KSS JulyeKourier 2020

FINANCE

What a year it has been – drought, fire, floods and a Pandemic to cap off an incredible period. THE IMPACTS OF COVID-19

‘

of the Covid incentives as a result of lost business. This is a credit to the industry, the quality of our storage sites and the service we offer every day. With so many people losing their jobs we should be extremely grateful to be working at Kennards Self Storage. Let’s all repay this going forward as we look to stabilise occupancy and revenue streams and look to grow wherever we can. Every sales lead, box sale or opportunity to reduce a cost should be grabbed with both hands. Thanks everyone for your great efforts and support during a very turbulent time. ‘ BE WORKING AT KENNARDS SELF STORAGE. WITH SO MANY PEOPLE LOSING THEIR JOBS WE SHOULD BE EXTREMELY GRATEFUL TO

T he economy in Quarter 1 ending 31 March has contracted slightly at 0.3% and this is before the Quarter with a full Covid-19 impact!

recover costs wherever possible.

• Rental Income – Rental relief has been offered to customers with billboards or restaurants. • Expenses have become a key focus area as we look to recover the loss of income. Ongoing reviews of advertising, supplier contracts and reducing repairs and maintenance wherever possible. The impact is also state or country dependant: • New Zealand - was in total lock down for four weeks so remained stable from a rental income point of view during this period. With the economy moving rapidly forward things should stabilise quite quickly. • NSW - coming out of Covid better than other states with June showing a lift in occupancy and July starting well. • QLD - has delayed opening their boarders until 10th July which has seen a flood of tourists and should positively impact the economy and storage. • VIC - has seen a second lockdown which is an unknown at this stage. Hopefully after six weeks things start opening up again. • SA - also showing positive signs as a result of the easing out of Covid. As a business, Kennards has not had to use Jobkeeper and could not claim any

So how has Kennards been impacted:

• Occupancy has been impacted negatively in March and April but steadied in May to be slightly down on April. June started OK with some positive signs. • Discounts are higher as we have offered rent relief to customers. The number of rent relief being offered has reduced but not quite stopped. • Bad Debts have been managed very well by Teams. This is a huge risk area and one to continuously review. • Merchandise sales have been very varied with an outstanding March and then very soft April and a slight improve- ment in May. • Late Fees - we have stopped charging but have seen this normalise from June. • Insurance has remained steady as customers look to retain the comfort of having insurance. • Other Income – has seen some signifi- cant reductions and varying across months. The key is for all sites to

Anthony Rous Chief Financial Officer

8 Kennards Kourier July 2020