped in balances for the United
Kingdom, Spain and Benelux have been completed by the group audit team.
For markets and account balances not subject to audit procedures we performed analytical review procedures to confirm our conclusion that
there was no significant risk of material misstatement in the residual population. The components subject to audit procedures in the current
year represent 91% (FY 2024: 92%) of revenue, 99% (FY 2024: 98%) of Adjusted EPRA earnings and 99% (FY 2024: 99%) of total assets.
7.2. Our consideration of the control environment
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 obtained an
understanding of the relevant risks arising from each relevant IT system. We obtained an understanding of the IT environment as part of these
risk assessment procedures. Additionally, we obtained an understanding of the relevant controls such as those relating to the financial reporting
cycle, revenue and going concern and those in relation to our key audit matter.
As a result of findings arising from our work, we were unable to take a controls reliance approach for any substantive testing throughout
the audit.
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Report on the audit of the financial statements continued
7. An overview of the scope of our audit continued
7.3. Our consideration of climate-related risks
We have made enquiries of management and the directors 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.
We made enquiries of the valuer and management as to the climate-related assumptions included and considered their appropriateness with
the assistance of our internal real estate specialists. In considering the disclosures presented as part of the Strategic Report, we engaged our
climate specialists to assess compliance with the TCFD and CFD requirements and the recommendations made by both the Task Force and
FRC as set out in their thematic reviews. We have assessed whether these disclosures reflect our understanding of the group’s approach to
climate. We have read the Annual Report narrative to consider whether the climate related disclosures are materially consistent with the financial
statements and our knowledge obtained in the audit. We have also evaluated the appropriateness of disclosures included in the financial
statements, disclosed in the accounting policies, and in the strategic report.
7.4. Working with other auditors
Throughout the audit, we directed our French component auditor to perform the audit of the France component and supervised their work
through regular communication. Which included involvement in areas of significant and higher risk. We reviewed and evaluated their work
including their reporting. As the group team, we attended a site visit in Paris and met local management. We held an upfront partner led
planning meeting and also attended the local audit close meeting with the component team and local management team.
Our component audit work was executed at levels of performance materiality applicable to each individual component which were lower than
group materiality, ranging from £3.4 million to £25.7 million (FY 2024: £7.1 million to £22.7 million). In addition, for the lower materiality threshold
described above, our component thresholds ranged from £0.8 million to £2.4 million (FY 2024: £0.8 million to £2.5 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.
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.
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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
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 their policies and procedures relating to:
• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
• 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 component audit teams and relevant internal specialists, including
climate, IT, financial instrument and real estate 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 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 and the sector it operates in.
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 external 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 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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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
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 the 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 regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 139;
• 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 44;
• the directors’ statement on fair, balanced and understandable set out on page 127;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 38 to 42;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 82; and
• the section describing the work of the Audit Committee set out on page 87 to 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 ending 31 October 2014 and subsequent financial periods. The period of total uninterrupted engagement including
previous renewals and re-appointments of the firm is 12 years, covering the years ending 31 October 2014 to 31 October 2025.
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) 4.1.15R – DTR 4.1.18R, these financial
statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the FCA in accordance
with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual Financial Report has
been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
Stephen Craig, FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
15 January 2026
Safestore Holdings plc | Annual report and financial statements 2025
134
Independent auditor’s report continued
to the members of Safestore Holdings plc
Group
20252024
Notes £’m£’m
Revenue
3, 4
234.3
223.4
Cost of sales
(79.9)
(73.7)
Gross profit
154.4
149.7
Administrative expenses
(20.7)
(16.1)
Share of profit from joint ventures and associates
2.5
—
Gain on revaluation of investment properties
13
23.1
292.2
Operating profit
4, 5
159.3
425.8
Finance income
7
0.5
0.1
Finance expense
7
(32.7)
(27.3)
Profit before income tax
127.1
398.6
Income tax charge
8
(16.0)
(26.3)
Profit for the year
111.1
372.3
Earnings per Share for profit attributable to the equity holders
– basic (pence)
10
50.9
170.5
– diluted (pence)
10
50.6
170.1
The financial results for both years relate to continuing operations.
The notes on pages 139 to 168 are an integral part of these consolidated financial statements.
Consolidated statement of comprehensive income
for the year ended 31 October 2025
Group
20252024
£’m£’m
Profit for the year
111.1
372.3
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Currency translation differences
32.4
(22.0)
Net investment hedge
(17.3)
6.9
Other comprehensive income, net of tax
15.1
(15.1)
Total comprehensive income for the year
126.2
357.2
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Consolidated income statement
for the year ended 31 October 2025
Group
20252024
Notes £’m£’m
Assets
Non-current assets
Investment properties
13
3,480.1
3,284.1
Property, plant and equipment
14
7.2
5.7
Investments in associates
11
6.5
6.6
Investment in joint ventures
12
44.4
—
Deferred tax assets
22
8.8
6.3
3,547.0
3,302.7
Current assets
Inventories
0.4
0.4
Current income tax receivables
1.0
1.0
Trade and other receivables
16
31.6
31.7
Cash and cash equivalents
17
11.0
25.3
44.0
58.4
Total assets
3,591.0
3,361.1
Current liabilities
Borrowings
19
(96.5)
—
Trade and other payables
18
(54.0)
(51.8)
Lease liabilities
21
(15.4)
(14.0)
(165.9)
(65.8)
Non-current liabilities
Borrowings
19
(861.7)
(824.2)
Deferred tax liabilities
22
(176.7)
(155.4)
Lease liabilities
21
(96.0)
(86.6)
Provisions
27
(2.3)
(2.3)
(1,136.7)
(1,068.5)
Total liabilities
(1,302.6)
(1,134.3)
Net assets
2,288.4
2,226.8
Equity
Ordinary share capital
23
2.2
2.2
Share premium
62.7
62.7
Translation reserve
12.7
(2.4)
Retained earnings
2,210.8
2,164.3
Total equity
2,288.4
2,226.8
These financial statements were authorised for issue by the Board of Directors on 14 January 2026 and signed on its behalf by:
S Clinton F Vecchioli
Chief Financial Officer Chief Executive Officer
Company registration number: 04726380
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Consolidated balance sheet
as at 31 October 2025
Group
ShareShareTranslationRetained
capitalpremiumreserveearningsTotal
£’m£’m£’m£’m£’m
Balance at 1 November 2023
2.2
62.0
12.7
1,858.2
1,935.1
Comprehensive income
Profit for the year
—
—
—
372.3
372.3
Other comprehensive income
Currency translation differences
—
—
(22.0)
—
(22.0)
Net investment hedge
—
—
6.9
—
6.9
Total other comprehensive income
—
—
(15.1)
—
(15.1)
Total comprehensive income
—
—
(15.1)
372.3
357.2
Transactions with owners
Dividends (note 9)
—
—
—
(65.9)
(65.9)
Increase in share capital and share premium
—
0.7
—
—
0.7
Employee share options
—
—
—
(0.3)
(0.3)
Transactions with owners
—
0.7
—
(66.2)
(65.5)
Balance at 1 November 2024
2.2
62.7
(2.4)
2,164.3
2,226.8
Comprehensive income
Profit for the year
—
—
—
111.1
111.1
Other comprehensive income
Currency translation differences
—
—
32.4
—
32.4
Net investment hedge
—
—
(17.3)
—
(17.3)
Total other comprehensive income
—
—
15.1
—
15.1
Total comprehensive income
—
—
15.1
111.1
126.2
Transactions with owners
Dividends (note 9)
—
—
—
(66.6)
(66.6)
Employee share options
—
—
—
2.0
2.0
Transactions with owners
—
—
—
(64.6)
(64.6)
Balance at 31 October 2025
2.2
62.7
12.7
2,210.8
2,288.4
The translation reserve balance of £1 2 . 7 million (FY 2024: £( 2. 4) 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 income of £1 3.2 million (FY 2024: £4. 1 million).
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Consolidated statement of changes in shareholders’ equity
for the year ended 31 October 2025
Group
20252024
Notes £’m£’m
Cash flows from operating activities
Cash generated from operations
24
138.5
133.1
Interest received
0.3
0.1
Interest paid
(35.3)
(31.2)
Tax paid
(3.6)
(6.1)
Net cash inflow from operating activities
99.9
95.9
Cash flows from investing activities
Investment in joint ventures and associates
11, 12
(38.9)
(2.5)
Expenditure on investment properties
(106.1)
(118.3)
Net proceeds from disposal of investment properties
6.0
—
Purchase of property, plant and equipment
(3.1)
(1.8)
Net cash outflow from investing activities
(142.1)
(122.6)
Cash flows from financing activities
Issue of share capital
—
0.7
Equity dividends paid
9
(66.6)
(65.9)
Proceeds from borrowings
230.5
173.8
Repayment of borrowings
(124.0)
(62.2)
Debt issuance costs
(1.3)
(1.3)
Principal payment of lease liabilities
(10.3)
(9.7)
Net cash inflow from financing activities
28.3
35.4
Net (decrease)/increase in cash and cash equivalents
(13.9)
8.7
Exchange loss on cash and cash equivalents
(0.4)
(0.3)
Cash and cash equivalents at 1 November
25.3
16.9
Cash and cash equivalents at 31 October
17
11.0
25.3
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138
Consolidated cash flow statement
for the year ended 31 October 2025
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 material 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.
