Safestore Holdings plc Annual report and financial statements 2022

Annual

Report

2022

Safestore Holdings plc

Annual report and financial statements 2022

“I am pleased to report another excellent year in

which we delivered significant strategic progress,

having enhanced our funding capacity, doubled

our development pipeline to c.1.4m sq ft of

MLAandextended our geographical footprint.

Thestrong trading performance for the year is

especially pleasing as it follows a record year

in2021. Our 2022 result was achieved through

strong revenue growth in the UK market, good

performances in our Parisian and Spanish

businesses, and seven months’ contribution

from our Benelux business, which was acquired

in March 2022.

Early trading in the new financial year shows

broadly stable levels of demand compared to

last year (but significantly ahead of pre-pandemic

levels) with rates paid by new customers

continuing to grow.

Over the last seven years, the Group has

developed or acquired 68 stores and expanded

into four new countries (Netherlands, Belgium,

Spain and now Germany). In addition, our

development pipeline of 29 new stores, extensions,

and projects represents a further c.18% of our

existing portfolio’s MLA. Throughout this period

ofexpansion, the Group has maintained its

disciplined approach to return on capital.

In March 2022, the Group completed the

acquisition of our partner Carlyle’s 80% stake in

our Benelux JV. Over the last three years we have

learnt much about the Netherlands and Belgian

markets and feel confident about the ongoing

development of our presence in these attractive

geographies. It is our intention to gradually

increase our footprint in these two markets and

our development pipeline now includes five stores

and c.283,000 sq ft of MLA in the Netherlands.

Following this successful JV with Carlyle,

weestablished a new German JV which has

acquired the seven-store myStorage business.

Germany is one of Europe’s most under-penetrated

self storage markets and I look forward to

growing our presence there.

Our strong and flexible balance sheet has been

significantly enhanced by the agreement of a new

unsecured four-year £400 million multi-currency

RCF which increases funding capacity, allowing us

to continue to consider strategic, value-accretive

investments as and when they arise.

We have delivered a strong occupancy

performance over recent years and, after a

significant level of acquisition and development

activity over the last six years, we still have

1.4msq ft of fully invested currently unlet space

in our UK, Paris, Spain, and Benelux markets

inaddition to 1.4m sq ft of pipeline space. Our

most significant upside opportunity is from filling

our existing unlet space and that remains our

priority. The business has demonstrated its

inherent resilience in recent times and, despite

the challenging macro-economic environment,

we are confident in the future of the business.

The underlying fundamentals of the European

self storage industry with limited supply, strong

barriers to entry and a steadily growing product

awareness are as strong as ever. Over the last

nineyears, Safestore has delivered a market

leading 18% CAGR of its EPRA group adjusted

EPS. During that period, we have gradually

expanded our geographical reach to six

European countries leveraging and improving

our platform and central functions while

managing investment risk very carefully.

I’mconfident that Safestore will continue to

playaleading role in the development of the

selfstorage industry across Europe, delivering

significant further value to its stakeholders.

None of this would be possible without the

dedication and skills of our teams and I would like

to thank all our colleagues in the UK, France,

Spain, the Netherlands and Belgium for their

performance in 2022 as well as their commitment

and loyalty. We are appreciative of their efforts.”

Frederic Vecchioli

Chief Executive Officer

A strong trading

performance inayear

of significant strategic

progress and

geographic expansion

Overview

1 Highlights

2 Financial highlights

3 About us

4 Investment case

Strategic report

5 Chairman’s statement

7 Chief Executive’s statement

22 Financial review

34 Engaging with our stakeholders

andour Section 172(1) statement

37 Principal risks

44 Viability statement

45 Compliance with Task Force on

Climate-related Financial Disclosures

(“TCFD”)

46 Sustainability

Governance report

74 Introduction

76 Board of Directors

78 Corporate governance

83 Nomination Committee report

85 Audit Committee report

89 Directors’ remuneration report

117 Directors’ report

121 Statement of Directors’

responsibilities

Financial statements

122 Independent auditor’s report

129 Consolidated income statement

129 Consolidated statement

ofcomprehensive income

130 Consolidated balance sheet

131 Consolidated statement of changes

in shareholders’ equity

132 Consolidated cash flow statement

133 Notes to the financial statements

166 Company balance sheet

167 Company statement of changes

inequity

168 Notes to the Company

financialstatements

171 Glossary

IBC Directors and advisers

OVERVIEW

Strong financial performance

• Group revenue for the year up 13.8%

(up 14.3% in CER

)

• Like-for-like

Group revenue for the year

in CER

up 10.7%

• Underlying EBITDA

up 15.1% in CER

which, combined with an increased gain

on investment properties of £381.6 million

(FY2021: £321.1 million), resulted in statutory

operating profit

of £514.5 million

(FY2021: £417.0 million)

• Adjusted Diluted EPRA Earnings per Share

up 17.3% at 47.5 pence (FY2021: 40.5 pence).

Diluted Earnings per Share was 212.4 pence

(FY2021: 176.4 pence) largely due to the higher

property valuation gain in FY2022

• 15.9% increase in the final dividend to

20.4pence (FY2021: 17.6 pence) giving

atotal 18.7% increase for the year to

29.8 pence (FY2021: 25.1 pence)

Continued operational delivery

• Continued balanced approach to revenue

management together with an efficient

marketing platform driving returns and

record occupancy performance:

• Like-for-like

average storage rate

for the

year up 11.5% in CER

• Like-for-like

average occupancy for the

year up 0.7%

• Like-for-like

closing occupancy of 83.1%

down 2.1ppts on 2021 (FY2021: 85.2%)

• New and recently opened stores trading

well and in line with business plans

• Investment in our digital marketing platform

continuing to deliver for the business:

• Online enquiries in FY2022 rose to 90%

of our total enquiries in the UK (FY2021:

89%) and 85% in France (FY2021: 84%)

• Marketing cost as a percentage of

revenue reduced to 3.6% (FY2021: 3.7%)

Strategic progress

• Store openings in London Bow, Barcelona,

and Nijmegen in the Netherlands added

c.126,000 sq ft of MLA

with a further two

Madrid stores opened post year end in

November 2022, adding a further 85,000

sq ft of MLA

• Lease extensions signed in Exeter, London

Crayford and Sunderland

• Five store extensions adding c.38,000 sq ft

of MLA in London Paddington Marble Arch,

Southend, London Edgware, London

Wimbledon, and Winchester

• Acquired a 14,000 sq ft MLA freehold store

in Christchurch

, Dorset, from Your Room

Self Storage

• Development pipeline expanded by c.0.7m

sq ft of future MLA and eleven projects to

c.1.4m sq ft and 29 projects (equivalent to

c.18% of existing portfolio):

• Eleven UK projects to add c.512,000 sq ft

• Six developments in Barcelona and Madrid

to add c.262,000 sq ft (an additional two

developments opened since year end,

adding a further 85,000 sq ft)

• Seven Paris projects to add c.349,000 sq ft

• Five Netherlands sites to add

c.283,000sq ft

• Completed EPS accretive acquisition of

remaining 80% of equity owned by Carlyle

in the Benelux Joint Venture

in March

2022 at an Enterprise Value of €146 million.

The Benelux business now consists of

15high quality stores with an MLA

600,000 sq ft in the Netherlands

andBelgium

• Entry into German market via a new Joint

Venture

(“JV”) with Carlyle which has

acquired the seven-store myStorage

business with 326,000 sq ft of MLA

ESG

• Continued development of Environmental,

Social and Governance (“ESG”) strategy:

• Linkage of new £400 million refinancing

to ESG targets

• Group commitment to be operationally

carbon neutral by 2035

• ESG progress illustrated by awards of:

• GRESB ‘A’ rating for public disclosures

• EPRA Silver rating for sustainability

• MSCI ‘AA’ rating for ESG

• Highest rating of five stars from Support

The Goals

Strong and flexible balance sheet

• 30.9% increase in property valuation

(including investment properties under

construction) driven by improved trading

performance, new stores, acquisitions,

revisions to exit cap rates and stabilised

occupancy assumptions

• Revolving Credit Facilities (“RCF’s”) refinanced

with a new increased £400 million unsecured

multi-currency four-year facility (with two

one-year extension options). Margins remain

at 1.25% in line with previous RCF’s and all

facilities, including private placement notes,

are now unsecured

• Group loan-to-value ratio (“LTV”

) at 23.6%,

calculated on net debt (31 October 2021: 22.7%)

and interest cover ratio (“ICR”

) at 11.4x

(31 October 2021: 10.5x)

• In addition to strong free cash flow, significant

financing in place to fund pipeline including

unutilised bank facilities of £208.4 million

at31 October 2022 and no borrowings to

refinance before May 2024. In addition,

afurther uncommitted £100 million

accordion facility incorporated into the

newbank facilities

• 93% of drawn debt at fixed rates or hedged

at 31 October 2022

Revenue (£’m)

£212.5m

+13 .8%

186.8

162.3

151.8

143.9

129.9

212.522

Dividend (pence per share)

29.80p

+18 .7%

25.1021

18.60

17. 5 0

16.25

14.0017

29.8022

118 .021

93.920

87.5

82.9

74.417

135.1

Underlying EBITDA

(£’m)

£135.1m

+14.5%

Highlights

Learn more about our Sustainability

frompage46

Learn more about our Corporate

Governance from page 74

OVERVIEW

STRATEGIC REPORT

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc Annual report and financial statements 2022

Safestore Holdings plc | Annual report and financial statements 2022

OVERVIEW

Key measures

Year ended

31 October

2022

Year ended

31 October

2021 Change Change – CER

Underlying and operating metrics – total

Revenue £212.5m £186.8m 13.8% 14.3%

Underlying EBITDA

£135.1m £118.0m 14.5% 15.1%

Closing Occupancy (let sq ft- million)

6.317 5.883 7.4% n/a

Closing Occupancy (% of MLA)

82.1% 84.5% -2.4ppts n/a

Average Storage Rate

£29.25 £26.95 8.5% 9.2%

Adjusted Diluted EPRA Earnings per Share

47.5p 40.5p 17.3% n/a

Free Cash Flow

£101.4m £89.5m 13.3% n/a

EPRA Basic NTA per Share

£9.08 £6.97 30.3% n/a

Underlying and operating metrics – like-for-like

Revenue £204.3m £185.5m 10.1% 10.7%

Underlying EBITDA

£131.6m £117.0m 12.5% 13.0%

Closing Occupancy (let sq ft- million)

5.725 5.838 -1.9% n/a

Closing Occupancy (% of MLA)

83.1% 85.2% -2.1ppts n/a

Average Occupancy (let sq ft- million)

5.723 5.685 0.7% n/a

Average Storage Rate

£29.99 £27.03 11.0% 11.5%

Statutory metrics

Operating profit

£514.5m £417.0m 23.4% n/a

Profit before tax

£498.8m £404.6m 23.3% n/a

Diluted Earnings per Share 212.4p 176.4p 20.4% n/a

Dividend per Share 29.8p 25.1p 18.7% n/a

Cash inflow from operating activities £109.8m £97.0m 13.2% n/a

Diluted net assets per share

£8.20 £6.35 29.1% n/a

Notes to Highlights, Financial highlights, Chairman’s statement & Chief Executive’s statement

We prepare our financial statements using IFRS. However, we also use a number of adjusted measures in assessing and managing the performance of the business. These measures are

not defined under IFRS and they may not be directly comparable with other companies’ adjusted measures and are not intended to be a substitute for, or superior to, any IFRS measures of

performance. These include like-for-like figures to aid in the comparability of the underlying business as they exclude the impact on results of purchased, sold, opened or closed stores

and constant exchange rate (“CER”) figures are provided in order to present results on a more comparable basis, removing FX movements. These metrics have been disclosed because

management reviews and monitors performance of the business on this basis. We have also included a number of measures defined by EPRA, which are designed to enhance transparency

and comparability across the European Real Estate sector; see notes 6 and 13 below and “Non-GAAP financial information” in the notes to the financial statements.

1 CER is Constant Exchange Rates (Euro denominated results for the current period have been retranslated at the exchange rate effective for the comparative period. Euro denominated

results for the comparative period are translated at the exchange rates effective in that period. This is performed in order to present the reported results for the current period on a more

comparable basis).

2 Underlying EBITDA is defined as Operating Profit before exceptional items, share-based payments, corporate transaction costs, change in fair value of derivatives, gain/loss on investment

properties, variable lease payments, depreciation and the share of associate’s depreciation, interest and tax. Underlying EBITDA therefore excludes all leasehold rent charges. Underlying

profit before tax is defined as Underlying EBITDA less leasehold rent, depreciation charged on property, plant and equipment and net finance charges relating to bank loans and cash.

3 Occupancy excludes offices but includes bulk tenancy. As at 31 October 2022, closing occupancy includes 24,000 sq ft of bulk tenancy (31 October 2021: 14,000 sq ft).

4 MLA is Maximum Lettable Area. At 31 October 2022, Group MLA was c.7.70m sq ft (FY2021: c.6.96m sq ft).

5 Average Storage Rate is calculated as the revenue generated from self storage revenues divided by the average square footage occupied during the period in question.

6 Adjusted Diluted EPRA EPS is based on the European Public Real Estate Association’s definition of Earnings and is defined as profit or loss for the period after tax but excluding corporate

transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further adjustments for the impact of

exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted number of shares. The IFRS 2

cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element). Therefore neither the Company’s

ability to distribute nor pay dividends is impacted (with the exception of the associated National Insurance element). The financial statements will disclose earnings on a statutory, EPRA

and Adjusted Diluted EPRA basis and will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest.

7 Free cash flow is defined as cash flow before investing and financing activities but after leasehold rent payments.

8 Like-for-like adjustments remove the impact of the 2022 acquisition of the Netherlands and Belgium Joint Venture, the 2022 acquisition of Christchurch, the 2022 openings of Bow,

Nijmegen (Netherlands), and Barcelona, the 2021 openings of Birmingham Middleway and Magenta in Paris and the 2021 closure of Birmingham South.

9 Operating profit increased by £97.5 million to £514.5 million (FY2021: £417.0 million) principally as a result of an increase in the gain on investment properties of £60.5 million to £381.6million

(FY2021: £321.1 million), as well as an increase of £17.1 million or 14.5% in Underlying EBITDA as a result of stronger trading performance. Profit before income tax additionally included

exceptional items of £10.8 million, being other exceptional gains. This included £5.5 million relating to the valuation gain recognised of the 20% equity investment held in the Joint Venture

with CERF, when the Group acquired the remaining 80% on 30 March 2022 and £5.1 million relating to the net gain on disposal of the Paris Nanterre site in November 2021.

10 The enterprise value paid for Your Room Self Storage in Christchurch, Dorset, on 7 December 2021 was £2.45 million.

11 LTV ratio is Loan-to-Value ratio, which is defined as gross debt (excluding lease liabilities) as a proportion of the valuation of investment properties and investment properties under

construction (excluding lease liabilities). At 31 October 2022, the Group LTV ratio was 24.4%. Under the new revolving credit facility, signed 11 November 2022, LTV is to be calculated

against net debt which equates to an LTV of 23.6%.

12 ICR is interest cover ratio, and is calculated as the ratio of Underlying EBITDA after leasehold rent to underlying finance charges.

13 EPRA basic NAV was superseded and transitioned to three new measures: EPRA Net Reinstatement Value (“NRV”), EPRA Net Tangible Assets (“NTA”) and EPRA Net Disposal Value

(“NDV”) for periods commencing 1 January 2020 or thereafter. Safestore considers EPRA NTA to be the most consistent with the nature of the Group’s business. The basis of calculation,

including a reconciliation to reported net assets, is set out in note 15 of the Financial Statements.

14 On 30 March 2022, the Group acquired the remaining 80% of the Joint Venture with CERF. Prior to acquiring the 80%, the Joint Venture with CERF, which represented a 20% investment,

was accounted for as an associate using the equity method of accounting, as described in the “Investment in associates” note to the financial statements.

15 On 1 December 2022, the Group made an initial investment into a new Joint Venture with Carlyle, to enter the German self storage market, of c.€2.2 million for a 10% share. The Group will

also earn a fee for providing management services to the Joint Venture.

Financial highlights

We love

customers

We lead

the way

We have

great people

We dare to

be different

We get it

Our values

Our values, created by our store teams, are the foundation of everything we do

See page 53 for more details

How we ensure sustainability

Our people

Provide a great place to work

Our customers

Deliver a great customer

experience and help customers

live and grow sustainably

Our community

Benefit local communities

Our environment

Protect the planet from our

activities; managing risks to our

business from climate change

Read more on pages 34 to 36

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

About us

How we create value

Safestore has a proven track record in long term value creation. The business

model remained resilient during the global financial crisis and the Covid-19

pandemic, with a leading presence in London, Paris, and key markets within the

self storage sector. This is underpinned by developing profitable and sustainable

spaces that allow individuals, businesses, and local communities to thrive.

4. Strategic

benefits of scale

• In-house expertise and scalable

marketing technology

• Systems and pricing analytical capacities

• UK Leading National Accounts offering

5. Strong cash generation

• Scalable platform able to finance

development and acquisition opportunities

• Intelligent use of working capital,

positive operating cash flow, strong

and flexible capital structure, and

quality income-generating assets

• Strong dividend growth

6. Quality of earnings

• Diversified income stream from

90,000 customers

• Existing customers from prior years

driving 70% to 80% of revenue

• High margins – low break-even

• Low maintenance CAPEX

2. Unique portfolio

• European leading platform

• Leading positions in key

“space-constrained” European cities

• Unlet invested space equivalent to

around 35 stores including pipeline

withfurther development

• Growth potential in UK/France and

further expansion in the Netherlands,

Belgium, German, and Spanish markets

1. Attractive market

• Under-supplied and growing industry

• Significant barriers to entry –

constrained supply of

attractive locations

3. People

• A diverse community of well-trained,

motivated and engaged colleagues

• Investors in People Platinum

accreditation awarded

Safestore Holdings plc | Annual report and financial statements 2022

OVERVIEW

Investment case

Our purpose remains simple – to

add stakeholder value by developing

profitable and sustainable spaces

that allow individuals, businesses,

and local communities to thrive

David Hearn

Chairman

The last year has been one of considerable strategic and financial

progress for the Group which is especially impressive on the back

ofan exceptionally strong year in 2021. After three years in the role,

Icontinue to be impressed by the dedication and resilience of the

storeand Head Office teams which have been instrumental in

delivering this progress.

Our purpose remains simple, to continue to add stakeholder value

by developing profitable and sustainable spaces that allow individuals,

businesses, and local communities to thrive. Our strategy is underpinned

by our values, our behaviours and our governance structure which shape

our culture and remain central to the way we conduct our business.

I would like to take this opportunity to congratulate all my colleagues

throughout the Group for their exceptional contributions this year.

Financial and strategic progress

In the last year, the quality, resilience, and importantly, the scalability of

the business model at Safestore have again been demonstrated and I

am delighted to announce, on behalf of the Board of the Group, an excellent

set of results for the financial year ended 31 October 2022.

Management’s first priority remains to maximise the economic return

on our existing store portfolio and its 1.4m sq ft of fully invested unlet

space, building on the significant operational improvements made over

the current management team’s tenure.

In addition to improving returns from our existing portfolio, the Group

has continued to make significant strategic progress in expanding its

footprint through a combination of new store openings and acquisitions.

The Group has now acquired 46 and opened 20 stores over the last

six years and all are performing well. The acquisition of OhMyBox! in

Barcelona in 2019 is now fully integrated into the business and has an

exciting pipeline, with two stores opening in November 2022, and a

further six stores over the next two financial years. Our EPS accretive

acquisition of the 80% share in the Benelux Joint Venture owned by

Carlyle means that the Group now fully owns the operations of 15 stores in

the Netherlands and Belgium with a further five in the pipeline. Overall,

we have a development property pipeline of an additional 1.4m sq ft of

MLA, which provides significant future opportunity for the business

and underpins our continued growth.

The recent establishment of a new £400 million unsecured multi-currency

RCF at attractive margins offers us significantly greater strategic flexibility

to support these growth plans.

Our new Joint Venture

with Carlyle in Germany and recent

acquisitions in Spain, the Netherlands, and Belgium provide us with

exciting platforms in new attractive geographies. I believe that

Safestore’s highly scalable platform will allow us to take advantage of

further opportunities in due course.

Financial results

Revenue for the year was £212.5 million, 13.8% ahead of last year

(FY2021: £186.8 million), or 14.3% ahead on a constant currency basis.

Like-for-like

revenue was up 10.7% in constant currency. This result

was driven by an exceptional performance in the UK which grew

like-for-like

revenue by 12.2%, combined with another strong performance

by Une Pièce en Plus, our Parisian business, which grew like-for-like

revenue by 5.3%.

Particularly encouragingly, this significant growth in revenue delivered

a further improvement in margins. Underlying EBITDA

increased by

14.5% to £135.1 million (FY2021: £118.0 million) and on a constant

currency basis by 15.1%.

Operating profit increased by £97.5 million from £417.0 million in 2021

to £514.5 million in 2022, reflecting a higher investment property gain

in 2022 combined with the increase in Underlying EBITDA

, a reduction

in the share-based payments charge, as well as other exceptional gains.

Adjusted Diluted EPRA Earnings per Share

grew by 17.3% to 47.5pence

(FY2021: 40.5 pence). Adjusted Diluted EPRA Earnings per Share

has

grown by 36.8 pence or 344% over the last nine years. Statutory diluted

Earnings per Share increased to 212.4 pence (FY2021: 176.4pence) as

a result of the increase in Adjusted Diluted EPRA Earnings per Share

combined with an increased gain on valuation ofinvestment properties.

Finally, the Group’s balance sheet remains robust with a Group LTV

ratio of 24.4%, calculated on gross debt (FY2021: 24.9%) and an ICR

of 11.4x (FY2021: 10.5x).

This represents a level of gearing we consider

appropriate for the business

to enable the Group to increase returns on

equity, maintain financial flexibility and achieve our medium term

strategic objectives.

This year’s results continue a sustained period of excellent performance

by the Group. Over the last nine years, the management and store teams

have delivered a Total Shareholder Return of 779.4%, ranking at number

one in the UK property sector. Since flotation in 2007, Safestore has

also delivered the highest Total Shareholder Return of any UK listed

self storage operator.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Chairman’s statement

ESG

Away from the financial results, I am pleased with the progress the

Group has made with its ESG strategy.

Even though Safestore already has one of the lowest environmental

impact profiles of any company within the overall property sector,

wehave continued to focus on our environmental agenda, with

year-on-year reductions in greenhouse gas emissions and enhanced

disclosures in recognition of the recommendations of the TCFD. I am

pleased to report that we have retained a Silver rating in the 2022

EPRA sustainability awards, an ‘A’ rating for public disclosures by

GRESB, an ‘AA’ rating for ESG by MSCI, and the highest rating of

fivestars by Support the Goals.

In addition, we have demonstrated our commitment to our ESG

agenda by linking the margin on our new £400 million bank facility to

ESG related KPI’s agreed with our lending group. Details of these

achievements are covered more fully in the Chief Executive’s report

and the sustainability section of our Annual Report.

Non-Executive Board changes

During the financial year Claire Balmforth stepped down from the

Board. Claire has served on the Safestore Board for six years and

haschaired the Remuneration Committee for all of that time. As both

aDirector and Chair of the Remuneration Committee, Claire has served

the business outstandingly throughout the last six years and both

personally and on behalf of the Board, I would like to thank her forher

contribution.

I am also delighted to welcome Jane Bentall to the Board. Jane has

extensive experience and understanding of operating multi-site,

consumer-led businesses. Most recently, Jane was Managing Director

of Haven, the UK holiday parks chain and largest business division of

Bourne Leisure. Prior to becoming Managing Director of Haven, she

was the Group Chief Financial Officer for twelve years and previously

spent six years as Operations Director. In her career she has also held

senior financial roles at the Rank Group.

Dividend

Finally, reflecting the Group’s strong trading performance and in line

with our progressive dividend policy, the Board is pleased to recommend

a 15.9% increase in the final dividend to 20.4 pence per share

(FY2021:17.6 pence) resulting in a full year dividend up 18.7% to

29.8pence per share (FY2021: 25.1 pence).

Over the last nine years, the Group has grown the dividend by 418%

or24.1 pence per share, during which period the Group has returned

to shareholders a total of 155.8 pence per share. The total dividend for

the year is covered 1.59 times by Adjusted EPRA Diluted Earnings

(1.61times in 2021). Shareholders will be asked to approve the dividend

at the Company’s Annual General Meeting on 15 March 2023 and,

ifapproved, the final dividend will be payable on 7April 2023 to

shareholders, on the register at close of business on 3 March 2023.

Summary

In conclusion, the Board remains confident in the future growth prospects

for the Group and will continue its progressive dividend policy in 2023

and beyond. In the medium term it is anticipated that the Group’s

dividend will grow at least in line with Adjusted Diluted EPRA Earnings

per Share

David Hearn

Chairman

16 January 2023

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chairman’s statement continued

The Group has delivered an

excellent performance in 2022

building on arecord 2021

Frederic Vecchioli

Chief Executive Officer

Summary

In 2022, the Group delivered 17.3% growth in Adjusted Diluted

EPRA Earnings per Share largely driven by organic growth. Total

Group revenue increased by 13.8% (14.3% CER

) with a particularly

strong performance in the UK (+13.1%) and continued strength in

Paris (+6.1%) and Spain (+9.1%). On a like-for-like

basis in CER

Group revenue increased by 10.7% with the UK up 12.2%, Paris

up 5.3% and Spain up 8.5% reflecting the strategy to balance rate

growth and occupancy performance to maximise revenue, the Group’s

like-for-like average storage rate

was up 11.5% at CER

and average

occupancy was up 0.7%, whilst like-for-like

closing occupancy

decreased by 2.1ppts to 83.1%.

The Group has traded well throughout the year despite a difficult

comparable performance in the record 2021 financial year. Our digital

marketing platform has driven good enquiry generation and conversion,

and our ongoing commitment to investing in and supporting the

development of our colleagues has resulted in like-for-like

revenue

in the UK growing by 12.2%. The like-for-like average rate growth

drove the UK revenue performance and increased by 13.9% in the

year. After an exceptionally strong 2021, average occupancy grew

by 0.6% and closing occupancy was down 2.6ppts at 83.0%.

In Paris, our performance has also been strong with like-for-like

revenue growing by 5.3% at CER

driven by a like-for-like growth in

average occupancy of 1.4% and like-for-like average storage rate

growing by 4.3% at CER

. Like-for-like

closing occupancy ended

the year at a similar level to the prior year at 83.4% (FY2021: 83.6%).

This is the 24th consecutive year of revenue growth in Paris with

average growth over the last seven years of approximately 5%.

Our Spanish business saw a strong 8.5% growth in like-for-like revenue

for the year driven by an increase in the like-for-like average rate of

5.8%. Ancillary sales were also strong. A fifth Spanish store opened

in the year and total revenue growth was 9.1%.

The Group’s current pipeline of new developments and store

extensions has grown significantly over the last year and now

constitutes c.1.4m sq ft of future MLA (equivalent to 18% of the

existing portfolio) and associated outstanding capital expenditure

of£146 million. The pipeline consists of eleven projects in the UK,

seven in Paris, six in Spain, and five in the Netherlands.

The Group completed the EPS accretive acquisition of the remaining

80% of equity owned by Carlyle in the Benelux JV

in March 2022

at an Enterprise Value of €146 million. The Benelux business consists

of 15 high quality stores with an MLA of 600,000 sq ft in the

Netherlands and Belgium.

Group Underlying EBITDA

of £135.1 million increased by 15.1%

atCER

on the prior year. The Group’s EBITDA

performance, offset

by a modest increase in leasehold rent and an increase in finance

costs, resulted in a 17.3% increase in Adjusted Diluted EPRA EPS

in the period to 47.5 pence (FY2021: 40.5 pence). Statutory operating

profit increased by £97.5 million to £514.5 million (FY2021:£417.0

million) principally as a result of an increase in the gain on investment

properties of £60.5 million to £381.6 million (FY2021: £321.1 million),

along with an increase of £17.1 million or14.5% in Underlying EBITDA

as a result of stronger tradingperformance.

Our property portfolio valuation, including investment properties

under construction, increased in the year by 30.9%, driven by the

stronger underlying performance of the stores, modest revisions to

exit cap rates and stabilised occupancy assumptions, new stores,

acquisitions, and FX. After exchange rate movements, the portfolio

valuation increased to £2,552.3 million with the UK portfolio up

£340.7 million to a total UK value of £1,815.5 million and the

French portfolio increasing by €104.3 million to €625.9 million.

Reflecting the Group’s strong trading performance, the Board is

pleased to recommend a 15.9% increase in the final dividend to

20.4 pence per share (FY2021: 17.6 pence) resulting in a full year

dividend up 18.7% to 29.8 pence per share (FY2021: 25.1 pence).

Over the last nine years, the Group has grown the annual dividend

by 418% or 24.1 pence per share.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Chief Executive’s statement

Outlook

In the last seven financial years, Safestore has strengthened its

market-leading positions in the UK and Paris with the acquisitions of

Space Maker, Alligator, Fort Box, and our stores at Heathrow and

Christchurch

, as well as opening 20 new stores, with a further two

Madrid stores opening in November 2022, and establishing a pipeline

of c.1.4m sq ft of MLA. In addition, the Group has entered new markets

in Spain together with Belgium and the Netherlands, and more recently

Germany through our new Joint Venture

with Carlyle. Excluding the

Joint Venture and the development pipeline, there is 1.4m sq ft of fully

invested unlet space available, offering significant operational upside

within the existing portfolio.

We remain focused on further optimising the Group’s operational

performance and continuing to grow in all of our geographies. Our

development pipeline represents 18% of our existing MLA and our

balance sheet strength and flexibility provide us with the opportunity

to consider further selective development and acquisition opportunities

in all of our markets.

Whilst we are aware of the current macro-economic challenges, our

business model has proven to be highly resilient with multiple drivers

of demand and we believe the Group, whilst not entirely immune from

any cost of living or inflationary issues, is strongly positioned to

withstand any downturn.

In the first two months of the 2022/23 financial year we have seen

broadly stable levels of demand compared to last year (but significantly

ahead of pre-pandemic levels) with like-for-like Group revenue (at

CER

) up 3.5% and total revenue (at CER

) up 8.7%.

Our strategy

The Group intends to continue to deliver on its proven strategy of

leveraging its well-located asset base, management expertise,

infrastructure, scale and balance sheet strength and further increase

its Earnings per Share by:

• Optimising the trading performance of the existing portfolio;

• Maintaining a strong and flexible capital structure; and

• Taking advantage of selective portfolio management and expansion

opportunities in our existing markets and, if appropriate, in attractive

new geographies either through a Joint Venture or in our own right.

In addition, the Group’s strategy is pursued whilst maintaining a strong

focus on Environmental, Social and Governance (“ESG”) matters, and

a summary of our ESG strategy is provided further on.

Optimisation of existing portfolio

With the opening of 22 new stores since August 2016, and the

acquisitions of 46 stores through the purchases of Space Maker in

July2016, Alligator in November 2017, our Heathrow store, Fort Box

inLondon and OhMyBox! in Barcelona in 2019, Your Room in 2021

and theBenelux JV in 2022, we have established and strengthened

our market-leading portfolio in the UK and Paris, and have entered the

Spanish, Netherlands, and Belgium markets. We have a high quality,

fully invested estate in all geographies and, of our 179 stores as at

31October 2022, 101 are in London and the South East of England

orin Paris, with 58 in the other major UK cities and 20 in Barcelona

and the Benelux region. In the UK, we now operate 49 stores within

the M25, which represents a higher number of stores than any

othercompetitor.

Our MLA

has increased to 7.7m sq ft at 31 October 2022 (FY2021:

6.96m sq ft). At the current occupancy level of 82.1% we have

1.4msqft of fully invested unoccupied space (2.9m sq ft including

thedevelopment pipeline), of which 1.0m sq ft is in our UK stores,

0.2m sq ft is in Paris and 0.2m sq ft is in Barcelona and Benelux.

Intotal, unlet space at our existing stores is the equivalent of c.35

empty stores located across the estate and provides the Group with

significant opportunity to grow further. We have a proven track record

of filling our vacant space so we view this availability of space with

considerable optimism. We will also benefit from the operational

leverage from the fact that this available space is fully invested and

therelated operating costs are essentially fixed and already included

inthe Group cost base. Our continued focus will be on ensuring that

we drive occupancy to utilise this capacity at carefully managed rates.

Between the full financial years 2013 and 2022, occupancy of the

stores in the portfolio in 2013 that remain in the Group today has

increased from 63.1% to 84.2%, i.e. an average of 2.3ppts per year

and equivalent to a total of 1.1m sq ft.

There are three elements that are critical to the optimisation of our

existing portfolio:

• Enquiry generation through an effective and efficient marketing operation;

• Strong conversion of enquiries into new lets; and

• Disciplined central revenue management and cost control.

Digital Marketing expertise – UK Number 1

SelfStorage Brand

Awareness of self storage remains relatively low with half of the UK

population either knowing very little or nothing about self storage

(source: SSA Annual Report). In the UK, many of our new customers

are using self storage for the first time. It is largely a brand-blind

purchase. Typically, customers requiring storage start their journey by

conducting online research using generic keywords in their locality

(e.g. “storage in Borehamwood”, “self storage near me”) which means

that geographic coverage and search engine prominence remain key

competitive advantages.

We believe there is a clear benefit of scale in the generation of

customer enquiries. The Group has continued to invest in technology

and in-house expertise which has resulted in the development of a

leading digital marketing platform that has generated 54% enquiry

growth for the Group over the last five years. Our in-house expertise

and significant annual budget have enabled us to deliver strong

results. Safestore is the UK number 1 self storage brand as it has

morenew lets per year than any other brand.

The Group’s online strength came to the fore during the various

Covid-19 lockdowns and has since continued to support customer

acquisition growth. Online enquiries in FY2022 rose to 90% of our

enquiries in the UK (FY2021: 89%) and 85% in France (FY2021: 84%).

The majority of our online enquiries now originate from a mobile device

(65% share in FY2022), highlighting the need for continual investment

in our responsive web platform for a “mobile-first” world. We continue

to invest in activities that promote a strong search engine presence

togrow enquiry volume whilst managing efficiency in terms of overall

cost per enquiry and cost per new let. Group marketing costs as a

percentage of revenue were 3.6% for the full year (FY2021: 3.7%).

Thispercentage has constantly reduced over the last eight years

and isnow at its lowest level in that period.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

During the 2021/22 trading year, the Group demonstrated its ability

tointegrate newly developed and acquired stores into its marketing

platform with successful new openings at Bow (London, UK),

Christchurch (Dorset, UK), Nijmegen (Netherlands), and an additional

store in Barcelona. We have now clearly demonstrated that our marketing

platform is transferable into multiple overseas geographies.

In February 2022, Safestore UK won the Feefo Platinum Trusted

Service award for the third time. The award is given to businesses

which have achieved Gold standard for three consecutive years. It is

an independent mark of excellence that recognises businesses for

delivering exceptional experiences, as rated by real customers. In addition

to using Feefo, Safestore invites customers to leave a review on a

number of review platforms, including Google and Trustpilot. Our ratings

for each of these three providers in the UK are between 4.6 and 4.8

out of 5. In France, Une Pièce en Plus uses Trustpilot to obtain

independent customer reviews and in FY2022 achieved a TrustScore

of 4.6 out of 5. In Spain, OhMyBox! collects customer feedback via

Google reviews and has maintained a score of 4.6 out of 5.

Motivated and effective store teams benefiting

from investment in training and development

In what is still a relatively immature and poorly understood product,

customer service and selling skills at the point of sale remain essential

in earning the trust of the customer and in driving the appropriate

balance of volumes and unit price in order to optimise revenue growth

in each store.

In the first half of our 2021/22 trading year, we moved away from

Covid-19 based restrictions to a business-as-usual operating model in

stores, removing all screens and signage, although we continue to

display advisory mask and distancing messages along with safe

working protocols for both our customers and colleagues.

Our enthusiastic, well-trained, and customer-centric sales team remains

a key differentiator and a strength of our business. Understanding the

needs of our customers and using this knowledge to develop in-store

trusted advisers is a fundamental part of driving revenue growth and

market share.

Safestore has been an Investors in People (“IIP”) accredited

organisation since 2003 and we passionately believe that our continued

success is dependent on our highly motivated and well-trained colleagues.

Following the award of a Bronze accreditation in 2015 and a Gold

accreditation in 2018, we were delighted to be awarded the “we invest

in people” Platinum accreditation in February 2021. This is the highest

accolade in the Investors in People scale and positions us as an employer

of choice. Shortly after our Platinum accreditation, we were shortlisted

for the Platinum Employer of the Year (250+) category in the Investors

in People Awards 2021. This further endorses the high standard of our

teams and the people development programmes that drive our skill

and talent retention.

IIP is the international standard for people management, defining

what it takes to lead, support and engage people effectively to achieve

sustainable results. Underpinning the standard is the Investors in

People framework, reflecting the latest workplace trends, essential

skills and effective structures required to outperform in any industry.

Investors in People enables organisations to benchmark against the

best in the business on an international scale. We are proud to have

our colleagues recognised to such a high standard, not only in our

industry, but also across over 50,000 organisations in 66 countries.

This sustained people engagement focus is an essential component

ofour continuous improvement mentality.

We are committed to growing and rewarding our people and we tailorour

development, reward and recognition programmes to reflect this. Our IIP

recognised coaching programme, launched in 2018 andupgraded every

year since, continues to be a driving force behindthe continuous

performance improvement demonstrated by our store colleagues.

The Covid-19 pandemic provided a challenging environment requiring

us to operate in some new and innovative ways. Our online learning

portal, combined with the energy and flexibility of our store colleagues,

allowed us to not only continue to deliver our award-winning development

programmes but also to capitalise on the strength of our IT platforms.

As the restrictions in the UK relaxed through the second half of 2021,

we were able to combine our newly created technology communication

skills with our tried and tested face-to-face training sessions in a newly

created “impact” sales refresher.

Following our late 2021 sales refreshers, we took the opportunity to

review many of our training, coaching and compliance tools to take

advantage of our higher performance levels and skilled colleagues. The

integration of flexible contract types and enhanced digital contracts have

all been included in our updated version of QUEST, oursales framework.

This two-day programme has been delivered, face-to-face, to every

colleague in our store and field teams in the first half of 2022.

We recognised the changing needs and demands of our customers,

not only through the challenging times of 2020/21, but also through the

newly emerging demands and requirements in late 2021. Combining

new, along with tried and tested, solutions and systems, we are further

able to support our store colleagues, allowing them to fulfil the needs

ofour customers over and above that of our competitors. Our flexible

contract types and enhanced digital contract completion further

enhance our customer offer and experience. These enhancements

have combined to help us create our 2023 QUEST programme which

commenced roll-out in late September 2022 focusing on the new

contract types and technologies available to us.

All new recruits to the business benefit from enhanced induction and

training tools that have been developed in-house and enable us to quickly

identify high-potential individuals and increase their speed to competency.

They receive individual performance targets within four weeks of joining

the business and are placed on the ‘pay-for-skills’ programme that allows

accelerated basic pay increases dependent on success in demonstrating

specific and defined skills. The key target ofour programme remains that

we grow our talent through our Store Manager Development programme,

and we are pleased with our progress to date.

Our internal Store Manager Development programme (“SMD”) has

been in place since 2016 and is a key part of succession planning

forfuture Store Managers. In May 2022, we began our assessment

process for the sixth intake of the SMD with a first-class group of

candidates ready to learn the necessary skills and attributes they need

to become a Safestore Store Manager. Funded by the Apprenticeship

Levy this programme provides the opportunity to complete a Level 3

Management and Leadership apprenticeship, with the additional

opportunity to complete an Institute of Leadership and Management

(“ILM”) qualification.

Our Store Manager Development programme demonstrates the

effectiveness of our learning tools. In a spirit of constant improvement,

our content and delivery process is dynamically enhanced through

our360-degree feedback process utilising the learnings from not only

the candidates but also from our training Store Managers and senior

business leaders. This allows our people to be trained with the

knowledge and skills to sell effectively in today’s marketplace.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Motivated and effective store teams benefiting

from investment in training and development

continued

Our Senior Manager Development programme (“LEAD”) focuses on

developing our high performing store managers, aimed at preparing

them for more senior roles within the business. This programme is built

on the foundations of our Store Manager Development programme

and included delegates delivering performance-enhancing projects

to our wider business. We are proud that all nine participants of our

Senior Leadership Development programme ‘LEAD Academy’

successfully completed their Level 5 Management and Leadership

apprenticeship; six of those participants were awarded Distinctions.

Furthermore, we have re-launched our Graduate Programme, with our

first intake commencing in October 2022, providing an opportunity

fornewly qualified graduates to build their skillset and experience,

resulting in a career with Safestore.

Our performance dashboard allows our store and field teams to focus

on the key operating metrics of the business providing an appropriate

level of management information to enable swift decision-making.

Reporting performance down to individual colleague level enhances

our competitive approach to team and individual performance.

Wecontinue to reward our people for their performance with bonuses

of up to 50% of basic salary based on their achievements against

individual targets for new lets, occupancy, and ancillary sales.

Inaddition, our Values and Behaviours framework is overlaid on

individuals’ performance in order to assess performance and

development needs on a quarterly basis.

Our ‘Make the Difference’ people forum, launched in 2018, enables

frequent opportunities for us to hear and respond to our colleagues.

Our network of 15 ‘People Champions’ collect questions and feedback

from their peers across the business and put them to members of the

Executive Committee. We drive change and continuous improvement

in responding to the feedback we receive for; ‘Our Business,

OurCustomers, and Our Colleagues’.

People Champions:

• consult and collect the views and suggestions of all colleagues that

they represent;

• engage in the bi-annual ‘Make the Difference’ people forum, raising

and representing the views of their colleagues; and

• consult with and discuss feedback with management and the

leadership team at Safestore.

Our values are authentic, having been created by our people. They are

core to the employment life cycle and bring consistency to our culture.

Our leaders have high values alignment enabling us to make the right

decisions for our colleagues and our customers. Our customers continue

to be at the heart of everything we do, whether it be in store, online

or in their communities. In 2022 we maintained our industry-leading

independent customer ratings, with a Feefo Platinum Trusted Service

award and a 5-star Trustpilot rating, with over twice the reviews of

our nearest competitor. Along with our strong Google ratings, these

independent assessments further reflect our ongoing commitment to

customer satisfaction as the number one storage provider in the UK.

Central revenue management and cost control

We continue to pursue a balanced approach to revenue management.

We aim to optimise revenue by improving the utilisation of the available

space in our portfolio at carefully managed rates. Our central pricing

team is responsible for the management of our dynamic pricing policy,

the implementation of promotional offers and the identification of

additional ancillary revenue opportunities. Whilst price lists are

managed centrally and are adjusted on a real-time basis, the store

sales teams have, from time to time, the ability to offer a ‘Lowest Price

Guarantee’ in the event that a local competitor is offering a lower price,

or the ability to offer discretionary discounts. The Lowest Price

Guarantee and discretionary discount are centrally controlled and

activated on a store by store and unit by unit basis.

Average rates are predominantly influenced by:

• the store location and catchment area;

• the volume of enquiries generated online;

• the store team skills at converting these enquiries into new lets at

the expected price; and

• the very granular pricing policy and the confidence provided by

analytical capabilities and systems that smaller players might lack.

We believe that Safestore has a very strong proposition in each of

these areas.

Costs are managed centrally with a lean structure maintained at Head

Office. Enhancements to cost control are continually considered and

the cost base is challenged on an ongoing basis.

Strong and flexible capital structure

Since 2014 we have refinanced the business on seven occasions,

each time optimising our debt structure and improving terms, and

believe we have maintained a capital structure that is appropriate for

our business and which provides us with the flexibility to take advantage

of carefully evaluated development and acquisition opportunities.

At 31 October 2022, based on the current level of borrowings and

interest swap rates, the Group’s weighted average cost of debt was

2.41% and 93% of our drawn debt was at fixed rate or hedged.

Theweighted average maturity of the Group’s drawn debt is 5.1 years

at the current period end and the Group’s LTV ratio is 24.4% as at

31October 2022.

Based on our current development pipeline and our internal

assumptions on how SONIA and EURIBOR will grow over the coming

months, we anticipate that our weighted average cost of debt will

increase to c.2.6% to 2.8% by the end of 2023.

This LTV of 24.4% and interest cover ratio of 11.4x for the rolling

twelve-month period ended 31 October 2022 provides us with

significant headroom compared to our banking covenants. We had

£208.4 million of undrawn bank facilities at 31 October 2022 before

taking into consideration the additional £100 million uncommitted

accordionfacility.

Taking into account the improvements we have made in the

performance of the business, the Group is capable of generating free

cash after dividends sufficient to fund the building of three to four new

stores per annum depending on location and availability of land.

The Group evaluates development and acquisition opportunities in

a careful and disciplined manner against rigorous investment criteria.

Our investment policy requires certain Board-approved hurdle rates

tobe considered achievable prior to progressing an investment

opportunity. In addition, the Group aims to maintain a Group LTV

ratio below 40% which the Board considers to be appropriate for

theGroup.

New financing

In April 2022, Safestore drew its existing uncommitted $115 million

Shelf Facility. The facility was drawn in Euros for a seven-year term

at an interest rate of 2.45% in order to partially fund the acquisition

of Carlyle’s 80% share of the Benelux JV.

Since the end of the financial year, the Group has completed the

refinancing of its Revolving Credit Facilities (“RCF’s”) which were due

to expire in June 2023.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

The previous £250 million Sterling and €70 million Euro secured RCF’s

have been replaced with a single multi-currency unsecured £400 million

facility. In addition, a further £100 million uncommitted accordion

facility is incorporated into the facility agreement.

The facility is for a four-year term with two one-year extension options

exercisable after the first and second years of the agreement.

The Group will pay interest at a margin of 1.25% plus SONIA or

EURIBOR depending on whether the borrowings are drawn in Sterling

or Euros. The margin is at the same level as the previous facility

agreements.

A commitment fee of 35% of the margin is payable on undrawn

amounts under the facility. This has reduced from 40% under the

previous facility agreements.

Reflecting the Group’s improved credit profile, the banking group

andexisting US Private Placement Noteholders have agreed that all

ofthe Group’s previously secured borrowings move to an unsecured

basis, thus reducing administrative and legal costs associated with

thefacilities.

The main covenants under all of the Group’s borrowings are a Group

loan-to-value (“LTV”) covenant of 60% (replacing separate UK and

French LTV covenants) which is based on net debt rather than gross

debt and an Interest Cover Ratio covenant of 2.4x.

The hedging arrangements under the previous facility agreements

have been continued under the new agreements. Therefore, the Group

benefits from £55 million of Interest Rate Swaps until 30 June 2023 at

a rate of 0.6885%.

Environmental, Social and Governance (“ESG”) KPI’s have been

agreed with the Group’s lenders. The margin under the facility is now

linked to ESG targets, where met enable a reduction in the margin

of up to 5bps.

ESG strategy

ESG: Sustainable Self Storage

Our purpose – to add stakeholder value by developing profitable and

sustainable spaces that allow individuals, businesses, and local

communities to thrive – is supported by the ‘pillars’ of our sustainability

strategy: our people, our customers, our community, and our

environment. In addition, the Group and its stakeholders recognise

that its efforts are part of a broader movement and we have, therefore,

aligned our objectives with the UN Sustainable Development Goals

(“SDGs”). We reviewed the significance of each goal to our business

and the importance of each goal to our stakeholders and assessed

our ability to contribute to each goal. Following this materiality exercise,

we have chosen to focus our efforts in the areas where we can have

a meaningful impact. These are “Decent work and economic growth”

(goal 8), “Sustainable cities and communities” (goal 11), “Responsible

consumption and production” (goal 12), and “Climate action” (goal 13).

Sustainability is embedded into day-to-day responsibilities at Safestore

and, accordingly, we have opted for a governance structure which

reflects this. Two members of the Executive Management team

co-chair a cross-functional sustainability group consisting of the

functional leads responsible for each area of the business.

In 2018, the Group established medium term targets in each of the

‘pillars’ towards which the Group continued to progress in FY2022.

Our people: Safestore was awarded the prestigious Investors in

People (“IIP”) Platinum accreditation and was in the final top ten

shortlist for Platinum Employer of the Year (250+) category in The

Investors in People Awards 2021. The Group’s response during the

pandemic lockdowns and aftermath has had a profound impact

on trust in leadership and colleague engagement and motivation.

Our customers: The Group’s brands continue to deliver a high quality

experience, from online enquiry to move-in. This is reflected in customer

satisfaction scores on independent review platforms (Trustpilot,

Feefo,Google) of over 90% in each market. The introduction of digital

contracts during the pandemic offers both customer convenience and

a reduction in printing, saving an estimated 44,000 pieces of paper

each month.

Our community: Safestore remains committed to being a responsible

business by making a positive contribution within the local communities

wherever our stores are based. We continue to do this by developing

brownfield sites and actively engaging with local communities when

we establish a new store, identifying and implementing greener

approaches in the way we build and operate our stores, helping charities

and communities to make better use of limited space, and creating

and sustaining local employment opportunities directly and indirectly

through the many small and medium-sized enterprises which use our

space. During FY2022, the space occupied by local charities in 222

units across 103 stores was 18,903 sq ft and worth £0.7 million.

Our environment: Safestore is committed to ensuring our buildings

are constructed responsibly and their ongoing operation has a minimal

impact on local communities and the environment. It should be noted

that the self storage sector is not a significant consumer of energy

when compared with other real estate subsectors. As a result,

operational emissions intensity tends to be far lower. According to a

2021 report by KPMG and EPRA, self storage generates the lowest

greenhouse gas emissions intensity (5.75 kg/m

for Scope 1 and 2) of

all European real estate sub-sectors, with emissions per m

less than

30% of the European listed real estate average (19.5 kg/m

) and

notably 21% of the emissions intensity of the residential sub-sector

(27.0 kg/m

). Reflecting the considerable progress made on energy

mix, efficiency measures and waste reduction to date, Safestore’s

emissions intensity (3.9 kg/m

in 2020) is considerably lower (-32%)

than the self storage subsector average. In FY2022, the Group

continued to progress with a further 2.7% decline in absolute emissions

despite continued portfolio growth and greater utilisation of stores

compared to 2021. Safestore’s absolute (location-based) emissions

are now 54% below, and emissions intensity 68% below the 2013

baseline level despite significant growth in portfolio floor space.

Moving forward, the Group has a commitment to be operationally

carbon neutral by 2035 with a medium term target to reduce operational

emissions (market-based) by 50% compared to the level in FY2021

by 2025. The total investment to achieve carbon neutrality should be

around £3 million.

In addition to the IIP award and the customer satisfaction ratings, the

Group has received recognition for its sustainability progress and

disclosures in the last twelve months. Safestore has been given a

Silver rating in the 2022 EPRA Sustainability BPR awards. The Global

ESG Benchmark for Real Assets (“GRESB”) has once again awarded

Safestore an “A” rating in its 2022 Public Disclosures assessment.

MSCI has awarded Safestore its second-highest rating of ‘AA’ for ESG

in 2022. The Group has also been awarded the highest rating of five

stars by Support the Goals.

Finally, the Group has worked with its banking lenders to agree ESG

related KPI’s which are linked to the margin payable under its new

£400 million facility. Two KPI’s have been agreed, which, when

achieved, result in a reduction in margin of up 5bps.

The total capital expenditure on stores opened in the 2022/23 financial

year-to-date as well as the outstanding pipeline is estimated to be

c.£245 million. At our usual Cash on Cash Return hurdles of c.10% we

would estimate that these stores will add c. £24.5 million of EBITDA

atstabilisation (c.four years after opening).

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Portfolio management

Our approach to store development and acquisitions in the UK, Paris

and Spain, and now the Netherlands and Belgium, continues to be

pragmatic, flexible and focused on the return on capital.

Our property teams continue to seek investment opportunities in new

sites to add to the store pipeline. However, investments will only be

made if they comply with our disciplined and strict investment criteria.

Our preference is to acquire sites that are capable of being fully

operational within 18-24 months from completion.

Since 2016, the Group has opened 22 new stores: Chiswick, Wandsworth,

Mitcham, Paddington Marble Arch, Carshalton, Bow (allin London),

Birmingham Central, Birmingham Merry Hill, Birmingham Middleway,

Altrincham, Peterborough, Gateshead and Sheffield in the UK, and

Emerainville, Combs-la-Ville, Poissy, Pontoise and Magenta in Paris,

Nijmegen in the Netherlands, and Pronvenca in Barcelona, with a

further two stores opening in Madrid in November 2022 adding

1,093,000 sq ft of MLA.

In addition, the Group has acquired 46 existing stores through the

acquisitions of Space Maker, Alligator, Fort Box, Salus and Your Room

in the UK, OhMyBox! in Barcelona, and the Lokabox and M3 group

from our Benelux JV acquisition. These acquisitions added a further

1,844,000 sq ft of MLA and revenue performance has been enhanced

in all cases under the Group’s ownership.

We have also completed the extensions and refurbishments of our

Acton, Barking, Bedford, Chingford, Wimbledon, Edgware, Southend,

Paddington Marble Arch, Winchester and Longpont (Paris) stores

adding a net 122,000 sq ft of fully invested space to the estate.

Allofthese stores are performing in line with or ahead of their

businessplans.

The Group’s current pipeline of new developments and store extensions

(see below) has grown significantly over the last year and now constitutes

c.1,407,000 sq ft of future MLA. The pipeline and store openings since

the end of the 2022 financial year is equivalent to c.19% of the existing

portfolio. The outstanding capital expenditure of £146 million is expected

to be funded from the Group’s existing resources. The total capital

expenditure on stores opened in the 2022/23 financial year-to-date

as well as the outstanding pipeline, is estimated to be c.£245 million.

At our usual Cash on Cash Return hurdles of c.10% we would estimate

that these stores will add c.£24.5 million of EBITDA atstabilisation

(c.four years after opening).

Property pipeline

Openings of new stores and extensions in the period

Open 2022 FH/LH Opening Date MLA Other

Redevelopments and extensions

London – Paddington

Marble Arch LH Q1 2022 8,500 Extension

Southend FH Q1 2022 10,100 Extension

London – Edgware FH Q1 2022 22,900 Extension

London – Wimbledon FH Q1 2022 9,000 Extension

Winchester FH Q4 2022 11,000 Extension

New developments

London – Bow FH Q1 2022 74,000 Conversion

Central Barcelona FH Q1 2022 12,500 Conversion

Nijmegen –

Netherlands FH Q1 2022 40,000 Conversion

Open 2023

New developments

Northern Madrid FH Q1 2023 53,000 Conversion

Southern Madrid FH Q1 2023 32,000 Conversion

In September 2020 the Group received planning permission to extend

its Southend store by 10,100 sq ft. The existing store has an MLA of

49,400 sq ft and was 86% occupied at the end of September 2020.

The extension opened in December 2021.

In January 2021, the Group exchanged contracts on a freehold building

in a densely populated area in Central Barcelona. The conversion of

the existing building into a 12,500 sq ft MLA self storage facility is

complete and the store is now open.

In March 2021 and April 2021, the Group exchanged contracts on

twofreehold buildings in Southern Madrid and Northern Madrid

respectively. Both acquisitions have been completed with planning

granted and the existing buildings have been converted into 32,000

and 53,000 sq ft MLA self storage facilities. Both sites opened

post-year end in November 2022.

In April 2021, we exchanged contracts on the acquisition of a 0.5-acre

site adjacent to our existing London Wimbledon store (MLA 58,800 sq

ft). We completed this transaction in December 2021 and construction

was completed just after the period end. The existing reception area

has been relocated to a more prominent and visible roadside location

and a further 9,000 sq ft of storage capacity and 1,000 sq ft of offices

have been added. The Wimbledon store’s peak occupancy, prior to

the Covid-19 pandemic, was 92%.

In May 2021, the Group completed the freehold acquisition of an

0.8-acre site with a 108,000 sq ft warehouse to the east of London

in a prominent position on the A12 in Bow. The building had existing

consent for storage and we only required planning consents for some

external modifications to the building. Otherwise, the building was suitable

for immediate conversion to self storage. The 74,000 sq ft store opened

in December 2021.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

In addition, in May 2021, the Group exchanged contracts on a

leasehold basement car park adjacent to our existing London

Paddington Marble Arch store. The occupancy of the Paddington

Marble Arch store on 31 March 2021 was 80%. The extension opened

in December 2021, adding 8,500 sq ft of MLA.

The Group has also received planning permission to extend its

Edgware store by a further 22,900 sq ft. The existing store has MLA of

24,000 sq ft and reached a peak occupancy of 91% prior to extension

works commencing. The extension opened in December 2021.

An 11,000 sq ft extension to our existing Winchester store opened in

the quarter. The existing store has an MLA of 42,000 sq ft and has

peaked at more than 90% occupancy.

In January 2022, the Netherlands business opened a new store in

Nijmegen. The store is freehold with an MLA of 40,000 sq ft and is

aconversion of an existing building. Nijmegen has a population of

177,000 and the site is well located on a main road with good visibility

and access.

Development sites

In June 2018, Safestore opened its Paddington Marble Arch store.

Aseparate satellite store at Paddington Park West Place, with MLA

of13,000 sq ft, will open during 2024.

In April 2021, the Group exchanged contracts on a freehold 1.3-acre

site at Lea Bridge in Northeast London. The acquisition of the site has

now been completed and we plan to open a 76,500 sq ft MLA store in

2024 as the leases for existing tenants on the site have up to two years

to run. Rental income of approximately £170k per annum is currently

received on this site.

In addition, in April 2021, the Group exchanged contracts on a freehold

site in Woodford in Northeast London. Subject to planning, we will

open a 76,000 sq ft MLA store in 2025.

In July 2021, the Group exchanged contracts on a freehold 0.8-acre

site in Shoreham, West Sussex. Shoreham is situated between

Brighton and Worthing on the south coast of England. Subject to

planning, we will open a purpose built 54,000 sq ft MLA store in 2024.

In November 2021, the Group completed the acquisition of a 1.2-acre

freehold site off Old Kent Road in the London Borough of Southwark

in Southeast London. Subject to planning, we hope to open a c.76,500

sq ft MLA store in due course. Existing tenants on the site will provide

a rental income in the meantime.

In May 2022, the Group completed the acquisition of a 2.1-acre freehold

site including an existing warehouse in Wigan in Greater Manchester.

Subject to minor planning approvals for elevations and signage, we

plan to convert the existing building and open a c.42,700 sq ft MLA

store in 2023.

The Group has also previously acquired two additional sites in London

at Morden and Bermondsey. Morden is a freehold 0.9-acre site in an

established industrial location. Planning permission for a 52,000 sq ft

self storage facility has now been granted and construction on this site

is underway with a view to opening in 2023. Bermondsey is a 0.5-acre

freehold site with income from existing tenants and is adjacent to our

existing leasehold store. Our medium term aim, subject to planning

permission, is to extend our existing Bermondsey operations with the

addition of a new self storage facility to complement our existing store.

In Romford in London, we have secured a freehold site with an existing

warehouse which will be converted, subject to planning permission,

to a 41,000 sq ft store, opening in 2024.

In Crayford, we have secured a leasehold site on which we will convert

an existing warehouse to a 9,400 sq ft extension to our existing

Crayford site. We hope to open the satellite store in 2023.

In Walton-on-Thames in London, we have secured a freehold site with

an existing warehouse which will be converted, subject to planning

permission, to a 20,700 sq ft store. We hope to open the store in 2025.

Our total UK development pipeline now amounts to c.511,800 sq ft

of which c.415,100 sq ft is in London.

Paris

Safestore has for many years owned a vacant freehold site in the town

of Nanterre on the edge of La Défense, Paris’ main business district.

This area of Paris is undergoing significant development and Safestore

has invested a 24.9% stake in a Joint Venture development company,

PBC Les Groues SAS, which is constructing a c.300,000 sq ft

development of offices, retail, a school and residential properties.

Safestore has contributed its Nanterre site into the project, receiving

cash of €1.0 million in addition to the delivery of an underground

storage area and reception within the complex, ready to be fitted out

into a 44,000 sq ft self storage facility. Planning for the project has

been received and construction has commenced.

It is anticipated that the project will be completed in 2025 when the

selfstorage facility will open.

In August 2021, the Group exchanged contracts on a freehold site

inSouthern Paris with a significant frontage onto the N104 motorway.

Thesite includes an existing building which will be demolished and

replaced by a 55,000 sq ft MLA store. We expect the store to open

in2023.

Over the first half of 2022 we exchanged contracts on three freehold

development sites to the west of Paris. All sites required planning

permission and newly built stores of 56,000 sq ft, 20,000 sq ft, and

58,000 sq ft were planned to be constructed by the end of 2023.

OurParis West 2 site (20,000 sq ft) did not receive planning permission

and has been removed from the pipeline.

Paris East 1 and Paris North West 1 are freehold sites on which we

willconvert existing buildings, subject to planning, to 60,000 sq ft and

54,000 sq ft stores respectively. We expect the stores to open in 2023.

Our Paris pipeline now amounts to c.349,200 sq ft.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Development sites continued

Spain

In December 2019, the Group completed the acquisition of OMB Self

Storage S.L.U. which operates three leasehold properties and one

freehold property, all very well located in the centre of Barcelona. Thefour

locations (Valencia, Calabria, Glories, and Marina) have an MLA

totalling 108,000 sq ft. A fifth store, in Central Barcelona, was opened

during 2022. The occupancy of the business at the end of October

2022 was 78.9% and 85.9% on a like-for-like basis.

The Group is continuing its expansion of the business in Barcelona

and its entry into the Madrid market with the acquisition of the

following sites.

In April 2021, the Group exchanged contracts on a freehold building in

Northern Barcelona. Subject to planning, we will convert the existing

building into a 42,000 sq ft MLA. It is anticipated that the site will open

in the 2022/23 financial year.

In June 2021, the Group exchanged contracts on a freehold property

in South Barcelona. The site includes an existing industrial building

which will be converted into a 30,000 sq ft MLA self storage facility.

Planning has been granted and we expect to open the site in the

2022/23 financial year.

In August 2021, the Group exchanged contracts on a leasehold site

in Central Barcelona. The site is a former car dealership which will be

converted to a 24,700 sq ft MLA store which, subject to planning, should

open in 2024.

In December 2021, the Group exchanged contracts on a freehold

building in a commercial and industrial area of Eastern Madrid. Subject

to completion, we will convert the existing building into a 50,000 sq ft

MLA self storage facility. It is anticipated that the site will open in 2023.

In August 2022, the Group exchanged contracts on a freehold building

in a commercial and industrial area of South West Madrid. Subject to

planning and completion, we will convert the existing building into a

46,800 sq ft MLA self storage facility. It is anticipated that the site will

open in 2024.

A new freehold site has been secured in Southern Madrid (Southern

Madrid 2) on which we will convert an existing building, subject to

planning permission, into a 68,800 sq ft storage facility. It is anticipated

that the site will open in 2024.

Our Spanish pipeline now amounts to c.262,300 sq ft including

165,600 sq ft across three stores in Madrid and 96,700 sq ft over

threestores in Barcelona.

The Spanish business now has seven open stores and a pipeline consisting

of a further six stores amounting to c.262,300 sq ft of MLA.

Netherlands

During the year we exchanged contracts on a freehold site at

Amersfoort, 40 minutes east of Amsterdam. The acquisition is

subjectto planning permission and we anticipate that the new store,

which will have an MLA of 58,000 sq ft, will be opened in 2023.

The Group completed the acquisition of a freehold site in Almere,

acitywith a population of 214,000 which is 20 minutes’ drive from

Amsterdam. Subject to planning, we will convert the two existing

buildings on the site into a 44,500 sq ft MLA self storage facility.

Itisanticipated that the site will open in 2023.

New freehold sites have been secured in Amsterdam and Aalsmeer

where we will build new stores, subject to planning, of 61,400 sq ft

and48,400 sq ft respectively. The two stores should open in 2024.

Since the year end, the Group has secured a freehold site in Rotterdam

for construction of a 71,000 sq ft MLA store subject to planning.

Rotterdam is one of the major cities in the Netherlands with a population

of 588,000 and forms part of the larger Randstad area. The new site

forms part of a larger re-development within the heart of an affluent

district of the city.

In the Netherlands, our pipeline now consists of 283,300 sq ft of space

in five stores.

Store extensions

The Group plans to redevelop and extend its Pyrénées store in Paris.

The extension will add 22,200 sq ft and is planned to open in 2023.

Asof September 2022, the store occupancy was 94%.

Lease extensions and assignments

During the period we extended the lease on our Exeter store in the UK.

The lease will now continue until February 2045 with tenant-only break

clauses in 2035 and 2040. A six-month rent-free period was agreed as

part of the renegotiation.

In Crayford, we have extended the lease on our existing store to 2042,

with a tenant-only break option in 2032. A rent-free period of four

months was agreed as part of this agreement. The lease on the new

satellite store reported above also terminates in 2042.

In Sunderland, we have extended the lease on our store to 2047 with

a tenant break option in 2037. A six-month rent-free period was agreed

as part of this lease extension.

As part of our ongoing asset management programme, we have now

extended the leases on 27 stores or 70% of our leased store portfolio

in the UK since 2012. As a result, since 2012 the remaining lease

length of our UK stores has remained at c.11-13 years.

Site disposal

In April 2021 we opened our Birmingham Middleway store (58,000

sqft MLA) and closed our Digbeth store (44,500 sq ft MLA) shortly

thereafter. Customers were relocated to the bigger, better located new

store. At the time, we stated that we intended to sell the Digbeth site.

We are pleased to confirm that the Digbeth site sale was completed

inAugust 2022. The proceeds received funded the entire acquisition

and construction of the Middleway site. As of September 2022, the

Middleway site was 83% occupied.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

Property pipeline summary

Our pipeline of c.1.4m sq ft represents c.18% of our existing property portfolio.

Opening 2023 FH/LH Status* MLA Other

Redevelopments and extensions

London – Crayford LH C, UC 9,400 Extension

Paris – Pyrénées LH C, UC 22,200 Extension

New developments

London – Morden FH C, PG, UC 52,000 New build

Wigan FH C, UC 42,700 Conversion

Paris – South Paris FH C, PG 55,000 New build

Paris – West 1 FH CE, STP 56,000 New build

Paris – West 3 FH CE, STP 58,000 New build

Paris – East 1 FH CE, STP 60,000 Conversion

Paris – North West 1 FH CE, STP 54,000 Conversion

Eastern Madrid FH C, PG 50,000 Conversion

Northern Barcelona FH C, PG 42,000 Conversion

South Barcelona FH C, PG 30,000 Conversion

Amersfoort – Netherlands FH CE, STP 58,000 New build

Almere – Netherlands FH C, STP 44,500 Conversion

Opening 2024

Redevelopments and extensions

New developments

London – Paddington Park West FH C, PG 13,000 Conversion,Satellite

London – Lea Bridge FH C, PG 76,500 New build

London – Romford FH C, STP 41,000 New build

Shoreham FH CE, STP 54,000 New build

South West Madrid FH CE, STP 46,800 Conversion

Southern Madrid 2 FH CE, STP 68,800 Conversion

Central Barcelona 2 LH CE, STP 24,700 Conversion

Amsterdam – Netherlands FH CE, STP 61,400 New build

Aalsmeer – Netherlands FH CE, STP 48,400 New build

Rotterdam – Netherlands FH CE, PG 71,000 New build

Opening Beyond 2024

New developments

London – Old Kent Road FH C, STP 76,500 New build

London – Woodford FH CE, PG 76,000 New build

London – Bermondsey FH C, STP 50,000 New build

London – Walton FH C, STP 20,700 Conversion

Paris – La Défense FH C, PG 44,000 Mixed use facility

Total Pipeline MLA (let sq ft- million) c.1.407

Total Outstanding CAPEX (£’m) c.146.0

* C = completed, CE = contracts exchanged, STP = subject to planning, PG = planning granted, UC = under construction

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Acquisitions

Acquisition of Your Room Self Storage, Christchurch

In December 2021, Safestore acquired Your Room Self Storage in

Christchurch, Dorset, for £2.45 million. The freehold Christchurch store

has an MLA of 14,000 sq ft and the Group anticipates that the initial

yield in the first year will be in excess of 6%.

The Group will rebrand the store and has taken over operation of the

site with immediate effect. The store will operate as a satellite store to

our two existing Bournemouth stores.

Acquisition of remaining 80% of Carlyle JV

As announced on 31 March 2022, Safestore acquired the remaining

80% of the equity owned by Carlyle in the Joint Venture

formed

in 2019 (the “Joint Venture”). The total consideration paid to Carlyle

was €67 million. The total initial cash outflow was €135.3 million and

included the share purchase (€53.6 million), debt purchase (€13.4 million),

and refinancing of the existing borrowings (€68.3 million) and was funded

from the Group’s existing loan facilities. The Joint Venture was acquired

based on an enterprise value of €146 million.

The Joint Venture

was set up in 2019 to acquire and develop assets

in the Netherlands and Belgium in order to leverage Safestore’s

operating platform outside our core markets. Since then, the Joint

Venture has grown to a portfolio of 55,000 sq m (600,000 sq ft) of MLA.

The portfolio is made up of 15 high quality properties (twelve freehold

properties, two ground leases and one leasehold property). Nine

properties are located in the Netherlands, six of which are concentrated

in the Haarlem/Amsterdam area with additional properties in The Hague,

Het Gooi and the recently opened Nijmegen store. In Belgium, two

stores are located in the Brussels area, two in the city of Liege and

further properties in Nivelles and Charleroi. Safestore has managed

the properties since acquisition by the Joint Venture.

The Group’s investment was marginally accretive to Group Earnings

per Share in FY2021/22 and supports the Group’s future dividend

capacity. The expected initial yield based on total enterprise value was

3.9% which we expect to grow to Safestore’s normal returns hurdles

as the portfolio matures.

New Joint Venture with Carlyle and Investment in myStorage

in Germany

Safestore has entered the German self storage market via a new Joint

Venture

with Carlyle, which has acquired the myStorage business.

Safestore has developed a multi-country highly scalable platform

with leading marketing and operational expertise in self storage, with

a proven track record for developing its platform in new markets.

The acquisition of myStorage represents an excellent opportunity to

develop our platform into the attractive German self storage market.

The Joint Venture builds upon our previous successful relationship

with Carlyle having entered the Benelux market in 2019. Our common

intention is to target development and acquisition opportunities

through the Joint Venture, providing the opportunity to achieve operational

scale and to develop local market knowledge, whilst also retaining the

option for Safestore to develop its own wholly owned self storage sites

in Germany. We look forward to continuing our working relationship with

Carlyle, and to developing a long and mutually beneficial relationship.

The German market is one of Europe’s more under-penetrated markets

with just 0.09 sq ft of storage space per capita which compares to

0.76 sq ft in the UK, 0.24 sq ft in France, 0.24 sq ft inSpain, 0.60 sq ft

in the Netherlands and 0.20 sq ft in Belgium. According to the 2022

FEDESSA report, there are just 320 facilities inGermany and 7.6m sq ft

of lettable space.

myStorage has seven medium to long term leasehold stores and

326,000 sq ft of MLA in Berlin, Heidelburg, Mannheim, Fürth,

Nuremburg, Neu-Ulm and Reutlingen.

The occupancy of the portfolio is 67% with two of the stores having

opened in 2021.

Safestore’s initial investment in the Joint Venture was a c.€2.2 million

equity investment for a 10% share of the Joint Venture. Safestore will

also earn a fee for providing management services to the Joint Venture.

The Group expects to earn an initial return on investment of c.15% for

the first full year before transaction related costs reflecting its share of

expected Joint Venture profits and fees for management services.

Portfolio summary

The self storage market has been growing consistently for over 20

years across many European countries but few regions offer the unique

characteristics of London and Paris, both of which consist of large,

wealthy and densely populated markets. In the London region, the

population is 13 million inhabitants with a density of 5,200 inhabitants

per square mile, 11,000 per square mile in Central London and up to

32,000 per square mile in the densest boroughs.

The population of the Paris urban area is 10.7 million inhabitants with

adensity of 9,300 inhabitants per square mile in the urban area but

54,000 per square mile in the City of Paris and first belt, where 69%

ofour French stores are located and which has one of the highest

population densities in the western world. 85% of the Paris region

population live in central parts of the city versus the rest of the urban

area, which compares with 60% in the London region. There are

currently c.245 storage centres within the M25 as compared to only

c.95 in the Paris urban area.

In addition, barriers to entry in these two important city markets are

high, due to land values and limited availability of sites as well as

planning regulation. This is the case for Paris and its first belt in

particular, which inhibits new development possibilities.

