Storage King Group (ASX:SKG): FY26 Earnings, Storage Portfolio and FY27 Priorities

Aditi Sarkar

23 October 2026 07:49 PM AEDT

Storage King Group (ASX:SKG): FY26 Earnings, Storage Portfolio and FY27 Priorities

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Highlights

Storage King Group (ASX:SKG) reported FY26 funds from operations of AUD 82.1 million, down 3.4%.
FY26 statutory net profit was AUD 154.3 million, compared with AUD 289.0 million a year earlier.
Established-store occupancy reached 90.2%; revenue per available metre averaged AUD 341.
The group completed management internalisation and maintained FY26 distributions at 6.20 cents per security.

Storage King Group (ASX:SKG) invests in and operates self-storage facilities across Australia and New Zealand, earning income from customers renting storage space and from its wider management platform. Its FY26 results outlined lower funds from operations, a larger property portfolio and the completion of management internalisation. Following those developments, Storage King Group (ASX:SKG) shares finished the 23 October 2026 trading session at AUD 1.085.

Company Business

Storage King Group (ASX:SKG) operates a network of storage centres serving household and business customers. Rental income depends on occupied storage area, pricing per square metre, customer turnover and ongoing store operating costs. The business also manages facilities that it does not own, extending the reach of its operating systems beyond the investment-property portfolio.

At 30 June 2026, the operating platform serviced 204 stores, comprising 132 owned trading stores and 72 stores owned by other parties. Its property holdings included 151 assets, of which 19 were future development sites. The portfolio had an estimated fair value of AUD 3.64 billion, with properties concentrated in Australian metropolitan areas and additional exposure to New Zealand.

The group measures established-store performance through average occupancy, average rental rate and revenue per available metre, or RevPAM. The last measure combines the effect of space utilisation and rental pricing. These indicators help distinguish changes at operating stores from additional revenue contributed by newly acquired or developed facilities.

Recent Development

Storage King Group (ASX:SKG) completed the internalisation of its management functions on 30 June 2026, moving from an externally managed arrangement to a structure in which operating and investment responsibilities sit within the group. The business adopted its current corporate name and ASX ticker in July 2026. The change affects recurring management expenses, governance processes and the costs of operating standalone corporate functions.

Development and acquisition activity also continued through FY26. The group completed four new stores and five expansions, delivering approximately 34,500 square metres of additional net lettable area. Its disclosed development pipeline included 16 new stores representing approximately 110,000 square metres of planned storage space over the short to medium term. The company has identified the leasing performance of recently completed facilities as an important component of future operating results.

The group introduced its proprietary revenue-management system across its owned stores. Its role is to support decisions concerning storage pricing and available capacity, although actual financial results will depend on customer demand and conditions in individual markets.

Financial Performance and Sector Context

For the year ended 30 June 2026, Storage King Group (ASX:SKG) reported statutory net profit after tax of AUD 154.3 million, down from AUD 289.0 million in FY25. The statutory result includes property fair-value movements and other accounting items, which means it is not interchangeable with recurring storage cash earnings. Funds from operations declined 3.4% to AUD 82.1 million from AUD 85.0 million, while underlying earnings decreased 0.6% to AUD 85.4 million.

FY26 funds from operations per security were 6.24 cents, compared with 6.47 cents in FY25. Ordinary distributions were unchanged at 6.20 cents per security, including a final distribution of 3.10 cents. Net tangible assets increased to AUD 1.77 per security from AUD 1.74 at the previous year-end. The property portfolio valuation increased from AUD 3.37 billion to approximately AUD 3.64 billion.

Average established-store occupancy declined to 90.2% from 91.2%. Average rental rates increased to AUD 378 per square metre from AUD 373, while RevPAM rose to AUD 341 from AUD 340. The company identified competitive discounting, storage supply and softer economic conditions in New Zealand as influences on operating performance. At year-end, gearing was 33.7%, compared with 29.3% a year earlier, reflecting the financial implications of portfolio investment.

Risks to Consider

Storage King Group (ASX:SKG) is exposed to occupancy changes, customer churn, competing store openings and price discounting. Development expenditure can precede rental receipts, particularly while new stores are being leased. The group also faces construction timing and cost risks, changes in asset valuations and refinancing exposure. As existing interest-rate hedges expire, borrowing costs may increase. Currency movements and economic conditions in New Zealand introduce further variability into reported results.

What to Watch Next

The FY27 reporting periods will provide evidence of whether newly opened stores gain occupancy and whether rental rates offset competitive pricing pressure. Management has identified approximately 50,000 square metres of development delivery for FY27, alongside work to embed the internalised business model and expand revenue-management capabilities. Investors may also monitor financing expenses, gearing, investment-property valuations and the rate at which the development pipeline begins producing rental income.

The group has indicated that higher net finance costs are expected in FY27 as historical borrowing hedges roll off and development funding increases. Updates on the balance between retained earnings, capital expenditure and future distributions will therefore be relevant to assessing the funding of expansion.

Key Insights

Storage King Group (ASX:SKG) finished FY26 with a larger storage portfolio and an internally managed operating structure, while funds from operations and occupancy declined. Its statutory earnings were affected by valuation-related accounting movements, underscoring the need to distinguish reported profit from recurring operations. Subsequent disclosures on leasing, storage pricing, development delivery and finance costs will show how the FY26 operating position develops.

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