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 2025, 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 financial plans, in particular the projections for the period to 30 April 2027,
approved by the Board. In the context of the current environment, plausible downside 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 which are set out on
pages 38 to 42. These scenarios are differentiated by the impact of lower demand levels, lower average rate growth and what level of cost
savings is reasonable. 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.
The impact of the downside 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 occur, clear mitigating actions are available to ensure that the Group remains liquid and able
to meet its liabilities as they fall due. The Group has USPPs totalling £96.5 million maturing on 30 October 2026. The Group has consistently
demonstrated its ability to raise new debt, including through the arrangement of £147.5 million of new financing in the form of USPPs and a
Term loan in FY 2024 and FY 2025. Management continues to discuss options for refinancing upcoming maturities with lenders and advisers
with multiple sources of new debt being available. The Board is therefore confident with the assumption within the Going Concern assessment
that the maturing USPPs will be refinanced. 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 44.
Standards, amendments to standards and interpretations issued and applied
There are no new or revised accounting standards or IFRIC interpretations that are applicable for the first time in the year ended
31 October 2025.
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.
• IFRS S1 “General Requirements for Disclosure of Sustainability-related Financial Information”
• IFRS S2 “Climate-related Disclosures”
• IFRS 18 “Presentation and Disclosure in Financial Statements”
• IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
• Amendments to IFRS 9 and IFRS 7
IFRS 18, which replaces IAS 1, requires the classification of all income and expenses into five categories in the consolidated income statement:
operating, investing, financing, income taxes, and discontinued operations. Additionally, companies are required to present a newly defined
operating profit subtotal. Among other impacts, net profit/(loss) from joint ventures and associates will be excluded from the new operating
profit subtotal and classified in the investing category. While recognition and measurement of items will remain unchanged, the presentation
in the consolidated income statement will be affected. From a statement of cash flows perspective, the starting point for calculating cash
flows from operating activities will change from profit before income tax to operating profit. IFRS 18 also introduces new requirements for the
disclosure of information about certain company-specific measures of performance, termed management-defined performance measures
(“MPMs”); all information about MPMs must be disclosed in a single note to the financial statements.
The Directors do not expect the other new and revised standards to have a material impact on the financial statements of the Group
or Company.
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Notes to the financial statements
for the year ended 31 October 2025
2. Summary of material 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.
Investment in joint ventures
A joint venture is an entity over which the Group has joint control, through participation in the financial and operating policy decisions of the
investee. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require unanimous consent of the parties sharing control. The results and assets and liabilities of the joint venture are incorporated
in these financial statements using the equity method of accounting except when classified as held for sale. Investments in joint ventures 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 joint venture, less any
impairment in the value of individual investments. Losses of a joint venture in excess of the Group’s interest in that joint venture (which includes
any long term interests that, in substance, form part of the Group’s net investment in the joint venture) are recognised only to the extent that
the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. Where necessary, adjustments are
made to the financial statements of joint ventures to bring the accounting policies used into line with those used by the Group. Where a Group
company transacts with a joint venture of the Group, profits and losses are eliminated to the extent of the Group’s interest in the relevant joint
venture. 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 is 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
(c) for which discrete financial information is available.
The Group’s net assets, revenue and profit before tax are attributable to one principal activity, the provision of self-storage, in three
geographical reporting segments: the United Kingdom, Paris in France, and Expansion Markets which is defined as Spain, the Netherlands,
and Belgium.
Segment results, assets and liabilities include items directly attributable to segments as well as those that can be allocated on a
reasonable basis.
Safestore Holdings plc | Annual report and financial statements 2025
140
Notes to the financial statements continued
for the year ended 31 October 2025
2. Summary of material accounting policies continued
Revenue recognition
Revenue represents amounts derived from the provision of self-storage services (rental space and customer goods protection) 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. Customer goods protection 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 protection arrangements whereby it purchases block policies from third party assurers which provide cover for
the value of customers’ goods. The Group charges a fee to customers for such goods protection, depending on the level of cover. The block
policies purchased and the income earned from charging customers are independent transactions. Although the Group may be involved in the
initial handling of any customers’ goods protection claims, these are passed on to the third party protection providers, which are responsible for
all protection payments. The Group is not exposed to protection risk.
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 protection services for its customers who elect to access that protection, and therefore revenue from protection premiums is
reported on a gross basis.
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 sale of consumable items is recognised at the point of sale.
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, unless the fair value of investment properties under
construction are not yet reliably measurable, in which case they would be held at cost.
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 liabilities, including lease
liabilities in respect of leasehold land and buildings classified as investment properties.
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.
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.
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
2. Summary of material accounting policies continued
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.
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.
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.
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.
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.
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 .
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142
Notes to the financial statements continued
for the year ended 31 October 2025
2. Summary of material accounting policies continued
Financial instruments continued
(a) Financial assets continued
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.
(c) Financial liabilities
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 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.
(d) Derivative financial instruments
The Group uses derivative financial instruments, such as interest rate swaps, to hedge risks associated with fluctuations on borrowings. Hedge
accounting is used to represent the economic effects of the Group’s interest rate risk management strategy. When interest rate swaps meet the
criteria for documentation and hedge effectiveness, hedge accounting is applied.
At inception of the hedging relationship, the following matters are documented in accordance with IFRS 9:
• how the hedging relationship meets the hedge accounting criteria;
• the economic relationship between the hedged item and hedging instrument;
• the nature of the risk, the risk management objective and the strategy for undertaking the hedge; and
• the method used to assess the effectiveness of the hedging relationship at inception and on an ongoing basis.
Derivative financial instruments are presented as assets when their fair value is positive, and as liabilities when their fair value is negative.
The notional amounts of these contracts are not recorded on the balance sheet.
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OVERVIEW
2. Summary of material accounting policies continued
Financial instruments continued
(d) Derivative financial instruments continued
To the extent that a hedging relationship is effective, any changes in the fair value of derivative financial instruments are recognised initially
in other comprehensive income and are presented in a separate cash flow hedge reserve within equity. These amounts are then recycled to
the income statement in the periods in which the hedged item impacts the income statement. Any ineffective portion of a derivative financial
instrument would be immediately recognised within finance expenses in the income statement. When a derivative financial instrument expires,
is sold, or no longer meets the criteria for hedge accounting, any cumulative gains/losses held in equity at that time remain in equity and are
only recognised when the hedged item is ultimately recognised in the income statement.
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. See note 20 for details
about financial instruments.
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 either never taxable or deductible or are taxable or deductible in other years. The
Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided, on an undiscounted basis, for temporary differences between the balance sheet value and the tax base value of items
that may become taxable at a later date. 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.
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.
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.
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.
Critical accounting judgements and 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.
There were no critical accounting judgements made in the preparation of the consolidated financial statements.
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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Notes to the financial statements continued
for the year ended 31 October 2025
2. Summary of material accounting policies continued
Critical accounting judgements and 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 their cash flows.
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 EBITDAR is an Alternative Performance Measure and is defined as operating profit before exceptional items, share-based
payments, corporate transaction costs, change in value of derivatives, gain/loss on investment properties, depreciation, net profit from joint
ventures and associates, 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 investment
properties, and the impact of exceptional credits, costs, and finance charges. A reconciliation of statutory operating profit to Underlying
EBITDAR 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, exceptional and non-operating items, gain/loss on investment
properties, and the associated tax impacts. The Company then makes further company-specific adjustments for the impact of net exchange
gains/losses recognised in net finance costs 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 10.
• 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 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:
2025 2024
£’m £’m
Self-storage income
196.5
186.6
Customer goods protection income
26.1
25.1
Other non-storage income
11.7
11.7
Total revenue
234.3
223.4
Other non-storage income includes fees earned from the management of self-storage businesses carried on by joint ventures and associates
and from sales of merchandise.
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OVERVIEW
4. Segmental analysis
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 three operating segments, based on geographical areas, being the United Kingdom, Paris in France,
and Expansion Markets (Spain, the Netherlands, and Belgium).
The chief operating decision maker, being the Executive Directors, assesses the performance of the operating segments on the basis of
Underlying EBITDAR, which is defined as operating profit before exceptional items, share-based payments, corporate transaction costs,
change in value of derivatives, gain/loss on investment properties, depreciation, net profit from joint ventures and associates, 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.
Expansion
UK Paris Markets Group
Year ended 31 October 2025 £’m £’m £’m £’m
Continuing operations
Revenue
167.5
44.6
22.2
234.3
Underlying EBITDAR
96.9
29.8
10.3
137.0
Share-based payments
(1.2)
0.1
—
(1.1)
Exceptional costs
(0.6)
—
(0.1)
(0.7)
Depreciation
(1.3)
(0.1)
(0.1)
(1.5)
Share of joint ventures’ and associates’ profit
—
—
2.5
2.5
Gain on investment properties
(14.9)
12.6
25.4
23.1
Operating profit
78.9
42.4
38.0
159.3
Net finance expense
(23.3)
(2.9)
(6.0)
(32.2)
Profit before tax
55.6
39.5
32.0
127.1
Total investment properties
2,350.3
747.9
381.9
3,480.1
Total investments in joint ventures and associates
—
1.8
49.1
50.9
Expansion
UK Paris Markets Group
Year ended 31 October 2024 £’m £’m £’m £’m
Continuing operations
Revenue
162.2
43.7
17.5
223.4
Underlying EBITDAR
99.3
28.7
7.4
135.4
Share-based payments
(0.1)
(0.1)
(0.1)
(0.3)
Depreciation
(1.4)
(0.1)
—
(1.5)
Gain on investment properties
226.8
40.9
24.5
292.2
Operating profit
324.6
69.4
31.8
425.8
Net finance expense
(17.2)
(1.3)
(8.7)
(27.2)
Profit before tax
307.4
68.1
23.1
398.6
Total investment properties
2,293.2
668.6
322.3
3,284.1
Total investments in joint ventures and associates
—
1.8
4.8
6.6
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.
