How Is Abacus Storage King Expanding Its $3.6bn Self-Storage Empire?
Abacus Storage King reported robust FY25 financials with an 11.8% asset increase and reaffirmed FY26 guidance, underpinned by strategic acquisitions and developments. The company’s portfolio expansion and sustainability initiatives highlight its leadership in the self-storage sector.
- Total assets grew 11.8% to $3.6 billion in FY25
- Funds From Operations rose 4.7% to $85 million
- 204 stores across Australia and New Zealand with 91.2% occupancy
- Development pipeline of 17 stores adding 101,000 sqm net lettable area
- FY26 distribution guidance maintained at 6.2 cents per security
Strong Financial Performance and Portfolio Growth
Abacus Storage King (ASX, ASK) delivered a solid financial performance for FY25, reporting total assets of $3.6 billion, up 11.8% from the previous year. The company’s Funds From Operations (FFO) increased by 4.7% to $85 million, reflecting steady operational growth and resilience in its diversified self-storage portfolio spanning Australia and New Zealand.
Statutory profit surged to $289 million, a significant increase of $150.8 million year-on-year, underscoring the strength of the Storage King brand and the effectiveness of its strategic initiatives. The company maintained a distribution of 6.20 cents per security, consistent with its targeted payout ratio of 90–100% of FFO.
Expansion Through Acquisitions and Developments
Growth was driven by a multi-pronged strategy combining acquisitions, developments, and platform enhancements. In FY25, Abacus Storage King acquired six operating stores and four development sites for $84 million, adding 19,500 square metres of net lettable area (NLA), approximately 3% of the portfolio. Additionally, three new stores were delivered in key metropolitan locations; Morayfield (QLD), Darlington (SA), and Leppington (NSW); adding 20,700 sqm of NLA valued at $80 million.
The company’s development pipeline remains robust, with 17 stores underway expected to add 101,000 sqm of NLA, representing a 15% increase over the short to medium term. These next-generation assets are strategically located to enhance average rental income per square metre (RevPAM) and overall portfolio quality.
Operational Metrics and Market Position
Operationally, the portfolio achieved a 4.5% increase in RevPAM to $340 per square metre and occupancy rose modestly to 91.2%. The company’s gearing ratio stood at a conservative 29.3%, with over $600 million in funding capacity to support ongoing growth. Storage King was also the most Google-searched self-storage brand in Australia during FY25, indicating strong market recognition and customer engagement.
Despite macroeconomic headwinds, particularly in New Zealand where inflation and migration trends pose challenges, Abacus Storage King’s diversified portfolio and urban-focused assets underpin its resilience. The first quarter of FY26 showed continued momentum with rental growth across most Australian states and stable occupancy levels.
Sustainability and Governance Highlights
Abacus Storage King advanced its sustainability agenda, achieving a 3% reduction in greenhouse gas emissions intensity and expanding solar installations to 88 sites. The company also maintained a strong focus on workplace wellbeing and diversity, achieving Great Place To Work accreditation in both Australia and New Zealand and increasing female representation in senior management.
On governance, the board is considering adding an additional nominee from a major securityholder, signaling potential future changes in board composition. The company reaffirmed its FY26 distribution guidance of 6.2 cents per security, contingent on stable trading conditions.
Bottom Line?
With a strong balance sheet and a clear growth pipeline, Abacus Storage King is well positioned to capitalise on structural demand drivers in the self-storage sector amid evolving market conditions.
Questions in the middle?
- How will macroeconomic pressures in New Zealand impact portfolio performance in FY26?
- What is the timeline and expected impact of the 17-store development pipeline on earnings?
- Will the potential addition of a new board nominee influence strategic direction or governance?