Our combined operations in London and Paris, with 78 stores, contributed

£113.2 million of revenue and £82.3 million of store EBITDA for the

financial year and offer a unique exposure to the two most attractive

European self storage markets.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

Owned store portfolio by region

London and

South East Rest of UK

Total Paris Spain Benelux

Group

Total

Number of stores 72 58 130 29 5 15 179

Let square feet (m sq ft) 2.42 2.22 4.64 1.11 0.10 0.47 6.32

Maximum lettable area (m sq ft) 2.92 2.70 5.62 1.36 0.12 0.60 7.70

Average let square feet per store (k sq ft) 34 38 36 38 19 32 35

Average store capacity (k sq ft) 41 47 43 47 24 40 43

Closing occupancy (%) 83.1% 82.0% 82.6% 81.7% 78.9% 78.8% 82.1%

Average rate (£ per sq ft) 34.76 22.38 28.79 34.36 28.92 16.61 29.25

Revenue (£’m) 101.1 61.9 163.0 41.4 3.0 5.1 212.5

Average revenue per store (£’m) 1.40 1.07 1.25 1.43 0.60 0.34 1.19

Note

The reported totals have not been adjusted for the impact of rounding.

We have a strong position in both the UK and Paris markets, operating

130 stores in the UK, 72 of which are in London and the South East,

and 29 stores in Paris.

In the UK, 62% of our revenue is generated by our stores in London

and the South East. On average, our stores in London and the South

East are smaller than in the rest of the UK but the rental rates achieved

are materially higher, enabling these stores to typically achieve similar

or better margins than the larger stores. In London we operate 49 stores

within the M25, more than any other competitor.

In France, we have a leading position in the heart of the affluent City

ofParis market with ten stores branded as Une Pièce en Plus (“UPP”)

(“A spare room”). Over 60% of the UPP stores are located in a cluster

within a five-mile radius of the city centre, which facilitates strong

operational and marketing synergies as well as options to differentiate

and channel customers to the right store subject to their preference for

convenience or price affordability. The Parisian market has attractive

socio-demographic characteristics for self storage and we believe that

UPP enjoys unique strategic strength in such an attractive market.

As at 31 October 2022, 70% of our Group Revenue, 65% of our

storesand 58% of our available capacity are in London, South East

England, Paris, Amsterdam and the Randstad area, Brussels and

Barcelona. These major population areas deliver 71% of the Group’s

store EBITDA from 62% of our MLA,highlighting the attractiveness

of being present in these major cities and conurbations. The current

pipeline includes 26 further developments in these areas which will

increase the number of storesto 68% of our portfolio.

In addition, Safestore has the benefit of a leading national presence inthe

UK regions where the stores are predominantly located in the centre of key

metropolitan areas such as Birmingham, Manchester, Liverpool, Bristol,

Newcastle, Glasgow and Edinburgh. Our 2019 acquisition of OhMyBox! in

Barcelona and our 2022 Benelux JV acquisition represents a platform into

the Spanish, Netherlands and Belgium markets where we hope to take

advantage of further development andacquisition opportunities.

Market

The Self Storage Association (“SSA”) noted in its May 2022 report that,

“despite two record years, inflationary pressures, escalating costs of

construction and a war in Europe, operators remain optimistic about

the future.” Previous downturns have presented opportunities for self

storage and the pandemic seems to have once again demonstrated the

resilience of the self storage industry and the broad range of demand drivers.

The self storage market in the UK, France, Spain and Benelux remains

relatively immature compared to geographies such as the USA and

Australia. The SSA Annual Survey (May 2022) confirmed that self

storage capacity stands at 0.76 sq ft per head of population in the UK.

The most recent report relating to Europe (FEDESSA’s 2022 report)

showed that capacity in France is 0.24 sq ft per capita. Whilst the Paris

market density is greater than France, we estimate it to be significantly

lower than the UK at around 0.4 sq ft per inhabitant. This compares

with closer to 10 sq ft per inhabitant in the USA and 2 sq ft in Australia.

In the UK, in order to reach the US density of supply, it would require

the addition of around another 17,000 stores as compared to c.1,400

currently. In the Paris region, it would require around 2,400 new

facilities versus c.95 currently opened.

In Spain, the Netherlands and Belgium, geographies the Group has

recently entered, penetration is similarly low. In Spain, capacity is around

0.24 sq ft per head of population and the consumer is serviced by just

580 stores. In the Netherlands, penetration is 0.6 sq ft per head of

population (355 stores) and in Belgium 0.2 sq ft per head of population

(101 stores).

The Group recently entered a JV with Carlyle in Germany. The German

market is one of Europe’s more under-penetrated markets with just

0.09 sq ft of storage space per capita and, according to the 2022

FEDESSA report, there are just 320 facilities in the country and 7.6m

sq ft of lettable space.

Our interpretation of the most recent 2022 SSA report is that similar

levels of capacity are likely to be developed in 2022 and 2023 at around

30-40 stores per annum. We do not consider this level of new supply

growth to be of concern.

The 30-40 comparable sites represent between 2% and 3% of the

traditional self storage industry in the UK. These figures represent

gross openings and do not take into account storage facilities closing

or being converted for alternative uses. We estimate that only a small

proportion of these sites compete with existing Safestore stores.

New supply in London and Paris is likely to continue to be limited in the

short and medium term as a result of planning restrictions, competition

from a variety of other uses and the availability of suitable land.

The supply in the UK market, according to the SSA Survey, remains

relatively fragmented despite a number of acquisitions in the sector

inthe last four years. The SSA’s estimates of the scale of the UK

industry are finessed each year and changes from one year to the next

represent improved data rather than new supply. In the 2022 report the

SSA estimates that 2,050 self storage facilities exist in the UK market

including around 621 container-based operations. According to the

2022 survey, Safestore is the industry leader by number of stores

with130 wholly owned sites followed by Big Yellow with 105 stores

(including Armadillo), Access with 60 stores, Shurgard with 40 stores,

Lok’n Store with 39 stores, Storage King with 37 stores and Ready

Steady Store with 27 stores. In aggregate, the top seven leading

operators account for almost 21% of the UK store portfolio. The

remaining c.1,613 self storage outlets (including 621 container-based

operations) are independently owned in small chains or single units.

Intotal there are 1,015 storage brands operating in the UK.

Safestore’s French business, UPP, is mainly present in the core

wealthier and more densely populated inner Paris and first belt areas,

whereas our two main competitors, Shurgard and Homebox, have a

greater presence in the outskirts and second belt of Paris.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Market continued

Our Spanish business operates in Barcelona and has a pipeline of future

store openings in both Barcelona and Madrid. The metropolitan areas of

Barcelona and Madrid have combined growing high-density populations

of 12 million inhabitants and significant barriers to entry.

Consumer awareness of self storage is increasing but remains relatively

low, providing an opportunity for future industry growth. TheSSA

survey consistently indicates that approximately half of consumers

either knew nothing about the service offered by selfstorage operators

or had not heard of self storage at all. Since 2016, this statistic has only

fallen 10ppts from 59%. Therefore, the opportunity to grow awareness,

combined with limited new industry supply, makes for an attractive

industry backdrop.

Self storage is a brand-blind product. 64% of respondents were unable

to name a self storage business in their local area (56% in 2021). The

lack of relevance of brand in the process of purchasing aself storage

product emphasises the need for operators to have a strong online

presence. This requirement for a strong online presence was also

reiterated by the SSA Survey where 73% of those surveyed (77% in

2021) confirmed that an internet search would be their chosen means

of finding a self storage unit to contact, whilst knowledge of a physical

location of a store as reason for enquiry was only c.26% of

respondents (c.25% in 2021).

There are numerous drivers of self storage growth. Most private and

business customers need storage either temporarily or permanently

fordifferent reasons at any point in the economic cycle, resulting in a

market depth that is, in our view, the reason for its exceptional resilience.

The growth of the market is driven both by the fluctuation of economic

conditions, which has an impact on the mix of demand, and by

growing awareness of the product.

Safestore’s domestic customers’ need for storage is often driven by

lifeevents such as births, marriages, bereavements, divorces or by

thehousing market including house moves and developments and

moves between rental properties. Safestore has estimated that UK

owner-occupied housing transactions drive around 8-13% of the

Group’s new lets.

The Group’s business customer base includes a range of businesses,

from start-up online retailers through to multi-national corporates,

utilising our national coverage to store in multiple locations while

maintaining flexibility in their cost base.

Business and personal customers

UK Paris Spain Benelux

Personal customers

Numbers (% of total) 77% 82% 89% 85%

Square feet occupied (% of total) 58% 65% 83% 77%

Average length of stay (months) 17.4 28.7 23.2 28.4

Business customers

Numbers (% of total) 23% 18% 11% 15%

Square feet occupied (% of total) 42% 35% 17% 23%

Average length of stay (months) 26.4 32.0 31.2 30.2

Safestore’s customer base is resilient and diverse and consists of around

90,000 domestic, business and National Accounts customers across

London, Paris, Spain, the UK regions, the Netherlands and Belgium.

Business model

The Group operates in a market with relatively low consumer

awareness. It is anticipated that this will increase over time as the

industry matures. To date, despite the financial crisis in 2007/08, the

implementation of VAT in the UK on self storage in 2012, Brexit and the

Covid-19 pandemic, the industry has been exceptionally resilient. In the

context of uncertain economic conditions, driven by inflation and the

war in Ukraine, the industry remains well positioned with limited new

supply coming into the self storage market.

With more stores inside London’s M25 than any other operator and

astrong position in central Paris, Safestore has leading positions in

thetwo most important and demographically favourable markets in

Europe. In addition, our regional presence in the UK is unsurpassed

and contributes to the success of our industry-leading National

Accounts business. In the UK, Safestore is the leading operator by

number of wholly owned stores. With 85% of customers travelling

forless than 30 minutes to their storage facility (2022 SSA Survey)

Safestore’s national store footprint represents a competitive advantage.

The Group’s capital-efficient portfolio of 179 wholly owned stores in

the UK, Paris, Spain, the Netherlands and Belgium consists of a mix

offreehold and leasehold stores. In order to grow the business and

secure the best locations for our facilities we have maintained a flexible

approach to leasehold and freehold developments as well as being

comfortable with a range of building types, from new builds to

conversions of warehouses and underground car parks.

Currently, around a quarter of our stores in the UK are leaseholds with

an average remaining lease length at 31 October 2022 of 12.7 years

(FY2021: 11.8 years). Although our property valuation for leaseholds

is conservatively based on future cash flows until the next contractual

lease renewal date, Safestore has a demonstrable track record of

successfully re-gearing leases several years before renewal whilst

at the same time achieving concessions from landlords.

In England, we benefit from the Landlord and Tenant Act that protects

our rights for renewal except in case of redevelopment. The vast majority

of our leasehold stores have building characteristics or locations in retail

parks that make current usage either the optimal and best use of the

property or the only one authorised by planning. We observe that our

landlords, who are property investors, value the quality of Safestore as

a tenant and typically prefer to extend the length of the leases that they

have in their portfolio, enabling Safestore to maintain favourable terms.

In Paris, where 41% of stores are leaseholds, our leases typically benefit

from the well-enshrined Commercial Lease statute that provides that

tenants own the commercial property of the premises and that they

are entitled to renew their lease at a rent that is indexed to the Indice

des Loyers Commerciaux (“Commercial Rental Index”) published by

the state. Taking into account this context, the valuer values the French

leaseholds based on an indefinite property tenure, similar to freeholds

but at a significantly higher exit cap rate.

The Group believes there is an opportunity to leverage its highly

scalable marketing and operational expertise in new geographies

outside the UK and Paris. During 2019, a Joint Venture

was established

with Carlyle, which acquired the M3 Self Storage business in the

Netherlands which had six stores in Amsterdam and Haarlem. In June

2020, the Joint Venture

added the Lokabox business, a portfolio of

six stores in Brussels (2), Liege (2), Charleroi and Nivelles. InDecember

2020, the Joint Venture

acquired the Opslag XL portfolio adding a

further three stores in Amsterdam, The Hague and Hilversum and

opened a store in Nijmegen in the Netherlands in January 2022. The

Amsterdam store has subsequently been closed as planned following

lease expiry. After three years of learning about and understanding

these markets, the Group acquired the remaining 80% of equity in

the Joint Venture

owned by Carlyle in March 2022.

In 2019 the Group entered the Spanish market with the acquisition of

OhMyBox!. Our Spanish portfolio currently consists of five stores in

Barcelona, and two recently opened Madrid stores. We have a further

six stores in our development pipeline situated in both Madrid and

Barcelona. We consider both of these cities to have attractive

characteristics in relation to self storage and intend to continue

to seek further expansion opportunities.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

Our experience is that being flexible in its approach has enabled

Safestore to operate from properties and in markets that would have

been otherwise unavailable and to generate strong Cash on Cash Returns.

Safestore excels in the generation of customer enquiries which are

received through a variety of channels including the internet, telephone

and ‘walk-ins’. In the early days of the industry, local directories and

store visibility were key drivers of enquiries. However, the internet is

now by far the dominant channel, accounting for 90% (2021: 89%) of

our enquiries in the UK and 85% (2021: 84%) in France. This dynamic

is a clear benefit to the leading national operators that possess the

budget and the management skills necessary to generate a commanding

presence in the major search engines. Safestore has developed and

continues to invest in a leading digital marketing platform that has

generated 54% enquiry growth over the last five years.

Although mostly generated online, our enquiries are predominantly

handled directly by the stores and, in the UK, we have a Customer

Support Centre (“CSC”) which handles customer service issues in

addition to enquiries, in particular when the store colleagues are

busyhandling calls or outside of normal store opening hours.

Our pricing platform provides the store and CSC colleagues with

system-generated real-time prices managed by our centrally based

yield-management team. Local colleagues have certain levels of discretion

to flex the system-generated prices but this is continually monitored.

Customer service standards are high and customer satisfaction

feedback is consistently very positive. Safestore invites customers

toleave a review on a number of review platforms, including Feefo,

Google and Trustpilot. Our ratings for each of these three providers in

the UK are between 4.6 and 4.8 out of 5. In France, Une Pièce en Plus

uses Trustpilot to obtain independent customer reviews and In HY2022,

achieved a TrustScore of 4.6 out of 5. In Spain, OhMyBox! collects

customer feedback via Google reviews and has maintained a score of

4.6 out of 5. The key drivers of sales success are the capacity to generate

enquiries in a digital world, the capacity to provide storage locations

that are conveniently located close to the customers’ requirements and

the ability to maintain a consistently high quality, motivated retail team

that is able to secure customer sales at an appropriate storage rate, all

of which can be better provided by larger, more efficient organisations.

We remain focused on business as well as domestic customers. Our

national network means that we are uniquely placed to further grow

the business customer market and in particular National Accounts.

Business customers in the UK now constitute 42% of our total space

let and have an average length of stay of 26 months. Within our business

customer category, our National Accounts business represents around

623,000 sq ft of occupied space (around 13% of the UK’s occupancy).

Approximately two-thirds of the space occupied by National Accounts

customers is outside London, demonstrating the importance and quality

of our well invested national estate.

The business now has in excess of c.90,000 business and domestic

customers with an average length of stay of 28 months and 22 months

respectively.

The cost base of the business is relatively fixed. Each store typically

employs three colleagues. Our Group Head Office comprises business

support functions such as Yield Management, Property, Marketing,

HR, IT, and Finance.

Since the completion of the rebalancing of our capital structure in early

2014, the subsequent amendment and extension of our banking facilities

in summer 2015, the refinancing of all facilities in May 2017 and the

issuances of a further £125 million of US Private Placement Notes in

2019, £150 million in 2021 and £89 million in 2022, as well as the recent

establishment of a new £400 million unsecured multi-currency Revolving

Credit Facility, Safestore has secure financing, a strong balance sheet

and significant covenant headroom. This provides the Group with

financial flexibility and the ability to grow organically and via carefully

selected new development or acquisition opportunities.

At 31 October 2022 we had 1.0m sq ft of unoccupied space in the UK,

0.2m sq ft in France and 0.2m in Spain and Benelux, equivalent to c.35

full new stores. Our main focus is on filling the spare capacity in our

stores at optimally yield-managed rates. The operational leverage of our

business model will ensure that the bulk of the incremental revenue

converts to profit given the relatively fixed nature of our cost base.

Trading performance

UK – an excellent year

2022 2021 Change

UK operating performance – total

Revenue (£’m) 163.0 144.1 13.1%

Underlying EBITDA (£’m)

103.6 88.6 16.9%

Underlying EBITDA

(after leasehold costs) (£’m) 95.6 80.9 18.2%

Closing occupancy

(let sq ft – million)

4.637 4.690 -1.1%

Maximum lettable area (MLA)

5.62 5.49 2.4%

Closing occupancy (% of MLA) 82.6% 85.4% -2.8ppts

Average storage rate (£)

28.79 25.32 13.7%

UK operating performance –

like-for-like

Revenue (£’m) 160.2 142.8 12.2%

Underlying EBITDA (£’m)

101.7 87.9 15.7%

Closing occupancy

(let sq ft – million)

4.538 4.648 -2.4%

Closing occupancy (% of MLA) 83.0% 85.6% -2.6ppts

Average occupancy

(let sq ft – million)

4.537 4.512 0.6%

Average storage rate (£)

28.94 25.40 13.9%

UK statutory metrics

Operating profit (£’m) 393.1 331.9 18.4%

Profit before tax (£’m) 378.7 321.4 17.8%

The UK’s revenue performance was excellent in the year with the

business growing total revenue by 13.1% and like-for-like

revenue

by12.2%. Performance was strong in both Regional UK as well as

London and the South East where like-for-like

revenue was up 13.0%

and 11.7% respectively.

The UK’s performance was driven by strong rate growth in the year

with like-for-like average rates up 13.9% for the year. Rate momentum

was strong in the final quarter with like-for-like storage rates up 3.8%

compared to the third quarter. Average like-for-like occupancy was up

0.6% over the course of the year.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Trading performance continued

UK – an excellent year continued

Like-for-like closing occupancy, at 83.0%, decreased by 2.6ppts

compared to the prior year. The addition of extensions in four of the

like-for-like stores had the impact of diluting MLA by 0.7ppts. In addition,

the volume of like-for-like new lets was up 6% in the year but the average

new let unit size was lower than in 2021 resulting in a lower new let sq ft.

Total revenue grew by 13.1% for the full year. This reflected like-for-like

growth of 12.2%, the 2021 opening of our Birmingham Middleway and

subsequent closure of our Birmingham South store and the 2022 opening

of our London Bow store. All acquisitions and new store developments

are performing in line with or ahead of their business cases.

We remain focused on our cost base. During the year, our UK cost base, on

a like-for-like

basis, increased by 6.6% or £3.6 million. Inflationary pressures

on utilities, staff costs and insurance contributed to this increase. Our

total reported underlying UK cost base grew by £3.9 million or 7.0%

reflecting the cost bases relating to newly and recently opened stores.

As a result, Underlying EBITDA

for the UK business was £103.6 million

(FY2021: £88.6 million), an increase of £15.0 million or 16.9%. Despite

the increase in costs, the excellent revenue performance resulted in a

2.1ppt increase in EBITDA margins from 61.5% to 63.6%.

For the two months to December 2022 trading continued to be robust

and stable through the period. Like-for-like average rate was up 7.3%,

offset by a reduction in closing occupancy which was down 3.6ppts at

78.6% (2021: 82.2%). Overall, like-for-like revenue increased by 3.7%

and total revenue grew by 4.6%.

Operating profit for the UK business was £393.1 million (FY2021:

£331.9million), an increase of £61.2 million or 18.4%, largely driven

bythe increase in the gain on investment properties of £35.2 million

to£295.7 million (FY2021: £260.5 million). Profit before tax was

£378.7million (FY2021: £321.4 million), an increase of £57.3 million or 17.8%.

Paris – another strong year

2022 2021 Change

Paris operating performance – total

Revenue (€’m) 48.8 46.0 6.1%

Underlying EBITDA (€’m)

33.0 31.4 5.1%

Underlying EBITDA

(after leasehold costs) (€’m) 27.1 25.7 5.4%

Closing occupancy

(let sq ft – million)

1.112 1.100 1.1%

Maximum lettable area (MLA)

1.36 1.36 —

Closing occupancy (% of MLA) 81.7% 80.7% +1.0ppts

Average storage rate (€)

40.47 38.90 4.0%

Revenue (£’m) 41.4 39.9 3.8%

Paris operating performance –

like-for-like

Revenue (€’m) 48.37 45.94 5.3%

Underlying EBITDA (€’m)

33.0 31.3 5.4%

Closing occupancy

(let sq ft – million)

1.094 1.097 -0.3%

Closing occupancy (% of MLA) 83.4% 83.6% -0.2ppts

Average occupancy

(let sq ft – million)

1.092 1.077 1.4%

Average storage rate (€)

40.56 38.90 4.3%

Paris statutory metrics

Operating profit (£’m) 110.4 78.8 40.1%

Operating profit (€’m) 130.0 90.7 43.3%

Profit before tax (£’m) 108.8 77.0 41.3%

Profit before tax (€’m) 128.2 88.7 44.5%

On a like-for-like

basis, the business grew revenue by 5.3% for the full

year. This was driven by average occupancy growth of 1.4% for the

year and an average rate improvement of 4.3%.

Like-for-like

closing occupancy was 83.4%, down 0.2ppts compared

to the prior year.

The average Sterling-Euro exchange rate for the year was 1.1778, 2.3%

stronger than the prior year (FY2021: 1.1516). As a result, there was

a small foreign exchange impact on the translation of Paris revenues

which were up 3.8% for the year in Sterling.

After cost reductions in 2021, like-for-like

costs grew by 5.5% or

€0.8million compared to the prior year in local currency as a result of

increases in employee costs and utilities. As a result, like-for-like

underlying EBITDA

in Paris grew by €1.7 million and Underlying

EBITDA

grew by €1.6million to €33.0 million (FY2021: €31.4 million).

For the two months to December 2022 trading has been robust and

improving as the period progressed. Like-for-like closing occupancy

was up 2.0ppts at 80.8% (2021: 78.8%) and like-for-like average rate

was up 1.0%, which resulted in a 2.5% increase in like-for-like revenue.

Operating profit for the Paris business was €130.0 million (FY2021:

€90.7 million), an increase of €39.3 million or 43.3%, largely driven

bythe increase in the gain on investment properties of €28.0 million

to€92.5 million (FY2021: €64.5 million). Profit before tax was

€128.2million (FY2021: €88.7 million), an increase of €39.5 million

or44.5%.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Chief Executive’s statement continued

Spain trading performance

2022 2021 Change

Spain operating performance – total

Revenue (€’m) 3.59 3.29 9.1%

Underlying EBITDA (€’m)

1.8 2.0 (10.0%)

Underlying EBITDA

(after leasehold costs) (€’m) 1.3 1.5 (13.3%)

Closing occupancy

(let sq ft – million)

0.095 0.093 2.2%

Maximum lettable area (MLA)

0.12 0.11 9.1%

Closing occupancy (% of MLA) 78.9% 86.0% -7.1ppts

Average storage rate (€)

34.07 32.25 5.6%

Revenue (£’m) 3.0 2.8 7.1%

Spain operating performance –

like-for-like

Revenue (€’m) 3.57 3.29 8.5%

Underlying EBITDA (€’m)

2.1 2.0 5.0%

Closing occupancy

(let sq ft – million)

0.093 0.093 —

Closing occupancy (% of MLA) 85.9% 86.0% -0.1ppts

Average occupancy

(let sq ft – million)

0.094 0.096 -2.1%

Average storage rate (€)

34.11 32.25 5.8%

Spain statutory metrics

Operating profit (£’m) 2.8 6.3 (55.6%)

Operating profit (€’m) 3.3 7.2 (54.2%)

Profit before tax (£’m) 2.7 6.2 (56.5%)

Profit before tax (€’m) 3.2 7.1 (54.9%)

Our Spanish business was acquired in December 2019. The original

four stores are, therefore, now considered like-for-like and grew

like-for-like revenue by 8.5% in the year to €3.57 million (FY2021:

€3.29million). A deliberate strategy of improving average rate

andancillary revenues has continued to be pursued in the period.

Closingoccupancy in sq ft was consequently flat compared to 2021

whilst like-for-like average rate in the year grew by 5.8% to €34.11

(FY2021: €32.25) with ancillary revenues improving strongly.

Like-for-like underlying EBITDA grew by 5.0% in the period after

investment inadditional Head Office resource dedicated to growing

the development pipeline.

The Spanish business opened an additional store in Barcelona in the

period. As a result, total revenue increased by 9.1%.

For the two months to December 2022 trading continued to be robust

and stable through the period. Like-for-like occupancy was down

3.0ppts at 81.8% (2021: 84.8%) but like-for-like average rate was up

7.6%, which, combined with strong ancillary revenues, resulted in a

7.4% increase in like-for-like revenue. Total revenue was up 11.5% for

the period.

Operating profit for the Spanish business was €3.3 million (FY2021:

€7.2million). 2021 included an increase in the gain on investment

properties of €5.3 million, against an increase in 2022 of €2.0 million.

Accordingly, profit before tax was €3.2 million (FY2021: €7.1 million).

Benelux trading performance

Our Netherlands and Belgium businesses were acquired on 30 March

2022 and, therefore, contributed seven months’ revenue (€5.9 million)

in the period.

The Benelux businesses grew revenue by 5.3% compared to the third

quarter of 2022 and the businesses ended the period with a combined

closing occupancy of 78.8%.

The business was originally established in 2019 with the acquisition

ofsix stores and it has been subsequently developed into a fifteen-

store portfolio with a pipeline of five additional stores.

Frederic Vecchioli

Chief Executive Officer

16 January 2023

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

EPS

has grown by 344%

over the lastnine years

Andy Jones

Chief Financial Officer

Underlying income statement

The table below sets out the Group’s underlying results of operations for the year ended 31 October 2022 and the year ended 31 October 2021.

To calculate the underlying performance metrics, adjustments are made for the impact of exceptional items, share-based payments, corporate

transaction costs, change in fair value of derivatives, gain or loss on investment properties and the associated tax impacts, as well as exceptional

tax items and deferred tax. Management considers this presentation of earnings to be representative of the underlying performance of the

business, as it removes the income statement impact of items not fully controllable by management, such as the revaluation of derivatives and

investment properties, and the impact of exceptional credits, costs and finance charges.

2022

£’m

2021

£’m

Movement

Revenue 212.5 186.8 13.8%

Underlying costs (77.5) (69.3) 11.8%

Share of associate’s Underlying EBITDA 0.1 0.5 (80.0%)

Underlying EBITDA 135.1 118.0 14.5%

Leasehold costs (13.6) (13.0) 4.6%

Underlying EBITDA after leasehold costs 121.5 105.0 15.7%

Depreciation (1.0) (1.0) —

Finance charges (10.9) (9.5) 14.7%

Share of associate’s finance charges (0.4) (0.5) (20.0%)

Underlying profit before tax 109.2 94.0 16.2%

Current tax (5.2) (5.5) (5.5%)

Adjusted EPRA earnings 104.0 88.5 17.5%

Share-based payments charge (11.2) (18.3) (38.8%)

EPRA basic earnings 92.8 70.2 32.2%

Average shares in issue (m) 210.9 210.8

Diluted shares (for ADE EPS) (m) 218.9 218.3

Adjusted Diluted EPRA EPS

(pro forma) (p) 47.5 40.5 17.3%

Note

1 Adjusted EPRA earnings excludes share-based payment charges and, accordingly, the Underlying EBITDA, Underlying EBITDA after leasehold rent, and Underlying profit before tax

measures have been restated to exclude share-based payment charges for consistency.

The table below reconciles statutory profit before tax in the income statement to underlying profit before tax in the previous table.

2022

£’m

2021

£’m

Statutory profit before tax 498.8 404.6

Adjusted for:

– Gain on investment properties and investment properties under construction (389.9) (328.5)

– Change in fair value of derivatives 0.3 (2.9)

– Net exchange losses — 0.6

– Share-based payments 11.2 18.3

– Exceptional items and other exceptional gains (10.7) 1.9

– Exceptional finance income (0.5) —

Underlying profit before tax 109.2 94.0

Management considers the above presentation of earnings to be representative of the underlying performance of the business.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review

Underlying EBITDA increased by 14.5% to £135.1 million (FY2021: £118.0 million), reflecting a 13.8% increase in revenue and a 11.8% increase to

the underlying cost base. This performance reflects the strong growth in average rate of 8.5% to £29.25 in 2022 from £26.95 in 2021 offset by a

slight reduction in occupancy of 2.4ppts to 82.1% in 2022 from 84.5% in 2021, whilst maintaining control over costs.

Leasehold costs increased by 4.6% from £13.0 million to £13.6 million, principally due to reflecting the impact of rent reviews across the portfolio

in addition to the Netherlands leaseholds now forming part of the Group.

Underlying finance charges increased by 14.7% from £9.5 million to £10.9 million. This principally reflects interest charges which increased from

£9.7 million in 2021 to £11.9 million in 2022 driven by higher USPP borrowing to fund the Group’s acquisition and development activity, offset by

the gains made on financial instruments of £1.3 million in 2022 (FY2021: £0.5 million).

As a result, we achieved a 16.2% increase in underlying profit before tax of £109.2 million (FY2021: £94.0 million). The main contributing factor in

the increase in statutory profit before tax in the year is the £61.4 million increase in the gain on investment and development property, primarily

due to the stronger underlying performance of the stores, as mentioned above, as well as a reduction in the share-based payment charge by

£7.1million to £11.2 million (FY2021: £18.3 million).

Included within statutory profit before tax are other exceptional gains of £10.7 million. £5.5 million relates to the valuation gain of Safestore’s 20%

investment in the Joint Venture formed in 2019 with Carlyle that arose on acquisition of the remaining 80%, with £5.1 million relating to the profit

on the sale of the Nanterre land in Paris in November 2021. The exceptional finance income relates to the profit made on the termination of

interest rate swaps associated with the Joint Venture.

Given the Group’s REIT status in the UK, tax is normally only payable in France, Spain, the Netherlands and Belgium. The underlying tax charge

for the year was £5.2 million (FY2021: £5.5 million), calculated by applying the effective underlying tax rate of 20.9% to the respective underlying

profits earned by the non-UK businesses.

As explained in note 2 to the financial statements, management considers that the most representative Earnings per Share (“EPS”) measure is

Adjusted Diluted EPRA EPS which has increased by 17.3% to 47.5 pence (FY2021: 40.5 pence).

Reconciliation of Underlying EBITDA

The table below reconciles the operating profit included in the income statement to Underlying EBITDA.

2022

£’m

2021

£’m

Statutory operating profit 514.5 417.0

Adjusted for:

– Gain on investment properties (381.6) (321.1)

– Share of associate’s Underlying EBITDA 0.4 0.5

– Depreciation 1.0 1.0

– Variable lease payments 0.3 0.4

– Share-based payments 11.2 18.3

Exceptional items:

– Costs incurred relating to corporate restructuring and exceptional taxation costs 0.1 1.9

Other exceptional gains:

– Profit on sale of land (5.1) —

– Profit on disposal of investment property (0.2) —

– Valuation gain on associate buy-out (5.5) —

Underlying EBITDA 135.1 118.0

The main reconciling items between statutory operating profit and Underlying EBITDA are the gain on investment properties as well as adjustments

for depreciation, variable lease payments, share-based payment charges, exceptional gains and the share of associate’s Underlying EBITDA. The

gain on investment properties was £381.6 million, as compared to £321.1 million in 2021 primarily due to the stronger underlying performance of

the stores. The Group’s approach to the valuation of its investment property portfolio at 31 October 2022 is discussed further on.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Underlying profit by geographical region

The Group is organised and managed in four operating segments based on geographical region. The table below details the underlying

profitability of each region.

2022 2021

£’m

Paris

€’m

Spain

€’m

Benelux

€’m

Total

(CER)

£’m

Paris

€’m

Spain

€’m

Total (CER)

£’m

Revenue 163.0 48.8 3.6 5.9 213.5 144.1 46.0 3.3 186.8

Underlying cost of sales (48.2) (12.2) (1.2) (2.5) (61.9) (45.2) (11.2) (0.7) (55.5)

Store EBITDA 114.8 36.6 2.4 3.4 151.6 98.9 34.8 2.6 131.3

Store EBITDA margin 70.4% 75.0% 66.7% 57.6% 71.0% 68.6% 75.7% 78.8% 70.3%

LFL Store EBITDA margin 70.5% 75.6% 75.0% n/a 71.6% 68.8% 75.8% 78.8% 70.5%

Underlying administrative expenses (11.2) (3.6) (0.6) (1.2) (15.9) (10.3) (3.4) (0.6) (13.8)

Underlying EBITDA 103.6 33.0 1.8 2.2 135.7 88.6 31.4 2.0 117.5

EBITDA margin 63.6% 67.6% 50.0% 37.3% 63.6% 61.5% 68.3% 60.6% 62.9%

LFL EBITDA margin 63.5% 68.2% 58.3% n/a 64.4% 61.6% 68.2% 60.6% 63.1%

Leasehold costs (8.0) (5.9) (0.5) (0.1) (13.7) (7.7) (5.7) (0.5) (13.0)

Underlying EBITDA after leasehold costs 95.6 27.1 1.3 2.1 122.0 80.9 25.7 1.5 104.5

EBITDA after leasehold costs margin 58.7% 55.5% 36.1% 35.6% 57.1% 56.1% 55.9% 45.5% 55.9%

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Total

£’m

Paris

£’m

Spain

£’m

Total

£’m

Underlying EBITDA after leasehold costs

(CER) 95.6 23.4 1.2 1.8 122.0 80.9 22.3 1.3 104.5

Adjustment to actual exchange rate — (0.5) (0.1) — (0.6) — — — —

Reported Underlying EBITDA after

leaseholdcosts 95.6 22.9 1.1 1.8 121.4 80.9 22.3 1.3 104.5

Note

CER is Constant Exchange Rates (Euro denominated results for the current period have been retranslated at the exchange rate effective for the comparative period in order to present the

reported results on a more comparable basis).

Underlying EBITDA in the UK increased by £15.0 million, or 16.9%, to £103.6 million (FY2021: £88.6 million), underpinned by a 13.1% or £18.9million

increase in revenue, which was driven by an increase in average occupancy levels and rate improvements in the like-for-like portfolio as well as

the impact of the 2021 store opening in Birmingham Middleway (offset by the closure of Birmingham Digbeth), the December 2021 acquisition of

Christchurch, and the December 2021 opening of our London Bow store. Underlying UK EBITDA after leasehold costs increased by 18.2% to

£95.6 million (FY2021: £80.9 million).

In Paris, Underlying EBITDA increased by €1.6 million, or 5.1%, to €33.0 million (FY2021: €31.4 million), primarily driven by a €2.8 million increase

in revenue. Underlying EBITDA after leasehold costs in Paris increased by 5.4% to €27.1 million (FY2021: €25.7 million).

In Spain, Underlying EBITDA decreased slightly by €0.2 million, from €2.0 million in 2021 to €1.8 million in 2022. This directly translated into a

decrease in Underlying EBITDA after leasehold costs from €1.5 million in 2021 to €1.3 million in 2022.

Our Netherlands and Belgium businesses were acquired on 30 March 2022 and, therefore, contributed seven months’ revenue (€5.9 million)

intheperiod.

The combined results of the UK, Paris, Spain and Benelux delivered a 16.3% increase in Underlying EBITDA after leasehold costs at constant

exchange rates at Group level. Adjusting for an unfavourable exchange impact of £0.6 million, the combined results of the UK, Paris and Spain

reported an Underlying EBITDA after leasehold costs increase of 16.2% or £16.9 million to £121.4 million (FY2021: £104.5 million).

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review continued

Revenue

Revenue for the Group is primarily derived from the rental of self storage space and the sale of ancillary products such as insurance and

merchandise (e.g. packing materials and padlocks).

The split of the Group’s revenues by geographical segment is set out below for 2022 and 2021.

2022 % of total 2021 % of total % change

UK £’m 163.0 76% 144.1 77% 13.1%

Paris

Local currency €’m 48.8 46.0 6.1%

Paris in Sterling £’m 41.4 19% 39.9 21% 3.8%

Spain

Local currency €’m 3.6 3.3 9.1%

Spain in Sterling £’m 3.0 2% 2.8 2% 7.1%

Benelux

Local currency €’m 5.9 — — —

Benelux in Sterling £’m 5.1 3% — — —

Average exchange rate 1.178 1.152 (2.3%)

Total revenue £’m 212.5 100% 186.8 100% 13.8%

The Group’s revenue increased by 13.8% or £25.7 million in the year. The Group’s occupied space was 434,000 sq ft higher at 31 October 2022

(6.317m sq ft) than at 31 October 2021 (5.883m sq ft), and the average storage rate per sq ft for the Group was, at £29.25, 8.5% higher than in

2021 (£26.95).

Adjusting the Group’s revenue to a like-for-like basis (adjusting for the Benelux acquisition in 2022, adjusting the UK for the 2021 opening of our

Birmingham Middleway store and the sale of Birmingham Digbeth, the December 2021 acquisition of Christchurch, and the December 2021

opening of our London Bow store, and in Paris for the opening of our Magenta store), revenue has increased by 10.1%. There was minimal

exchange rate movement in the year so Group like-for-like revenue at constant exchange rates has increased by 10.7%.

In the UK, revenue grew by £18.9 million or 13.1%, and on a like-for-like basis it increased by 12.2%. Occupancy was 53,000 sq ft lower at

31October 2022 than at 31 October 2021, at 4.637m sq ft (FY2021: 4.690m sq ft). The average storage rate for the year grew 13.7%,from

£25.32 in 2021 to £28.79 in 2022. On a like-for-like basis, the average storage rate in the UK also increased by 13.9% to £28.94 (FY2021: £25.40).

In Paris, revenue grew by €2.8 million or 6.1% and on a like-for-like basis it increased by 5.3% to €48.37 million (FY2021: €45.94 million). This was

driven by an increase in the average storage rate of 4.0% to €40.47 for the year (FY2021: €38.90), and an increase in average occupancy growth

of 2.3%, with closing occupancy growing to 1.112m sq ft (FY2021: 1.100m sq ft).

For Spain, revenue was €3.6 million, reflecting the growth in average rate of 5.6% to €34.07 (FY2021: €32.25), with a closing occupancy of

0.095m sq ft (78.9%).

Our Netherlands and Belgium businesses, acquired on 30 March 2022 from the buyout of the remaining 80% of the equity owned by Carlyle

in the Joint Venture formed in 2019, contributed seven months’ revenue, €5.9 million in the period. Collectively, the businesses saw 6,000 sq ft

of occupancy inflows in the fourth quarter and our Netherlands and Belgium businesses ended the period with a closing occupancy of 78.8%.

Theaverage rate for the seven-month period was €19.18 and €18.79 for the Netherlands and Belgium respectively.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Analysis of cost base

Cost of sales

The table below details the key movements in cost of sales between 2021 and 2022.

2022

£’m

2021

£’m

Statutory cost of sales (63.0) (56.9)

Adjusted for:

– Depreciation 1.0 1.0

– Variable lease payments 0.3 0.4

Underlying cost of sales (61.7) (55.5)

Underlying cost of sales for FY2021 (55.5)

– New developments cost of sales 0.7

Underlying cost of sales for FY2021 (like-for-like) (54.8)

– Volume related cost of sales (1.0)

– Employee remuneration, recruitment and training (0.2)

– Facilities and rates (2.0)

– Enquiry generation (0.3)

Underlying cost of sales for FY2022 (like-for-like; CER) (58.3)

– New developments cost of sales (3.6)

Underlying cost of sales for FY2022 (CER) (61.9)

– Foreign exchange 0.2

Underlying cost of sales for FY2022 (61.7)

In order to arrive at underlying cost of sales, adjustments are made to remove the impact of depreciation, which does not form part of Underlying

EBITDA, and variable lease payments, which forms part of our leasehold costs in the presentation of our underlying income statement.

Underlying cost of sales increased by £6.2 million in the year, from £55.5 million in 2021 to £61.7 million in 2022. On a like-for-like basis and

atconstant exchange rates, cost ofsales increased by £3.5 million or 6.4%, with a £2.0 million increase in facilities and business rates due

tobusiness rates reviews, and increases in utilities and store maintenance charges as well as a £1.0 million increase in volume related costs

of sales attributed to the stronger store performance. The investment in marketing during the year represented 3.6% of revenue (FY2021: 3.7%).

Administrative expenses

The table below reconciles reported administrative expenses to underlying administrative expenses and details the key movements in underlying

administrative expenses between 2021 and 2022.

2022

£’m

2021

£’m

Statutory administrative expenses (27.1) (34.0)

Adjusted for:

– Share-based payments 11.2 18.3

– Exceptional items 0.1 1.9

Underlying administrative expenses (15.8) (13.8)

Underlying administrative expenses for FY2021 (13.8)

– New developments administration costs 0.1

Underlying administrative expenses for FY2021 (like-for-like) (13.7)

– Employee remuneration (0.7)

– Other employee related costs (0.4)

Underlying administrative expenses for FY2022 (like-for-like; CER) (14.8)

– New developments administration costs (1.1)

Underlying administrative expenses for FY2022 (CER) (15.9)

– Foreign exchange 0.1

Underlying administrative expenses for FY2022 (15.8)

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review continued

In order to arrive at underlying administrative expenses, adjustments are made to remove the impact of exceptional items, share-based payments

and other non-underlying items. The decrease in share-based payments relates to the prior year recognising full performance of the Earnings per

Share criteria of the five-year scheme, which was measured over a five-year period from 1 November 2016 to 31 October 2021. As the performance

period completed in 2021, measurement of this performance criteria and the associated National Insurance charge was able to be measured

accurately and in full. The current year charge reflects the charge associated with the remaining schemes.

Underlying administrative expenses increased by £2.0 million in the year, from £13.8 million in 2021 to £15.8 million in 2022. Like-for-like

administrative expenses at constant exchange rates grew by 8.0% to £14.8 million. This is the result of year-on-year increases in employee

remuneration and other employee related costs, which are associated with the strong business performance.

Therefore, total underlying costs (cost of sales plus administrative expenses) on a like-for-like basis and at constant exchange rates have

increased by £4.6 million to £73.1 million (FY2021: £68.5 million).

Exceptional items and other exceptional gains

Included within exceptional items and other exceptional gains of £10.7 million are £5.5 million relating to the valuation gain of Safestore’s 20%

investment in the Joint Venture and £5.1 million relating to the profit on the sale of the Nanterre land in Paris in November 2021.

In France, the basis on which property taxes have been assessed has been challenged by the tax authority for financial years 2011 onwards.

InMarch 2021 the French Court of Appeal delivered a judgement, which resulted in a partial success for the Group; however, a further appeal

has been lodged with the French Supreme Court against those decisions on which the Group was unsuccessful. A provision is included in the

consolidated financial accounts of £2.4 million at 31 October 2022 (31 October 2021: £2.1 million), to reflect the increased uncertainty surrounding

the likelihood of a successful outcome. Of the total provided, £0.3 million has been charged in relation to the year ended 31 October 2022 within

cost of sales (Underlying EBITDA) (31 October 2021: £0.2 million within cost of sales (Underlying EBITDA) and £1.9 million recorded as an

exceptional charge in respect of financial years 2012 to 2020).

It is possible that the French tax authority may appeal the decisions of the French Court of Appeal on which the Group was successful to

theFrench Supreme Court. The maximum potential exposure in relation to these issues at 31 October 2022 is £3.0 million (31 October 2021:

£2.7million). No provision for any further potential exposure has been recorded in the consolidated financial statements since the Group

believesit is more likely than not that a successful outcome will be achieved, resulting in no additional liabilities.

Gain on investment properties

The gain on investment properties consists of the revaluation gains and losses with respect to investment properties under IAS 40 and the fair

value re-measurement of lease liabilities add-back and other items as detailed below.

2022

£’m

2021

£’m

Revaluation of investment properties 394.1 329.0

Revaluation of investment properties under construction (4.2) (0.5)

Fair value re-measurement of lease liabilities add-back (8.3) (7.4)

Statutory gain on investment properties 381.6 321.1

In the current financial year, the UK business contributed £299.8 million to the positive valuation movement, the Paris business contributed

£82.3million, Spain contributing £1.6 million, with the remaining £6.2 million in Benelux. The gain on investment properties principally reflects

thecontinuing progress in the performance of the businesses, which has driven further positive changes in the cash flow metrics that are used

toassess the value of the store portfolio which are predominantly based on trading potential, underpinned by average rate, which has increased

by 8.5% to £29.25 in 2022 from £26.95 in 2021, capitalisation rates and stabilised occupancy.

Operating profit

Operating profit increased by £97.5 million from £417.0 million in 2021 to £514.5 million in 2022, comprising a £17.1 million increase in

UnderlyingEBITDA, a £61.4 million higher investment properties and investment properties under construction gain primarily due to significant

improvement in store performance and a reduction in the share-based payments charge of £7.1 million as well as other exceptional gains and

exceptional items of £10.7 million, of which £5.5 million relates to the valuation gain of Safestore’s 20% investment in the Joint Venture formed

in2019 with Carlyle that arose on acquisition of the remaining 80%, with £5.1 million relating to the profit on the sale of the Nanterre land in

Parisin November 2021.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Net finance costs

Net finance costs include interest payable, interest on lease liabilities, fair value movements on derivatives, exchange gains orlosses, unwinding

of discounts and exceptional refinancing costs. Net finance costs increased by £3.3 million in 2022 to £15.7 million from £12.4 million in 2021,

principally due to the increased interest charges associated with the USPP’s to fund the Group’s acquisition and development activity, offset by

the gains made on financial instruments.

2022

£’m

2021

£’m

Net bank interest payable (11.9) (9.7)

Amortisation of debt issuance costs on bank loans (0.5) (0.4)

Interest from loan to associates 0.1 0.1

Financial instruments income 1.3 0.5

Other interest received 0.1 —

Underlying finance charges (10.9) (9.5)

Interest on lease liabilities (5.0) (5.2)

Fair value movement on derivatives (0.3) 2.9

Net exchange losses — (0.6)

Exceptional finance income 0.5 —

Net finance costs (15.7) (12.4)

Underlying finance charge

The underlying finance charge (net bank interest payable reflecting term loan, swap and USPP interest costs) increased by £1.4 million to

£10.9million, principally reflecting the increased interest charge associated with the Group’s additional borrowings in the year, drawn to fund

theGroup’s acquisition and development activity. The underlying finance charge represents the finance expense before exceptional items and

changes in fair value of derivatives, amortisation of debt issuance costs and interest on lease liabilities and is disclosed because management

reviews and monitors performance of the business on this basis.

Financial instruments income in the year of £1.3 million (FY2021: £0.5 million) related to the gains made on the expiration of average rate forwards

which matured in April 2022 and October 2022.

Based on the year-end drawn debt position the effective interest rate is analysed as follows:

Facility

£/€’m

Drawn

£’m

Hedged

£’m

Hedged

Bank

margin

Hedged

rate

Floating

rate

Total

rate

UK Revolver £250.0 £76.0 £55.0 72% 1.25% 0.69% 2.19% 2.35%

UK Revolver – non-utilisation £174.0 — — — 0.50% — — 0.50%

Euro Revolver €70.0 £25.8 — — 1.25% — 1.38% 2.63%

Euro Revolver – non-utilisation €40.0 — — — 0.50% — — 0.50%

US Private Placement 2024 €50.9 £43.8 £43.8 100% 1.59% — — 1.59%

US Private Placement 2026 €70.0 £60.2 £60.2 100% 1.26% — — 1.26%

US Private Placement 2026 £35.0 £35.0 £35.0 100% 2.59% — — 2.59%

US Private Placement 2027 €74.1 £63.7 £63.7 100% 2.00% — — 2.00%

US Private Placement 2028 £20.0 £20.0 £20.0 100% 1.96% — — 1.96%

US Private Placement 2028 €29.0 £24.9 £24.9 100% 0.93% — — 0.93%

US Private Placement 2029 £50.5 £50.5 £50.5 100% 2.92% — — 2.92%

US Private Placement 2029 £30.0 £30.0 £30.0 100% 2.69% — — 2.69%

US Private Placement 2029 €105.0 £90.3 £90.3 100% 2.45% — — 2.45%

US Private Placement 2031 £80.0 £80.0 £80.0 100% 2.39% — — 2.39%

US Private Placement 2033 €29.0 £24.9 £24.9 100% 1.42% — — 1.42%

Unamortised finance costs — (£1.3) — — — — — —

Total £833.5 £623.8 £578.3 93% 2.41%

As at 31 October 2022, £76.0 million of the £250.0 million UK Revolver and €30.0 million (£25.8 million) of the €70.0 million Euro Revolver were

drawn. The drawn amounts attract a bank margin of 1.25%, and the Group pays a non-utilisation fee of 0.50% on the undrawn balances of

£174.0 million and €40.0 million.

The Group has £55.0 million of interest rate swaps in place to June 2023, swapping SONIA at a weighted average effective rate of 0.69%.

Theseinterest rate swaps are in place to hedge the UK Revolver floating SONIA rate.

On 21 April 2022, Safestore extended its borrowing facilities with the issuance of €105.0 million denominated US Private Placement (“USPP”)

Notes with the following coupon and tenor:

• €105.0 million seven-year notes at a coupon of 2.45% (credit spread of 120 bps)

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review continued

The funds were received in April 2022 and were used to pay down Revolving Credit Facilities (“RCF’s”) utilised to acquire the remaining 80%

owned by Carlyle in the Joint Venture formed in 2019. The Joint Venture was set up in 2019 to acquire and develop assets in the Netherlands

and Belgium in order to leverage Safestore’s operating platform outside our core markets. Since then, the Joint Venture has grown to a portfolio

of 600,000 sq ft of MLA which is currently 78.8% occupied.

The 2024, 2026, 2027, 2028, 2029 and 2033 US Private Placement Notes are denominated in Euros and attract fixed interest rates of 1.59%

(on€50.9 million), 1.26% (on €70.0 million), 2.00% (on €74.1 million), 0.93% (on €29.0 million), 2.45% (on €105.0 million) and 1.42% (on €29.0 million)

respectively. The Euro denominated borrowings provide a natural hedge against the Group’s investment in the Paris and Spain businesses.

The 2026 (£35.0 million), 2028 (£20.0 million), 2029 (£50.5 million), 2029 (£30.0 million) and 2031 (£80.0 million) US Private Placement Notes are

denominated in Sterling and attract a fixed interest rate of 2.59%, 1.96%, 2.92%, 2.69% and 2.39% respectively.

As a result of the hedging arrangements and fixed interest loan notes, effectively 93% of the Group’s drawn debt is at fixed rates of interest.

Overall, the Group has an effective interest rate on its borrowings of 2.41% as at 31 October 2022, consistent with 2.36% at the previous year end.

On 11 November 2022, the Group completed the refinancing of its RCF’s which were due to expire in June 2023.

The previous £250.0 million Sterling and €70.0 million Euro RCF’s have been replaced with a single multi-currency £400 million facility. In addition,

a further £100 million uncommitted accordion facility is incorporated in the facility agreement. The facility is for a four-year term with two one-year

extension options exercisable after the first and second years of the agreement.

The Group will pay interest at a margin of 1.25% plus SONIA or EURIBOR depending on whether the borrowings are drawn in Sterling or Euros.

Themargin is at the same level as the previous facility agreements.

Non-underlying finance charge

Interest on lease liabilities was £5.0 million (FY2021: £5.2 million) and reflects part of the leasehold rent costs. The balance of the leasehold

payment is charged through the gain or loss on investment properties line and variable lease payments in the income statement. Overall, the

leasehold rent costs charge increased from £13.0 million in 2021 to £13.6 million in 2022, principally reflecting the increase rent costs across the

portfolio in addition to the Netherlands leaseholds now forming part of the Group.

A net loss of £0.3 million was recognised on fair valuation of derivatives (FY2021: net gain of £2.9 million). The prior year gain was primarily driven

by the movement in the unexpired interest rate swaps year-on-year due to future market expectations around rising inflation and interest rates.

The Group undertakes net investment hedge accounting for its Euro denominated loan notes.

Tax

The tax charge for the year is analysed below:

2022

£’m

2021

£’m

Underlying current tax (5.2) (5.5)

Current year – exceptional (0.9) —

Current tax charge (6.1) (5.5)

Tax on investment properties movement (29.9) (17.8)

Tax on revaluation of interest rate swaps — (0.1)

Other 0.1 0.8

Deferred tax charge (29.8) (17.1)

Net tax charge (35.9) (22.6)

The net income tax charge for the year is £35.9 million (FY2021: £22.6 million), which relates solely to the Group’s non-UK European businesses.

In the UK, the Group is a REIT and benefits from a zero rate of tax on its qualifying earnings. The underlying current tax charge relating to the

European businesses amounted to £5.2 million (FY2021: £5.5 million), calculated by applying the effective overall underlying tax rate of 20.9%

tothe underlying profits arising earned by the non-UK businesses.

The deferred tax charge relating to Paris, Spain and Benelux was £29.8 million (FY2021: Paris and Spain £17.1 million charge).

In 2022, an exceptional current year tax charge of £0.9 million arose on the disposal of the Nanterre land.

All deferred tax movements are non-underlying. The deferred tax impact of the revaluation gain on investment properties was a charge

of£29.9million (FY2021: £17.8 million charge).

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Earnings per Share

As a result of the movements explained above, profit after tax for 2022 was £462.9 million as compared with £382.0 million in 2021. Basic EPS

was 219.5 pence (FY2021: 181.2 pence) and diluted EPS was 212.4 pence (FY2021: 176.4 pence).

Adjusted Diluted EPRA EPS is based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for

the period after tax but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and the

associated tax impacts. The Company then makes further adjustments for the impact of exceptional items, IFRS 2 share-based payment

charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted number of shares. The IFRS 2 cost is

excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element).

Therefore, neither the Company’s ability to distribute nor pay dividends is impacted (with the exception of the associated National Insurance

element). The financial statements disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis and provide a full reconciliation

of the differences in the financial year in which any Long Term Incentive Plan (“LTIP”) awards may vest.

Management introduced Adjusted Diluted EPRA EPS as a measure of EPS following the implementation of the Group’s LTIP schemes.

Management considers that the real cost to existing shareholders is the dilution that they will experience from the LTIP schemes; therefore,

earnings has been adjusted for the IFRS 2 share-based payment charge, and the number of shares used in the EPS calculation has been

adjusted for the dilutive effect of the LTIP scheme.

The Group has exposure to the movement in the Euro/Sterling exchange rate. Based on the FY2022 results, for every 10 cents variance to the

average exchange rate of 1.178, there would be an impact of £1.5 million to Adjusted EPRA Earnings.

Adjusted Diluted EPRA EPS for the year was 47.5 pence (FY2021: 40.5 pence), calculated on a pro forma basis, as if the dilutive LTIP shares were

in issue throughout both the current and prior years, as follows:

2022 2021

Earnings

£’m

million

Pence

per share

Earnings

£’m

million

Pence

per share

Basic earnings 462.9 210.9 219.5 382.0 210.8 181.2

Adjustments:

Gain on investment properties (381.6) — (180.9) (321.1) — (152.3)

Exceptional items 0.1 — — 1.9 — 0.9

Other exceptional gains (10.8) — (5.1) — — —

Exceptional finance income (0.5) — (0.2) — — —

Net exchange losses — — — 0.6 — 0.3

Change in fair value of derivatives 0.3 — 0.1 (2.9) — (1.4)

Tax on adjustments/exceptional tax 29.7 — 14.1 16.2 — 7.7

Adjusted 100.1 210.9 47.5 76.7 210.8 36.4

EPRA adjusted:

Fair value re-measurement of lease liabilities

add-back (8.3) — (3.9) (7.4) — (3.5)

Tax on lease liabilities add-back adjustment 1.0 — 0.5 0.9 — 0.4

EPRA basic EPS 92.8 210.9 44.1 70.2 210.8 33.3

Share-based payments charge 11.2 — 5.3 18.3 — 8.7

Dilutive shares — 8.0 (1.9) — 7.5 (1.5)

Adjusted Diluted EPRA EPS 104.0 218.9 47.5 88.5 218.3 40.5

Dividends

The Directors are recommending a final dividend of 20.4 pence (FY2021: 17.6 pence) which shareholders will be asked to approve at the

Company’s Annual General Meeting on 15 March 2023. If approved by shareholders, the final dividend will be payable on 7 April 2023 to

shareholders on the register at close of business on 3 March 2023.

Reflective of the Group’s improved performance, the Group’s full year dividend of 29.8 pence is 18.7% up on the prior year dividend of

25.1pence. The Property Income Distribution (“PID”) element of the full year dividend is 22.75 pence (FY2021: 25.1 pence).

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review continued

Property valuation and Net Asset Value (“NAV”)

Cushman & Wakefield Debenham Tie Leung Limited LLP (“C&W”) has valued the Group’s property portfolio. As at 31 October 2022, the total

value of the Group’s property portfolio was £2,457.8 million (excluding investment properties under construction of £94.5 million and net of lease

liabilities of £95.1 million). This represents an increase of £576.0 million compared with the £1,881.8 million valuation as at 31 October 2021.

Areconciliation of the movement is set out below:

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Total

£’m

Paris

€’m

Spain

€’m

Benelux

€’m

Value as at 1 November 2021 1,416.2 440.4 25.2 — 1,881.8 521.6 29.8 —

Currency translation movement — 9.1 0.4 2.1 11.6 — — —

Additions 19.7 6.3 0.1 5.7 31.8 7.4 0.1 6.8

Acquisition of subsidiaries 2.6 — — 125.6 128.2 — — 148.4

Disposals (6.2) — — — (6.2) — — —

Reclassifications 16.5 — — — 16.5 — — —

Revaluation 308.0 82.3 1.6 2.2 394.1 96.9 2.0 2.5

Value at 31 October 2022 1,756.8 538.1 27.3 135.6 2,457.8 625.9 31.9 157.7

As described in note 13 of the financial statements, the valuation is based on a discounted cash flow of the net operating income over a ten-year

period and a notional sale of the asset at the end of the tenth year. Accordingly, the gain on investment properties principally reflects the

continuing progress in the performance of the business and the strong underlying trading of the store, underpinned by average rate which has

increased by 8.5% to £29.25 in 2022 from £26.95 in 2021 with a slight reduction in occupancy, which is down 2.4ppts to 82.1% in 2022 from

84.5% in 2021, capitalisation rates and stabilised occupancy, as explained further below.

The exchange rate at 31 October 2022 was €1.16:£1 compared with €1.18:£1 at 31 October 2021. This movement in the foreign exchange rate

has resulted in a £11.6 million favourable currency translation movement in the year. This has slightly improved the Group Net Asset Value (“NAV”)

but had no impact on the loan-to-value (“LTV”) covenant as the assets in Paris are tested in Euros.

The Group’s property portfolio valuation excluding investment properties under construction has increased by £576.0 million from the valuation

of £1,881.8 million at 31 October 2021. This reflects the gain on valuation of £394.1 million, which is explained above, plus £128.2 million relating

to the acquisition of the remaining 80% in the Joint Venture and the UK Christchurch store as well as £42.1 million relating to additions, store

refurbishments, reclassifications and disposals together with £11.6 million of favourable foreign exchange movements on the translation of the

European portfolios.

The value of the UK investment property portfolio including investment properties under construction has increased by £340.7 million (comprising

£324.1 million in investment properties and £16.6 million in investment properties under construction) compared with 31 October 2021. This includes

a £299.8 million valuation gain, £44.5 million of capital additions, £2.6 million of acquisitions, offset by £6.2 million of disposals.

In Paris, the value of the property portfolio including investment properties under construction increased by €104.3 million, of which €96.9 million

was valuation gain and capital additions were €7.4 million. The net increase in investment properties when translated into Sterling amounted to

£97.7 million, reflecting the foreign exchange impact described above.

In Spain, the value of the property portfolio including investment properties under construction increased by €26.9 million, of which €2.0 million

was valuation gain and capital additions were €24.9 million. The net increase in investment properties including investment properties under

construction when translated into Sterling amounted to £23.6 million, reflecting the foreign exchange impact described above.

In Benelux, the value of the property portfolio including investment properties under construction was £141.1 million.

Our pipeline of future development opportunities remains strong and gives us further confidence in our future growth plans, comprising eleven

stores or store extensions in the UK, seven in France, six in Spain, and five in Benelux.

The Group’s freehold exit yield for the valuation at 31 October 2022 reduced to 5.66%, from 6.03% at 31 October 2021, and the weighted

average annual discount rate for the whole portfolio has reduced from 8.72% at 31 October 2021 to 8.49% at 31 October 2022.

C&W’s valuation report confirms that the properties have been valued individually but that if the portfolio were to be sold as a single lot or in

selected groups of properties, the total value could be different. C&W states that in current market conditions it is of the view that there could

bea material portfolio premium.

EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”). Safestore considers EPRA NTA tobe most consistent with the nature of the

Group’s business.

The EPRA Basic NTA per Share, as reconciled to IFRS net assets per share in note 15 of the financial statements, was 908 pence at 31 October 2022

(FY2021: 697 pence), up 30.3% since 31 October 2021, and the IFRS reported diluted NAV per share was 820 pence (FY2021: 635 pence),

reflecting a £418.5 million increase in reported net assets during the year.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Gearing and capital structure

The Group’s borrowings comprise revolving bank borrowing facilities in the UK and France and US Private Placement Notes.

Net debt (including lease liabilities and cash) stood at £698.3 million at 31 October 2022, an increase of £174.5 million from the 2021 position

of£523.8million, reflecting funding for the continued expansion of the Group portfolio. Total capital (net debt plus equity) increased from £1,898.7 million

at 31 October 2021 to £2,491.7 million at 31 October 2022. The net impact is that the gearing ratio has increased from 27.6% to28.0% in the year.

Management also measures gearing with reference to its loan-to-value (“LTV”) ratio defined as gross debt (excluding lease liabilities) as a

proportion of the valuation of investment properties and investment properties under construction (excluding lease liabilities). At 31 October 2022

the Group LTV ratio was 24.4% as compared to 24.9% at 31 October 2021. It should be noted, under the new facility, signed 11 November 2022,

LTV is to be calculated against net debt which equates to an LTV of 23.6%. The Board considers the current level of gearing is appropriate for

the business to enable the Group to increase returns on equity, maintain financial flexibility and achieve our medium term strategic objectives.

Borrowings at 31 October 2022

As at 31 October 2022, £76.0 million of the £250.0 million UK Revolver and €30.0 million (£25.8 million) of the €70.0 million Euro Revolver

weredrawn. Including the US Private Placement debt of €358.0 million (£307.8 million) and £215.5 million, the Group’s borrowings totalled

£623.8million (after adjustment for unamortised finance costs).

As at 31 October 2022, the weighted average remaining term for the Group’s available borrowing facilities is 4.0 years (FY2021: 4.6 years). If

we take into consideration the new financing completed on 11 November 2022, with a four-year term to November 2026, the weighted average

remaining term for the Group’s available borrowing facilities is 5.1 years.

Borrowings under the existing loan facilities are subject to certain financial covenants. The UK bank facilities and the US Private Placement share

interest cover and LTV covenants. The interest cover requirement of EBITDA: interest is 2.4:1, where it will remain until the end of the facilities’

terms. Interest cover for the year ended 31 October 2022 is 11.4x (FY2021: 10.5x).

The LTV covenant is 60% in both the UK and France under the current facility. As at 31 October 2022, there is significant headroom in both

the UK LTV and the French LTV covenant calculations.

The Group is in compliance with its covenants at 31 October 2022 and, based on forecast projections, is expected to be in compliance for

a period in excess of twelve months from the date of this report.

Cash flow

The table below sets out the underlying cash flow of the business in 2022 and 2021. For statutory reporting purposes, leasehold costs cash

flows are allocated between finance costs, principal repayments and variable lease payments. However, management considers a presentation

of cash flows that reflects leasehold costs as a single line item to be representative of the underlying cash flow performance of the business.

2022

£’m

2021

£’m

Underlying EBITDA 135.1 118.0

Working capital/exceptionals/other (2.7) (2.1)

Adjusted operating cash inflow 132.4 115.9

Interest payments (11.8) (8.0)

Leasehold rent payments (13.6) (13.0)

Tax payments (5.6) (5.4)

Free cash flow (before investing and financing activities) 101.4 89.5

Acquisition of subsidiary, net of cash acquired (111.5) —

Loan to associates — (0.9)

Investment in associates (0.8) (1.9)

Capital expenditure – investment properties (95.2) (62.4)

Capital expenditure – property, plant and equipment (1.0) (1.0)

Net proceeds from disposal of land 1.0 —

Net proceeds from disposal of investment properties 6.4 —

Proceeds from disposal – property, plant and equipment 0.2 —

Net cash flow after investing activities (99.5) 23.3

Issue of share capital 0.5 0.7

Dividends paid (56.9) (42.6)

Net drawdown of borrowings 132.1 43.8

Debt issuance costs (0.1) (0.7)

Financial instruments 1.3 —

Swap termination 0.5 —

Net (decrease)/increase in cash (22.1) 24.5

Note

Free cash flow is a non-GAAP measure, defined as cash flow before investing and financing activities but after leasehold rent payments.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Financial review continued

The first table below reconciles free cash flow (before investing and financing activities) in the table above to net cash inflow from operating

activities in the consolidated cash flow statement. The second table below reconciles adjusted net cash flow after investing activities in the table

above to the consolidated cash flow statement. The third table below reconciles adjusted operating cash inflow to the cash generated from

operations in the consolidated cash flow statement.

2022

£’m

2021

£’m

Free cash flow (before investing and financing activities) 101.4 89.5

Add back: principal payment of lease liabilities 8.4 7.5

Net cash flow from operating activities 109.8 97.0

2022

£’m

2021

£’m

From table above:

Adjusted net cash flow after investing activities (99.5) 23.3

Add back: principal payment of lease liabilities 8.4 7.5

Net cash flow after investing activities (91.1) 30.8

From consolidated cash flow:

Net cash inflow from operating activities 109.8 97.0

Net cash outflow from investing activities (200.9) (66.2)

Net cash flow after investing activities (91.1) 30.8

2022

£’m

2021

£’m

Adjusted operating cash inflow 132.4 115.9

Cash outflow on variable lease payments (0.2) (0.3)

Cash flow from operations 132.2 115.6

Adjusted operating cash flow increased by £16.5 million in the year, principally due to the £17.1 million improvement in Underlying EBITDA.

Working capital, exceptional items and other movements resulted in a net £2.7 million outflow (FY2021: £2.1 million outflow), principally relating

tomovements in trade receivables and trade payables.

Free cash flow (before investing and financing activities) grew by 13.3% to £101.4 million (FY2021: £89.5 million). The free cash flow benefited

from the increase in Underlying EBITDA and the increase in adjusted operating cash flow.

Investing activities experienced a net outflow of £200.9 million (FY2021: £66.2 million outflow), which included £111.5 million relating to the

acquisition of the remaining 80% in the Joint Venture as well as the acquisition of the new site at Christchurch and £95.2 million of capital expenditure

on our investment property portfolio as well as cash generated from the sale of our Birmingham – Digbeth store. Of the £95.2 million capital

expenditure on investment properties, £60.2 million related to the UK, £6.4 million related to France, £21.3 million related to Spain and £7.3 million

related to Benelux. Of the £95.2 million, £7.5 million related to maintenance, £68.4 million to new stores and £19.3 million to developments and

property, plant and equipment.

Adjusted financing activities generated a net cash inflow of £77.4 million (FY2021: £1.2 million inflow). Dividend payments totalled £56.9 million

(FY2021: £42.6 million). The net drawdown of borrowings was £132.1 million (FY2021: £43.8 million), in order to finance the acquisition of the

remaining 80% in the Joint Venture as well as development and pipeline stores.

The strategic report, including pages 5 to 73, was approved by a duly authorised Committee of the Board of Directors on 16 January 2023

and signed on its behalf by:

Andy Jones

Chief Financial Officer

16 January 2023

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

This section provides further insight into how we engage with

keystakeholders. Building and maintaining effective stakeholder

relationships informs how we create value in the long term.

Our formal Section 172(1) statement is set out on page 36.

The principles that underpin Section 172 of the Companies Act 2006 are

considered by the Board within its decision-making processes. Our

Section 172 statement on page 36 provides examples of Board decisions

taken during the year. These examples seek to demonstrate how Board

decision-making aligns to our strategic priorities and purpose and are

informed by stakeholder considerations and expectations. The Section

172 principles are part of our culture, are embedded in all that we do and

are strengthened by our Board setting the right tone from the top. The

Company seeks to act fairly with its stakeholders and maintain its

reputation for high standards of business and ethical conduct which

contribute to Safestore’s success in the long term. Pages 34 to 36 are

incorporated by cross-reference into our governance report.

Engaging with our stakeholders

The Board is committed to effective engagement with all our key

stakeholders. The Board has identified a number of key stakeholders

which it seeks to engage with on a regular basis. A summary of our key

stakeholders, why they are important to us, what matters to them, and

where further information can be found summarising how we engage with

stakeholders, is set out below.

What matters to our key stakeholders is determined by the Board and by

management and has been informed by feedback received from the

ongoing engagement process itself and from a deep understanding of our

operating model. How we engage is led by either the Board or by

management. Not all information is reported directly to the Board,

however it informs management decisions and the Board continues to

receive regular stakeholder updates at Board meetings and a summary of

these updates are set out in the key matters considered by the Board

during the year on page 80.

Key stakeholders

Why our key stakeholders are important

to us and what matters to them

Further information: how the Board:

• engages with our key stakeholders; and

• measures the outcome of our engagement

Our people

Why our people are important to Safestore:

• Our people are the foundation of our customer-focused

culture and deliver our strategy and operate our business

model. Our people drive and deliver our strategic priorities.

What matters to our people includes:

• Fair pay and reward.

• Health and wellbeing and a safe working environment.

• Colleague engagement.

• Open and honest communication.

• Training and development opportunities and an opportunity

forour colleagues to reach their full potential.

• A diverse and inclusive workplace.

For further information on how we engage with

our people see:

• Directors’ remuneration report – Communication with

colleagues on page 103.

• Strategic report – Our people section on pages 9 to 10.

• Sustainability report – Our people section on

pages 49 to 53.

Safestore measures the outcome of

ourengagement by:

• Colleague retention, particularly within its senior team.

• Feedback from our ‘Make the Difference’ people forum.

• High colleague response rate to the Investors in People

(“IIP”) 2021 accreditation process.

• The adoption of our wellbeing initiatives.

• Completion of our comprehensive learning and

development tools.

Our customers

Why our customers are important to Safestore:

• Our customers are the mainstay of our business and their

views and their satisfaction are important to us and drive our

financial performance.

What matters to our customers includes:

• Great customer service and the provision of safe and

securestorage sites.

• Well-located and accessible stores.

• Expertise in providing self storage solutions and

understanding our customers’ requirements.

• Reliable communication channels, which include face-to-

face communication in store, a Customer Support Centre

and online communications via our website, email and social

media channels, as well as through our LiveChat service.

• Flexible contractual arrangements.

For further information on how we engage with

ourcustomers:

• Strategic report – Our customer section on page 11.

• Sustainability report – Our customer section on

pages 54 to 55.

Safestore measures the outcome of our

engagement by:

• Receiving customer reviews and feedback collected from

our website, third party platforms and social media

channels as explained on page 9 and on page 55.

• Customer occupancy rates – see pages 19 to 21.

• External recognition and awards. In February 2022,

Safestore won the Feefo Platinum Trusted Service Award

for the third time.

Our purpose: to add stakeholder value

by developing profitable and sustainable

spaces thatallow individuals, businesses,

and local communities to thrive

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Engaging with our stakeholders and our Section 172(1) statement

Key stakeholders

Why our key stakeholders are important

to us and what matters to them

Further information: how the Board:

• engages with our key stakeholders; and

• measures the outcome of our engagement

Our

shareholders

andinvestors

Many of our

colleagues are

shareholders.

Why our shareholders and investors are important

to Safestore:

• A strong and flexible capital structure is fundamental

to our strategy.

What matters to our shareholders and

investors includes:

• That the Company maximises long term value,

which means:

• Sustainable current and future financial performance

and returns.

• A clear strategy and business model.

• Strong leadership.

• Maintaining our reputation.

• Managing and reporting our ESG performance with clear

and transparent disclosures.

For further information on how we engage with

ourshareholders and investors:

• Governance report – Investor relations and Shareholder

and Investor Engagement on page 82.

• Directors’ remuneration report on page 103.

How we measure the outcome of our engagement:

• Safestore was shortlisted in The Investor Relations

Society Best Practice Awards 2022 in the Best Overall

IR Company category. Safestore was nominated

forthisaward by the external analysts and the

investorcommunity.

Our partners

These include our

Joint Venture partner,

Carlyle, our landlords

at our leasehold sites,

our contractors and

our suppliers of

goods

and services.

Why our partners are important to Safestore:

• Strong, stable and long term relationships support

theGroup in delivering its strategy, by optimising and

managing our property portfolio.