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Notes to the financial statements continued
for the year ended 31 October 2025
5. Operating profit
The following items have been charged/(credited) in arriving at operating profit:
2025 2024
Notes £’m £’m
Staff costs
26
37.1
30.9
Inventories: cost of inventories recognised as an expense (included in cost of sales)
1.2
1.0
Exceptional costs
0.7
—
Depreciation on property, plant, and equipment
14
1.5
1.5
Gain on revaluation of investment properties
13
(23.1)
(292.2)
6. 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:
2025 2024
£’m £’m
Audit services
Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated
0.5
0.4
financial statements
Fees payable to the Company’s auditor and its associates for the audit of the Company’s subsidiaries pursuant
0.1
0.1
to legislation
Total audit fees
0.6
0.5
Audit-related assurance services (half year review)
0.1
0.1
Other assurance services
—
0.1
Total non-audit services
0.1
0.2
Total
0.7
0.7
7. Finance income and costs
2025 2024
£’m £’m
Finance income
Other interest and similar income
0.3
0.1
Interest receivable from loan to associates
0.2
—
Underlying finance income
0.5
0.1
Total finance income
0.5
0.1
Finance costs
Interest payable on borrowings
(25.5)
(19.9)
Amortisation of debt issuance costs on borrowings
(1.4)
(1.6)
Underlying finance charges
(26.9)
(21.5)
Interest on lease liabilities
(5.8)
(5.8)
Total finance costs
(32.7)
(27.3)
Net finance costs
(32.2)
(27.2)
The capitalisation rate of interest is based on the incremental cost of RCF borrowings.
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OVERVIEW
8. Income tax charge
Analysis of tax charge in the year:
2025 2024
Note £’m £’m
Current tax:
– current year
4.5
4.3
– prior year
(0.1)
—
4.4
4.3
Deferred tax:
– current year
14.4
21.7
– prior year
(2.8)
0.3
22
11.6
22.0
Tax charge
16.0
26.3
Reconciliation of income tax charge
The tax for the period is lower (FY 2024: lower) than the standard rate of corporation tax in the UK for the year ended 31 October 2025 of 25%
(FY 2024: 25%). The differences are explained below:
2025 2024
£’m £’m
Profit before tax
127.1
398.6
Profit before tax multiplied by the standard rate of corporation tax in the UK of 25% (FY 2024: 25%)
31.8
99.7
Effect of:
– permanent differences
3.0
1.5
– profits from the tax exempt business
(17.2)
(78.2)
– difference from overseas tax rates
0.4
1.5
– potential deferred tax assets not recognised
0.9
1.7
– prior year adjustment
(2.9)
0.1
Tax charge
16.0
26.3
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.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
9. Dividends per share
Dividends paid in 2025 were £66.6 million (30.50 pence per share) (FY 2024: £65.9 million (30.20 pence per share)). A final dividend in respect of
the year ended 31 October 2025 of 20.6 pence (FY 2024: 20.40 pence) per share, amounting to a total final dividend of £45.0 million (FY 2024:
£44.6 million), is to be proposed at the AGM on 18 March 2026. The ex-dividend date will be 12 March 2026 and the record date will be
13 March 2026 with an intended payment date of 14 April 2026. The final dividend has not been included as a liability at 31 October 2025.
The Property Income Distribution (“PID”) element of the final dividend is 10.30 pence (FY 2024: 15.30 pence), making the PID payable for the
year 12.83 pence (FY 2024: 17.80 pence) per share.
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Notes to the financial statements continued
for the year ended 31 October 2025
10. 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 2025
Year ended 31 October 2024
Earnings Shares Pence Earnings Shares Pence
£’m million per share £’m million per share
Basic EPS
111.1
218.4
50.9
372.3
218.3
170.5
Dilutive securities
—
1.3
(0.3)
—
0.6
(0.4)
Diluted EPS
111.1
219.7
50.6
372.3
218.9
170.1
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 145. Adjusted EPS represents profit after tax adjusted for the valuation movement
on investment properties, exceptional items, non-underlying joint venture and associate earnings, and exchange gains/losses.
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 and movements on revaluations of investment properties have been disclosed to give a clearer
understanding of the Group’s underlying trading performance.
Year ended 31 October 2025
Year ended 31 October 2024
Earnings Shares Pence Earnings Shares Pence
£’m million per share £’m million per share
Basic EPS
111.1
218.4
50.9
372.3
218.3
170.5
Adjustments:
Gain on revaluation of investment properties
(23.1)
—
(10.6)
(292.2)
—
(133.9)
Exceptional items
0.7
—
0.3
—
—
—
Fair value re-measurement of investment
(10.3)
—
(4.7)
(9.7)
—
(4.5)
properties lease liabilities
Non-underlying joint venture and associate
(2.6)
—
(1.2)
—
—
—
earnings
Tax on adjustments
11.6
—
5.4
22.0
—
10.1
Adjusted Basic EPRA EPS
87.4
218.4
40.1
92.4
218.3
42.2
Share-based payments charge
1.1
—
0.5
0.3
—
0.1
Dilutive shares
—
1.3
(0.3)
—
0.9
—
Adjusted Diluted EPRA EPS
1
88.5
219.7
40.3
92.7
219.2
42.3
Note:
1 Adjusted Diluted EPRA EPS is defined in note 2 under Non-GAAP financial information/Alternative Performance Measures, on page 145.
Gain on revaluation of investment properties includes the fair value re-measurement of investment properties lease liabilities of £10.3 million
(FY 2024: £9.7 million) and the related tax thereon of £1.0 million (FY 2024: £1.1 million). The exceptional items of £0.7 million (FY 2024: £nil)
relate to one-off development costs of a new SAAS-based finance computer system. As an industry standard measure, EPRA earnings is
presented. EPRA earnings of £87.4 million (FY 2024: £92.4 million) and Adjusted Basic EPRA Earnings per Share of 40.1 pence (FY 2024:
42.2 pence) are calculated after further adjusting for these items.
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OVERVIEW
11. Investment in associates
PBC
CERF II
Total
2025 2024 2025 2024 2025 2024
£’m £’m £’m £’m £’m £’m
At 1 November 2024
1.8
1.8
4.8
2.3
6.6
4.1
Additions
—
—
—
2.5
—
2.5
Share of profit
—
—
(0.4)
—
(0.4)
—
Exchange movements
—
—
0.3
—
0.3
—
At 31 October 2025
1.8
1.8
4.7
4.8
6.5
6.6
This is a reconciliation of IFRS to EPRA share of profits for each associate:
PBC
CERF II
Total
2025 2024 2025 2024 2025 2024
Group’s share £’m £’m £’m £’m £’m £’m
Statutory profit after tax
—
—
(0.4)
—
(0.4)
—
Adjusted for:
Fair value re-measurement of investment
—
—
(0.2)
—
(0.2)
—
properties lease liabilities
Adjusted Basic EPRA earnings
—
—
(0.6)
—
(0.6)
—
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
finished developing one new store in the current year and continues its 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 (FY 2024: £nil). The aggregate carrying value of the Group’s interest in PBC was £1.8
million (FY 2024: £1.8 million). The Group’s share of profits from continuing operations for the period was £nil (FY 2024: £nil). The Group’s share
of other comprehensive income of associates for the period was £nil (FY 2024: £nil).
CERF II German Storage Topco S.a.r.l.
The Group has 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 CERF II 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 £4.7 million (FY 2024: £4.8 million). The Group’s share of losses from continuing operations for the
period was £0.4 million (FY 2024: £nil). The Group’s share of other comprehensive income of associates for the period was £nil (FY 2024: £nil).
12. Investment in joint venture
EasyBox
2025 2024
£’m £’m
At 1 November 2024
—
—
Additions
38.9
—
Share of profit
2.9
—
Exchange movements
2.6
—
At 31 October 2025
44.4
—
This is a reconciliation of IFRS to EPRA share of profits for the joint venture:
EasyBox
2025 2024
Group’s share £’m £’m
Statutory profit after tax
2.9
—
Adjusted for:
Gain on investment properties and investment properties under construction
(2.4)
—
Adjusted Basic EPRA earnings
0.5
—
EasyBox
On 23 December 2024, the Group entered into a 50:50 joint venture with Nuveen to acquire the EasyBox self-storage business
1
in Italy. EasyBox
has twelve operating stores, all of which are located in key cities in Italy. The reporting date of the financial statements for EasyBox is 31 December.
EasyBox is accounted for using the equity method of accounting. The aggregate carrying value of the Group’s interest in EasyBox was £44.4 million
(FY 2024: £nil). The Group’s share of profits from continuing operations for the nine-month period ending 30 September 2025 was £2.9 million
(FY 2024: £nil). The Group’s share of other comprehensive income of associates for the period was £nil (FY 2024: £nil).
Note:
1 The EasyBox self-storage business refers to the Group’s investments in EasyBox Self-Storage S.p.A. and the Italian Self Storage Fund – Fondo di Investimento Alternativo
Immobiliare Riservato.
