Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — H1 2020 Earnings Presentation
31 slides from Shurgard Self Storage's earnings presentation, Aug 14, 2020
Slide 1: Greenwich
Greenwich
Slide 2: Highlights H1-2020
Highlights H1-2020 | SHURGARD | H1 performance with strong results (at CER) * Property operating revenue growth for the first six months of 5.2%; * Income from property (NO!) growth for the first six months of 5.5%; * Same store property operating revenue growth for the first six months of 3.8%; * S
Slide 3: Highlights Q2-2020
Highlights Q2-2020 | SHURGARD | Solid Q2 performance (at CER) * Property operating revenue growth for the quarter of 5.0%; * Income from property (NO!) growth for the quarter of 4.6%; * Successful acquisition of four properties from ZeitLager in Munich on May 14, 2020; * Same store property operatin
Slide 4: Resilient business model with very robust balance sheet
Highlights H1-2020 | SHURGARD | Resilient business model with very robust balance sheet * — Cash position: €136.6 million as of June 30, 2020; * — Undrawn revolving credit facility for €250 million — matures in 2023; * Long-term funding with no immediate maturities; * — LTV:18.0% as of June 30, 2020
Slide 5: Financial performance H1-2020
Financial performance H1-2020 In € millions (except Adj. Epra earnings per share) At actual exchange rate Property operating revenue Other revenue © Real estate operating revenue Real estate operating expense Net income from real estate operations % margin G&A and other EBITDA % margin Adj. EPRA ear
Slide 6: Current operating results — Top line growth and scalability
Current operating results — Top line growth and scalability [ sturcaro | In € millions (except in-place rent and revPAM) At constant exchange rate All store Same store Non-same store H1 2020 H1 2019 % var. H1 2020 H1 2019 % var. H1 2020 H1 2019 % vai. Property operating revenue 132.2 1257 C5.2% 1278
Slide 7: H1 2020 revenue evolution — Three levers of growth
H1 2020 revenue evolution — Three levers of growth | SHURGARD | H1 2019 — H1 2020 revenue" bridge (€ million) 126.0 = Same store revenue growth (constant FX rate): +3.8% 4.6 Revenue growth (constant FX rate): +5.2% Revenue growth: +4.9% = Mostly linked to SEK 06 18 (0.3) = Ramp-up phasel?) = Additio
Slide 8: Real estate operating expenses
Real estate operating expenses [ sturcaro | In€ 000" ‘At constant exchange rate H1 2020 H1 2019 % var. Payroll expense 19,200 18,674 28% Real estate and other taxes 10,499 9586 95% Repairs and maintenance 3,969 3,395 16.9% Marketing expense 3,487 3367 3.5% Utility expense 2,016 1,927 46% Other opera
Slide 9: H1 2020 NOI evolution — Top line growth and scalability
H1 2020 NOI evolution — Top line growth and scalability [ sturcaro | H1 2019 — H1 2020 NOI") bridge (€m) | NOI margin improvement: +0.1pp NOI growth (constant FX rate): +5.5% NOI growth: +5.2% = Mostly linked to SEK 613% Nol main O18 35 02 0.9 (0.2) 81.0 : ) U J if 770 | = Ramp-up phasel) = Opex und
Slide 10: Cash flow statement
Cash flow statement | SHURGARD | In € millions H1 20 H1 2019 % var. At actual exchange rate Comments EBITDA 74.6 68.8 85% Other / working capital 20.0 9.6 107.9% Taxes (15.1) 54.0% e (1) Refunds in France and Germany following tax assessment TOTAL CASH FROM OPERATIONS 63.3 Acquisitions 0.0 NA 6 High
Slide 11: Balance sheet — Solid and ready for growth
Balance sheet — Solid and ready for growth [ sturcaro | In€ millions At actual exchange rate Comments H1 2020 FY 2019 % Vat. Increase mainly due favorable fair value revaluation Investment property 2,993.5 2,806.9 e 1) F y va and capital expenditure for acquisitions, Other assets (1) 21.0 234 develo
Slide 12: Portfolio expansion — Significant and strong short term pipeline
Portfolio expansion — Significant and strong short term pipeline [ sturcaro | In€ millions ‘At closing rate June 2020 Region Country Number of Net sqm Direct project cost properties (000's) / Acquisition cost (1) Total 2020 7 61.9 130.5 Major redevelopments Marseille France 1 07 03 Paris France 3 16
Slide 13: COVID-19 Impact
COVID-19 Impact | SHURGARD | * Half of the Group not significantly impacted (The Netherlands, Sweden, Germany and Denmark) during H1; * France, the UK and Belgium faced change of behavior for prospects and customers; * — Since lockdown exit (May 11 (FR and BE) & Jun 15 (UK)): * Demand, move-ins and
Slide 14: Conclusion
Conclusion | SHURGARD | * Strong H1 performance; * Resilience of Shurgard during COVID-19 crisis up to June 30: * Same store closing occupancy: 89.6% at June 30, 2020 up by 2.6pp versus March 31, 2020 and 1.3pp versus June 30, 2019 * Rental collection in line with historical pattern * Our expansion
Slide 15: CONFIDENTIAL
15 CONFIDENTIAL
Slide 16: Shurgard
SHURGARD = A
Slide 17: CONFIDENTIAL
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Slide 18: Three levers of growth
Three levers of growth Optimization Redevelopment c. 1 property >10% yield Same store 1.5% - 2.5% Bolt-on acquisitions + From competitors 3 properties 2] c. 8% yield Openings New build and conversion 5 properties c. 8% yield Non-same store 2.5% - 4.5% 0:00:60 c. 9 new properties c. €100M c. 8% yield
Slide 19: #1 in Europe with unrivaled presence
SHURG. #1 in Europe with unrivaled presence [ srurcaro | Sqm (million) Number of stores in Europe Geographical presence Safestore 126 im | / XL 664 Homebox 125 Big Yellow 76 25 05 vals Ss SRS 03 oo os Access 7 03 Pics MyPlace 50 02 Bluespace 39 01 Lok’n Store 35 0.1 Pelican i I Brand #1 a Storage Ki
Slide 20: Why invest in Shurgard?