What matters to our partners includes:

• Building strong relationships.

• Maintaining sustainable business practices.

• Our current and future financial performance.

• Our operational excellence.

• Clear communication, fair engagement and

prompt payment.

• Corporate governance.

For further information on how we engage with

ourpartners:

• Strategic report – Our communities section on page 11.

• Regular meetings and communication with our partners.

• Quarterly meetings with our construction

management partner.

• Supplier forums held bi-annually, which facilitate an open

exchange of feedback.

How we measure the outcome of our engagement:

• The establishment of successful long term relationships

with our partners.

Our

communities

Why our communities are important to Safestore:

• Safestore is committed to making a positive contribution

within the local communities around its stores. We are keen

to deliver long term benefits to society and the

localeconomy consistent with our alignment with the

Sustainable Development Goals and our

sustainability strategy.

What matters to our communities:

• That our business operations seek to minimise any negative

impact and, any local disruption, on our localcommunities.

• Create local employment opportunities.

• Support community projects and providing support tolocal

and national charities.

For further information on how we engage with

ourcommunities:

• ESG strategy – On page 11.

• Sustainability report – Our communities on

pages 55 to 57.

How we measure the outcome of our engagement:

• Space occupied by local charities on pages 11 and 55.

Our

environment

Why our environment is important to Safestore:

• Safestore’s long-standing commitment is to provide both

along term sustainable investment and a pleasant and safe

environment for our customers and colleagues and the

delivery of our sustainability strategy.

To protect the planet from our activities means:

• Awareness of the environmental impact of our activities and

seeking to ensure that any negative impact is minimised.

• Reducing our absolute emissions and energy and

waterconsumption.

• Reducing waste, in particular plastic waste, and diverting

waste from landfill.

• Sustainable development of new stores.

For further information on how we engage with

our environment:

• ESG strategy – On page 11.

• Sustainability report – Our environment on

pages 58 to 61.

How we measure the outcome of our engagement:

• By measuring our reductions in absolute emissions,

energy and water consumption and waste.

• External recognition and awards on pages 6, 11, and 46.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our Section 172(1) statement

The Board has regard to the matters set out in Section 172(1) of the Companies Act 2006 when performing its duties under Section 172 to act in

a way it considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in

doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance

to the Company are appropriately informed by Section 172 factors.

The following provides examples of decisions approved by the Board during the year ended 31 October 2022 and how Section 172 factors have

informed the Board’s decision-making. The summary seeks to provide further insight into how these decisions align to our purpose and strategic

priorities, and our stakeholders’ expectations, whilst also demonstrating Safestore’s corporate culture to act fairly and maintain its reputation for

high standards of business and ethical conduct. Taken together these factors enable the Group to progress towards its purpose and long term success.

The following Board decisions are aligned to our Purpose and our strategic priorities.

Our strategic

priority Board decision

Stakeholder factors – expectations and considerations –

thatinform Board decision-making: Further information

Optimising trading

performance of

existing portfolio

Investing in colleagues

Further investment in

our Store and Senior

Management Development

and Graduate Programmes.

Our people: Provides personal development opportunities which will

improve colleague skills and prepare colleagues for more senior roles

within our business.

Our customers: Training and development programmes arealigned

to support our customers and meet their needs andexpectations.

Our investors: The interests of our colleagues and our investors are

aligned, to deliver the long term success of the business.

Our partners: A well-trained workforce is able to engage more

effectively with our partners.

Our communities: A well-trained and engaged workforce is

committed to our social initiatives.

Our environment: A well-trained and engaged workforce are

committed to our initiatives that support our climate goals.

Read more about the

Board’s decision to invest

in our colleagues: pages 9

to 10 and pages 52 to 53.

Read more about the

outcomes from investing

in colleagues: pages 9 to

10 and 51.

Maintaining a strong

and flexible capital

structure

New $115 million

Shelf Facility

The new financing

arrangement aligns to

our strategic priorities

and provides the capital

to invest in new sustainable

spaces.

The facility partially funded

the Group’s acquisition of

Carlyle’s 80% share of

the Benelux Joint Venture.

Our people: New property investments provide new development

opportunities for our colleagues with the opportunity to manage

assets in new geographies and adopt best practice across

theGroup.

Our customers: Enables the Group to expand its services to new

customers in new geographies.

Our investors: The facility was arranged for a seven-year term atan

interest rate of 2.45% pa. Investors have the confidence that the

Group manages its debt structure efficiently, pursues high yielding

assets and minimises financing costs in line with the Group’s

objectives.

Our partners: Can be confident that Safestore has the financial

foundation for long term growth.

Our communities: Cost-effective financing enables local

communities to directly benefit from new stores.

Our environment: Financing at a cost-effective rate provides

financing for investment in store sustainability.

Read more about the

Board’s decision to

arrange this new financing

facility: page 10.

Read more about the

outcomes of this financing

decision: page 21.

Selective portfolio

management and

expansion

opportunities in our

existing markets and

in attractive new

geographies

Investment in our

property pipeline

Property acquisitions align

to our strategic priorities

and our purpose, to add

stakeholder value by

expanding our property

portfolio to provide

newprofitable and

sustainable spaces.

Our people: Clear Board decision-making enables colleagues to

deliver property developments in line with the Board’s disciplined and

strict investment criteria.

Our customers: Providing well-located and accessible stores.

Our investors: Expect a robust investment appraisal process

considering key risks and appropriate environmental and sustainable

development considerations.

Our partners: New property developments support stable and long

term relationships with our suppliers.

Our communities: Expect new stores to make a positive

contribution within their local communities.

Our environment: Enables the Group to develop sustainable

spaces that minimise the impact of our business operations on

ourenvironment.

Read more about the

Board’s investment

decisions: pages 12

to 17, which include

a summary of our

property pipeline.

Read more about the

outcomes of the Boards

property investments:

pages 12 to 17.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Engaging with our stakeholders and our Section 172(1) statement

continued

Risks and risk management

The Board recognises that effective risk management requires

awareness and engagement at all levels of our organisation.

Risk management process

The Board is responsible for determining the nature of the risks the

Group faces, and for ensuring that appropriate mitigating actions are

in place to manage them in a manner that enables the Group to achieve

its strategic objectives.

Effective risk management requires awareness and engagement at all

levels of our organisation. It is for this reason that the risk management

process is incorporated into the day-to-day management of our

business, as well as being reflected in the Group’s core processes and

controls. The Board has defined the Group’s risk appetite and

oversees the risk management strategy and the effectiveness of the

Group’s internal control framework. Risks are considered at every

business level and are assessed, discussed and taken into account

when deciding upon future strategy, approving transactions and

monitoring performance.

Strategic risks are identified, assessed and managed by the Board, with

support from the Audit Committee, which in turn is supported by the

Risk Committee. Strategic risks are reviewed by the Audit Committee

toensure they are valid and that they represent the key risks associated

with the current strategic direction of the Group. Operational risks

areidentified, assessed and managed by the Risk Committee and

Executive Committee team members, and reported to the Board and

the Audit Committee. These risks cover all areas of the business, such

as finance, operations, investment, development, and corporate risks.

The risk management process commences with rigorous risk

identification sessions incorporating contributions from functional

managers and Executive Committee team members.

The output is reviewed and discussed by the Risk Committee,

supported by members of senior management from across the

business. The Board, supported by the Risk Committee, identifies and

prioritises the top business risks, with a focus on the identification of

key strategic, financial and operational risks. The potential impact and

likelihood of the risks occurring are determined, key risk mitigations are

identified and the current level of risk is assessed against the Board’s

risk appetite. These top business risks form the basis for the principal

risks and uncertainties detailed in the section below.

Principal risks and uncertainties

The principal risks and uncertainties described could have the future

potential to have the most significant effect on Safestore’s strategic objectives.

The key strategic and operational risks are monitored by the Board

andare defined as those which could prevent us from achieving our

business goals. Our current strategic and operational risks and key

mitigating actions are as follows:

Strategic, operational, and emerging risks are

considered at every business leveland are

assessed, discussed, and taken into account

when deciding upon future strategy, approving

transactions, andmonitoring performance

Risk Current mitigation activities Developments since 2021

Strategic risks

The Group develops business plans

based on a wide range of variables.

Incorrect assumptions about the

economic environment, the self

storage market, or changes in the

needs ofcustomers or the activities of

customers may adversely affect

thereturns achieved by the Group,

potentially resulting in loss of

shareholder value or loss of the

Group’s status as the UK’s largest

selfstorage provider.

• The strategy development process draws

on internal and external analysis of the self

storage market, emerging customer trends

and a range of other factors.

• Continuing focus on yield-management with

regular review of demand levels and pricing

ateach individual store.

• Continuing focus on building the Safestore

brand, acquisitions and development projects.

• The portfolio is geographically diversified

withperformance monitoring covering

the personal and business customers

by segments.

• Detailed and comprehensive sensitivity and

scenario modelling taking into consideration

variable assumptions.

• Monitoring of key data points helping to

understand and minimise uncertainty

around the economic environment.

• Robust cost management.

The Group’s strategy is regularly reviewed through the

annual planning and budgeting process, and regular

reforecasts are prepared during the year.

The Group expanded its interests in the Benelux region

acquiring the remaining 80% of the equity owned by Carlyle

Europe Realty in the Joint Venture formed in 2019. The Joint

Venture was set up in 2019 to acquire and develop assets

inthe Netherlands and Belgium in order to leverage

Safestore’s operating platform outside our core markets.

The acquisition of new stores together with new store

openings have been fully integrated in the Group’s

storeportfolio.

The current macro-economic pressures arising from both

the supply chain issues associated with the rebound in

demand post global restrictions and the conflict in Ukraine

as well as the cost of living increases have caused

significant global uncertainty and the impact this will have

on economic growth is unclear. Both pressures have led to

higher inflation which has had a direct impact on consumer

spending that may impact the self storage market.

Therefore, the level of risk is considered to have increased

from the 31 October 2021 assessment.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Principal risks

Risk Current mitigation activities Developments since 2021

Pandemic risk

The Covid-19 outbreak was an

unprecedented global event whose

impacts and duration are now more

widely understood. While the Group

now more clearly understands the

impacts of the pandemic on the

business, we need to be adaptable in

ensuring our business resilience and

maintaining our strong performance

against future pandemics.

• The resilient nature of the Group’s

businesses, our robust balance sheet, and

the market fundamentals that underpin our

businesses inherently provide mitigation

to the Group from pandemic risk.

• Our Group strategic plans and forecasts

provided an additional layer of mitigation

through the Covid-19 crisis.

• The Group continues to monitor and

assessthe potential and realised impacts

of Covid-19.

The Covid-19 pandemic resulted in a significant reduction

inthe economic growth of the UK and Europe in 2020

and2021.

The implications of Covid-19 were thoroughly considered

with respect to the Group’s strategy through the annual

planning and budgeting process.

Pandemic risk will continue to be monitored through the

Group’s Risk framework.

The level of risk is considered to have reduced compared

tothe 31 October 2021 assessment.

Finance risk

Lack of funding resulting in an inability

to meet business plans, satisfy

liabilities or a breach of covenants.

• Funding requirements for business plans

and the timing for commitments are

reviewed regularly as part of the monthly

management accounts.

• The Group manages liquidity in

accordance with Board-approved policies

designed to ensure that the Group has

adequate funds forits ongoing needs.

• The Board regularly monitors financial

covenant ratios and headroom.

• All of the Group’s banking facilities

now run to30 June 2023. The US Private

Placement Notes mature in five, seven,

eight, ten and twelve years.

• New US Private Placement Notes secured

during the year, utilising the Shelf Facility,

with amaturity of seven years (2029).

Since the end of 2021, there have been significant opportunities

to invest in new stores, in both the UK and throughout Europe,

and as a result the Group secured additional US Private

Placement Note funding for €105 million, utilising the Shelf

Facility. The funds were received in April 2022 and were used to

pay down Revolving Credit Facilities (“RCF’s”) utilised to acquire

the remaining 80% of the equity owned by Carlyle Europe Realty.

Further, on 11 November 2022, the Group completed the

refinancing of its RCF’s which were due to expire in June

2023. The previous £250 million Sterling and €70 million

Euro RCF’s have been replaced

with a single multi-currency £400 million facility. In addition,

a further £100 million uncommitted accordion facility is

incorporated in the facility agreement. The facility is for

a four-year term with two one-year extension options

exercisable after the first and second years of the agreement.

The Group’s loan-to-value (“LTV”) ratio has broadly remained

constant during 2022, at 24.4% compared to 24.9% at the

prior financial year end.

Therefore, this risk continues to remain low and broadly

unchanged from the 31 October 2021 assessment.

Treasury risk

Adverse currency or interest rate

movements could see the cost of

debt rise, or impact the Sterling value

of income flows or investments.

• Guidelines are set for our exposure to fixed

and floating interest rates and use of

interest rate swaps to manage this risk.

• Foreign currency denominated assets

are financed by borrowings in the same

currency where appropriate.

• The Group has entered into FX forwards

to reduce the volatility associated with the

translation risk of the Euro.

Euro denominated borrowings continue to provide an effective,

natural hedge against the Euro denominated net assets of

our French and Spanish businesses.

Although the Bank of England base rate has increased,

with93% of the Group’s debt at fixed rates, the Group’s

exposure to interest rate shocks is mitigated.

Although 93% of the Group’s debt is at fixed rates at

31October 2022, removing much of the volatility of interest

rate fluctuations, as we move into 2023 and fund the new

store pipeline from incremental drawings on our Revolving

Credit Facility, we are likely to see modest increases in the

cost of debt. Therefore, this risk has increased from the

31October 2021 assessment.

Principal risks and uncertainties continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Principal risks continued

Risk Current mitigation activities Developments since 2021

Property investment and

development risk

Acquisition and development of

properties that fail to meet performance

expectations, overexposure to

developments within a short timeframe

or the inability to find and open new

stores may have an adverse impact

on the portfolio valuation, resulting in

loss of shareholder value.

Corporate transactions may be at risk of

competition referral or post-transaction

legal or banking formalities.

Building cost inflation makes it difficult

to estimate accurate cost assumptions

when considering new investments

and developments.

• Thorough due diligence is conducted anddetailed

analysis is undertaken prior toBoard approval for

property investment and development.

• Execution of targeted acquisitions anddisposals.

• The Group’s overall exposure to developments is

monitored and controlled, with projects phased

to avoid over-commitment.

• The performance of individual properties

isbenchmarked against target returns and

post-investment reviews are undertaken.

Projects are not pursued when they fail

to meet our rigorous investment criteria, and

post-investment reviews indicate that sound and

appropriate investment decisions have been made.

The capital requirements of development projects

undertaken during the year have been carefully

forecasted and monitored, and we continue to

maintain significant capacity within our financing

arrangements.

We continue to pursue investment and development

opportunities, and consider our recent track record

to have been successful.

With the current economic uncertainty and building

cost inflation, the Board considers that there has

been an increase to this risk since the 31 October

2021 assessment.

Valuation risk

Value of our properties declining as

aresult of external market or internal

management factors could result in

abreach of borrowing covenants.

In the absence of relevant

transactional evidence, valuations can

be inherentlysubjective leading to

adegree of uncertainty.

• Independent valuations are conducted regularly

by experienced, independent, professionally

qualified valuers.

• A diversified portfolio which is let to a large number

ofcustomers helps to mitigate any negative impact

arising from changing conditions in the financial and

property markets.

• Headroom of LTV banking covenants is maintained

and reviewed.

• Current gearing levels provide sizeable headroom

onour portfolio valuation and mitigate the likelihood

ofcovenants being endangered.

The valuation of the Group’s portfolio has

continued to grow during the year, reflecting

bothvaluation gains arising from the increasing

profitability of our portfolio and additions to our

portfolio through corporate acquisitions and the

opening of new development stores.

However, the pressures which have led to higher

inflation which in turn is having a direct impact on

consumer spending may impact the self storage

market. Therefore, the key assumptions that

underpin the investment property valuation are

subject to greater volatility.

This has resulted in the level of risk increasing

with respect to valuation risk compared to the

31 October 2021 assessment.

Occupancy risk

A potential loss of income and

increased vacancy due to falling

demand, oversupply or customer

default, which could also adversely

impact the portfolio valuation.

• Personal and business customers cover a wide

range of segments, sectors and geographic

territories with limited exposure to any

single customer.

• Dedicated support for enquiry capture.

• Weekly monitoring of occupancy levels and

close management of stores.

• Management of pricing to stimulate demand,

whenappropriate.

• Monitoring of reasons for customers vacating

and exit interviews conducted.

• Independent feedback facility for

customerexperience.

• The like-for-like occupancy rate across the portfolio

has continued to grow partly due to flexibility offered

on deals by in-house marketing and the Customer

Support Centre.

The Covid-19 pandemic resulted in a contraction

ineconomic growth. However, over the past year

the economy has recovered and recent like-for-like

occupancy trends have been strong and the newly

opened stores are performing well.

Growth in our store portfolio diversifies the potential

impact of underperformance of an individual store.

With the economic outlook remaining uncertain,

with significant inflationary pressures in the

economy, and an associated impact on the cost

of living, this may lead to pressure on occupancy

in the next year.

Therefore, the risk has increased compared

withthe assessment for the year ended

31October 2021.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Risk Current mitigation activities Developments since 2021

Real estate investment

trust (“REIT”) risk

Failure to comply with the REIT

legislation could expose the Group

to potential tax penalties or loss of

its REIT status.

• Internal monitoring procedures are in place to

ensure that the appropriate rules and legislation

are complied with and this is formally reported to

the Board.

The Group has remained compliant with all REIT

legislation throughout the year.

There has been no significant change to this

risk since the 31 October 2021 assessment.

In addition, we have also reviewed the recent

amendments to the UK REIT rules, taking

effectfrom 1 April 2022, which do not affect

thisassessment.

Catastrophic event

A major catastrophic event could mean

that the Group is unable to carry out

its business for a sustained period or

health and safety issues put customers,

colleagues or property at risk. These

may result in reputational damage,

injury or property damage, or customer

compensation, causing a loss of

market share and/or income.

• Business continuity plans are in place and tested.

• Back-up systems at offsite locations and remote

working capabilities.

• Reviews and assessments are undertaken

periodically for enhancements to supplement

the existing compliant aspects of buildings

and processes.

• Monitoring and review by the Health and

SafetyCommittee.

• Robust operational procedures, including health and

safety policies, and a specific focus on fire prevention

and safety procedures.

• Fire risk assessments in stores.

• Periodic security review of all systems supported

byexternal monitoring and penetration testing.

• Limited retention of customer data.

• Online colleague training modules.

Continuing focus from the Risk Committee,

with particular attention to specific issues.

The level of risk is considered similar to the

31October 2021 assessment.

Regulatory

compliance risk

The regulatory landscape for UK listed

companies is constantly developing

and becoming more demanding,

with new reporting and compliance

requirements arising frequently.

Non-compliance with these regulations

can lead to penalties, fines or

reputational damage.

Changes in tax regimes could impact

tax expenditure.

The Group is also subject to the risk

ofcompulsory purchases of property,

which could result in a loss of income

and impact the portfolio valuation.

• Monitoring and review by the Risk Committee.

• Project-specific steering committees to address

the implementation of new regulatory requirements.

• Liaison with relevant authorities and

tradeassociations.

• Where a store is at risk of compulsory purchase,

contingency plans are developed.

• Legal and professional advice.

• Online training modules.

The framework of tax controls has been reviewed

during the year, ensuring key tax risks are in line

with the Group’s obligations. All regulatory

compliance risks have been monitored during

theyear.

The level of risk is considered similar to the

31October 2021 assessment.

Marketing risk

Our marketing strategy is critical to

thesuccess of the business. This

includes maintaining web leadership

and our relationship with Google.

Alack of effective strategy would

result in loss ofincome and market

share and adversely impact the

portfolio valuation.

• Constant measuring and monitoring of our web

presence and ensuring compliance with rules

andregulations.

• Market-leading website.

• Use of online techniques to drive brandvisibility.

• Our pricing strategy monitors and adapts to

evolving customer behaviour.

We continue to build functional expertise at Group

level in performance marketing, organic and local

searches and analytics.

The Group marketing forum continues to review

performance, market developments and our

ongoing improvement plan.

We have implemented a new value and quality

focused performance marketing strategy.

The level of risk is considered similar to the

31October 2021 assessment.

Principal risks and uncertainties continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Principal risks continued

Risk Current mitigation activities Developments since 2021

IT security/GDPR

Cyber-attacks and data security

breaches are becoming more

prominent with a greater level of

sophistication of attacks. This has

thepotential to result in reputational

damage, fines or customer

compensation, causing a loss

ofmarket share and income.

• Constant monitoring by the IT department and

consultation with specialist advice firms ensure

wehave the most up-to-date security available.

• Twice yearly formal IT security review at Group

AuditCommittee.

• We minimise the retention of customer and colleague

data in accordance with GDPR best practice.

• The policies and procedures are under constant

review and benchmarked against industry best

practice. These policies also include defend, detect

and response policies.

During 2021 and continuing into 2022, the

Group continued to invest in digital security.

Some of the changes include more frequent

penetration testing of internet facing systems,

adding components such as anti-ransomware

as well as the replacement of components such

as firewalls tothe latest technology and

specification.

The risk is not considered to have increased for

theGroup nor is the Group considered to be at

agreater risk than the wider industry; however,

weconsider that digital threats on the whole

areincreasing.

The level of risk is considered similar to the

31October 2021 assessment.

Brand and

Reputational risk

Our reputation, with Safestore’s

growth and the increased awareness

of self storage, including increased

demand driving higher prices, may

potentially attract greater social media

attention and scrutiny.

• Constant involvement by the Retail Service team to

engage with customers and address their concerns.

• Constant training of the store teams to provide a

clear and concise communication strategy to customers.

• Our understanding of and engagement with all our

stakeholders enables early visibility and identification

ofstakeholder dissatisfaction.

The Retail Service function always engages

with customers to resolve any issues or

complaints.

Our Sustainability report on pages 55 to 57 of

ourAnnual Report provides insight into how we

engage with our customers and the community.

The level of risk is considered similar to the

31October 2021 assessment.

Geographical expansion

The Group has invested in expanding

the overseas operations of the

business through both subsidiaries

and the Joint Venture with Carlyle over

the last two years.

Suitable new sites may become more

difficult to find, with new sites failing

toachieve the required occupancy

andtherefore deliver the required

salesand profitability within an

acceptable timeframe.

Integration of smaller acquisitions may

be challenging where the infrastructure

of the acquired business is not of

alevel required by the Group.

• Large portfolio of potential new sites, prioritised

basedon detailed research into areas most likely

tobesuccessful.

• Strong operational knowledge and experience

inintegrating new business.

• We have well documented procedures for the

integration of new acquisitions and a good track

record of recent success.

The level of risk is considered similar to the

31October 2021 assessment.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Risk Current mitigation activities Developments since 2021

Human Resource Risk

Fundamental to the Group’s success

are our people. As such, due to

market competitiveness and cost

ofliving increases we are exposed

toa risk of colleague turnover, and

subsequent loss of key personnel

andknowledge.

• The Group embarked upon its five-year strategic plan

in 2017 and during this period has had an efficient,

high performing and stable management team in

place. Our retention strategy aims to ensure we

achieve long term engagement, through a

combination of motivating factors.

• We continue to consult regularly with our

management team and monitor involuntary turnover.

We maintain adequate succession for our key talent.

• The Board and Remuneration Committee regularly

review colleague feedback provided through surveys,

our workforce advisory panel and CEO town hall

events. These mechanisms enable colleagues to

raisequestions, discuss wider business issues and

provide feedback on subjects including wider

workforce remuneration.

• In early 2021, Safestore received the Investors in

People Platinum Accreditation. This demonstrates

that our colleagues are happy, healthy, safe and

engaged in supporting Safestore to deliver

sustainable businessperformance.

The level of risk is considered similar to the

31October 2021 assessment.

Climate change

related risk

The Group could be exposed to

climate change in the future through

the related transition and physical

risks. Physical risks could affect the

Group’s stores and may result in

higher maintenance, repair and

insurance costs. Failing to transition to

a low carbon economy may cause an

increase in taxation, decrease in

access to loan facilities and

reputational damage.

• The good working order of our stores is of critical

importance to our business model with our standing

commitment to provide long term sustainable real

estate investment.

• Physical climate risk of new developments is

evaluatedas part of the investment appraisal process

for new developments.

• We have a proactive maintenance programme in

place with a regular programme of store inspection,

with our maintenance teams following sustainable

principles and, wherever practicable, using materials

that have recycled content or are from

sustainable sources.

• If we choose to develop a store in a high risk area,

we usually proactively deploy flood

mitigation measures.

• We are committed to building to a minimum standard

ofBREEAM ‘Very Good’ on all of our new

storedevelopments.

• All new store developments are registered with the

Considerate Constructors Scheme, which considers

the public, the workforce and the environment.

As part of our journey to enhance our disclosures

along the recommendations of the TCFD, the

Group is continuing to develop its understanding

of its exposure and vulnerability to climate change

risk and the direct impact on the business. The

Group has identified that the exposure will be

isolated to specific areas of the business, such as

a specific store potentially flooding rather than a

multiple store event.

Further, our Sustainability Committee, with

representation from across all levels of the

business, continues to assess the impact of

climate change related risks and is working with

the Board and its suppliers todevelop an

ambitious plan to reduce carbonemissions.

Our investment appraisal process has been

updated to consider climate change related risks

of new investments and will continue to be

evolved as we continue on the TCFD journey.

As we start to fully understand the exposure to

the Group, as outlined in TCFD statement, we

have a much clearer understanding of the risk.

Therefore, the level of risk is considered less than

the 31 October 2021 assessment and will

continued to be assessed to determine whether

this remains a principal risk throughout the

2022/23 financial year.

Principal risks and uncertainties continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Principal risks continued

Non-financial information statement

We aim to comply with the non-financial reporting requirements contained in Sections 414CA and 414CB of the Companies Act 2006. The below

table, and information it refers to, is intended to help stakeholders understand our position on key non-financial matters.

Reporting requirement Some of our relevant policies Where to read more about our policies

Environmental matters

The Company’s sustainability strategy has as one of its four ‘pillars’

tomitigate the environmental effects of its activities to reduce its

carbon footprint, improve recycling, reduce reliance on packaging,

minimise waste and improve efficiencies on finite natural resources

inall parts of the Company’s operations. How the Company seeks

to implement its sustainability strategy is set out in Our

Environment on pages 58 to 73 of the Sustainability report.

The Company’s approach to environmental matters is overseen by

the Company’s sustainability leadership team.

Employees

Code of conduct (page 82)

Equality, diversity and inclusion policy

(page 50)

Bullying and harassment policy

Disciplinary and grievance policies

Health and safety manual (page 51)

The pivotal role of our colleagues is reported within the Our People

section of the Sustainability report on pages 50 to 53 and within

the Chief Executive’s statement on pages 9 and 10.

Further commentary for individual policies is set out on the pages

as detailed in the previous column and/or on the Company’s

website. These policies are made available to all colleagues within

the Company’s Colleague Handbook, an internal document

available toall colleagues on the Company’s intranet.

The Company’s approach to pay fairness throughout the Group is

set out on pages 98 to 101 of the Directors’ remuneration report.

Human rights

Code of conduct (page 82)

Equality, diversity and inclusion policy

(page 50)

Data privacy policies

Anti-slavery statement

Whistleblowing (‘Speak Out’) policy

(page82)

IT policy

Further commentary for individual policies is set out on the pages

as detailed in the previous column and/or on the Company’s website.

These policies are monitored as part of our risk management

processes, overseen by the Audit Committee.

Social matters

The Company’s approach to social matters is set out in

OurCommunity on pages 55 to 57 of the Sustainability report.

TheCompany’s approach to social matters is set out in the Company’s

Colleague Handbook and Operations Manual, which are internal

documents available to all colleagues on the Company’s intranet.

The Company’s approach to social matters is overseen by the

Company’s sustainability leadership team.

Anti-corruption and

anti-bribery

Anti-corruption and bribery statement

and policy (page 82)

Gifts, tips and hospitality policy

(page 82)

Further commentary for individual policies is set out on the pages

detailed in the previous column.

These policies are monitored as part of our risk management

processes, overseen by the Audit Committee.

Description of principal

risks and impact on

business activity

Risk overview (pages 37 to 42 of the

strategic report)

The Company’s approach to risk management and internal control

isset out in the governance report on page 81.

Description of the

business model

The Company’s market and business model are reported on pages

18 and 19 in the Chief Executive’s review of the strategic report.

Non-financial key

performance indicators

KPIs are summarised in the Chief Executive’s statement and

reported in the financial highlights section of page 2 and within the

trading performance section of the strategic report on pages 19 to

21.

Certain Group policies and internal standards and guidelines are not published externally, but are available to all colleagues on the Company’s

intranet and publicly within the Governance section of the Company’s website.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

The UK Corporate Governance Code requires us to issue a “viability

statement” declaring whether we believe Safestore can continue to

operate and meet its liabilities, taking into account its current position

and principal risks. The overriding aim is to encourage Directors

to focus on the longer term and be more actively involved in risk

management and internal controls. In assessing viability, the Board

considered a number of key factors, including our strategy (seepage8),

our business model (see pages 18 and 19), our risk appetite and

ourprincipal risks and uncertainties (see pages 37 to 42 of the

strategic report).

The Board is required to assess the Company’s viability over a period

greater than twelve months, and in keeping with the way that the

Board views the development of our business over the long term a

period of three years is considered appropriate, and is consistent

with the timeframes incorporated into the Group’s strategic planning

cycle, with the review considering the Group’s cash flows, dividend

cover, REIT compliance, financial covenants and other key financial

performance metrics over the period. Our assessment of viability

therefore continues toalign with this three-year outlook.

In assessing viability, the Directors considered the position presented

in the budget and three-year outlook recently approved by the Board.

In the context of the current environment, four plausible sensitivities

were applied to the plan, including a stress test scenario. These were

based on the potential financial impact of the Group’s principal

risks and uncertainties and the specific risks associated with the

recent pandemic and geopolitical pressures. These scenarios are

differentiated by the impact of demand and enquiry levels, average

rate growth and the level of cost savings, representing the assumption

variations, which can be summarised as follows:

• Base scenario – positive year-on-year enquiries and demand growth

in all countries;

• Upside scenario – representing stronger revenue growth than the

base scenario in the UK and France with some slight cost Savings;

• Downside scenario – which assumes a decline in year-on-year

enquiries and demand in the UK and France; and

• Stress test scenario – representing a reverse stress test to model

what would be required to breach ICR and LTV covenants which

indicated highly improbable changes would be needed before any

issues were toarise.

Since the end of the financial year, the Group has completed the

refinancing of its Revolving Credit Facilities (“RCF’s”) which were

due to expire in June 2023. The previous £250 million Sterling and

€70 million Euro RCF’s have been replaced with a single multi-currency

£400 million facility, with a four-year term with extension options and

an uncommitted accordion facility incorporated in the facility agreement.

Further in April 2022, Safestore extended its borrowing facilities, with

the issuance of the equivalent of €105 million denominated US Private

Placement (“USPP”) Notes.

The impact of the above scenarios and sensitivities has been reviewed

against the Group’s projected cash flow position and financial covenants

over the three-year viability period. Should any of these scenarios occur,

clear mitigating actions are available to ensurethat the Group remains

liquid and financially viable.

Such mitigating actions available include, but are not limited to,

reducing planned capital and marketing spend, pay and recruitment

measures, making technology and operating expenditure cuts and

utilisation of available headroom on existing debt facilities.

Further, the recent pandemic and geopolitical pressures have resulted

in significant pressure on the economic growth for the UK and Europe

in 2022–23. These potential implications have been thoroughly

considered with respect to the Group’s strategy through the annual

planning and budgeting process. They will continue to be monitored

through regular and periodic reforecasts and scenario analysis over the

next twelve months and align with the three-year outlook of this review

during the 2023 financial year.

The Audit Committee reviews the output of the viability assessment

in advance of final evaluation by the Board. The Directors have also

satisfied themselves that they have the evidence necessary to support

the statement in terms of the effectiveness of the internal control

environment in place to mitigate risk.

Having reviewed the current performance, forecasts, debt servicing

requirements, total facilities and risks, the Board has a reasonable

expectation that the Group has adequate resources to continue in

operation, meet its liabilities as they fall due, retain sufficient available

cash across all three years of the assessment period and not breach

any covenant under the debt facilities. The Board therefore has a

reasonable expectation that the Group will remain commercially viable

over the three-year period of assessment.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Viability statement

We set out in the following section our climate-related financial disclosures consistent with all of the TCFD recommendations and recommended

disclosures. By this we mean the four TCFD recommendations and the 11 recommended disclosures set out in Figure 4 of Section C of the

report entitled “Recommendations of the Task Force on Climate-related Financial Disclosures” published in June 2017 by the TCFD.

TCFD recommendation

Included in

FY2022 disclosures? Reference/comment

Governance

a) Describe the Board’s oversight of climate-related risks and opportunities Yes Strategic report page 62

b) Describe management’s role in assessing and managing climate-related

risks and opportunities

Yes Strategic report page 62

Strategy

a) Describe the climate-related risks and opportunities the organisation has

identified over the short, medium, and long term

Yes Strategic report pages 62 to 65

b) Describe the impact of climate-related risks and opportunities on the

organisation’s businesses, strategy, and financial planning

Yes Strategic report pages 62 to 65

c) Describe the resilience of the organisation’s strategy, taking into

consideration different climate-related scenarios, including a 2°C

or lower scenario

Yes Strategic report pages 64 to 65

Risk management

a) Describe the organisation’s processes for identifying and assessing

climate-related risks

Yes Strategic report page 62

b) Describe the organisation’s processes for managing climate-related risks Yes Strategic report pages 37 and 62

c) Describe how processes for identifying, assessing, and managing

climate-related risks are integrated into the organisation’s overall

risk management

Yes Strategic report page 62,

Governancereport pages 81 to 82

Metrics and targets

a) Disclose the metrics used by the organisation to assess climate-related

risks and opportunities in line with its strategy and risk management process

Yes Strategic report page 66

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas

(“GHG”) emissions, and the related risks

Yes Strategic report (GHG reporting)

pages67 to 73

c) Describe the targets used by the organisation to manage climate-related

risks and opportunities and performance againsttargets

Yes Strategic report pages 48 and 66

Compliance with Task Force on Climate-related Financial

Disclosures(“TCFD”)

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

We love

customers

We lead

the way

We have

great people

We dare to

be different

We get it

Our values

Our values, created by our store teams, are the foundation of everything we do

See page 53 for more details

Our people

Provide a great place to work

Our customers

Deliver a great customer

experience and help customers

live and grow sustainably

Our community

Benefit local communities

Our environment

Protect the planet from our

activities; managing risks to our

business from climate change

Our purpose

To add stakeholder value by developing

profitable and sustainable spaces that allow individuals,

businesses, and local communities to thrive

Our sustainability strategy

Our material sustainability issues, as identified by internal and external

stakeholder engagement (with colleagues, investors, customers,

and partners), fall within four areas, which we call the ‘pillars’ of our

sustainability strategy: our people, our customers, our community, and

ourenvironment. Although these ‘pillars’ do not fundamentally change,

weperiodically review our activities to ensure we are focusing clearly

onmaterial areas and are aligned with not only our corporate goals but

also the principles of the UN Global Compact. We track progress against

medium term targets set in 2019 using appropriate key performance

indicators (“KPIs”).

We report in accordance with the European Public Real Estate

Association’s (“EPRA’s”) latest recommendations: EPRA Sustainability

Best Practices Recommendations (“sBPR”), third version September 2017.

These recommendations are also aligned with the latest

Global Reporting Initiative (“GRI”) standards.

Once finalised, these indicators and supplemental information can be

downloaded from the relevant section of our website:

www.safestore.co.uk/corporate/investors/report-and-presentations/.

In recognition of the strides made in our

sustainability disclosures, Safestore has

been given a Silver rating in the 2022 EPRA

Sustainability BPR awards. In addition, the

Global ESG Benchmark for Real Assets (“GRESB”)

has once again awarded Safestore an ‘A’ rating

in its 2022 Public Disclosures assessment and

MSCI has awarded Safestore its second-highest

rating of ‘AA’ for ESG.

Sustainability highlights

proportion of female

applications reached

for the first time

customer satisfaction

in all markets

of 2021 stores powered

by renewable electricity

by 31 October 2022

gas appliances

removed from

UK stores

market-based GHG

emissions

GHG intensity

40%

4.5+

100%

-11%

-12.4%

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability

As a Group, we have continued to align our sustainability priorities

with the United Nations Sustainable Development Goals (“SDGs”)

so that our actions can contribute to a greater collective impact. By

striving to achieve our business goals, we will help solve a large set

of societal challenges ranging from climate change to decent work

and economic growth, and responsible consumption and production.

The SDGs or Global Goals are a call to action for stakeholders

across all nations to unite and address the environmental,

economic and social imbalances that affect the world’s population

and society.

These goals can only be achieved with the support of governments,

businesses and individuals and, as the role businesses must play

becomes clearer, the goals have developed into an increasingly

important tool for assessing the impact of companies on society.

Our stakeholders increasingly expect us to demonstrate how we

are contributing to the SDGs, specifically our investors, our customers

and our current and prospective colleagues. Safestore is now one

of a growing number of global organisations which are committed

to supporting the SDGs and we continue to focus the bulk of our

efforts in the priority areas where we can have meaningful impact.

Our suppliers

We realise that our suppliers play an important role in our business,

and we expect them to act ethically, and share in our commitments to

maintain sustainable business practices using the SDGs as a shared

framework for defining the way we work together (SDG 17: Partnership

for the Goals, which refers to the need for collaboration in pursuit of all

the goals by the year 2030).

Sustainability governance

Sustainability is embedded into the day-to-day responsibilities

at Safestore and, accordingly, we have opted for a governance

structure which reflects this. Two members of the Executive

Management team co-chair a cross-functional sustainability

group consisting of the functional leads responsible for each

area of the business. This group reports on its activities directly

to the Board.

PLC Board

HR Director

Executive sponsor

Marketing Director

Executive sponsor

Sustainability group

Property/

construction

Functional lead

Operations

Functional lead

Customer

marketing

Functional lead

Risk

Functional lead

Given that a significant amount of our environmental impact comes

from our third party suppliers, we have worked hard to ensure a

consistent evaluation of our supply chain in relation to internationally

recognised Environmental, Social, and Governance (“ESG”) standards.

From our uniform providers and point of sale print and fulfilment to our

merchandise partners and more, we have taken steps to co-ordinate,

collaborate and convene with our suppliers and business associates

as we work together towards achieving the SDGs most relevant to

ourbusiness.

Our focus remains on:

• creating decent workplaces and treating our colleagues fairly and

with respect

• conducting business lawfully, ethically, and with integrity

• responsible sourcing, consumption, and production

As we are only as strong as our weakest supplier, our intention is

to continue to demonstrate our commitment, actions and progress

towards the SDGs, and encourage our suppliers to work towards

achieving similar goals.

In 2021, we were proud to have been awarded

the highest rating of five stars by Support

the Goals, a global initiative that rates and

recognises businesses that support the United

Nations Global Goals. This rating is awarded

to businesses which are publicly engaging

suppliers in their efforts towards reaching the

Global Goals.

These are:

• Goal 8: Decent work and economic growth

• Goal 11: Sustainable cities and communities

• Goal 12: Responsible consumption and production

• Goal 13: Climate action

We will also seek to progress towards specific aspects of the

otherSDGs where relevant to our business.

Alignment to the UN Sustainable Development Goals

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Alignment to the UN Sustainable Development Goals continued

Sustainability targets and KPIs

The table below outlines the targets we set ourselves in each of the four ‘pillar’ areas. We are pleased to have met the majority of the 2022

targets set in 2019 and our near term focus now shifts to the 2025 targets. In light of our plan to achieve operational Net Zero according to the

market-based method for Scope 2, and the acquisition of store portfolios in the Benelux, the 2025 emissions targets have been revised this year.

Sustainability

strategy ‘pillar’

Sustainable

businessgoals

Corporate

business

goals

UN Sustainable

Development Goals

Performance

measures (“KPIs”)

Targets

2022 2025

Our

people

The fairest places

towork

A great

place to

work

Percentage of females

applying for roles at

Safestore

40% 42%

A safe working

environment

Engagement score Maintain score >80%

Number of reportable

injuries (RIDDOR)

Zero Zero

Investors in People

n/a

Maintain IIP

Platinum

Our

customers

Deliver a great

customer experience

Storage

provider

ofchoice

Customer satisfaction

score

>4.5 >4.5

Help customers live

and grow sustainably

Our

community

Benefit to local

communities

Help local

economies

thrive

Pro bono value ofspace

occupied bylocal

community groups

Opportunity

led

Opportunity

led

Our

environment

Reduce our waste

Achieve

optimal

operational

efficiency

% of construction waste

diverted from landfill in

the UK

98% 99%

% of operations waste to

landfill

1.75% 1%

Reduce our emissions

% of renewables in

owned store electricity

(Group)

100% 100%

Abs. operational GHG

emissions (tonnes CO

3,917

(LB)

3,400 (LB)

1,014 (MB)

Operational GHG

emissions, MB vs 2021

(25%)* (20%)

Operational GHG

intensity (kg CO

e/sq m

)

4.5 (LB)

3.5 (LB)

0.93 (MB)

Total emissions vs 2013

baseline – LB

(50%) n/a

Emissions intensity vs

2013 – LB

(58%) n/a

Note:

* MB emissions 25% lower for UK, France, and Spain vs 2021.

Key:

Target achieved Target nearly achieved Target not met

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Our people

Target

Engagement score

Maintainscore >80%

Performance 2021/22

90%

We know our people as individuals, and show respect for each other,

enabling everyone to have a voice so that they can bring their full,

unique selves to work.

Our leaders are role models who build high trust. We recognise that

great people management takes time and therefore we have kept

colleague-to-manager ratios low to enable our leaders to invest their

time in our people.

We have built an environment where it’s natural for us to give regular,

honest feedback and to coach in the moment. And formally, we go

beyond mandatory training to promote life-enhancing learning where

everyone can continually evolve.

We are exceptionally proud to have been awarded the prestigious

Investors in People (“IIP”) Platinum accreditation. We also made the

final top ten shortlist for the Platinum Employer of the Year (250+)

category in The Investors in People Awards 2021. We see our

colleagues as an asset, and we understand that it’s our people

whotruly make the difference.

We endeavour to operate employment practices that support SDG 3

(Good health and wellbeing), SDG 8 (Decent work and economic growth)

and SDG 10 (Reduced inequalities) through building, improving, and

maintaining safe and secure working environments and advocating

a diverse and inclusive workforce, free from harassment and victimisation.

Our Wellbeing Strategy and People Principles documents further expand

on how we seek to achieve this.

Safestore

wellbeing

strategy

ent

Gre

ces

Build, improve and

maintain safe and

secure working

environments

Facilitate and

driveinternal

development

Role model a

values-based approach

through our leaders

Advocate and improve

labour rights for all

our colleagues

Promote physical,

mentaland

financial wellbeing

Help our colleagues

to help themselves

Provide

lifelong learning

Advocate a

diverse and

inclusive workforce

More details about the progress we have made in each section of our wellbeing strategy can be found on pages 51 to 53.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our people continued

Equality, diversity, and inclusion

We are committed to providing an inclusive workplace, encouraging,

and welcoming diversity with zero tolerance of harassment and

discrimination. More detail can be found in our People Principles

document (online in the Governance section).

Our strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion

atSafestore.

We are proud of Safestore’s diverse workforce; in our 2021 IIP survey,

89% of colleagues agreed that Safestore values and respects

individual differences. Our new Diversity and Inclusion Strategy is

about embedding and continuing the important work we’ve already

done to enable all our colleagues to feel confident to bring their full

unique selves to work.

Colleague journey. This is about ensuring our culture is friendly and

welcoming to all. We want people to be themselves at work, and

initiatives such as our Values and Behaviours framework, health, and

wellbeing support from day one, and improving the accessibility of our

learning and development opportunities support our culture.

Safestore Diversity and Inclusion Strategy

Purpose

Enable colleagues to feel confident to bring their full unique selves to work

Colleague journey

Provide an inclusive onboarding

experience so colleagues feel

welcome from day one

Integrate inclusion into culture

through our behaviours

and policies

Ensure learning and development

opportunities

are accessible for all

Colleague data

and analytics

Improve data quality

tounderstand our

workforce diversity

Invest in data development

and analytics

Use diversity data to inform

positive action

Positive action

Target recruitment at

under-represented groups

Introduce targeted colleague

support networks and

mentoring schemes

Enable community affinitygroups

Continue awareness-raising

activities and communications

Leadership and

management

Equip and educate leaders to

encourage andwelcome diversity

Actively remove bias

Create a safe space foropen and

inclusivediscussion

Colleague data and analytics. In 2022 we have continued to collect

ethnicity data to better understand the ethnic mix of our workforce.

Todate, over 70% of UK colleagues have volunteered their ethnicity

data. This data indicates that 31% of Safestore colleagues belong to

aBlack, Asian, Mixed or other ethnic group, compared with 18.3%

of people who make up this group in the UK (2021 census data).

We are really proud of the ethnic diversity of our colleagues. We want

to collect more people data to further understand our diverse

communities such as the LGBTQ+ and neurodiverse communities,

toinform even more beneficial and tangible action.

Positive action. This is about recruiting from under-represented

groups, and building campaigns and opportunities for networks

to meet, be listened to and feel supported.

For example, we have improved our female applicant percentage

andrefreshed our careers website to ensure it is representative.

Ourawareness-raising activity on our internal communications

platform, Yapster, such as our ‘Christmas Around the World’ and

International Women’s Day campaigns have generated lots of

energyand engagement.

Leadership and management. This is about how we support our

leaders to encourage and welcome diversity. For example, we have

introduced an updated equality, diversity and inclusion e-Learning

module which was completed by all colleagues in 2022 and is now

part of the induction for all new colleagues joining Safestore.

We want Safestore to be a safe space for discussion and curiosity

toenable colleagues at all levels to continually learn from each other.

Gender equality

The ratio of male to female colleagues at Safestore is outlined in the

table below. Further analysis of our gender pay gap can be found in

the 2021 gender pay gap report on our website. The report also sets

out a range of actions we are taking to help close the gap.

Group gender split at 31 October 2022

Male Female

Board Directors 5 3

Executive Committee and direct reports 34 9

All colleagues (excl. NEDs) 478 267

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Positive environment

Colleague engagement

We believe that engaged colleagues, who feel valued by our business,

are the foundation of our customer-focused culture.

Our ‘Make the Difference’ people forum, launched in 2018, is a formal

workforce advisory panel, which enables frequent opportunities for us

to hear and respond to our colleagues.

Our network of 15 ‘People Champions’ collate questions and feedback

from their peers across the business and put them to members of the

Executive Committee.

Our people forum provides a listening culture, enabling high levels

of consultation. Innovation and ideas now come from every level.

We drive change and continuous improvement in responding to the

feedback we receive, via our internal communication channels and

back through our network of People Champions.

Recently, our People Champions have helped us to continue our

awareness-raising activities and communication through a selection

of a broad range of topics for discussion on Yapster, our internal social

media platform. The aim is to appreciate our diversity, by recognising

and celebrating festivals and events, as well as individuals, and to

create a safe space for sharing and discussion. In addition, we use

Yapster to highlight local successes and recognition between stores

and regions with strong links made to Safestore’s alignment to the SDGs.

Health and safety

Safestore strives to meet and, wherever possible, exceed best

practicethrough:

• regular and robust health and safety checks across our portfolio

• regular independent audits of sites, performed by our external health

and safety consultants on a rolling programme, to ensure that

procedures are followed and that appropriate standards are maintained

• ensuring all colleagues understand their responsibility for health and

safety at Safestore. If a site is highlighted as falling below our health

and safety standards, colleagues on site are urgently required to

make improvements

• comprehensive compulsory health and safety training programmes

for all colleagues

• regular Health and Safety Committee meetings to review issues,

processes, policies, and actions. The Health and Safety Committee

minutes are shared with both our Risk and Audit Committees

• accident reports to identify, prevent, and mitigate against potential

risks managed using our online incident reporting systems. All

reports are reviewed by the Health and Safety Committee to

consider what preventative measures can be implemented

There were no fatal injuries, notices or prosecutions during the year

ended 31 October 2022 in any part of Safestore operations.

Group health and safety statistics

Customer, contractor, and visitor (“CCV”) health and safety

Summary:

• 38 minor injuries were recorded over the past year, none of which

were reportable under RIDDOR*.

• 3 minor injuries were recorded to contractors and 35 to customers.

No injuries were recorded to visitors.

• Injuries were recorded as 29 minor cuts, 7 bumps and bruises and 2

strains mainly relating to customers handling their goods.

Year ended 31 October 2020 2021 2022

Number of stores 155 161 179

Customer, contractor,

andvisitor movements 120,995 206,871 242,559

Number of minor injuries 36 46 38

Number of reportable

injuries(RIDDOR) 0 0 1

RIDDOR per 100,000

CCVmovements 0.0 0.0 0.4

Colleague health and safety

Summary:

• 26 minor injuries were recorded over the past year.

• No accident/incident was reportable under RIDDOR*.

Year ended 31 October 2020 2021 2022

Number of colleagues 658 648 751

Number of minor injuries 21 19 26

Number of reportable injuries

(RIDDOR) 2 1 0

AIIR** per 100,000 colleagues 303 154 0

Notes

* RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences.

** Annual injury incident rate = the number of reportable injuries ÷ average number

ofcolleagues (x100,000).

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Great lifestyle choices

We focus on offering simple, practical wellbeing initiatives, to support

our colleagues to lead healthier and happier lives. We recognise that

it is more important than ever for our colleagues to take care of

themselves and their loved ones.

• Our new cash plan, provided by Medicash, provides colleagues with

everyday reassurance on their health and wellbeing from top to toe,

inside and out, from GP appointments to skin health checks and

physiotherapy to counselling services.

• We have further promoted our Employee Assistance Programme

(“EAP”) and other external support organisations such as Mind and

Mental Health UK, providing our colleagues with expert guidance

and support on everyday matters whenever they need it.

• We continue to work closely with our occupational health provider

including provision of private counselling for colleagues in crisis

requiring immediate support.

• We have increased the voucher limit on our popular Cycle to

Workscheme.

• In addition to our ‘My Wellbeing’ webpage (our internal wellbeing

resource hub), we have also communicated a number of wellbeing

events and offers using our internal platform, Yapster. We believe

good wellbeing communications promote and embed our positive

and supportive working environment.

Health and wellbeing initiatives are

being given more attention and

people are positive about the

commitment to wellbeing.

Matthew Filbee,

IIP Practitioner

Personal growth and education

Learning and development

At Safestore, we have a strong focus on learning and development for

all our colleagues, with a genuine commitment to building a culture

of developing talent.

The overall culture of the

organisation very much projects

the message that learning and

development are valuable.

Matthew Filbee,

IIP Practitioner

We use innovative methods of learning as well as traditional routes,

with lots of support from our managers at all levels. The survey

revealed that 93% of respondents knew how Safestore invests in

learning and development. In 2022, we delivered over 30,000 hours

oftraining.

All learning is evaluated, with skills development and practice gained

through on-the-job supervision, regular coaching sessions, module

sign-off, observation, feedback, and overall evaluation of how effective

a programme of learning has been.

Across the Group, there are plenty of opportunities to put skills and

knowledge into practice, with colleagues being given extra

responsibilities to enable this to happen.

Our leaders understand the importance of succession planning.

Talent management is sophisticated and transparent, with

performance management channelled through our Values and

Behaviours framework, to identify and support high potential

individuals.

In the UK, both our Sales Consultant and Store Manager Development

programmes continue to grow and upskill our colleagues. Everyone

has the opportunity to discuss and agree their learning and

development pathways with their line manager, and this is executed

effectively. In our latest IIP survey, 88% of respondents stated that they

have opportunities to learn at work.

We were also delighted that our Store Manager Development

programme, now in its sixth year, has a record of 18 new participants

for 2022. Funded by the Apprenticeship Levy this programme provides

the opportunity to complete a Level 3 Management and Leadership

apprenticeship, with the additional opportunity to complete an Institute

of Leadership and Management (“ILM”) qualification.

In addition, all nine participants of our Senior Leadership Development

programme (‘LEAD Academy’) successfully completed their Level 5

Management and Leadership apprenticeship; six of those participants

were awarded Distinctions.

Furthermore, we have re-launched our Graduate Programme, with

our first intake commencing in October 2022, providing an opportunity

for newly qualified graduates to build their skill set and experience,

resulting in a career with Safestore.

Our people continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Financial wellbeing

We understand that the current cost of living crisis is having a

significant impact on personal finances. As part of Safestore’s wider

wellbeing strategy, we are committed to doing what we can to ensure

the financial wellbeing of our colleagues.

• During the Covid-19 pandemic, we enhanced Company sick pay

(“CSP”) to alleviate the financial burden. We have taken the decision

to make this enhancement permanent and all colleagues are now

entitled to CSP from day one of employment.

• We applied our annual pay increase to all eligible colleagues a

month early in March.

• We made exceptional payments totalling £1,000 to every colleague:

£500 in December 2021 as a thank you for their contribution during

the pandemic; and a further £500 cost of living payment in October

2022 to ease financial hardship over the winter period.

• We launched a ‘benefits portal’ on our intranet, creating a one-stop-

shop for all colleagues to access information about which benefits

are available to them and how to access them. Following feedback

through our ‘Make the Difference’ people forum, we introduced an

annual uniform allowance for all store colleagues.

Our workplace pension is provided by Scottish Widows, one of the

UK’s leading workplace pension providers. We are pleased to offer

eligible colleagues the opportunity to make their pension contributions

through a salary sacrifice arrangement, recognised as the most

tax-efficient way of making pension contributions.

In August, we opened entry into our 2022 Sharesave scheme, and are

delighted that 48% of our colleagues now share in our success by

being a member of at least one of our Sharesave schemes. This is

further evidence of high levels of colleague engagement across

thebusiness.

Active leaders and engaged teams

Leadership

Our leaders bring out the best in our colleagues, motivating them to

work together to achieve our shared goals and objectives.

We achieve this by keeping colleague-to-manager ratios low, enabling our

leaders to invest time in encouraging and engaging our colleagues, forming

genuine connections with their teams. This is evidenced by the exceptionally

high leadership engagement score of 90%, achieved in our IIP survey.

Our active leaders are energetic and passionate, engaging in honest,

open communication to connect with their colleagues. Our coaching

culture encourages two-way feedback supporting both personal and

professional growth, which is formalised through the setting of clear

goals and expectations, reviewed bi-annually.

Many people said how much they

love working at Safestore and the

pride in the service delivered came

across loud and clear. Everyone

described a friendly, supportive

place to work.

Matthew Filbee,

IIP Practitioner

Values and Behaviours

Our values are authentic, having been created by our colleagues.

Theyare core to the employment life cycle and bring consistency to

our culture. Our leaders have high values alignment enabling us to

make the right decisions and maintain morale at all times, and this

hasbeen proven especially during the pandemic.

We are empowered to do the right thing, not necessarily the easiest.

This enables us to feel comfortable challenging behaviours that are

notin line with our values.

We love customers – we deliver much more than

storage;we provide solutions that exceed our customers’

expectations, and we expect our people to show

appreciation of our customers and their businesses.

We lead the way – we want people who talk with pride

about Safestore, set themselves high standards and

demonstrate passion forwhat they do.

We have great people – everyone has a key role to play

within Safestore and we need people who show respect

foreveryone, no matter their position. Our people drive

theirown performance and are keen to learn from others.

We dare to be different – we want people that adapt to

change and are willing to try new things. Part of daring to

be different involves actively seeking feedback to develop

new and existing skills.

We get it – we want people to be clear on our vision and

goals and, in turn, know what part they play in achieving

them. ‘We get it’ is also about communicating in a clear,

open, and honest way to enable sound decision-making.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our customers

Target

4.5

Maintain 4.5+ satisfaction scores in each market

Performance 2021/22

UK: 4.7 Feefo and 4.8 Trustpilot

France: 4.6 Trustpilot

Spain: 4.7 Google

Belgium: 4.7 Feefo

The Netherlands: 4.9 Trustpilot

Listening to and engaging with our customers

As a Group, we serve many customers across the UK and Europe

through face-to-face communication in store, directly through our

Customer Support Centre, and online via our website, email, and

social media channels, as well as through our LiveChat service.

Byoffering these different channels, our customers can get in touch

with us through their preferred mode of communication.

We believe in providing a great customer service, and responding

positively to our customers’ ever-changing needs, expectations

and behaviours. We are always keen to hear from our customers

tomaintain the high standards of service that we pride ourselves on.

We invest in customer service training, tools, coaching and evaluation

to provide a service that is professional, efficient, and helpful.

Our aim is to exceed our customers’ expectations from initial enquiry

through to move-in, and this is evident through the way our colleagues

handle customer enquiries, claims, and issues. For this reason, we

collect, monitor, review, and respond to customer feedback collected

on our website, third party platforms, and social media, to gauge

customer satisfaction, raise service standards, and manage our

brand reputation online.

We aim to communicate with customers and prospects in a creative

and consistent way across the various communication channels.

We see our social media channels on Facebook, Twitter, Instagram,

and LinkedIn as a ‘shop window’ to our brand that can help to reach

new audiences, both in the UK and Europe. These channels are

also helpful to gauge customer feedback and public sentiment, and

thus we regularly monitor them, responding to any comments and

enquiries. We frequently post content to our social media channels

such as tips and advice for homeowners and businesses, profiles of

charity organisations we support, recruitment opportunities within the

Group, any sustainable or green business initiatives, and links to our

blog pages as well as regular Facebook advertising across the Group.

Delivering a great customer experience

Our core business is to provide well-located, accessible, safe, and

secure storage sites operated by colleagues who are experts in the

self storage business. We endeavour to make each customer

touchpoint as stress-free as possible, for example by:

• the use of SafePay links giving customers the ability to pay by direct

debit or to pay invoices online

• accepting deliveries on our customers’ behalf where delivery drivers

can take items direct to store saving indirectly on customer travel

time, cost, and associated carbon emissions

• offering our customers three types of contracts giving them the

opportunity to choose the one which best suits their needs

Our website – a user-centric re-structure

Our industry-leading multilingual and dynamic website continues

to play an important part of the enquiry mix with enhanced search

engine performance, optimisation for mobile devices, and bespoke

management of rich website content.

As most of our enquiries are generated online, we continue to work

toprovide the customer with an even clearer, more efficient onsite

experience. Consequently, we have acknowledged the importance

of answering user queries with well-positioned and relevant information

as soon as they arrive at the website. This has been at the heart of the

initiative. By using analytical data and re-structuring the page format,

we can see the content most in-demand which has enabled us to help

users locate key information about our stores and the storage offering.

Website technical performance

60% of our web visitors start their journey with a storage related

search on Google so we’ve also focused our rebuild of the 129

Safestore UK pages with specific guidance from Google. For example,

we have technically improved the pages to ensure they are quicker to

load on slower internet and mobile connections. This is following

ongoing recommendations from Google as to improve user experience

and strengthen positions in Google search results. We also aim to

continue making pages simpler to read and easily accessible by users

on the whole range of mobile devices.

The new store pages are in a test phase and will be released to

non-UK markets early in 2023.

Helping our customers to live and grow sustainably

We also remain focused on delivering against our sustainability agenda

by encouraging our customers to make more sustainable choices.

This is in addition to making a positive social and economic contribution

to our communities, and reducing the environmental impact of our

operations. We want to support our customers with products and

solutions that help improve their lives such as:

• digital contracts, offering both convenience and a 16% reduction

in the number of pages printed this year versus last (equal to a

reduction of 528,236 pages or over 1,000 reams of paper)

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

• Refill, a scheme available in 122 Safestore stores across the UK

offering free tap water to make it easy for the public to refill reusable

water bottles instead of buying new plastic ones

• provision of sustainably packaged merchandise and eco-friendly

box products

• cardboard recycling for some customers

Customer reviews

We have retained Feefo, an independent review and insight platform,

to collect real-time and 100% genuine feedback from our customers.

Our stores in the UK receive regular feedback allowing customers to

view reviews and ratings. In 2022, Safestore UK achieved a customer

service rating of 4.7 with 94% rating their experience as ‘Excellent’

or‘Good’.

Safestore UK also won the Feefo Platinum Trusted Service award for

the fourth year running – an award that is given to businesses that have

achieved Gold standard for three consecutive years. This independent

mark of excellence recognises businesses for delivering exceptional

experiences, as rated by real customers. It is a highly valued award

and as all reviews are verified as genuine, the accreditation is a true

reflection of Safestore’s commitment to delivering the best service

possible.

In addition to using Feefo, our customers are able to leave reviews

onanumber of other platforms, including Google and Trustpilot. As

a result, wherever customers look for trust and reputational signals

about Safestore, they will see an impartial view of our excellent

customer satisfaction.

Trustpilot is a well-recognised and authoritative third party review

platform and this year, Safestore has maintained a TrustScore of

4.8 out of 5 in the UK from 2,349 reviews, illustrating our experience

in delivering a high level of customer service.

Une Pièce en Plus also continues to use Trustpilot to obtain

independent customer reviews. During the year, Une Pièce en Plus

maintained a TrustScore service rating of 4.6 with 90% of customers

rating their service experience as ‘Excellent’ or ‘Great’. Additionally, in

Spain, OhMyBox! achieved a 4.7 out of 5 rating for customer feedback

collected from Google Reviews. In Belgium, our customer service was

rated 4.7 out of 5 on Feefo, whilst we achieved a high scoring 4.9 out

of 5 on Trustpilot in the Netherlands.

We are pleased that our colleagues across all markets continue to be

recognised for their hard work in delivering a consistently high level

of customer service.

Our community

Target

Provision of free/discounted space

andadditional support to high impact

local community groups

Opportunity led

Performance 2021/22

18,903 sq ft provided

£727,356 worth

Safestore is committed to making a positive contribution within the

local communities around our stores. We are keen to deliver long term

benefits to society and the local economy consistent with our alignment

with SDG 11 (Sustainable cities and communities). Moreover, we are

committed to being a brand that our current and prospective colleagues

are proud to work for as well as one that our customers can trust.

We continue to do this by:

• developing brownfield sites

• actively engaging with local communities when we establish a new store

• identifying and implementing greener approaches in the way we

build and operate our stores

• helping charities and communities to make better use of limited space

• creating and sustaining local employment opportunities directly and

indirectly through the many small and medium-sized enterprises

which use our space

We aim to create long-standing relationships with charities and

organisations that drive positive change within our local communities.

We know that we can build trust by operating responsibly and partnering

with local and national charities which means that we can support

causes that are important to our colleagues, customers and communities.

This enables us to address issues such as rising homelessness, enhancing

social mobility and creating opportunities for people living and working

in the local area.

In 127 stores across the UK we continue to:

• provide fundraising support to existing and new local

charity partners

• offer free or discounted storage space to local communities through

our ‘charity room in every store’ scheme

• actively seek out practical and creative solutions by working with

and supporting a number of charitable causes

• leverage social media and our blog platform to promote our charity

partners and raise awareness of their cause

During the year, the space occupied by local charities in 222 units across

103 stores was 18,903 sq ft and worth £727,356 (FY2021: £636,945).

Ouraspiration is to have at least one charity room in every store.

We regularly monitor the free and discounted space occupied by

charities, ensuring that the partnerships are running smoothly. In

addition, we encourage our colleagues to maintain relationships

with the charities we support and we continually review the scheme

to ensure that it is beneficial for all involved.

OVERVIEW

STRATEGIC REPORT

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GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our community continued

HandsOn London

For the eleventh year in a row, Safestore UK teamed up with the

WrapUp London campaign to support their annual coat drive to help

those in need during the winter of 2021.

More than 23,700 coats were collected during the campaign, which

began in early November and ran through December. Coats were

distributed to the homeless, refugee families, the elderly, those fleeing

domestic violence, and others living in crisis through a network of over

100 London charities and community groups.

Several Safestore UK centres were used as local drop-off points for

the public due to ongoing Covid-19 restrictions at the time. Our colleagues

also offered their support by marketing the campaign via social media,

donating their own coats, and offering extra storage space to facilitate

the sorting, distribution and packing of the coat donations.

Since the campaign was launched in 2010, volunteers have collected,

sorted, and distributed a total of 197,245 winter coats which has made

a real positive difference in the lives of the city’s most vulnerable people.

Over the years, and in partnership with WrapUp London, Human

Appeal and Rotary Club International, the campaign has extended

outside of London to 18 other collections in major towns and cities

across the UK including Glasgow, Manchester, Birmingham, Bath,

Bristol, Leicester, and Cardiff.

This year, Safestore’s involvement included:

• providing storage space across 15 stores in London, six stores in

Greater Manchester, two in Birmingham, and one each in Bristol,

Glasgow, Leicester, and Bath

• provision of 5,908 sq ft of storage space enabling 913 campaign

volunteers to spend 3,924 hours sorting and packing up coats

for distribution whilst maintaining social distancing

• the stores acting as drop-off points beyond the campaign period

and receiving numerous donations from other businesses,

community organisations and the general public

• using our internal and external communications platforms to raise

awareness of the WrapUp London cause and inspiring our colleagues

to get involved locally

Jon Meech, CEO, HandsOn London, said:

With the country lurching from one crisis to the next, our work with the poor,

needyandvulnerable has never been more critical. From people losing their jobs

followingtheCovid-19 pandemic or becoming homeless, to those being forced

tofleedomestic abuse or war-torn countries, the desperate need for warm coats

andjacketsfor all ageskeeps growing.

Now at over ten years old, WrapUp London has

become one of the largest winter volunteering

campaigns in the city. Whilst its tough that this is still

required after all this time, it’s been amazing to see

just what can be achieved when people are willing to

volunteer their timeand efforts. Sadly, the number of

people living inchallenging circumstances in the city

isrising, and now more than ever as we face a cost of

living crisis, donations from the public are required to

help those inneed.

We, alongside our partners Human Appeal and Rotary Club

International, are eternally grateful to Safestore for the donation

of storage space for the WrapUp campaign now held nationwide.

This has meant that coat collections can take place across

multiple locations in the UK, and our volunteers also have the

space to sort and package up the donations received so we

canensure they get to the right place. Safestore’s support has

enabled the collection and distribution of over 197,000 warm

coats to date. It’s been great to work with Safestore and we look

forward to continuing our partnership for years to come.”

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STRATEGIC REPORT

Sustainability continued

Local charity support

Making a difference to the communities within which we operate,

through partnerships with charities and not-for-profit organisations,

isan integral part of our sustainability strategy. These partnerships

area source of pride for our store colleagues and drive ongoing

engagement with our purpose. In order to achieve this, we provide

financial support to local and national charities, and encourage our

colleagues to get involved in fundraising and volunteering.

Our Head Office colleagues were able to collate boxes of groceries

and treats at Christmas time which were donated to a local foodbank

during a lockdown period. We believe it is important for our colleagues

to recognise how our activities can have an impact on those around us

and it is our hope that any volunteering and fundraising opportunities

would inspire and encourage them to get involved and provide

hands-on help where it matters.

The provision of free and discounted storage space has helped our

charity partners provide immediate support to people facing challenges

in our local communities. These include charities supporting the homeless,

families struggling with food poverty, and organisations offering mental

health services. We are continuing to work collaboratively with our

colleagues in store locally as we support our charity partners in helping

the communities in the areas within which we operate.

Streets Kitchen is a UK-based grassroots organisation working to

support the homeless community withfood outreach programmes,

distributing clothing to those in need, and connecting those who want

to help with those who need help. Safestore currently provide Streets

Kitchen with free storage space enabling

the charity, which is run andorganised by

volunteers, to continue its invaluable work

in the London area.

Safestore holds a charitable fund with

Quartet Community Foundation, dedicated

to supporting local organisations that help

people in need in Bristol, Bath and North East Somerset, North

Somerset and South Gloucestershire. Between April 2021 and March

2022 Quartet awarded over £4.8 million in grants to 888 local charitable

organisations, with a third of the funding spent on improving people’s

mental health and wellbeing, and a quarter on increasing people’s

access to vital services.

A key part of the work last year, in the aftermath of the pandemic, has

been to strengthen the voluntary sector organisations which have played

a crucial role in supporting the most vulnerable in our communities.

Gem Porter, Founder of Streets Kitchen, said:

The team at Streets Kitchen is grateful to

Safestore for supplying much needed free

storage space. The space means that we

can continue to take in donations from our

supporters allowing us to better care for

those in need in the local area.

The last few years have been challenging, particularly

for those living on the streets, and our services are

needed more than ever as we head towards a cost of

living crisis. This free space means that we can divert

the funds we would have spent on storage to be used

in other areas which make the most difference to the

vulnerable people we serve.”

Construction and the community

We strive to minimise any negative impact of our business operations

on our local communities as well as on our environment. We register

allour new store developments with the Considerate Constructors

Scheme, and we engage with our immediate neighbours on all

projects by sending out regular newsletters about what we are doing

or if we have any noisy work planned that may create a nuisance.

When we tender for various construction projects, we always look

togive local companies the opportunity to tender for the various

construction packages.

In the summer of 2022, Safestore joined forces with construction

partner UC Build to sponsor the Great Merton Mencap Art Competition,

an accessible competition for children, young people, and adults with a

learning disability. After a public exhibition, the winner’s artwork in each

category was printed onto greetings cards and sold to the public to

raise funds for Merton Mencap.

In the run up to our new Morden store opening, we established the

location as a drop-off point for members of the public to drop off

groceries and other essentials for a local foodbank providing

emergency food and support to people in crisis.

It is our ongoing commitment to ensure that we act responsibly and

ethically wherever we construct our storage sites across all the

markets in which we operate.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our environment

Safe, sustainable construction

Safestore is committed to ensuring our buildings are constructed

responsibly and their ongoing operation has a minimal impact on local

communities and the environment. This is how we can make a meaningful

contribution towards achieving SDG 12 (Responsible consumption and

production) and SDG 13 (Climate action).

• Our construction teams in the UK and across Europe follow sustainable

construction principles and, wherever practicable, we use materials

that have recycled content or are from sustainable sources.

• We monitor the waste and energy usage on every site and introduce

efficiencies identified into future building projects.

• We design our stores to provide a safe, secure home for our

customers’ possessions and we build them with consideration given

to our people, our customers, our communities, our investors, and

the environment.

• 50% of our last twelve new store openings have been conversions

of existing buildings. Our Bow store, which opened in December

2021, was also a converted building and our new store in Wigan

will also be a conversion.

Building Research Establishment Environmental Assessment

Methodology (“BREEAM”)

BREEAM certification is a local planning requirement for some of our

new stores. The methodology assesses impact and opportunity for

enhancing the environmental aspects of design and construction.

The certification includes a review of new store energy, sustainable building

materials, water efficiency, waste recycling and ecology. The review also

includes social aspects of the building life including resource management,

health, wellbeing, modes of transport and pollution reduction.

Regardless of whether a site is BREEAM certified, we are committed

to build to a minimum standard of BREEAM ‘Very Good’ on all of our

new store developments.

Target

100%

UK owned stores powered by 100% renewable electricity

Reduce

UK store waste to landfill by 50% by 2025 vs 2016/17 level

Improve

construction waste diversion from landfill to 98%

Reduce

carbon emissions by 50% of 2012/13 baseline by 2022

(2018storeportfolio)

Performance 2021/22

100%

Completed

1.7%

On track – we have achieved 100% diversion from

landfillforUK operational waste since May 2022

98.5%

On track – 98.5% diversion of construction waste

fromlandfill

54%

On track – total emissions 54% below baseline

despite50% portfolio growth; intensity 70% below

In this section, we explain how we are reducing our impact on the

planet through ongoing improvements in construction standards and

our store operations. We also include our Task Force on Climate-related

Financial Disclosures (“TCFD”) through which we seek to understand

and manage the potential risks (and opportunities) to our business

associated from a changing environment.

Our net zero commitment

We are pleased to share our commitment to become an operationally net

zero Group by 2035. This commitment covers Scope 1 and 2 emissions

plus Scope 3 emissions, which relate to ongoing operations (water,

waste, electricity, transmission and distribution, and business travel).

We aim to achieve this through a combination of consumption reduction

initiatives as outlined later in this section such as phasing out of gas heating

in the UK portfolio, and ensuring all energy consumed is self-generated

(where viable) or purchased from certified renewable sources.