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Notes to the financial statements continued
for the year ended 31 October 2025
13. Investment properties
Investment Investment Investment Total
properties, net of properties lease property under investment
lease liabilities liabilities construction properties
£’m £’m £’m £’m
At 1 November 2024
3,052.8
100.6
130.7
3,284.1
Additions
28.8
21.7
81.3
131.8
Disposals
(6.0)
(1.9)
—
(7.9)
Reclassification at completed cost
100.9
—
(100.9)
—
Revaluations
23.3
—
10.1
33.4
Fair value re-measurement of investment properties lease liabilities
—
(10.3)
—
(10.3)
Exchange movements
46.1
1.3
1.6
49.0
At 31 October 2025
3,245.9
111.4
122.8
3,480.1
Investment Investment Investment Total
properties, net of properties lease property under investment
lease liabilities liabilities construction properties
£’m £’m £’m £’m
At 1 November 2023
2,681.1
101.2
108.6
2,890.9
Additions
45.9
11.7
80.0
137.6
Disposals
—
(1.6)
—
(1.6)
Reclassification at completed cost
56.1
—
(56.1)
—
Revaluations
301.9
—
—
301.9
Fair value re-measurement of investment properties lease liabilities
—
(9.7)
—
(9.7)
Exchange movements
(32.2)
(1.0)
(1.8)
(35.0)
At 31 October 2024
3,052.8
100.6
130.7
3,284.1
The Group acquired the freehold of the Plymouth, UK, property in January 2025. This resulted in the disposal of lease liabilities with a carrying
value of £1.9 million.
The gain on investment properties, net of lease liabilities, comprises:
Revaluation
Cost on cost Valuation
£’m £’m £’m
Freehold stores
At 1 November 2024
1,094.8
1,470.4
2,565.2
Movement in year
126.6
59.1
185.7
At 31 October 2025
1,221.4
1,529.5
2,750.9
Leasehold stores
At 1 November 2024
164.2
323.4
487.6
Movement in year
12.3
(4.9)
7.4
At 31 October 2025
176.5
318.5
495.0
All stores
At 1 November 2024
1,259.0
1,793.8
3,052.8
Movement in year
138.9
54.2
193.1
At 31 October 2025
1,397.9
1,848.0
3,245.9
2025 2024
£’m £’m
Revaluations of investment property and investment property under construction
33.4
301.9
Fair value re-measurement of investment properties lease liabilities
(10.3)
(9.7)
Gain on revaluation of investment properties
23.1
292.2
Rental income earned from investment properties for the year ended 31 October 2025 was £196.5 million (FY 2024: £186.6 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.
All direct operating expenses arising from investment property that generated rental income as outlined in note 3 were £97.3 million (FY 2024:
£88.0 million).
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FINANCIAL STATEMENTS
OVERVIEW
13. Investment properties continued
The freehold and leasehold investment properties have been valued as at 31 October 2025 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 (the 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 2025 averages 89.0% (FY 2024:
90.9%). 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 15.7 months (FY 2024: 12.1 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.
• The average freehold exit yield on UK freeholds is 5.36% (FY 2024: 5.21%), on France freeholds is 5.20% (FY 2024: 5.22%), on Spain
freeholds is 5.72% (FY 2024: 5.49%), on the Netherlands freeholds is 5.13% (FY 2024: 4.99%), and on Belgium freeholds is 4.90% (FY 2024:
4.77%). The average freehold exit yield for all freeholds adopted is 5.32% (FY 2024: 5.19%).
• 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 average annual discount rate adopted (for both freeholds and leaseholds) in the UK portfolio is 9.19%
(FY 2024: 8.81%), in the France portfolio is 8.75% (FY 2024: 8.76%), in the Spain portfolio is 8.80% (FY 2024: 8.60%), in the Netherlands
portfolio is 8.55% (FY 2024: 7.26%), and in the Belgium portfolio is 8.41% (FY 2024: 8.12%). The average annual discount rate adopted
(for both freeholds and all leaseholds) is 9.02% (FY 2024: 8.66%).
• The Group’s investment property assets have been valued for the purposes of the financial statements after adjusting for notional purchaser’s
costs of approximately 6.65% (UK), 8.00% (Paris), 3.99% (Spain), 11.40% (the Netherlands), and 13.00% (Belgium) if they were sold directly
as property assets. Sales plus purchaser’s costs totalling approximately 7.90% (UK), 9.25% (Paris), 5.24% (Spain), 12.65% (the Netherlands),
and 14.25% (Belgium) are assumed on the notional sales in the tenth year in relation to freehold and long leasehold stores. 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.2.0% of gross value. All the significant sized transactions that have been concluded in the UK in
recent years were completed in a corporate structure.
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Notes to the financial statements continued
for the year ended 31 October 2025
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.
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 allow 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.
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
Investment properties under construction are initially measured at cost, including related transaction and borrowing costs. After initial recognition,
investment properties under construction are held at fair value based on a market valuation by C&W at each balance sheet date, unless
development of the property is not yet certain, in which case investment properties under construction would be held at cost. To establish
certainty, the Group considers whether planning is unconditional, funding is in place, a full business case has been approved by the Board,
and there is full control over the site.
C&W have valued investment properties under construction adopting the same methodology as set out above, which includes in any fair value
calculation, the estimated costs of completion for each site, within the future cash flow forecasts.
Immature stores
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 have 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.
Sensitivity of the valuation to assumptions
As noted in ‘Key sources of estimation uncertainty’ on pages 144 and 145, 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 change in Impact of a change in stabilised Impact of a delay in stabilised
capitalisation rates occupancy assumption occupancy assumption
£’m £’m £’m
25 bps decrease
25 bps increase
1% increase
1% decrease
24-month delay
Reported group
151.2
(137.2)
50.6
(50.4)
(39.2)
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OVERVIEW
14. Property, plant and equipment
Owner-occupied Fixtures
buildings Motor vehicles and fittings IFRS 16 leases Total
£’m £’m £’m £’m £’m
Cost
At 1 November 2024
1.9
1.8
10.9
0.6
15.2
Additions
—
0.4
2.5
0.2
3.1
Disposals
—
(0.1)
(0.2)
—
(0.3)
At 31 October 2025
1.9
2.1
13.2
0.8
18.0
Accumulated depreciation
At 1 November 2024
0.2
0.9
7.8
0.6
9.5
Charge for the year
—
0.3
1.1
0.1
1.5
Disposals
—
(0.1)
(0.1)
—
(0.2)
At 31 October 2025
0.2
1.1
8.8
0.7
10.8
Net book value
At 31 October 2025
1.7
1.0
4.4
0.1
7.2
At 31 October 2024
1.7
0.9
3.1
—
5.7
Owner-occupied Motor Fixtures IFRS 16
buildings vehicles and fittings leases Total
£’m £’m £’m £’m £’m
Cost
At 1 November 2023
1.7
1.4
9.5
0.6
13.2
Additions
0.2
0.4
1.4
—
2.0
At 31 October 2024
1.9
1.8
10.9
0.6
15.2
Accumulated depreciation
At 1 November 2023
0.2
0.6
6.8
0.4
8.0
Charge for the year
—
0.3
1.0
0.2
1.5
At 31 October 2024
0.2
0.9
7.8
0.6
9.5
Net book value
At 31 October 2024
1.7
0.9
3.1
—
5.7
At 31 October 2023
1.5
0.8
2.7
0.2
5.2
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 the primary measure of net assets. 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.
The basic and diluted net assets per share have been calculated based on the following number of shares:
2025 2024
Number Number
Shares in issue
At year end
218,490,500
218,490,500
Adjustment for Employee Benefit Trust (treasury) shares
(70,531)
(75,397)
IFRS/EPRA number of shares (basic)
218,419,969
218,415,103
Dilutive effect of Save As You Earn shares
84,752
7,769
Dilutive effect of Long Term Incentive Plan shares
1,194,321
567,621
IFRS/EPRA number of shares (diluted)
219,699,042
218,990,493
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154
Notes to the financial statements continued
for the year ended 31 October 2025
15. Net assets per share continued
EPRA NTA is shown in the table below:
2025
2024
Basic net Diluted net Basic net Diluted net
Net assets assets per share assets per share Net assets assets per share assets per share
£’m pence pence £’m pence pence
Statutory net asset value
2,288.4
1,048
1,042
2,226.8
1,020
1,017
Adjustments to exclude:
Deferred tax liabilities on the revaluation
of investment properties
176.7
155.4
EPRA net asset value
2,465.1
1,129
1,122
2,382.2
1,091
1,088
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 1,279,073 shares (FY 2024: 575,390 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 £2,465.1 million (FY 2024: £2,382.2 million), giving
EPRA NTA per share of 1,122 pence (FY 2024: 1,088 pence). The Directors consider that these alternative measures provide useful information
on the performance of the Group.
EPRA adjusted balance sheet (non-statutory)
2025 2024
£’m £’m
Assets
Non-current assets
3,547.0
3,302.7
Current assets
44.0
58.4
Total assets
3,591.0
3,361.1
Liabilities
Current liabilities
(165.9)
(65.8)
Non-current liabilities
(960.0)
(913.0)
Total liabilities
(1,125.9)
(979.0)
EPRA adjusted Net Asset Value
2,465.1
2,382.2
EPRA adjusted basic net assets per share
1,129 pence
1,091 pence
16. Trade and other receivables
2025 2024
£’m £’m
Current
Trade receivables
25.2
21.9
Less: credit loss allowance
(8.7)
(6.6)
Trade receivables – net
16.5
15.3
Other receivables
9.0
7.3
Prepayments
6.1
9.1
31.6
31.7
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.
