The Storage King Group Ltd (ASX: SKG) share price is under the microscope today, after the self-storage operator reported total revenue and other income fell 28.7% to $328.3 million and net profit after tax dropped 46.6% to $154.3 million for FY26.
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What did Storage King Group report?
- Total revenue and other income: $328.3 million, down 28.7%
- Net profit after tax: $154.3 million, down 46.6%
- Funds from operations (FFO): $82.1 million, down 3.4%
- Underlying earnings: $85.4 million, down 0.6%
- Distribution per security: 6.20 cents (unchanged on last year)
- Net tangible assets per security: $1.77 (up from $1.74)
What else do investors need to know?
Storage King Group transitioned to an internalised management structure at the end of the period, bringing all key executive roles and operations in-house and seeking stronger alignment with securityholders. During the year, the group acquired six storage sites for $78 million and added new development sites in high-density locations across Australia. The company increased its multi-currency debt facility to $1.55 billion, with 71.5% of drawn debt hedged at fixed rates, and reported group gearing of 33.7%.
The self storage portfolio, now at 204 stores across Australia and New Zealand, demonstrated strong resilience and moderate income growth, with average RevPAM (revenue per available metre) lifting 0.7%. However, trading conditions remained competitive due to discounting by rivals and soft economic conditions in New Zealand.
What did Storage King Group management say?
Nikki Lawson, CEO & Managing Director, commented:
The completion of our internalisation aligns Storage King's leadership and platform directly with securityholder outcomes, supporting growth as we enter our next chapter. Our strategy remains focused on disciplined delivery, platform innovation, and disciplined capital management in an evolving market.
What's next for Storage King Group?
Looking ahead, Storage King Group expects to leverage its stronger internal capabilities to drive cost efficiencies, bolster customer experience, and support disciplined growth. Sixteen new developments—adding around 110,000 square metres—are planned over the short to medium term, aiming to lift occupancy and rental rates in core markets.
The group remains confident its balance sheet is well placed to fund further acquisitions and developments, while the board is reviewing the payout ratio to retain earnings for growth initiatives.
Storage King Group share price snapshot
Over the past 12 months, Storage King Group shares have declined 20%, trailing the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.