We also intend to work with our construction partners to understand

the baseline of embodied carbon in our new developments and explore

ways of reducing this where viable. Our sustainable construction

standards (see below) already seek to maximise the use of recycled

material and minimise waste whilst building to Building Research

Establishment Environmental Assessment Methodology (“BREEAM”)

‘Very Good’ standards. Based on research by the London Energy

Transformation Initiative (“LETI”) redevelopment projects have an

embodied carbon footprint of approximately 50% of new-build

developments. As such, the Group’s flexible model is likely to generate

less embodied carbon than operators which develop new build

structures exclusively.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Construction material: recycled content

Typically, the construction of one of our stores may include the following:

Building material % of build cost % recycled content

Steel (main frame) 4%–5% Minimum 56%

Concrete 3%–4% 29%–37%

Cladding (walls and roof) 7%–9% 3% but Kingspan target

improvement using

recycled bottles by 2030

Particle board

(mezzanine floors)

2% 85%

Brick and block walls 3%–5% 9%–55%

Glazing 2% Glass 25%, aluminium

frames 60%

Hardcore (piling mat) 1% 100%

Construction waste and recycling

We carefully monitor our new store construction waste and ensure

we separate waste for recycling where possible.

In the UK, we are already diverting 98.5% of our construction waste

away from landfill, ahead of our target of 2025. Across Europe, in

Holland and Spain, we aim to meet and exceed legislative targets.

Across our new store projects this year, we are committed to recycling

or recovering 100% of all soft and hard plastics. We continue to work

with our suppliers to minimise plastic packaging arriving on site and

to cut its usage over the coming years. We aim to remove all such

products from our sites by 2030.

Considerate Constructors Scheme

In the UK construction sites, companies and suppliers voluntarily

to abide by the Code of Considerate Practice, designed to encourage

best practice beyond statutory requirements.

The scheme’s purview is any area of construction activity that may

have a direct or indirect impact on the image of the industry. The main

areas of concern fall into three categories: the public, the workforce,

and the environment.

We register all our new UK store developments with the CCS setting a

target score of 36 points for both the shell construction and fitting out

of the facility with our construction management partners.

Our new store in Morden scored an average of 42 out of 45 over the

course of its two visits putting it in the top bracket of scoring. The

inspector highlighted all areas of the inspections as ‘Excellent’ which

highlights the exceptional effort and commitment that our construction

team makes in raising standards of our new store developments.

Construction health and safety

Our health and safety record is excellent. We register all of our new

store schemes with the CCS and we are constantly challenging our

colleagues to exceed minimum standards. Safestore has a robust

health and safety policy, and we have very low incident levels

compared with our peers. This year, the number of reportable

incidents on our construction sites was zero.

Consultation process

We build our stores with our key stakeholders in mind. As part of the

town planning process, we consult widely amongst the community

and those most likely to be affected by any development.

2021/22 highlights

REGO

All electricity used in UK owned stores is

renewable and backed by REGO certification

21.6%

reduction of our year-on-year UK operational

waste production

UK stores now have gas use removed, reducing

overall usage year-on-year by 37%

100%

of our UK operational waste has been

divertedfrom landfill since May 2022

plug-in hybrid electric cars have been purchased to

replace one diesel and two petrol vehicles this year

Safestore construction standards

We have a long-standing commitment to providing both a long term

sustainable investment and a pleasant and safe environment for our

customers and colleagues.

Our stores are built or converted to achieve similarly high standards;

however, the configuration of an individual store may vary.

Safestore commitments from 2019/20 onwards are:

Best practice – internal/

external expectation Safestore commitment Applicability

BREEAM Equivalent to

‘Very Good’

Across all new

build stores

BREEAM Very Good Where part of

local planning

Sustainable

drainage systems

Included Across all new

build stores

Solar photovoltaic Roof-mounted

photovoltaic

Where part of

local planning

Considerate

Constructors Scheme

Score 36 or higher All new stores

Ecology Protect existing and

improve biodiversity

Across all new

buildstores

Energy Efficient LED lighting with

built-in motion sensors

Across all existing

and new stores

Security Operate safe and

secure facility

Across all existing

and new stores

Energy Performance

Certificate

Rated B or higher All new stores

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safe, sustainable operations

Merchandise

Our 100% recycled and recyclable boxes are available across the UK,

Belgium, the Netherlands, and Spain. We continue to offer our ‘box for

life promise’, ensuring our boxes can be recycled in a responsible way.

The use of fully recycled papers across our range, including boxes, has

resulted in the equivalent of 624 trees being savedfrom felling this year.

In addition, Safestore is committed to ensuring our merchandise

packaging contains no single-use or non-biodegradable plastics.

Working with our suppliers we endeavour to minimise the carbon footprint

of deliveries with items despatched from local depots and distribution

centres, including one in the Netherlands for European distribution.

Uniform

Our uniform supplier processes are accredited by the International

their factories. In addition, their processes are compliant with the

Ethical Trading Initiative (“ETI”).

Electricity

We continue to make progress towards our environmental targets

through efficiency initiatives and transitions to renewable electricity

across the portfolio.

We are contracted to the supply of REGO certified renewable energy in

the UK until the end of next year and committed to continuing thereafter.

The electricity for our UK owned portfolio is supplied by multiple

renewable sources. The two largest contributors are Kilbraur Wind

Farm and Cullisse Wind Farm which are both located in Scotland.

Like-for-like usage (UK)

Last year This year % change

Electricity (MWh) 11,063 11,943 8%

We have seen an incremental increase in electricity usage as our

heating solutions are changed from gas to high efficiency electric

solutions. Following the removal of coronavirus restrictions, we

reinstated the use of electric hand dryers in our stores. We continue

tomonitor advances in technology and any viable solutions for the

future to reduce our electricity usage.

Voltage optimisation

Voltage optimisation is a transformer-based technology which optimises

incoming supply from the national grid to match the voltage required by

equipment at an organisation’s premises. Optimising voltage reduces

commercial energy use and costs as well as lowering carbon emissions.

During September 2022, we installed voltage optimisation at our largest

location, the Battersea Park store and Business Centre. The return on

investment for Battersea will be calculated after twelve months, with

a predicted decrease in electricity demand and a more stable supply

to the critical infrastructure at the site. We also plan to install this at

our Liverpool facility, which also features a storage centre co-located

with a business centre.

Gas

In 2020 we committed to eliminating gas usage by 2030 from our

UKstores; this was done by installing high output low energy electric

heaters, which are more efficient than water radiators with timed

starting, reducing consumption and demand on electricity.

At the end of October 2022, we eliminated gas usage in 27 stores.

Wewill work towards our 2030 target by removing gas in at least

anadditional five stores per year as laid out in our net zero plan.

The benefits of removing gas from our stores are wide ranging

andinclude:

• a reduction in the CO

output attributed to Safestore

• lower maintenance costs as electric heating systems are

morereliable

• no requirement for carbon monoxide testing

• protection from the inevitable material price rises with the upcoming

ban on gas boilers in new homes in 2025

This has resulted in a year-on-year reduction in total gas usage in the

UK by 37%.

Like-for-like usage (UK)

Last year This year % change

Gas (MWh) 3,649 2,300 (37%)

Our environment continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Water

Our stores consume very low volumes of water, and we strive to

furtherminimise our consumption of water wherever possible through

the installation of efficiency schemes such as flow rate restrictors

andaerators.

Like-for-like usage (UK)

Last year This year % change

Water (cubic metres) 35,963 41,570 15.6%

Whilst we have registered an increase in water consumption on a

like-for-like basis, this can be attributed to a leak on the incoming

water supply pipe at our Winchester site. Safestore carried out urgent

remedial works once this was established; the leak was responsible

for c.6,429m

of the above ‘usage’. Without this leak, Safestore would

have seen an overall reduction in water usage.

Operational waste

We changed our waste service partner in mid-April 2022 following

areview of our waste production and a subsequent tender exercise

inthe UK. With our new supplier, we have implemented scheduled

services ensuring 100% diversion from landfill for all operational

waste,resulting in:

• overall reduction in total waste of 21.6% year-on-year 278.72tonnes

• full year average of 96.59% diversion from landfill with 100%

achieved since the start of May 2022

We will continue to review the scale and impact of operational waste

in the UK and other territories, working to minimise the footprint of

Safestore’s operational waste disposal.

Like-for-like usage (UK)

Last year This year % change

Waste to landfill (tonnes) 43 37 14.0%

As our new supplier is able to support us in maximising diversion from

landfill, we expect to achieve zero operational waste to landfill from

next year in the UK with options for other territories under review.

Energy Savings Opportunity Scheme (“ESOS”) Phase 2

Safestore UK remains 100% compliant following the ESOS

assessment in 2019 and is working towards completing Phase 3

duein 2023.

Minimum Energy Efficiency Standards (“MEES”)

The Energy Efficiency (Private Rented Property) (England and Wales)

Regulations 2015 prohibit landlords from letting a property with an

EPC rating of below E unless an exemption applies. This is relevant

toour UK locations with lettable offices.

The prohibition has applied to new tenancies for residential properties

since 1 April 2020 and will apply to commercial properties from

1April2023. This will be extended to landlords continuing to let properties

that fall below the required EPC rating. It is currently unlawful for landlords

to grant a new tenancy of commercial property with an EPC rating of

‘F’ or ‘G’. This applies to both new leases and renewals (unless an

exemption applies, and the landlord has registered that exemption).

MEES does not apply to lettings of six months or less, or to lettings

of99 years or more. From April 2027, the minimum standard will rise

toa ‘C’ rating as an interim step to a minimum standard of ‘B’ from

1April 2030.

Safestore identified 38 locations (storage centres which include lettable

offices) where we would have the requirement to have a MEES energy

performance survey conducted.

Since 2021/22, these stores have been surveyed by external independent

assessors and the findings are that the majority are already compliant

with the 2027 requirements of a ‘C’ rating. Just seven properties were

identified as needing improvements to meet the 2027 standard, and

we are confident that this can be achieved with modest capital investment.

The readiness of the portfolio for the 2027 standard is a consequence

of the work undertaken to date in the form of LED lighting upgrades,

window and insulation enhancements, and the recent drive to install

high efficiency electric heating.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our environment continued

Task Force on Climate-related Financial

Disclosures (“TCFD”)

We are committed to implementing the relevant recommendations of

the TCFD, providing our stakeholders and investors with insight into

the key climate-related risks and opportunities that are relevant to

our business, and how these are identified and managed. We report

against the eleven recommendations of the TCFD in this year’s disclosures.

Governance

Our Chief Executive has overall responsibility for climate-related risks

and opportunities. Day-to-day management of climate-related issues

is carried out by our Sustainability Group and is co-chaired by two

members of the Executive Management team (see sustainability

governance section). The Group meets quarterly and is the forum

fordetermining our sustainability strategy, reviewing performance,

identifying emerging sustainability issues, and determining their

materiality for reporting and escalation via the Group risk

managementprocess.

The Board has oversight of climate-related risk via the Group risk

management process. The Board takes climate issues into consideration

during the investment appraisal process where it scrutinises major

investments including acquisition, development and refurbishment

plans which may include climate-related aspects of design. Ongoing

risk identification and management are through the relevant functional

teams, for example through proposed or actual response to changes

in regulation such as the Minimum Energy Efficiency Standards

(“MEES”) in the UK.

Our commitment to address climate-related risks is embedded across

the business, through a carbon intensity KPI. The performance against

this KPI is linked to executive remuneration, aiming to incentivise

progress against carbon emissions reduction targets. The Board

reviews progress on carbon reduction alongside other strategic initiatives

annually as part of the annual targets and remuneration cycle.

Risk management

The Sustainability Group is responsible for identifying general

climate-related risks that are managed by the Board via our corporate

risk management process (see the Audit Committee report for details

of our approach to risk management). In addition, the Property function

is responsible for identifying risks specific to new development projects

as part of the investment appraisal process. The Sustainability Group

has conducted workshops incorporating inputs from internal and

external experts and climate model data to explore the relevance and

potential financial impact of the six risk themes identified in the TCFD

framework over the short (to 2030), medium (to 2050), and long

(beyond 2050) term.

These themes remain under review, particularly the physical risks to

the Group portfolio as we expand into new markets, climate models

evolve, and governments and municipal authorities develop their own

mitigation strategies.

The completed climate-related risk register is reviewed and approved

by the Audit Committee during the financial year such that the significance

of climate-related risks is considered in relation to risks identified in the

standard risk management process. This ensures the management of

climate-related risks is integrated into the Group’s overall risk management

framework. The climate-related register is reviewed annually to incorporate

ongoing refinement and quantification of risks and to ensure the register

reflects any material changes in the operating environment and business

strategy. Once identified, further details related to each key risk and

opportunity, such as a quantification of the financial impact, the

appropriate strategic response and cost of response and the variance

of key risks in relation to climate-related scenarios, are developed where

possible. These details help to determine the materiality of each risk

and, alongside the impact assessment outlined above, this allows

the Group to prioritise resources in managing the most material

climate-related impacts, determine the best management response

or highlight areas requiring further investigation.

An example of day-to-day management of risks would be the incorporation

of mitigations for high exposure sites into construction designs before

submission for planning approval.

Strategy

Our business is exposed to both risk and opportunity from climate

change primarily as a consequence of owning and operating real

estate assets in the UK and Western Europe. We seek to understand

and mitigate the physical and financial risks that could be material to

the business. Our analysis currently focuses on the UK which accounts

for most of the Group property portfolio by value and floor area. These

findings can likely be generalised for Northern European markets which

will experience similar physical consequences.

Climate-related risks and opportunities are assessed over multiple

time horizons because we expect that transitional risks are likely to

be ‘front-loaded’ as the international community attempts to meet the

goal of keeping warming to 1.5 degrees Celsius or below. Physical

risks to our assets are likely to increase over time, particularly if the

global economy does not decarbonise at the rate required to keep

warming below the target level. Accordingly, we assess climate-related

risks and opportunities over the short (to 2030), medium (to 2050) and

long (beyond 2050) term. Risks were deemed to be low impact where

the potential annual EBITDA impact is estimated to be below £100k,

and high impact where either the potential EBITDA impact is greater

than £150k, or a balance sheet (valuation) impact would exceed

£20million (1% of property valuation).

The assessment of resilience of the business, specifically the asset

portfolio, was guided by a range of scenarios published by external

agencies, such as the UK Met Office UKCP18, and looked at both

physical and transitional risks under two climate warming scenarios:

one within 1.5 to 2.0 degrees Celsius (RCP 2.6); and one up to

4.0degrees Celsius (RCP 8.5).

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Risk type Description Potential impact Timeframe

Physical risks

Chronic Physical disruption as a result of longer term shifts in climate patterns

(e.g. sustained higher temperatures or rainfall) that may cause sea level

rise or chronic heat waves

Low Medium–long

Acute Primarily flooding risks (Northern Europe markets) triggered by changes in frequency of

extreme rainfall events (based on mm/day thresholds) which are projected to increase

in all warming scenarios, especially in summer and late autumn. Costs that may be

incurred for the few stores exposed include mitigation capex, operational disruption,

physical repairs, clean-up, insurance premia increases, and reduced customer

demand as a result of reputational damage

Medium Medium–long

Transition risks

Policy and legal

Regulation relating to

stricter environmental

standards

Increased stringency of building and planning requirements in support of national

net zero targets. Local authorities will seek to use planning systems to deliver progress

against climate goals which will impact on build specification and associated costs.

MEES standards also increasing for commercial lettings (office locations only) which

will drive upgrade expenditure

Medium Short

Climate change litigation Claims brought by stakeholders (e.g. investors, public interest organisations)

perhaps due to failure to mitigate impacts of climate change, failure to adapt, or

the insufficiency of disclosure around material financial risks

Low Medium

Reporting obligations Additional reporting burden on carbon emissions, including Scope 3 Low Short

Technology

Electric vehicles To deliver net zero targets, electric vehicle use will increase and drive demand for

charging point infrastructure for customers and colleagues. May be mandated by

some local authorities as part of planning process. This will impact capital budgets

for new builds and retrofits. However, this could also be a revenue opportunity in

high traffic locations with an appropriate commercial arrangement

Low Short

Market

Valuation of properties with

lower efficiency rating

Risk of valuation impairment of assets with low efficiency ratings. Only heated

areas of storage facilities are rated – these can usually be cost-effectively improved

Low Medium

Supply chain resilience/

cost of materials

Risk to development costs due to demand versus supply of key materials such as

insulation and cost of inputs which may incur carbon premium (steel and cement)

Medium Short–medium

Cost and availability

ofcapital

Risk of downgrading/cost premium as ESG considerations are incorporated into

credit ratings and other lender/investor screening

Low Short

Reputation

Stakeholder risk Increasing public awareness of and appetite to tackle climate change could

create reputational risk if there is failure to reduce operational and embodied

carbon. This could manifest in delays to planning processes

Low Short–medium

Employee risk As colleagues become increasingly engaged with climate change issues,

perceived failure to make progress on decarbonisation could impact talent

recruitment and retention

Low Short–medium

We expect some physical climate-related risks to have an impact on

our business. Specifically, the impact of more frequent intense precipitation

events is deemed as relevant in the medium to long term. We also

expect the transition to a low carbon economy poses some limited

financial risks in the short term as we respond to changes in regulation

and incur costs associated with decarbonising our building development

and operations. However, there may also be opportunities that arise

from the transition as well as the physical impacts of extreme weather.

Regardless of the scenario we believe the Group and its assets have

limited exposure and vulnerability to climate-related risk and accordingly

there are limited implications for its strategy and financial plans in its

current markets. The Group will therefore continue to grow its portfolio,

assessing each investment for climate risk in addition to financial

considerations and making necessary physical and financial allowances

for mitigations where appropriate as it already does today. The Group

will continue to work with local authorities and its development partners

to ensure any new buildings and conversions are built to a high operating

efficiency standard that meets current and likely future regulations and

supports the Group’s effort to achieve net zero emissions from its

operations.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our environment continued

Physical risks

The primary physical risk to our business relates to the increasing

likelihood of extreme weather events (particularly intense precipitation

and flooding). Based on current data, our insurer’s flood assessment

at the last renewal indicates that 91% of the Safestore portfolio by floor

area (90% by insured value) has little to no exposure to river/coastal

flood risk (the chance of a flooding event occurring annually is less

than 0.5%). This corresponds to just twelve current locations in the

UK with an elevated risk. There is a slightly higher exposure to surface

water flood risk - 71% of floor area and value is in stores with less than

0.5% Annual Exceedance Probability.

Accordingly, overall the portfolio has low exposure to acute flooding

risk, and whilst the frequency of extreme precipitation events is

projected to increase in all warming scenarios, the number of medium

and high impact rainfall days (defined by the UK Met Office’s National

Severe Weather Warning Service as 24 hour precipitation thresholds

in mm/day which are designed to be used for identifying prolonged

rainfall which may lead to flooding) are still projected to be relatively

rare events

Flood risk of UK portfolio 2022

(% of insured value excl. customer goods)

100%

80%

60%

40%

20%

River/coastal %

Low/medium (<0.5% AEP) High (>0.5% AEP)

Surface water %

Research focused on the physical climate risk posed to Edinburgh’s

World Heritage sites

using the most recent granular climate models

confirms this projection of extreme rainfall events and demonstrates

the elevated risks are in the autumn and summer seasons specifically.

Spring and winter events are rarely projected to exceed any impact

threshold out to 2080 even in the low mitigation (RCP 8.5) scenario.

This pattern is expected to be similar across the UK. This research

implies that the probability of these extreme events will rise in autumn

by 5-10% by 2040 and by 20-40% by 2080. The summer season

shows the largest change, especially towards the end of the century,

with probability close to 50% higher for a 1-in-200 year event, i.e.

despite overall summer drying trends in the future, increases in the

intensity of summer rainfall events are projected. It should be noted,

however, that projections for rare events have a high degree of

uncertainty, especially in the outer years of a projection period.

Notes

1 Hanlon, H.M., Bernie, D., Carigi, G. et al. Future changes to high impact weather in the

UK. Climatic Change 166, 50 (2021). https://doi.org/10.1007/s10584-021-03100-5).

2 Shane O’Neill, Simon F.B. Tett, Kate Donovan. Extreme rainfall risk and climate change

impact assessment for Edinburgh World Heritage sites, Weather and Climate Extremes,

Volume 38, 2022.

Low Impact Rainfall days/yr

Global Warming Level

160

140

120

100

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

High Impact Rainfall days/yr

Global Warming Level

20.0

17. 5

15.0

12.5

10.0

7.5

5.0

2.5

0.0

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

Medium Impact Rainfall days/yr

Global Warming Level

61-90

81-00

00-17

1.5

2.0

2.5

3.0

4.0

England and Wales Northern Ireland

NE Scotland SW Scotland

NW Scotland SandE Scotland

Projections of low, medium, and high impact

rainfall days in the UK per year under different

warming scenarios

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

From prior experience, the main consequences of these intense

precipitation events are clean-up, repairs and maintenance costs, and

short term impact on asset availability (temporary closures preventing

new move-ins). Costs are usually recovered from insurers so over time

it is reasonable to expect insurance premia and flood-related excesses

will increase if extreme events occur more frequently. There is also the

longer term risk of lower occupancies in exposed stores – although

customer goods are also insured to their declared value there is the

possibility of a reputational impact. A reasonable assumption for the

cost (P&L impact) of remediation after an extreme precipitation event is

£100k per event regardless of the warming scenario.

It should be noted that where Safestore does invest in property in

higher risk areas, risk mitigation measures are usually proactively

deployed. As such, even in extreme weather scenarios the majority of

the UK portfolio is not likely to be impacted from an ongoing operation,

insurance risk premium or valuation basis. Mitigation measures (where

deployed) should minimise disruption at higher risk sites and these

locations may in fact experience increased demand from impacted

local communities as they seek temporary storage for their belongings.

Transitional risks

Our primary transition risks are policy and regulatory changes which

may increase building specifications in an effort to meet net zero

objectives. Local authorities will continue to use planning processes

todeliver against their own objectives and policies such as Minimum

Energy Efficiency Standards (“MEES”) will impact landlords in the

residential and commercial sectors. Requirements for new projects to

meet more stringent energy efficiency standards and include features

such as solar photovoltaic panels and electric vehicle charging facilities

will add to the capital costs of new developments; however, these

would represent a small portion (1–2%) of a new development project

and would be likely be recovered through lower ongoing operating

costs over the lifetime of the building. A related market risk of carbon

taxes on core building materials such as steel could have a larger

impact; however, where possible, Safestore will convert existing

structures and is therefore less exposed to these increases in cost

andembodied carbon.

To ensure relevant UK assets meet MEES minimum standards by 2030

an estimated capital investment of £650k will be required. To ensure

readiness with MEES, we identified UK locations with offices that

would fall under the new regulations. We have conducted energy

efficiency assessments on these locations. At 31 October 2022,

38relevant UK stores have been assessed with seven properties

requiring improvements before 2027 and a further fourteen requiring

action by 2030. Should any of our facilities with offices be unable to

cost effectively meet MEES standards by 2030, we would likely convert

the office spaces into storage which does not have the same requirement.

Opportunities

The transition to a low carbon economy is likely to present

opportunities as well as risks. In general, businesses that build and

operate sustainable facilities are well-positioned in a world where both

local planning departments and end consumers are making decisions

with climate change in mind. In addition, reducing the energy intensity

of the business and reliance on gas is financially advantageous,

particularly in an era of volatile energy prices. Removing gas-burning

appliances from facilities also reduces associated fire and carbon

monoxide exposure risk. However, it should be noted that the business

is not an intensive user of energy (energy costs were 1.5% of revenue

in FY2022) unlike other more intensive usage sectors, so the variability

of power prices is not considered a significant risk. Nevertheless, it is

likely that buildings with lower operating costs and carbon emissions

intensity will attract a valuation premium and lower cost of funding.

Sales of excess power generated from rooftop solar installations

couldover time become arevenue stream in addition to supporting

decarbonisation in our communities and the wider economy.

Provision of electric vehicle charging facilities could deliver a customer

benefit whilst also reducing associated Scope 1 (business travel) and

Scope 3 emissions (customer travel to/from stores) and provide

another ancillary revenue stream.

It should also be noted that well-positioned self storage facilities could

be seen as adding ‘system resilience’ to supply chain disruptions and

facilitating recovery post-extreme weather events via temporary storage

of business or consumer goods.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Our environment continued

Metrics and targets

To assess climate risk we internally record and monitor a range of

construction and operational impact metrics such as development cost

trends, unit availability (offline units) and damage claims relating to water

damage. We also monitor and report our absolute and like-for-like energy

consumption and greenhouse gas (“GHG”) emissions in line with the

EPRA sBPR recommendations. In addition, we monitor our use of water,

generation of waste including the proportion diverted to landfill and the

emissions associated with business travel. These are disclosed in

following sections of this report on pages 67 to 73. Supplementary data

can be found on our corporate website, www.safestore.co.uk/corporate.

Scope 3 emissions which relate to ongoing operations (water, waste,

electricity transmission and distribution and business travel) are measured

and actively managed. Scope 3 relating to purchased goods, capital

expenditure and downstream use of our products (primarily customer

journeys to our stores) are not measured but we actively engage with

our suppliers to ensure these are being considered, for example, through

consolidation of deliveries to our stores or the proportion of recycled

material used in development projects.

Through a range of energy efficiency initiatives and a switch to 100%

renewable electricity, we have reduced our absolute carbon emissions

versus 2013 baseline by 54%. This progress in absolute emissions

reduction is despite a c.50% increase in portfolio floor space. As a result,

emissions intensity is currently 70% below 2013 levels (calculated

according to the location-based methodology) which is significantly

ahead of the 2022 target of 58% below the 2013 baseline.

The self storage sector is not a significant consumer of energy when

compared with other segments of the real estate landscape.

As a result, operational emissions intensity per unit of floor area tends

to be far lower versus other real estate sectors. According to a 2021

report by KPMG and EPRA

, self storage generates the lowest greenhouse

gas emissions intensity of all European real estate subsectors, with

emissions per m

less than 30% of the European listed real estate

average. Reflecting the considerable progress made on efficiency

measures and waste reduction to date, Safestore’s emissions intensity

(3.9 kg/m

) for that year is considerably lower (-32%) than the self

storage subsector average.

Nevertheless, as part of our commitment to SDG 13 (Climate action)

we have been working towards a previously set near term carbon

reduction target to 2022 (see sustainability targets and KPIs). In addition,

we have a commitment to work towards operational net zero by 2035.

This commitment covers Scope 1 and 2 emissions plus Scope 3

emissions which relate to ongoing operations (water, waste, electricity

transmission and distribution and business travel). We aim to achieve

this through a combination of consumption reduction initiatives such

as phasing out of gas heating in the portfolio and ensuring all energy

consumed is self-generated (where viable) or purchased from certified

renewable sources. Some residual emissions may require the purchase

of carbon offsets from a credible scheme(s). We estimate that the

roadmap to operational net zero will require a total investment of

c.£3million to 2035, with investments in later years subject to detailed

business case evaluation.

GHG intensity (Scope 1 and 2) by REIT sector

kg CO

e/m

per year (2020)

Residential

Diversified

Office

Retail

Mixed office/

industrial

27.0

22.1

20.2

19.2

11.8

38.0Healthcare

Industrial

Self storage

Safestore

6.6

5.8

3.9

Strategy for operational net zero

We will achieve operational net zero by 2035, through:

a) Reducing and optimising what we use

• Completion of lighting efficiency programme (external signage

andcustomer unit lighting)

• Voltage optimisation at selected sites

• Decommissioning of gas appliances

• Installation of building management

• Systems for remote monitoring and power

management(businesscase dependent)

b) Using only zero carbon energy

• Installation of solar photovoltaic on new-build stores where viable

• Securing certificated green electricity through PPAs and/or

‘highquality’ tariffs

• Transition of company car fleet to PHEVs* and BEVs*

andintroducingcharging points

• Retrofit of rooftop solar photovoltaic to selected stores

(businesscasedependent)

Total investment of

c.£3mspread until 2035

* PHEV = Plug-in Hybrid Electric Vehicles; BEV = Battery Electric Vehicles.

Note

1 KPMG/EPRA: Overview of real estate companies’ environmental performance, October

2021 (based on EPRA sBPR data sets for 88 listed companies).

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

This report was undertaken in accordance with the mandatory

greenhouse gas (“GHG”) emissions reporting requirements outlined

under the Companies Act 2006 (Strategic Report and Directors’

Report) Regulations 2013 (the “2013 Regulations”) and the Companies

(Directors’ Report) and Limited Liability Partnerships (Energy and

Carbon Report) Regulations 2018 (the “2018 Regulations”). This requires

Safestore Holdings plc (“Safestore”) to produce a Streamlined Energy

and Carbon Report. This report contains our GHG disclosure for the

2021/22 reporting period.

We have 130 stores in the UK, 29 stores in France, 9 stores in the

Netherlands, 6 stores in Belgium, and 5 stores in Spain. During the

2021/22 reporting period we acquired a store in Christchurch (UK),

opened a new store in Bow (London, UK). We also acquired 15 stores

located across the Netherlands and Belgium in April.

This report contains the following environmental data for all our stores

which were operational at the beginning of the financial year: GHG

emissions, electricity consumption, electricity transmission and

distribution, gas consumption, water consumption, waste generation,

and business travel.

Methodology

Scope of analysis and data collection

Over 2021/22 we have collected primary data for all of our stores,

including: building size (sq ft), electricity consumption (MWh), electricity

transmission and distribution (“T&D”) (MWh losses), gas consumption

(MWh), water consumption (m

), waste generation (tonnes by waste

disposal method) and business travel (mileage). We do not have any

refrigerant leakage to report for any of our stores in the UK, France,

Spain, the Netherlands or Belgium. All primary data used within this

report is from 1 September 2021 to 31 August 2022, covering the

same reporting period as last year. Where electricity, gas or water

consumption data is not available or incomplete, we have estimated

consumption based on a combination of pro-rata methods as per

Environmental reporting guidelines 2019 including:

• pro-rata extrapolation from known reliable data

• average consumption per sq ft of lettable area of the stores where

we have reliable data

• direct comparison using a corresponding period

KPI selection and calculation

For the purposes of this report stationary energy use (electricity and gas

consumption), water consumption, waste generation, and business

travel have been selected as the most appropriate key performance

indicators (“KPIs”) for the Group. To ensure consistency in our reporting,

particularly where there are differences between the UK, France, Spain,

the Netherlands, and Belgium, we are reporting all GHG emissions in

units of tonnes of CO

e. We have used the 2022 GHG conversion factors

published annually by the Department for Environment, Food and Rural

Affairs (“Defra”) and Business, Energy and Industrial Strategy (“BEIS”)

with the exception of the French, Spanish, Dutch, and Belgian CO

conversion factors associated with electricity consumption and T&D,

which are no longer published by BEIS. These were sourced from the

International Energy Agency (‘IEA’) and Carbon Footprint country specific

grid electricity factors.

GHG emissions scope

The Greenhouse Gas Protocol (the “GHG Protocol”) differentiates

between direct and indirect emissions using a classification system

across three different scopes:

• Scope 1 emissions: includes direct emissions from sources which

Safestore owns or controls. This includes direct emissions from fuel

combustion and industrial processes.

• Scope 2 emissions: covers indirect emissions relating solely to the

generation of purchased electricity that is consumed by the owned

or controlled equipment or operations of Safestore.

• Scope 3 emissions: covers other indirect emissions including

third party-provided business travel.

GHG emissions – scopes included in this report

• Scope 1 emissions: we are reporting our gas consumption and

business mileage.

• Scope 2 emissions: we are reporting our electricity consumption.

• Scope 3 emissions: we are reporting our electricity transmission

and distribution, waste generation and water consumption.

Group environmental performance

We recognise the importance of taking a proactive, strategic approach

to environmental management and we aim to ensure that good

environmental practices are applied throughout our stores, and that

those working for or on behalf of Safestore are aware of the need to

act responsibly and sustainably. Our most significant environmental

impacts arise from the construction of new stores and the operational

energy consumption of our existing stores.

Safestore is committed to the protection of the environment, the

prevention of pollution, and continually improving its environmental

performance. We will comply with all relevant legislation and strive to

exceed legal requirements where possible in order to avoid or minimise

any potential environmental impacts.

The following table displays our total Group performance for electricity,

gas and water consumption, waste generation (recycling, landfill,

Energy from Waste), and business travel against the previous years.

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only)

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Breakdown of Consumption by source (2016–2022)

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Emissions source Units (Sep–Aug) (Sep–Aug) (Sep–Aug) (Sep–Aug) (Sep–Aug) (Sep–Aug)

Natural gas MWh 2,349 4,358 4,136 3,572 3,686 2,742

Electricity MWh 22,005 17,416 15,372 14,435 13,506 14,755

Purchased water m

45,129 61,655 55,113 43,372 47,503 53,024

Recycling tonnes 787 1,211 586 1,448 1,487 1,517

Landfill tonnes 49 57 44 58 57 43

Energy from Waste tonnes 721 730 1,320 1,124 831 696

Business travel miles 602,240 628,822 396,088 346,076 421,829 469,324

Breakdown of associated GHG emissions by source (2021/22)

1.0% 2.0% 3.0% 14.0% 80.0%

Purchased water Waste Business travel Natural gas Electricity

Group environmental performance – analysis

We have analysed the year-on-year change in our performance and provided commentary on our Group environmental performance, as below:

Gas performance

We are continually seeking opportunities to reduce energy consumption to the lowest practicable levels appropriate with the operational needs

of the business and to satisfy the needs of our customers. We are phasing out the use of gas in our stores wherever possible. Some of our stores

still consume low volumes of gas for heating in reception and office locations. We seek opportunities to design efficient, low consuming working

environments, ensuring that all new stores are built to rely solely on electricity.

Year ended 31 August 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 % change

Gas use MWh 2,349.3 4,358.3 4,136.2 3,572.0 3,685.5 2,742.0 (25.6%)

Scope 1 emissions tCO

e 434.0 801.8 760.4 656.8 675.0 500.5 (25.9%)

Total gas consumption across all our stores was 2,742 MWh, which is a 25.6% decrease compared with the previous financial year.

Note

0.1% of the 2021 consumption data has been estimated for stores where consumption data was incomplete.

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only)

continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Electricity performance

We are continuing to identify opportunities to reduce electricity consumption across our stores.

Recognising that our electricity consumption is predominantly due to our lighting requirements, we have completed a portfolio-wide LED lighting

upgrade programme across all UK stores and are working on projects such as voltage optimisation to improve our efficiency.

Year ended 31 August 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 % change

Electricity use MWh 22,005.2 17,416.0 15,373.0 14,435.0 13,506.0 14,755.0 9.2%

Scope 2 emissions (LB) tCO

e 6,563.3 4,376.7 3,527.0 3,022.0 2,555.0 2,620.0 2.5%

Scope 2 emissions (MB) tCO

e Not reported Not reported Not reported 171.0 153.0 178.0 16.5%

Scope 3 emissions tCO

e 613.6 371.4 299.0 261.0 228.0 237.0 3.8%

Total electricity consumption across all of our stores was 14,755 MWh which is a 9.2% increase in consumption compared to previous year.

Water performance

Our stores consume very low volumes of water, and we strive to minimise our consumption of water wherever possible through the installation

of efficiency schemes.

Year ended 31 August 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 % change

Water use m

45,129 61,655 55,113 43,372 47,503 53,024 11.6%

Scope 3 emissions tCO

e 47.5 64.9 58.0 45.6 20.0 22.0 11.6%

Between September 2021 and August 2022, the total water consumption across all our stores was 53,024m

, which is an increase of 12%

compared to the previous financial year.

Waste performance

We produce a relatively small amount of waste and are seeking opportunities to reduce or avoid the use of natural resources and minimise waste

production, by promoting recycling where possible. We continue to improve waste segregation and are enhancing recycling facilities to divert

waste from landfill.

Year ended 31 August 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 % change

Waste – recycling tonnes 787.7 1,211.2 585.6 1,447.9 1,487.5 1,517.0 2.0%

Waste – Energy from

Waste tonnes 721.6 730.0 1,320.5 1,124.1 831.1 696.0 (16.2%)

Waste – landfill tonnes 49.2 57.3 44.2 57.7 56.5 46.0 (24.2%)

Scope 3 emissions tCO

e 37.8 47.2 45.1 81.2 90.0 68.0 (9.7%)

In the last twelve months to August 2022, a total of 2,325 tonnes of waste has been generated (recycling, Energy from Waste and landfill) which is

a decrease of 9.7% compared with the previous year.

Following the commencement of a new supplier contract in April 2022, we expect to achieve 100% diversion from landfill across our UK stores

next year and continue to review our option in other territories to minimise the impact of our operational waste.

Business travel performance

We report on our business mileage in both Company-owned and personal vehicles. We continue to promote public transport and car sharing

where possible.

Year ended 31 August 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 % change

Business travel miles 602,240 628,822 396,088 346,076 421,829 469,324 11.3%

Business travel MWh n/a n/a 440.7 395.4 484.3 518.0 6.9%

Scope 1 emissions tCO

e 168.5 175.6 108.8 96.4 117.7 124.0 5.7%

In our business we travelled 469,324 miles in the twelve months to 31 August 2022, resulting in an 11.3% increase compared with the previous

year. Following the removal of travel restrictions we have seen travel return to pre-pandemic levels with the additional territories added to our

portfolio contributing to the increase in business travel.

Vehicle fleet

This year we have purchased three plug-in hybrid electric vehicles, replacing one diesel and two petrol cars.

As we continue to modernise our fleet, we are actively reducing our emissions and going forward, we are purchasing a minimum of plug-in hybrid

vehicles. Longer term we are looking to replace our existing company car fleet with full electric cars subject to practicability and vehicle availability.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Group GHG performance (mandatory GHG reporting)

We have used the Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance

and Greenhouse Gas

Protocol

methodology for compiling this GHG data and, for UK energy consumption and emissions, included the following material GHGs: CO

O and CH

. In accordance with the BEIS reporting guidelines and data conversion factors for GHG emissions, the equivalent reports on our

France, Spain, the Netherlands, and Belgium properties used the CO

e factors provided by the International Energy Agency (“IEA”)

for emissions

associated with electricity T&D loss and Carbon Footprint Emission Factors March 2022 edition for grid electricity both for location based and

residual fuel mix for market based

. Our GHG emissions for 2021/22 covered 100% of gross floor space. The business travel miles reported

cover Company owned or operated vehicles throughout the UK, Spain, the Netherlands, and Belgium travelling for business. No data associated

with business travel has been provided for France.

Notes

1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850130/Env-reporting-guidance_inc_SECR_31March.pdf

2 https://ghgprotocol.org/

3 Source: IEA (2019) Emission Factors (https://www.iea.org/t_c/termsandconditions/)

4 Source: Carbon Footprint March 2022 Emission Factors (https://www.carbonfootprint.com/docs/2022_03_emissions_factors_sources_for_2021_electricity_v11.pdf)

UK government GHG emission conversion factors for company reporting

Standard set for 2022 (this set covers the greatest proportion of the current GHG reporting year)

Source: BEIS 2022/Carbon Footprint/IEA

Scope Emissions source Unit Conversion factors

1 Natural gas (gross CV) kWh 0.18254

1 Business travel (petrol) miles 0.27436

1 Business travel (diesel) miles 0.27492

1 Business travel (plug-in hybrid) miles 0.11007

2 UK electricity grid supply kWh 0.19338

2 France electricity grid supply (LB) kWh 0.05128

2 Spain electricity grid supply (LB) kWh 0.17103

2 Belgium electricity grid supply (LB) kWh 0.16189

2 The Netherlands electricity grid supply (LB) kWh 0.37434

2 UK electricity grid supply (MB) kWh 0.00000

2 France electricity grid supply (MB) kWh 0.05852

2 Spain electricity grid supply (MB) kWh 0.28653

2 Belgium electricity grid supply (MB) kWh 0.20478

2 The Netherlands electricity grid supply (MB) kWh 0.45172

3 UK electricity transmission and distribution kWh 0.01769

3 France electricity transmission and distribution kWh 0.00480

3 Spain electricity transmission and distribution kWh 0.02730

3 Belgium electricity transmission and distribution kWh 0.00660

3 The Netherlands electricity transmission and distribution kWh 0.01740

3 Water supply m

0.14900

3 Water treatment m

0.27200

3 Commercial waste – recycling tonnes 21.28019

3 Commercial waste – Energy from Waste tonnes 21.28019

3 Commercial waste – landfill tonnes 467.00838

Note

The conversion factors for electricity (both location based and market based) emission factors were sourced from Carbon Footprint country specific electricity grid GHG Emission Factors,

residual mixes and production mix conversion factor. (Note: Defra no longer provides overseas electricity generation conversion factors. The conversion factors are obtained directly from the

“IEA” 2019 for transmission and distribution losses.

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only)

continued

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Streamlined Energy and Carbon Report (“SECR”) summary

In accordance with the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 (the “2013 Regulations”) and the

Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (the “2018 Regulations”) we have

reported our Streamlined Energy and Carbon Report disclosure for the previous year 2020/21 and the current year 2021/22.

UK – GHG emissions (tCO

e) Units 2020/21 2021/22 *

Scope 1 tonnes CO

e (UK) 786 557

Scope 2 (LB) tonnes CO

e (UK) 2,437 2,415

Scope 2 (MB) tonnes CO

e (UK) 12 0

Scope 3 tonnes CO

e (UK) 281.0 279.8

Total GHG CO

e (LB) total tonnes CO

e (UK) 3,504 3,252

Total GHG CO

e (MB) total tonnes CO

e (UK) 1,079 837

GHG CO

e intensity (LB) tonnes CO

e/floor space (UK – thousand sq ft) 0.40 0.38

GHG CO

e intensity (LB) tonnes CO

e/floor space (UK – thousand sq m) 4.50 4.08

GHG CO

e intensity (MB) tonnes CO

e/floor space (UK – thousand sq ft) 0.13 0.10

GHG CO

e intensity (MB) tonnes CO

e/floor space (UK – thousand sq m) 1.38 1.05

Europe – GHG emissions (tCO

e) Units 2020/21 2021/22 *

Scope 1 tonnes CO

e (Europe) 7 68

Scope 2 (LB) tonnes CO

e (Europe) 118 205

Scope 2 (MB) tonnes CO

e (Europe) 141 178

Scope 3 tonnes CO

e (Europe) 42 48

Total GHG CO

e (LB) total tonnes CO

e (Europe) 167 320

Total GHG CO

e (MB) total tonnes CO

e (Europe) 190 293

GHG CO

e intensity (LB) tonnes CO

e/floor space (Europe – thousand sq ft) 0.08 0.10

GHG CO

e intensity (LB) tonnes CO

e/floor space (Europe – thousand sq m) 0.82 1.08

GHG CO

e intensity (MB) tonnes CO

e/floor space (Europe – thousand sq ft) 0.09 0.09

GHG CO

e intensity (MB) tonnes CO

e/floor space (Europe – thousand sq m) 0.93 0.99

UK – underlying energy use (MWh) Units 2020/21 2021/22 *

Scope 1 MWh (UK) 4,133 2,918

Scope 2 MWh (UK) 11,476 12,490

Total Scope 1 and 2 MWh (UK) 15,609 15,408

MWh intensity MWh/floor space (UK – thousand sq ft) 1.86 1.80

MWh intensity MWh/floor space (UK – thousand sq m) 20.01 19.34

Europe – underlying energy use (MWh) Units 2020/21 2021/22 *

Scope 1 MWh (Europe) 37 341

Scope 2 MWh (Europe) 2,030 2,266

Total Scope 1 and 2 MWh (Europe) 2,067 2,606

MWh intensity MWh/floor space (Europe – thousand sq ft) 0.94 0.82

MWh intensity MWh/floor space (Europe – thousand sq m) 10.11 8.80

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Mandatory greenhouse gas (“GHG”) emissions reporting (wholly owned stores only)

continued

Streamlined Energy and Carbon Report (“SECR”) summary continued

GHG emissions Units 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 * % change

Scope 1 tonnes CO

e (UK, Europe) 602 977 869 753 793 625 (21.2%)

Scope 2 (LB) tonnes CO

e (UK, Europe) 6,563 4,376 3,527 3,022 2,555 2,620 2.5%

Scope 2 (MB) tonnes CO

e (UK, Europe) n/a n/a n/a 171 153 178 16.5%

Scope 3 tonnes CO

e (UK, Europe) 699 483 402 396 324 327 1.1%

Total GHG CO

e (LB) total tonnes CO

(UK,Europe)

7,864 5,836 4,798 4,171 3,671 3,572 (2.7%)

Total GHG CO

e (MB) total tonnes CO

(UK,Europe)

n/a n/a n/a 1,320 1,269 1,130 (11.0%)

GHG CO

e intensity tonnes CO

e/floor space

(thousand sq ft)

0.9 0.6 0.5 0.4 0.4 0.3 (12.4%)

GHG CO

e intensity tonnes CO

e/floor space

(thousand sq m)

— 9.8 6.6 4.9 3.7 3.3 (12.4%)

GHG CO

e intensity

(MB)

tonnes CO

e/floor space

(thousand sq ft)

0.12 0.10 (19.8%)

GHG CO

e intensity

(MB)

tonnes CO

e/floor space

(thousand sq m)

1.29 1.03 (19.8%)

Energy consumed Units 2018/19 2019/20 2020/21 2021/22 * % change

Scope 1 MWh (UK, Europe) 4,577 3,967 4,170 3,259 (21.8%)

Scope 2 MWh (UK, Europe) 15,373 14,435 13,506 14,755 9.2%

Total Scope 1 and 2 total MWh (UK, Europe) 19,950 18,402 17,676 18,015 1.9%

MWh intensity MWh/floor space (thousand sq ft) 1.99 1.76 1.67 1.53 (8.2%)

MWh intensity MWh/floor space (thousand sq m) 21.46 18.95 17.95 16.48 (8.2%)

Note

* The financial reporting year 2021/22 for Europe includes energy and emission figures for Belgium and the Netherlands which were acquired by Safestore in April 2022.

Energy efficiency narrative

Through a range of energy efficiency initiatives and a switch to 100% renewable electricity we have reduced our absolute energy use, with

carbon emissions versus 2013 baseline reduced by 54%.

We have now been using renewable energy for three years. In our UK wholly owned stores, 100% of our electricity is from certified renewable

energy sources. The electricity for our UK owned portfolio is supplied by multiple renewable sources. The two largest contributors areKilbraur

Wind Farm and Cullisse Wind Farm which are both located in Scotland.

Our overall electricity usage in the UK has increased year-on-year. This is largely an intended consequence of our ongoing effort to replace gas

appliances with higher efficiency electric solution powered by renewable electricity. Accordingly, overall energy usage (and intensity of use per

unit of floor area) in the UK is lower versus the prior year. In FY2022 we removed gas appliances from nine of our UK stores, bringing the total

number of stores where gas has been removed to 27. We continue to benefit from our previously completed works on LED lighting with built in

motion sensors across all existing and new stores. In FY2022, the lighting efficiency programme continued with a focus on upgrades to lighting

incustomer units.

We are continuing with our plans to remove gas boilers in remaining stores. As we switch to high efficiency electric heating solutions, we are also

looking to minimise our usage of electricity through initiatives such as voltage optimisation at out largest sites. In FY2022, voltage optimisation

technology was installed at Battersea Park and this will be deployed in other stores subject to the findings of this first installation.

Procurement of renewable energy

We are actively pursuing renewable energy within our purchasing decisions. During 2021/22, (128 stores across UK) 100% of our UK electricity

consumption in our 117 wholly owned stores was purchased from Ofgem accredited renewable sources and is covered with associated renewable

energy certificates. The energy sources that we use include onshore wind farms and solar fields. Our objective here is to help meet our

sustainability goals and to reduce our market based GHG emissions.

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Sustainability continued

Group GHG performance (mandatory GHG reporting) analysis

Total GHG emissions for Scope 1, Scope 2, and Scope 3 for the twelve-month period to 31 August 2022 have decreased by 2.7% (or reduced

by 99 tonnes CO

e) to 3,572 tonnes CO

e. Of the total GHG emissions Scope 1 accounts for 17%, Scope 2 accounts for 73%, and Scope 3

accounts for 9%.

Breakdown of emissions scopes 2021/22

Our overall floor space has increased from 10,008,172 sq ft (2018/19) to 11,763,815 sq ft (2021/22).

Our GHG emissions CO

e intensity has decreased from 0.35 tonnes CO

e per 1,000 sq ft in 2020/21 to 0.30 tonnes CO

e per 1,000 sq ft in

2021/22, which is a decrease of 12.1%.

17% 73% 9%

Scope 1 Scope 2 Scope 3

Our GHG emissions in kg CO

e per sq ft floor area since 2015

GHG emissions intensity (kg CO

e/sq ft)

0.40

0.90

0.60

0.50

2015/16

2016/17

2017/18

2018/19

2019/20

2021/22

2020/21

0 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

0.30

0.35

Sustainable Energy First (formerly “BiU”) has collated the data set covering Scope 1–3 emissions for the period 1 September 2021 to 31 August 2022.

Sustainable Energy First has direct visibility of the raw data used to calculate ~94% of the total global Scope 1–3 emissions and as such can

provide confirmation on the completeness and accuracy of these emissions as well as around the emissions factors applied, their relevance and

source; reference to these has been provided within this report. Where estimations have been made these have been noted within this report

and efforts continue to be made to improve the quality of the data used within our annual energy and emissions report.

OVERVIEW

STRATEGIC REPORT

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Dear shareholder

On behalf of the Board, I am pleased to present the Company’s

governance report for the year ended 31 October 2022. The Board is

committed to high standards of corporate governance, and decisions

are based on what the Board believes is likely to be for the benefit of

allstakeholders by promoting and maintaining the long term success

of the Company and its reputation. The Board is responsible for

establishing the Group’s purpose, its values and strategy and satisfying

itself that these are aligned with the overall culture of the Group. The

Board is also responsible for setting appropriate performance targets

for management and monitoring the business’s performance against

those targets. This review and the reports of the Nomination, Audit and

Remuneration Committees that follow, summarise the key matters

considered by the Board during the year and how it discharges its

responsibilities. Our strategy is explained on pages 8 to 18.

Compliance statement

The Company is reporting against the UK Corporate Governance

Code 2018 (the “Code”). Throughout the year ended 31 October 2022,

and up to the date of this report, the Company has been in compliance

with the principles and provisions of the Code. However, going into

2023 the Board is mindful of Provision 10 of the Code, as Ian Krieger

will have served as a Non-Executive Director for more than nine years.

After careful consideration, however, the Board has determined that

Ian continues to be independent and has agreed to extend Ian’s tenure

until the 2024 AGM. Further explanation relating to Ian’s tenure is

provided on pages 78 and 79. I have also engaged with key

shareholders to explain the Company’s rationale for extending Ian’s

tenure. The Code is available on the Financial Reporting Council

(“FRC”) website at: www.frc.org.uk.

Board and Committee composition

There were a number of changes to the composition of the Board and

its Committees during the year. On 31 May 2022, Claire Balmforth

stepped down from the Board. Claire served the business outstandingly

during her tenure and on behalf of the entire Board, I would like to

thank Claire for her significant contribution.

Following a search process involving search firm Russell Reynolds,

wewere pleased to welcome Jane Bentall to the Board in May 2022

asa Non-Executive Director and as a member of the Audit and

Remuneration Committees. Jane’s extensive experience and

understanding of operating multi-site, consumer-led businesses will be

valuable to the Board. The Board wasalso pleased to appoint Laure

Duhot as the new Chair of the Remuneration Committee. Further

changes to the composition of the Board’s Committees are

summarised on page 83.

We continue to appoint only the most appropriate candidates to the

Board and our recruitment process in selecting and appointing Board

members is explained in more detail in the Nomination Committee

report on page 83.

Diversity

The Board supports the FTSE Women Leaders Review, which seeks

to improve board and senior leadership gender diversity across FTSE

350 companies, and the Parker Review on Ethnic Diversity. As at the

financial year end, the Board comprised five male and three female

Directors, meaning that 38% of our Board is female. Although no

Board member was from a minority ethnic background during the year,

the Board is mindful of the recommendations of the Parker Review and

is committed to increasing the ethnic diversity of the Board as soon as

reasonably practicable. Our colleague engagement shows that people

enjoy working at Safestore, but high retention, particularly in more

senior roles, means the pace of change for gender diversity in the

senior leadership team is slower than we would like. The Board would

like to see more women at Safestore, at all levels, and our aim is to

attract 40% female applicants for every role. In addition, we are

working hard on attracting, retaining, and supporting women in our

workforce. For more information on gender diversity across the Group

please refer to page 50.

Evaluating the Board’s effectiveness

Each year, the Board undertakes a formal evaluation of its effectiveness.

This year we carried out an externally facilitated evaluation to assist in

the development of the Board, in conjunction with external facilitator

Gould Consulting Limited. The results of the Board evaluation

confirmed that the Board continues to function effectively to a high

standard. The Board members were seen as engaged and committed

while the Board’s culture remains open, respectful and constructive.

Notwithstanding that the report considered that the Board’s performance

was strong, a number of actions were identified to further enhance the

Board’s effectiveness, and further details of these may be found on

pages 79 and 80.

The Board is committed to high standards

of corporate governance and decisions are

based on what the Board believes is likely

to be for the benefit of all stakeholders by

promoting and maintaining the long term

success of the Company and its reputation.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Introduction

2023 Directors’ Remuneration Policy

The current Directors’ Remuneration Policy (the “Policy”) was approved

by shareholders at the 2020 Annual General Meeting and was designed

to operate for three years. The Remuneration Committee commenced

a remuneration review during 2022 to determine the guiding principles

and design of a new Policy to be presented for shareholder vote during

2023. However, at the date of drafting this report, the Committee is still

in discussions with key shareholders around the details of the new Policy.

As a result, the new Policy will be presented for shareholder approval,

as soon as practicably possible, during the 2023 financial year at a

General Meeting, i.e. before 31October 2023.

Our stakeholder engagement, our values and

our culture

Our colleague and stakeholder engagement has been fundamental to

our success and is integral to and aligned with our values and corporate

culture. Our colleague and stakeholder engagement arrangements are

set out on pages 34 to 35 and in the Sustainability report. Our successful

performance is only possible due to the hard work and commitment of

our colleagues, who continue to be engaged with our strategy, and

aligned with our values and our culture. Our high level of colleague

engagement was evidenced by Safestore being awarded the prestigious

Investors in People (“IIP”) Platinum accreditation and making the final

top ten shortlist for the Platinum Employer of the Year (250+) category

inThe IIP Awards 2021. This award is explained more fully on page 49.

Compliance with Task Force on Climate-related

Financial Disclosures (“TCFD”) and

sustainabilityreporting

The Board is committed to implementing the relevant recommendations

of the TCFD, providing our stakeholders and investors with insight into

the key climate-related risks and opportunities that are relevant to our

business, and explaining how these are identified and managed. This

year is the second year we are reporting against the TCFD framework

and we have built on our prior year reporting. We have made climate-

related financial disclosures consistent with all eleven of the TCFD

recommendations and further details are set out on pages 45 and 62

to 66.

We are also very pleased to report on the continuing external recognition

we have received during the year for our sustainability reporting as

highlighted on pages 6, 11, and 46. We continue to keep under review

the evolution of our sustainability strategy and continue to work towards

our commitment to operational carbon neutrality (net zero) by 2035,

which is explained on pages 58 to 66.

2023 Annual General Meeting (“AGM”)

The AGM of the Company will take place at 12 noon on Wednesday

15March 2023 at Brittanic House, Stirling Way, Borehamwood,

Hertfordshire WD6 2BT. All Directors will attend the AGM, which

will provide an opportunity for shareholders to hear more about our

performance during the year and to ask questions of the Board. We

will again broadcast the meeting using teleconference facilities and

invite shareholders to submit their written questions on the business

of the 2023 AGM. You will find details of the conference facility and

how to submit written questions on our investor website at

https://www.safestore.co.uk/corporate and in the Notice of the 2023

AGM.

David Hearn

Non-Executive Chairman

16 January 2023

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Committee membership

Audit Committee

Chair of Committee

Nomination Committee

Remuneration Committee

David Hearn

Non-Executive Chairman

Commenced role

1 January 2020 (appointed to the

Board and as a member of the

Remuneration Committee on

1December 2019 and appointed

asNomination Committee Chair on

1January 2020).

Skills and experience

David Hearn is an experienced chair

and brings a wealth of international

board and senior executive experience

in public companies, having previously

been CEO of leading consumer goods

businesses Goodman Fielder in

Australasia, United Biscuits in Europe

and Asia, Cordiant plc in the US and

the UK and also international private

equity and advisory firm

Committed Capital.

External appointments

David is currently chair of The a2 Milk

Company and a director of Lovat

Partners, Committed Capital and the

architectural firm Robin Partington

& Partners.

Other listed directorships

The a2 Milk Company is listed on the

New Zealand Stock Exchange and

dual listed on the Australian

Stock Exchange.

Frederic Vecchioli

Chief Executive Officer

Commenced role

September 2013

Skills and experience

Frederic Vecchioli founded our French

business in 1998 and has overseen its

growth to 29 stores in Paris operating

under the “Une Pièce en Plus” brand.

He joined the Group as President and

Head of French Operations following

the Mentmore acquisition in 2004.

Frederic was appointed to the Board

in March 2011 and became Chief

Executive Officer of the Group in

September 2013.

External appointments and

other listed directorships

None.

Andy Jones

Chief Financial Officer

Commenced role

May 2013

Skills and experience

Andy Jones joined the Group in May

2013 as Chief Financial Officer. Andy’s

previous role was director of group

finance at Worldpay Limited, prior to

which he held the positions of director

of finance and investor relations at TUI

Travel plc, and chief financial officer at

Virgin Entertainment Group in the US.

Andy began his career at Ernst & Young,

where he qualified as a chartered

accountant in 1992. Andy is a graduate

of the University of Birmingham.

External appointments and

other listed directorships

None.

Ian Krieger

Senior Independent Director

Commenced role

March 2015 as Senior

Independent Director

Skills and experience

Ian Krieger joined the Board in October

2013 as a Non-Executive Director and

was appointed Chair of the Audit

Committee in April 2014 and Senior

Independent Director in March 2015.

Ian is a chartered accountant and was

a senior partner and vice-chair at

Deloitte until his retirement in 2012.

Ian brings a wealth of recent financial

experience to the Board as well as his

experience as senior independent

director and audit committee chair

for two other UK-listed companies

in the property sector.

External appointments

Ian is a non-executive director, senior

independent director and audit committee

chair of Capital & Regional plc and

Primary Health Properties plc.

Other listed directorships

Capital & Regional plc and Primary

Health Properties plc.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Board of Directors as at 16 January 2023

Laure Duhot

Non-Executive Director

Commenced role

November 2021

Skills and experience

Laure Duhot joined the Board in

November 2021 as a Non-Executive

Director and was appointed as a

member of the Audit and Remuneration

Committees. Following Laure’s

appointment as Chair of the

Remuneration Committee in June

2022, Laure stepped down from the

Safestore Audit Committee. Laure

brings over 30 years of senior executive

level experience in the investment

banking and property sectors,

specialising in alternative real estate

assets, and has been a non-executive

director at a number of funds and

property companies.

Laure started her career in the

investment banking sector and has

developed a focus on the property

sector. She has held senior roles at

Lehman Brothers, Macquarie Capital

Partners, Sunrise Senior Living Inc.,

Pradera Limited and Grainger plc, and

latterly was head of investment and

capital markets – Europe at Lendlease.

External appointments

Laure is currently a non-executive

director of Primary Health Properties

plc, NB Global Monthly Income Fund

Limited, a premium-listed Guernsey

registered fund, and ORPEA SA, a

company listed on Euronext Paris.

Laure also acts as the independent

member on CBRE-IM’s UK investment

committee. Formerly Laure was a

non-executive director of Inland

Homes plc and MedicX Fund,

whichmerged with Primary Health

Properties plc in March 2019.

Other listed directorships

Primary Health Properties plc, NB

Global Monthly Income Fund Limited,

a premium-listed Guernsey registered

fund, and ORPEA SA, a company

listed on Euronext Paris.

Jane Bentall

Non-Executive Director

Commenced role

May 2022

Skills and experience

Jane Bentall has extensive experience

and understanding of operating

multi-site, consumer-led businesses.

Most recently, Jane was managing

director of Haven, the UK holiday

parks chain and largest business

division of Bourne Leisure. Prior to

becoming managing director of

Haven, she was the group chief

financial officer for twelve years and

previously spent six years as

operations director. In her career she

has also held senior financial roles at

the Rank Group.

Jane is a director and chair of the

remuneration committee of Oakman

Inns plc, and a non-executive director

and chair of the audit and finance

committee of The Royal Marsden

NHSFoundation Trust. Jane is also a

director of Resident Hotels Limited,

aconsultant for Blackstone, and a

member of Pilotlight.

Jane is an ACA qualified accountant

and a fellow of the Institute of

Chartered Accountants.

External appointments

Oakman Inns plc.

Resident Hotels Limited

Other listed directorships

None.

Gert van de Weerdhof

Non-Executive Director

Commenced role

June 2020

Skills and experience

During his extensive and varied career,

Gert van de Weerdhof has held a

number of senior executive positions

including as CEO of GrandVision Europe

BV before progressing to become chief

retail officer for Esprit Holdings Ltd and

latterly as CEO of RFS Holland Holdings

BV and its subsidiary Wehkamp BV.

Until recently Gert was also a

non-executive director, vice-chair and

chair of the remuneration and nomination

committees for Wereldhave NV, chair of

CTAC NV, and a non-executive director

and vice-chair of Accell Group NV. Gert

brings a wealth of international expertise

to the Board having held roles across

multi-site retail, e-commerce, consumer

goods and real estate.

External appointments

Gert is currently non-executive director

of Sligro Food Group NV and CEO of

Mercy Ships.

Other listed directorships

Sligro Food Group NV is listed on

Euronext Amsterdam.

Delphine Mousseau

Non-Executive Director

Commenced role

November 2021

Skills and experience

Delphine Mousseau brings over 25

years of senior executive level and

consultancy experience in e-commerce

and customer engagement across

Europe, specialising in retail.

Delphine began her career as a project

manager at the Boston Consulting

Group before moving on to join

Plantes-et-Jardins.com where she

became head of operations. Between

2007 and 2011, she was director of

e-commerce for Europe at Tommy Hilfige

and then became an independent

consultant, primarily for the former

Primondo Specialty Group which was

Carlyle owned. Latterly Delphine was

a VP markets at Zalando and a

non-executive director of Fnac-Darty SA.

External appointments

Based in Germany, Delphine is

currently non-executive director at

Aramis Group SAS, listed on Euronext

Paris, and a member of the Holland &

Barrett UK Board and chair of the

Refurbed Board in Austria.

Other listed directorships

Aramis Group SAS, a company listed

on Euronext Paris.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Leadership

The role of the Board

The Board is collectively responsible for the long term sustainable

success of the Company.

The Board sets:

• the Company’s purpose, values and strategy, and ensures that

these are aligned with the overall culture of the Group;

• appropriate performance targets for management and monitors the

performance of the business against those targets;

• the Group’s risk appetite and satisfies itself that financial controls

and risk management systems are robust, while ensuring the Group

is adequately resourced; and

• ensures there is appropriate dialogue with shareholders on strategy

and remuneration.

The Board’s activities during the year and how it discharges its

responsibilities can be found on page 80. The Group’s established

strategy has evolved to embed sustainability within its purpose. Our

strategy is underpinned by our values, as defined on pages 3 and 53,

our behaviours and our governance structure, which shape our culture

and remain central to the way we conduct our business. The culture of

the business is a key part of our success.

The Non-Executive Directors are responsible for providing constructive

challenge to the Executive Directors, assisting in developing proposals

on the Group’s strategy and monitoring the performance of the Executive

Directors against strategic and operational objectives.

The Board has delegated certain responsibilities to its Audit, Remuneration

and Nomination Committees. Each Board Committee has defined terms of

reference, which can be found online within the Governance section of the

Company’s website: www.safestore.com. The activities of each Board

Committee are set out in separate sections of this report. The Audit

Committee is, in turn, supported by the Risk Committee, which is a

management committee, chaired by the Chief Financial Officer.

The Board also has an established Standing Committee and a Disclosure

Committee, which are sub-committees of the Board and meet as required.

The Standing Committee has delegated authority to approve routine

matters such as matters relating to the operation of the Company’s share

scheme arrangements, and any other matters, which may be expressly

delegated to it by the Board from time to time. The Disclosure Committee

has delegated responsibility for overseeing the disclosure of information by

the Company to meet its obligations under the Market Abuse Regulation.

All Committees and all Directors have the authority to seek information

from any Group colleague and to obtain professional external advice if they

feel necessary.

Implementation of agreed plans, budgets and projects in pursuit of the

Group’s strategy and the actual operation of the Group’s system of internal

control and risk management are delegated to the Executive Directors,

who are supported by an Executive Committee. This includes implementing

Group strategy to optimise the trading performance of the existing store

portfolio, to monitor financial performance and maintain a strong and

flexible capital structure, to identify selective portfolio and expansion

opportunities, to develop our colleagues and to implement the Group’s

sustainability strategy. Sustainability governance is explained more fully on

page 47.

The Board and its independence

At the date of this report, the Board consists of eight Directors, the

Chairman, two Executive Directors and five independent Non-Executive

Directors, with Ian Krieger appointed as the Senior Independent Director.

The Chairman was considered to be independent on appointment. The

skills and experience of each of the Directors, along with the dates they

commenced their role, are set out on pages 76 and 77.

Both on an individual and collective basis, the Directors have the skills,

understanding, experience and expertise necessary to ensure the effective

leadership of the Group. At least half of the Board, excluding the Chair, are

independent. The Board monitors the independence of its Non-Executive

Directors. The Board is aware of the other commitments of its Directors

and is satisfied that these neither conflict with their duties, nor impact

their independence or time commitment as Non-Executive Directors of

theCompany.

The Board is mindful that the Code lists that where non-executive directors

hold cross-directorships or have significant links with other directors through

involvement in other companies or bodies, this is likely to impair, or could

appear to impair, a non-executive director’s independence. Accordingly

when assessing the independence of Laure Duhot and Ian Krieger, it

was noted that both Laure and Ian serve as independent non-executive

directors of Primary Health Properties plc (“PHP”), a UK listed company.

They are not involved in executive duties for PHP and each has a similar

obligation to be independent for PHP as they do for the Company. The

Board does not consider that Laure’s and Ian’s positions as independent

Non-Executive Directors of the Company are adversely impacted by their

roles on the board of PHP and is satisfied that, notwithstanding these

appointments, they are therefore regarded as independent.

The Board is also mindful that non-executive director tenure that exceeds

nine years is also listed by the Code as a circumstance that is likely to impair,

or could appear to impair, a non-executive director’s independence. Ian

Krieger was appointed to the Board in October 2013.

However, the Board has recently undergone a significant period of renewal:

three of our longer serving Non-Executive Directors have stepped down

during the last 18 months and we now have four recently appointed

Non-Executive Directors. Ian has played a particularly important role as

Safestore’s most experienced Non-Executive Director, serving as both

Chair of the Audit Committee and as our Senior Independent Director.

His contribution and experience are invaluable to the Board.

As a result of Ian Krieger having served on the Board for over nine years,

the Board has carried out a robust assessment of Ian’s contribution and

independence. In doing so, the Board assessed the degree of objective

judgement and constructive challenge demonstrated by Ian. Having

undertaken a rigorous review of Ian’s performance as a Non-Executive

Director and having taken into account other relevant factors that might

be considered likely to impair, or could appear to impair, independence

including as set out in Provision 10 of the Code, the Board considers Ian

to be independent. The Board has also concluded that, following the

recent changes in Board composition and given Ian’s in-depth knowledge

of the Company and the property sector, his exceptional contributions to

Our purpose: To add stakeholder value

by developing profitable and sustainable

spaces that allow individuals, businesses,

and local communities to thrive

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Corporate governance

the Board and its Committees continue to be invaluable and that it would

be in the best interests of the Company to extend Ian’s tenure, for a further

year, until the AGM in 2024, subject to shareholder support. This is not only

because of his experience and skill set but also due to the continuity and

corporate knowledge his presence will bring which the Board considers

vital as the newer directors continue to come up to speed fully in their

new roles.

Each Non-Executive Director continues to bring independent judgement

to the Board’s decision-making process. Frederic Vecchioli is also a

director of myStorage GmbH, a company incorporated in Germany and

an associated company of the Group; apart from this appointment the

Executive Directors do not hold any executive or non-executive directorships

in other companies.

Key roles and responsibilities

The roles of Chairman, Chief Executive Officer and Senior Independent

Director are separate and clearly defined, with the division of responsibilities

set out in writing and agreed by the Board. The Chairman is responsible for

the management of the Board and foraspects of external relations, while

the Chief Executive Officer has overall responsibility for the management of

the Group’s businesses and implementation of the strategy approved by

the Board. The Senior Independent Director is also responsible for supporting

the Chairman on all governance issues. The statement of the division of

responsibilities between the Chairman, the Chief Executive Officer and the

Senior Independent Director is available on the Governance section of the

Company’s website: www.safestore.com.

Formal Workforce Advisory Panel

Our ‘Make the Difference’ people forum, launched in 2018, is a formal

workforce advisory panel. The Board approved the establishment of the

advisory panel to facilitate engagement between colleagues from different

areas of the business and provide a two-way feedback process between

the Board and our colleagues. The panel has terms of reference that define

it’s purpose and has a mechanism for appointing colleague representatives,

known as people champions. Further information relating to the panel and

our ‘People Champions’ can be found on page 10. The Board receives

regular feedback from the panel which has resulted in the Board approving

outcomes as detailed in the Sustainability report on page 51 and Directors’

remuneration report on pages 93, 98, and 101. The Chief Executive Officer

attends panel

meetings twice a year to report the views of the Board and to

provide regular

updates covering the Group’s performance and the delivery

of our strategy. The Board considers the formal workforce advisory panel

to be effective.

Effectiveness

Activities of the Board

The Board scheduled eight meetings during the financial year, and

additional Board meetings are held as and when required. During this

financial year, an additional meeting was arranged to discuss the

acquisition of Carlyle’s interest in the Benelux Joint Venture The Board has

held a mix of in-person meetings and meetings held by video conference.

The Board has a formal schedule of matters specifically reserved for its

decision, which includes (amongst other things) various strategic, financial,

operational and governance responsibilities. A summary of the key

activities of the Board during the year, in accordance with the formal

schedule of reserved matters, can be found on page 80.

The services of the Company Secretary are available to all members of the

Board. Board minutes are circulated to all Board members. There is also regular

informal contact between Executive and Non-Executive Directors to deal with

important matters that arise between scheduled Board meetings. A separate

meeting for Non-Executive Directors is held at least once in every year.

Appropriate directors’ and officers’ insurance cover is arranged by the

Group through its insurance brokers and is reviewed annually.

Board meetings held in 2021/22

Attendance of the individual Directors of the Board at meetings that they

were eligible to attend during the financial year is shown in the table below:

Director who served during the year

ended31October 2022

No. of

meetings held

during tenure

during the year

Number of

meetings

attended

David Hearn 9 9

Frederic Vecchioli 9 9

Andy Jones 9 9

Ian Krieger 9 9

Claire Balmforth* 6 6

Gert van de Weerdhof 9 9

Laure Duhot 9 9

Delphine Mousseau 9 9

Jane Bentall* 3 3

Note

* On 31 May 2022, Claire Balmforth stepped down from the Board and on 18 May 2022,

Jane Bentall was appointed as an independent Non-Executive Director. In addition to the

three meetings Jane attended as a member of the Board, Jane also attended a Board

meeting in May as an observer, rather than as a member of the Board.

In addition to the scheduled Board meetings, the Standing Committee met

on 13 occasions and was granted express delegation by the Board to

approve the full year and half year results announcements and ancillary

matters. The Standing Committee also approved routine administrative

matters which related to the maturity of the Company’s 2019 (three-year)

Sharesave scheme, the vesting of the Company’s 2017 Long Term

Incentive Plan, the grant of new options under the 2022 (three-year)

Sharesave scheme and intercompany funding arrangements. The

Disclosure Committee has met once during theyear.

2022 Board effectiveness review

The Board recognises that it continually needs to monitor and improve its

performance. This is achieved through annual Board effectiveness reviews,

full induction of new Board members and ongoing Board development

activities. Each year the Board conducts an effectiveness review and every

three years the review is carried out externally. This year the Board

instructed Gould Consulting Limited, to conduct an external review of the

effectiveness of the Board and its Committees. Gould Consulting Limited

have no other business relationship with the Group or any of the

Company’s Directors.

The scope for the Board performance evaluation was agreed with the

Chairman. Gould Consulting Limited conducted individual interviews with

the Chairman, the Chief Executive Officer and the Senior Independent

Director and used an online survey tool to gather feedback from each

Director and the Executive Committee. Gould Consulting Limited

summarised its findings for the Chairman’s consideration. A final report

was shared with the Board and Gould Consulting attended a meeting of

the Board, to summarise its findings and facilitate further debate.

