Self-storage sites operator Lok’nStore (LON: LOK) continues to grow at an impressive pace and add new sites that will enhance growth in the future. Declining yields on self-storage assets will help to boost NAV.
The site acquisitions and development spending will be financed through the existing bank facilities. The development pipeline will add 38% to capacity and take the number of sites to 51. It takes time for new sites to build up and the benefit to show through to profit, so sites opened in the coming year will not mature for years.
Contracts have been exchanged on two new freeholds in Barking and Altrincham and one leasehold site in Basildon, while planning permission has been granted for sites in Bedford and Cheshunt, plus an extension to the Broadstairs site.