Shurgard Self Storage Limited · EURONEXT:SHUR

Shurgard Self Storage — FY2018 Earnings Presentation

19 slides from Shurgard Self Storage's earnings presentation, Feb 26, 2019

  1. Slide 1: Results for the Year ended 31 December 2018

    Greenwich Results for the Year ended 31 December 2018 February 26, 2019

  2. Slide 2: Key accomplishments 2018

    Key accomplishments 2018 Growth of our portfolio footprint in 2018 by 5%  Acquisition of 9 properties – 5 in Sweden, 4 in London  2 new openings in Stockholm and Berlin  6 extensions and redevelopments in the Netherlands, France and Germany Building up our pipeline for the coming years  3 openin

  3. Slide 3: Key accomplishments 2018

    Key accomplishments 2018 Strong financial performance in line with our 2018 guidance  Property operating revenue for the year 2.7% (3.9% at CER)  Same store property operating revenue growth 1.2% at CER  Income from property (NOI) 4.1% (5.5% at CER)  Same store NOI margin 63.7% up 1.3pp at CER 

  4. Slide 4: Key accomplishments 2018

    Key accomplishments 2018 Robust financing  IPO gross proceeds of €575 million  New revolving credit facility for €250 million – maturity until 2023  Long term funding with no immediate maturities (first maturity due in 2021)  LTV: 13.9% (down from 25.3% in 2017) as of 31 December 2018  Net debt

  5. Slide 5: Strong financial performance across all metrics over 2017-2018

    Strong financial performance across all metrics over 2017-2018 At actual exchange rate Comments Amounts in €m for the year ended 31-Dec 2017 2018 % var. % var.CER Property operating revenue 238.3 244.7 2.7% 3.9% 1 1 +2.7% (+3.9% at CER) 2017-18 revenue Other revenue (1) 0.3 0.1 n/m growth mainly dri

  6. Slide 6: Current operating results – Top line growth and scalability

    Current operating results – Top line growth and scalability At constant exchange rate Amounts in € 000' for the year ended 31-Dec All stores Same Stores Non Same Stores (except In place rent and RevPAM) 2017 2018 % var. 2017 2018 % var. 2017 2018 % var. Property operating revenue 235,488 244,695 3.9

  7. Slide 7: 2018 revenue evolution – levers of growth

    2018 revenue evolution – 3 levers of growth 2017 – 2018 revenue(1) bridge (€m) 2017-18 revenue growth (constant FX rate): +3.9% 2017-18 revenue growth: +2.7%  Mostly linked to SEK and GBP 3.3 (2.8)  2017-18 same-store revenue growth (constant FX rate): 244.7 +1.2% 3.2 2.7  Performance uplift in 2

  8. Slide 8: Real Estate Operating Expenses – Scalability

    Real Estate Operating Expenses – Scalability At constant exchange rate unless otherwise specified All Stores (232) Amounts in € 000' for the year ended 31-Dec 2017 2018 % var. Payroll expense 34,607 35,452 2.4% Real estate and other taxes 11,856 11,756 -0.8% Repairs and maintenance 6,975 7,040 0.9%

  9. Slide 9: 2018 NOI evolution – Top line growth and scalability

    2018 NOI evolution – Top line growth and scalability 2017 – 2018 NOI(1) bridge (€m) 2017-18 NOI margin improvement: +0.8pp 2017-18 NOI growth (constant FX rate): +5.4% 2017-18 NOI growth: +4.1%  Mostly linked to SEK and GBP 62.8% NOI 62.0% margin 1.8 (1.9) 1.6 153.7 4.5 147.7  Ramp-up phase  Opex

  10. Slide 10: Income tax expense – Towards stabilization

    Income tax expense – Towards stabilization Amounts in €m At constant exchange rate Current Tax Expense Deferred Tax Expense FX Impact 0.7 24.5 16.9 19.4 14.9 2017 2018 Effective tax rate 13.1% 16.4% Guidance of 18 to 20% of adjusted EPRA earnings from 2019 Source: Company 10 CONFIDENTIAL

  11. Slide 11: EBITDA to adjusted EPRA earnings

    EBITDA to adjusted EPRA earnings At constant exchange rate Amounts in € 000' for the year ended 31-Dec 2017 2018 % var. EBITDA 133,393 136,058 2.0% Net attributable profit adjustments Depreciation & amortization (1,527) (1,679) 10.0% Finance costs (18,141) (20,967) 15.6% Current tax (14,941) (19,421

  12. Slide 12: Balance sheet – Solid and ready for growth

    Balance sheet – Solid and ready for growth At actual exchange rate Comments Amounts in € 000' as of 31-Dec 2017 2018 1 Increased by 11.2% mainly due to the 9 Investment property 2,300,692 2,559,319 1 acquisitions and 2 developments performed in Other 14,721 13,359 2018, combined with an appreciation

  13. Slide 13: Cash Flow statement – Pick up in investment

    Cash Flow statement – Pick up in investment At actual exchange rate Comments Amounts in €m for the year ended 31-Dec 2017 2018 % var. EBITDA 135.3 136.1 0.6% Other / working capital (0.9) 2.2 -360.2% Taxes (15.2) (17.7) 16.2% TOTAL CASH FROM OPERATIONS 119.2 120.6 1.2% 1 Significant increase in inve

  14. Slide 14: Development pipeline – Well positioned to achieve our guidance

    Development pipeline – Well positioned to achieve our guidance Amounts in €m At management exchange rate 2019 Date of Net sqm Direct Project cost # properties opening (000's) Proforma (1) Total 2019 3 17.5 32.0 Berlin - Oberschoneweide Q3 2019 5.7 7.4 Utrecht - De Wetering Zuid Q4 2019 5.9 9.5 Londo

  15. Slide 15: Bolt-on acquisitions – Very active year

    Bolt-on acquisitions – Very active year Jan-2015 Jul-2015 Apr-2016 Feb-2017 Jun- 2018 Oct-2018 Nov-2018 5 stores (Secur 21 stores(1) 1 store 1 store 5 stores 1 store 3 stores Self-Storage (City Box in London in Paris in Sweden in London(2) in London for €65m) for €115m) (for €14m(3)) (for €14m) (for

  16. Slide 16: Proposed dividend pay-out 2018

    Proposed dividend pay-out 2018 At actual exchange rate Amounts in €m 25% of 80% of FY 2018 adjusted except for dividend per share and IPO share price EPRA earnings # shares (period end) 88,815,910 Adj. EPRA earnings 99.3 Dividend pay-out 19.9 Dividend per share 0.22 IPO offering share price 23.0 Div

  17. Slide 17: Company medium-term guidance

    Company medium-term guidance Revenue growth  All store growth of 4-6% in the medium term  Same-store growth of 1.5-2.5% p.a. in the medium-term NOI margin  At least 2 percentage points same-store NOI margin improvement in the medium-term Occupancy  An average c. 92% stabilized occupancy in the m

  18. Slide 18: Disclaimer

    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. Forward-looking statements include st

  19. Slide 19: Thank you for your attention!

    Thank you for your attention!

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