The anonymity of respondents was ensured throughout the evaluation

process in order to promote an open and frank exchange of views. The key

findings arising from the review were reviewed by the Board and

recommendations were made to:

• to continue to develop succession plans below Board level;

• following Covid-19 restrictions being lifted, to resume Board meetings

atthe Group’s European locations;

• make time available within the Board calendar for Board training on

matters of interest to the Board and relevant to the Company.

• review Board packs, with an aim to reduce Board pack size, and

management’s workload in providing regular Board papers.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Effectiveness continued

2022 Board effectiveness review continued

Following the outcome of the 2022 Board effectiveness review, the Board

concluded that the Board and its Committees continue to function

effectively to a high standard.

The content for any subsequent effectiveness reviews will be designed to

build upon insights gained in the previous exercise to ensure that the

recommendations agreed in the review have been implemented and that

year-on-year progress is measured.

The Chairman reviewed the performance of the Chief Executive Officer

and the Non-Executive Directors. The Chief Executive Officer reviewed

the performance of the Chief Financial Officer, and this year, the

Chairman’s own performance was assessed as part of the 2022

external Board evaluation process, and the SID fed back the

comments directly to the Chairman.

A summary of the key matters considered by the Board during the year

Responsibilities Activities

Strategy • The development and implementation of the Company’s strategy has included general updates from the CEO and CFO.

• Presentations from members of the management team on strategy implementation in their operations.

• Considering selective portfolio management and expansion opportunities, which included the acquisition of Carlyle’s 80% share

of our Benelux Joint Venture the expansion of our Spanish operation and site acquisitions in the UK, France and Benelux.

• Approving a new German Joint Venture arrangement with Carlyle, and Safestore management of the myStorage business.

Performance

andoperational

matters

• Reviewed the 2022 performance against budget and updated forecasts for the UK, French, Spanish and Benelux operations.

• Reviewed customer performance data.

• Maintained a detailed focus on full year earnings guidance.

• Approved the 2023 Board budget.

• Reviewed and approved the Group’s investment appraisal policy.

• Received regular operational updates from members of the management team, relating to property, colleagues,

marketing, IT, store operations, company secretarial and legal matters.

Finance

andcapital

• Reviewed the Group’s capital structure and approved the arrangements for the Group’s new unsecured four-year

£400million multi-currency Revolving Credit Facility.

• Monitored the Company’s going concern and long term viability statements.

• Reviewed cash flow, dividend policy (in line with the UK REIT requirements) and shareholder returns.

People, culture

and values

• Received regular updates on colleague wellbeing and HR matters, including updates on colleague engagement and

updates from our ‘Make the Difference’ people forum, our formal Workforce Advisory Panel.

• Reviewed and approved the Group’s key policies including the Company’s Modern Slavery Act Statement, anti-corruption and

bribery (statement and policy), the whistleblowing (‘Speak Out’) policy and the health and safety policy statement.

• Considered and reviewed the gender pay gap report for 2021.

• Reviewed the Company’s sustainability strategy, including the Company’s commitment to work towards operational

carbon neutrality (net zero) by 2035.

• Reviewed colleague engagement arrangements.

Governance

andrisk

• Approved changes to Board composition, Director independence, and succession planning.

• Considered Board composition, Director independence, and succession planning.

• Approved an increase in Non-Executive Director fees, in line with overall general increases to all colleagues.

• Approved an increase in the Chairman’s fee.

• Reviewed reports on governance and legal issues.

• Considered the Company’s risk appetite in relation to its strategy.

• Reviewed the outcome of the Board and its Committees’ 2022 Board effectiveness review.

• Reviewed the Directors’ Conflict of Interests Register.

Shareholder

andstakeholder

engagement

• Discussed feedback from investors’ and analysts’ meetings following the release of our full year and half year results

announcements and interim management statements and meetings with existing and potential shareholders.

• Discussed feedback following the Chairman and the Senior Independent Director’s engagement with major shareholders

ahead of the 2022 AGM.

• Received regular updates from brokers and advisers on the market perception of Safestore.

• Received updates from the CEO and CFO on stakeholder engagement in relation to investor and partner engagement.

Other • Approved the Annual Report and Financial Statements and recommended the final dividend in line with the Company’s

dividend policy for shareholder consideration.

• Approved the 2022 half year results announcement and declared the interim dividend in line with the Company’s

dividend policy.

• Approved the interim management statements in January and September 2022 regarding trading updates.

• Received and reviewed monthly shareholder analysis reports.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Corporate governance continued

Board development

The Chairman is responsible for ensuring that all Non-Executive

Directors receive ongoing training and development. Our Non-Executive

Directors are conscious of the need to keep themselves properly briefed

and informed about current issues. Specific and tailored updates are

provided at Board meetings and to members of the Audit Committee

and have included presentations from the Company’s advisers.

There is a procedure to enable Directors to take independent legal

and/or financial advice at the Company’s expense, managed by the

Company Secretary, if they feel necessary to carry out their duties

asadirector fully. No such independent advice was sought in 2022.

During the year the Company has delivered an induction programme

for Laure Duhot, Delphine Mousseau and Jane Bentall which has been

led by the Chief Executive Officer. The induction programme has been

prepared to ensure that it provides a comprehensive introduction to

the Group as a whole.

Board appointments

Each decision to appoint further Directors to the Board is taken by the

entire Board in a formal meeting based on a recommendation from the

Nomination Committee. The Nomination Committee consults with

financial and legal advisers and uses the services of external

recruitment specialists. New members of the Board are provided with

initial and ongoing training appropriate to individual needs in respect of

their role and duties as Directors of a listed company.

During the year the Nomination Committee engaged in a rigorous

search for a new Non-Executive Director. The process for identifying

and overseeing the appointment of the new Non-Executive Director

has been explained in the Nomination Committee report on page 83.

Chairman’s fees

Following a detailed benchmarking process, the Non-Executive

Directors recommended to the Board that the Chairman’s fees should

be increased. The fee increase is set out in the Directors’ remuneration

report on page 93. No Director was involved in any decision as to their

own remuneration.

Appointment terms and elections of Directors

All Directors have service agreements or letters of appointment and

the details of their terms are set out in the Directors’ remuneration

report on page 116. The service agreements of the Executive Directors

and letters of appointment of the Non-Executive Directors are available

for inspection at the Company’s registered office during normal

business hours, including the 15 minutes immediately prior to the AGM.

The letters of appointment for Non-Executive Directors are inline with

the provisions of the Code relating to expected time commitment. At

each AGM of the Company, all Directors will stand for re-election in

accordance with the Code and the Company’s Articles ofAssociation.

The Company’s Articles of Association require that a Director appointed

during the preceding year should be subject to election at the

Company’s next AGM.

Directors’ conflicts of interest

The Company’s Articles of Association give the Directors the power

toconsider and, if appropriate, authorise conflict situations where

aDirector’s declared interest may conflict or does conflict with the

interests of the Company.

Procedures are in place at every meeting for individual Directors to

report and record any potential or actual conflicts which arise. The

The Board has complied with these procedures during the year.

Diversity

The Board supports the FTSE Women Leaders Review, which seeks

to improve board and senior leadership gender diversity across FTSE

350 companies, and the Parker Review on Ethnic Diversity. The

Company has an equality, diversity and inclusion policy, which includes

the Company’s policy on diversity and the Board’s diversity policy.

Details of the Company’s equality, diversity and inclusion policy are

provided on page 50.

At the date of this report, the Board comprises 38% women (FY2021:

25%). No member of the Board is from a minority ethnic background.

However, the Board is mindful of the recommendations of the Parker

Review and is committed to increasing the ethnic diversity of the Board

as soon as reasonably practicable in line with the recommendations.

The Board is also mindful of the Investment Association’s guidelines in

relation to the gender balance for the Executive Committee and its direct

reports. The gender balance for this cohort of colleagues is set out on

page 50. This cohort of colleagues is fundamental to our success.

However, high colleague retention in these roles, means that gender

diversity in the senior leadership team has not changed during the year,

although we anticipate that it will do so gradually in the future. For more

information on gender and ethnic diversity across the Group please

refer to page 50.

Accountability

Risk management and internal control

A summary of the principal risks and uncertainties within the business

is set out on pages 37 to 42.

The Board retains overall responsibility for setting Safestore’s risk

appetite and establishing, monitoring and maintaining the Group’s risk

management and internal control systems. These systems are

designed to enable the Board to be confident that such risks are

mitigated or controlled as far as possible, although no system can

eliminate risk entirely.

The Board has established a number of ongoing processes to identify,

evaluate and manage the strategic, financial, operating and compliance

risks faced by the Group and for determining the appropriate course

ofaction to manage and mitigate those risks. The Board delegates the

monitoring of these internal control and risk management processes to

the Audit Committee. These measures have been in place throughout

the year and up to the date of this report.

The Risk Committee supports the Group’s risk management strategy

and undertakes regular reviews of the formal risk assessments and

reports regularly to the Audit Committee of the Board. The Risk

Committee is chaired by the Chief Financial Officer and comprises

representatives from the operations, finance, human resources and

property functions. Risk management remains an ongoing programme

within the Group and is formally considered at operational meetings

aswell as at meetings of the Board.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Accountability continued

Risk management and internal control continued

At 31 October 2022, the Group employed a risk manager in the UK

supported by two store auditors responsible for reviewing operational

and financial controls at store level in the UK. The store assurance team

operates with a mandate to provide assurance that the stores’ risk

management and control processes are operating effectively and to

the expected and required standard. The Group also employs an Audit

Manager in France who is responsible for arranging a combination of

external safety audits and internal audits for measuring and developing

quality, process and safety. The UK Risk Manager reports to the Chief

Financial Officer; the French Risk Manager reports to the President of

the French business. The arrangements in the Netherlands and Belgium

are within the auspices of the UK and French risk teams respectively

and the arrangements in Spain are supported by a third party service

provider. For the 2023 financial year, the Board has determined that

value would be added through the establishment of a new internal

audit function. Further details are provided on pages 88 and in the

Audit Committee report.

During the financial year, the Board has directly, and through delegated

authority to the Audit and Risk Committees, overseen and reviewed

the performance and evolution of risk management activities and

practices and internal control systems within the Group. Through both

its ongoing involvement and overview in risk management and internal

control activities, the Board is satisfied that there have been no significant

failings or weaknesses identified and the Directors believe that during

2022 the system of internal control has been appropriate for the Group.

Budgetary process

A comprehensive budgeting process is in place, with an annual budget

prepared and validated at a country and functional level. The budget is

subject to significant consideration and approval by the Board. The

Directors are provided with relevant and timely information required to

monitor financial performance.

Investment appraisal (including acquisitions)

Budgetary approval and defined authorisation levels regulate capital

expenditure. Acquisition activity is subject to internal guidelines

governing investment appraisal criteria, financial targets, negotiation,

execution and post-acquisition management.

Company ethics and whistleblowing

The Company is committed to the highest standards of integrity and

honesty and expects all colleagues to maintain the same standards in

everything they do at work. The Company recognises that effective and

honest communication is essential to maintain its business values and

to ensure that any instances of malpractice are detected and dealt with.

The Company has a number of policies available online for its colleagues.

These include a code of conduct, an anti-bribery and corruption policy,

a receipt of gifts and corporate hospitality policy and a whistleblowing

(‘Speak Out’) policy. The anti-bribery and corruption policy reinforces

the Group’s commitment to countering bribery, tax evasion and

corruption as it seeks to comply with the Bribery Act 2010 and the

Criminal Finances Act 2017.

The Speak Out policy has procedures for disclosing malpractice and,

together with the code of conduct, is intended to act as a deterrent to

fraud or other corruption or serious malpractice. It is also intended to

protect the Group’s business and reputation.

No whistleblowing issues were reported during the year.

The Board considers the payment of taxes as a responsibility that

brings positive socio-economic impacts through its presence and

employment creation in the countries it operates in. A Group tax strategy

has been in place since 2016, which is approved by the Board and

reviewed annually by the Audit Committee and is available on the Group’s

website: www.safestore.com. It is the Group’s policy to pay the right

amount of tax wherever it does business, based on a fair and sound

application of local tax laws to the economic substance of its business

transactions. Safestore does not use artificial tax avoidance schemes

or tax havens to reduce the Group’s tax liabilities.

Investor relations and shareholder

andinvestor engagement

We are committed to proactive and constructive engagement with all

our shareholders and consider all shareholders’ views as part of the

Board’s decision-making process. The Group places a great deal of

importance on communication with its shareholders and maintains a

dialogue with the investment community. Engagement is maintained

through a comprehensive investor relations programme, which includes

formal presentations of the full year and half year results and meetings

with institutional investors and analysts as required and attendance at

Investor conferences. The presentation slides used at these meetings

are made available on the Company’s website and accessible for all

shareholders. The Board ensures that our shareholders, investors

and investor community have a strong understanding of our strategy,

performance and culture.

Earlier this year, the Chairman, together with the Senior Independent

Director, met several shareholders, to understand their views on governance

and performance against strategy. At the time of our 2022 AGM, the

Chairman engaged further with some specific shareholders to understand

their vote against the 2021 Directors’ remuneration report. It was clear

that the vote against did not reflect a vote against either the management

or the Board, but instead was a legacy vote against our 2017

Remuneration Policy and the subsequent execution of it during 2021.

To ensure all Board members share a good understanding of the

viewsof all our shareholders, the Board receives regular updates

onthe views of our shareholders and receives summaries of institutional

investor comments following meetings on the full year andhalf year

results.

In the event that shareholders have any concerns, which the normal

channels of communication through the Chief Executive Officer or

Chief Financial Officer have failed to resolve or for which such contact

is inappropriate, our Chairman or Senior Independent Director are

available to address such concerns. Both make themselves available

when requested for meetings with shareholders on issues relating to

the Company’s governance and strategy.

The Board considers the Annual Report and Financial Statements,

theAGM and its website to be the primary vehicles for communication

with private investors. Resolutions at the Company’s AGM are proposed

on each substantially separate issue and the Company indicates the

level of proxy voting lodged in respect of each resolution. The AGM

gives all shareholders who are able to attend (especially private shareholders)

the opportunity to hear about the general development of the business.

It also provides an opportunity for shareholders to ask questions of the

full Board of Directors, including the Chairs of the Audit, Nomination

and Remuneration Committees.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Corporate governance continued

The Board, on the advice of

the Committee, recommends

the re‑election of each Director

David Hearn

Chair of the Nomination Committee

Meetings held in 2021/22

Members of the Committee during the year

ended 31 October 2022

No. of meetings

held during tenure

during the year

Number of

meetings

attended

David Hearn (Chair) 3 3

Ian Krieger 3 3

Claire Balmforth 2 2

Gert van de Weerdhof 2 2

Membership

The Nomination Committee comprises Non-Executive Directors and is

chaired by David Hearn. On 15 December 2021, Gert van de Weerdhof

and Claire Balmforth were appointed as members of the Committee

and on 31 May 2022, Claire Balmforth stepped down from the

Committee. Other Directors and management are invited to attend

meetings as appropriate.

Key objectives

To ensure the Board and executive leadership comprises individuals

with the necessary skills, knowledge and experience and to ensure

that the Board is effective in discharging its responsibilities.

Responsibilities

The Board has approved terms of reference for the Nomination

Committee which are available on the Governance pages of the

Group’s website, www.safestore.com, within “Governance Documents”.

These provide the framework for the Committee’s work in the year and

can be summarised as:

• assessing the composition of the Board and making

recommendations on appointments to the Board and senior

executive succession planning; and

• overseeing the performance evaluation of the Board, its Committees

and individual Directors.

How the Committee operates

The Nomination Committee met as necessary and each meeting had

full attendance.

Activities of the Committee during the year

Appointment of new Non-Executive Director

In March 2022, the Company announced Claire Balmforth’s intention to

step down from the Board. Following Claire’s decision, the Committee

reviewed the Board’s size, skill set and diversity and agreed to undertake

a search for a new additional Non-Executive Director. Claire agreed to

remain on the Board until a suitable replacement was found.

Following the successful executive search for Laure Duhot and

Delphine Mousseau in 2021, the Committee decided to re-engage

Russell Reynolds Associates to facilitate and advise on the executive

search for a new Non-Executive Director.

Russell Reynolds Associates has signed up to the voluntary code

ofconduct on gender diversity and best practice, and is accredited

under the enhanced code of conduct for executive search firms,

whichspecifically acknowledges those firms with a strong track

recordin and promotion of gender diversity in FTSE 350 companies.

Russell Reynolds Associates has no other connection with the Group

or any of the Company’s Directors.

The Nomination Committee prepared a job specification and agreed

acandidate profile for Russell Reynolds Associates to undertake an

executive search. The Committee also asked Russell Reynolds to revisit

the shortlisted candidates from the 2021 selection process and have

regard to both gender and ethnic diversity in its search. Jane Bentall

emerged from this process and the members of the Committee

unanimously recommended Jane Bentall to the Board. The Board

approved Jane’s appointment as a Non-Executive Director on

18May2022.

Committee composition

In December 2021, the Committee recommended to the Board that

Claire Balmforth and Gert van de Weerdhof be appointed as members

of the Nomination Committee and that Laure Duhot and Delphine

Mousseau be appointed as members of the Audit Committee and

Remuneration Committee respectively.

Following Claire’s decision to step down as a Non-Executive Director,

as a member of the Committee and as Chair of the Remuneration

Committee, the Committee recommended to the Board that Laure

Duhot step down as a member of the Audit Committee and be

appointed as Chair of the Remuneration Committee. The Committee

also recommended that Jane Bentall be appointed as a member of

the Audit and Remuneration Committees. The Board approved these

appointments on 18 May 2022, although changes relating to Laure’s

appointments were effective from 1 June 2022.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Nomination Committee report

Activities of the Committee during the year c ontinued

Committee composition continued

A significant amount of the Committee’s time in 2022 was spent on Board composition; other activities of the Nomination Committee included:

Responsibilities Activities

Board and Committee

composition

• Assessed the diversity, skill set and composition of the existing Board and its Committees, following Claire

Balmforth’s decision to step down as a Non-Executive Director.

• Oversaw the process for appointing an additional Non-Executive Director.

• Considered Committee composition and recommended new appointments to each Committee.

• Considered the performance of the Chief Executive Officer and the Chief Financial Officer.

Succession planning • Discussed succession planning in respect of both Board members and senior management within the Group.

Board development • Reviewed the programme for Non-Executive Director development.

Governance • Reviewed the Group’s culture, values and behaviours.

• Discussed the remit and role of the Committee and reviewed its terms of reference.

Succession planning

It is a key responsibility of the Committee to advise the Board on succession planning. The Committee ensures that future changes in the

Board’s membership are anticipated and properly managed and that, in the event of unforeseen changes, management and oversight of the

Group’s business and long term strategy will not be disrupted. The Committee also addresses continuity in, and development of, the Executive

Committee below Board level.

Diversity

The Company’s diversity policy recognises the benefit and value of diversity across the Group. We are committed to the creation of an inclusive

culture where our colleagues reflect the diverse communities we serve and where each person is given the opportunity to contribute and use their

talents and abilities, experiences and skills to participate in developing sustainable commercial opportunities. The Board recognises that a diverse

Board, with an appropriate balance through a diverse mix of experience, backgrounds, skills and deep knowledge and insight, is a key driver of an

effective Board. The Chairman leads the Safestore Board diversity agenda with the aim of continuously improving diversity generally, including, but

not limited to, the gender balance and ethnic diversity, which ultimately leads to better Board debate and decision. The Board’s diversity policy

seeks to ensure that diversity in its broadest sense, continues to remain a significant feature of the Board. The Board must continue to provide

strong leadership at Safestore and therefore continues to appoint only the most appropriate candidates to the Board.

For details of diversity and inclusion as it applies to the Group’s wider workforce and the gender balance of senior managers and direct reports,

please see page 50.

Board and Committee performance evaluation

The Committee’s performance was reviewed as part of the 2022 externally facilitated Board and Committee evaluation process, which is explained

on pages 79 and 80. The review found that the Committee functions effectively and should continue to develop succession plans below Board level.

Directors standing for election and re-election

In accordance with the Company’s Articles of Association, Jane will be subject to election at the Company’s 2023 AGM. In accordance with the

Code provisions the remaining Directors will stand for re-election at the 2023 AGM. Following the annual Board performance review and the

outcome of performance reviews of individual Directors, I can confirm that each Director subject to either election or re-election:

• continues to operate as an effective member of the Board;

• remains committed to their roles and have sufficient time available to perform their duties; and

• has the skills, knowledge and experience that enables them to discharge their duties properly and contribute to the effective operation of

the Board.

The Board, on the advice of the Committee, recommends the election or the re-election of each Director. Further information on the Directors,

including their skills and experience, can be found in the Directors’ biographies on pages 76 and 77.

I will be available at the Annual General Meeting to answer any questions on the work of the Nomination Committee.

David Hearn

Chair of the Nomination Committee

16 January 2023

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Nomination Committee report continued

The Company’s control

environment remains robust

Ian Krieger

Chair of the Audit Committee

Meetings held in 2021/22

Members of the Committee during the year

ended 31 October 2022

No. of meetings

held during tenure

during the year

Number of

meetings

attended

Ian Krieger (Chair) 5 5

Gert van de Weerdhof 5 5

Laure Duhot* 2 2

Jane Bentall 2 2

Membership

The Audit Committee comprises solely independent Non-Executive

Directors. Laure Duhot joined the Committee on 15 December 2021

and stepped down on 1 June 2022. Jane Bentall was appointed as a

member of the Committee on 18 May 2022. The members of the

Committee have been selected to provide the wide range of financial

and commercial expertise necessary to fulfil the Committee’s duties

and responsibilities and I am the Committee’s designated financial

expert for the purposes of the Code.

In order to ensure that the Committee continues to have experience

and knowledge relevant to the sector in which the Company

operates,all of the Non-Executive Directors receive regular updates

onbusiness, regulatory, financial reporting and accounting matters.

The Committee’s performance was reviewed as part of the 2022

externally facilitated Board evaluation, which is explained on pages 79

and 80. The review found that the Committee functions effectively and

that issues are dealt with in a thoughtful, clear and rigorous manner.

Key objectives

The provision of effective governance over the appropriateness of the

Company’s financial reporting, the performance of both the store

assurance arrangements and the external auditor and oversight over

the Company’s system of internal control.

Responsibilities

The Board has approved terms of reference for the Audit Committee,

which are available on the Governance pages of the Group’s website,

www.safestore.com, within “Governance Documents”. These provide

the framework for the Committee’s work in the year and can be

summarised as providing oversight of the:

• appropriateness of the Company’s external financial reporting;

• relationship with, and performance of, the external auditor;

• Group’s store assurance arrangements and the risk management

framework; and

• Group’s internal control framework.

How the Committee operates

The Audit Committee met five times during the year, and has an

agenda linked to the events in the Group’s financial calendar. In

addition to the Committee members, the following individuals attend

by invitation:

• the Chief Financial Officer and the Group Financial Controller;

• the Chair and the Chief Executive Officer;

• other senior managers, as appropriate, including those responsible

for IT security and risk management;

• the audit partner, directors and senior managers from Deloitte; and

• the valuation team from the Company’s property valuers, Cushman

& Wakefield.

This year, during two Audit Committee meetings, the Committee met

separately with Deloitte without any other member of management

being present.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Audit Committee report

Main activities of the Committee during the year

A summary of the Audit Committee’s main activities during the year included the following items:

Responsibilities The Audit Committee has:

Financial reporting • reviewed the Annual Report and Financial Statements and that, taken as a whole, it is fair, balanced and

understandable and provides the information necessary for shareholders to assess the Company’s

performance, business model and strategy;

• assessed and concluded on the Group’s viability statement and the appropriateness of adopting the going

concern basis of accounting for the full and half year financial results;

• reviewed the significant issues and material judgements which were made in preparing the 2022 half year

results and the Annual Report and Financial Statements;

• considered and agreed the approach for performing the valuations of investment properties for the Annual

Report and Financial Statements and interim results;

• challenged the valuers findings and judgements in relation to the property valuation;

• reviewed the integrity of the financial statements and announcements relating to the financial performance and

governance of the Group at year end and half year;

• reviewed the principal judgemental accounting matters affecting the Group based on reports from both the

Group’s management and the external auditor;

• challenged the technical provisions relating to the accounting for share-based payments under IFRS 2,

including disclosure and narrative, and considered the significance of the share-based payments charge

onthisyear’s financial statements; and

• considered alternative performance measures, not defined under IFRS or “non-GAAP” measures, ensuring

consistency with how management measures and judges the Group’s financial performance.

External auditor • reviewed and approved the audit plan with the external auditor, and that it was appropriate for the Group,

including in respect of scope and materiality and aligned to the key risks of the business;

• considered external audit effectiveness, independence and re-appointment;

• challenged the auditor’s findings and judgements in relation to the property valuation;

• approved auditor remuneration; and

• considered the requirement to tender for audit services, in line with the Statutory Services for Large Companies

Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Responsibilities) Order 2014.

Internal audit

arrangements

• reviewed the effectiveness of the Group’s internal controls and disclosures made in the Annual Report and

Financial Statements;

• challenged the effectiveness of the Group’s store audit arrangements; and

• assessed the effectiveness and independence of the store assurance team and considered whether there was

a need for the Company to establish a broader internal audit function.

Governance and risk • monitored the adequacy and the effectiveness of the Group’s ongoing risk management systems and

processes, through risk and assurance plans and reports, including:

• store assurance audit reports;

• internal financial control assessments;

• fraud and loss prevention reports; and

• operational risk updates, including IT security, health and safety and customer complaints;

• reviewed the Company’s anti-corruption and bribery (statement and policy) and whistleblowing (‘Speak Out’)

policy and procedures;

• monitored the effectiveness of the Company’s information security and business continuity arrangements; and

• reviewed the Company’s REIT compliance and tax strategy.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Audit Committee report continued

Appropriateness of the Company’s external

financial reporting

Financial reporting and significant financial judgements

The Committee assessed whether suitable accounting policies had

been adopted and whether management had made appropriate

estimates and judgements. The Committee reviewed accounting

papers prepared by management which provided details on the main

financial reporting judgements.

The Audit Committee reviewed the assumptions associated with the

accounting for share-based payments to ensure that they were

accurately measured and disclosed appropriately in the Annual Report

and Financial Statements in accordance with IFRS 2 “Share-based

Payments”, with particular focus on the assessment of the performance

conditions under which the share-based payments vest.

The Committee also reviewed reports by the external auditor on the

full year and half year results which highlighted any issues with respect

to the work undertaken on the year end audit and half year review.

The Committee paid particular attention to matters it considered

important by virtue of their impact on the Group’s results and

remuneration, and particularly those which involved a high level of

complexity, judgement or estimation by management.

The Committee has concluded that there were not significant levels

of judgements included in the financial statements, other than for the

property valuation as described below.

Property valuations

The key area of judgement that the Committee considered in reviewing

the financial statements was the valuation of the investment property

portfolio. Whilst this is conducted by independent external valuers, it

isone of the key components of the financial results and is inherently

complex and subject to a high degree of judgement and estimation.

Aswell as detailed management procedures and reviews of the process,

the Committee met the Group’s valuers to discuss the valuations,

review the key judgements and discuss whether there were any

significant disagreements with management. This year the Committee

reviewed and challenged the valuers on the cap rates, rental growth

assumptions and stabilised occupancy levels, and also the considerations

made around the macro-economic and inflationary environment, in

order to agree the appropriateness of the assumptions adopted. The

Committee also challenged the valuers and satisfied itself on their

independence, their quality control processes (including peer partner

review) and qualifications to carry out the valuations. Management

also has processes in place to review the external valuations. In

addition, the external auditor uses valuation experts to conduct a

detailed review of the key assumptions that underpin the investment

property valuations and reports their findings to the Committee.

A more detailed explanation of the background, methodology and

judgements that are adopted in the valuation of the investment

properties is set out in note 13 to the financial statements.

Financial statements

The Committee considered and was satisfied with management’s

presentation of the financial statements.

Management confirmed to the Committee that it was not aware of any

material misstatements and the auditor confirmed that it had found no

material misstatements during the course of its work.

The Committee is satisfied that the judgements and estimates made

by management are reasonable and that appropriate disclosures have

been included in the financial results. After reviewing the reports from

management and following its discussions with the valuers and

auditor, the Committee is satisfied that the financial statements

appropriately address the critical judgements and key estimates, both

in respect of the amounts reported and the disclosures. The Committee

is also satisfied that the processes used for determining the value of

the assets and liabilities have been appropriately reviewed and challenged

and are sufficiently robust.

Fair, balanced and understandable assessment

At the request of the Board, the Committee also considered whether

the Annual Report and Financial Statements was fair, balanced and

understandable and whether it provided the necessary information for

shareholders to assess the Company’s performance, business model

and strategy.

The Committee has advised the Board that in its view, taken as a

whole, the Annual Report and Financial Statements is fair, balanced

and understandable. In reaching this conclusion, the Committee

considered the overall review and confirmation process around the

Annual Report and Financial Statements, going concern and viability.

The Committee was provided with, and commented on, a draft copy of

the Annual Report and Financial Statements. In carrying out the above

processes, key considerations included ensuring that there was

consistency between the financial results and the narrative provided

in the front half of the Annual Report. The Committee is satisfied that

alternative performance measures, not defined under IFRS or “non-GAAP”

measures, are consistent with how management measures and judges

the Group’s financial performance.

Going concern and viability statement

The Committee has reviewed the Group’s assessment of viability over

a period of three years. The Committee’s approach in assessing going

concern and the viability statement is set out on page 44.

Relationship with, and performance of,

theexternal auditor

Annual auditor assessment

During the year, the Committee conducted a review of the

effectiveness of the external audit process and the audit quality.

In considering the effectiveness of the external audit, the Committee

considered:

• the arrangements for ensuring the external auditor’s independence

and objectivity;

• the quality of the audit team and their expertise;

• the quality and scope of the audit plan and reporting;

• the quality of the formal audit report to shareholders;

• the robustness and perceptiveness of the auditor in its handling

of the key accounting and audit judgements; and

• the content of the external auditor’s comments on control

improvement recommendations.

The Committee also sought the views of key members of the finance

team, senior management and Directors on the audit process and the

quality and experience of the audit partner engaged in the audit. Their

feedback confirmed that the auditor continues to perform well and

provide an appropriate level of challenge to management.

It is standard practice for the external auditor to meet privately with the

Audit Committee, without any member of management or the

Executive Directors being present, at least once a year.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Relationship with, and performance of,

theexternal auditor continued

External auditor objectivity, independence and non-audit work

The Audit Committee’s terms of reference set out that it is responsible

for the formal policy on the award of non-audit work to the auditor.

TheCommittee has formalised procedures for the approval of

non-audit services which stipulate the services for which the auditor

will not be used. The policy also stipulates projects where the auditor

may be used subject to certain conditions and pre-approval requirements.

In order to preserve auditor objectivity and independence, the external

auditor is not asked to carry out non-audit work. A report of all audit

and non-audit fees payable to the external auditor is provided to the

Committee at each meeting, including both actual fees for the year

todate and a forecast for the full year, analysed by project and into

pre-defined categories. In the current financial year, Deloitte LLP provided

non-audit services, amounting to £4,000 covering covenant compliance

work, for the Company’s lenders. It was determined that the nature of

the work would not impact auditor objectivity and independence given

the safeguards in place.

It is the Committee’s policy to ensure that there is audit partner rotation

every five years to safeguard the external auditor’s independence and

objectivity. Deloitte was appointed as external auditor to conduct the

audit for the 2014 financial year. The first lead audit partner retired

following the 2017 audit and Darren Longley was appointed as the new

lead audit partner with effect from 1 May 2018 and has completed his

fifth year in office. A new lead audit partner will be appointed for the

2023 audit.

The auditor is asked on an annual basis to articulate the steps that it

has taken to ensure objectivity and independence, including where the

auditor provides non-audit services. As part of the 2022 audit, Deloitte

confirmed that it was independent within the meaning of applicable

regulatory and professional requirements. Taking this into account

andhaving considered the steps taken by Deloitte to preserve its

independence, the Committee concluded that Deloitte’s independence

had not been compromised notwithstanding the level of non-audit

feesincurred during the year.

Audit tendering

Deloitte was appointed by shareholders as the Group’s statutory

auditor in 2014 following a formal tender process. There are no

contractual obligations that restrict the choice of external auditor. It is

arequirement of the Statutory Services for Large Companies Market

Investigation (Mandatory Use of Competitive Tender Processes and

Audit Responsibilities) Order 2014 (the “Order”):

• to formally tender for audit services every ten years;

• to rotate the partner every five years; and

• if a competitive tender process has not been completed for five

consecutive financial years, that the Company states when it intends

to complete such a tender process.

The Order became effective for financial years beginning on or after

1January 2015 and applies to the Company with effect from the financial

year ended 31 October 2016. To comply with the Order the Company

intends to conduct a formal tender process for audit services during the

financial year ending 2024. The Committee considers this timing to be in

the best interests of the Company, as it allows for a new lead audit

partner to be appointed (in accordance with the Order) and conduct

afull year audit ahead of the formal audit tender process.

Re-appointment of auditor

In reviewing the effectiveness, independence, objectivity and expertise

of the external auditor, the Audit Committee has concluded that overall

Deloitte has carried out the audit effectively and efficiently and recommended

to the Board that the auditor be proposed for re-appointment as external

auditor for 2023.

Resolutions to re-appoint Deloitte as auditor and to authorise the

Directors to agree its remuneration will be put to shareholders at

theAnnual General Meeting that will take place on Wednesday

15March 2023.

Group’s risk management and internal

control framework

The Board, as a whole, including the Audit Committee members,

considered whether the nature and extent of Safestore’s risk management

framework and risk profile were acceptable in order to achieve the

Company’s strategic objectives. As a result, the Committee considered

that the Board has fulfilled its obligations under the Code.

Safestore’s internal controls, along with its design and operating

effectiveness, remain a key priority for the Group and are subject to

ongoing monitoring by the Audit Committee through reports received

from management, along with those from the external auditor. The

Committee, together with management, has continued to maintain

itscomprehensive review of the controls across the business. The

Committee is satisfied that the Company’s control environment remains

robust. The risks and uncertainties facing the Group, and its internal

control processes are considered in the strategic report on pages 37

to 42 and on pages 81 to 82.

Internal audit

The Audit Committee has oversight responsibilities for the store

assurance team, which is responsible for reviewing operational and

financial controls at store level, which effectively carries out an internal

audit role for the Group’s stores. The Committee has also reviewed an

analysis of how the key risks in the business are mitigated by existing

controls and has reviewed the Group’s risk management framework.

The Committee considers that this provides a robust internal audit

assessment for the Group. However, given the increasing expansion of

the Group’s geographical presence, it has determined that value would

be added through the establishment of a new internal audit function.

I will be available at the Annual General Meeting to answer any

questions on the work of the Audit Committee.

Ian Krieger

Chair of the Audit Committee

16 January 2023

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Audit Committee report continued

The Company has continued to deliver

excellent financial and operating

performance during 2021/22

Laure Duhot

Chair of the Remuneration Committee

Part A: annual statement

Dear shareholder

As the recently appointed Chair of the Remuneration Committee

(the“Committee”), on behalf of the Committee, I am pleased to

providean overview of our work in relation to both Director and

widerworkforce remuneration for the year ended 31 October 2022.

Firstly, I would like to take this opportunity to draw your attention to

thetwo key matters in this report:

• the 2017 LTIP vesting and the Board’s shareholder engagement; and

• the Committee’s approach to the 2023 Directors’ Remuneration

Policy (the “Policy”).

2017 LTIP vesting and incentive payouts

during the year

The Committee is delighted that Safestore has delivered exceptional

performance this year which is reflected in the achievement of another

solid set of financial results for the year ended 31 October 2022. This

istestament to the excellent performance of the management team

and all colleagues who have delivered strong performance against

ourbusiness goals.

Annual bonus

In relation to the annual bonus, financial and strategic/operational

targets have been significantly exceeded leading to maximum payout.

2017 LTIP

As highlighted in last year’s report, the Committee measured the

Company’s EPS growth over the five-year period ending on

31October 2021 and disclosed the value of this element in the single

figure table, which accounted for two-thirds of the award. However,

final vesting could only be determined after taking into account the

relative TSR element which accounts for the remaining one-third of the

award. The Committee is pleased to confirm that TSR targets have

been significantly exceeded, even considering the material fall in share

prices in the real estate sector during 2022, resulting in full vesting of

the awards. The Committee noted the significant vote against the 2021

annual report on remuneration. We understand from our engagement

with major investors that the main reason for the voting outcome on

our 2021 Directors remuneration report was that some shareholders

who voted against the 2017 remuneration policy at its inception have a

policy to vote against all future remuneration reports that reflect their

subsequent execution and therefore this is unlikely to change for 2022.

However,the Committee is of the view that the remuneration earned

this year reflects the Company’s excellent performance over a sustained

period and that this is consistent with the views of our shareholders,

many of whom fully accepted that the 2017 LTIP awards reflected the

outstanding value created for all shareholders which has been of significant

benefit to all our stakeholders.

2020 LTIP

EPS growth targets have been exceeded under the 2020 award. Full

vesting will be determined based on an assessment of the Company’s

relative TSR performance in March 2023.

Further details of the business performance and the resulting incentive

payouts are set out within this annual statement.

2023 Policy

The Committee commenced a remuneration review during 2022 to

determine the guiding principles and design of the proposed Policy to

bepresented for shareholder vote during 2023. This is an important

exercise and the committee is now in the process of determining a

competitive package to retain a management team whose fixed

compensation is significantly below its peers. At the date of drafting

thisreport, the Committee is still in discussions around the details of the

new Policy. As a result, the new Policy will be presented for shareholder

approval during the 2023 financial year, i.e. before 31October 2023

ataGeneral Meeting, in line with the relevant regulations.

In undertaking its review, the Committee concluded that the positioning

of the current remuneration packages, being significantly below

Safestore’s peers in terms of quantum and which in fact places the

CEO in the lower quartile of the FTSE 250, is not in the best interests of

all stakeholders. It also noted that the 2017 LTIP had now vested and

paid out in full. Therefore, changes to the LTIP are likely to be proposed

as part of the new Policy, although the Committee is keen that the LTIP

structure should continue to be aligned with standard market practice in

terms of vesting profiles and be subject to the achievement of stretching

performance targets. On this basis, LTIP awards will be delayed until

shareholder approval of the new Policy has been gained.

I look forward to engaging with you and hearing your feedback on

proposals during 2023 and hope that shareholders will support our

new Policy at the General Meeting to be held in 2023.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Directors’ remuneration report

for the year ended 31 October 2022

Part A: annual statement continued

Overview of business performance

As set out in this Annual Report, the Board is proud of Safestore’s

achievements this year, with excellent business performance, driven by

strong revenue growth in the UK market, strong performances in our

Parisian and Spanish businesses, and seven months’ contribution

from our recently acquired Benelux business. Ournew store pipeline

represents c.18% of our existing portfolio’s MLA, which we anticipate

will continue to grow. Our strong and flexible balance sheet has

significant funding capacity, allowing us to continue to consider

strategic, value-accretive investments as and when they arise. We have

delivered a strong occupancy performance over recent years and, after

a significant level of acquisition and development activity over the last

six years, we still have 1.4m sq ft of fully invested currently unlet space

in our UK, Paris, Spain and Benelux markets in addition to 1.4m sq ft

of pipeline space. Our most significant upside opportunity is from filling

this space at optimised rates and that remains our priority.

The consequence of the above is that we achieved another record set

of financial results, significantly ahead of budget, and can continue

with our progressive dividend policy. The business has demonstrated

its inherent resilience which, alongside our recent excellent results and

current trading, allows the Board to look forward with confidence.

Over the past year, our priority has continued to be the health and

wellbeing of our colleagues and our customers. We are exceptionally

proud that our commitment to colleagues was recognised externally

last year by the award of the prestigious Investors in People (“IIP”)

Platinum accreditation. I was also particularly pleased that the number

of hours spent on training across the business has increased following

the removal of Covid-restrictions.

The Company continues to increase base salaries for all colleagues

and Board Directors. I am pleased to report that an average increase

of 6.9% was provided to colleagues during 2022. In addition, to show

our appreciation for the commitment and resilience of all our colleagues

we made exceptional payments totalling £1,000 to every colleague:

£500 in December 2021 as a thank you for their contribution during

the pandemic; and a further £500 cost of living payment in October

2022 to ease financial hardship.

Committee activities in 2022

Despite taking the decision to postpone the Policy renewal, a

significant amount of the Committee’s time in 2022 was spent

undertaking a remuneration review to support the design of the

newPolicy. In addition, we also did the following:

• proactively responded to the 72% votes in favour of the 2021

remuneration report as set out above;

• considered wider workforce pay policies and practices and

feedback from the workforce panel;

• approved the salary increase for Executive Directors and senior

managers alongside the wider workforce salary budget;

• review Chairman fees to reflect market competitive levels and

timecommitment;

• agreed annual bonus targets for 2022;

• reviewed and approved the 2022 LTIP grant and the associated

performance conditions;

• discussed and approved Executive Director and senior manager

remuneration outcomes for 2022 including measuring the

performance outcomes of the relative TSR element of the 2017 LTIP

award and the EPS element of the 2020 LTIP;

• reviewed the gender pay gap analysis results and signed off actions;

• reviewed and approved the Directors’ remuneration report for

2021/22; and

• reviewed the Committee’s terms of reference.

Planned activities for 2023

We set out below the activities which the Committee expects to

undertake next year:

• engaging with investors in relation to the new Policy, refining and

finalising proposals in light of feedback received, and presenting

the Policy for approval by shareholders at a General Meeting to be

held in 2023;

• implementing the new Policy, on the basis it is approved by

shareholders;

• our normal oversight of the annual remuneration cycle including

approving Company-wide salary increases, approving the annual

bonus and LTIP targets for 2023, measuring performance against

the bonus targets and determining the vesting outcomes of the

relative TSR element of the 2020 LTIP award and the EPS element

of the 2021 LTIP award;

• review of Executive Director and senior manager salaries; and

• review of wider workforce pay policies and practices and feedback

from the workforce panel.

Remuneration outcomes for 2022

How we have performed in 2022

It has been another strong year for Safestore, and we areproud of

everything the Executive and wider team has achieved. Weexceeded

both our own and investor expectations and this is reflected in our 2022

performance outcomes. Highlights for 2022 performance include:

• Group revenue up 13.8% to £212.5 million;

• Underlying EBITDA up 14.5% to £135.1 million;

• Adjusted Diluted EPRA Earnings per Share up 17.3% to 47.5 pence

resulting in 66.7% growth over the three years to 31 October 2022;

• proposed total dividend in respect of the year to 31 October 2022

up 18.7% to 29.8 pence per share;

• expansion of the property pipeline to over 1.4m sq ft of MLA through

securing a combination of freehold and leasehold sites;

• Group occupancy at 31 October 2022 stood at 82.1%, down

2.4ppts on 2021, and total occupancy was 6.317m sq ft, up

7.4% on 2021;

• strong contribution from our recently acquired Benelux business

of seven months’ revenue of €5.9 million;

• continued progress made in relation to sustainability including

further reductions in our emissions and exceeding our target

whereby 98.5% of construction waste is diverted away from

landfill; and

• maintained EPRA Silver award status.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

The results for 2022 are a continuation of the strong performance of the business since 2013, when the current team took over the management

of Safestore. Like many companies in the real estate sector, our share price has fallen since the start of 2022; however, £100 invested in

Safestore in September 2013 would still be worth about £845 as at 31 October 2022, taking account of share price growth and reinvested

dividends. This represents outperformance against key competitors and industry benchmarks as shown below.

Safestore FTSE 250 FTSE 350 Supersector Real Estate Big Yellow Lok’nStore

TSR rebased to 100 at 01/09/2013

1,400

1,000

800

600

400

200

01/09/2013 01/09/2014 01/09/2015 01/09/2016 01/09/2017 01/09/2018 01/09/2019 01/09/202201/09/202101/09/2020

1,200

Base salary increases

The Committee determined, as part of the annual pay review, to increase the Executive Directors’ salaries by 3% from 1 May 2022 resulting in

salaries of £454,578 and £323,887 for the CEO and CFO respectively. This increase was in line with that provided to senior management, but

significantly below that of the average for the general workforce (6.9%).

Pension

Executive Directors’ pension contribution rates continue to be aligned with the average workforce rate of 4.1% of salary.

Annual bonus outcome

Targets for the 2022 annual bonus set by the Committee were based on adjusted EBITDA (two-thirds) and strategic/operational measures

(one-third) with a maximum opportunity of 150% of salary. The Committee confirms that no performance target has been adjusted in the year

for any reason.

Notwithstanding the challenging targets and the tough operating environment, the adjusted EBITDA measure was achieved in full as the adjusted

EBITDA (adjusted for budgeted exchange rates) of £134.9 million exceeded the maximum EBITDA target of £126.8 million.

The Committee also assessed that 100% of maximum for the strategic/operational measures would pay out reflecting the strong strategic

progress made during 2022 (full details of this assessment are set out on pages 106 to 109.

In total, the overall bonus payout was 100% of maximum and 150% of salary for both Executive Directors, versus a maximum opportunity of

150% of base salary. In line with Policy, 100% of salary will be paid in cash and 50% of salary will be deferred into shares on a net of tax basis.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Part A: annual statement continued

Remuneration outcomes for 2022 continued

Annual bonus outcome continued

In determining the payouts under the annual bonus plan for the

Executive Directors, the Committee has been mindful not only of the

formulaic outcome against the targets set, but also of the underlying

performance of the business. Specifically, the Committee took account

of the following factors:

• The Company achieved another outstanding set of financial results

with substantial year-on-year growth in all its financial KPIs.

• The Company paid its final dividend for 2021 to shareholders.

Thefull year dividend for the year ended 31 October 2022 increased

by 18.7% from 25.1 pence to 29.8 pence.

• The Company-wide bonus pool has increased by 8.8%, including

the £500 cost of living payment in October 2022 to ease

financial hardship.

On this basis, the Committee felt comfortable that the formulaic bonus

outcome reflected the individual Executive Director and Company

performance. As a result, the Committee determined that no overriding

discretion will be applied to the bonus outcome. The Committee noted

that, in recent months, Safestore’s share price has fallen, but that corporate

performance continues to be excellent, and the value ofits real estate

portfolio remains stable.

Long Term Incentive Plans

2017 LTIP – Relative TSR element performance measurement

The five-year performance period of the relative TSR element of the

2017 LTIP ended on 28 September 2022; relative TSR performance

accounts for one-third of the award with 50% of the element measured

against the constituents of the FTSE 250 Index excluding Investment

Trusts and the remaining 50% is measured against the FTSE 350

Supersector Real Estate Index.

Safestore’s TSR growth was 189.2% over the five-year performance

period to 28 September 2022 and was significantly in excess of the upper

quartile of both peer groups (32.8% and 54.2% for the FTSE 250 Index

excluding Investment Trusts and FTSE 350 Supersector Real Estate

Index respectively), which equates to maximum vesting. Given that the

Committee confirmed that the Cash on Cash Return underpin had been

satisfied as at 31 October 2021, the performance targets under the

relative TSR element were met in full. Therefore, taking account of the

EPS element which represented two-thirds of the award, and under

which 100% of the awards were earned in the year ended 31 October

2021, the final vesting level for the 2017 LTIP was determined by the

Committee to be 100%.

The purpose of the introduction of the 2017 LTIP was to focus 56

colleagues to drive sustainable growth over a five-year period. The

Committee believes that the awards which vested in September 2022

for the Executive Directors and their colleagues are commensurate

with the corporate success of the Company achieved over this period

as follows:

• The Company’s financial success has flowed through to shareholder

returns such that since the start of the EPS performance period on

1November 2016 the Company’s market capitalisation has increased

by £1.162 billion, with £229 million of dividend payments made.

• The successful execution of strategy has created a unique business

model that combines advanced digital marketing and pricing analytics,

a well-located portfolio with extensive pipeline, and a focus on store

team sales skills.

• The management team has successfully built a larger and more

diversified business, expanding operations into Spain and Benelux,

and ensuring that all parts of the Company are run in a

sustainable manner.

• Financial success has been achieved in parallel with the Company

receiving several accolades in relation to its colleague initiatives,

ESG performance, and consistently outstanding customer

feedback scores.

On this basis, a further 666,667 and 446,667 shares vested for the CEO

and CFO in respect of the relative TSR element, meaning that in total 2

million shares for the CEO and 1.34 million shares for the CFO

vested

under the 2017 LTIP and became exercisable on 29 September 2022.

The Executive Directors also became entitled to dividend equivalents

on these shares when they vested based on the value of dividends

paid between the grant and vesting dates of the award. The share

price at the date of vesting was £7.94, representing an increase of

82% since the date of grant. The value of the shares vesting under

the relative TSR element and the associated dividend equivalents has

been included in the single figure of remuneration table for the year

ended 31 October 2022. The value of the awards vested under the

EPS element of the 2017 LTIP included in the single figure of remuneration

table for the year ended 31 October 2021 has been restated to include

the actual dividend equivalents paid between the grant date and the

vest date and the share price on vesting.

I am delighted that the wider team of 56 colleagues who participated

inthe 2017 LTIP will also benefit from the awards in line with their

exceptional performance.

2020 LTIP – EPS and Relative TSR element

performancemeasurement

The performance period of the EPS element of the 2020 LTIP ended

on 31 October 2022; EPS performance accounts for two-thirds of the

award. On that basis, the Committee measured the Company’s EPS

growth and Cash on Cash Return in relation to the underpin over the

three-year performance period. Adjusted Diluted EPRA EPS increased

by 18.6% p.a., significantly ahead of the 8% p.a. growth required for

maximum vesting. The average Cash on Cash Return over the same

period was 11.9% which also exceeded the 8% underpin target

resulting in 100% of the awards being earned under the EPS element

of the 2020 LTIP.

The final vesting level for the 2020 LTIP will not be determined by the

Committee until the vesting date of 18 March 2023, with the balance

ofawards subject to the Company’s relative TSR performance

measured over the three-year period ending on 17 March 2023. As at

31 October 2022, Safestore’s TSR growth is in excess of the upper

quartile of both the FTSE 250 excluding Investment Trusts and FTSE 350

Supersector Real Estate Index peer groups which would equate to

maximum vesting. Therefore, the Committee confirms that it expects the

awards to vest in full and will consider whether the formulaic outcome

is in line with underlying Company performance at the vesting date.

The value of the 2020 LTIP awards expected to vest in March 2023,

plus an estimate of the value of dividend equivalents accrued to

31 October 2022, has been included in the single figure of remuneration

table for 2022 on the basis that the relative TSR performance period

has been substantially completed.

Annual bonus deferred shares

Deferred bonus award nil-cost options granted in respect of annual

bonus earned in the year to 31 October 2019 under our previous

remuneration policy vested on 1 November 2021. This amounted to

22,982 nil-cost options for the CEO and 16,375 nil-cost options for

theCFO, including dividend equivalents.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

2022 LTIP grant

The Committee made a grant of nil-cost option awards under the 2020

LTIP on 25 January 2022. In line with Policy the awards had a face

value of 200% of base salary, vesting over three years subject to

Adjusted Diluted EPRA Earnings per Share growth (two-thirds of the

weighting) and relative TSR (one-third of the weighting) performance

criteria, together with a Cash on Cash Return underpin. The awards

were also subject to a two-year post-vesting holding period. The

Committee will have overriding discretion to change the formulaic

outcome (both downwards and upwards) if it is out of line with the

underlying performance of the Company.

Full details of the performance conditions attached to the awards can

be found in the annual report on remuneration on pages 111 and 112.

Non-Executive Directors’ fees

The Executive Directors recommended to the Board that Non-Executive

fees should rise by 3% from 1 May 2022, with base fees increasing to

£57,680 and Committee Chair fees increasing to £10,815. The Chairman’s

fee has been increased by 18.6% to £220,000. The Committee deemed

this level of increase necessary given that the fee was significantly below

market competitive levels and was not reflective of the significant time

commitment required for the role. The fee remains below the median

Chairman fee of both the FTSE 250 and FTSE 350 Supersector Real

Estate Index peer groups and is now positioned in a consistent manner

with our other non-executive fees.

Wider workforce pay

Safestore’s pay principles were reviewed during the year and continue

to set out a framework for making decisions on colleagues’ pay. Reward

packages consist of a combination of fixed and variable elements,

including base pay, a pay-for-skills model, performance related pay,

bonus and pension. In the UK, we also operate an annual all-colleague

share plan to foster the culture of ownership, reflecting our remuneration

principles by rewarding colleagues for the successful execution of

strategy over a multi-year horizon. We are delighted that many UK

colleagues are enrolled in our Sharesave plan, with 48% participating

in our most recent scheme.

The Committee receives remuneration information from across the

Group regarding annual salary reviews, bonus, gender pay gap and

CEO pay ratios, together with the principles that are applied in relation

to broader incentive schemes, and how these align with culture. We

recognise that it is critical for our colleagues to feel valued as well as

to be paid fairly.

I am pleased that we have continued to invest in our reward offering for

the wider workforce through a higher average workforce salary increase,

on average 6.9%, with targeted above market increases for selected

roles and a £500 cost of living payment to ease financial hardship over

the winter period. We also introduced our new healthcare cash plan,

provided by Medicash, providing colleagues with everyday

reassurance on their health and wellbeing.

Our approach to colleague engagement through our formal workforce

advisory panel is now fully embedded. Our 15 People Champions

continue to engage directly with the CEO on a wide range of subjects

including remuneration.

In addition, the CEO also ran two virtual town hall sessions where

colleagues had the opportunity to raise questions, discuss business

issues and provide feedback. As a result of the aforementioned

Sharesave plan, a significant portion of colleagues are shareholders

meaning that they are also able to express their views in the same way

as other shareholders. Please see the section on our communication

with colleagues for more information.

Our 2021 median gender pay gap of 5.2% remains significantly below

the UK average* (15.1%), but we know we still have work to do. Our

colleague engagement levels show that people enjoy working at Safestore,

but high retention, particularly in more senior roles, means the pace of

change is slower than we would like. We would like to see more women

at Safestore; our aim is to attract 40% female applicants, and we are

working hard on attracting, retaining and supporting women in our

workforce. However, in the short term, this does negatively impact our

gender pay gap and therefore we know we must combine this with

working hard to support the development of all women at Safestore.

We have also published our CEO pay ratio for the fourth time in line

with the reporting regulations. The Committee acknowledges that the

ratio is significantly higher in 2021 and 2022 versus 2019 and 2020,

given that the value of the 2017 LTIP EPS element is included in 2021

and the value of the 2017 LTIP relative TSR element is included in 2022,

compared to 2019 and 2020 when no long term incentives were earned.

I am also exceptionally proud that we were awarded the prestigious

Investors in People (“IIP”) Platinum accreditation last year and we

continue to strive for excellence in this area.

Note

* Office for National Statistics, Gender Pay Gap 2021 Dataset, ons.gov.uk.

Summary

Overall, the Company has continued to deliver excellent performance

during 2021/22. The Committee believes that the 2022 remuneration

outcomes are appropriate and reflective of the business performance

and the wider economic and social context.

We will continue to work on the design of the new Policy to ensure it

will be fit for purpose for the next three years as it is fundamental to

helping us achieve continued strong business performance. The new

Policy will therefore be recommended to shareholders at a General

Meeting to be held in 2023. We will also be asking shareholders to

votein favour of our Directors’ remuneration report at our 2023 AGM;

Iwould welcome any feedback or comments on this report or our

remuneration principles and look forward to receiving any written

questions ahead of our AGM. You will find details of the conference

facility and how to submit written questions on our website at

www.safestore.co.uk/corporate.

The Board would like to thank the shareholders that took part in our

engagement around the time of the 2022 AGM and values the process,

feedback and insights it has gained. We will continue to engage with

shareholders and their representative bodies on remuneration and

other governance matters, and thank all our shareholders for their

continued support on remuneration matters.

I would also like to take this opportunity to thank my predecessor as

Remuneration Committee Chair, Claire Balmforth, for her leadership

and for steering the Committee with a strong set of policies and

practices upon which our decisions can be made.

Finally, I want to recognise that the Company’s performance would

notbe possible without the resilience shown by our colleagues. To all

colleagues – thank you for your hard work and commitment to making

Safestore the strong business it remains today.

Approved by the Board on 16 January 2023 and signed on its

behalfby:

Laure Duhot

Chair of the Remuneration Committee

16 January 2023

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Part B: Our remuneration at a glance

Ahead of the annual report on remuneration, we have summarised below the key elements of our current Policy approved at the AGM held on

18March 2020. At the date of drafting this report, the Committee is still in discussions around the details of the new Policy. Despite this, we set

out below, where possible, a summary of how we intend to implement Policy in 2023. Further details will be included with the full Policy to be

circulated ahead of the General Meeting later in 2023. We also summarise the key remuneration outcomes for 2022.

Our full Policy can be found on the Safestore website at www.safestore.co.uk.

Summary of our Directors’ Remuneration Policy and planned implementation of Policy for 2023

Element Key features of Policy approved at 2020 AGM Implementation for 2023

Executive Directors Frederic Vecchioli Andy Jones

Base salary

Reflects an individual’s responsibilities, experience and role.

It is anticipated that salary increases will generally be in line with

the colleague population.

In certain circumstances the Committee has discretion to make

appropriate adjustments to salary levels. Such circumstances

could include where an Executive Director is paid significantly

below the market rate or there is a change in role or responsibilities.

Base salary of £454,579.

(3% increase in May 2022).

Base salary of £323,887.

(3% increase in May 2022).

The increases were significantly below the average for

the general workforce (6.9%). Both salaries remain below

both the FTSE 250 and FTSE 350 Supersector Real

Estate Index lower quartiles.

Benefits

and pension

Maximum contribution to pension scheme or cash in lieu is

equal to 10% of salary.

New hires will receive the pension contribution received by the

majority of the workforce (the average employer contribution

rate is currently 4.1% of salary).

Market-competitive benefits package provided.

Executive Directors will receive a pension cash

supplement of 4.1% of salary in line with the average

workforce contribution level.

Benefits in line with Policy.

Annual bonus

Maximum award equal to 150% of salary per annum.

Performance measures are two-thirds financial and one-third

strategic/operational, with a financial underpin ensuring no

payout for strategic/operational element if financial performance

is below threshold.

Payout for threshold performance is 20% of maximum and for

target performance is 50% of maximum.

Any bonus in excess of 100% of salary will be held in shares

on a net of tax basis (referred to hereinafter as restricted shares).

The restricted shares will be held by the Executive Directors by

agreement and are subject to a two-year holding period that

expires on the second anniversary of the end of the financial

year in which the bonus was earned. Malus provisions apply

during the holding period and claw-back provisions apply for

three years thereafter.

Dividend equivalents are payable on restricted shares.

The Committee will continue to have overriding discretion to

change formulaic outcomes (both downwards and upwards) if

they are out of line with underlying performance of the Company.

No planned change to maximum opportunity of 150%

ofsalary.

Performance measures, deferral, their weighting and the

payout curve are as described in the column to the left.

Specific targets and their achievement, where not

deemed commercially sensitive, will be disclosed in the

2023 annual report on remuneration. To be confirmed

at the time that approval is sought for the new Policy.

LTIP

Annual award of nil-cost options of up to 200% of salary.

Vesting period of three years followed by a holding period of

two years, via an agreement with the Executive (during which

any vested and exercised awards cannot be sold except for

tax withholding purposes on exercise).

Two-thirds of award subject to Adjusted Diluted EPRA Earnings

per Share growth and one-third subject to relative TSR

balanced equally against the FTSE 250 (excluding Investment

Trusts) and the FTSE 350 Supersector Real Estate Index. 8%

p.a. Cash on Cash Return underpin.

25% vesting for threshold performance increasing on a straight

line to 100% for maximum performance.

Dividend equivalents are payable on vested shares.

The Committee will have overriding discretion to change

formulaic outcomes (both downwards and upwards) if they

are out of line with underlying performance of the Company.

As described in the Annual Statement of the Chair of

the Remuneration Committee on page 89, we are

undergoing a review of the new Directors’ Remuneration

Policy. To the extent that there are any changes, these

areexpected to relate to the long term incentive

arrangements only.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Element Key features of Policy approved at 2020 AGM Implementation for 2023

Executive Directors Frederic Vecchioli Andy Jones

Shareholding

guidelines

Executive Directors are expected to meet the guidelines by

29September 2022 (the vesting date of the 2017 LTIP) or five

years after joining, if later.

Vested but unexercised awards on a net of tax basis and

beneficially owned and restricted shares would count towards the

shareholding guidelines.

These guidelines will continue to apply for two years post cessation

of employment. For the avoidance of doubt shares beneficially

owned at the date of adoption (18 March 2020) of the current

Policy and the 2017 LTIP award will be exempt from this post

cessation of employment guidelines but all share-based awards

granted under the current Policy approved by shareholders at the

2020 AGM would be captured.

Currently 350% of salary for the CEO and CFO, however,

shareholding guidelines are being reviewed as part of

thenew Directors’ Remuneration Policy.

Chairman and Non-Executive Directors

Fees

Non-Executive Directors may receive a base fee and

additionalfees for chairing a Committee or being the

SeniorIndependent Director.

The Chairman’s fee: £220,000.

Non-Executive base fee: £57,680.

Committee Chair and SID fee: £10,815.

Non-Executive Director fees were increased below the

general workforce increase in May 2022.

Following the benchmarking review for the Non-Executive

Directors’ fees completed in 2021, this year we completed

a similar benchmarking exercise for the Chairman’s fee.

The Chairman’s fee was increased by 18.6% to £220,000.

The Committee deemed this level of increase necessary

given that the fee was significantly below market

competitive levels and was not reflective of the significant

time commitment required for the role. The fee remains

below the median Chairman fee of both the FTSE250

and FTSE 350 Supersector Real Estate Index peer groups.

Executive Directors are eligible to receive payment under any award made prior to the approval and implementation of the current Policy

summarised in this report including under the existing 2017 LTIP. For the avoidance of doubt, it is noted that the Company will honour any

commitments entered into that have been disclosed previously to shareholders.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Part B: Our remuneration at a glance continued

Business performance and incentive outcomes in 2022

KPI Measured in 2022 performance 2022 incentive outcome

Underlying EBITDA growth

in2022

Annual bonus 14.5%.

Adjusted Diluted EPRA

Earnings per Share growth

over three years to

31October2022

2020 LTIP 66.7%, i.e. 18.6% per annum.

TSR growth over five years

to28September 2022

2017 LTIP Safestore 189.2%.

Upper quartile of:

• FTSE 250 Index excluding Investment Trusts = 32.8%; and

• FTSE 350 Supersector Real Estate Index = 54.2%.

Optimisation of performance

ofexisting portfolio

Annual bonus As an Investors in People Platinum accredited organisation, our

focus on our colleagues and culture has enabled us to continue

to deliver sustainable business performance.

With the removal of Covid-restrictions, the time spent on training

across the business has increased to over 30,000 hours.

Delivered technical and content improvements to website platforms:

• finalised migration of all EU websites to one unified web

platform; and

• implemented new Google Analytics (GA4) across all

Group sites.

Enriched pricing and contracting solutions allowing standardisation

and improvement across the Group. In addition, completed data

centre consolidation from five to two Group locations.

Strong and flexible

capitalstructure

Annual bonus The Company’s strong capital structure continued to allow it to

take advantage of opportunities across the Group in order to

deliver incremental earnings growth over the longer term.

The Group’s free cash flow (before investing and financing

activities) increased from £89.5 million to £101.4 million for the

year ended 31 October 2022.

During Q3, the Group commenced the refinancing of our existing

Revolving Credit Facilities (“RCF’s”) which were due to expire in

June 2023. The Group completed this refinancing just after year

end in early November 2022. The previous £250 million Sterling

and €70 million Euro RCF’s have been replaced with a single

multi-currency £400 million facility, with a further £100 million

uncommitted accordion facility, providing further capacity for

medium term growth.

Take advantage of

selectiveportfolio management

and expansion opportunities

Annual bonus Completed EPS accretive acquisition of remaining 80% of equity

owned by Carlyle in the Benelux Joint Venture Acquired new

development opportunities in the UK, France, Spain and the

Netherlands, in addition to opening new stores and completing

store extensions in various locations.

ESG Annual bonus Continued external recognition of ESG achievements and

disclosures through thefollowing:

• EPRA Sustainability BPR Silver Award

• GRESB Public Disclosure A

• MSCI ESG ‘AA’

• Support the Goals – 5*

Developed a strategy setting out our approach to further support

diversity and inclusion.

Key:

Threshold or below Threshold to target Target to maximum

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

This resulted in the following incentive outcomes:

• Based on the performance levels set out above, 100% of maximum was achieved in relation to the EBITDA measure and 100% of maximum

for the strategic/operational element, noting that the EBITDA threshold financial gateway had been met.

• The Committee determined that this formulaic outcome was representative of overall performance; as a result, the 2022 annual bonus payout

for the Executive Directors was 100% of maximum. The factors considered by the Committee are set out on pages 90 to 93 of the

Remuneration Committee Chair’s annual statement and the annual report on remuneration.

• In line with the approved Directors’ Remuneration Policy, any bonus payment above 100% of salary will be held in shares for two years on a

net of tax basis.

• The performance period of the relative TSR element of the 2017 LTIP, which accounts for one-third of the award, ended on 28 September

2022. Safestore’s performance in excess of the upper quartile of both peer groups, combined with satisfying the Cash on Cash Return

underpin, resulted in the performance targets under this element being met in full. Therefore, taking account of the EPS element which also

fully vested representing two-thirds of the award, the final vesting level for the 2017 LTIP was determined by the Committee to be 100%.

• The Committee believes that the awards that vested in September 2022 for the Executive Directors and their colleagues are commensurate

with the corporate success that the Company achieved over the five-year performance period (as set out on pages 91 and 92 of the

Remuneration Committee Chair’s annual statement and the annual report on remuneration).

• The performance period of the EPS element of the 2020 LTIP ended on 31 October 2022 which accounts for two-thirds of the award. Adjusted

Diluted EPRA EPS increased by 18.6% p.a., significantly ahead of the 8% p.a. growth required for maximum vesting and the average Cash on

Cash Return over the same period was 11.9% which also exceeded the 8% underpin target. Therefore, the formulaic outcome of this element

is that 100% of the awards have been earned.

• The final vesting outcome for the 2020 LTIP will not be determined by the Committee until the vesting date of 18 March 2023, with the balance

of awards subject to the Company’s relative TSR performance measured over the three-year period ending on 17 March 2023 being earned.

As at 31 October 2022, Safestore’s TSR growth is in excess of the upper quartile of both peer groups which would equate to maximum vesting.

Therefore, the Committee confirms that it expects the awards to vest in full and will consider whether the formulaic outcome is in line with

underlying Company performance at the vesting date.

• The Committee is comfortable that the current Policy operated as intended and that the overall 2022 remuneration earned by the Executive

Directors was appropriate.

Remuneration in the wider context

Context to our Executive Director remuneration in light of wider workforce considerations:

• The wider workforce predominantly has access to competitive bonus arrangements, can participate in all-colleague share plans and/or

recognition schemes and is eligible to be auto-enrolled into the Safestore Group Personal Pension Plan.

• The wider workforce pay principles have been reviewed, leading to further increases in salaries and benefits, including an average workforce

salary increase of 6.9% during the year.

• Alignment of Executive Director and general workforce pension contributions from May 2021.

• The Company-wide bonus pool has increased by 8.8%, including a further £500 cost of living payment in October 2022 to ease

financial hardship.

• Participation in our SAYE remained well above typical levels at 48%.

• Following the removal of Covid-restrictions, the wider workforce has benefited from an increase in training hours.

• Safestore’s 2021 UK median gender pay gap is 5.2%.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Part C: Annual report on remuneration

The 2022 annual report on remuneration contains the details of how the Company’s Policy was implemented during the financial year ended

31October 2022. An advisory resolution to approve this report and the Remuneration Committee Chair’s annual statement will be put to

shareholders at the 2023 AGM.

Pay fairness

To attract and retain the highest calibre individuals, we aspire to become the employer of choice within our sector, maintaining a competitive

reward package that balances fairness to the colleague with the responsible use of shareholders’ funds.

The colleague value proposition

We review our pay principles, which set out a framework for making decisions on colleagues’ pay, annually. The aim is to:

• support the recruitment and retention of high quality colleagues;

• enable us to recognise and reward colleagues appropriately for their contribution;

• help to ensure that decisions on pay are managed in a fair, just and transparent way; and

• create a direct alignment between Company culture and our reward strategy.

As part of our commitment to fairness, we have set out further information about our colleague offering. The various factors which make up our

colleague value proposition are set out below:

Pay and benefits

• We pay all our colleagues above the over-23 National Living Wage

rate, regardless of their age. The average annual salary for our store

sales colleagues is £23,904, over £4,140 above the current National

Living Wage for an over-23 year old on a 40-hour contract.

• All our sales colleagues are eligible for our performance-based

monthly bonus scheme and can earn up to 50% of their monthly

salary. Our Head Office colleagues are eligible to receive a

discretionary annual bonus, which is calculated against business

targets and objectives.

• For 2022, the bonus pool increased by 8.8% and bonus payouts were

increased for all roles commensurate with Company performance.

• Colleagues can join our Sharesave scheme on an annual basis for a

fixed three-year term. Membership for our 2022 offering was 48% of

the eligible population.

• Under the 2022 LTIP 70 key colleagues were invited to participate,

allowing them to share in the success of the Company. The

performance conditions for below Board-level colleagues are the

same as those for the Executive Directors.

• All eligible colleagues are auto-enrolled into the Safestore Group

Personal Pension Plan provided through Scottish Widows with a

minimum employer contribution rate of 4% of salary.

• Additional benefits include private healthcare cover, healthcare cash

plan, discounted gym membership, life insurance from day one of

employment, paid holiday allocation and a Cycle to Work scheme.

• Our family friendly policy means we offer new mothers twelve weeks’

full pay and new fathers two weeks’ full pay, as well as sending new

parents a beautiful gift when their child is born.

Working environment

• Our leadership teams have created an environment where our

managers and leaders are provided with the skills, tools and,

crucially, time to dedicate to their teams. This has been achieved

through maintaining good colleague–manager ratios; for example,

no Regional Manager oversees more than twelve stores.

• Our ‘Make the Difference’ people forum, launched in 2018, is a

formal workforce advisory panel which enables frequent opportunities

for us to hear and respond to our colleague voice. We drive change

and continuous improvement in responding to the feedback we

receive, via our internal communications channels and through our

network of People Champions.

• We have a comprehensive Colleague Assistance Programme where

our teams can find guidance on coping strategies. They can speak

to a professional who is ready to support and guide them through

any concerns they have; in addition, for those who need it, they can

access up to five counselling sessions.

• We support a healthy work–life balance through offering a Company

sick pay scheme and encouraging all team members to take their rest

breaks. We welcome and consider all requests for flexible working

and at-home working, where appropriate.

• We know our people as individuals, and show respect for each other,

enabling everyone to have a voice so that they can bring their full,

unique selves to work.

• We are committed to providing an inclusive workplace and

encouraging and welcoming diversity with a zero tolerance of

harassment and discrimination. More detail can be found in our

People Principles document online.

• Our strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion

atSafestore.

Safestore Holdings plc | Annual report and financial statements 2022

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Development opportunities

• We have built an environment where it’s natural for us to give regular,

honest feedback and to coach in the moment. We go beyond

mandatory training to promote life-enhancing learning where

everyone can continually evolve.

• In 2022 we invested over 30,000 hours into developing our people.

From online learning modules to face-to-face sales training, every

one of our colleagues can take part in structured learning.

• We offer health and safety training including first aid, forklift and

fire safety.

• Our Store Manager Development programmes offer the opportunity

to gain a nationally recognised qualification from either the Institute of

Leadership & Management (“ILM”) or the Chartered Management

Institute (“CMI”) utilising the Apprenticeship Levy.

• Our Senior Leadership Development programme ‘LEAD Academy’)

supports a Level 5 Management and Leadership apprenticeship.

• Furthermore, we have relaunched our Graduate Programme, with our

first intake commencing in October 2022, providing an opportunity for

newly qualified graduates to build their skill set and experience into a

career with Safestore.

Recognition

• We recognise great performance and behaviours through our

annual appraisal process.

• Our values, created by our store teams, are at the heart of

everything the organisation does.

• The values are accompanied by a set of behaviours and everyone

is assessed against these every six months.

• To show our appreciation for the commitment and performance of our

colleagues, we made exceptional payments totalling £1,000 to every

colleague: £500 in December 2021 as a thank you for their contribution

during the pandemic; and a further £500 cost of living payment in

October 2022 to ease financial hardship.

• Our annual pay review/bonus schemes are based on individual

performance ratings.

• We also reward our sales consultants for completion of training

modules through a pay-for-skills approach.