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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FINANCIAL STATEMENTS
OVERVIEW
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 (%)
—
8.7%
25.0%
44.3%
6.8%
Estimated total gross carrying amount at default (£’m)
7.7
2.3
1.2
0.7
11.9
Lifetime ECL (£’m)
—
(0.2)
(0.3)
(0.3)
(0.8)
Net trade receivables as at 31 October 2025
7.7
2.1
0.9
0.4
11.1
France
Not past due
<28 days
29–60 days
>60 days
Total
Expected credit loss rate (%)
—
9.9%
25.5%
74.0%
62.3%
Estimated total gross carrying amount at default (£’m)
0.7
1.0
0.5
9.8
12.0
Lifetime ECL (£’m)
—
(0.1)
(0.1)
(7.3)
(7.5)
Net trade receivables as at 31 October 2025
0.7
0.9
0.4
2.5
4.5
UK
Not past due
<28 days
29–60 days
>60 days
Total
Expected credit loss rate (%)
—
11.8%
20.0%
83.3%
8.4%
Estimated total gross carrying amount at default (£’m)
7.4
1.7
1.0
0.6
10.7
Lifetime ECL (£’m)
—
(0.2)
(0.2)
(0.5)
(0.9)
Net trade receivables as at 31 October 2024
7.4
1.5
0.8
0.1
9.8
France
Not past due
<28 days
29–60 days
>60 days
Total
Expected credit loss rate (%)
—
9.2%
25.8%
72.2%
56.3%
Estimated total gross carrying amount at default (£’m)
1.1
0.9
0.5
7.7
10.2
Lifetime ECL (£’m)
—
(0.1)
(0.1)
(5.5)
(5.7)
Net trade receivables as at 31 October 2024
1.1
0.8
0.4
2.2
4.5
Outstanding trade receivables for the Expansion Markets totalled less than £2 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:
2025 2024
£’m £’m
Balance at the beginning of the year
6.6
5.8
Amounts provided in the year
3.2
3.2
Amounts written off as uncollectable
(1.1)
(2.4)
Balance at the end of the year
8.7
6.6
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
2025 2024
£’m £’m
Sterling
17.2
19.2
Euros
14.4
12.5
31.6
31.7
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156
Notes to the financial statements continued
for the year ended 31 October 2025
17. Cash and cash equivalents
2025 2024
£’m £’m
Cash at bank and in hand
11.0
25.3
The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:
2025 2024
£’m £’m
Sterling
2.3
12.2
Euros
8.7
13.1
11.0
25.3
In the previous financial year, there was £0.9 million of restricted cash which related to the provision in note 27. The restricted cash was held
to settle any amounts owed to the French tax authorities pending results of the ongoing litigation. This cash was released to the Group in the
current financial year and there is £nil restricted cash as at 31 October 2025.
18. Trade and other payables
2025 2024
£’m £’m
Current
Trade payables
6.7
10.1
Other taxes and social security payable
7.1
4.3
Other payables
4.5
3.4
Accruals
17.7
15.7
Deferred income
18.0
18.3
54.0
51.8
The carrying amounts of the Group’s trade and other payables are denominated in the following currencies:
2025 2024
£’m £’m
Sterling
33.2
33.7
Euros
20.8
18.1
54.0
51.8
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FINANCIAL STATEMENTS
OVERVIEW
19. Borrowings
2025 2024
£’m £’m
USPP Notes
546.9
473.3
RCF – drawn
347.8
355.7
Term loan
68.2
—
Debt issue costs
(4.7)
(4.8)
958.2
824.2
As at 31 October 2025 the Group has US Private Placement Notes (“USPPs”) of €377.1 million (FY 2024: €307.1 million) which have maturities
between 2026 and 2033 with fixed-rate coupons of between 0.93% and 4.03% and of £215.5 million (FY 2024: £215.5 million) which have
maturities between 2026 and 2031 with fixed-rate coupons of between 1.96% and 2.92%. The weighted average cost of interest on the overall
USPPs at 31 October 2025 was 2.36% per annum. In addition, the Group has arranged a Revolving Credit Facility (“RCF”) with its relationship
banks. The RCF attracts a margin over SONIA/EURIBOR of between 1.25% and 1.45%, by reference to the Group’s performance against its
covenants.
In June 2025 the Group entered into a new Euro-denominated Term loan facility agreement for €77.5 million which has a maturity date of
30 June 2030. The interest on this loan has a fixed margin of between 1.25% and 1.45%, by reference to the Group’s performance against its
covenants, and a variable rate based on the three-month EURIBOR rate at the start of each quarter. At the same time, a matching interest rate
swap was entered into with the same maturity date with the effect of fixing the interest rate of the Term loan (see note 20).
The €654.6 million of Euro denominated borrowings provides a natural hedge against the Group’s investment in the Paris and Expansion
Markets businesses, so the Group has applied net investment hedge accounting and the retranslation of these borrowings is recognised
directly in the translation reserve.
Borrowings are stated after unamortised issue costs of £4.7 million (FY 2024: £4.8 million).
Borrowings are repayable as follows:
Group
2025 2024
£’m £’m
Within one year
96.5
—
Between one and two years
65.1
93.7
Between two and five years
634.3
630.9
After more than five years
167.0
104.4
Borrowings
962.9
829.0
Unamortised debt issue costs
(4.7)
(4.8)
958.2
824.2
The effective interest rates at the balance sheet date were as follows:
2025
2024
USPP Notes – GBP
2.55%
2.55%
USPP Notes – EUR
2.24%
1.83%
RCF – GBP
Monthly, quarterly or six-monthly SONIA
Monthly, quarterly or six-monthly SONIA
plus 1.25% plus 1.25%
RCF – EUR
Monthly, quarterly or six-monthly EURIBOR
Monthly, quarterly or six-monthly EURIBOR
plus 1.25% plus 1.25%
Term loan –
EUR
Three-month EURIBOR plus 1.25%
—
In addition to the margin of 1.25%, the RCF and Term loan also had ESG targets enabling a reduction in the margin of up to 5bps to 1.20%.
In the period these targets were all met.
Safestore Holdings plc | Annual report and financial statements 2025
158
Notes to the financial statements continued
for the year ended 31 October 2025
19. Borrowings continued
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
2025 2024
£’m £’m
Sterling
387.5
464.5
Euros
575.4
364.5
962.9
829.0
Borrowing facilities
The Group has the following undrawn committed borrowing facilities available at 31 October 2025 in respect of which all conditions precedent
had been met at that date:
Floating rate
2025 2024
£’m £’m
Expiring beyond one year
152.2
144.3
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 interest rate risk, liquidity risk, credit risk and foreign exchange risk. The overall aim of the Group’s financial risk management policies is to
minimise potential adverse effects on financial performance and Net Asset Value (“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, and borrowings. 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 £3.5 million (FY 2024: £3.5 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, 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. Policies and procedures exist to ensure that customers have an
appropriate credit history and account customers are given credit limits that are monitored. 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 £16.1 million (FY 2024: £15.6 million).
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159
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
20. Financial instruments continued
Financial risk management continued
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 currency.
The Group holds Euro denominated borrowings totalling €654.6 million (FY 2024: €364.5 million) and as such is exposed to foreign exchange
risk on these borrowings. The foreign exchange risk relating to the borrowings provides a natural hedge against the Euro denominated assets
of its operations in France, Spain, the Netherlands, and Belgium and is 100% effective. As a result, the Group applies net investment hedging
in respect of these borrowings and the reduction in fair value during the year of £17.3 million (FY 2024: £6.9 million increase) was recognised in
other comprehensive income.
At 31 October 2025, if Sterling had weakened by 10% against the Euro with all other variables held constant, pre-tax profit for the year would
have been unchanged due to Euro bank balances held by UK entities (FY 2024: £0.1 million lower). Equity (the translation reserve) would have
been £18.4 million higher (FY 2024: £34.7 million higher), arising primarily on translation of Euro denominated net assets held by subsidiary
companies with a Euro functional currency less the Euro denominated borrowings.
The Group is not exposed to significant transaction foreign exchange risk as purchases are invoiced in either Sterling or Euros.
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 a loan-to-value (“LTV”) ratio. The Group considers that an LTV
ratio, defined as net debt (excluding derivatives and 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 28.1% at 31 October 2025 (FY 2024: 25.1%).
The LTV ratios at 31 October 2025 and 2024 were as follows:
2025 2024
£’m £’m
Borrowings (note 19)
958.2
824.2
Lease liabilities (note 21)
111.4
100.6
Less: cash and cash equivalents (note 17)
(11.0)
(25.3)
Net debt
1,058.6
899.5
Less: lease liabilities
(111.4)
(100.6)
Net debt (excluding lease liabilities)
947.2
798.9
IPs and IPUCs (excluding investment property lease liabilities)
3,368.7
3,183.5
Loan-to-value ratio
28.1%
25.1%
The Group gearing ratio is defined as total net debt divided by total capital. Total 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 ratio was 31.6% at 31 October 2025
(FY 2024: 28.8%).
The Group has complied with all of the covenants on its banking facilities during the year.
The fair value of borrowings is calculated as:
2025
2024
Book value Fair value Book value Fair value
£’m £’m £’m £’m
Borrowings
958.2
931.8
824.2
759.6
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.
