Earnings call transcript: Storage King beats revenue in H2 2026, shares slip

Storage King Group reported a stronger-than-expected full-year revenue of $1.25 billion for FY 2026, surpassing forecasts by $40 million or 3.31%. Despite this positive result, the stock closed at $11.40, down 0.87% from the previous close, indicating a muted reaction. Adjusted EPS stood at $0.29, but no EPS guidance was provided.

Revenue growth was reported at 1.2%, while Australian established RevPAM increased by 2.7% across all states. The company's asset portfolio shifted toward higher-growth assets, with acquisition asset revenue up 7.3% and stabilization asset revenue rising 27.2%. However, New Zealand's performance lagged, with a 11.7% drop in RevPAM, partly attributed to roof strengthening work completed in May 2026.

Management highlighted a deliberate strategy to invest in earlier-stage assets, anticipating occupancy and rental rate growth. The stock's current price reflects a 62.9% premium above its 52-week low and a modest discount to its 52-week high. Investors cautioned about the impact of weaker FY 2027 distribution guidance and rising finance costs.