Informing the Committee on the wider workforce

To build the Remuneration Committee’s understanding of reward arrangements applicable to the wider workforce, the Committee is provided

with data on the remuneration structure for management level tiers below the Executive Directors and pay outcomes for these roles. The

Committee has also been provided with feedback from the formal workforce advisory panel, in addition to the Investors in People survey, which

provides further context for the Committee in making decisions on future pay outcomes in line with Policy. The Committee uses this information

to ensure consistency and fairness of approach throughout the Company in relation to remuneration.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Pay fairness continued

Alignment with Provision 40 of the Corporate Governance Code and Company strategy

The table below sets out how the current Policy addresses the factors in Provision 40 of the Corporate Governance Code, the objective of which

is to ensure that the remuneration arrangements operated by the Company are aligned to all stakeholder interests including those of shareholders.

Factor How this was addressed in the Remuneration Policy

Clarity

Remuneration arrangements should be transparent and promote

effective engagement with shareholders and the workforce.

This was addressed through our commitment to full transparency and

engagement with our shareholders in relation to the Policy.

The Company engages directly with the broader colleague population on

their remuneration through a variety of methods including the workforce

advisory panel and town hall events led by the CEO.

Simplicity

Remuneration structures should avoid complexity and their rationale and

operation should be easy to understand.

Taking on board shareholder feedback, we reverted to a traditional LTIP

construct in 2020, which is well understood by shareholders and

participants alike.

Risk

Remuneration arrangements should ensure reputational and other risks

from excessive rewards, and behavioural risks that can arise from

target-based incentive plans, are identified and mitigated.

Identified risks have been mitigated as follows:

• deferring an element of bonus into shares and requiring a two-year

holding period for LTIP share awards helps ensure that the performance

related awards are sustainable and thereby discourages short term

behaviours;

• aligning any reward to the agreed strategy of the Company;

• reducing the awards or cancelling them through malus and claw-back

provisions if the behaviours giving rise to the awards are

inappropriate; and

• reducing annual bonus or LTIP awards (made under the current

Policy) or cancelling them, if it appears that the criteria on which the

awards were based do not reflect the underlying performance of

the Company.

Predictability

The range of possible values of rewards to individual Directors and any

other limits or discretions should be identified and explained at the time

of approving the Policy.

The Committee undertook external benchmarking of the current Policy

(see page 92 of the 2021 DRR) which determined that current packages

would pay out below the median for FTSE 250 companies on a

reasonable range of performance outcomes.

The Remuneration Policy in the 2019 DRR sets out the potential

remuneration available in several performance scenarios.

The Committee is comfortable that the discretions available to it as set

out in the current Policy are sufficient.

Proportionality

The link between individual awards, the delivery of strategy and the long

term performance of the Company should be clear. Outcomes should

not reward poor performance.

One of the key strengths of the current approach of the Company to

remuneration is the direct link between strategy and the value received

byExecutive Directors.

Please see the schematic below which sets out in detail the link between

Company strategy and the performance measures in the current

incentivearrangements.

Alignment to culture

Incentive schemes should drive behaviours consistent with Company

purpose, values and strategy.

The 2020 LTIP rewards long term sustainable performance which is a key

tenet of the Company’s strategy, purpose and values as set out in our

Sustainability report on page 46.

Safestore Holdings plc | Annual report and financial statements 2022

100

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

In line with the proportionality factor from Provision 40 of the Corporate Governance Code set out above, the Committee designed the incentive

arrangements such that they were closely aligned with Company strategy as set out in the schematic below:

LTIP

Optimising the trading

performance of existing portfolio

Maintaining a strong and

flexiblecapital structure

Selective portfolio management

and expansion opportunities

What does success look like?

How do we measure progress against our objectives?

• First class digital marketing expertise

• Motivated and effective store teams

benefiting from improved training

andcoaching

• Central revenue management

andcostcontrol

• A capital structure appropriate

forourbusiness

• Flexibility to take advantage

ofcarefully evaluated development

and acquisition opportunities

• Successful store openings

• Strong pipeline for future openings

• External recognition of ESG efforts

• Independent customer

service survey

• People engagement survey results

• Assessment of online

marketingenhancement

• Occupancy management

enhancement

• Free cash flow

• Key capital cover ratios

• Increased ability to pay dividends

• Successful store openings

ontime/budget

• Strong pipeline for future openings

• Increased portfolio valuation

• Continued successful execution of strategy should lead to shareholder value creation measured over three years by

Adjusted EPRA EPS growth and TSR relative to FTSE 250 and sector peers

All feed through to KPI = EBITDA growth

Annual

bonus

Strategic and

operational

Financial

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

101

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Pay relativities

Internal – CEO pay ratio

Our CEO to colleague pay ratios for 2022 are set out in the table below. We also provide the 2019–2021 data for comparison purposes.

Financial year Method used 25th percentile pay ratio 50th percentile pay ratio 75th percentile pay ratio

2019 Option B (gender

paygap data)

60:1

Total pay and benefits: £19,067

Salary: £17,197

55:1

Total pay and benefits: £20,669

Salary: £18,175

37:1

Total pay and benefits: £31,278

Salary: £25,029

2020 Option B (gender pay

gap data)

49:1

Total pay and benefits: £22,820

Salary: £18,500

41:1

Total pay and benefits: £27,244

Salary: £24,240

32:1

Total pay and benefits: £34,857

Salary: £30,852

2021* Option A 554:1

Total pay and benefits: £23,502

Salary: £19,540

500:1

Total pay and benefits: £26,019

Salary: £19,540

365:1

Total pay and benefits: £35,686

Salary: £28,829

2022 Option A 350:1

Total pay and benefits: £24,031

Salary: £20,300

313:1

Total pay and benefits: £26,849

Salary: £21,100

228:1

Total pay and benefits: £36,939

Salary: £30,556

Note

* 2021 ratios have been updated in line with the restated CEO single figure of remuneration for 2021.

For 2021 and 2022, the Company has chosen methodology Option A for the calculation, which takes into consideration the full-time equivalent basis of all UK

employees and provides a representative result of employee pay conditions across the Company. In 2019 and 2020, the Company used methodology option

B. However, given the guidance by several shareholders that option A is preferred, we updated our methodology to maintain market best practice disclosures.

The CEO remuneration figure is as shown in the Executive Directors’ remuneration table on page 105. The remuneration figures for the employee

at each quartile were determined as at 31 October 2022. Each colleague’s pay and benefits were calculated using each element of employee

remuneration, consistent with the CEO, on a full-time equivalent basis. This therefore included the following elements of pay:

• base salary;

• private medical insurance;

• car/car allowance;

• fuel allowance;

• employer pension contribution;

• annual bonus;

• overtime and extra pay;

• 2017 LTIP relative TSR element and 2020 LTIP; and

• Sharesave.

No components of pay have been omitted. The following estimates and adjustments were made:

• For new joiners, salary and benefits were annualised and bonus was calculated based on average payout for the relevant store.

• For colleagues on the annual bonus scheme, which pays out in January 2023, awards were estimated based on expected outcomes.

• Adjustments were made to achieve full-time equivalent rates.

As our Sales Consultants represent around 50% of our workforce, the 50th percentile employee may vary annually between a Sales Consultant

and a Store Manager. In 2021 and 2022, the 50th percentile employee was a Sales Consultant, resulting in similar pay and benefits, whereas in

2020 the 50th percentile employee was a Store Manager, and as a result the total pay and benefits were slightly higher.

The Committee recognises that the increased ratios in 2021 and 2022 result from the CEO’s single figure of remuneration increasing due tothe

inclusion of outcomes from the 2017 LTIP. The 2022 ratio also includes an estimated value for the 2020 LTIP. In 2019 and 2020 no long term

incentives completed their performance period, so none featured in the comparative figures. Therefore, the pay ratios for 2021 and 2022 do not

represent the fact that the 2017 LTIP is a one-off award which is measured over a five-year performance period. The Committee notes that the

75th percentile employee is below the seniority to receive a 2017 or 2020 LTIP award.

The above analysis demonstrates that the ratio is driven by the different structure of our CEO’s pay versus that of our colleagues, as well as the

composition of our workforce. This ratio varies between businesses even in the same sector. What is important from our perspective is that this

ratio is influenced only by the differences in structure, and not by divergence in fixed pay between the CEO and the wider workforce.

The Committee considers the 50th percentile pay ratio to be consistent with pay and progression policies for UK colleagues.

Safestore Holdings plc | Annual report and financial statements 2022

102

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Gender pay gap reporting and diversity

We are committed to providing an inclusive workplace and encouraging and welcoming diversity with a zero tolerance of harassment and

discrimination. More detail can be found in our People Principles document (online in the Governance section).

Advocating a diverse and inclusive workforce is a key part of our wellbeing strategy. We know our people as individuals, and show respect for

each other, enabling everyone to have a voice so that they can bring their full, unique selves to work.

At Safestore, men and women are paid equally for doing the same or similar work. Our bonus schemes are open to all job levels and colleagues

at the same level have the same bonus opportunity.

There has been a slight increase in our 2021 mean (average) gender pay gap. However, we are encouraged by the broader improvements:

• We have further improved our median gender pay gap by 3ppts.

• Our median gender pay gap is significantly below the UK average

of 15.1% at 5.2%.

• Levels of female representation within the upper pay quartile increased by 1.7ppts.

• Levels of female representation within the lower pay quartile decreased by 3.3ppts.

• We have improved our median bonus gap by 14ppts.

This year, we published our first Diversity and Inclusion Strategy, setting out our commitment to a fully inclusive culture. In addition, weobtained

further insight into our workforce diversity, using this data to inform beneficial action.

Note

1 2020 Office for National Statistics, Gender Pay Gap 2021 Dataset, ons.gov.uk.

Remuneration justification

The Committee is comfortable that the internal and external pay relativity reference points (set out in the 2021 DRR) provide justification that

thecurrent Policy is appropriate and notes that the new Policy will be presented for shareholder approval later in the 2023 financial year.

The Committee believes that the 2017 LTIP awards which vested for the Executive Directors and their colleagues in 2022 were commensurate

with the corporate success of the Company achieved over the performance period.

Communication with colleagues

During the year we communicated with colleagues and gathered their feedback in a number of ways as set out below:

Workforce Advisory Panel: As set out in the Committee Chair’s statement, in 2018 the Company established a formal workforce advisory panel

to facilitate engagement with colleagues. The panel has now been successfully embedded in the business. Our 15 People Champions have

continued to engage directly with the CEO across a wide range of subjects including remuneration. Appropriate feedback from these sessions

was presented to the Remuneration Committee, which the Committee considered when determining the remuneration levels for Executive

Directors in 2022. In addition, over the past few years feedback from the panel has resulted in the Remuneration Committee and Board approving

colleague benefits such as enhanced Company sick pay, improved healthcare provision, and more frequent opportunities to participate in

all-colleague share schemes.

CEO town hall events: The CEO also ran two virtual town hall sessions where colleagues had the opportunity to raise questions, discuss

business issues, and provide feedback on subjects including remuneration. As part of these events, colleagues were engaged on how the

Executive Directors’ remuneration policy aligned with the wider Company pay policy.

Colleague survey: Our management team and the workforce advisory panel reviewed the recommendations from our 2021 Investors in People

colleague survey, establishing improvements made and agreeing further actions with the aim of maintaining our leadership engagement score

of over 90%.

Communication with shareholders

The table below shows the results of the latest shareholder votes on the Directors’ remuneration report and Policy resolutions:

Votes for % Votes against % Votes withheld

2020 AGM vote on Remuneration Policy 167,676,057 97.89 3,615,427 2.11 87,100

2022 AGM vote on annual report on remuneration 129,213,061 72.15 49,876,689 27.85 1,422,562

Following this year’s AGM, the Board acknowledged that whilst we received strong support for the Director’s remuneration report from the

majority of our shareholders, it was only at 72.15%. The Chairman of the Board and the Senior Independent Director engaged with major

shareholders around the time of the 2022 AGM to understand the reason for the votes against. They concluded that the main reason was that

some shareholders who voted against the 2017 remuneration policy at its inception have a policy to vote against all future remuneration reports

that reflect its subsequent execution. From specific conversations it was clear that their vote against the report did not reflect a vote against either

the management or the Board and that they fully accept that the payouts reflect the outstanding value creation for all shareholders over the past

five years which has been of significant benefit to all our stakeholders.

As set out above, the Committee commenced a remuneration review during 2022 to determine the guiding principles and design of the proposed

Policy to be presented for shareholder vote during 2023. However, at the date of drafting this report, the Committee is still in discussions around

the details of the new Policy. Therefore, the new Policy will be presented for shareholder approval in the 2023 financial year, i.e. before 31 October 2023

at a General Meeting, in line with the relevant regulations.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

103

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Pay relativities continued

Chief Executive Officer and colleague pay

Total shareholder return and Chief Executive Officer pay over the last ten years

The chart shows the performance of a hypothetical investment of £100 in ordinary shares (as measured by the TSR for the Company) against

theFTSE 250 and FTSE 350 Supersector Real Estate indices over a period of ten financial years starting from 31 October 2012 through to

31October 2022. The FTSE 250 has been selected as an appropriate comparison index due to Safestore’s ranking within the FTSE in terms

ofmarket capitalisation. The FTSE 350 Supersector Real Estate Index has been selected as an appropriate comparator group as its major

sectorcompetitors are constituents of this index.

The chart also shows the increase in Adjusted Diluted EPRA (“ADE”) Earnings per Share from 31 October 2013 onwards as this figure was not

calculated by the Company before that date (see right-hand scale).

Total shareholder return and Adjusted Diluted EPRA (“ADE”) Earnings per Share (pence)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

TSR Value (£)

31/10/2012 31/10/2013 31/10/2014 31/10/2015 31/10/2016 31/10/2017 31/10/2018 31/10/2019 31/10/2020 31/10/2021 31/10/2022

1,400

1,500

1,600

1,300

1,200

1,100

1,000

900

800

700

600

500

400

300

200

100

ADE EPS (pence)

Safestore Holdings plc FTSE 250 Index FTSE 350 Supersector Real Estate Index ADE EPS

The chart also illustrates that the sustained EPS growth has resulted in significant TSR outperformance which is reflected in the bonus payouts

and vesting of the long term incentive awards over several years.

Oct 2013 Oct 2013 Oct 2014 Oct 2015 Oct 2016 Oct 2017 Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022

P D Gowers

F Vecchioli

F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli F Vecchioli

Role CEO CEO CEO CEO CEO CEO CEO CEO CEO CEO CEO

Single figure of total

remuneration (£’000) 910 359 973 1,224 1,481 1,728 1,719 1,134 1,108 13,020 8,408

Annual bonus

payout (% of max) 70% 70% 76% 100% 100% 82% 81% 91% 100% 100% 100%

LTIP earned

(%ofmax) — — 96% 100% 100% 100% 100% n/a n/a 100% 100%

Notes

1 Stepped down as Chief Executive Officer on 4 September 2013 and left the Company on 31 October 2013.

2 Appointed as Chief Executive Officer on 4 September 2013.

Safestore Holdings plc | Annual report and financial statements 2022

104

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Percentage change in Executive Director, Non-Executive Director and colleague remuneration

The table below shows the percentage change in remuneration of the Directors undertaking the roles of Chief Executive Officer, Chief Financial

Officer and Non-Executive Directors, together with average pay of the Company’s colleagues in the listed entity on a full-time equivalent basis.

% change from 2021 to 2022 % change from 2020 to 2021 % change from 2019 to 2020

Base salary/

fees Benefits

Annual

bonus

Base salary/

fees

Benefits

Annual

bonus

Base salary/

fees Benefits

Annual

bonus

F Vecchioli (CEO) 4% (3%) 3% 3% 0% 5% 1% 0% 11%

A Jones (CFO) 4% 2% 3% 3% 0% 5% 1% 0% 11%

D Hearn (NE Chair)

10% n/a n/a 19% n/a n/a n/a n/a n/a

I S Krieger (NED) 19% n/a n/a 22% n/a n/a 1% n/a n/a

C Balmforth (NED)

(35%) n/a n/a 12% n/a n/a 1% n/a n/a

G van de Weerdhof (NED)

14% n/a n/a 175% n/a n/a n/a n/a n/a

L Duhot (NED)

n/a n/a n/a n/a n/a n/a n/a n/a n/a

D Mousseau (NED)

n/a n/a n/a n/a n/a n/a n/a n/a n/a

J Bentall (NED)

n/a n/a n/a n/a n/a n/a n/a n/a n/a

Colleague pay 6.9% 0% 8.8% 4.2% 0% 20% 2.3% 0% 19%

Notes

1 The increases in 2021 to Non-Executive Director fees are a result of the increase to the base fee and Committee chairmanship fees and the Company starting to pay a Senior Independent

Director fee of £10,500. All increases were effective 1 May 2021.

2 The Chairman was appointed on 1 December 2019 so received a pro-rated fee for 2020.

3 C Balmforth stepped down as an independent Non-Executive Director on 31 May 2022 so received a pro-rated fee for 2022.

4 G van de Weerdhof was appointed on 1 June 2020 so received a pro-rated fee for 2020.

5 L Duhot was appointed as an independent Non-Executive Director on 1 November 2021.

6 D Mousseau was appointed as a Non-Executive Director on 1 November 2021.

7 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022 so received a pro-rated fee for 2022.

8 F Vecchioli dental insurance for two-twelfths only.

Relative importance of spend on pay

The table below sets out the overall spend on pay for all colleagues compared with the returns distributed to shareholders.

Significant distributions

2022 2021 % change

Colleague costs (£’m) 38.1 43.8 -13%

Distributions to shareholders (£’m) 56.9 42.6 34%

Notes

1. The above figures are taken from notes 10 and 26 to the financial statements.

2. The reduction is due to a lower share-based payment charge in 2022.

Executive Director remuneration for the year ended 31 October 2022

Single figure remuneration table (audited)

The remuneration of Executive Directors showing the breakdown between components with comparative figures for the prior financial year is

shown below.

Base salary

£’000

Taxable

benefits

£’000

Annual

bonus

£’000

Long term

incentives

3,4

£’000

Pension

£’000

Other

£’000

Total

£’000

Total fixed

remuneration

£’000

Total variable

remuneration

£’000

F Vecchioli (Chief

Executive Officer)

2022 448 23 682 7,218 18 19 8,408 489 7,919

2021 431 24 662 11,875 28 — 13,020 483 12,537

A Jones (Chief

Financial Officer)

2022 319 19 486 4,877 13 19 5,733 351 5,382

2021 307 19 472 7,929 20 — 8,747 346 8,401

Notes

1 Taxable benefits comprise a car allowance, private medical and dental insurance.

2 The 2021 and 2022 annual bonus figures include the portion subject to deferral.

3 The 2022 figure is the aggregate of the outcomes under the 2017 LTIP relative TSR element and the 2020 LTIP. The 2017 LTIP relative TSR element is valued as at the vesting date, i.e.

based on the closing share price on 29 September 2022 of £7.94, and includes dividend equivalents of £0.9665 per share accrued from the date of grant to the date of vest. The 2020

LTIP outcome has been valued based on the three month average share price to 31 October 2022 of £9.81 and includes dividend equivalents accrued from the date of grant to date.

Please see page 111 for further detail on the amount of the LTIP values attributable to share price appreciation.

4 The 2021 figure is the 2017 LTIP EPS element which has been restated. The figure shown has been valued as at the vesting date, i.e. based on the closing share price on 29 September 2022

of £7.94, and includes dividend equivalents of £0.9665 per share accrued from the date of grant to the date of vest.

5 Until 30 April 2021, the Executive Directors were provided pension payments in the form of a cash allowance of 10% of salary reduced by the associated employer’s National Insurance

contribution. From 1 May 2021, the pension cash allowance was reduced to 4.1% of salary in line with the average workforce pension contribution. No Executive Directors participate in

aGroup defined benefit or final salary pension scheme.

6 The other column refers to maturity of the 2019 (3YR) Sharesave. The value has been calculated as the gain at the maturity date, 1 September 2022, in excess of the 510 pence exercise price.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

105

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Annual bonus outcomes for the financial year ended 31 October 2022 (audited)

For 2022, the Executive Directors had a maximum annual bonus opportunity of 150% of salary. For each Executive Director, the 2022 annual

bonus determination measures were weighted two-thirds for adjusted EBITDA and one-third for strategic/operational measures. The achievement

ofthe strategic/operational measures was assessed by the Remuneration Committee as the financial gateway of outperforming the threshold

adjusted EBITDA target was met. The table below provides information on the targets for each measure, actual performance and resulting bonus

payment for each Executive Director:

Performance required

Actual performance

CEO

CFO

Measure Weighting

Threshold

(20% payout)

On target

(50% payout)

Maximum

(100% payout) Actual

% of element

payable

Achievement as

% salary

Bonus value

£’000

Achievement as

% salary

Bonus value

£’000

Adjusted

EBITDA

before

non-recurring

items

Two-

thirds

£120.6m £124.4m £126.8m £135.1m 100.0% 100.0% 455 100.0% 324

Strategic/

operational

measures

One-

third

Objectives based on

strategic/operational

See below 100.0% 50.0% 227 50.0% 162

Total bonus achieved in 2022 150.0% 682 150.0% 486

Note

1 Adjusted EBITDA before non-recurring items is equivalent to the reported EBITDA in the financial statements with French results translated at the budget rate of 1.18.

2022 annual bonus outcomes: strategic objectives

The Group’s proven strategy remains unchanged. We believe that the Group has a well-located asset base, management expertise, infrastructure,

scale and balance sheet strength to exploit the current industry dynamics. As we look forward, we consider that the Group has the potential to

further increase its EPS by: optimising the trading performance of the existing portfolio; maintaining a strong and flexible capital structure; and

taking advantage of selective portfolio management and expansion opportunities. Therefore, the Executive Directors’ strategic/operational

objectives reflect the Company’s priorities in these areas for 2022 as well as the Company’s ESG performance.

In line with our commitment to fully transparent disclosure of remuneration outcomes, the Executive Directors’ strategic/operational objectives

and their achievement are fully disclosed in detail below. The maximum opportunity under this element of the annual bonus is 50% of salary.

Objective Achievement Outcome Committee assessment

Optimisation of performance of existing portfolio (20% of salary)

Enhancing people

performance through

engagement and

improved capabilities

in order to increase

conversion of enquiries

into new lets.

As an Investors in People Platinum accredited organisation, our focus

onour colleagues and culture has enabled us to continue to deliver

sustainable business performance.

Highlights included:

• continuing to prioritise the health and wellbeing of our colleagues and

our customers;

• the number of hours spent on training across the business has

increased to over 30,000 hours following the removal of Covid-19

restrictions;

• established appropriate functional structures in order to support the

business for future growth; and

• 16 internal promotions from 2021 to 2022.

The Committee assessed

that the achievements of

the year were exceptional

and warranted full payout

for this element.

(20% out of 20% of salary).

Enhance search

visibility and website

performance to drive

new lets and marketing

spend in line with

budgeted expectations.

Delivered technical and content improvements to website platforms:

• finalised migration of all EU websites to one unified web platform; and

• implemented new Google Analytics (GA4) across all Group sites.

• Further evolution of paid marketing strategy driving efficiency across

the Group delivered through the implementation of best practices in

new territories;

• continued to develop PPC bidding strategies; and

• testing PPC account structures and implementing best practices.

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

Safestore Holdings plc | Annual report and financial statements 2022

106

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Objective Achievement Outcome Committee assessment

Optimisation of performance of existing portfolio (20% of salary) continued

Leverage Group

knowledge, experience

and resources to

improve productivity

and drive efficiencies.

• Enriched pricing and contracting solutions allowing standardisation

and improvement across the Group.

• Automation of operational and financial data transfer between

our systems.

• Data centre consolidation from five to two Group locations.

Strong and flexible capital structure (9% of salary)

Ensure the financial

flexibility exists to

deliver selected

development and

acquisition opportunities

whilst maintaining

conservative leverage

and a progressive

dividend policy.

The Company’s strong capital structure continued to allow it to take

advantage of opportunities across the Group in order to deliver

incremental earnings growth over the longer term.

Highlights included:

• the Group’s free cash flow (before investing and financing activities)

increased from £89.5 million to £101.4 million for the year ended

31October 2022;

• during Q3, the Group commenced the refinancing of our existing

Revolving Credit Facilities (“RCF’s”) which were due to expire in June

2023. The Group completed this refinancing just after year end in early

November 2022. The previous £250 million Sterling and €70million

Euro RCF’s have been replaced with a single multi-currency £400

million facility, with a further £100 million uncommitted accordion

facility, providing further capacity for medium term growth;

• Group leverage was below the Group’s strategic targeted level of an

LTV ratio between 30–40% (24% for 2022); and

• the full year dividend for the year ended 31 October 2022 increased

by 18.7% demonstrating a continued progressive dividend policy.

The Committee noted that

the free cash flow target

has been exceeded and

that Group LTV was well

below the bottom of the

targeted range as at

31October 2022, which

enabled the Company to

pay an above target full

year dividend of 29.8

pence and warranted full

payout for this element.

(9% out of 9% of salary).

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

107

STRATEGIC REPORT

Part C: Annual report on remuneration continued

2022 annual bonus outcomes: strategic objectives continued

Objective Achievement Outcome Committee assessment

Take advantage of selective portfolio management and expansion opportunities (15% of salary)

Grow store portfolio

through development

oracquisition by at

leasttwo stores per

yearwithin the

Board-approved

ROIguidelines.

Improve property

valuations of the stores

in the refurbishment and

extension programme

by more than the

capitalinvestment.

Completed EPS accretive acquisition of remaining 80% of equity owned

by Carlyle in the Benelux Joint Venture Acquired new development

opportunities in the UK, France; Spain and the Netherlands, in addition to

opening new stores and completing store extensions in various locations.

Highlights included:

Redevelopments and extensions:

• London Crayford

• Paris Pyrénées

New developments:

• London Morden – New build

• Wigan – Conversion

• Paris South – New build

• Paris West 1 – New build

• Paris West 3 – New build

• Paris East 1 – Conversion

• Paris North West 1 – Conversion

• Madrid North – Conversion

• Madrid South – Conversion

• Madrid East – Conversion

• Barcelona North – Conversion

• Barcelona South – Conversion

• Netherlands Amersfoort – New build

• Netherlands Almere – Conversion

Property pipeline summary of c.1.4m sq ft representing c.18% of our

existing property portfolio can be found on page 15.

Overall, the Committee

determined that targets

were significantly

exceeded, and recognised

the revenue generated

from both refurbished and

acquired businesses was

above target.

(15% out of 15% of salary).

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

Safestore Holdings plc | Annual report and financial statements 2022

108

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Objective Achievement Outcome Committee assessment

ESG (6% of salary)

Improve the Group’s

ESG activities in order

to deliver real value to

all our stakeholders by:

• year-on-year

carbonfootprint

reduction; and

• customer satisfaction

initiatives.

Align sustainability

reporting with

appropriate

framework(s).

Continued progress on our commitment to responsible and sustainable

business practices.

Highlights included:

• delivered year-on-year carbon emissions intensity reduction through

efficiency and electrification initiatives versus 2021 excluding newly

acquired Benelux portfolio; market-based absolute emissions 25%

lower year-on-year (2022 milestone target achieved). Emissions

intensity also below 2022 target;

• gas removed from a further five UK stores;

• installed voltage optimisation technology at largest site, Battersea

Park – outcomes under review, energy savings over 10% expected;

• 100% diversion of UK operational waste from landfill since May 2022

following change of supplier; and

• 98.5% diversion of construction waste from landfill.

• Maintained positive ratings on all relevant customer service platforms:

• Feefo Platinum Trusted Service award for Safestore UK;

• Trustpilot “Excellent” rating achieved in the UK with a Trustpilot

“Great” rating maintained in France;

• average Google rating of 4.7 achieved in Spain; and

• in the Netherlands, a high score of 4.9 was achieved on Trustpilot,

whilst in Belgium, customer service was rated 4.7 on Feefo.

• external recognition of ESG efforts and disclosures: EPRA

Sustainability BPR Silver Award, GRESB Public Disclosure A,

MSCIESG ‘AA’ and Support the Goals – 5*.

Our strong wellbeing foundation has enabled us to develop a strategy

setting out our approach to further support diversity and inclusion at

Safestore. Our new Diversity and Inclusion Strategy is about embedding

and continuing the important work we’ve already done to enable all our

colleagues to feel confident to bring their full unique selves to work.

Given the continued efforts

across the Company and

the external recognition

with regard to sustainability

activities, the Committee

determined that this

warranted full payout.

(6% out of 6% of salary).

Overall strategic/operational objective performance 50% of salary (out of 50% of salary)

indicates that the objective was exceeded, indicates that it was met, indicates that it was partially achieved and shows that the

objective was not achieved.

The Committee assessed that 50% of base salary (or 100% of maximum) of the strategic/operational objectives had been achieved for 2022.

In total, the overall bonus payout was 100% of maximum and 150% of salary for both Executive Directors, versus a maximum opportunity of

150% of base salary. In line with Policy, 100% of salary will be paid in cash and 50% of salary will be deferred into shares on a net of tax basis.

In determining the payouts under the annual bonus plan for the Executive Directors, the Committee has been mindful not only of the formulaic

outcome against the targets set, but also of the underlying performance of the business. Specifically, the Committee took account of the

following factors:

• The Company achieved another strong set of financial results.

• The Company paid its final dividend for 2021 to shareholders. The full year dividend for the year ended 31 October 2022 increased by 18.7%

from 25.1 pence to 29.8 pence.

• The Company-wide bonus pool has increased by 8.8%, including the £500 cost of living payment in October 2022 to ease financial hardship.

On this basis, the Committee felt comfortable that the formulaic bonus outcome reflected the individual Executive Director and Company

performance. As a result, the Committee determined that no overriding discretion will be applied to the bonus outcome. The Committee noted

that in recent months, Safestore’s share price has fallen, but that corporate performance continues to be excellent. The 2022 bonuses for

Executive Directors will be 150% of salary and will be paid 100% of salary in cash, with the remainder of 50% of salary held in shares on a net of

tax basis, via an agreement with the Executive, until 1 November 2024 with malus applying for this period and clawback for three years thereafter.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

109

STRATEGIC REPORT

Part C: Annual report on remuneration continued

2022 annual bonus outcomes: strategic objectives continued

LTIP awards included in single figure for the year ended 31 October 2022 (audited)

2017 LTIP – Relative TSR element performance measurement

The five-year performance period for the relative TSR element of the 2017 LTIP ended on 28 September 2022; relative TSR accounts for one-third

ofthe award with 50% of the element measured against the constituents of the FTSE 250 Index excluding Investments Trusts and the remaining

50% is measured against the FTSE 350 Supersector Real Estate Index.

Safestore’s TSR growth was 189.2% over the five-year performance period to 28 September 2022 and was significantly in excess of the upper

quartile of both peer groups (32.8% and 54.2% for the FTSE 250 Index excluding Investment Trusts and FTSE 350 Supersector Real Estate Index

respectively), which equates to maximum vesting. Given that the Committee confirmed that the Cash on Cash Return underpin had been satisfied

as at 31 October 2021, the performance targets under the relative TSR element of the 2017 LTIP were met in full. This is summarised in the

tablebelow:

TSR vs FTSE 250 excluding Investment Trust Index TSR vs FTSE 350 Supersector Real Estate Index

Threshold

performance –

median TSR

(25% vesting)

Maximum

performance –

upper quartile TSR

(100% vesting)

Safestore’s TSR

performance % of awards vested

Threshold

performance –

median TSR

(25% vesting)

Maximum

performance –

upper quartile TSR

(100% vesting)

Safestore’s TSR

performance % of awards vested

-7.1% 32.8% 189.2% 100% 7.7% 54.2% 189.2% 100%

Note

1 For the Executive Directors, the Committee determined in 2018 that there will be zero vesting for TSR performance between median (the 50th percentile), and the 55th percentile unless

there are exceptional circumstances justifying some payout for this level of corporate performance.

On this basis, a further 666,667 and 446,667 shares vested for the CEO and CFO in respect of the relative TSR element. In total 2 million shares

for the CEO and 1.34 million shares for the CFO vested under the 2017 LTIP and became exercisable on 29 September 2022. The Executive

Directors also became entitled to dividend equivalents on these shares when they vested based on dividends paid between the grant and

vesting date of the award. In line with previous disclosures, the CEO’s dividend was paid in cash to ensure the total award remained within the

plan’s 2 million share limit.

The value of the shares vesting under the relative TSR element and the associated dividend equivalents have been included in the single figure

ofremuneration table for the year ended 31 October 2022 in line with relevant regulations. The value of the awards that vested under the EPS

element of the 2017 LTIP included in the single figure of remuneration table for the year ended 31 October 2021 has been restated to include

theactual dividend equivalents earned during the vesting period, valued at the share price on vesting.

The Committee believes that the awards that vested in September 2022 for the Executive Directors and 56 colleagues are commensurate with

the corporate success of the Company achieved over this period as follows:

• The Company’s financial success has flowed through to shareholder returns such that over the period since the start of the EPS performance

period on 1 November 2016 the Company’s market capitalisation has increased by £1.162 billion, with £229 million of dividend payments made.

• The successful execution of strategy has created a unique business model that combines advanced digital marketing and pricing analytics,

awell-located portfolio with extensive pipeline, and a focus on store team sales skills.

• The management team has successfully built a larger and more diversified business, expanding operations into Spain and Benelux and

ensuring that all parts of the Company are run in a sustainable manner.

• Financial success has been achieved in parallel with the Company receiving several accolades in relation to its colleague initiatives, ESG

performance and consistently outstanding customer feedback scores.

2020 LTIP – EPS and Relative TSR element performance measurement

The performance period of the EPS element of the 2020 LTIP ended on 31 October 2022; EPS performance accounts for two-thirds of the

award. On that basis, the Committee measured the Company’s EPS growth and Cash on Cash Return in relation to the underpin over the

three-year performance period. Adjusted Diluted EPRA EPS increased by 18.6% p.a., significantly ahead of the 8% p.a. growth required for

maximum vesting. The average Cash on Cash Return over the same period was 11.9% which also exceeded the 8% underpin target resulting

in100% of the awards being earned under the EPS element of the 2020 LTIP.

This is summarised in the table below:

Adjusted Diluted EPRA EPS growth

Cash on Cash Return underpin

Threshold performance

(25% vesting)

Maximum performance

(100% vesting) Actual performance % of awards earned Underpin performance required Actual performance

Overall % of

awardsearned

5% p.a. 8% p.a. 18.6% p.a. 100% 8% 11.9% 100%

Notes

1 Vesting between the threshold and maximum based on a sliding scale.

2 Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for the period after tax but

excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further

adjustments for the impact of exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the

dilutednumber of shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance

element). Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the associated National Insurance element).

3 Cash on Cash return p.a. is the average Cash on Cash return over the performance period, where Cash on Cash return is Underlying EBITDA after leasehold rent divided by original cost

of investments calculated for each financial year in the performance period.

Safestore Holdings plc | Annual report and financial statements 2022

110

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

The final vesting level for the 2020 LTIP will not be determined by the Committee until the vesting date of 18 March 2023, with the balance of awards

subject to the Company’s relative TSR performance measured over the three-year period ending on 17 March 2023. As at 31 October 2022,

Safestore’s TSR growth is in excess of the upper quartile of both the FTSE 250 excluding Investment Trusts and FTSE 350 Supersector Real

Estate Index peer groups, which would equate to maximum vesting. Therefore, the Committee confirms that it expects the awards to vest in full

and will consider whether the formulaic outcome is in line with underlying Company performance at the vesting date.

The value of the 2020 LTIP awards expected to vest on 18 March 2023, plus an estimate of the value of dividend equivalents accrued to 31 October 2022,

has been included in the single figure of remuneration table for 2022 on the basis that the relative TSR performance period has been

substantiallycompleted.

On the assumption that the relative TSR element vests in full, the CEO and CFO will earn 123,489 and 87,986 shares respectively which will

become exercisable on or after the vesting date of 18 March 2023. Dividend equivalents will also be awarded on vested shares; however, their

value is yet to be determined as it will be based on dividends paid between the grant and vesting date of the award. In line with the reporting

regulations, the value of dividend equivalents paid between the grant date and 31 October 2022 has been included in the value of the awards

inthe single figure of remuneration table as set out below:

2021 figures (restated) 2022 figures

Name

Number of

2017 LTIP

awards

granted

Number of

2017 LTIP

EPS

element

awards

vested

Value of

2017 EPS

element

awards

vested

Value

attributable to

share price

growth

Number of

2017 LTIP

TSR element

awards

vested

Value of

2017 LTIP

TSR element

awards vested

Value

attributable

to share

price growth

Number

2020 LTIP

award

granted

Number of

2020 LTIP

awards

estimated

to vest

Value of 2020

LTIP awards

estimated

to vest

Value

attributable

to share

price

growth

F Vecchioli (Chief

Executive Officer) 2,000,000 1,333,333 £11,875,331 £4,763,999 666,667 £5,937,669 £2,382,001 123,489 123,489 £1,280,344 £442,671

A Jones (Chief

Financial Officer) 1,340,000 893,333 £7,928,580 £3,191,879 446,667 £3,964,294 £1,595,941 87,986 87,986 £912,246 £315,403

Notes

1 Based on the closing share price on 29 September 2022 of £7.94 and includes dividend equivalents of £0.9665 per share accrued from the date of grant to the date of vest.

2 Based on growth in share price from date of grant (£4.367 – 29 September 2017) to the closing share price on the date of vest (£7.94 – 29 September 2022).

3 Based on three-month average share price to 31 October 2022 of £9.81 and includes dividend equivalents accrued from the date of grant to 31 October 2022.

4 Based on growth in share price from date of grant (£6.23 – 18 March 2020) to three-month average share price to 31 October 2022 (£9.81).

LTIP awards granted in the year ended 31 October 2022 (audited)

The third LTIP award under the current Remuneration Policy was granted on 25 January 2022. In line with Policy the awards had a face value of

200% of base salary and no consideration was paid for the grant which was structured as a nil-cost option. The normal vesting date of the LTIP

awards will be 25 January 2025, being the third anniversary of the award date. Once vested, the LTIP award will normally be exercisable until the

day before the tenth anniversary of the award date and is subject to a two-year holding period commencing on vesting.

Name Role

Base salary at

date of grant

Face value

of 2022

LTIP award

(% of base salary)

Face value

of 2022

LTIP award

Face value

at minimum

vesting of 25%

Number of shares

granted under

nil-cost option *

F Vecchioli CEO £441,338 200% £882,676 £220,669 71,645

A Jones CFO £314,453 200% £628,906 £157,227 51,047

Note

* Dividend equivalents will be payable on vested shares.

The number of shares granted under the award was calculated using a share price of £12.32, being the closing share price on the dealing day

immediately before the date of grant.

The LTIP awards will vest based on the satisfaction of the following performance conditions which are each measured over three-year periods:

i. two-thirds based on Adjusted Diluted EPRA Earnings per Share growth: 5% p.a. growth (threshold) and 8% p.a. growth (maximum);

ii. one-sixth based on relative TSR against the FTSE 250 Index excluding Investment Trusts: median performance (threshold) and upper quartile

performance (maximum); and

iii. one-sixth based on relative TSR against the FTSE 350 Supersector Real Estate Index: median performance (threshold) and upper quartile

performance (maximum).

25% of the relevant element of the award will vest for threshold performance, with straight-line vesting beyond threshold to full vesting for the

achievement of maximum performance. In addition, no award will vest unless a minimum level of Cash on Cash Return (“CoCR”

) of 8% p.a.has

been met. The Committee will have overriding discretion to change formulaic outcomes (both downwards and upwards) if they are out of line

withunderlying performance of the Company.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

111

STRATEGIC REPORT

Part C: Annual report on remuneration continued

2022 annual bonus outcomes: strategic objectives continued

LTIP awards granted in the year ended 31 October 2022 (audited) continued

Full details of the performance conditions attached to the awards can be found in the table below.

Measure Performance period Performance target Vesting

(% of award)

Adjusted Diluted EPRA Earnings per Share

growth(two-thirds weighting)

Three financial years ending

31 October 2024

Less than 5% p.a. growth 0%

Threshold: 5% p.a. growth 25%

Maximum: 8% p.a. growth 100%

Relative TSR vs FTSE 250 (excluding Investment

Trusts) (one-sixth weighting)

Three years from grant date ending

24 January 2025

Below median TSR 0%

Threshold: Median TSR 25%

Maximum: Upper quartile TSR 100%

Relative TSR vs FTSE 350 Supersector Real

EstateIndex (one-sixth weighting)

Three years from grant date ending

24 January 2025

Below median TSR 0%

Threshold: Median TSR 25%

Maximum: Upper quartile TSR 100%

Notes

1 Vesting between the threshold and maximum based on a sliding scale.

2 Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined as profit or loss for the period after tax

but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment properties and the associated tax impacts. The Company then makes further

adjustments for the impact of exceptional items, IFRS 2 share-based payment charges, exceptional tax items and deferred tax charges. This adjusted earnings is divided by the diluted

number of shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated National Insurance element).

Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the associated National Insurance element). The financial statements will

disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis and will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest.

3 Cash on Cash Return p.a. is the average Cash on Cash Return over the performance period, where Cash on Cash Return is Underlying EBITDA after leasehold rent divided by original

cost of investments calculated for each financial year in the performance period.

Annual bonus – deferred bonus awards made in the year ended 31 October 2022

In line with Policy, the bonus awarded in excess of 100% of salary in respect of the year ended 31 October 2021 is held in shares by the

Executive Directors on a net of tax basis (referred to as restricted shares). The restricted shares are subject to a two-year holding period that

expires on 1 November 2023. Malus provisions apply during the holding period and claw-back provisions apply for three years thereafter.

The restricted shares were acquired by the Executive Directors on 28 January 2022 at market value (£12.4055).

Name Role

Face value of

restricted shares

Number of

restricted shares *

F Vecchioli CEO £116,140 9,362

A Jones CFO £82,757 6,671

Note

* Dividends will be payable.

Operation of Policy

The Committee is comfortable that the current Policy operated as intended in 2022 and that the overall remuneration paid to Executive Directors

for 2022, as set out above, was appropriate.

Payments to past Directors or for loss of office (audited)

During the year there were no payments to past Directors or for loss of office.

Implementation of the Remuneration Policy for the year ending 31 October 2023

Full details of how the new Remuneration Policy will be implemented for the year ending 31 October 2023 will be included alongside the details

ofthe new Policy itself in the supporting documentation for the General Meeting at which the Policy will be presented for approval.

As noted earlier in this report, in undertaking its review, the Committee concluded that the positioning of the current remuneration packages

being significantly below Safestore’s peers in terms of quantum, and which in fact places the CEO in the lower quartile of the FTSE 250, is not in

the best interests of all stakeholders. It also noted that the 2017 LTIP had now vested and paid out in full. Therefore, changes to the LTIP are likely

to be proposed as part of the new Policy, although the Committee is keen that the LTIP structure should continue to be aligned with standard

market practice in terms of vesting profiles and being subject to the achievement of stretching performance targets. On this basis, LTIPawards

will be delayed until shareholder approval of the new Policy has been gained.

Please see the at a glance section on pages 94 to 97 of this report for details of how we expect to implement the Policy for those elements

ofremuneration where it is possible to provide a view at this stage.

Safestore Holdings plc | Annual report and financial statements 2022

112

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Non-Executive Directors

Single figure remuneration table (audited)

The remuneration of Non-Executive Directors showing the breakdown between components, together with comparative figures for the prior year,

is shown below.

Director

Fees

£’000

Other

£’000

Total

£’000

D Hearn

2022 203 — 203

2021 184 — 184

I S Krieger

2022 78 — 78

2021 66 — 66

C Balmforth

2022 39 — 39

2021 60 — 60

G van de Weerdhof

2022 57 — 57

2021 50 — 50

L Duhot

2022 61 — 61

2021 n/a — n/a

D Mousseau

2022 57 — 57

2021 n/a — n/a

J Bentall

2022 26 — 26

2021 n/a — n/a

Notes

1 C Balmforth stepped down as an independent Non-Executive Director on 31 May 2022 so received a pro-rated fee for 2022.

2 L Duhot was appointed as an independent Non-Executive Director on 1 November 2021.

3 D Mousseau was appointed as a Non-Executive Director on 1 November 2021.

4 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022 so received a pro-rated fee for 2022.

Fees to be provided in 2023 to the Non-Executive Directors

The following table sets out the annual fee rates for the Non-Executive Directors from 1 May 2022:

Fee component 2023

Chairman fee £220,000

Non-Executive Director base fee £57,680

Additional fee for SID and Committee chairmanship £10,815

Statement of Directors’ shareholding and share interests

Shareholding and other interests at 31 October 2022 (audited)

Directors’ share interests are set out below. As per the current Remuneration Policy, in order that the Executive Directors’ interests are aligned

with those of shareholders, Executive Directors are encouraged to build up and maintain a personal shareholding equal to 350% of salary. The

shareholding guidelines take account of beneficially owned shares, restricted shares from bonus deferral and vested but unexercised awards at

their net of tax value. The Executive Directors had five years from the grant of the 2017 LTIP award (29 September 2022) to achieve this guideline.

As shown in the table below, both Executive Directors meet the in-employment guidelines under the Policy.

The shareholding guidelines for Executive Directors will continue to apply for two years post cessation of employment. For the avoidance of

doubt shares beneficially owned at the date of adoption of the current Policy (18 March 2020) and the 2017 LTIP award are exempt from this

guideline but share-based awards granted under the Policy approved by shareholders at the 2020 AGM are captured.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

113

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Statement of Directors’ shareholding and share interests continued

Shareholding and other interests 31 October 2022 (audited) continued

As at 31 October 2022

Director

Number of

beneficially

owned

% of

salary

held

Shareholding

requirement

(% of salary)

Shareholding

requirement met

Total interests

subject to

conditions

(LTIP nil-cost

awards)

Outstanding

2020 Sharesave

awards

Vested

unexercised

nil-cost option

awards

Total

interests at

31 October 2022

F Vecchioli 2,093,466 4,161 350 Yes 296,599 2,008 2,000,000 4,392,073

A Jones 462,471 1,290 350 Yes 211,327 2,008 1,497,843 2,173,649

D Hearn 15,000 n/a n/a n/a n/a n/a n/a 15,000

I S Krieger 60,000 n/a n/a n/a n/a n/a n/a 60,000

G van de Weerdhof Nil n/a n/a n/a n/a n/a n/a Nil

L Duhot 1,711 n/a n/a n/a n/a n/a n/a 1,711

D Mousseau 1,460 n/a n/a n/a n/a n/a n/a 1,460

J Bentall 9,300 n/a n/a n/a n/a n/a n/a 9,300

Notes

1 Beneficial interests include shares held directly or indirectly by connected persons and restricted shares acquired on 4 February 2022.

2 Based on the 31 October 2022 share price of 903.5 pence per share and beneficially owned shares only.

Between 31 October 2022 and 25 January 2023 (being the latest practicable date prior to the publication of this report), the Executive Directors

exercised their vested 2017 LTIP nil-cost options on 2 December 2022. This increased beneficially owned shares by 1,058,115 to 3,151,581 for

Frederic Vecchioli and by 781,489 to 1,243,960 for Andy Jones. There were no other changes to the Directors’ interests between 31 October 2022

and 25 January 2023.

2017 LTIP awards – awards exercised on 2 December 2022

The Executive Directors exercised their 2017 LTIP vested nil-cost options on 2 December 2022 as set out in the table below:

Director Role

Number

of nil-cost

options

granted

Dividend

equivalents

Total number of

shares exercised Retained shares

F Vecchioli CEO 2,000,000 Nil 2,000,000 1,058,115

A Jones CFO 1,340,000 157,843 1,497,843 781,489

Annual bonus – deferred bonus awards called during the year ended 31 October 2022

In the year ended 31 October 2022, the Executive Directors were entitled to call upon the deferred shares awarded to them in relation to the

deferred element of their annual bonus earned in the financial year ended 31 October 2019. These awards were granted on 7 February 2020 and

in line with the previous Policy vested on 1 November 2021 subject to continued employment.

Director Role

Number

of nil-cost

options

granted

Dividend

equivalents

Total number

of shares called

F Vecchioli CEO 22,276 706 22,982

A Jones CFO 15,872 503 16,375

The Remuneration Committee determined the dividend equivalent share entitlement as the number of shares equal in value to the net dividends

of 38.10 pence that had been paid on the nil-cost options from the date of grant to the date of vesting by the Executive Directors, divided by the

closing share price preceding the date of vesting, of £12.02.

Safestore Holdings plc | Annual report and financial statements 2022

114

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Outstanding LTIP awards at 31 October 2022

The following LTIP awards remain outstanding and unvested at 31 October 2022:

Director Awards granted Maximum award Awards vested Awards lapsed

Maximum

outstanding

awards

31 October

2022

Market

price at

date of

vesting (p)

Normal

vesting date

F Vecchioli 18/03/2020 LTIP 123,489 — — 123,489 — 18/03/2023

28/01/2021 LTIP 101,465 — — 101,465 — 28/01/2024

25/01/2022 LTIP 71,645 — — 71,645 — 25/01/2025

A Jones 18/03/2020 LTIP 87,986 — — 87,986 — 18/03/2023

28/01/2021 LTIP 72,294 — — 72,294 — 28/01/2024

25/01/2022 LTIP 51,047 — — 51,047 — 25/01/2025

Note

1 Figures shown exclude dividend equivalents.

The 2020, 2021 and 2022 awards are subject to performance measures and a continued service condition over a three-year period.

Theperformance measures and targets for the 2020 LTIP awards are set out on page 90 of the 2020 Annual Report, for the 2021 LTIP awards

are set out on page 100 of the 2021 Annual Report, and for the 2022 LTIP awards are set out on pages 111 and 112 of this report.

Consideration of shareholder views

Please see page 103 for details.

Consideration of conditions elsewhere in the Group

Please see page 103 for details.

Considerations by the Committee of matters relating to Directors’ remuneration for 2022

The Committee is responsible for recommending to the Board the remuneration policy for Executive Directors and senior management and for

setting the remuneration packages for each Executive Director. The Committee also has oversight of the remuneration policy for all colleagues.

The written terms of reference of the Committee are available on the Company’s website and from the Company on request.

Members of the Committee in the year to 31 October 2022 Independent

Meetings held

during tenure

during the year

Number of

meetings

attended

C Balmforth (Chair)

Yes 5 5

L Duhot (Chair)

Yes 1 1

D Hearn Yes 6 6

I S Krieger Yes 6 6

G van de Weerdhof Yes 6 6

D Mousseau Yes 6 6

J Bentall

Yes 1 1

Notes

1 C Balmforth stepped down as an independent Non-Executive Director on 31 May 2022.

2 L Duhot was appointed as Chair of the Remuneration Committee with effect from 1 June 2022.

3 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

115

STRATEGIC REPORT

Part C: Annual report on remuneration continued

Considerations by the Committee of matters relating to Directors’ remuneration for 2022 continued

Despite taking the decision to postpone the Policy renewal, a significant amount of the Committee’s time in 2022 was spent undertaking

aremuneration review to support the design of the new Policy. In addition, we also did the following:

• considered wider workforce pay policies and practices and feedback from the workforce panel;

• proactively responded to the 72% votes in favour of the 2021 remuneration report;

• approved the salary increases for Executive Directors and senior managers alongside the wider workforce salary budget;

• agreed annual bonus targets for 2022;

• reviewed and approved the 2022 LTIP grant and the associated performance conditions;

• discussed and approved Executive Director and senior manager remuneration outcomes for 2022, including measuring the performance

outcomes of the relative TSR element of the 2017 LTIP award and the EPS element of the 2020 LTIP;

• reviewed the gender pay gap analysis results and signed off actions;

• reviewed and approved the Directors’ remuneration report for 2021/22; and

• reviewed the Committee’s terms of reference.

None of the Committee members have any personal financial interest (other than as shareholders) in the decisions made by the Committee,

conflicts of interest arising from cross-directorships or day-to-day involvement in running the business.

The Chief Executive Officer, the Chief Financial Officer, the HR Director and the Company Secretary may attend meetings at the invitation of the

Committee but are not present when their own remuneration outcomes are being discussed. The HR Director acts as the secretary to the Committee.

The Committee received external advice in 2022 from PricewaterhouseCoopers LLP (“PwC”) in connection with remuneration matters, including

the provision of general guidance on market and best practice. PwC was appointed by the Committee after a competitive tender process in

August 2016. PwC is considered by the Committee to be objective and independent. PwC is a member of the Remuneration Consultants Group

and, as such, voluntarily operates under the code of conduct in relation to executive remuneration consulting in the UK. PwC also provided the

Company with reward, tax, and consulting advice. The Committee reviewed the nature of all the services provided during the year by PwC and

was satisfied that no conflict of interest exists or existed in the provision of these services.

The total fees paid to PwC in respect of services to the Committee during the year were £131,400. Fees were determined based on the scope

and nature of the projects undertaken for the Committee.

Executive Director service contracts

The service agreements of the Executive Directors are not fixed term and are terminable by either the Company or the Director on the

followingbasis:

Director Date of current service contract Notice period

F Vecchioli 3 September 2013 Twelve months

A Jones 29 January 2013 Twelve months

Non-Executive Director letters of appointment

The Non-Executive Directors were appointed for an initial three-year term and their appointment continues, subject to annual re-election at the

Company’s AGM up to a maximum term of nine years.

The table below sets out the dates that each Non-Executive Director was first appointed and the notice period by which their appointment may

be terminated early by either party:

Director Date of appointment Notice period by Company or Director

D Hearn 1 December 2019 Three months

I S Krieger 3 October 2013 Three months

C Balmforth (resigned 31 May 2022)

1 August 2016 Three months

G van de Weerdhof 1 June 2020 Three months

L Duhot

1 November 2021 Three months

D Mousseau

1 November 2021 Three months

J Bentall

18 May 2022 Three months

Notes

1 C Balmforth stepped down as an independent Non-Executive Director on 31 May 2022.

2 L Duhot and D Mousseau were appointed as independent Non-Executive Directors with effect from 1 November 2021.

3 J Bentall was appointed as an independent Non-Executive Director on 18 May 2022.

Safestore Holdings plc | Annual report and financial statements 2022

116

GOVERNANCE REPORT

Directors’ remuneration report continued

for the year ended 31 October 2022

Safestore Holdings plc is a public limited liability company incorporated

under the laws of England and Wales with the registered number

04726380. It has a premium listing on the London Stock Exchange

Main Market for listed securities (LON:SAFE) and is a constituent

member of the FTSE 250 Index. The Company is a real estate

investment trust (“REIT”). It is expected that the Company, which has

no branches, will continue to operate as the holding company of the

Group. The address of the registered office is Brittanic House, Stirling

Way, Borehamwood, Hertfordshire WD6 2BT.

The principal activity of the Group is to provide storage solutions and

related goods and services to commercial and domestic customers.

The principal activity of the Company is that of a holding company.

The Directors present their report and the audited consolidated financial

statements for the year ended 31 October 2022. References to Safestore,

“the Group”, “the Company”, “we” or “our” are to Safestore Holdings

plc, and its subsidiary companies where appropriate.

Disclosures incorporated by reference

The following disclosures required to be included in the Directors’

report have been incorporated by way of reference to other sections of

this report and should be read in conjunction with this report:

• corporate governance report on pages 74 to 116;

• strategy and relevant future developments – refer to pages 7 to 21 of

the strategic report;

• financial risk management, policies and objectives of the Group, along

with any details of exposure to any liability and cash flow risk, are set

out on pages 37 to 42 and in note 20 to the financial statements;

• details of the Group’s going concern assessment and viability

statement on pages 44 and 133; and

• employee matters and carbon emission disclosures are set out

inthe Sustainability report on pages 49 to 53 and pages 58 to

73respectively.

Results for the year and dividends

The results for the year ended 31 October 2022 are set out in the

consolidated statement of comprehensive income on page 129 and

areview of the Group’s results is explained further on pages 1 to 33.

An interim dividend of 9.40 pence (FY2021: 7.50 pence) was paid on

11August 2022, comprised of a Property Income Distribution (“PID”) of

2.35 pence (FY2021: 7.50 pence) and a non-PID dividend of 7.05pence

(FY2021: £nil). The Directors recommend a final dividend in respect of

the year ended 31 October 2022 of 20.40 pence per ordinary share

(FY2021: 17.60 pence), of which the PID element will be 20.40 pence

(FY2021: 17.60 pence). If authorised at the 2023 AGM, the dividend

willbe paid on 7 April 2023 to members on the register at close of

business on 3 March 2023.

PIDs are paid after the deduction of withholding tax at the basic rate

(currently 20%). However, certain categories of shareholder may be

entitled to receive payment of a gross PID if they are UK resident

companies, UK public bodies, UK pension funds and managers

ofISAs, PEPs and child trust funds. Information, together with the

relevant forms which must be completed and submitted to the

Company’s Registrar, for shareholders who are eligible to receive

gross PIDs is available in the Investor Relations section of the

Company’s website at www.safestore.com. Non-PID dividends

arenotsubject to withholding tax.

Going concern and viability statement

After making enquiries, the Directors of Safestore are confident that,

on the basis of current financial projections and facilities available

andafter considering sensitivities, and stress testing, the Group has

sufficient resources for its operational needs and to enable the Group

to remain in compliance with the financial covenants in its bank facilities

for the foreseeable future, a period of not less than twelve months.

TheDirectors have assessed Safestore’s viability over a three-year

period to 31 October 2025.

This is based on modelling over a three-year period, which gives greater

certainty over the forecasting assumptions used. The viability statement

is set out on page 44.

Financial instruments

The financial risk management objectives and policies of the Group,

along with any details of exposure to any liability and cash flow risk, are

set out on pages 37 to 42, and in note 20 to the financial statements.

Disclosures required under Listing Rule 9.8.4R

For the purposes of LR 9.8.4R, the information required to be disclosed

by LR 9.8.4R can be found in the following locations within the Annual

Report:

Page

(1) Amount of interest capitalised and tax relief n/a

(2) Publication of unaudited financial information n/a

(4) Details of long term incentive schemes 161 and 162

(5) Waiver of emoluments by a Director n/a

(6) Waiver of future emoluments by a Director n/a

(7) Non-pre-emptive issues of equity for cash 161

(8) Item (7) in relation to major subsidiary undertakings n/a

(9)

Parent company participation in a placing by a

listed subsidiary n/a

(10) Contracts of significance 120

(11) Provision of services by a controlling shareholder n/a

(12) Shareholder waiver of dividends 118

(13) Shareholder waiver of future dividends n/a

(14) Agreements with controlling shareholders n/a

All the information referenced above is incorporated by reference into

the Directors’ report.

Management report

The strategic report and the Directors’ report collectively comprise

the“management report” for the purposes of the Financial Conduct

Authority’s Disclosure Guidance and Transparency Rules (DTR 4.1.5R).

Corporate Governance Statement

In compliance with the Financial Conduct Authority’s Disclosure

Guidance and Transparency Rules, the disclosures required by DTR

7.2.6 are set out in this Directors’ Report.

Post-balance sheet events

On 11 November 2022 the Group completed its refinancing exercise

obtaining a new increased unsecured £400 million multi-currency

four-year Revolving Credit Facility (with two one-year extension

options). In addition, a further £100 million uncommitted accordion

facility is incorporated into the facility agreement.

On 1 December 2022 the Group acquired a 10.0% interest in CERF II

German Storage Topco S.à r.l., a company registered in Luxembourg,

and the indirect holder myStorage GmbH, a company registered and

operating in Germany.

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

117

STRATEGIC REPORT

Directors’ report

Directors

The Directors of the Company who served during the year and to

the date of this report were as follows:

Claire Balmforth Non-Executive Director

(stepped down 31 May 2022)

Jane Bentall Non-Executive Director

(appointed 18 May 2022)

Laure Duhot Non-Executive Director

(appointed 1 November 2021)

David Hearn Non-Executive Chairman

Andy Jones Chief Financial Officer

Ian Krieger Senior Independent Director

Delphine Mousseau Non-Executive Director

(appointed 1 November 2021)

Frederic Vecchioli Chief Executive Officer

Gert van de Weerdhof Non-Executive Director

The skills and experience of the serving Directors are set out on pages

76 and 77, and their interests in the ordinary share capital of the

Company, and details of options granted to Executive Directors under

the Group’s share schemes are set out in the Directors’ remuneration

report on pages 111 to 114.

Appointment and removal of Directors

The Company’s rules governing the appointment and removal of

Directors are contained in its Articles of Association. Changes to the

Articles of Association are only permitted in accordance with legislation

and must be approved by a special resolution of shareholders. The

Company’s Articles of Association provide that a Director may be

appointed by an ordinary resolution of the shareholders or by the

existing Directors, either to fill a vacancy or as an additional Director.

Further information on the Company’s internal procedures for the

appointment of Directors is given in the corporate governance section

on pages 81 and 83.

A Director may be removed by the Company in certain circumstances

set out in the Articles of Association or by an ordinary resolution of the

Company’s shareholders.

Vacation of office

The office of a Director shall be vacated if (amongst other circumstances)

a Director: (i) resigns; (ii) has been appointed for a fixed term and the term

expires; (iii) ceases to be a Director by virtue of the Companies Acts, is

removed from office pursuant to the Articles of Association or becomes

prohibited by law from being a Director; (iv) becomes bankrupt or the

subject of an interim receiving order or compounds with creditors

generally or applies to the court for an interim order under section 253

of the Insolvency Act 1986 (as amended) in connection with a voluntary

arrangement under that act or any analogous event occurs in relation to

the Director in another jurisdiction; (v) has been suffering from mental

or physical ill health and may remain so for more than three months;

(vi)both a Director and his or her alternate Director (if any) are absent,

without the permission of the Board from meetings of the Board for

sixconsecutive months and the Board resolves that his or her office

isvacated; or (vii) is removed from office by notice addressed to the

Director at their last-known address and signed by all co-Directors.

Directors’ powers

The Board, which is responsible for the management of the business,

may exercise all the powers of the Company subject to the provisions

of relevant legislation, the Company’s Articles of Association and

directions given by special resolution of the Company. The powers

ofthe Directors set out in the Articles of Association include those in

relation to the issue and buyback of shares.

Annual re-election of Directors

The Company’s Articles of Association require that all Directors retire

by rotation each year. In accordance with the Company’s Articles of

Association and with the Code, all Directors will retire at the Annual

General Meeting (“AGM”) to be held on Wednesday 15 March 2023

and will offer themselves for re-election.

Directors’ indemnities

The Company maintains directors’ and officers’ liability insurance

which provides appropriate cover for legal action brought against its

Directors. The Company has also granted indemnities to each of its

Directors to the extent permitted by law. The Directors also have

(andduring the year ended 31 October 2022 had) the benefit of the

qualifying third party indemnity provision contained in the Company’s

Articles of Association, which provides a limited indemnity in respect

ofliabilities incurred as a Director or other officer of the Company.

Directors’ interests in contracts and conflicts

of interest

No member of the Board had a material interest in any contract of

significance with the Company, or any of its subsidiaries, at any time

during the year. Directors are required to notify the Company of any

conflict or potential conflict of interest.

The Company’s policy is that Directors notify the Chairman and the

Company Secretary of all new outside interests and actual or potential

conflicts of interest as and when they arise. The Board confirms that

no actual or potential conflicts have been identified or notified to the

Company during the year and, accordingly, the Board has not

authorised any conflicts of interest as permitted by the Company’s

Articles of Association.

Share capital

At 31 October 2022, the Company’s issued share capital comprised

211,927,497 ordinary shares of 1 pence each. The rights and obligations

attached to the Company’s ordinary shares are set out in its Articles of

Association and note 11 of the Company’s financial statements. Details

of movements in the share capital during the year are provided in note

23 of the financial statements. The issued share capital has been

increased by 1,103,794 ordinary shares during the year by fully paid

issues as follows:

Date Share scheme

Number of

ordinary shares

of 1 pence

11 March 2022 Exercise of options under the 2017

(five-year) Sharesave scheme

3,401

2 September 2022

to31October 2022

Exercise of options under the 2019

(three-year) Sharesave scheme

100,393

5 October 2022 Issue of new share to the Trustee

of the Safestore Employee Benefit

Trust to satisfy share awards

granted by the Company under

its 2017 Long Term Incentive Plan

1,000,000

No person holds securities in the Company carrying special rights with

regard to control of the Company.

Own shares – Employee Benefit Trust

At 31 October 2022, the Employee Benefit Trust retains 359,795

ordinary shares (FY2021: 41,259) with a nominal value of £3,598

(FY2021: £413) to satisfy awards under the Group’s share scheme

arrangements. This represents less than 0.17% (FY2021: 0.02%) of the

total issued share capital of the Company. The Trustee of the

Employee Benefit Trust has elected not to receive dividends on its

retained ordinary shares.

Safestore Holdings plc | Annual report and financial statements 2022

118

GOVERNANCE REPORT

Directors’ report continued

Purchase of own shares

The Company was granted authority at the 2022 AGM to make market

purchases of its own ordinary shares. This authority will expire at the

conclusion of the 2023 AGM and a resolution will be proposed to seek

further authority. No ordinary shares were purchased under this authority

during the year or in the period from 1 November 2022 to 16January 2023.

Restrictions on transfers of shares and/or

voting rights

The Company is not aware of any agreements between shareholders that

may result in restrictions on the transfer of securities and/or voting rights

and apart from the matters described below, there are no restrictions

on the transfer of the Company’s ordinary shares and/or voting rights:

• Certain restrictions on transfers of shares may from time to time be

imposed by laws and regulations (such as the Market Abuse Regulation).

The Company’s Securities Dealing Code provides that all Directors

and employees are required to seek the Company’s approval to deal

in its shares.

• Some share-based employee incentive plans include restrictions on the

transfer of shares, while the shares are subject to the plan concerned.

• The Directors’ Remuneration Policy provides that annual bonus

awards in excess of 100% of salary be deferred into shares. The

annual bonus plan rules include restrictions on the transfer of such

shares, while the shares are subject to the plan concerned.

• The transferor of a share is deemed to remain the holder until the

transferee’s name is entered in the register of shareholders. The

Board can refuse to register any transfer of any share which is not

afully paid share. The Company does not currently have any partly

paid shares.

• Unless the Directors determine otherwise, members are not entitled

to vote personally or by proxy at a shareholders’ meeting, or to

exercise any other member’s right in relation to shareholders’

meetings, in respect of any share for which any call or other sum

payable to the Company remains unpaid.

• Unless the Directors determine otherwise, no transfer of shares shall

be registered and members are not entitled to vote personally or by

proxy at a shareholders’ meeting, or to exercise any other member’s

right in relation to shareholders’ meetings if the member fails to

provide the Company with the required information concerning

interests in those shares within the prescribed period after being

served with a notice under Section 793 of the Companies Act 2006.

• The shareholding guidelines set out in the Directors’ Remuneration

Policy provide that Executive Directors are expected to build up their

shareholding over a five-year period. Executive Directors would be

expected to retain any shares vesting (post-tax) under in-flight awards

until they have acquired the necessary shares to meet their

shareholding requirements.

Details of deadlines in respect of voting for the 2023 AGM are

contained in the Notice of Meeting that has been circulated to

shareholders and can be viewed on the Company’s website at

www.safestore.com.

Substantial shareholdings

The table below sets out the names of those persons who, insofar as the Company is aware, as at 10 November 2022 (being the nearest date of

the Company’s internal analysis to 31 October 2022), are interested directly or indirectly in 3% or more of the issued share capital of the Company.

Name of shareholder

Number of

ordinary shares

Percentage of issued

share capital

BlackRock Inc (Combined) 18,986,683 8.87

abrdn plc (Combined) 14,788,929 6.91

Cohen and Steers (Combined) 11,455,723 5.35

The Vanguard Group, Inc (Combined) 10,529,194 4.92

Principal Financial Group (Combined) 10,314,165 4.82

State Street Corporation (Combined) 7,579,381 3.54

Ameriprise Financial (Combined) 7,177,366 3.35

Legal & General Investment Mgt (London) 6,625,474 3.10

Information provided to the Company pursuant to Rule 5 of the Disclosure Guidance and Transparency Rules (“DTR”) is published on a

Regulatory Information Service and on the Company’s website.

During the current financial year and as at 31 October 2022, the Company received the following notifications in accordance with DTR 5

disclosing changes to voting interests in its issued share capital. The information provided includes the percentage of issued capital as at the

date of the notifications.

Name of shareholder Date of latest notification

Number of

ordinary shares

Percentage of

issued share capital

Nature of holding

(direct/indirect)

PGGM Vermogensbeheer B.V. 17 October 2022 7,705,623 3.65% Direct

Cohen and Steers, Inc 31 October 2022 10,459,541 4.96% Indirect

Between 1 November 2022 and 25 January 2023, being a date not more than one month prior to the date of the Company’s Notice of Annual

General Meeting 2023, the Company received the following notification(s) in accordance with DTR 5 disclosing changes to voting interests in its

issued share capital. The information provided includes the percentage of issued capital as at the date of the notification(s).

Name of shareholder

Date of

notification of interest

Number of

ordinary shares

Percentage of

issued share capital

(excluding treasury shares)

Nature of holding

(direct/indirect)

Cohen & Steers, Inc. 17 November 2022 11,028,787 5.20% Indirect

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

Safestore Holdings plc | Annual report and financial statements 2022

119

STRATEGIC REPORT

Substantial shareholdings continued

All interests disclosed to the Company in accordance with DTR 5 that

have occurred since 16 January 2023 can be found on the Company’s

website www.safestore.com.

Significant agreements and change of control

The Group’s bank facilities agreement and US Private Placement Note

agreements contain provisions entitling the counterparty to terminate

the contractual agreements in the event of a change of control of the

Group. The rules governing the Group’s share scheme arrangements

also contain provisions relating to the vesting and exercising of options

in the event of a change of control of the Group.

There are no agreements between the Company and its Directors or

employees providing for compensation for loss of office or employment

(whether through resignation, purported redundancy or otherwise) that

occurs because of a takeover bid.

Employment and environmental matters

Information in respect of the Group’s employment and environmental

policies, including the policies regarding the employment of disabled

persons and greenhouse gas reporting, is summarised in the

sustainability section on pages 46 to 73.

Amendment of the Articles of Association

The Company’s Articles of Association may only be amended by

special resolution at a general meeting of the shareholders.

Political donations

The Company made no political donations and incurred no political

expenditure during the year (FY2021: £nil). It remains the Company’s

policy not to make political donations or to incur political expenditure;

however, the application of the relevant provisions of the Companies

Act is potentially very broad in nature and, as with last year, the Board

is seeking shareholder authority to ensure that the Company does not

inadvertently breach these provisions as a result of the breadth of its

business activities. It is not the policy of the Company or its

subsidiaries to make political donations.

Disclosure of information to auditor

Each of the persons who is a Director at the date of approval of this

report confirms that:

• so far as the Director is aware, there is no relevant audit information

of which the Company’s auditor is unaware; and

• each Director has taken all the steps a Director might reasonably

ought to have taken in order to make themself aware of any relevant

audit information and to establish that the Company’s auditor is

aware of that information.

This confirmation is given and should be interpreted in accordance

with the provisions of Section 418 of the Companies Act 2006.

Independent auditor

Deloitte LLP has indicated its willingness to continue in office and the

Audit Committee has recommended resolutions at the 2023 AGM to

re-appoint Deloitte LLP as the Company’s auditor and to authorise the

Audit Committee to agree the auditor’s remuneration.

In order to comply with the requirements of the Statutory Services for

Large Companies Market Investigation (Mandatory Use of Competitive

Tender Processes and Audit Responsibilities) Order 2014 (the “Order”),

the Company intends to conduct a formal tender process for audit

services during the financial year ending 2024. The Audit Committee

considers this timing to be in the best interests of the Company, as it

allows for a new lead audit partner to be appointed (in accordance

with the Order) and conduct a full year audit ahead of the formal audit

tender process.

Annual General Meeting (“AGM”)

The AGM will be held at the Company’s registered office at Brittanic

House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT, on

Wednesday 15 March 2023 at 12.00 noon and will also be broadcast

using teleconference facilities.

The 2023 AGM will include, as special business, resolutions dealing

with authority to issue shares, disapplication of pre-emption rights,

authority to purchase the Company’s own shares, and authority to call

a general meeting on not less than 14 days’ notice. The Notice of AGM

sets out details of the business to be considered at the AGM and contains

explanatory notes on such business. This has been dispatched to

shareholders and can be found on the Company’s website at

www.safestore.com.

Shareholders are encouraged to use their vote at this year’s AGM by casting

their votes online by using our electronic proxy appointment service offered

by the Company’s Registrar, Link Group, at www.signalshares.com or

via the Link Group shareholder app, LinkVote+.

This report was approved by the Board for release on 16 January 2023

and signed on its behalf by:

Helen Bramall

Company Secretary

16 January 2023

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GOVERNANCE REPORT

Directors’ report continued

The Directors are responsible for preparing the Annual Report and the

Group and parent company financial statements in accordance with

applicable law and regulations.

