Key Highlights

  • Storage King reported FY26 funds from operations of $82.1 million, down 3.4% on FY25, with a distribution of 6.20 cents per security.
  • Net tangible Assets rose to $1.77 per security from $1.74 a year earlier.
  • FY27 distribution guidance has been set at 4.5 cents per security, with a Payout Ratio target of 80% to 100% of FFO.
  • Group occupancy was 88.4% in the first quarter of FY27, with gearing at 36.3%, compared with 33.7% at FY26.

Storage King Group (ASX:SKG) held its 2026 annual general meetings in Sydney on 13 November 2026, and released the addresses and presentations given by the chair and managing director. The self-storage group is made up of Storage King Property Trust and Abacus Storage Operations Limited. The addresses cover the FY26 result, first-quarter FY27 trading and the company’s FY27 priorities.

FY26 Results

Storage King reported funds from operations of $82.1 million for FY26, down 3.4% on FY25. The company met its FY26 guidance with a distribution of 6.20 cents per security, representing an FFO payout ratio of 99%, within its targeted range of 90% to 100%. Total assets grew 8.1% to $3.9 billion. Net tangible assets increased to $1.77 per security, compared with $1.74 a year earlier and $1.57 at de-stapling three years ago.

During FY26, the company delivered 34,500 square metres of development and acquired three operating stores. It deployed a proprietary Revenue management system across its portfolio and AI-enabled security across 45% of stores. Customer net promoter score increased to 72, and Scope 1 and 2 emissions intensity fell 5%. Australian established portfolio revenue per available metre rose 2.7%, rents increased 3% to $384 per square metre, and occupancy remained above 90%.

First-Quarter FY27 Trading

For the first quarter of FY27, Australian revenue per available metre increased 3.6% year on year to $348 per square metre, with growth in every state. Australian occupancy was 88.9%, down 100 basis points on a year earlier, while average rental Yield rose 4.8% to $391 per square metre. Group occupancy stood at 88.4%, which management described as towards the bottom of its 88% to 92% comfort range. The company says rebuilding occupancy is a clear operating focus, while maintaining rate discipline.

Management noted that land tax and council rate increases were material cost pressures, with like-for-like land tax rising 16.3% and water and council rates rising 12.3%. Recently opened stores are leasing up, with occupancy ranging from 5.9% at Sydney Olympic Park after one month to 17.4% at Wollongong after five months. Three acquisitions completed in July, at North Richmond in New South Wales, Pimpama in Queensland and Emu Plains in New South Wales.

FY27 Distribution Guidance and Balance Sheet

The most notable change in the presentation is the FY27 distribution guidance. The company has affirmed guidance of 4.5 cents per security, down from the 6.20 cents paid in FY26. The chair said recent Interest Rate increases affect returns, and that forecasts and activities have been updated to reflect that. Interest coverage was around three times at the end of the quarter, and management said it is in discussions on the levers available to protect that position. Guidance is conditional on no material deterioration in Business conditions, and the company targets a payout ratio of 80% to 100% of FFO.

Gearing was 36.3% at the end of the first quarter, up from 33.7% at FY26, reflecting the July Dividend payment and the three acquisitions. FY27 priorities include delivering a development pipeline of about 50,000 square metres of net lettable area, ramping recently acquired and completed developments towards mature occupancy, and an AI-powered customer support initiative known as Alex.

Closing Perspective

The meeting presented a year in which the company grew its asset base and net tangible assets while FFO declined, followed by a lower FY27 distribution guidance and a higher gearing level. The company’s stated priorities for FY27 centre on occupancy recovery, development delivery and Capital prudence. Future updates on occupancy, interest coverage and the development pipeline will indicate whether the guidance can be met.