Why invest in Shurgard? | SHURGARD | 1) Secular growth trends 2 Undisputed leadership in Europe Integrated, optimized and scalable branded platform SHURGARD ti) Track record of growth and cash generation 6 Robust balance sheet to support expansion 6 Growing with existing stores, new openings and tar
Slide 21: CONFIDENTIAL
(€ 000) 1,200 900 600 300 0 0% 20% 40% 60% 80% 100% CONFIDENTIAL
Slide 22: Demonstrated track record of resilience — Same store
Demonstrated track record of resilience — Same store [ sturcaro | 12.0% 10.0% 8.0% 6.0% 4.0% 20% 0.0% 20% 2008 «2009 2010 «201 =62012) «2013 2014) 2015 2016 Property operating revenue - % change 92.0% 7.0% 4.0% 10% -20% * 4 -5.0% 2008 2009 2010 2011! 20122013! 2014 2015-2016 2008 2009 2010 201 «2012
Slide 23: ESG - Sustainability and societal impact
ESG - Sustainability and societal impact [ srurcaro | We are focused on ensuring: * we engage professionally with staff; * improve the communities in which we operate; * manage the impact our stores have on environment for the wellbeing of all our stakeholders; * and follow a strict governance. Sac
Slide 24: Environmental — Improving our environmental performance is a key focus area
: : : : SHURGARD Environmental — Improving our environmental performance is a key focus area 4 © ENERGY USE GREENHOUSE GAS EMISSIONS -2.8% -41% MWh* Tonnes CO,** 2018 35,362 2018 7,680 * Total energy use at same store (degree day corrected) ** Total carbon emissions at same store 2: es
Slide 25: Social — Employee engagement, development, diversity and inclusion
Social — Employee engagement, development, diversity and inclusion [ srurcaro | Store Personnel Average Salary in 2019 +3.9% () 35% -01% -21% 405% 410% -2.0% oe 18% EMPLOYEE PERFORMANCE 0) +16.1% Se es Ss Total Employee Yearly Gross Salary Value Appraisal engagement % & Ss eS) ~ Ro RS S e ow PO ss X
Slide 26: CONFIDENTIAL
» » » » » » CONFIDENTIAL
Slide 27: Appendix — Same store
Appendix — Same store
Slide 28: Same store property operating revenue by country — 2020 vs 2019
Same store property operating revenue by country — 2020 vs 2019 [ sturcaro | In € millions At actual exchange rate Comments 12020. H12019 % var. CER % var. % vat. CER Increasing revenue in the three largest markets, driven by higher in- The Netherlands 4.9% 73 26.0 50% 50% place rent and combined wi
Slide 29: Same store average occupancy by country — 2020 vs 2019
Same store average occupancy by country — 2020 vs 2019 [ sturcaro | Q2 2020 Q2 2019 Mai H1 2020 H1 2019 elie The Netherlands 89.1% 874% 1.7pp 88.4% 874% 1.0pp France 87.0% 86.9% O.1pp 87.1% 86.6% O.6pp Sweden 30.7% 899% O.8pp 90.6% 89.5% 1.1pp UK 85.3% 865% -1.2pp 85.9% 86.0% O.0pp Belgium 87.5% 85.
Slide 30: Legal Disclaimer
Legal Disclaimer This release contains “forward-looking statements”. These statements are based on the current expectations and views of future events and developments of the management of Shurgard and are naturally subject to uncertainty and changes in circumstances. This release contains “forward-
Slide 31: Thank you for your attention!
Thank you for your attention!
Shurgard Self Storage — H1 2020 Earnings Presentation on 6ix