Company law requires the Directors to prepare such financial statements

for each financial year. Under that law the Directors are required to

prepare the Group financial statements in accordance with United

Kingdom adopted international accounting standards. The financial

statements also comply with International Financial Reporting Standards

(“IFRS”) as issued by the IASB. The Directors have chosen to prepare

the parent company financial statements in accordance with United

Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law), including Financial Reporting

Standard 101 “Reduced Disclosure Framework”. Under company law

the Directors must not approve the financial statements unless they

are satisfied that they give a true and fair view of the state of affairs

ofthe Group and the parent company and of the profit or loss of the

Group for that period.

In preparing the parent company financial statements, the Directors

are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable

and prudent;

• state whether applicable UK Accounting Standards have been

followed, subject to any material departures disclosed and explained

in the financial statements;

• state whether Financial Reporting Standard 101 “Reduced Disclosure

Framework” has been followed, subject to any material departures

disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless

it is inappropriate to presume that the Company will continue

in business.

In preparing the Group financial statements, International Accounting

Standard 1 requires that Directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that

provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific

requirements of the financial reporting framework are insufficient

toenable users to understand the impact of particular transactions,

other events and conditions onthe entity’s financial position and

financial performance; and

• make an assessment of the Group’s ability to continue as a

going concern.

The Directors are responsible for keeping adequate accounting records

that are sufficient to show and explain the Group’s transactions and

disclose with reasonable accuracy at any time the financial position of

the parent company and the Group to enable them to ensure that the

financial statements comply with the Companies Act2006. They are

also responsible for safeguarding the assets of the parent company

and the Group and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the

corporate and financial information included on the Group’s website at

www.safestore.com. Legislation in the United Kingdom governing the

preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.

Responsibility statement

We confirm that, to the best of our knowledge:

• the financial statements, prepared in accordance with the relevant

financial reporting framework, give a true and fair view of the assets,

liabilities, financial position and profit or loss of the Group and the

undertakings included in the consolidation taken as a whole;

• the strategic report includes a fair review of the development and

performance of the business and the position of the Group and

theundertakings included in the consolidation taken as a whole,

together with a description of the principal risks and uncertainties

that they face; and

• the Annual Report and Financial Statements, taken as a whole,

arefair, balanced and understandable and provide the information

necessary for shareholders to assess the Group’s position and

performance, business model and strategy.

This responsibility statement was approved by the Board of Directors

on 16 January 2023 and is signed on its behalf by:

Frederic Vecchioli Andy Jones

Chief Executive Officer Chief Financial Officer

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

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STRATEGIC REPORT

Statement of Directors’ responsibilities

Report on the audit of the financial statements

1. Opinion

In our opinion:

• the financial statements of Safestore Holdings plc (the “parent company”) and its subsidiaries (the “Group”) give a true and fair view of the state

of the Group’s and of the parent company’s affairs as at 31 October 2022 and of the Group’s profit for the year then ended;

• the Group financial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards;

• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the consolidated income statement;

• the consolidated statement of comprehensive income;

• the consolidated and parent company balance sheets;

• the consolidated and parent company statements of changes in equity;

• the consolidated cash flow statement; and

• the Group related notes 1 to 32 and parent company related notes 1 to 12.

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and United

Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the parent

company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”

(United Kingdom Generally Accepted Accounting Practice).

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under

those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.

We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the Financial Reporting Council’s (“FRC’s”) Ethical Standard as applied to listed public interest entities,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We confirm that we have not provided any

non-audit services prohibited by the FRC’s Ethical Standard to the Group or the parent company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

3. Summary of our audit approach

Key audit matters The key audit matter that we identified in the current year was the valuation of investment properties, which is consistent

with the key audit matter identified in the prior year.

Within this report, the key audit matter is identified as follows:

Similar level of risk

Materiality The materiality that we used for the Group financial statements was £32.1 million which was determined as 2% of net

assets. For testing items affecting profit before tax we have applied a lower threshold amounting to £6.0 million which was

determined as 5% of profit before income tax, adjusted for investment property and derivative fair value movements.

Scoping We have identified four components within the Group: United Kingdom (“UK”), France, Spain and Benelux operations.

The Group audit team has performed a full scope audit of the UK component and a French component audit team has

performed a full scope audit of the French component. In addition, the Group team has performed specified procedures

at the Group level in respect of the Spanish and Benelux components.

Significant changes in

our approach

The Benelux entity represents a new wholly owned component to the Group, after the Group acquired the remaining 80%

equity stake in the business during the financial year.

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FINANCIAL STATEMENTS

Independent auditor’s report

to the members of Safestore Holdings plc

4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation

of the financial statements is appropriate.

Our evaluation of the Directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern basis

of accounting included:

• obtaining an understanding of the relevant controls relating to the going concern process;

• an assessment of the Group’s financing facilities including nature of facilities, repayment terms and covenants. This included an assessment

of the new facility entered into by the Group post year end;

• a challenge of the range of scenarios modelled by management through our understanding of sector performance and sentiment and

historical forecasting accuracy of management;

• testing the mathematical accuracy of the model used to prepare the going concern forecast;

• an assessment of the level of headroom arising in each scenario;

• an assessment of the sophistication of the model used to prepare the forecasts;

• an assessment of the outcome of the reverse stress testing performed by management; and

• an evaluation of the appropriateness of the going concern disclosures in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or

collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a going concern for a period of at least twelve

months from when the financial statements are authorised for issue.

In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention

to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt the going

concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the

current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit and directing the

efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we

do not provide a separate opinion on these matters.

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FINANCIAL STATEMENTS

STRATEGIC REPORT

Report on the audit of the financial statements continued

5. Key audit matters continued

5.1. Valuation of investment properties

Key audit matter

description

Investment properties are held at a fair value of £2,647.4 million at 31 October 2022 (FY2021: £2,031.3 million).

This is the most quantitatively material balance in the financial statements.

Property valuation, which is performed by an external valuer, is by its nature subjective with significant estimation

being applied in the assumption. We consider the key assumptions to comprise stabilised occupancy, capitalisation

rate, discount rate and net rental growth. These estimates drive a cash flow model that is used as the basis of the

valuation of each individual property. Additionally, there are specific judgements pertaining to “immature” stores which

were defined as stores open for five years or less and UK assets under leasehold with an unexpired lease term

of ten years or less.

Through our risk assessment procedures, we have identified the valuation of the properties as the area where

climate change could have the greatest impact, specifically the capital expenditure that will be required to bring

buildings up to required energy efficiency standards and the external valuer’s approach to including future capital

expenditure relating to climate change in the valuation.

For key sources of estimation uncertainty disclosures and further details of the Group’s valuation method and

assumptions, refer to notes 2 and 13 of the financial statements. The valuation of investment properties is also

discussed in the Audit Committee report on page 87.

How the scope of our

audit responded to the

key audit matter

In response to the risk of valuation of investment properties, we performed the following audit procedures:

We gained an understanding of and tested the key controls relevant to the property valuation process.

We met with the external valuer, assessed the appropriateness of the valuer’s scope and evaluated the

competence, objectivity, independence, and capability of the valuer.

We obtained the source data provided by management to the valuer (e.g. historical revenue, occupancy, average

rental rates and lettable area on a store by store basis) and tested a sample of the source data for completeness

and integrity.

We identified individual properties through analysis against the following criteria:

immature stores, defined as stores open for five years or less;

UK leasehold stores with a term of ten years or less; and

properties which display characteristics of audit interest through analysis of key assumptions, namely stabilised

occupancy, capitalisation rate, discount rate and net rent growth.

We investigated the properties identified and challenged the key estimates by assessing the appropriateness

through comparison with the market and our expectation.

With the involvement of our internal real estate specialists (who are members of the Royal Institution of Chartered

Surveyors or RICS), we performed an independent assessment of the assumptions that underpin the valuations,

based on their knowledge of the self storage industry and wider real estate market.

We evaluated whether the Group’s valuation methodology remains appropriate and assessed whether indicative

rents and yields achieved in recent comparable transactions were consistent with the assumptions used in the

Group’s valuations.

We have also challenged the valuer and management around the impact of climate change on the portfolio

valuation, if any.

We tested the accuracy and integrity of key elements of the valuer’s model. We also recalculated the valuation for

a sample of property assets, obtained contradictory evidence where available and performed a “stand-back” review

to assess the sufficiency of audit evidence.

We assessed the associated financial statement disclosures, including the appropriateness of the key sources

of estimation uncertainty sensitivity analysis.

Key observations We consider the assumptions applied in arriving at the fair value of the Group’s investment property to be reasonable,

albeit the discount rates applied were at the lower end of our acceptable range. The sensitivity disclosures are

considered appropriate given the level of estimation involved and the valuations are suitable for inclusion in the

financial statements at 31 October 2022.

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FINANCIAL STATEMENTS

Independent auditor’s report continued

to the members of Safestore Holdings plc

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a

reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in

evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Group financial statements Parent company financial statements

Materiality £32.1 million (FY2021: £27.4 million). £6.2 million (FY2021: £5.1 million).

Basis for determining

materiality

2% of net assets (FY2021: 2% of net assets). Parent company materiality represents 3% of net assets

(FY2021: 3% of net assets).

Rationale for the

benchmark applied

We considered net assets to be a critical financial

performance measure for the Group on the basis that

it is a key metric used by management, investors,

analysts and lenders.

We considered net assets to be a critical financial

performance measure for the Company on the basis

that it is a key metric used by management, investors,

analysts and lenders.

In addition to net assets, we also consider profit before income tax, adjusted for investment property and derivative fair value movements, to

be a critical financial performance measure for the Group, which aligns closely with EPRA earnings. We applied a lower threshold of £6.0 million

(FY2021: £4.0 million) for testing of balances impacting that measure, which has been determined as 5% (FY2021: 5%) of profit before income

tax adjusted for investment property and derivative fair value movements.

Audit Committee reporting

threshold £1.6m

Group materiality £32.1m

Net assets

Group materiality

Component

materiality range £5.6m to £17.4m

98+22

Net assets

£1,793.4m

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected

misstatements exceed the materiality for the financial statements as a whole.

Group financial statements Parent company financial statements

Performance materiality 70% (FY2021: 70%) of Group materiality. 70% (FY2021: 70%) of parent company materiality.

Basis and rationale for

determining performance

materiality

In determining performance materiality, we considered the following factors:

a. the quality of the control environment and whether we were able to rely on controls;

b. the low volume of uncorrected misstatements in the previous audit; and

c. turnover of management or key accounting personnel, and prior period adjustments.

6.3. Error reporting threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £1.6 million (FY2021: £1.3 million),

as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee

on disclosure matters that we identified when assessing the overall presentation of the financial statements.

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FINANCIAL STATEMENTS

STRATEGIC REPORT

Report on the audit of the financial statements continued

7. An overview of the scope of our audit

7.1. Identification and scoping of components

Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and assessing the

risks of material misstatement at the Group level.

We have determined that there are four components within the Group: United Kingdom, France, Spain and Benelux operations. The group audit

team have performed a full scope audit of the UK component and a French component audit team have performed a full scope audit of the French

component. In addition, the group audit team have performed specified procedures at group level in respect of the Spanish and Benelux components.

We instructed the French component auditors to perform the audit of the France component and supervised their work through regular communication.

We attended their local audit close meeting with the local management team as well as evaluated the outputs of their work in person and challenged

their conclusions as part of our component oversight role.

Our component audit work was executed at levels of materiality applicable to each individual component which were lower than Group

materiality, ranging from £5.6 million to £17.4 million (FY2021: £4.8 million to £15.4 million). In addition, for the lower materiality threshold

described above, our component thresholds ranged from £1.1 million to £3.4 million (FY2021: £0.7 million to £2.2 million).

7.2. Our consideration of the control environment

We have obtained an understanding of the relevant controls such as those relating to the financial reporting cycle, and those in relation to our key

audit matter. Together with our IT specialists we tested certain controls over the financial reporting systems.

We have decided not to rely on controls as the control environment is predominantly manual in nature.

7.3. Our consideration of climate-related risks

We have made enquiries of management to understand the processes in place to assess the potential impact of climate change on the business and the

financial statements. Management considers climate change to be a principal risk which particularly impacts the cost of retrofitting stores to improve

their sustainability credentials and comply with future regulations. These risks are consistent with those identified through our own risk assessment

process.

As part of our identification of key audit matters, we consider there to be a risk in relation to climate change as part of the valuation of investment

properties. There is a risk that the valuation does not include the relevant assumptions around climate change, principally, capital expenditure

required to bring the stores up to a certain environmental standard, to the extent assumed by a third party when determining fair value.

As detailed in our procedures in section 5.1 above, we challenged the valuer and management as to the assumptions included, and considered

their reasonableness with the assistance of our internal real estate specialists. We have reviewed the disclosures in the principal risk section and

page 45 of the Annual Report and consider that management has appropriately disclosed the current risk that has been identified.

8. Other information

The other information comprises the information included in the Annual Report, other than the financial

statements and our auditor’s report thereon. The Directors are responsible for the other information contained

within the Annual Report.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is

materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or

otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine

whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work

we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact.

We have nothing to report

in this regard.

9. Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial statements

and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the parent company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors

either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but

is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements

can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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FINANCIAL STATEMENTS

Independent auditor’s report continued

to the members of Safestore Holdings plc

11. Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,

outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of

detecting irregularities, including fraud, is detailed below.

11.1. Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and

regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration

policies, key drivers for Directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management, internal audit and the Audit Committee about their own identification and assessment of the risks

of irregularities;

• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

• the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists,

including tax, IT and property valuation specialists regarding how and where fraud might occur in the financial statements and any potential

indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified

the greatest potential for fraud in the assumptions used in the valuation of investment properties as they are subject to management bias. In

common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws

and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws

and regulations we considered in this context included the UK Companies Act, Listing Rules and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance

with which may be fundamental to the Group’s ability to operate or to avoid a material penalty.

11.2. Audit response to risks identified

As a result of performing the above, we identified the valuation of investment properties as a key audit matter related to the potential risk of fraud.

The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response

to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws

and regulations described as having a direct effect on the financial statements;

• enquiring of management, the Audit Committee and external legal counsel concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement

due to fraud;

• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence

with HMRC; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business

rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal

specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations

throughout the audit.

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the Directors’ report for the financial year for which the financial statements are prepared

is consistent with the financial statements; and

• the strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the Group and the parent company and their environment obtained in the course of the audit,

we have not identified any material misstatements in the strategic report or the Directors’ report.

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STRATEGIC REPORT

Report on other legal and regulatory requirements continued

13. Corporate governance statement

The Listing Rules require us to review the Directors’ statement in relation to going concern, longer term viability and that part of the corporate

governance statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance

statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• the Directors’ statement with regard to the appropriateness of adopting the going concern basis of accounting and any material uncertainties

identified set out on page 117;

• the Directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period is appropriate

set out on page 44;

• the Directors’ statement on fair, balanced and understandable set out on page 121;

• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 37 to 42;

• the section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set out on

page 79; and

• the section describing the work of the Audit Committee set out on page 86.

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the parent company, or returns adequate for our

audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns.

We have nothing to report in

respect of thesematters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’

remuneration have not been made or the part of the Directors’ remuneration report to be audited is not in

agreement with the accounting records and returns.

We have nothing to report in

respect of thesematters.

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the Audit Committee, we were appointed by the shareholders on 12 October 2014 to audit the financial

statements for the year ending 31 October 2014 and subsequent financial periods. The period of total uninterrupted engagement including

previous renewals and re-appointments of the firm is nine years, covering the years ending 31 October 2014 to 31 October 2022.

15.2. Consistency of the audit report with the additional report to the Audit Committee

Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in accordance with ISAs (UK).

16. Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.

Ourauditwork has been undertaken so that we might state to the Company’s members those matters we are required to state to them

inanauditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone

otherthan the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As required by the Financial Conduct Authority (“FCA”) Disclosure Guidance and Transparency Rule (“DTR”) 4.1.14R, these financial statements

form part of the European Single Electronic Format (“ESEF”) prepared Annual Financial Report filed on the National Storage Mechanism of the

UK FCA in accordance with the ESEF Regulatory Technical Standard (“ESEF RTS”). This auditor’s report provides no assurance over whether the

annual financial report has been prepared using the single electronic format specified in the ESEF RTS.

Darren Longley FCA (Senior Statutory Auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

16 January 2023

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Independent auditor’s report continued

to the members of Safestore Holdings plc

Group

Notes

2022

£’m

2021

£’m

Revenue 3, 4 212.5 186.8

Cost of sales (63.0) (56.9)

Gross profit 149.5 129.9

Administrative expenses (27.1) (34.0)

Share of loss in associate 12 (0.3) —

Underlying EBITDA 135.1 118.0

Exceptional items 5 (0.1) (1.9)

Share-based payments (11.2) (18.3)

Depreciation and variable lease payments (1.3) (1.4)

Share of associate’s depreciation, interest and tax (0.4) (0.5)

Operating profit before gains on investment properties and other exceptional gains 122.1 95.9

Gain on investment properties 13 381.6 321.1

Other exceptional gains 5 10.8 —

Operating profit 4, 6 514.5 417.0

Finance income 8 2.0 0.6

Finance expense 8 (17.7) (13.0)

Profit before income tax 498.8 404.6

Income tax charge 9 (35.9) (22.6)

Profit for the year 462.9 382.0

Earnings per share for profit attributable to the equity holders

– basic (pence) 11 219.5 181.2

– diluted (pence) 11 212.4 176.4

The financial results for both years relate to continuing operations.

Underlying EBITDA is an Alternative Performance Measure and is defined as operating profit before exceptional items, share-based payments,

corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments and the share of associate’s

depreciation, interest and tax.

The notes on pages 133 to 165 are an integral part of these consolidated financial statements.

Consolidated statement of comprehensive income

for the year ended 31 October 2022

Group

2022

£’m

2021

£’m

Profit for the year 462.9 382.0

Other comprehensive income/(expense)

Items that may be reclassified subsequently to profit or loss:

Currency translation differences 8.0 (20.3)

Net investment hedge (4.6) 10.9

Other comprehensive income/(expense), net of tax 3.4 (9.4)

Total comprehensive income for the year 466.3 372.6

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OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

Consolidated income statement

for the year ended 31 October 2022

Group

Notes

2022

£’m

2021

£’m

Assets

Non-current assets

Investment in associates 12 1.8 7.2

External valuation of investment properties, net of lease liabilities 2,457.8 1,881.8

Add-back of lease liabilities 95.1 82.1

Investment properties under construction 94.5 67.4

Total investment properties 13 2,647.4 2,031.3

Property, plant and equipment 14 3.4 3.2

Derivative financial instruments 20 — 0.9

Deferred income tax assets 22 0.8 0.8

2,653.4 2,043.4

Current assets

Inventories 0.3 0.5

Derivative financial instruments 20 1.7 1.3

Trade and other receivables 16 31.2 28.9

Cash and cash equivalents 17 20.9 43.2

54.1 73.9

Total assets 2,707.5 2,117.3

Current liabilities

Financial liabilities:

– bank borrowings 19 (101.7) —

– derivative financial instruments 20 — (0.2)

Trade and other payables 18 (62.7) (75.8)

Current income tax liabilities (0.8) (0.3)

Lease liabilities 21 (13.2) (12.3)

(178.4) (88.6)

Non-current liabilities

Financial liabilities:

– bank borrowings 19 (522.1) (484.7)

Deferred income tax liabilities 22 (129.0) (97.0)

Lease liabilities 21 (82.2) (70.0)

Provisions 27 (2.4) (2.1)

(735.7) (653.8)

Total liabilities (914.1) (742.4)

Net assets 1,793.4 1,374.9

Equity

Ordinary shares 23 2.1 2.1

Share premium 61.8 61.3

Translation reserve 8.5 5.1

Retained earnings 1,721.0 1,306.4

Total equity 1,793.4 1,374.9

These financial statements were authorised for issue by the Board of Directors on 16 January 2023 and signed on its behalf by:

A Jones F Vecchioli

Chief Financial Officer Chief Executive Officer

Company registration number: 04726380

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130

FINANCIAL STATEMENTS

Consolidated balance sheet

as at 31 October 2022

Group

capital

£’m

premium

£’m

Translation

reserve

£’m

Retained

earnings

£’m

Total

£’m

Balance at 1 November 2020 2.1 60.6 14.5 958.4 1,035.6

Comprehensive income

Profit for the year — — — 382.0 382.0

Other comprehensive (expense)/income

Currency translation differences — — (20.3) — (20.3)

Net investment hedge — — 10.9 — 10.9

Total other comprehensive expense — — (9.4) — (9.4)

Total comprehensive (expense)/income — — (9.4) 382.0 372.6

Transactions with owners

Dividends (note 10) — — — (42.6) (42.6)

Increase in share capital — 0.7 — — 0.7

Employee share options — — — 8.6 8.6

Transactions with owners — 0.7 — (34.0) (33.3)

Balance at 1 November 2021 2.1 61.3 5.1 1,306.4 1,374.9

Comprehensive income

Profit for the year — — — 462.9 462.9

Other comprehensive income/(expense)

Currency translation differences — — 8.0 — 8.0

Net investment hedge — — (4.6) — (4.6)

Total other comprehensive income — — 3.4 — 3.4

Total comprehensive income — — 3.4 462.9 466.3

Transactions with owners

Dividends (note 10) — — — (56.9) (56.9)

Increase in share capital — 0.5 — — 0.5

Employee share options — — — 8.6 8.6

Transactions with owners — 0.5 — (48.3) (47.8)

Balance at 31 October 2022 2.1 61.8 8.5 1,721.0 1,793.4

The translation reserve balance of £8. 5 million (FY2021: £5 . 1 million) comprises all foreign exchange differences arising from the translation of

the financial statements of foreign operations and the impact of the net investment hedge. The cumulative impact of the net investment hedge

included within this reserve is a net expense of £0. 1 million (FY2021: £4 .7 million).

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OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

Consolidated statement of changes in shareholders’ equity

for the year ended 31 October 2022

Group

Notes

2022

£’m

2021

£’m

Cash flows from operating activities

Cash generated from operations 24 132.2 115.6

Interest received 0.1 0.9

Interest paid (16.9) (14.1)

Tax paid (5.6) (5.4)

Net cash inflow from operating activities 109.8 97.0

Cash flows from investing activities

Acquisition of subsidiary, net of cash acquired (111.5) —

Investment in associates (0.8) (1.9)

Loans to associates — (0.9)

Expenditure on investment properties and development properties (95.2) (62.4)

Proceeds from disposal of investment properties 6.4 —

Proceeds from disposal of land 1.0 —

Purchase of property, plant and equipment (1.0) (1.0)

Proceeds from sale of property, plant and equipment 0.2 —

Net cash outflow from investing activities (200.9) (66.2)

Cash flows from financing activities

Issue of share capital 0.5 0.7

Equity dividends paid 10 (56.9) (42.6)

Proceeds from borrowings 266.1 196.8

Repayment of borrowings (134.0) (153.0)

Exceptional swap termination 8 0.5 —

Financial instruments income 8 1.3 —

Debt issuance costs (0.1) (0.7)

Principal payment of lease liabilities (8.4) (7.5)

Net cash inflow/(outflow) from financing activities 69.0 (6.3)

Net (decrease)/increase in cash and cash equivalents (22.1) 24.5

Exchange loss on cash and cash equivalents (0.2) (0.9)

Cash and cash equivalents at 1 November 43.2 19.6

Cash and cash equivalents at 31 October 17, 25 20.9 43.2

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132

FINANCIAL STATEMENTS

Consolidated cash flow statement

for the year ended 31 October 2022

1. General information

Safestore Holdings plc (the “Company”) and its subsidiaries (together, the “Group”) provide self storage facilities to customers throughout the UK, Paris,

Spain, the Netherlands, and Belgium. The Company is a public limited company, which is listed on the London Stock Exchange and incorporated and

domiciled in the UK, England and Wales. The address of its registered office is Brittanic House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT.

2. Summary of significant accounting policies

The principal accounting policies of the Group are set out below. These policies have been consistently applied to each of the years presented,

unless otherwise stated.

Basis of preparation

The consolidated financial statements have been prepared in accordance with United Kingdom adopted International Financial Reporting

Standards (“IFRS”) and International Financial Reporting Interpretations Committee (“IFRIC”) interpretations. They also comply with those parts

of the Companies Act 2006 applicable to companies reporting under IFRS.

The Group consolidated financial statements are presented in Sterling and are rounded to the nearest £0.1 million, unless otherwise stated. They

are prepared on a going concern basis under the historical cost convention as modified by the revaluation of investment properties and the fair

value of derivative financial instruments.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and assumptions that

affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses

during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual

amounts may differ from those estimates.

Going concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less thantwelve

months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing this consolidated financial information.

In assessing the Group’s going concern position as at 31 October 2022, the Directors have considered a number of factors, including the current

balance sheet position, the principal and emerging risks which could impact the performance of the Group and the Group’s strategic and financial

plan. Consideration has been given to compliance with borrowing covenants along with the uncertainty inherent in future financial forecasts.

TheDirectors considered the most recent three-year outlook approved by the Board. In the context of the current environment, four plausible

scenarios were applied to the plan, including a stress test scenario. These were based on the potential financial impact of the Group’s principal

risks and uncertainties and the specific risks associated with the continued pandemics and the conflict in Ukraine. These scenarios are

differentiated by the impact of demand and enquiry levels, average rate growth and the level of cost savings. A scenario was also performed

where we have carried out a reverse stress test to model what would be required to breach ICR and LTV covenants which indicated highly

improbable changes would be needed before any issues were to arise. Since the end of the financial year, the Group has completed the

refinancing of its Revolving Credit Facilities (“RCF’s”) which were due to expire in June 2023. The previous £250 million and €70 million RCF’s

have been replaced with a single multi-currency £400 million facility, with a four-year term with two one-year extension options (note 32). The

impact

of these scenarios has been reviewed against the Group’s projected cash flow position and financial covenants over a three-year period. Should

any of these scenarios, which are differentiated by the impact of demand and enquiry levels, average rate growth andthe level of cost savings,

occur, clear mitigating actions are available to ensure that the Group remains liquid and able to meet its liabilities asthey fall due. The financial

position of the Group, including details of its financing and capital structure, is set out in the financial review sectionof this report. Further details

of the Group’s viability statement are set out on page 44.

Standards, amendments to standards and interpretations issued and applied

The following new or revised accounting standards or IFRIC interpretations are applicable for the first time in the year ended 31 October 2022:

• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2

• Amendment to IFRS 16 Covid-19–Related Rent Concessions beyond 30 June 2021

The adoption of the standards and interpretations has not significantly impacted these financial statements and any changes to our accounting

policies as a result of their adoption have been reflected in this note.

New and revised IFRSs in issue but not yet effective

At the date of authorisation of these financial statements, a number of new standards and amendments to standards and interpretations have

been issued but are not yet effective for the current accounting period. The Directors do not expect these standards to have a material impact

on the financial statements of the Group or Company.

• Amendments to IFRS 3 References to the Conceptual Framework in IFRS Standards

• Amendments to IAS 16 Property, Plant and Equipment – Proceeds before Intended Use

• Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract

• Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 Annual Improvements to IFRS Standards 2018–2020

• IFRS 17 Insurance Contracts

• Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policy

• Amendments to IAS 8 Definition of Accounting Estimate

• Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction

• Amendments to IAS 1 Classification of Liabilities as Current or Non-current

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133

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

Notes to the financial statements

for the year ended 31 October 2022

2. Summary of significant accounting policies continued

Basis of consolidation and business combinations

The consolidated financial statements incorporate the financial statements of the Company and all its subsidiary undertakings made up to

31 October each year. Subsidiaries are entities controlled by the Company. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date

of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those

used by the Group.

All intra-group transactions, balances and unrealised gains on transactions are eliminated on consolidation. Unrealised losses are also eliminated

unless the transaction provides evidence of an impairment of the assets transferred.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the

acquisition is measured as the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity

instruments issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are

measured initially at their fair values at the date of acquisition. Any excess of the cost of an acquisition over the fair value of the Group’s share of

net identifiable assets including intangible assets of the acquired entity at the date of acquisition is recognised as goodwill. Any discount received

is credited to the income statement in the year of acquisition as negative goodwill on acquisition of subsidiary. Costs attributable to an acquisition

are expensed in the consolidated income statement under the heading “administrative expenses”.

Investment in associates

An associate is an entity over which the Group is in a position to exercise significant influence, but not control or joint control, through

participation in the financial and operating policy decisions of the investee. Significant influence is the power to participate in the financial and

operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting except

when classified as held for sale. Investments in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the

Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of

the Group’s interest in that associate (which includes any long term interests that, in substance, form part of the Group’s net investment in the

associate) are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the

associate. Where necessary, adjustments are made to the financial statements of associates to bring the accounting policies used into line with

those used by the Group. Where a Group company transacts with an associate of the Group, profits and losses are eliminated to the extent of

the Group’s interest in the relevant associate. Losses may provide evidence of an impairment of the asset transferred, in which case appropriate

provision is made for impairment.

Segmental reporting

IFRS 8 “Operating Segments” (“IFRS 8”) requires operating segments to be identified based upon the Group’s internal reporting to the chief

operating decision maker (“CODM”) to make decisions about resources to be allocated to segments and to assess their performance. The

CODM is the person or group that allocates resources to and assesses the performance of the operating segments of an entity. The Group

has determined that its CODM are the Executive Directors.

An operating segment is a component of an entity:

(a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to

transactions with other components of the same entity);

(b) whose operating results are regularly reviewed by the entity’s CODM to make decisions about resources to be allocated to the segment

and assess its performance; and

The Group’s net assets, revenue and profit before tax are attributable to one principal activity, the provision of self storage, in four geographical

reporting segments, the United Kingdom, Paris in France, Spain, and the Netherlands and Belgium in Benelux.

Segment results, assets and liabilities include items directly attributable to segments as well as those that can be allocated on a reasonable basis.

Revenue recognition

Revenue represents amounts derived from the provision of self storage services (rental space, customer goods insurance and consumables) which

fall within the Group’s activities provided in the normal course of business, net of discounts, VAT (where applicable) and other sales related taxes.

Rental income is recognised over the period for which the space is occupied by the customer on a time apportionment basis. No revenue is

recognised if there are significant uncertainties regarding recovery of the consideration due. Insurance income is recognised over the period for

which the space is occupied by the customer on a time apportionment basis.

The Group has put in place insurance arrangements whereby the Group purchases block policies from third party insurers that customers can

access, for which it pays annual premiums at the beginning of the insurance year. The Group allows customers to benefit from the policies and

charges a fee for the level of cover that the customer needs. The block policies purchased and the income earned from charging customers are

independent transactions. Although Safestore is involved in the initial handling of any customers’ insurance claims, these are passed on to the

third party insurance providers, who are responsible for all insurance payments. The Group is not exposed to insurance risk.

Safestore Holdings plc | Annual report and financial statements 2022

134

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

2. Summary of significant accounting policies continued

Revenue recognition continued

The Group bears the inventory risk and pricing risk associated with these contracts and as such the Group acts as principal in the provision

ofthe access to insurance services for its customers who elect to access that insurance, and therefore revenue from insurance premiums is

reported on a gross basis. The portion of insurance premiums receivable from customers on occupied space that relates to unexpired risks

atthe balance sheet date is reported as unearned premium liability in other payables.

Income for the sale of assets and consumables is recognised when the significant risks and rewards have been transferred to the buyer.

Forproperty sales this is generally at the point of completion. Where any aspect of consideration is conditional then the revenue associated

withthat conditional item is deferred. Income earned on the sales of consumable items is recognised at the point of sale.

Income from insurance claims is recognised when it is virtually certain of being received.

Foreign currency translation

Functional and presentation currency

The individual financial statements for each company are measured using the currency of the primary economic environment in which it operates

(its functional currency). For the purposes of the consolidated financial statements, the results and financial position of the Group are expressed

in Sterling, which is the presentational currency of the Group.

Transactions and balances

Foreign currency transactions are translated into the functional currency at the rates of exchange prevailing on the dates of the transactions.

Ateach balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on

the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the

rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the income statement for

the period, except for exchange differences arising on non-monetary assets and liabilities where the changes in fair value are recognised directly

in equity.

On consolidation, the assets and liabilities of the Group’s overseas operations are translated into the Group’s presentational currency at

exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period.

Exchange differences arising are classified as equity and are recognised as a separate component of equity, within the translation reserve.

Such translation differences are recognised as income or expense in the period in which the operation is disposed of.

Borrowing costs

All borrowing costs are recognised in the statement of comprehensive income in the period in which they are incurred, unless the costs are incurred

as part of the development of a qualifying asset, when they will be capitalised. Commencement of capitalisation is the date when the Group incurs

expenditure for the qualifying asset, incurs borrowing costs and undertakes activities that are necessary to prepare the assets for their intended

use when it is probable that they will result in future economic benefits to the entity and the costs can be measured reliably. In the case of suspension

of activities during extended periods, the Group suspends capitalisation. The Group ceases capitalisation of borrowing costs when substantially

all of the activities necessary to prepare the asset for use are complete, typically when a store opens.

Investment properties and investment properties under construction

Investment properties are those properties owned by the Group that are held to earn rental income, or for capital growth, or both. Investment

properties and investment properties under construction are initially measured at cost, including related transaction and borrowing costs. After

initial recognition, investment properties and investment properties under construction are held at fair value based on a market valuation by

professionally qualified external valuers at each balance sheet date.

The fair value of investment properties and investment properties under construction reflects, among other things, rental income from current

leases and assumptions about rental income from future leases in light of current market conditions. The fair value also reflects, on a similar

basis, any cash outflows that could be expected in respect of the property. Some of these outflows are recognised as a liability, including lease

liabilities in respect of leasehold land and buildings classified as investment properties; others, including variable lease payments not based on

an index or rate, are not recognised in the balance sheet.

In accordance with IAS 40, investment property held as a leasehold is stated gross of the recognised lease liability. Leasehold properties are

classified as investment properties and included in the balance sheet at fair value. The obligation to the lessor for the leasehold is included in the

balance sheet at the present value of the minimum lease payments. The minimum lease payment valuation is re-measured at the point of lease

modification and the value of the Group’s right-of-use assets is adjusted accordingly over the lease term. Gains or losses arising on changes in

the fair values of investment properties and investment properties under construction at the balance sheet date are recognised in the income

statement in the period in which they arise.

Gains or losses on sale of investment properties are calculated as the difference between the consideration received and fair value estimated

at the previous balance sheet date.

If an investment property or part of an investment property becomes owner-occupied, it is reclassified as property, plant and equipment, and

its fair value at the date of reclassification becomes its cost for accounting purposes.

Property, plant and equipment

Property, plant and equipment not classified as investment properties or investment properties under construction are stated at historical cost

less accumulated depreciation and any accumulated impairment loss. Historical cost comprises the purchase price and costs directly incurred

in bringing the asset into use.

Assets’ residual values and useful lives are reviewed and, if appropriate, adjusted at each balance sheet date. If the carrying amount of an asset

is greater than the recoverable amount then the carrying amount is written down immediately to the recoverable amount.

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GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

2. Summary of significant accounting policies continued

Property, plant and equipment continued

Depreciation is charged so as to write off the cost of an asset less estimated residual value of each asset over its expected useful life using the

straight-line method. The principal rates are as follows:

Owner-occupied freehold buildings 2% per annum

Motor vehicles 20–25% per annum

Computer hardware and software 15–33% per annum

Fixtures, fittings, signs and partitioning 10–15% per annum

The gain or loss arising on the retirement or disposal of an asset is determined as the difference between the net sales proceeds and the

carrying amount of the asset and is recognised in the income statement on disposal.

Impairment of tangible assets (excluding investment property)

At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those

assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates

the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is deemed to be the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future

cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset

(or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.

A reversal of an impairment loss is recognised as income immediately.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises all costs of purchase and other costs incurred in bringing the

inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the

estimated selling price less directly associated costs. Provision is made for slow-moving or obsolete stock, calculated on the basis of sales

trends observed in the year.

As at 31 October 2022 the Group held finished goods and goods held for resale of £0.3 million (FY2021: £0.5 million). The Group consumed

£0.7 million (FY2021: £1.0 million) of inventories during the year. Inventory write downs were £nil for the financial year ended 31 October 2022

(FY2021: £0.1 million). Inventories of £nil (FY2021: £nil) are carried at fair value less costs to sell.

Leases

A right-of-use asset and corresponding lease liability are recognised at commencement of the lease. The lease liability is measured at the

present value of the lease payments, discounted at the rate implicit in the lease, or if that cannot be readily determined, at the lessee’s

incremental borrowing rate specific to the term, country, currency and start date of the lease. Lease payments include: fixed payments; variable

lease payments dependent on an index or rate, initially measured using the index or rate at commencement; the exercise price under a purchase

option if the Group is reasonably certain to exercise; penalties for early termination if the lease term reflects the Group exercising a break option;

and payments in an optional renewal period if the Group is reasonably certain to exercise an extension option or not exercise a break option.

The lease liability is subsequently measured at amortised cost using the effective interest rate method. It is re-measured at the point of lease

modification, with a corresponding adjustment to the right-of-use asset, when there is a change in future lease payments resulting from a rent

review, change in an index or rate such as inflation, or change in the Group’s assessment of whether it is reasonably certain to exercise a

purchase, extension or break option.

The corresponding asset is initially measured at cost, comprising: the initial lease liability; any lease payments already made less any lease

incentives received; initial direct costs; and any dilapidation or restoration costs. The Group has two categories of assets in respect of leases:

those in respect of leases related to its leasehold properties, classified as investment property, and an occupational lease for its Head Office in

France, classified as a right-of-use asset under IFRS 16. The right-of-use assets classified as investment property are subsequently measured

atfair value, gross of the lease liability. The right-of-use asset in respect of its occupational leases is classified as property, plant and equipment

and is subsequently depreciated over the length of the lease.

Leases of low value assets and short term leases of twelve months or less are expensed to the Group consolidated income statement.

Variable lease payments, being the difference between the rent review accruals that will become payable but not yet finalised and the minimum

lease payments of the lease liability on current actual rent paid, are charged as expenses in the years in which they are payable.

Finance charges are charged directly against income, unless they are directly attributable to qualifying assets, in which case they are capitalised

in accordance with the Group’s general policy on borrowing costs.

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136

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

2. Summary of significant accounting policies continued

Financial instruments

(a) Financial assets

Financial assets are classified as financial assets at fair value through profit or loss (“FVTPL”) or at amortised cost as appropriate. The Group

determines the classification of its assets at initial recognition.

Financial assets are de-recognised only when the contractual right to the cash flows from the financial asset expires or the Group transfers

substantially all risks and rewards of ownership.

A financial asset is measured at amortised cost if it meets both of the following conditions:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost as described above are measured through FVTPL. This includes all derivative

financial assets.

Financial assets at FVTPL – these assets are subsequently measured at fair value. Net gains and losses, including any interest, are recognised

inprofit or loss.

Financial assets at amortised cost – these assets are subsequently measured at amortised cost using the effective interest method. The

amortised cost is reduced by impairment losses (expected losses). Interest income, foreign exchange gains and losses and impairment are

recognised in profit or loss. Any gain or loss on de-recognition is recognised in profit or loss.

The Group has the following classes of financial assets:

• Trade and other receivables – trade receivables are initially recognised at transaction price. Other receivables are initially recognised at fair

value. Subsequently, these assets are measured at amortised cost using the effective interest method, less provision for expected

credit losses.

• Cash and cash equivalents – cash and cash equivalents represent only liquid assets with original maturity of 90 days or less. Bank overdrafts

that cannot be offset against other cash balances are shown within borrowings in current liabilities on the balance sheet. Cash and cash

equivalents are also classified as amortised cost. They are subsequently measured at amortised cost. Cash and cash equivalents include

cashin hand, deposits at call with banks, and other short term highly liquid investments with original maturities of three months or less.

(b) Impairment of financial assets

The Group applies the IFRS 9 simplified approach to measuring expected credit losses (“ECLs”) which uses a lifetime expected loss allowance

on trade receivables. The expected credit losses are estimated using a provisions matrix based upon the Group’s historical credit loss

experience and geographic business unit, adjusted for factors that are specific to the debtors, general economic conditions, and an assessment

of both the current and forecast direction of conditions at the reporting date, including time value of money where appropriate.

Loss allowances for other receivables are initially measured at an amount equal to twelve months’ expected credit losses (“ECLs”) and subsequently

it is assessed whether the credit risk has increased significantly since initial recognition. When determining whether the credit risk of a financial

asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information

that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the

Company’s historical experience and informed credit assessment and including forward-looking information. If the credit risk increased significantly,

the loss allowance is then measured using the lifetime ECL. The Group considers a financial asset to be in default when the borrower is unlikely

to pay its credit obligations to the Group in full.

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for

trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains

and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost

using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss

on de-recognition is also recognised in profit or loss.

The Group has the following classes of financial liabilities:

• Trade and other payables – trade and other payables are initially recognised at fair value. Subsequently they are measured at amortised

cost using the effective interest rate method.

• Borrowings – interest-bearing bank loans and overdrafts are initially recognised at fair value, net of directly attributable transaction costs.

Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in

the income statement using the effective interest method and are included within the carrying amount of the instrument to the extent that they

are not settled in the period in which they arise. Where fees are payable in relation to raising debt the costs are disclosed in the cash flow

statement within financing activities.

Where existing borrowings are replaced by others from the same lenders on substantially different terms, or the terms of existing borrowings are

substantially modified, such an exchange or modification is treated as a de-recognition of the original borrowings and the recognition of new

borrowings, and the difference in the respective carrying amounts, including issuance costs, is recognised in the income statement. Otherwise,

issuance costs incurred on refinancing are offset against the carrying value of borrowings.

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2. Summary of significant accounting policies continued

Financial instruments continued

(d) Derivative financial instruments

The Group uses derivative financial instruments such as interest rate swaps, cross-currency swaps, and foreign exchange swaps, to hedge risks

associated with fluctuations on borrowings and foreign operations transactions. Such derivatives are initially recognised and measured at fair

value on the date a derivative contract is entered into and subsequently re-measured at fair value at each reporting date. The gain or loss on

re-measurement is taken to finance expense in the income statement. Interest costs for the period relating to derivative financial instruments,

which economically hedge borrowings, are recognised within interest payable on bank loans and overdrafts. Other fair value movements on

derivative financial instruments are recognised within fair value movement of derivatives. Designation as part of an effective hedge relationship

occurs at inception of a hedge relationship. Currently, the Group does not have any cash flow hedges or fair value hedges.

The borrowings denominated in foreign currency are used to hedge net assets. The effective part of any gain or loss on borrowings that are

designated as a hedge of a net investment in a foreign operation is recognised in other comprehensive income and presented in the translation

reserve in equity and is subsequently recognised in the Group income statement as part of the profit or loss on disposal of the net investment.

The ineffective portion of the gain or loss is recognised immediately within trading profit in the Group income statement.

Taxation including deferred tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement

because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable

or deductible. The Group’s liability for current tax is calculated using tax rates for that period that have been enacted or substantively enacted by

the balance sheet date.

Deferred tax is provided on items that may become taxable at a later date, on the difference between the balance sheet value and the tax base

value, on an undiscounted basis. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent

that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Employee benefit costs

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-managed

retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s obligations under the schemes are

equivalent to those arising in a defined contribution retirement benefit scheme.

Share capital

Ordinary shares are classified as equity.

Costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Share-based payments

Share-based incentives are provided to employees under the Group’s Long Term Incentive Plan and employee Sharesave schemes. The Group

recognises a compensation cost in respect of these schemes that is based on the fair value of the awards, measured using Black-Scholes or

Monte Carlo valuation methodologies. For equity-settled schemes, the fair value is determined at the date of grant and is not subsequently

re-measured unless the conditions on which the award was granted are modified. For cash-settled schemes, the fair value is determined at

the date of grant and is re-measured at each balance sheet date until the liability is settled. Generally, the compensation cost is recognised on

a straight-line basis over the vesting period. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to the

failure to satisfy service conditions or non-market performance conditions.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of consolidated financial statements under IFRS requires the Directors to make judgements, estimates and assumptions that

may affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual outcomes

maytherefore differ from these judgements, estimates and assumptions.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period

in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

Key sources of estimation uncertainty

The following key source of estimation uncertainty has significant risk of causing a material adjustment, within the next financial year, to the carrying

amounts of assets and liabilities within the consolidated financial statements:

Estimate of fair value of investment properties and investment properties under construction

The Group values its investment properties using a discounted cash flow methodology which is based on projections of net operating income.

Principal assumptions and management’s underlying estimation of the fair value of those relate to: stabilised occupancy levels; expected future

growth in storage rental income and operating costs; maintenance requirements; capitalisation rate; and discount rates. There are

inter-relationships between the valuation inputs and they are primarily determined by market conditions. The effect of an increase in more than

one input could be to magnify the impact on the valuation. However, the impact on the valuation could be offset by the inter-relationship of two

inputs moving in opposite directions, e.g. an increase in rent may be offset by a decrease in occupancy, resulting in minimal net impact on the

valuation. For immature stores, these underlying estimates hold a higher risk of uncertainty, due to the unproven nature of its cash flows. A more

detailed explanation of the background, methodology and estimates made by management that are adopted in the valuation of the investment

properties, as well as detailed sensitivity analysis, is set out in note 13 to the financial statements.

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

2. Summary of significant accounting policies continued

Critical accounting judgements and key sources of estimation uncertainty continued

Critical accounting judgements

Critical accounting judgement of business combinations

The Directors assessed whether the acquisition of property through the purchase of a corporate vehicle should be accounted for as an asset

purchase or a business combination. Where the acquired vehicle is an integrated set of activities and assets that is capable of being conducted

andmanaged to provide a return to investors, the transaction is accounted for as a business combination. Where this is not the case, or where

the transaction meets the requirements of the Concentration of Fair Value test, the transaction is treated as an asset purchase. The Directors also

have to assess when the Group has gained control of the acquired corporate vehicle. There have been two transactions where properties were

acquired through the purchase of corporate vehicles in the year, both judged to meet the accounting definition of an asset purchase. The most

significant of the two transactions was whereby the Group acquired the remaining interest in Safestore Storage Benelux B.V. (note 12) that was

previously accounted for as a 20% associate. Upon gaining control, the total consideration price was allocated across the group of assets being

acquired and the increased carrying values recognised within the now subsidiary investment.

Non-GAAP financial information/Alternative Performance Measures

The Directors have identified certain measures that they believe will assist the understanding of the performance of the business. The measures are

not defined under IFRS and they may not be directly comparable with other companies’ adjusted measures. The non-GAAP/Alternative Performance

Measures are not intended to be a substitute for, or superior to, any IFRS measures of performance but they have been included as the Directors

consider them to be important comparables and key measures used within the business for assessing performance. The following are the key

non-GAAP/Alternative Performance Measures identified by the Group:

• The Group defines exceptional items to be those that warrant, by virtue of their nature, size or frequency, separate disclosure on the face of

the income statement where, in the opinion of the Directors, this enhances the understanding of the Group’s financial performance.

• Underlying EBITDA is an Alternative Performance Measure and is defined as operating profit before exceptional items, share-based payments,

corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments and the share of associate’s

depreciation, interest and tax. Management considers this presentation to be representative of the underlying performance of the business,

as it removes the income statement impact of items not fully controllable by management, such as the revaluation of derivatives and

investment properties, and the impact of exceptional credits, costs and finance charges. A reconciliation of statutory operating profit to

Underlying EBITDA can be found in the financial review on page 23.

• Adjusted Diluted EPRA Earnings per Share is based on the European Public Real Estate Association’s definition of earnings and is defined

as profit or loss for the period after tax but excluding corporate transaction costs, change in fair value of derivatives, gain/loss on investment

properties and the associated tax impacts. The Company then makes further company-specific adjustments for the impact of exceptional

items, net exchange gains/losses recognised in net finance costs, exceptional tax items, and deferred and current tax in respect of these

adjustments. The Company also adjusts for IFRS 2 share-based payment charges. This adjusted earnings is divided by the diluted number of

shares. The IFRS 2 cost is excluded as it is written back to distributable reserves and is a non-cash item (with the exception of the associated

National Insurance element). Therefore, neither the Company’s ability to distribute nor pay dividends are impacted (with the exception of the

associated National Insurance element). The financial statements disclose earnings on a statutory, EPRA and Adjusted Diluted EPRA basis

and will provide a full reconciliation of the differences in the financial year in which any LTIP awards may vest. A reconciliation of statutory basic

Earnings per Share to Adjusted Diluted EPRA Earnings per Share can be found in note 11.

• EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”). EPRA NTA is considered to be the most relevant measure for the Group’s

business which provides sustainable long term progressive returns and is now the primary measure of net assets. The basis of calculation,

including a reconciliation to reported net assets, is set out in note 15.

• Like-for-like figures are presented to aid in the comparability of the underlying business as they exclude the impact on results of purchased,

sold, opened or closed stores.

• Constant exchange rate (“CER”) figures are provided in order to present results on a more comparable basis, removing foreign exchange movements.

3. Revenue

Analysis of the Group’s operating revenue can be found below:

2022

£’m

2021

£’m

Self storage income 178.0 154.3

Insurance income 23.9 22.3

Other non-storage income 10.6 10.2

Total revenue 212.5 186.8

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STRATEGIC REPORT

4. Segmental analysis

The segmental information presented has been prepared in accordance with the requirements of IFRS 8. The Group’s revenue, profit before

income tax and net assets are attributable to one activity: the provision of self storage accommodation and related services. This is based on

the Group’s management and internal reporting structure.

Safestore is organised and managed in four operating segments, based on geographical areas, being the United Kingdom, Paris in France,

Spain, and the Netherlands and Belgium in Benelux.

The chief operating decision maker, being the Executive Directors, identified in accordance with the requirements of IFRS 8, assesses the

performance of the operating segments on the basis of Underlying EBITDA, which is defined as operating profit before exceptional items,

share-based payments, corporate transaction costs, gain/loss on investment properties, depreciation and variable lease payments, and the

share of associate’s depreciation, interest and tax.

The operating profits and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Year ended 31 October 2022

£’m

Paris

£’m

Spain

£’m

Benelux

£’m

Group

£’m

Continuing operations

Revenue 163.0 41.4 3.0 5.1 212.5

Share of loss in associates (0.3) — — — (0.3)

Underlying EBITDA 103.5 28.0 1.5 2.1 135.1

Exceptional items — (0.1) — — (0.1)

Share-based payments (10.2) (1.0) — — (11.2)

Variable lease payments and depreciation (1.2) (0.1) — — (1.3)

Share of associate’s depreciation, interest and tax (0.4) — — — (0.4)

Operating profit before gain on investment properties

andother exceptional gains 91.7 26.8 1.5 2.1 122.1

Gain on investment properties 295.7 78.5 1.3 6.1 381.6

Other exceptional gains 5.7 5.1 — — 10.8

Operating profit 393.1 110.4 2.8 8.2 514.5

Net finance (expense)/income (14.4) (1.6) (0.1) 0.4 (15.7)

Profit before tax 378.7 108.8 2.7 8.6 498.8

Total assets 2,024.8 581.7 28.2 72.8 2,707.5

Year ended 31 October 2021

£’m

Paris

£’m

Spain

£’m

Group

£’m

Continuing operations

Revenue 144.1 39.9 2.8 186.8

Share of profit in associates — — — —

Underlying EBITDA 89.1 27.2 1.7 118.0

Exceptional items — (1.9) — (1.9)

Share-based payments (16.1) (2.2) — (18.3)

Variable lease payments and depreciation (1.1) (0.3) — (1.4)

Share of associate’s depreciation, interest and tax (0.5) — — (0.5)

Operating profit before gain on investment properties 71.4 22.8 1.7 95.9

Gain on investment properties 260.5 56.0 4.6 321.1

Operating profit 331.9 78.8 6.3 417.0

Net finance expense (10.5) (1.8) (0.1) (12.4)

Profit before tax 321.4 77.0 6.2 404.6

Total assets 1,617.9 474.1 25.3 2,117.3

Inter-segment transactions are entered into under the normal commercial terms and conditions that would also be available to unrelated third

parties. There is no material impact from inter-segment transactions on the Group’s results.

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140

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

5. Exceptional items and other exceptional gains

2022

£’m

2021

£’m

Costs relating to corporate transactions and exceptional property taxation (0.1) (1.9)

Exceptional items (0.1) (1.9)

2022

£’m

2021

£’m

Valuation gain on associate buy-out 5.5 —

Gain on disposals of investment properties 0.2 —

Gain on disposal of land 5.1 —

Other exceptional gains 10.8 —

Exceptional items of £0.1 million were incurred in the year, relating to fees associated with the Group’s corporate restructuring (FY2021: £1.9million

in relation to a provision for potential liabilities in respect of the French commercial tax audit of financial years 2012 to 2020).

On 10 November 2021, the Group sold the Nanterre site to the Joint Venture partner of Nanterre FOCD 92 for a total price of €7.6 million

excluding VAT and including demolition cost reimbursement, where the settlement is done partially in cash of £1.0 million (€1.1 million excluding

tax), and partially in kind through the delivery of the new building at the end of the operation (estimated at €6.5 million). This resulted in a net gain on

disposal of £5.1 million (€5.9 million) included within other exceptional gains.

On 30 March 2022, the Group acquired the remaining 80% equity of Safestore Storage Benelux B.V. from its previous Joint Venture partner for

€53.6 million (£45.3 million) and became a wholly owned subsidiary (note 12). The original 20% equity investment was effectively de-recognised

and re-recognised back at the fair value based on the revised equity value effective at the 30 March 2022 transaction. This resulted in a valuation

gain on the associate buy-out of £5.5 million included within other exceptional gains.

On 16 August 2022, the Group sold its Birmingham Digbeth store to a third party for £6.5 million and incurred a 1% agent fee on the sale price.

The carrying value of this store included within investment properties prior to disposal was £6.2 million, resulting in a gain on disposal of investment

properties of £0.2 million included within other exceptional gains.

6. Operating profit

The following items have been charged/(credited) in arriving at operating profit:

Notes

2022

£’m

2021

£’m

Staff costs 26 38.1 43.8

Inventories: cost of inventories recognised as an expense (included in cost of sales) 2 0.7 1.0

Depreciation on property, plant and equipment 14 1.0 1.0

Gain on investment properties 13 (381.6) (321.1)

Variable lease payments payable under lease liabilities 0.3 0.4

7. Fees paid to auditor

During the year, the Group (including its overseas subsidiaries) obtained the following services from the Company’s auditor at costs detailed below:

2022

£’m

2021

£’m

Audit services

Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated

financial statements 0.2 0.3

Fees payable to the Company’s auditor and its associates for the audit of the Company’s subsidiaries pursuant

tolegislation 0.2 0.1

Total audit fees 0.4 0.4

Fees for other services 0.1 —

Total 0.5 0.4

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STRATEGIC REPORT

8. Finance income and costs

2022

£’m

2021

£’m

Finance income

Other interest and similar income 0.1 —

Interest receivable from loan to associates 0.1 0.1

Financial instruments income 1.3 0.5

Underlying finance income 1.5 0.6

Exceptional finance income 0.5 —

Total finance income 2.0 0.6

Finance costs

Interest payable on bank loans and overdraft (11.9) (9.7)

Amortisation of debt issuance costs on bank loan (0.5) (0.4)

Underlying finance charges (12.4) (10.1)

Interest on lease liabilities (5.0) (5.2)

Fair value (loss)/gain of derivatives (0.3) 2.9

Net exchange losses — (0.6)

Total finance costs (17.7) (13.0)

Net finance costs (15.7) (12.4)

Included within interest payable of £11.9 million (FY2021: £9.7 million) is £nil (FY2021: £0.6 million) of interest relating to derivative financial

instruments that are economically hedging the Group’s borrowings. The total change in fair value of derivatives reported within net finance

costs for the year is a £0.3 million net loss (FY2021: £2.9 million net gain). Included within finance income is £1.3 million, received on settlement

of two€8.0 million average rate forward contracts acquired in March 2020 and settled in April 2022 for £0.7 million and October 2022 for

£0.6million, respectively. The fair value of these two forward contracts held at 31 October 2021 was a £1.3 million asset now disposed and

included as part ofthe net fair value gain of derivatives within finance costs. Further, included within finance income is £0.5 million (FY2021: £nil)

in relation to the swaps held in the subsidiary acquired during the period, Safestore Storage Benelux B.V., and terminated post acquisition in order

to utilise the Group’s existing debt facilities and financial instruments held.

9. Income tax charge

Analysis of tax charge in the year:

Note

2022

£’m

2021

£’m

Current tax:

– current year 6.1 5.5

– prior year — —

6.1 5.5

Deferred tax:

– current year 29.8 17.1

– prior year — —

22 29.8 17.1

Tax charge 35.9 22.6

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142

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

9. Income tax charge continued

Reconciliation of income tax charge

The tax for the period is lower (FY2021: lower) than the standard rate of corporation tax in the UK for the year ended 31 October 2022 of19%

(FY2021: 19%). The differences are explained below:

2022

£’m

2021

£’m

Profit before tax 498.8 404.6

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (FY2021: 19%) 94.8 76.9

Effect of:

– permanent differences — 3.6

– profits from the tax exempt business (71.5) (63.5)

– deferred tax arising on acquisition of overseas subsidiary 4.5 —

– difference from overseas tax rates 8.6 6.4

– potential deferred tax assets not recognised 0.4 —

– utilisation of unrecognised brought forward tax losses (0.9) (0.8)

Tax charge 35.9 22.6

The Group is a UK real estate investment trust (“REIT”). As a result, the Group is exempt from UK corporation tax on the profits and gains from its

qualifying property rental business in the UK, providing it meets certain conditions. Non-qualifying profits and gains of the Group remain subject

tocorporation tax as normal. The Group monitors its compliance with the REIT conditions. There have been no breaches of the conditions to date.

The main rate of corporation tax in the UK is 19%. Accordingly, the Group’s results for this accounting period are taxed at an effective rate of19%

(FY2021: 19%). Following the Finance Bill 2021, the main rate of corporation tax will increase from 19% to 25% from 1 April 2023. There will be no

deferred taxation impact in respect of this change in taxation rates.

Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

10. Dividends per share

The dividend paid in 2022 was £56.9 million (27.00 pence per share) (FY2021: £42.6 million (20.20 pence per share)). A final dividend in

respectofthe year ended 31 October 2022 of 20.40 pence (FY2021: 17.60 pence) per share, amounting to a total final dividend of £42.8 million

(FY2021: £37.0 million), is to be proposed at the AGM on 15 March 2023. The ex-dividend date will be 2 March 2023 and the record date will be

3March 2023 with an intended payment date of 7 April 2023. The final dividend has not been included as a liability at 31 October 2022.

The Property Income Distribution (“PID”) element of the final dividend is 22.75 pence (FY2021: 17.60 pence), making the PID payable for the year

22.75 pence (FY2021: 25.10 pence) per share.

11. Earnings per Share

Basic Earnings per Share (“EPS”) is calculated by dividing the profit attributable to equity holders of the Company by the weighted average

number of ordinary shares in issue during the year excluding ordinary shares held as treasury shares. Diluted EPS is calculated by adjusting the

weighted average number of ordinary shares to assume conversion of all dilutive potential shares. The Company has one category of dilutive

potential ordinary shares: share options. For the share options, a calculation is performed to determine the number of shares that could have

been acquired at fair value (determined as the average annual market price of the Company’s shares) based on the monetary value of the subscription

rights attached to the outstanding share options. The number of shares calculated as above is compared with the number of shares that would

have been issued assuming the exercise of the share options.

Year ended 31 October 2022 Year ended 31 October 2021

Earnings

£’m

million

Pence

per share

Earnings

£’m

million

Pence

per share

Basic 462.9 210.9 219.5 382.0 210.8 181.2

Dilutive securities — 7.0 (7.1) — 5.8 (4.8)

Diluted 462.9 217.9 212.4 382.0 216.6 176.4

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FINANCIAL STATEMENTS

STRATEGIC REPORT

11. Earnings per Share continued

Adjusted Earnings per Share

Explanations related to the adjusted earnings measures adopted by the Group are set out in note 2 under the heading Non-GAAP financial

information/Alternative Performance Measures on page 139. Adjusted EPS represents profit after tax adjusted for the valuation movement

on investment properties, exceptional items, change in fair value of derivatives, exchange gains/losses, unwinding of the discount on the CGS

receivable and the associated tax thereon. The Directors consider that these alternative measures provide useful information on the performance

ofthe Group.

EPRA earnings and Earnings per Share before non-recurring items, movements on revaluations of investment properties and changes in the

fairvalue of derivatives have been disclosed to give a clearer understanding of the Group’s underlying trading performance.

Year ended 31 October 2022 Year ended 31 October 2021

Earnings

£’m

million

Pence

per share

Earnings

£’m

million

Pence

per share

Basic 462.9 210.9 219.5 382.0 210.8 181.2

Adjustments:

Gain on investment properties (381.6) — (180.9) (321.1) — (152.3)

Exceptional items 0.1 — — 1.9 — 0.9

Other exceptional gains (10.8) — (5.1) — — —

Exceptional finance income (0.5) — (0.2) — — —

Net exchange loss — — — 0.6 — 0.3

Change in fair value of derivatives 0.3 — 0.1 (2.9) — (1.4)

Tax on adjustments 29.7 — 14.1 16.2 — 7.7

Adjusted 100.1 210.9 47.5 76.7 210.8 36.4

EPRA adjusted:

Fair value re-measurement of lease liabilities

add-back (8.3) — (3.9) (7.4) — (3.5)

Tax on lease liabilities add-back adjustment 1.0 — 0.5 0.9 — 0.4

Adjusted EPRA basic EPS 92.8 210.9 44.1 70.2 210.8 33.3

Share-based payments charge 11.2 — 5.3 18.3 — 8.7

Dilutive shares — 8.0 (1.9) — 7.5 (1.5)

Adjusted Diluted EPRA EPS

104.0 218.9 47.5 88.5 218.3 40.5

Note

1 Adjusted Diluted EPRA EPS is defined in note 2 under Non-GAAP financial information/Alternative Performance Measures on page 139.

Gain on investment properties includes the fair value re-measurement of lease liabilities add-back of £8.3 million (FY2021: £7.4 million) and the related

tax thereon of £1.0 million (FY2021: £0.9 million). As an industry standard measure, EPRA earnings is presented. EPRA earnings of£92.8million

(FY2021: £70.2 million) and EPRA Earnings per Share of 44.1 pence (FY2021: 33.3 pence) are calculated after further adjusting forthese items.

EPRA adjusted income statement (non-statutory)

2022

£’m

2021

£’m

Movement

Revenue 212.5 186.8 13.8

Underlying operating expenses (excluding depreciation and variable lease payments) (77.5) (69.3) 11.8

Share of associate’s Underlying EBITDA 0.1 0.5 (80.0)

Underlying EBITDA before variable lease payments 135.1 118.0 14.5

Share-based payments charge (11.2) (18.3) (38.8)

Depreciation and variable lease payments (1.3) (1.4) (7.1)

Operating profit before fair value re-measurement lease liabilities add-back 122.6 98.3 24.7

Fair value re-measurement of lease liabilities add-back (8.3) (7.4) 12.2

Operating profit 114.3 90.9 25.7

Net financing costs (15.9) (14.7) 8.2

Share of associate’s finance charges (0.4) (0.5) (20.0)

Profit before income tax 98.0 75.7 29.5

Income tax (5.2) (5.5) (5.5)

Profit for the year (“Adjusted EPRA basic earnings”) 92.8 70.2 32.2

Adjusted EPRA basic EPS 44.1 pence 33.3 pence 32.4

Final dividend per share 20.40 pence 17.60 pence 15.9

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144

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

12. Investment in associates

2022

£’m

2021

£’m

Safestore Storage Benelux B.V. — 6.2

PBC Les Groues SAS 1.8 1.0

1.8 7.2

Safestore Storage Benelux B.V. (formerly CERF Storage JV B.V.)

Until 30 March 2022, the Group had a 20% interest in Safestore Storage Benelux B.V. (“SSB”) (formerly CERF Storage JV B.V.), a company registered

and operating in the Netherlands. SSB was accounted for using the equity method of accounting. SSB invests in carefully selected self storage

opportunities in Europe. The Group earned a fee for providing management services to SSB. This investment as an associate was considered

immaterial relative to the Group’s underlying operations. On 30 March 2022, the Group acquired the remaining 80% equity from its previous Joint

Venture partner for €53.6 million (£45.3 million) and SSB became a wholly owned subsidiary. IFRS 3 requires the consideration price be allocated

across the assets being acquired. On 30 March 2022 when the Group gained control, the equity accounting of SSB ceased. The difference

between the equity accounted carrying value of the investment immediately prior to acquisition and the fair value of the increased investment is

a valuation gain of £5.5 million (note 5).

The aggregate carrying value of the Group’s 20% interest in SSB at 30 March 2022 was £8.7 million (FY2021: £8.9 million), made up of an

investment of £5.9 million (FY2021: £6.2 million), and a loan to the associate including interest accrued of £2.8 million (FY2021: £2.7 million)

(note 30). The Group’s share of losses from continuing operations for the period was £0.3 million (FY2021: £nil). The Group’s share of total

comprehensive income of associates in the year was £0.3 million (FY2021: £nil).

Note

2022

£’m

2022

€’m

Initial 20% investment in SSB

At 31 October 2021 6.2 7.1

Share of loss in associate (0.3) (0.4)

5.9 6.7

Revised fair value of 20% investment in SSB at 30 March 2022

Net assets of SSB (100%) 56.7 67.0

Net assets of SSB (80%) (45.3) (53.6)

11.4 13.4

Difference: valuation gain on acquisition of additional 80% investment in SSB 5 5.5 6.7

The following provides a breakdown of the 80% share of fair value of the assets and liabilities acquired on 30 March 2022. Under IFRS 3 this

transaction, where properties were acquired through the purchase of a corporate vehicle in the year, has been judged to meet the accounting

definition of an asset purchase.

2022

£’m

2022

€’m

Assets

Investment properties net of lease liabilities 100.5 118.7

Add-back of lease liabilities 0.5 0.6

Inventories 0.1 0.1

Trade and other receivables 0.5 0.6

Cash and cash equivalents 4.4 5.2

106.0 125.2

Liabilities

Trade and other payables (2.6) (3.0)

Lease liabilities (0.5) (0.6)

Amounts owed to Joint Venture partner (11.4) (13.4)

Bank borrowings (46.2) (54.6)

(60.7) (71.6)

Net assets (80%) 45.3 53.6

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12. Investment in associates continued

Safestore Storage Benelux B.V. (formerly CERF Storage JV B.V.) continued

The cash outflow classified as investing activities (excluding acquisition costs) from this buy-out is summarised as follows:

2022

£’m

2022

€’m

Net assets acquired (remaining 80%) 45.3 53.6

Non-Safestore debt settled on acquisition 69.2 81.7

Less: cash and cash equivalents acquired (5.5) (6.5)

Acquisition of subsidiary, net of cash acquired 109.0 128.8

The Group incurred acquisition related costs of £5.1 million on legal fees and real estate transfer tax (“RETT”). These costs have been capitalised

in accordance with IFRS 3, asset purchase.

PBC Les Groues SAS

During the period the Group acquired a 24.9% interest in PBC Les Groues SAS (“PBC”), a company registered and operating in France. PBC is

accounted for using the equity method of accounting. PBC is the parent company of Nanterre FOCD 92, a company also registered and operating

in France, which will be developing a new store as part of a wider development programme located in Paris. The development project will be

managed by its Joint Venture partners; therefore, the Group will have no operational liability during this phase. During the period the Group has

invested £0.8 million (€0.9 million) into this investment. The investment is considered immaterial relative to the Group’s underlying operations.

The aggregate carrying value of the Group’s interest in PBC was £1.8 million (FY2021: £1.0 million), made up of an investment of £1.8 million

(FY2021: £1.0 million) (note 30). The Group’s share of profits from continuing operations for the period was £nil (FY2021: £nil). The Group’s share

of total comprehensive income of associates for the year was £nil (FY2021: £nil). The Group’s share of total comprehensive income of associates

in the year was £nil (FY2021: £nil).

13. Investment properties

External valuation

of investment

properties, net of

lease liabilities

£’m

Add-back of

lease liabilities

£’m

Investment

property

under

construction

£’m

Total

investment

properties

£’m

At 1 November 2021 1,881.8 82.1 67.4 2,031.3

Acquisition of subsidiaries 128.2 0.6 — 128.8

Additions 31.8 20.2 47.4 99.4

Disposals (6.2) — — (6.2)

Reclassifications 16.5 — (16.5) —

Revaluations 394.1 — (4.2) 389.9

Fair value re-measurement of lease liabilities add-back — (8.3) — (8.3)

Exchange movements 11.6 0.5 0.4 12.5

At 31 October 2022 2,457.8 95.1 94.5 2,647.4

On 7 December 2021, the Group completed the acquisition of Your Room Self Storage Limited, which included a freehold store located in

Christchurch, Dorset. Under IFRS 3 this transaction was treated as an asset acquisition, with a fair value of the investment property of £2.6 million.

On 30 March 2022, the Group completed the buy-out of Safestore Storage Benelux B.V., which included a portfolio made up of twelve freehold

properties, two ground leases and one leasehold property. Nine properties are located in the Netherlands and six properties are located in

Belgium. Under IFRS 3 this transaction was treated as an asset acquisition, where the fair value of a 100% share of the investment properties

amounted to £125.6million.

On 16 August 2022, the Group sold its Birmingham Digbeth store to a third party for £6.5 million. The carrying value of this store included within

investment properties prior to disposal was £6.2 million, resulting in a gain on disposal of investment properties of £0.2 million included within

other exceptional gains (note 5).

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

13. Investment properties continued

External valuation

of investment

properties, net of

lease liabilities

£’m

Add-back of

lease liabilities

£’m

Investment

property

under

construction

£’m

Total

investment

properties

£’m

At 1 November 2020 1,557.5 76.9 14.0 1,648.4

Additions 19.5 14.1 57.9 91.5

Reclassifications 3.7 — (3.7) —

Revaluations 329.0 — (0.5) 328.5

Fair value re-measurement of lease liabilities add-back — (7.4) — (7.4)

Exchange movements (27.9) (1.5) (0.3) (29.7)

At 31 October 2021 1,881.8 82.1 67.4 2,031.3

The gain on investment properties comprises:

2022

£’m

2021

£’m

Revaluations of investment property and investment property under construction 389.9 328.5

Fair value re-measurement of lease liabilities add-back (8.3) (7.4)

381.6 321.1

Cost

£’m

Revaluation

on cost

£’m

Valuation

£’m

Freehold stores

At 1 November 2021 684.8 846.8 1,531.6

Movement in year 207.9 295.6 503.5

At 31 October 2022 892.7 1,142.4 2,035.1

Leasehold stores

At 1 November 2021 127.6 222.6 350.2

Movement in year 6.1 66.4 72.5

At 31 October 2022 133.7 289.0 422.7

All stores

At 1 November 2021 812.4 1,069.4 1,881.8

Movement in year 214.0 362.0 576.0

At 31 October 2022 1,026.4 1,431.4 2,457.8

The valuation of £2,457.8 million (FY2021: £1,881.8 million) excludes £0.6 million in respect of owner-occupied property, which is included within

property, plant and equipment. Rental income earned from investment properties for the year ended 31 October 2022 was £179.3 million

(FY2021:£155.5 million).

The Group has classified the investment property and investment property under construction, held at fair value, within Level 3 of the fair value

hierarchy. There were no transfers to or from Level 3 during the year.

As described in note 2 summary of significant accounting policies, where the valuation obtained for investment property is net of all payments

tobe made, it is necessary to add back the lease liability to arrive at the carrying amount of investment property at fair value. The lease liability

of£95.4 million (FY2021: £82.3 million) per note 21 differs to the £95.1 million (FY2021: £82.1 million) disclosed above as a result of accounting

forthe French Head Office lease under IFRS 16. This lease is included as part of property, plant and equipment, and has a net book value of

£0.3million as at 31 October 2022 (FY2021: £0.2 million) (note 14).

All direct operating expenses arising from investment property that generated rental income as outlined in note 3 were £75.3 million

(FY2021:£68.5 million).

