24Storage is a Swedish real estate company that owns and develops self-storage facilities in the Stockholm, Gothenburg and Malmö regions with a property value of SEK ~1.2bn. The firm operates 23 premises with 14 in Stockholm, 7 in Gothenburg and 2 in Malmö, with a total >10,000 storage units. The company has ~6,000 tenants, of which 85% are private persons and 15% are corporations. 24Storage was founded in 2015 and has become the second-largest self-storage operator in the Swedish market. The share is listed on Nasdaq First North since December 2019.
24Storage’s ambition is to increase RevPAM by increasing its rental income per sqm and its occupancy rate. 24Storage rental income per sqm stands at SEK 1,910 (2019), while the market average is at SEK 2,350. The occupancy rate stands at 67% (2019), with the market occupancy rate at 81% and peers at >80%. If 24Storage can improve its occupancy rate and rental income per sqm in line with the market and peers it could substantially improve RevPAM. The company’s growth strategy is to build new self-storage premises of 10,000 sqm p.a.
Real estate companies are subject to macro risks, supply of premises risk, supply of capital risk, debt availability risk, forex risk, regulatory risk, rental income risk, property cost risk and property value risk. We argue that specific risks related to 24Storage are ownership risk, vacancy risk and financing risk.