Safestore Holdings plc | Annual report and financial statements 2025
160
Notes to the financial statements continued
for the year ended 31 October 2025
20. Financial instruments continued
Financial risk management continued
Fair value hierarchy continued
The table below shows the level in the fair value hierarchy into which fair value measurements have been categorised:
2025 2024
Assets per the balance sheet £’m £’m
Amounts due from associates – Level 2
0.7
0.5
2025 2024
Liabilities per the balance sheet £’m £’m
Borrowings – Level 2
962.9
829.0
There were no transfers between Level 1, 2, and 3 fair value measurements during the current or prior year.
Hedging arrangements
The new Euro denominated Term loan facility agreement exposes the Group to a risk in the variability of interest payments due to possible
changes in the three-month EURIBOR rate over the five-year loan term. In accordance with the Group’s risk mitigation strategy, the variable
interest payments have been hedged in full using an interest rate swap which has a notional value of €77.5 million and a five-year term. The
variable interest rate on the swap is the three-month EURIBOR rate, and the fixed rate is 2.196%. Interest on the swap is paid on a quarterly
basis in line with the interest payable on the Term loan. As the swap shares the same risk exposure as the loan, the hedge effectiveness has
been assessed as 100%. The impact of credit risk is assessed to be immaterial. The swap and the Term loan together have been formally
designated as having a hedging relationship and are accounted for as a cash flow hedge.
Derivatives designated as cash flow hedges as at 31 October 2025
Notional Fair value of derivative liability Change in fair value of hedged
contract at year end based on fair value item used as a basis to
amount of hedged item Line item in statement of determine ineffectiveness Hedge effectiveness
£’m £’m financial position £’m %
Interest rate swap
68.2
—
Borrowings
—
100%
For the year ended 31 October 2025, £nil (FY 2024: £nil) was reclassified to the income statement in respect of hedge ineffectiveness.
Maturity profile of derivative financial instruments as at 31 October 2025
Less than Three to One to Three to
three months twelve months three years five years Total
£’m £’m £’m £’m £’m
Fixed payment
(0.4)
(1.1)
(3.0)
(2.5)
(7.0)
Floating receipt
0.3
1.0
2.9
2.8
7.0
Net (payment)/receipt
(0.1)
(0.1)
(0.1)
0.3
—
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
25.5
—
25.5
Cash and cash equivalents
11.0
—
11.0
At 31 October 2025
36.5
—
36.5
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)
958.2
—
958.2
Lease liabilities
111.4
—
111.4
Payables and accruals
28.9
—
28.9
At 31 October 2025
1,098.5
—
1,098.5
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
22.6
—
22.6
Cash and cash equivalents
25.3
—
25.3
At 31 October 2024
47.9
—
47.9
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161
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
20. Financial instruments continued
Financial risk management continued
Financial instruments by category continued
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)
824.2
—
824.2
Lease liabilities
100.6
—
100.6
Payables and accruals
29.2
—
29.2
At 31 October 2024
954.0
—
954.0
The interest rate risk profile, after taking account of derivative financial instruments, was as follows:
2025
2024
Floating rate Fixed rate Total Floating rate Fixed rate Total
£’m £’m £’m £’m £’m £’m
Borrowings
347.8
610.4
958.2
355.7
468.5
824.2
The weighted average interest rate of the fixed-rate financial borrowing was 2.48% (FY 2024: 2.16%) and the weighted average remaining period
for which the rate is fixed was 3.8 years (FY 2024: 4.3 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
31 October 2025
Borrowings
96.5
65.1
634.3
167.0
Lease liabilities
16.3
15.7
38.2
79.5
Payables and accruals
27.7
—
—
—
140.5
80.8
672.5
246.5
Less than One to two Two to five More than
one year years years five years
£’m £’m £’m £’m
31 October 2024
Borrowings
9.3
103.1
657.4
123.6
Lease liabilities
14.7
14.2
35.0
75.5
Payables and accruals
28.6
—
—
—
52.6
117.3
692.4
199.1
21. Lease liabilities
The Group leases certain of its investment properties under lease liabilities. The average remaining lease term is 13.6 years (FY 2024: 13.2 years).
Present value of minimum
Minimum lease payments lease payments
2025 2024 2025 2024
£’m £’m £’m £’m
Within one year
16.3
14.7
15.4
14.0
Within two to five years
53.9
49.2
46.0
42.3
Greater than five years
79.5
75.5
50.0
44.3
149.7
139.4
111.4
100.6
Less: future finance charges on lease liabilities
(38.3)
(38.8)
—
—
Present value of lease liabilities
111.4
100.6
111.4
100.6
Safestore Holdings plc | Annual report and financial statements 2025
162
Notes to the financial statements continued
for the year ended 31 October 2025
21. Lease liabilities continued
2025 2024
£’m £’m
Current
15.4
14.0
Non-current
96.0
86.6
111.4
100.6
Amounts recognised within the consolidated income statement include interest on lease liabilities of £5.8 million (FY 2024: £5.8 million). Amounts
recognised in the consolidated statement of cash flows include lease liabilities principal payments of £10.3 million (FY 2024: £9.7 million) and
interest on lease liabilities of £5.8 million (FY 2024: £5.8 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.
2025 2024
Note £’m £’m
At 1 November 2024
149.1
132.6
Charge to income statement
8
11.6
22.0
Exchange differences
7.2
(5.5)
At 31 October 2025
167.9
149.1
The movements in deferred tax assets and liabilities during the period are shown below.
Revaluation of
investment Other timing
properties differences Total
Deferred tax liability £’m £’m £’m
At 1 November 2023
139.2
—
139.2
Charge to income statement
21.7
—
21.7
Exchange differences
(5.5)
—
(5.5)
At 31 October 2024
155.4
—
155.4
At 1 November 2024
155.4
—
155.4
Charge to income statement
13.9
—
13.9
Exchange differences
7.4
—
7.4
At 31 October 2025
176.7
—
176.7
Other timing
differences Tax losses Total
Deferred tax asset £’m £’m £’m
At 1 November 2023
0.8
5.8
6.6
Charge to income statement
(0.2)
(0.1)
(0.3)
At 31 October 2024
0.6
5.7
6.3
At 1 November 2024
0.6
5.7
6.3
Credit to income statement
0.1
2.2
2.3
Exchange differences
—
0.2
0.2
At 31 October 2025
0.7
8.1
8.8
The deferred tax liability due after more than one year is £176.7 million (FY 2024: £155.4 million).
As at 31 October 2025, the Group had trading losses of £43.7 million (FY 2024: £34.3 million) and capital losses of £36.4 million (FY 2024: £36.4 million)
in respect of its UK operations.
As at 31 October 2025, the Group had trading losses of £9.2 million (FY 2024: £11.0 million) in respect of its Netherlands and Belgium operations.
As at 31 October 2025, the Group had trading losses of £8.2 million (FY 2024: £5.5 million) in respect of its Spanish operations.
All losses can be carried forward indefinitely. A deferred tax asset of £8.1 million (FY 2024: £5.7 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.
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163
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
23. Called up share capital
2025 2024
£’m £’m
Called up, allotted, and fully paid
218,490,500 (FY 2024:
218,490,500) ordinary shares of 1 pence each
2.2
2.2
Ordinary shares
The holders of the ordinary shares shall be entitled to one vote for each ordinary share.
During the year the Company issued nil ordinary shares (FY 2024: 451,081 ordinary shares).
Safestore Holdings plc Sharesave scheme
The Sharesave awards are savings-related awards accruing over a three-year period from 1 November 2024. 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
August 2025
(UK three years)
Number of options granted
136,738
Share price at grant date
(pence)
666
Exercise price
(pence)
523
Risk-free rate of interest
(% per annum)
3.78%
Expected volatility
(% per annum)
29.9%
Expected dividend yield
(% per annum)
4.58%
Expected term to exercise
(years)
3.23
Value per option
(pence)
174
Safestore Long Term Incentive Plan
2025 LTIP scheme
The fair values of the 2025 LTIP Scheme 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 January 2025
(PBT EPS part)
(MLA part)
(ESG part)
Number of options granted
733,128
281,972
112,789
Weighted average share price at grant date
(pence)
613
613
613
Exercise price
(pence)
—
—
—
Weighted average risk-free rate of interest
(% per annum)
4.20%
4.20%
4.20%
Expected volatility
(% per annum)
31.0%
31.0%
31.0%
Weighted average expected term to exercise
(years)
3.0
3.0
3.0
Weighted average value per option
(pence)
3.47
3.47
3.47
Retention scheme
The retention scheme awards granted in the accounting period accrue over a three-year period from 1 November 2025. There are no market
performance conditions attached to the awards; as such, the conditions for vesting are revenue, MLA, and personal performance targets.