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13. Investment properties continued

The freehold and leasehold investment properties have been valued as at 31 October 2022 by external valuer, Cushman & Wakefield Debenham

Tie Leung Limited (“C&W”). The valuation has been carried out in accordance with the current edition of the RICS Valuation – Global Standards,

which incorporates the International Valuation Standards and the RICS Valuation UK National Supplement (the “RICS Red Book”). The valuation

of each of the investment properties has been prepared on the basis of fair value as a fully equipped operational entity, having regard to trading

potential. Two non-trading properties were valued on the basis of fair value. The valuation has been provided for accounts purposes and, as

such, is a Regulated Purpose Valuation as defined in the RICS Red Book. In compliance with the disclosure requirements

of the RICS Red Book, C&W has confirmed that:

• the member of the RICS who has been the signatory to the valuations provided to the Group for the same purposes as this valuation has

done so since April 2020. The valuations have been reviewed by an internal investment committee comprising two valuation partners and

an investment partner, all unconnected with the assignment;

• C&W has been carrying out regular valuations for the same purpose as this valuation on behalf of the Group since October 2006;

• C&W does not provide other significant professional or agency services to the Group;

• in relation to the preceding financial year of C&W, the proportion of total fees payable by the Group to the total fee income of the firm is less

than 5%; and

• the fee payable to C&W is a fixed amount per property and is not contingent on the appraised value.

Portfolio premium

C&W’s valuation report confirms that the properties have been valued individually but that if the portfolio was to be sold as a single lot or in

selected groups of properties, the total value could be different. C&W states that in current market conditions it is of the view that there could

be a material portfolio premium.

Valuation method and assumptions

The valuation of the operational self storage facilities has been prepared having regard to trading potential. Cash flow projections have been

prepared for all of the properties reflecting estimated absorption, revenue growth and expense inflation. A discounted cash flow method of

valuation based on these cash flow projections has been used by C&W to arrive at its opinion of fair value for these properties.

C&W has adopted different approaches for the valuation of the leasehold and freehold assets as follows:

Freehold and long leasehold (UK, Paris, Spain, the Netherlands, and Belgium)

The valuation is based on a discounted cash flow of the net operating income over a ten-year period and a notional sale of the asset at the end

of the tenth year.

Assumptions:

• Net operating income is based on projected revenue received less projected operating costs together with a central administration charge of

6% of the estimated annual revenue, subject to a cap and collar. The initial net operating income is calculated by estimating the net operating

income in the first twelve months following the valuation date.

• The net operating income in future years is calculated assuming either straight-line absorption from day one actual occupancy or variable

absorption over years one to four of the cash flow period, to an estimated stabilised/mature occupancy level. In the valuation the assumed

stabilised occupancy level for the trading stores (both freeholds and all leaseholds) open at 31 October 2022 averages 89.18% (FY2021:

89.10%). The projected revenues and costs have been adjusted for estimated cost inflation and revenue growth. The average time assumed for

stores to trade at their maturity levels is 18.51 months (FY2021: 18.27 months).

• The capitalisation rates applied to existing and future net cash flows have been estimated by reference to underlying yields for industrial and

retail warehouse property, yields for other trading property types such as purpose-built student housing and hotels, bank base rates, ten-year

money rates, inflation and the available evidence of transactions in the sector. The valuation included in the accounts assumes rental growth

in future periods. If an assumption of no rental growth is applied to the external valuation, the net initial yield pre-administration expenses for

mature stores (i.e. excluding those stores categorised as “developing”) is 6.30% (FY2021: 6.73%), rising to a stabilised net yield pre-

administration expenses of 6.74% (FY2021: 6.90%).

• The weighted average freehold exit yield on UK freeholds is 5.83% (FY2021: 6.07%), on France freeholds is 5.49% (FY2021: 5.88%), on Spain

freeholds is 5.50% (FY2021: 5.38%), on the Netherlands freeholds is 5.08% and on Belgium freeholds is 5.02%. The weighted average

freehold exit yield for all freeholds adopted is 5.66% (FY2021: 6.03%).

• The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that reflects the risk

associated with each asset. The weighted average annual discount rate adopted (for both freeholds and leaseholds) in the UK portfolio is

8.40% (FY2021: 8.62%), in the France portfolio is 8.78% (FY2021: 8.98%), in the Spain portfolio is 8.00% (FY2021: 7.87%), in the Netherlands

portfolio is 7.33% and in the Belgium portfolio is 7.62%. The weighted average annual discount rate adopted (for both freeholds and all

leaseholds) is 8.49% (FY2021: 8.72%).

• Purchaser’s costs in the range of approximately 3.3% to 6.8% for the UK, 7.5% for Paris, 2.5% for Spain, 7.5% for the Netherlands and 7.5%

forBelgium have been assumed initially, reflecting the progressive SDLT rates brought into force in March 2016 in the UK, and sales plus

purchaser’s costs totalling approximately 5.3% to 8.8% (UK), 9.5% (Paris), 4.5% (Spain), 7.5% (the Netherlands) and 7.5% (Belgium) are

assumed on the notional sales in the tenth year in relation to freehold and long leasehold stores.

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

13. Investment properties continued

Valuation method and assumptions continued

Short leaseholds (UK)

The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is assumed but the discounted

cashflow is extended to the expiry of the lease. The average unexpired term of the Group’s UK short term leasehold properties is 13.0 years

(FY2021: 12.2 years). The average unexpired term excludes the commercial leases in France and Spain.

Short leaseholds (Paris)

In relation to the commercial leases in Paris, C&W has valued the cash flow projections in perpetuity due to the security of tenure arrangements

in that market and the potential compensation arrangements in the event of the landlord wishing to take possession. The valuation treatment

istherefore the same as for the freehold properties. The capitalisation rates on these stores reflect the risk of the landlord terminating the

leasearrangements.

Short leaseholds (Spain)

In relation to the two commercial leases in Spain, C&W has valued the cash flow projections in perpetuity due to the nature of the lease

agreements which allows the tenant to renew the lease year-on-year into perpetuity. The valuation treatment is therefore the same as for the

freehold properties. The capitalisation rates on these stores reflect the risk of the rolling lease arrangements.

In relation to one other short leasehold in Spain, the lease allows for a five-year automatic extension beyond the initial lease expiry date subject

toneither party serving notice stating it does not wish to do so. This allows the landlord to terminate the lease at the original expiry date if it so

wishes. The same methodology has been used as for freeholds, except that no sale of the asset in the tenth year is assumed but the discounted

cash flow is extended to the expiry of the lease.

Short leaseholds (the Netherlands)

The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is assumed but the discounted cash

flow is extended to the expiry of the lease.

Short leaseholds (Belgium)

There are no short term leaseholds in Belgium.

Investment properties under construction

C&W has valued the stores in development adopting the same methodology as set out above but on the basis of the cash flow projection

expected for the store at opening and allowing for the outstanding costs to take each store from its current state to completion and full fit out,

except several recently acquired stores which have been valued at acquisition costs. C&W has allowed for carry costs and construction

contingency, as appropriate.

Immature stores: value uncertainty

C&W has assessed the value of each property individually. However, three of the stores in the portfolio are relatively immature and have low initial

cash flow. C&W has endeavoured to reflect the nature of the cash flow profile for these properties in its valuation, and the higher associated risks

relating to the as yet unproven future cash flow, by adjustment to the capitalisation rates and discount rates adopted. However, immature low

cash flow stores of this nature are rarely, if ever, traded individually in the market, unless as part of a distressed sale or similar situation, although

there is more evidence of such stores being traded as part of a group or portfolio transaction.

C&W considers there to be market uncertainty in the self storage sector due to the lack of comparable market transactions and information.

Thedegree of uncertainty relating to the three immature stores is greater than in relation to the balance of the properties due to there being even

less market evidence than might be available for more mature properties and portfolios.

C&W states that, in practice, if an actual sale of the properties was to be contemplated then any immature low cash flow stores would normally

be presented to the market for sale lotted or grouped with other more mature assets owned by the same entity, in order to alleviate the issue of

negative or low short term cash flow. This approach would enhance the marketability of the group of assets and assist in achieving the best price

available in the market by diluting the cash flow risk.

C&W has not adjusted its opinion of fair value to reflect such a grouping of the immature assets with other properties in the portfolio and all stores

have been valued individually. However, C&W highlights the matter to alert the Group to the manner in which the properties might be grouped or

lotted in order to maximise their attractiveness to the marketplace.

C&W considers this approach to be a valuation assumption but not a special assumption, the latter being an assumption that assumes facts that

differ from the actual facts existing at the valuation date and which, if not adopted, could produce a material difference in value.

Valuation assumption for purchaser’s costs

The Group’s investment property assets have been valued for the purposes of the financial statements after adjusting for notional purchaser’s

costs in the range of approximately 3.3% to 6.8% (UK), 7.5% (Paris), 2.5% (Spain), 7.5% (the Netherlands) and 7.5% (Belgium), as if they were sold

directly as property assets. The valuation is an asset valuation which is strongly linked to the operating performance of the business. They would

have to be sold with the benefit of operational contracts, employment contracts and customer contracts, which would be difficult to achieve

except in a corporate structure.

This approach follows the logic of the valuation methodology in that the valuation is based on a capitalisation of the net operating income after

allowing a deduction for operational cost and an allowance for central administration costs. A sale in a corporate structure would result in a

reduction in the assumed stamp duty land tax but an increase in other transaction costs reflecting additional due diligence resulting in a reduced

notional purchaser’s cost of c.2.75% of gross value. All the significant sized transactions that have been concluded in the UK in recent years were

completed in a corporate structure. The Group therefore instructed C&W to prepare additional valuation advice on the basis of purchaser’s cost

of 2.75% of gross value which is used for internal management purposes.

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STRATEGIC REPORT

13. Investment properties continued

Valuation method and assumptions continued

Sensitivity of the valuation to assumptions

As noted in “Key sources of estimation uncertainty” on page 138, self storage valuations are complex, derived from data which is not widely

publicly available and involves a degree of judgement. All other factors being equal, higher net operating income would lead to an increase

inthevaluation of a store and an increase in the capitalisation rate or discount rate would result in a lower valuation, and vice versa. Higher

assumptions for stabilised occupancy, absorption rate, rental rate and other revenue, and a lower assumption for operating costs, would

resultinan increase in projected net operating income, and thus an increase in valuation.

There are inter-relationships between the valuation inputs, and they are primarily determined by market conditions. The effect of an increase in

more than one input could be to magnify the impact on the valuation. However, the impact on the valuation could be offset by the inter-relationship

of two inputs moving in opposite directions, e.g. an increase in rent may be offset by a decrease in occupancy, resulting in no net impact on the

valuation.

As noted in “Key sources of estimation uncertainty”, self storage valuations are complex, derived from data which is not widely available and

involve a degree of judgement. For these reasons we have classified the valuation of our property portfolio as Level 3 as defined by IFRS 13.

Inputs to the valuation, some of which are “unobservable” as defined by IFRS 13, include capitalisation yields, stable occupancy rates, and time

to stabilised occupancy. The existence of an increase of more than one unobservable input would augment the impact on the valuation. The impact

on the valuation would be mitigated by the inter-relationship between unobservable inputs moving in opposite directions. For example, an increase

in stable occupancy may be offset by an increase in yield, resulting in no net impact on the valuation. A sensitivity analysis showing the impact

on valuations of changes in capitalisation rates and stable occupancy is shown below:

Impact of change in

capitalisation rates

£’m

Impact of a change in stabilised

occupancy assumption

£’m

Impact of a delay

in stabilised

occupancy

assumption

£’m

25 bps decrease 25 bps increase 1% increase 1% decrease 24-month delay

Reported Group 107.0 (90.2) 40.0 (32.0) (10.6)

14. Property, plant and equipment

Owner-

occupied

buildings

£’m

Motor

vehicles

£’m

Fixtures

and fittings

£’m

IFRS 16

leases

£’m

Total

£’m

Cost

At 1 November 2021 0.8 1.0 7.0 0.4 9.2

Additions 0.2 0.2 0.8 0.2 1.4

Disposals — (0.3) — — (0.3)

At 31 October 2022 1.0 0.9 7.8 0.6 10.3

Accumulated depreciation

At 1 November 2021 0.2 0.5 5.1 0.2 6.0

Charge for the year — 0.1 0.8 0.1 1.0

Disposals — (0.1) — — (0.1)

At 31 October 2022 0.2 0.5 5.9 0.3 6.9

Net book value

At 31 October 2022 0.8 0.4 1.9 0.3 3.4

At 31 October 2021 0.6 0.5 1.9 0.2 3.2

As a result of adopting IFRS 16, the Group initially recognised a right-of-use asset of £0.4 million in property, plant and equipment and a lease

liability of £0.4 million at the transition date of 1 November 2019. Due to a lease extension for this asset, this has subsequently been re-measured

by an additional £0.2 million. The additional depreciation charge for the right-of-use asset recognised during the year was £0.1 million. The reduction

in the lease liability in respect of principal repayments and interest was £0.1 million.

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

14. Property, plant and equipment continued

Owner-

occupied

buildings

£’m

Motor

vehicles

£’m

Fixtures

and fittings

£’m

IFRS 16

leases

£’m

Total

£’m

Cost

At 1 November 2020 0.8 0.9 6.2 0.4 8.3

Additions — 0.2 0.8 — 1.0

Disposals — (0.1) — — (0.1)

At 31 October 2021 0.8 1.0 7.0 0.4 9.2

Accumulated depreciation

At 1 November 2020 0.2 0.4 4.4 0.1 5.1

Charge for the year — 0.2 0.7 0.1 1.0

Disposals — (0.1) — — (0.1)

At 31 October 2021 0.2 0.5 5.1 0.2 6.0

Net book value

At 31 October 2021 0.6 0.5 1.9 0.2 3.2

At 31 October 2020 0.6 0.5 1.8 0.3 3.2

15. Net assets per share

EPRA’s Best Practices Recommendations guidelines for Net Asset Value (“NAV”) metrics are EPRA Net Tangible Assets (“NTA”), EPRA Net

Reinstatement Value (“NRV”) and EPRA Net Disposal Value (“NDV”).

EPRA NTA is considered to be the most relevant measure for the Group’s business which provides sustainable long term progressive returns

andis now the primary measure of net assets, replacing the previously reported EPRA NAV metric. EPRA NTA assumes that entities buy and

sellassets, thereby crystallising certain levels of unavoidable deferred tax. Due to the Group’s REIT status, deferred tax is only provided at each

balance sheet date on properties outside the REIT regime. As a result, deferred taxes are excluded from EPRA NTA for properties within the REIT

regime. For properties outside of the REIT regime, deferred tax is included to the extent that it is expected to crystallise, based on the Group’s

track record and tax structuring.

There are no reconciling items between EPRA NTA and the previously reported EPRA NAV metric. EPRA NTA is shown in the table below:

2022 2021

£’m

Diluted pence

per share £’m

Diluted pence

per share

Balance sheet net assets 1,793.4 820 1,374.9 635

Adjustments to exclude:

Fair value of derivative financial instruments (net of deferred tax) (1.7) (2.0)

Deferred tax liabilities on the revaluation of investment properties 129.0 96.9

EPRA NTA 1,920.7 879 1,469.8 679

Basic net assets per share 848 652

EPRA basic NTA per share 908 697

The basic and diluted net assets per share have been calculated based on the following number of shares:

2022

Number

2021

Number

Shares in issue

At year end 211,927,497 210,823,703

Adjustment for Employee Benefit Trust (treasury) shares (359,795) (41,259)

IFRS/EPRA number of shares (basic) 211,567,702 210,782,444

Dilutive effect of Save As You Earn shares 87,562 109,100

Dilutive effect of Long Term Incentive Plan shares 6,956,633 5,706,061

IFRS/EPRA number of shares (diluted) 218,611,897 216,597,605

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STRATEGIC REPORT

15. Net assets per share continued

Basic net assets per share is shareholders’ funds divided by the number of shares at the year end. Diluted net assets per share is shareholders’

funds divided by the number of shares at the year end, adjusted for dilutive share options of 7,044,195 shares (FY2021: 5,815,161 shares). EPRA

diluted net assets per share excludes deferred tax liabilities arising on the revaluation of investment properties. The EPRA NAV, which further

excludes fair value adjustments for debt and related derivatives net of deferred tax, was £1,920.7 million (FY2021: £1,469.8 million), giving EPRA

NTA per share of 879 pence (FY2021: 679 pence). The Directors consider that these alternative measures provide useful information on the

performance of theGroup.

EPRA adjusted balance sheet (non-statutory)

2022

£’m

2021

£’m

Assets

Non-current assets 2,653.4 2,042.5

Current assets 52.4 72.6

Total assets 2,705.8 2,115.1

Liabilities

Current liabilities (178.4) (88.4)

Non-current liabilities (606.7) (557.0)

Total liabilities (785.1) (645.4)

EPRA adjusted Net Asset Value 1,920.7 1,469.7

EPRA adjusted basic net assets per share 908 pence 697 pence

16. Trade and other receivables

2022

£’m

2021

£’m

Current

Trade receivables 20.6 17.8

Less: credit loss allowance (5.5) (4.3)

Trade receivables – net 15.1 13.5

Other receivables 8.9 7.4

Amounts due from associates (note 30) — 2.7

Prepayments 7.2 5.3

31.2 28.9

The creation and release of credit loss allowances have been included in cost of sales in the income statement.

The Group always measures the loss allowance for the trade receivables at an amount equal to lifetime expected credit loss. The expected credit

losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the

debtor’s current financial position, adjusted for factors that are specific to the debtor and an analysis of the debtors, general economic conditions

of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting

date. The Group provides in full against all receivables due over six months past due because historical experience has indicated that these

receivables are generally not recoverable.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The Group writes off a trade receivable when there is information indicating that the debtors are in severe financial difficulty and there is no

realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings.

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152

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

16. Trade and other receivables continued

The following table details the risk profile of trade receivables based on the Group’s provision matrix:

UK Not past due <28 days 29–60 days >60 days Total

Expected credit loss rate (%) — 7.1% 25.0% 57.1% 10.1%

Estimated total gross carrying amount at default (£’m) 7.5 2.8 1.2 1.4 12.9

Lifetime ECL (£’m) — (0.2) (0.3) (0.8) (1.3)

Net trade receivables as at 31 October 2022 7.5 2.6 0.9 0.6 11.6

France Not past due <28 days 29–60 days >60 days Total

Expected credit loss rate (%) — 14.3% 20.0% 85.1% 57.5%

Estimated total gross carrying amount at default (£’m) 1.4 0.7 0.5 4.7 7.3

Lifetime ECL (£’m) — (0.1) (0.1) (4.0) (4.2)

Net trade receivables as at 31 October 2022 1.4 0.6 0.4 0.7 3.1

UK Not past due <28 days 29–60 days >60 days Total

Expected credit loss rate (%) — 4.0% 16.7% 100.0% 8.5%

Estimated total gross carrying amount at default (£’m) 7.4 2.5 1.2 0.7 11.8

Lifetime ECL (£’m) — (0.1) (0.2) (0.7) (1.0)

Net trade receivables as at 31 October 2021 7.4 2.4 1.0 — 10.8

France Not past due <28 days 29–60 days >60 days Total

Expected credit loss rate (%) — — 50.0% 94.1% 55.0%

Estimated total gross carrying amount at default (£’m) 2.0 0.4 0.2 3.4 6.0

Lifetime ECL (£’m) — — (0.1) (3.2) (3.3)

Net trade receivables as at 31 October 2021 2.0 0.4 0.1 0.2 2.7

Outstanding trade receivables in Spain, the Netherlands, and Belgium totalled £0.4 million (FY2021: £nil); therefore, the risk profile for this

geography has beenexcluded.

The difference between expected credit loss rates in the UK and France is largely due to the differing processes for collecting overdue debt,

withlegal proceedings in France typically taking significantly longer than in the UK.

The above balances are short term (including other receivables) and therefore the difference between the book value and the fair value is not

significant. Consequently, these have not been discounted.

Movement in the credit loss allowance:

2022

£’m

2021

£’m

Balance at the beginning of the year 4.3 3.8

Acquisition of subsidiaries 0.1 —

Amounts provided in the year 2.5 1.6

Amounts written off as uncollectable (1.4) (1.1)

Balance at the end of the year 5.5 4.3

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OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

16. Trade and other receivables continued

The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:

2022

£’m

2021

£’m

Sterling 19.0 16.3

Euros 12.2 12.6

31.2 28.9

Amounts due from associates of £nil (FY2021: £2.7 million) relate to the Joint Venture arrangement (note 12), made up of a loan and accrued

interest to the associate of £nil (FY2021: £2.7 million). These amounts are considered to be fully recoverable and have not been impaired (FY2021: £nil).

17. Cash and cash equivalents

2022

£’m

2021

£’m

Cash at bank and in hand 20.9 43.2

The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:

2022

£’m

2021

£’m

Sterling 6.4 22.7

Euros 14.5 20.5

20.9 43.2

18. Trade and other payables

2022

£’m

2021

£’m

Current

Trade payables 8.0 22.7

Other taxes and social security payable 6.2 5.4

Other payables 4.9 6.5

Accruals 24.8 23.6

Deferred income 18.8 17.6

62.7 75.8

As at 31 October 2021, included within trade and other payables was £15.4 million in relation to the acquisition of a freehold development site in

OldKent Road, London.

The carrying amounts of the Group’s trade and other payables are denominated in the following currencies:

2022

£’m

2021

£’m

Sterling 47.4 61.6

Euros 15.3 14.2

62.7 75.8

19. Financial liabilities – bank borrowings and secured notes

Non-current

2022

£’m

2021

£’m

Bank loans and secured notes

Secured 625.1 486.5

Debt issue costs (1.3) (1.8)

623.8 484.7

The Group’s borrowings consist of bank facilities of £250 million and €70 million maturing in June 2023. Further in April 2022, the Group extended

its borrowing facilities, with the issuance of a €105 million US Private Shelf Placement Note from a group of existing investors. The Group now

has US Private Placement Notes of €358 million (FY2021: €253 million) which have maturities extending to 2024, 2026, 2027, 2028, 2029 and

2033 and £215.5 million (FY2021: £215.5 million) which have maturities extending to 2026, 2028, 2029 and 2031. The blended cost of interest

on the overall debt at 31 October 2022 was 2.41% per annum. Since the year end the Group has successfully refinanced its bank facilities

borrowings (note 32).

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154

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

19. Financial liabilities – bank borrowings and secured notes continued

The bank facilities attract a margin over SONIA/EURIBOR. The margin ratchets between 1.25% and 2.50%, by reference to the Group’s

performance against its interest cover covenant. Approximately 54% of the drawn bank facilities have been hedged at an effective rate of

0.6885% (SONIA).

The Company has in issue €50.9 million (FY2021: €50.9 million) 1.59% Series A Senior Secured Notes due 2024, €70.0 million (FY2021:

€70.0million) 1.26% Series A Secured Notes due 2026, £35.0 million (FY2021: £35.0 million) 2.59% Series B Senior Secured Notes due 2026,

€74.1 million (FY2021: €74.1 million) 2.00% Series B Senior Secured Notes due 2027, £20.0 million (FY2021: £20.0 million) 1.96% Series A

Secured Notes due 2028, €29.0 million (FY2021: €29.0 million) 0.93% Series B Secured Notes due 2028, £50.5 million (FY2021: £50.5 million)

2.92% Series C Senior Secured Notes due 2029, £30.0 million (FY2021: £30.0 million) 2.69% Series C Senior Secured Notes due 2029,

€105.0million (FY2021: €nil) 2.45% Private Shelf Senior Secured Notes due 2029, £80.0 million (FY2021: £80.0 million) 2.39% Series C Secured

Notes due 2031 and €29.0 million (FY2021: €29.0 million) 1.42% Series D Secured Notes due 2033. The €358.0 million of Euro denominated

borrowings provides a natural hedge against the Group’s investment in the France, Spain, Netherlands and Belgium businesses, so the Group

has applied net investment hedge accounting and the retranslation of these borrowings is recognised directly in the translation reserve.

The bank loans and overdrafts are secured by a fixed charge over the Group’s investment property portfolio. As part of the Group’s interest rate

management strategy, the Group has entered into several interest rate swap contracts, details of which are shown in note 20.

Bank loans and secured notes are stated before unamortised issue costs of £1.3 million (FY2021: £1.8 million).

Bank loans and secured notes are repayable as follows:

Group

2022

£’m

2021

£’m

Within one year 101.8 —

Between one and two years 43.8 57.3

Between two and five years 158.9 137.1

After more than five years 320.6 292.1

Bank loans and secured notes 625.1 486.5

Unamortised debt issue costs (1.3) (1.8)

623.8 484.7

The effective interest rates at the balance sheet date were as follows:

2022 2021

Bank loans (UK term loan) Quarterly or monthly SONIA plus 1.25% Quarterly or monthly SONIA plus 1.25%

Bank loans (Euro term loan) Quarterly EURIBOR plus 1.25% Quarterly EURIBOR plus 1.25%

Private Placement Notes (Euros) 1.80% Weighted average rate of 1.52%

Private Placement Notes (Sterling) 2.55% Weighted average rate of 2.55%

Borrowing facilities

The Group has the following undrawn committed borrowing facilities available at 31 October in respect of which all conditions precedent had

been met at that date:

Floating rate

2022

£’m

2021

£’m

Expiring within one year 208.4 —

Expiring beyond one year — 251.8

208.4 251.8

As described above the Group’s bank facilities mature in June 2023.

The carrying amounts of the Group’s borrowings are denominated in the following currencies:

2022

£’m

2021

£’m

Sterling 291.5 247.5

Euros 333.6 239.0

625.1 486.5

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155

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

20. Financial instruments

Financial risk management

Financial risk management is an integral part of the way the Group is managed. In the course of its business, the Group is exposed primarily

toforeign exchange risk, interest rate risk, liquidity risk, and credit risk. The overall aim of the Group’s financial risk management policies is to

minimise potential adverse effects on financial performance and Net Asset Values (“NAV”). The Group manages the financial risks within policies

and operating parameters approved by the Board of Directors and does not enter into speculative transactions. Treasury activities are managed

centrally under a framework of policies and procedures approved and monitored by the Board. These objectives are to protect the assets of the

Group and to identify and then manage financial risk. In applying these policies, the Group will utilise derivative instruments, but only for risk

management purposes.

The principal financial risks facing the Group are described below.

Interest rate risk

The Group finances its operations through a mixture of retained profits, issued share capital, bank borrowings, and secured notes. The Group

borrows in Sterling and Euros at floating rates and, where necessary, uses interest rate swaps to convert these to fixed rates to generate the

preferred interest rate profile and to manage its exposure to interest rate fluctuations. A 1ppt change in interest rates would have a £0.5 million

(FY2021: £nil) impact on net interest. This sensitivity impact has been prepared by determining average floating interest rates and flexing these

against average floating rate deposits and borrowings by major currency area over the course of the year.

Liquidity risk

The Group’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations without the need to carry significant

net debt over the medium term. The Group’s principal borrowing facilities are provided by a group of core relationship banks in the form of term

loans and overdrafts, revolving credit facilities and secured notes. The quantum of committed borrowing facilities available to the Group is reviewed

regularly and is designed to exceed forecast peak gross debt levels. Further details of the Group’s borrowing facilities, including the repayment

profile of existing borrowings and the amount of undrawn committed borrowing facilities, are set out in note 19.

Credit risk

Credit risk arises on financial instruments such as trade and other receivables and short term bank deposits. Policies and procedures exist to

ensure that customers have an appropriate credit history and account customers are given credit limits that are monitored. Short term bank

deposits are executed only with A-rated or above authorised counterparties based on ratings issued by the major rating agencies. Counterparty

exposure positions are monitored regularly so that credit exposures to any one counterparty are within predetermined limits. Overall, the Group

considers that it is not exposed to a significant amount of credit risk. The amount of trade receivables outstanding at the year end does not

represent the maximum exposure to operational credit risk due to the normal patterns of supply and payment over the course of a year. Based

on management information collected as at month ends the maximum level of net trade receivables at any one point during the year was

£18.3million (FY2021: £14.6 million).

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk in respect of the Euro. Foreign exchange risk arises from future

commercial transactions, recognised assets and liabilities and net investments in foreign operations.

The Group has investments in foreign operations in France, Spain, the Netherlands and Belgium, whose net assets are exposed to foreign currency

translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated

in the relevant foreign currencies.

The Group holds Euro denominated loan notes totalling €358 million (FY2021: €253 million) and as such is exposed to foreign exchange risk on

these notes. The foreign exchange risk relating to the notes provides a natural hedge against the Euro denominated assets of its operations in

France, Spain, the Netherlands and Belgium and were 100% effective. As a result, the Group applies net investment hedging in respect of these

loan notes and the change in fair value during the year of £4.6 million (FY2021: £10.9 million) was recognised in other comprehensive income.

The Group holds average rate forward contracts to mainly hedge against the investment exposure of subsidiaries denominated in Euros and the

future earnings generated by these foreign subsidiaries. The hedge rate of these forwards was 1.0751 and they mature in six tranches bi-annually

commencing from October 2020 as detailed further within this note.

At 31 October 2022, if Sterling had weakened by 10% against the Euro with all other variables held constant, pre-tax profit for the year would

have been £0.1 million lower (FY2021: £1.0 million higher). Equity (translation reserve) would have been £19.0 million higher (FY2021: £13.8 million

higher), arising primarily on translation of Euro denominated net assets held by subsidiary companies with a Euro functional currency less the

Euro denominated loan notes.

The Group is not exposed to significant transaction foreign exchange risk as purchases are invoiced in either Sterling or Euros.

Safestore Holdings plc | Annual report and financial statements 2022

156

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

20. Financial instruments continued

Financial risk management continued

Capital risk

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns

forshareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to

shareholders, issue new shares or sell assets to reduce debt. Being a REIT, the Group is required to distribute as a dividend a minimum of 90%

of its property rental income to shareholders. This is factored into the Group’s capital risk management.

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided bytotal

capital. Net debt is calculated as total borrowings (including “current and non-current borrowings and lease liabilities” as shown in the consolidated

balance sheet) less cash and cash equivalents. Total capital is calculated as equity as shown in the consolidated balance sheet plus net debt.

The gearing ratios at 31 October 2022 and 2021 were as follows:

2022

£’m

2021

£’m

Total borrowings (excluding derivatives) 719.2 567.0

Less: cash and cash equivalents (note 17) (20.9) (43.2)

Net debt 698.3 523.8

Total equity 1,793.4 1,374.9

Total capital 2,491.7 1,898.7

Gearing ratio 28% 28%

The Group considers that a loan-to-value (“LTV”) ratio, defined as gross debt (excluding lease liabilities) as a proportion of the valuation of

investment properties and investment properties under construction (excluding lease liabilities), below 40% represents an appropriate medium

term capital structure objective. The Group’s LTV ratio was 24% at 31 October 2022 (FY2021: 25%).

The Group has complied with all of the covenants on its banking facilities during the year.

Financial instruments

Financial instruments disclosures are set out below:

2022 2021

Asset

£’m

Liability

£’m

Asset

£’m

Liability

£’m

Interest rate swaps 1.2 — 0.3 (0.2)

Foreign currency forwards 0.5 — 1.9 —

The fair value of financial instruments that are not traded in an active market, such as over the counter derivatives, is determined using valuation

techniques. The Group obtains such valuations from counterparties which use a variety of assumptions based on market conditions existing at

each balance sheet date.

The fair values of all financial instruments are equal to their book value, with the exception of bank loans, which are set out below. The fair value

of secured loan notes is determined using a discounted cash flow, while the fair value of bank loans drawn from the Group’s bank facilities

equates to book value. The carrying value less impairment provision of trade receivables, other receivables and the carrying value of trade

payables and other payables approximates to their fair value.

The fair value of bank loans is calculated as:

2022 2021

Book value

£’m

Fair value

£’m

Book value

£’m

Fair value

£’m

Bank loans 623.8 694.1 484.7 543.9

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157

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

20. Financial instruments continued

Financial instruments continued

Fair value hierarchy

IFRS 13 requires fair value measurements to be recognised using a fair value hierarchy that reflects the significance of the inputs used in the

measurements, according to the following levels:

Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – inputs for the asset or liability that are not based on observable market data.

The table below shows the level in the fair value hierarchy into which fair value measurements have been categorised:

Assets per the balance sheet

2022

£’m

2021

£’m

Derivative financial instruments – Level 2 1.7 2.2

Amounts due from associates – Level 2 — 2.7

Liabilities per the balance sheet

2022

£’m

2021

£’m

Derivative financial instruments – Level 2 — 0.2

Bank loans – Level 2 694.1 543.9

There were no transfers between Level 1, 2 and 3 fair value measurements during the current or prior year.

Over the life of the Group’s derivative financial instruments, the cumulative fair value gain/loss on those instruments will be £nil as it is the Group’s

intention to hold them to maturity.

Interest rate swaps not designated as part of a hedging arrangement

The notional principal amounts of the outstanding interest rate swap contracts at 31 October 2022 were £55.0 million and €nil (FY2021: £55.0million

and €30.0 million). At 31 October 2022 the weighted average fixed interest rates were Sterling at 0.6885% (FY2021: Sterling at 0.8152% and Euro

at 0.1656%), and floating rates are at quarterly SONIA. The £55.0 million SONIA swaps expire in June 2023. The movement in fair value recognised

in the income statement was a net gain of £1.0million (FY2021: net gain of £1.5 million).

Foreign currency forwards not designated as part of a hedging arrangement

As at 31 October 2022, the Group has one tranche of average rate forward contracts for a notional amount totalling €8.5 million at a rate of €1.0751

to the Pound (FY2021: three tranches totalling €24.5 million). The Group will receive the Sterling equivalent at this average exchange rate and pay

the Sterling equivalent of the average monthly spot rates on the Euro notional amounts, which has a maturity date of 28 April 2023. The movement

in the fair value recognised in the income statement in the period was a net loss of £1.3 million (FY2021: net gain of £1.4 million). The €8.0 million

tranche previously held matured and was settled in April 2022, resulting in a fair value disposal of £0.7 million and a receipt of £0.7 million. The

€8.0 million tranche previously held matured and was settled in October 2022, resulting in a fair value disposal of £0.6 million and a receipt of

£0.6 million. This resulted in £1.3 million recognised as finance income and £1.3 million expense as part of the £0.3 million expense recognised

infair value movement of derivatives within finance costs in the income statement.

Financial instruments by category

Assets per the balance sheet

Financial assets

at amortised cost

£’m

Assets at fair

value through

profit and loss

£’m

Total

£’m

Trade receivables and other receivables excluding prepayments 24.0 — 24.0

Derivative financial instruments — 1.7 1.7

Cash and cash equivalents 20.9 — 20.9

At 31 October 2022 44.9 1.7 46.6

Liabilities per the balance sheet

Other financial

liabilities at

amortised cost

£’m

Liabilities at fair

value through

profit and loss

£’m

Total

£’m

Borrowings (excluding lease liabilities) 623.8 — 623.8

Lease liabilities 95.4 — 95.4

Payables and accruals 43.9 — 43.9

At 31 October 2022 763.1 — 763.1

Safestore Holdings plc | Annual report and financial statements 2022

158

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

20. Financial instruments continued

Financial instruments continued

Financial instruments by category continued

Assets per the balance sheet

Financial assets

at amortised cost

£’m

Assets at fair

value through

profit and loss

£’m

Total

£’m

Trade receivables and other receivables excluding prepayments 20.9 — 20.9

Amounts due from associates 2.7 — 2.7

Derivative financial instruments — 2.2 2.2

Cash and cash equivalents 43.2 — 43.2

At 31 October 2021 66.8 2.2 69.0

Liabilities per the balance sheet

Other financial

liabilities at

amortised cost

£’m

Liabilities at fair

value through

profit and loss

£’m

Total

£’m

Borrowings (excluding lease liabilities) 484.7 — 484.7

Lease liabilities 82.3 — 82.3

Derivative financial instruments — 0.2 0.2

Payables and accruals 58.2 — 58.2

At 31 October 2021 625.2 0.2 625.4

The interest rate risk profile, after taking account of derivative financial instruments, was as follows:

2022 2021

Floating rate

£’m

Fixed rate

£’m

Total

£’m

Floating rate

£’m

Fixed rate

£’m

Total

£’m

Borrowings 46.8 577.0 623.8 — 484.7 484.7

The weighted average interest rate of the fixed rate financial borrowing was 2.05% (FY2021: 2.01%) and the weighted average remaining period

for which the rate is fixed was five years (FY2021: six years).

Maturity analysis

The table below analyses the Group’s financial liabilities and non-settled derivative financial instruments into relevant maturity groupings based

on the remaining period at the balance sheet date to the contractual maturity dates. The amounts disclosed in the table are the contractual

undiscounted cash flows.

Less than

one year

£’m

One to two

years

£’m

Two to five

years

£’m

More than

five years

£’m

2022

Borrowings 114.7 53.9 187.8 348.3

Derivative financial instruments 1.0 — — —

Lease liabilities 13.8 12.9 35.9 74.7

Payables and accruals 43.9 — — —

173.4 66.8 223.7 423.0

Less than

one year

£’m

One to two

years

£’m

Two to five

years

£’m

More than

five years

£’m

2021

Borrowings 10.6 67.4 162.1 313.4

Derivative financial instruments 0.3 0.3 — —

Lease liabilities 12.9 11.5 30.9 58.8

Payables and accruals 58.2 — — —

82.0 79.2 193.0 372.2

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159

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

21. Lease liabilities

The Group leases certain of its investment properties under lease liabilities. The average remaining lease term is 10.9 years (FY2021: 10.3 years).

Minimum lease payments

Present value of minimum

lease payments

2022

£’m

2021

£’m

2022

£’m

2021

£’m

Within one year 13.8 12.9 13.2 12.3

Within two to five years 48.8 42.4 40.6 35.3

Greater than five years 74.7 58.8 41.6 34.7

137.3 114.1 95.4 82.3

Less: future finance charges on lease liabilities (41.9) (31.8) — —

Present value of lease liabilities 95.4 82.3 95.4 82.3

2022

£’m

2021

£’m

Current 13.2 12.3

Non-current 82.2 70.0

95.4 82.3

Amounts recognised within the consolidated income statement include interest on lease liabilities of £5.0 million and variable lease payments not

included in the measurement of the lease liabilities of £0.3 million. Amounts recognised in the consolidated statement of cash flows include lease

liabilities principal payments of £8.4 million and interest on lease liabilities of £5.0 million. The maturity analysis for lease liabilities under contractual

undiscounted cash flows is included in note 20.

22. Deferred income tax

Deferred tax is calculated in full on temporary differences under the liability method using tax rates enacted in each respective jurisdiction

corresponding to when they are expected to reverse. The movement on the deferred tax account was as shown below.

Note

2022

£’m

2021

£’m

At 1 November 96.2 84.8

Charge to income statement 9 29.8 17.1

Exchange differences 2.2 (5.7)

At 31 October 128.2 96.2

The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction where permitted by IAS 12)

during the period are shown below.

Deferred tax liability

Revaluation of

investment

properties

£’m

Other

timing

differences

£’m

Total

£’m

At 1 November 2020 84.8 0.2 85.0

Charge/(credit) to income statement 17.8 (0.1) 17.7

Exchange differences (5.7) — (5.7)

At 31 October 2021 96.9 0.1 97.0

At 1 November 2021 96.9 0.1 97.0

Charge/(credit) to income statement 29.9 (0.1) 29.8

Exchange differences 2.2 — 2.2

At 31 October 2022 129.0 — 129.0

Safestore Holdings plc | Annual report and financial statements 2022

160

FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

22. Deferred income tax continued

Deferred tax asset

Other

timing

differences

£’m

Interest

swap

£’m

Total

£’m

At 1 November 2020 0.1 0.1 0.2

Credit/(charge) to income statement 0.7 (0.1) 0.6

At 31 October 2021 0.8 — 0.8

At 1 November 2021 0.8 — 0.8

Credit to income statement — — —

At 31 October 2022 0.8 — 0.8

The deferred tax liability due after more than one year is £129.0 million (FY2021: £97.0 million).

As at 31 October 2022, the Group had trading losses of £16.7 million (FY2021: £21.8 million) and capital losses of £36.5 million

(FY2021:£39.4million) in respect of its UK operations.

As at 31 October 2022, the Group had trading losses of £4.6 million (FY2021: £nil) in respect of its Netherlands and Belgium operations.

All losses can be carried forward indefinitely. No deferred tax asset has been recognised in respect of these losses due to the uncertainty

ofrecoverability against future taxable profits.

23. Called up share capital

2022

£’m

2021

£’m

Called up, allotted, and fully paid

211,927,497 (FY2021: 210,823,703) ordinary shares of 1 pence each 2.1 2.1

Ordinary shares

The holders of the ordinary shares shall be entitled to one vote for each ordinary share.

During the year the Company issued 1,103,794 ordinary shares (FY2021: 212,496 ordinary shares).

Safestore Holdings plc Sharesave scheme

The Sharesave awards are a savings related award accruing over a three-year period. There are no performance conditions attached to the

awards; as such, the sole condition for vesting is continued service. The fair value of the Sharesave options granted during the year was

assessed by an independent actuary using a Black-Scholes model based on the assumptions set out in the table below:

Grant date

22 August 2022

(UK three years)

Number of options granted 94,346

Share price at grant date (pence) 1,115

Exercise price (pence) 896

Risk-free rate of interest (% per annum) 2.42

Expected volatility (% per annum) 30.2

Expected dividend yield (% per annum) 2.42

Expected term to exercise (years) 3.20

Value per option (pence) 315

Safestore Long Term Incentive Plan

The fair values of the awards granted in the accounting period were assessed by an independent actuary using a Monte Carlo model based on

the assumptions set out in the table below. In determining an appropriate assumption for expected future volatility, the historical volatility of the

share price of Safestore Holdings plc has been considered along with the historical volatility of comparator companies.

Grant date January 2022

(PBT-EPS part) (TSR part)

Number of options granted 164,556 82,277

Weighted average share price at grant date (pence) 1,243 1,243

Exercise price (pence) — —

Weighted average risk-free rate of interest (% per annum) n/a 0.89

Expected volatility (% per annum) n/a 29.6

Weighted average expected term to exercise (years) 3.00 3.00

Weighted average value per option (pence) 1,379 714

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23. Called up share capital continued

Safestore Long Term Incentive Plan continued

Details of the awards outstanding under all of the Group’s share schemes are set out below:

Date of grant

31 October

2021 Granted Exercised Lapsed

31 October

2022

Exercise

price

Expiry

date

Safestore Holdings plc

Sharesave scheme

24/10/2017 40,285 — (3,401) (1,701) 35,183 352.8p 01/05/2023

14/08/2019 122,512 — (100,393) (5,993) 16,126 510.0p 01/03/2023

26/08/2020 149,814 — — (16,314) 133,500 600.0p 01/05/2024

20/08/2021 62,053 — — (16,976) 45,077 824.0p 01/05/2025

20/08/2022 — 94,346 — — 94,346 896.0p 01/05/2026

Total 374,664 94,346 (103,794) (40,984) 324,232

Safestore Long Term

Incentive Plan – 2017

29/09/2017 5,665,000 — (570,786) — 5,094,214 1.0p 28/09/2027

09/10/2017 150,000 — — — 150,000 0.0p 28/09/2027

15/06/2018 33,000 — (20,000) — 13,000 1.0p 28/09/2027

05/02/2019 85,000 — (3,450) — 81,550 1.0p 28/09/2027

05/07/2019 12,000 — (12,000) — — 1.0p 28/09/2027

23/01/2020 195,000 — (45,871) — 149,129 1.0p 28/09/2027

Total 6,140,000 — (652,107) — 5,487,893

Safestore Long Term

Incentive Plan – 2020

18/03/2020 406,191 — — — 406,191 0.0p 18/03/2023

Total 406,191 — — — 406,191

Safestore Long Term

Incentive Plan – 2021

28/01/2021 347,422 — — — 347,422 0.0p 28/01/2024

Total 347,422 — — — 347,422

Safestore Long Term

Incentive Plan – 2022

25/01/2022 — 246,833 — — 246,833 0.0p 25/01/2025

Total — 246,833 — — 246,833

In addition, gross amounts totalling £378,000 (FY2021: £378,000) in respect of bonuses awarded to Executive Directors for the year ended 31 October 2022

will be deferred into shares which will vest at the end of two years following the financial year in which the bonus is earned. The grant date is the last day

of the financial year in which the performance stage is assessed. The share entitlement is expected to be determined in January 2022.

The weighted average exercise price of outstanding options under the Sharesave scheme is 698.6 pence (FY2021: 581.1 pence). The weighted

average exercise price of options exercised under the Sharesave scheme was 400.4 pence. No shares were exercised under the Sharesave

scheme during 2020.

Own shares

Included within retained earnings are ordinary shares with a nominal value of £3,598 (FY2021: £413) that represent shares held by the Safestore

Employee Benefit Trust in satisfaction of awards under the Group’s Long Term Incentive Plan and which remain unvested.

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

24. Cash flow from operating activities

Reconciliation of operating profit to net cash inflow from operating activities:

Cash generated from continuing operations Notes

2022

£’m

2021

£’m

Profit before income tax 498.8 404.6

Gain on investment properties 13 (381.6) (321.1)

Other exceptional gains 5 (10.8) —

Share of loss in associates 0.3 —

Depreciation 14 1.0 1.0

Net finance expense 8 15.7 12.4

Employee share options 8.6 8.6

Changes in working capital:

Decrease/(increase) in inventories 0.2 (0.2)

Decrease/(increase) in trade and other receivables 0.1 (5.4)

(Decrease)/increase in trade and other payables (0.4) 13.6

Increase in provisions 0.3 2.1

Cash generated from continuing operations 132.2 115.6

25. Analysis of movement in gross and net debt

2021

£’m

Cash flows

£’m

Non-cash

movements

£’m

2022

£’m

Bank loans (484.7) (132.0) (7.1) (623.8)

Lease liabilities (82.3) 8.4 (21.5) (95.4)

Total gross debt (liabilities from financing activities) (567.0) (123.6) (28.6) (719.2)

Cash in hand 43.2 (22.1) (0.2) 20.9

Total net debt (523.8) (145.7) (28.8) (698.3)

The table above details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities

arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated cash flow

statement as cash flows from financing activities.

The cash flows from bank loans make up the net amount of proceeds from borrowings, repayment of borrowings and debt issuance costs.

Non-cash movements relate to the amortisation of debt issue costs of £0.5 million (FY2021: £0.4 million), foreign exchange movements

of £6.8million (FY2021: £12.4 million) and unwinding of discount to lease liabilities of £21.5 million (FY2021: £12.6 million).

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STRATEGIC REPORT

26. Employees and Directors

Staff costs (including Directors) for the Group during the year

2022

£’m

2021

£’m

Wages and salaries 25.1 23.3

Social security costs 3.8 11.3

Other pension costs 0.6 0.6

Share-based payments 8.6 8.6

38.1 43.8

During the period ended 31 October 2022 the Company’s equity-settled share-based payment arrangements comprised the Safestore Holdings

plc Sharesave scheme and the Safestore Long Term Incentive Plans. The number of awards made under each scheme is detailed in note 23.

Nooptions have been modified since grant under any of the schemes, other than the modification in respect of the LTIP awards for Executive

Directors described in note 23.

Average monthly number of people (including Executive Directors) employed

2022

Number

2021

Number

Sales 604 557

Administration 123 93

727 650

Key management compensation

2022

£’m

2021

£’m

Wages and salaries 4.4 4.2

Social security costs (0.3) 2.6

Post-employment benefits 0.1 0.1

Share-based payments 4.5 5.2

8.7 12.1

The key management figures given above include Directors.

Directors

2022

£’m

2021

£’m

Aggregate emoluments 5.7 8.3

Company contributions paid to money purchase pension schemes — —

5.7 8.3

There were two Directors (FY2021: two) accruing benefits under a money purchase scheme.

27. Provisions

In France, the basis on which property taxes have been assessed has been challenged by the tax authority for financial years 2011 onwards.

InMarch 2021 the French Court of Appeal delivered a judgement, which resulted in a partial success for the Group; however, a further appeal

has been lodged with the French Supreme Court against those decisions on which the Group was unsuccessful. A provision is included in the

consolidated financial accounts of £2.4 million at 31 October 2022 (FY2021: £2.1 million), to reflect the increased uncertainty surrounding the

likelihood of a successful outcome. Of the total provided, £0.3 million has been charged in relation to the twelve months to 31 October 2022

within cost of sales (Underlying EBITDA) (FY2021: £1.9 million was recorded as an exceptional charge in respect of financial years 2012 to 2020

and £0.2 million was charged in relation to the twelve months to 31 October 2021 within underlying cost of sales).

It is possible that the French tax authority may appeal the decisions of the French Court of Appeal on which the Group was successful to the

French Supreme Court. The maximum potential further exposure in relation to these issues at 31 October 2022 is £3.0 million (FY2021: £2.7million).

No provision for any potential further exposure has been recorded in the consolidated financial statements since the Group believesit is more likely

than not that a successful outcome will be achieved, resulting in no additional liabilities.

Bank guarantees to cover any potential additional tax assessment are currently being put in place, of which guarantees totalling £1.2 million

havebeen put in place as at 31 October 2022 (FY2021: £1.3 million).

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FINANCIAL STATEMENTS

Notes to the financial statements continued

for the year ended 31 October 2022

28. Contingent liabilities

As part of the Group banking facility, the Company has guaranteed the borrowings totalling £625.1 million (FY2021: £486.5 million) of fellow Group

undertakings by way of a charge over all of its property and assets. There are similar cross-guarantees provided by the Group companies in

respect of any bank borrowings which the Company may draw under a Group facility agreement. The financial liability associated with this guarantee

is considered remote and therefore no provision has been recorded.

The Group also has a contingent liability in respect of property taxation in the French subsidiary as disclosed in note 27.

29. Capital commitments

The Group had £146.0 million of capital commitments as at 31 October 2022 (FY2021: £98.6 million).

30. Related party transactions

The Group’s shares are widely held. Transactions between the Company and its subsidiaries, which are related parties, have been eliminated

on consolidation and are not disclosed in this note.

Transactions with Safestore Storage Benelux B.V. (formerly CERF Storage JV B.V.)

As described in note 12, the Group had a 20% interest in Safestore Storage Benelux B.V. (“SSB”) up until 30 March 2022 and was classified as

an investment in associate. From 30 March 2022, SSB became a wholly owned subsidiary of the Group, from which point all intra-group

transactions and balances are eliminated on consolidation.

During the period to 30 March 2022 the Group recharged £0.2 million (FY2021: £nil) to SSB for operational costs paid on behalf of SSB and was

repaid £0.2 million (FY2021: £0.2 million) of cumulative outstanding balances during the year. Unpaid interest of £0.1 million (FY2021: £0.1 million)

was accrued and charged during the year on the €3.0 million (£2.7 million) principal loan note outstanding. The total amount outstanding at

30March 2022 included within current trade and other receivables was £2.8 million (FY2021: £2.7 million). Management fees charged and settled

during the year amounted to £0.3 million (FY2021: £1.0 million).

Transactions with PBC Les Groues SAS

As described in note 12, the Group has a 24.9% interest in PBC Les Groues SAS (“PBC”). During the period, the Group made a further

investment of £0.8 million (€0.9 million) into PBC to fund the development of a new store in France, taking the total investment to £1.8 million

(€2.1million) (FY2021: £1.0 million (€1.2 million)). The total amount invested is included as part of its non-current investments in associates.

Thetotal amount outstanding at 31 October 2022 included within trade and other receivables was £nil (FY2021: £nil).

As described in note 5, during the period, the Group sold the Nanterre site to the Joint Venture partner of Nanterre FOCD 92 for a total price

of€7.6 million excluding VAT and including demolition cost reimbursement, where the settlement is done partially in cash of £1.0 million

(€1.1million excluding tax), and partially in kind through the delivery of the new building at the end of the operation (estimated at €6.5 million).

31. Parent company

Safestore Holdings plc is a limited liability company incorporated in England and Wales and domiciled in the UK. It operates as the ultimate

parent company of the Safestore Holdings plc Group.

32. Post balance sheet events

On 11 November 2022 the Group completed its refinancing exercise obtaining a new increased unsecured £400 million multi-currency four-year

Revolving Credit Facility (with two one-year extension options). In addition, a further £100 million uncommitted accordion facility is incorporated

into the facility agreement.

On 1 December 2022 the Group acquired a 10.0% interest in CERF II German Storage Topco S.à r.l., a company registered in Luxembourg,

andthe indirect holder myStorage GmbH, a company registered and operating in Germany.

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STRATEGIC REPORT

Company

Notes

2022

£’m

2021

£’m

Non-current assets

Property, plant and equipment 5 — —

Investments in subsidiaries 6 1.0 1.0

Loans to Group undertakings 7 835.7 585.8

Total non-current assets 836.7 586.8

Current assets

Trade and other receivables 8 0.2 0.6

Cash and cash equivalents 1.2 —

Total current assets 1.4 0.6

Total assets 838.1 587.4

Current liabilities 9 (108.7) (42.2)

Total assets less current liabilities 729.4 545.2

Non-current liabilities 10 (523.3) (429.1)

Net assets 206.1 116.1

Equity

Called up share capital 11 2.1 2.1

Share premium account 61.8 61.3

Retained earnings 142.2 52.7

Total equity 206.1 116.1

The Company’s profit for the financial year amounted to £137.8 million (FY2021: £14.3 million loss).

The Company financial statements were approved by the Board of Directors on 16 January 2023 and signed on its behalf by:

A Jones F Vecchioli

Chief Financial Officer Chief Executive Officer

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FINANCIAL STATEMENTS

Company balance sheet

as at 31 October 2022

Company registration number: 04726380

Company

Called up

share capital

£’m

Share premium

account

£’m

Retained

earnings

£’m

Total

£’m

Balance at 1 November 2020 2.1 60.6 101.0 163.7

Comprehensive income

Loss for the year — — (14.3) (14.3)

Total comprehensive income 2.1 60.6 86.7 149.4

Transactions with owners

Dividends — — (42.6) (42.6)

Increase in share capital — 0.7 — 0.7

Employee share options — — 8.6 8.6

Transactions with owners — 0.7 (34.0) (33.3)

Balance at 1 November 2021 2.1 61.3 52.7 116.1

Comprehensive income

Profit for the year — — 137.8 137.8

Total comprehensive income 2.1 61.3 190.5 253.9

Transactions with owners

Dividends — — (56.9) (56.9)

Increase in share capital — 0.5 — 0.5

Employee share options — — 8.6 8.6

Transactions with owners — 0.5 (48.3) (47.8)

Balance at 31 October 2022 2.1 61.8 142.2 206.1

For details of the dividend paid in the year see note 10 in the Group financial statements.

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STRATEGIC REPORT

Company statement of changes in equity

for the year ended 31 October 2022

1. Accounting policies and basis of preparation

The Company financial statements are prepared in accordance with Financial Reporting Standard 101 “Reduced Disclosure Framework”

(“FRS101”). In preparing these financial statements the Company applies the recognition, measurement and disclosure requirements of

UnitedKingdom adopted International Financial Reporting Standards (“IFRS”) but makes amendments where necessary in order to comply

withthe Companies Act 2006 and sets out below where advantage of the FRS 101 disclosure exemptions has been taken.

In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:

• a cash flow statement and related notes;

• comparative period reconciliations for tangible fixed assets;

• disclosures in respect of transactions with wholly owned subsidiaries;

• disclosures in respect of capital management;

• the effects of new but not yet effective IFRSs;

• IFRS 2 “Share-based Payment” in respect of Group-settled share-based payments; and

• certain disclosures required by IFRS 13 “Fair Value Measurement” and the disclosures required by IFRS 7 “Financial Instruments: Disclosures”.

The above disclosure exemptions are permitted because equivalent disclosures are included in the Group consolidated financial statements.

The financial statements are prepared on a going concern basis under the historical cost convention. The Company’s principal accounting

policies are the same as those applied in the Group financial statements, except as described below:

Investments

Investments held as fixed assets are stated at cost less provision for impairment in value.

2. Results of parent company

As permitted by Section 408 of the Companies Act 2006, the Company has elected not to present its own profit and loss account as part

ofthese financial statements. The Company’s profit for the financial year amounted to £137.8 million (FY2021: £14.3 million loss).

3. Directors’ emoluments

The Directors’ emoluments are disclosed in note 26 of the Group financial statements.

4. Operating profit

The Company does not have any employees (FY2021: none). Details of the Company’s share-based payments are set out in note 23 to the

Group financial statements.

Auditor’s remuneration for the year ended 31 October 2022 was £17,000 (FY2021: £16,000). There were no non-audit services (FY2021: none)

provided by the auditor.

5. Property, plant and equipment

£’m

Cost

At 1 November 2021 and at 31 October 2022 0.2

Accumulated depreciation

At 1 November 2021 0.2

Charge for the year —

At 31 October 2022 0.2

Net book value

At 31 October 2022 —

At 31 October 2021 —

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FINANCIAL STATEMENTS

Notes to the Company financial statements

for the year ended 31 October 2022

6. Investments in subsidiaries

£’m

Cost and net book value

At 1 November 2021 1.0

At 31 October 2022 1.0

Investments in subsidiaries are stated at cost. A list of interests in subsidiary undertakings is given below. The Directors believe that the carrying

value of the investments is supported by their underlying net assets.

Interests in subsidiary undertakings

The entities listed below are subsidiaries of the Company or the Group. The Group percentage of equity capital and voting rights is 100% for all

subsidiaries listed. The results of all of the subsidiaries have been consolidated within these financial statements. The registered address of each

subsidiary is Brittanic House, Stirling Way, Borehamwood, Hertfordshire WD6 2BT, except where indicated below by a footnote.

Subsidiary Country of incorporation Principal activity

Safestore Investments 2018 Limited

England and Wales Holding company

Safestore Investments Limited England and Wales Holding company

Safestore Group Limited England and Wales Holding company

Safestore Acquisition Limited England and Wales Holding company

Safestore Limited England and Wales Provision of self storage

Safestore Properties Limited England and Wales Provision of self storage

Spaces Personal Storage Limited England and Wales Provision of self storage

Safestore Trading Limited England and Wales Non-trading

Mentmore Limited England and Wales Holding company

Invest Holding

Luxembourg

Holding company

Une Pièce en Plus SAS

France

Provision of self storage

Compagnie de Libre Entreposage France SAS

France

Holding company

Assay Services Limited

Guernsey

Insurance services

OMB Self Storage S.L.U. Spain

Provision of self storage

Safestore Netherlands B.V. Netherlands

Holding company

Walnut Tree Self Storage Limited

England and Wales Provision of self storage

Fort Box Self Storage Limited

England and Wales Provision of self storage

Fort Box Limited

England and Wales Non-trading

USIFB Storage Company Limited

England and Wales Provision of self storage

Your Room Self Storage Limited England and Wales Provision of self storage

Safestore Storage Benelux B.V. Netherlands

Holding company

Safestore Storage B.V. Netherlands

Provision of self storage

M3 Self-Storage B.V. Netherlands

Provision of self storage

Safestore Storage Properties 1 B.V. Netherlands

Provision of self storage

Safestore Storage Properties 2 B.V. Netherlands

Provision of self storage

Safestore Storage Properties 3 B.V. Netherlands

Provision of self storage

Lokabox SA Belgium

Provision of self storage

Safestore Europe SAS

France

Provision of self storage

Investimmo SAS

France

Provision of self storage

Notes

1 Held directly by the Company.

2 Formerly named Access Storage Holdings (France) S.à r.l.

3 Registered address: 412F, route d’Esch, L-2086 Luxembourg.

4 UK tax resident; registered address prior to liquidation: St Martin’s House, Le Bordage, St Peter Port, Guernsey.

5 Registered address: 1, rue François Jacob, 92500 Rueil Malmaison, France.

6 Registered address: Calle Marina 153, 08013 Barcelona, Spain.

7 Registered address: Herikerbergwerg 88, 1101CM Amsterdam, 1077ZX Amsterdam, Netherlands.

8 Registered address: Beijnesweg 19, 2031BB Haarlem, Netherlands.

9 Registered address: Chaussée de Bruxelles 151-155, 6040 Charleroi, Belgium.

10 Incorporated in July 2022.

11 Companies liquidated during the year ended 31 October 2022.

12 Merged under the EU Merger Directive on 31 October 2022 resulting in the cessation of Compagnie de Libre Entreposage France SAS.

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STRATEGIC REPORT

7. Fixed assets – loans to Group undertakings

2022

£’m

2021

£’m

Loans to Group undertakings 835.7 585.8

835.7 585.8

Amounts owed by Group undertakings are unsecured and repayable on demand; however, the Directors consider it unlikely that repayment will

arise in the short term and in practice amounts owed by Group undertakings are used to meet the capital requirements of the borrower with no

realistic repayment in the near future. It is for this reason that the amounts are classified as fixed assets.

Interest is charged to Group undertakings on amounts totalling £523.3 million (FY2021: £429.1 million). The remaining amounts owed by Group

undertakings are interest free. The movement in loans to Group undertakings relates to interest charged of £9.9 million (FY2021: £6.7 million) and

additional amounts loaned and recharged of £240.0 million (FY2021: £82.5 million).

8. Trade and other receivables

2022

£’m

2021

£’m

Trade receivables — 0.5

Other receivables 0.2 0.1

0.2 0.6

Trade and other receivables due within one year were tested for impairment in line with the Group as described in note 2. As at 31 October 2022

these amounts due are considered fully recoverable and no provision has been made (FY2021: £nil).

9. Current liabilities

2022

£’m

2021

£’m

Amounts owed to Group undertakings 98.6 30.8

Trade payables 0.2 0.1

Accruals and deferred income 9.9 11.3

108.7 42.2

Amounts owed to Group undertakings are unsecured, interest free and repayable on demand. The Directors have received assurance that

repayment of amounts owed to Group undertakings will not arise in the short term.

10. Non-current liabilities

2022

£’m

2021

£’m

Secured loan notes 523.3 429.1

523.3 429.1

Of the above, £320.6 million (FY2021: £292.1 million) is due after more than five years.

The Company has in issue €50.9 million (FY2021: €50.9 million) 1.59% Series A Senior Secured Notes due 2024, €70.0 million (FY2021: €70.0million)

1.26% Series ASecured Notes due 2026, £35.0 million (FY2021: £35.0 million) 2.59% Series B Senior Secured Notes due 2026, €74.1 million

(FY2021: €74.1million) 2.00% Series B Senior Secured Notes due 2027, £20.0 million (FY2021: £20.0 million) 1.96% Series A Secured Notes due

2028, €29.0 million (FY2021: €29.0 million) 0.93% Series B Secured Notes due 2028, £50.5 million (FY2021: £50.5 million) 2.92% Series C Senior

Secured Notes due 2029, £30.0 million (FY2021: £30.0 million) 2.69% Series C Senior Secured Notes due 2029, €105.0million (FY2021: €nil)

2.45% Private Shelf Senior Secured Notes due 2029, £80.0 million (FY2021: £80.0 million) 2.39% Series C Secured Notes due 2031 and

€29.0million (FY2021: €29.0 million) 1.42% Series D Secured Notes due 2033.

11. Called up share capital

2022

£’m

2021

£’m

Called up, allotted, and fully paid

211,927,497 (FY2021: 210,823,703) ordinary shares of 1 pence 2.1 2.1

Ordinary shares

The holders of the ordinary shares shall be entitled to one vote for each ordinary share.

For details of share options see note 23 in the Group financial statements.

12. Contingent liabilities

For details of contingent liabilities see note 28 in the Group financial statements.

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FINANCIAL STATEMENTS

Notes to the Company financial statements continued

for the year ended 31 October 2022

Absorption rate The rate at which rentable space is filled.

Adjusted Diluted EPRA

Earnings per Share

Based on the European Public Real Estate Association’s definition of earnings and is defined as

profit or loss for the period after tax but excluding corporate transaction costs, change in fair value

of derivatives, gain/loss on investment properties and the associated tax impacts. The Company

then makes further adjustments for the impact of exceptional items, net exchange gains/losses

recognised in net finance costs, exceptional tax items, and deferred and current tax in respect of

these adjustments. The Company also adjusts for IFRS 2 share-based payment charges.

Adjusted earnings growth The increase in adjusted EPS year-on-year.

Adjusted EPS Adjusted profit after tax divided by the diluted weighted average number of shares in issue during

the financial year.

Adjusted profit before tax The Company’s pre-tax EPRA earnings measure with additional Company adjustments.

Average net achieved rent per sq ft Storage revenue divided by average occupied space over the financial year.

Average rental growth The growth in average net achieved rent per sq ft year-on-year.

Average storage rate Revenue generated from self storage revenues divided by the average square footage occupied

during the period in question.

BREEAM An environmental rating assessed under the Building Research Establishment’s Environmental

Assessment Method.

Cap and collar Term used in connection with interest rates. A cap is an upper limit or maximum interest rate that

will apply, while a collar is the minimum interest rate.

Capitalisation rate The ratio of net operating income to property asset value.

Compound Annual Growth Rate (“CAGR”) The annual rate of return over a specified period of time longer than one year.

CER Constant Exchange Rates (Euro denominated results for the current period have been retranslated

at the exchange rate effective for the comparative period, in order to present the reported results on

a more comparable basis).

Closing net rent per sq ft Annual storage revenue generated from in-place customers divided by occupied space at the

balance sheet date.

Earnings per Share (“EPS”) Profit for the financial year attributable to equity shareholders divided by the average number of

shares in issue during the financial year.

EBITDA Earnings before interest, tax, depreciation and amortisation.

EPRA The European Public Real Estate Association, a real estate industry body. This organisation

has issued Best Practices Recommendations with the intention of improving the transparency,

comparability and relevance of the published results of listed real estate companies in Europe.

EPRA earnings The IFRS profit after taxation attributable to shareholders of the Company excluding investment

property revaluations, gains/losses on investment property disposals and changes in the fair value

of financial instruments.

EPRA Earnings per Share EPRA earnings divided by the average number of shares in issue during the financial year.

EPRA Net Asset Value (“NAV”) IFRS net assets excluding the mark-to-market on interest rate derivatives effective cash flow

anddeferred taxation on property valuations where it arises. It is adjusted for the dilutive impact

ofshare options.

EPRA NAV per share EPRA NAV divided by the diluted number of shares at the year end.

EPRA Net Tangible Assets (“NTA”) A proportionally consolidated measure, representing the IFRS net assets excluding the mark-to-market

on derivatives and related debt adjustments, the mark-to-market on the convertible bonds, the carrying

value of intangibles and deferred taxation on property and derivative valuations. It includes the valuation

surplus on trading properties and is adjusted for the dilutive impact of share options.

EPRA NTA per share EPRA NTA divided by the diluted number of shares held at the year end.

Equity All capital and reserves of the Group attributable to equity holders of the Company.

Euro Interbank Offered Rate (“EURIBOR”) The average benchmark interest rate at which Eurozone banks offer unsecured short term lending

on the inter-bank market.

Exit yield Represents the capital value of an investment property at the end of the investment term expressed

in percentage terms.

Free cash flow Cash flow before investing and financing activities but after leasehold rent payments.

Gross property assets The sum of investment property and investment property under construction.

Safestore Holdings plc | Annual report and financial statements 2022

171

OVERVIEW

GOVERNANCE REPORT

FINANCIAL STATEMENTS

STRATEGIC REPORT

Glossary

Gross value added The measure of the value of goods and services produced in an area, industry or sector of an economy.

ICR ICR is interest cover ratio and is calculated as the ratio of Underlying EBITDA after leasehold rent to

underlying finance charges.

Joint Venture A business arrangement in which two or more parties agree to pool their resources for the purpose

of accomplishing a specific task.

Like-for-like occupancy Excludes the closing occupancy of new stores acquired, opened and closed in the current financial

year in both the current financial year and comparative figures.

Like-for-like revenue Excludes the impact of new stores acquired, opened and closed in the current or preceding

financial year in both the current year and comparative figures.

Loan to value (“LTV”) Gross debt (excluding lease liabilities) as a proportion of the valuation of investment properties and

investment properties under construction (excluding lease liabilities).

Maximum lettable area (“MLA”) The total square feet (“sq ft”) available to be fitted out to rent to customers.

Net debt Total borrowings (including “current and non-current borrowings and lease liabilities” as shown in the

consolidated balance sheet) less cash and cash equivalents.

Net initial yield The forthcoming financial year’s net operating income expressed as a percentage of capital value,

after adding notional purchaser’s costs.

Net promoter score (“NPS”) An index ranging from -100 to 100 that measures the willingness of customers to recommend a

company’s products or services to others. The Company measures NPS based on surveys sent to

all of its move-ins and move-outs.

Net rent per sq ft Storage revenue generated from in-place customers divided by occupancy.

Occupancy The space occupied by customers divided by the MLA expressed as a %.

Occupied space The space occupied by customers in sq ft.

Pipeline The Group’s development sites.

Property Income Distribution (“PID”) A dividend, generally subject to withholding tax, that a UK REIT is required to pay from its tax

exempt property rental business and which is taxable for UK-resident shareholders at their

marginal tax rate.

Real Estate Investment Trust (“REIT”) A tax regime which in the UK exempts participants from corporation tax both on UK rental income

and gains arising on UK investment property sales, subject to certain conditions.

Real Estate Transfer Tax (“RETT”) RETT is levied in respect of the acquisition of the legal and/or beneficial ownership of real estate

located in the Netherlands; certain rights concerning such Dutch real estate; and shares in entities

that qualify as a real estate entity.

Sterling Overnight Index Average

(“SONIA”)

The effective overnight interest rate paid by banks for unsecured transactions in the British

Sterlingmarket.

Store EBITDA Store earnings before interest, tax, depreciation and amortisation.

Task Force on Climate-related Financial

Disclosures (“TCFD”)

The Financial Stability Board created the TCFD to improve and increase reporting of climate-related

financial information.

Total shareholder return (“TSR”) The growth in value of a shareholding over a specified period, assuming dividends are reinvested

topurchase additional units of shares.

Underlying EBITDA Operating profit before exceptional items, share-based payments, corporate transaction costs,

gain/loss on investment properties, depreciation and variable lease payments and the share of

associate’s depreciation, interest and tax. Underlying EBITDA therefore excludes all leasehold

rentcharges.

Underlying profit before tax Underlying EBITDA less leasehold rent, depreciation charged on property, plant and equipment and

net finance charges relating to bank loans and cash.

Safestore Holdings plc | Annual report and financial statements 2022

172

FINANCIAL STATEMENTS

Glossary continued

Safestore Holding plc’s commitment to environmental issues

isreflected in this Annual Report, which has been printed on

Magno Satin, an FSC

certified material. This document was

printed by Park Communications using its environmental print

technology, which minimises the impact of printing on the

environment, with 99% of dry waste diverted from landfill.

Boththe printer and the paper mill are registered to ISO 14001.

CBP016885

Directors

David Hearn (Non-Executive Chairman)

Frederic Vecchioli (Chief Executive Officer)

Andy Jones (Chief Financial Officer)

Ian Krieger (Non-Executive Director)

Gert van de Weerdhof (Non-Executive Director)

Laure Duhot (Non-Executive Director)

Delphine Mousseau (Non-Executive Director)

Jane Bentall (Non-Executive Director)

Company Secretary

Helen Bramall

Registered office

Brittanic House

Stirling Way

Borehamwood

Hertfordshire WD6 2BT

Registered company number

04726380

Websites

www.safestore.co.uk

www.safestore.com

Bankers

National Westminster Bank plc

ABN Amro Bank N.V.

Crédit Industriel et Commercial

Bank of China

Citibank N.A.

Banco de Sabadell S.A.

Independent auditor

Deloitte LLP

Statutory Auditor

2 New Street Square

London EC4A 3TR

Legal advisers

Travers Smith LLP

10 Snow Hill

London EC1A 2AL

Eversheds LLP

115 Colmore Row

Birmingham B3 3AL

Brokers and financial advisers

Investec Bank Plc

30 Gresham Street

London EC2V 7QP

Citigroup Global Markets Limited

Citigroup Centre

33 Canada Square

London E14 5LB

Financial PR advisers

Instinctif Partners

65 Gresham Street

London EC2V 7NQ

Shareholder information

Registrar

Link Group

The Registry

10th Floor

Central Square

29 Wellington Street

Leeds LS1 4DL

Telephone: +44 (0)371 664 0300

(Calls are charged at the standard geographic rate and will vary by

provider. Calls outside the United Kingdom will be charged at the

applicable international rate).

Lines are open between 9.00am and 5.30pm Monday to Friday,

excluding public holidays in England and Wales.

Email: shareholderenquiries@linkgroup.co.uk

Share Portal Enquiries: shareholderenquiries@linkgroup.co.uk

Share Portal: www.signalshares.com

Through the website of our Registrar, Link Group, shareholders are

able to manage their shareholding by registering for the Share Portal,

afree, secure, online access to their shareholding.

Please visit our investor relations website

For all the latest news and updates at www.safestore.com.

Directors and advisers

Further information and investor

updatescanbefound on our website at

www.safestore.co.uk/corporate

Safestore Holdings plc

Brittanic House

Stirling Way

Borehamwood

Hertfordshire WD6 2BT

Tel: 020 8732 1500

Fax: 020 8732 1510

www.safestore.co.uk

www.safestore.com

Safestore Holdings plc Annual report and financial statements 2022