How Did Abacus Storage King Double Profit to $289m in FY25?
Abacus Storage King (ASK) delivered a robust FY25 performance with a statutory profit leap to $289 million, driven by operational strength and strategic expansion. The company outlines a confident FY26 outlook backed by a strong development pipeline and ongoing platform innovation.
- Statutory profit rises 120% to $289 million in FY25
- Occupancy improves to 91.2%, with 4.5% growth in revenue per available square metre
- Development pipeline adds 15% net lettable area, acquisitions total $84 million
- Gearing modestly increases to 29.3%, total assets reach $3.6 billion
- FY26 distribution guidance set at 6.2 cents per security with partial franking
Strong Financial Momentum
Abacus Storage King (ASK) has reported a standout FY25 financial year, with statutory profit soaring to $289 million, up $150.8 million from FY24. This leap reflects the company’s operational resilience and strategic portfolio growth, underscored by a 4.5% increase in revenue per available square metre (RevPAM) to $340 and occupancy rising to 91.2%. Funds from operations (FFO) also grew by 4.7% to $85 million, signaling solid cash flow generation.
Portfolio Expansion and Development Pipeline
ASK’s portfolio now encompasses 102 mature stores, with a total asset base expanding 11.8% to $3.6 billion. The company acquired six operating stores and four development sites for $84 million, adding 19,500 square metres of net lettable area (NLA). Its development pipeline is ambitious, with 17 projects underway that will increase NLA by 15% over the short to medium term, positioning ASK for sustained organic growth.
Capital Management and Balance Sheet Strength
ASK maintains a disciplined capital structure, with gearing edging up slightly to 29.3% but remaining within its target range. The weighted average cost of debt is a competitive 3.4%, supported by an 86% hedging ratio. The company’s balance sheet strength underpins its capacity to pursue acquisitions and developments while maintaining financial flexibility.
Innovation and Sustainability Initiatives
Beyond financials, ASK is advancing platform initiatives focused on data-driven pricing automation and customer experience enhancements. The company is trialling intelligent pricing systems and staffless satellite operations to optimize revenue. Sustainability remains a priority, with a commitment to net zero greenhouse gas emissions by 2030, supported by solar installations at 88 sites and ongoing emissions intensity reductions.
Outlook and Market Position
Looking ahead, ASK projects FY26 distributions of 6.2 cents per security, with 25% fully franked dividends and a payout ratio between 90% and 100% of FFO. The company’s multi-pronged growth strategy leverages its leading brand, extensive portfolio, and platform capabilities to capitalize on positive sector dynamics. Meanwhile, ASK is navigating a non-binding acquisition proposal at $1.65 per security, currently in due diligence, adding an element of strategic uncertainty.
Bottom Line?
ASK’s FY25 results reinforce its leadership in self storage, but the unfolding acquisition proposal will be a key watchpoint for investors.
Questions in the middle?
- Will the acquisition consortium’s due diligence lead to a binding offer and change of control?
- How will ASK’s automation and pricing platform initiatives impact long-term revenue growth?
- What risks could arise from the sizeable development pipeline amid changing market conditions?