The fair value of the 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:
Retention scheme
Number of options granted
558,452
Share price at grant date
(pence)
8.10
Exercise price
(pence)
—
Risk-free rate of interest
(% per annum)
3.99%
Expected volatility
(% per annum)
29.2%
Expected dividend yield
(% per annum)
3.73%
Expected term to exercise
(years)
3.29
Value per option
(pence)
716
Safestore Holdings plc | Annual report and financial statements 2025
164
Notes to the financial statements continued
for the year ended 31 October 2025
23. Called up share capital continued
Safestore Long Term Incentive Plan continued
Retention scheme 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
2024
Granted
Exercised
Lapsed
2025 price date
Safestore Holdings plc
Sharesave scheme
20/08/2021
19,160
—
—
(19,160)
—
824.0p
01/05/2025
22/08/2022
21,653
—
—
(11,419)
10,234
896.0p
01/05/2026
22/08/2023
112,078
—
—
(61,236)
50,842
692.0p
01/05/2027
14/08/2024
93,100
—
—
(69,424)
23,676
645.0p
01/05/2028
08/08/2025
—
136,738
—
(4,911)
131,827
522.8p
01/05/2029
Total
245,991
136,738
—
(166,150)
216,579
Safestore Long Term
Incentive Plan – 2017
05/02/2019
17,500
—
—
—
17,500
0.1p
28/09/2027
23/01/2020
5,731
—
(2,000)
—
3,731
0.1p
28/09/2027
Total
23,231
—
(2,000)
—
21,231
Safestore Long Term
Incentive Plan – 2020
18/03/2020
28,916
—
(739)
—
28,177
0.0p
17/03/2030
Total
28,916
—
(739)
—
28,177
Safestore Long Term
Incentive Plan – 2021
28/01/2021
26,047
—
(5,738)
—
20,309
0.0p
27/01/2031
Total
26,047
—
(5,738)
—
20,309
Safestore Long Term
Incentive Plan – 2022
25/01/2022
213,499
—
—
(213,499)
—
0.0p
24/01/2032
29/09/2022
3,968
—
—
(3,968)
—
0.0p
24/01/2032
Total
217,467
—
—
(217,467)
—
Safestore Long Term
Incentive Plan – 2023
12/07/2023
644,507
—
—
(18,983)
625,524
0.0p
11/07/2033
Total
644,507
—
—
(18,983)
625,524
Safestore Long Term
Incentive Plan – 2024
27/02/2024
800,562
—
—
(27,221)
773,341
0.0p
26/02/2034
Total
800,562
—
—
(27,221)
773,341
Safestore retention scheme
–
2025
17/07/2024
—
558,452
—
(17,248)
541,204
0.0p
16/07/2034
Total
—
558,452
—
(17,248)
541,204
Safestore Long Term
Incentive Plan – 2025
20/01/2025
—
1,127,889
—
(44,454)
1,083,435
0.0p
19/01/2035
Total
—
1,127,889
—
(44,454)
1,083,435
Safestore Holdings plc | Annual report and financial statements 2025
165
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
23. Called up share capital continued
Safestore Long Term Incentive Plan continued
Retention scheme continued
In addition, gross amounts totalling £nil (FY 2024: £nil) in respect of bonuses awarded to Executive Directors for the year ended 31 October 2025
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 will be determined in FY 2026.
The weighted average exercise price of outstanding options under the Sharesave scheme is 593.5 pence (FY 2024: 702.6 pence). The weighted
average exercise price of options exercised under the Sharesave scheme was nil pence (FY 2024: 599.7 pence).
Own shares
Included within retained earnings are ordinary shares with a nominal value of £177 (FY 2024: £177) 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.
24. Cash flow from operating activities
Reconciliation of operating profit to net cash inflow from operating activities:
2025 2024
Cash generated from continuing operations
Notes
£’m £’m
Profit before income tax
127.1
398.6
Gain on revaluation of investment properties
13
(23.1)
(292.2)
Share of profit in joint ventures and associates
11, 12
(2.5)
—
Depreciation
14
1.5
1.5
Net finance expense
7
32.2
27.2
Employee share options
2.0
(0.3)
Changes in working capital:
Decrease in trade and other receivables
0.8
1.2
Increase/(decrease) in trade and other payables
0.5
(2.6)
Decrease in provisions
—
(0.3)
Cash generated from continuing operations
138.5
133.1
25. Analysis of movement in gross and net debt
Non-cash
2024 Cash flows movements 2025
£’m £’m £’m £’m
Borrowings
(824.2)
(105.2)
(28.8)
(958.2)
Lease liabilities
(100.6)
10.3
(21.1)
(111.4)
Total gross debt (liabilities from financing activities)
(924.8)
(94.9)
(49.9)
(1,069.6)
Cash in hand
25.3
(13.9)
(0.4)
11.0
Total net debt
(899.5)
(108.8)
(50.3)
(1,058.6)
Non-cash
2023 Cash flows movements 2024
£’m £’m £’m £’m
Borrowings
(725.8)
(110.3)
11.9
(824.2)
Lease liabilities
(101.4)
9.7
(8.9)
(100.6)
Total gross debt (liabilities from financing activities)
(827.2)
(100.6)
3.0
(924.8)
Cash in hand
16.9
8.7
(0.3)
25.3
Total net debt
(810.3)
(91.9)
2.7
(899.5)
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 borrowings are made up of 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 £1.4 million (FY 2024: £1.6 million), foreign exchange movements
of £27.3 million (FY 2024: £13.2 million), and modifications due to lease re-gearings of £21.1 million (FY 2024: £8.9 million).
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Notes to the financial statements continued
for the year ended 31 October 2025
26. Employees and Directors
2025 2024
Staff costs (including Directors) for the Group during the year £’m £’m
Wages and salaries
30.6
26.9
Social security costs
3.4
3.3
Other pension costs
1.1
1.0
Share-based payments
2.0
(0.3)
37.1
30.9
During the period ended 31 October 2025, 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.
2025 2024
Average monthly number of people (including Executive Directors) employed Number Number
Sales
698
646
Administration
138
142
836
788
2025 2024
Key management compensation £’m £’m
Wages and salaries
2.8
2.9
Social security costs
0.7
0.4
Post-employment benefits
0.1
0.1
Share-based payments
0.8
—
4.4
3.4
The key management figures given above include Directors.
2025 2024
Directors £’m £’m
Aggregate emoluments
2.5
2.2
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 £2.3 million at 31 October 2025
(FY 2024: £2.3 million) to reflect the increased uncertainty surrounding the likelihood of a successful outcome. Of the total provided, £nil has
been released in relation to the year ended 31 October 2025 (FY 2024: £(0.2) million within cost of sales (Underlying EBITDA)). 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 in which the Group was successful to the
French Supreme Court. The maximum potential exposure in relation to these issues at 31 October 2025 is £0.8 million (FY 2024: £0.8 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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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
28. Contingent liabilities
The Group has a contingent liability in respect of property taxation in the French subsidiary as disclosed in note 27.
29. Capital commitments
The Group had £50.0 million of capital commitments as at 31 October 2025 (FY 2024: £119.0 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 11, the Group has a 24.9% interest in PBC Les Groues SAS (“PBC”). The total amount invested in PBC is included as part
of its non-current investments in associates. During the period, the Group purchased a fully developed store called La Défense from PBC for
£7.2 million (€8.5 million) (FY 2024: £nil (€nil)). The balance outstanding at 31 October 2025 included within trade and other receivables was £nil
(FY 2024: £nil).
Transactions with CERF II German Storage Topco S.a.r.l (“CERF II”)
As described in note 11, the Group has a 10.0% interest in CERF II German Storage Topco S.a.r.l (“CERF II”). The total amount invested is
included as part of its non-current investments in associates. During the period, the Group recharged £0.5 million (FY 2024: £0.4 million)
relating to management and development services and earned £0.2 million (FY 2024: £0.1 million) in interest income. The balance outstanding
at 31 October 2025 was £0.3 million (FY 2024: £0.5 million).
Transactions with EasyBox
As described in note 12, the Group has a 50.0% interest in the EasyBox joint venture. The total amount invested is included as part of its
non-current investments in joint ventures. Safestore Italia S.R.L. (a wholly owned subsidiary of the Group) acts as property manager for the joint
venture. In its capacity as property manager, it incurs costs on behalf of the joint venture which are recharged in accordance with the property
management agreement. The balance of these recharges outstanding at 31 October 2025 was £0.4 million (FY 2024: £nil). During the period,
Safestore Italia S.R.L also received a management fee from the joint venture of £0.8 million (FY 2024: £nil). The balance outstanding in relation
to management fees at 31 October 2025 was £nil (FY 2024: £nil).
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Notes to the financial statements continued
for the year ended 31 October 2025
Company
Notes
2025
£’m
2024
£’m
Non-current assets
Investments in subsidiaries 5 1.0 1.0
Deferred tax asset 12 3.9 1.2
Loans to Group undertakings 6 823.0 721.9
Total non-current assets 827.9 724.1
Current assets
Trade and other receivables 7 1.8 0.9
Corporate income tax receivable 0.2 0.2
Cash and cash equivalents 0.1 1.3
Total current assets 2.1 2.4
Total assets 830.0 726.5
Current liabilities 8 (122.8) (79.3)
Total assets less current liabilities 707.2 647.2
Non-current liabilities 9 (546.5) (473.4)
Net assets 160.7 173.8
Equity
Called up share capital 10 2.2 2.2
Share premium account 62.7 62.7
Retained earnings 95.8 108.9
Total equity 160.7 173.8
The Company’s profit for the financial year amounted to £5 1 .4 million (FY 2024: £3. 1 million loss).
