Safestore Enters Joint Venture with Nuveen for Easybox Acquisition

Safestore's joint venture with Nuveen to acquire Easybox may influence its earnings in the coming years, impacting investor sentiment according to the latest report. The venture aims to establish a presence in a growing market.

Date: 24-12-2024

AI Rating: 5

In the recent report, Safestore has announced a joint venture with Nuveen Real Estate to acquire the Italian self-storage provider Easybox for 175 million euros. This acquisition marks Safestore's strategic movement into one of Europe’s under-penetrated self-storage markets, which could provide growth opportunities in the future.

The initial investment from Safestore will be approximately 45 million euros for a 50% stake in the joint venture. However, the report indicates that the deal will have an estimated negative impact on Safestore's earnings per share (EPS) of 0.3 pence in fiscal 2025. This presents a slight downside risk for investors in the short term as they may be concerned about the potential decline in earnings.

More positively, the report also mentions that the investment is expected to be EPS accretive by fiscal 2027, suggesting that it could contribute positively to earnings in the long run. The forward-looking nature of this statement may help to mitigate some short-term concerns among investors, potentially providing a reason for optimism if the market reacts positively to future performance metrics.

Overall, the information regarding the EPS impact suggests initial caution among investors, but the anticipated long-term benefits could balance this sentiment if executed successfully.

Stocks: SAFE