The Company financial statements were approved by the Board of Directors on 14 January 2026 and signed on its behalf by:
S Clinton F Vecchioli
Chief Financial Officer Chief Executive Officer
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Company balance sheet
as at 31 October 2025
Company registration number: 04726380
Company
Called up
share capital
£’m
Share premium
account
£’m
Retained
earnings
£’m
Total
£’m
Balance at 1 November 2023 2.2 62.0 178.2 242.4
Comprehensive income
Loss for the year — — (3.1) (3.1)
Total comprehensive income — — (3.1) (3.1)
Transactions with owners
Dividends — — (65.9) (65.9)
Increase in share capital — 0.7 — 0.7
Employee share options — — (0.3) (0.3)
Transactions with owners — 0.7 (66.2) (65.5)
Balance at 1 November 2024 2.2 62.7 108.9 173.8
Comprehensive income
Profit for the year — — 51.4 51.4
Total comprehensive income — — 51.4 51.4
Transactions with owners
Dividends — — (66.6) (66.6)
Increase in share capital — — — —
Employee share options — — 2.1 2.1
Transactions with owners — — (64.5) (64.5)
Balance at 31 October 2025 2.2 62.7 95.8 160.7
For details of the dividend paid in the year see note 9 in the Group financial statements.
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170
Company statement of changes in equity
for the year ended 31 October 2025
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”) 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 £51.4 million (FY 2024: £3.1 million loss).
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 (FY 2024: none). Details of the Company’s share-based payments are set out in note 23 to the
Group financial statements.
5. Investments in subsidiaries
£’m
Cost and net book value
At 1 November 2024 1.0
At 31 October 2025 1.0
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.
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CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Notes to the Company financial statements
for the year ended 31 October 2025
5. Investments in subsidiaries continued
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
1,10
England and Wales Holding company
Safestore Investments Limited
10
England and Wales Holding company
Safestore Group Limited
10
England and Wales Holding company
Safestore Acquisition Limited
10
England and Wales Holding company
Safestore Limited
10
England and Wales Provision of self-storage
Safestore Properties Limited
10
England and Wales Provision of self-storage
Spaces Personal Storage Limited
10,12
England and Wales Non-trading
Safestore Trading Limited
10,12
England and Wales Non-trading
Mentmore Limited
10
England and Wales Holding company
Invest Holding S.à.r.L Luxembourg
2
Holding company
Une Pièce en Plus SAS France
3
Provision of self-storage
OMB Self-storage S.L.U. Spain
4
Provision of self-storage
Safestore Netherlands B.V. Netherlands
5
Holding company
Your Room Self-storage Limited
10,12
England and Wales Non-trading
Safestore Storage Benelux B.V. Netherlands
6
Holding company
Safestore Storage B.V. Netherlands
6
Provision of self-storage
M3 Self-Storage B.V. Netherlands
6
Provision of self-storage
Safestore Storage Properties 1 B.V. Netherlands
6
Provision of self-storage
Safestore Storage Properties 2 B.V. Netherlands
6
Provision of self-storage
Safestore Storage Properties 3 B.V. Netherlands
6
Provision of self-storage
Safestore Storage Properties 4 B.V. Netherlands
6
Provision of self-storage
Lokabox SA Belgium
7
Provision of self-storage
Safestore Europe SAS France
3
Provision of self-storage
Investimmo SAS France
3
Provision of self-storage
Safestore Germany GmbH Germany
8
Holding company
Safestore European Investments 1 S.à.r.L Luxembourg
2
Holding company
Safestore Italia S.R.L Italy
9
Holding company
Safestore Proprietà Italia S.R.L.
11
Italy
9
Provision of self-storage
Chelsea Self-storage Limited
10,12
England and Wales Non-trading
Safestore Property Investments 1 Limited
10
England and Wales Provision of self-storage
Safestore Property Investments 2 Limited
10
England and Wales Provision of self-storage
Safestore Property Investments 3 Limited
10
England and Wales Provision of self-storage
Safestore Property Investments 4 Limited
10
England and Wales Non-trading
Safestore Property Investments 5 Limited
10
England and Wales Non-trading
Notes:
1 Held directly by the Company.
2 Registered address: 412F, route d’Esch, L-2086 Luxembourg.
3 Registered address: 1, rue François Jacob, 92500 Rueil Malmaison, France.
4 Registered address: Calle Marina 153, 08013 Barcelona, Spain.
5 Registered address: Herikerbergwerg 88, 1101CM Amsterdam, 1077ZX Amsterdam, Netherlands.
6 Registered address: Boteyken 191, De Meern, 3454PD, Netherlands.
7 Registered address: Chaussée de Bruxelles 151-155, 6040 Charleroi, Belgium.
8 Registered address: Maximiliansplatz 22, Munich, 80333, Germany.
9 Registered address: Via L. Mascheroni 19, Milan, 20145, Italy.
10 These companies are exempt from the requirement to prepare individual audited financial statements in respect of the year ended 31 October 2025 by virtue of Sections 479A
and 479C of the Companies Act 2006.
11 Incorporated in June 2025.
12 Entered liquidation in October 2025.
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172
Notes to the Company financial statements continued
for the year ended 31 October 2025
6. Non-current assets – loans to Group undertakings
2025
£’m
2024
£’m
Loans to Group undertakings 823.0 721.9
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 £546.5 million (FY 2024: £473.4 million). The remaining amounts owed by Group
undertakings are interest free. The movement in loans to Group undertakings relates to interest charged of £12.5 million (FY 2024: £10.7 million)
and additional amounts loaned of £90.7 million (FY 2024: £232.7 million repaid).
7. Trade and other receivables
2025
£’m
2024
£’m
Other receivables 1.8 0.9
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
2025, these amounts due are considered fully recoverable and no provision has been made (FY 2024: £nil).
8. Current liabilities
2025
£’m
2024
£’m
Amounts owed to Group undertakings 118.6 76.6
Accruals and deferred income 4.2 2.7
122.8 79.3
Amounts owed to Group undertakings are unsecured, interest free and repayable on demand.
9. Non-current liabilities
2025
£’m
2024
£’m
Loan notes 546.5 473.4
Of the above, £167.0 million (FY 2024: £317.5 million) is due after more than five years.
Refer to note 19 of the Group financial statements for further information on non-current liabilities.
10. Called up share capital
2025
£’m
2024
£’m
Called up, allotted, and fully paid
218,490,500 (FY 2024: 218,490,500) ordinary shares of 1 pence 2.2 2.2
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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FINANCIAL STATEMENTS
OVERVIEW
11. Contingent liabilities
For details of contingent liabilities see note 28 in the Group financial statements.
12. 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 2023 — 2.9 2.9
Charge to income statement — (1.7) (1.7)
At 31 October 2024 — 1.2 1.2
At 1 November 2024 — 1.2 1.2
Credit to income statement — 2.7 2.7
At 31 October 2025 — 3.9 3.9
The deferred tax asset receivable after more than one year is £3.9 million (FY 2024: £1.2 million) and will be utilised by reducing future
taxable profit.
As at 31 October 2025, the Company had unutilised trading losses of £15.9 million (FY 2024: £4.9 million).
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Notes to the Company financial statements continued
for the year ended 31 October 2025
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,
exceptional and non-operating items, gain/loss on investment properties, and the associated tax impacts.
The Company then makes further adjustments for the impact of net exchange gains/losses recognised in net
finance costs 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).
Current Lettable Area (“CLA”) Current Lettable Area excludes space not yet fitted out and space which is operationally unavailable from MLA
(Maximum Lettable Area). Measured in square feet (“sq ft”).
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.
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FINANCIAL STATEMENTS
OVERVIEW
Glossary
Euro Interbank Offered Rate
(“EURIBOR”)
The average benchmark interest rate at which Eurozone banks offer unsecured short term lending on the
interbank market.
Exit yield Represents the capital value of an investment property at the end of the investment term expressed in
percentage terms.
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 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 percentage.
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 applicable to
property income.
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 CLA
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 EBITDAR Underlying EBITDAR was previously termed Underlying EBITDA. It 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, depreciation, the net profit from joint ventures and associates, interest and tax. It
has been renamed to ensure the name more closely reflects the nature of the financial measure.
Underlying profit before tax Underlying EBITDA less leasehold rent, depreciation charged on property, plant, and equipment, and net
finance charges relating to borrowings and cash.
Safestore Holdings plc | Annual report and financial statements 2025
176
Glossary continued
Safestore Holding’s commitment to environmental issues is reflected in this Annual
Report, which has been printed on Symbol Freelife Satin, an FSC
®
certified material.
This document was printed by L&S using its environmental print technology, which
minimises the impact of printing on the environment, with 99% of dry waste diverted
from landfill. The printer is a CarbonNeutral
®
company.
Both the printer and the paper mill are registered to ISO 14001.
Produced by Design Portfolio
www.design-portfolio.co.uk
CBP034458
Safestore Holdings plc | Annual report and financial statements 2025
177
CORPORATE GOVERNANCESTRATEGIC REPORT
FINANCIAL STATEMENTS
OVERVIEW
Directors and advisers
Directors
David Hearn (Non-Executive Chairman)
Frederic Vecchioli (Chief Executive Officer)
Simon Clinton (Chief Financial Officer)
Jane Bentall (Senior Independent Director)
Avis Darzins (Non-Executive Director)
Laure Duhot (Non-Executive Director)
Delphine Mousseau (Non-Executive Director)
Gert van de Weerdhof (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
Citigroup Global Markets Limited
Citigroup Centre
33 Canada Square
London E14 5LB
Financial PR advisers
FTI Consulting
200 Aldersgate Street
London EC1A 4HD
Shareholder information
Registrar
MUFG Corporate Markets
The Registry
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@cm.mpms.mufg.com
Share Portal Enquiries: shareholderenquiries@cm.mpms.mufg.com
Share Portal: www.signalshares.com
Through the website of our Registrar, MUFG Corporate Markets,
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 Holdings plc Annual report and financial statements 2025
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
www.safestore.co.uk
www.safestore.com