Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — FY2024 Earnings Presentation
29 slides from Shurgard Self Storage's earnings presentation, Feb 28, 2025
Slide 1: Full Year 2024 Results
February 28, 2025 FULL YEAR 2024 RESULTS JANUARY 1, 2024 TO DECEMBER 31, 2024
Slide 2: Highlights: YTD December 2024 Results
HIGHLIGHTS: YTD DECEMBER 2024 RESULTS(1) • All store revenues grew at an accelerated pace in the last quarter of the year, delivering 19.3% growth in Q4 2024 versus a full year revenue growth of 13.0% in 2024, reaching €406.7 million. This performance has been driven largely by our portfolio expansi
Slide 3: Continuing the Positive Trends of Previous Quarters
CONTINUING THE POSITIVE TRENDS OF PREVIOUS QUARTERS Varian ces calcu lated o n d ata at co n s tan t ex ch an g e rate Changing same store pool 12% 100% 90% 10% 9.2% 9.0% 8.8% 8.9% 80% 8.0% 8.1% 8% 7.4% 70% 6.3% 6.2% 60% 6% 5.2% 5.2% 5.1% 4.9% 4.2% 50% 4.1% 4.0% 4% 40% 2% 30% 20% 0% 10% -2% 0% 1Q21
Slide 4: Highlights: YTD December 2024 Results
HIGHLIGHTS: YTD DECEMBER 2024 RESULTS(1) • 12.2% growth in all store net operating income (NOI); • +0.4pp same store NOI margin improvement (standing at 67.8%) against the backdrop of significant cost pressure, reflecting the strength of our digitalization initiatives; in the UK the margin improveme
Slide 5: Highlights: YTD December 2024 Results
HIGHLIGHTS: YTD DECEMBER 2024 RESULTS • Significant new capacity from 2024 to 2026 representing 30% (c. 416,700 sqm or c. €1,212 million of direct project cost) of our 2023 net rentable sqm either developed, under construction or signed; • Expect to deliver an additional NOI of c. €100 million per y
Slide 6: Largest Sqm Expansion in the Industry
LARGEST SQM EXPANSION IN THE INDUSTRY In thousands sqm 17.0% 18% 240 236.7 16% 220 200 14% 180 12% 160 10% 140 7.6% 120 8% 100 5.4% 4.6% 105.5 6% 4.7% 80 4.0% 3.4% 4% 60 74.4 65.4 64.6 55.3 2% 40 47.1 20 0% A 2020 A 2021 A 2022 A 2023 A 2024 F 2025 F 2026 Sqm total Pipeline as % of 2023 sqm A = Actu
Slide 7: Strong Balance Sheet
STRONG BALANCE SHEET • First European self-storage company with a strong investment grade rating (BBB+, stable outlook) from S&P; • Successful inaugural €500mm Eurobond issuance maturing on October 22, 2034 with a fixed coupon of 3.625% securing long term financing; • Optional scrip dividend: in Sep
Slide 8: Highlights: Q4 2024 Results
HIGHLIGHTS: Q4 2024 RESULTS • 19.3% revenue growth, driven by growth of +47.3% and +43.7% in the UK and Germany, respectively, as well as a double-digit growth in the Netherlands; • 17.8% growth in all store net operating income (NOI); • +0.6pp same store NOI margin improvement (standing at 70.8%) o
Slide 9: Acquisition of Lok'nStore on August 1, 2024
ACQUISITION OF LOK’NSTORE ON AUGUST 1, 2024 • Doubles Shurgard’s presence in the UK and accelerates Shurgard’s growth strategy with the acquisition of 28 stores located in London, South-East and greater Manchester regions; • Operational integration completed after day 2 of the acquisition; • On trac
Slide 10: 2025 Outlook (at CER)
2025 OUTLOOK (AT CER) 2025 Outlook (at CER) All store revenue and NOI growth c. 11% Improvement of Underlying EBITDA margin +0.5pp Adj. EPRA Earnings effective tax rate c. 18.5% Net interest expenses c. €50 million Sqm of network expansion, investing c. 90,000sqm, c. €200 million Dividend €1.17 per
Slide 11: Medium-Term Guidance (at CER)
MEDIUM-TERM GUIDANCE (AT CER) Medium-term guidance (at CER) All store revenue and NOI growth c. 8% double-digit growth p.a. Improvement of Underlying EBITDA except in 2026 (mid-single digit growth due to the impact of 2025-2026 openings) Effective tax rate (on Adj. EPRA before tax) c. 19% c. 10% in
Slide 12: All Store Income Statement
ALL STORE INCOME STATEMENT In € millions QT D D ec YT D D ec (at actual exchange rate) 2024 2023 % var. % var.CER 2024 2023 % var. % var.CER REAL ESTATE OPERATING REVENUE1 111.3 92.8 19.9% 19.0% 406.5 357.9 13.6% 12.9% Real estate operating expenses (35.4) (28.6) 23.7% 22.5% (138.9) (120.5) 15.3% 14
Slide 13: Same Store Property Operating Revenue per Market
SAME STORE PROPERTY OPERATING REVENUE PER MARKET In € millions QTD Dec YTD Dec (at actual exchange rate) 2024 2023 % var. % var.CER 2024 2023 % var. % var.CER France 21.2 20.4 4.2% 4.2% 82.3 80.0 2.8% 2.8% The Netherlands 19.6 18.2 7.9% 7.9% 75.5 70.3 7.3% 7.3% UK 18.7 17.5 7.4% 3.1% 72.5 67.4 7.5%
Slide 14: Balance Sheet
BALANCE SHEET 5.4 years €1,490m Weighted average debt debt 3.16% maturity 500 (USPP, credit facility & Weighted average 390 rated EUR bond) interest rate (including 300 No encumbered assets new rated Bond) 130 110 60 First European self-storage 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 opera
Slide 15: Conclusion
CONCLUSION • Operational execution excellence • Revenue growth across all markets • Leading operational platform • 2024 growth acceleration • Successful integration of Lok’nStore (UK) • Germany: successful acquisitions of Prime and Pickens • Future platform expansion secured with 2024-26 pipeline •
Slide 16: Appendices
APPENDICES
Slide 17: Key Patterns: Same Across Countries
KEY PATTERNS: SAME ACROSS COUNTRIES What is self storage Why do they need self storage? Where are they? for our customers? “My attic or basement in a remote location” • Life events (birth, death, divorce, mobility) Close property catchment areas • Short distance catchment combined with • 10min drive
Slide 18: Attractive & Resilient Business Model
ATTRACTIVE & RESILIENT BUSINESS MODEL Low break-even occupancy and high margins Economics of a typical Shurgard store Track record of strong and resilient cash flow (€ ‘000) generation 1,200 Revenue 1. Resilient revenue 900 - Granular and diversified customer base: ~700 customers per store1 600 Prof
Slide 19: Store Portfolio Segmentation
STORE PORTFOLIO SEGMENTATION STORE PORTFOLIO SEGMENTATION # OF STORES Stores developed by Shurgard in operation for more 2019 2020 2021 2022 2023 2024 than three full years as of January, 1st Same-stores Stores acquired by Shurgard in operation for more than one full year as of January, 1st 217
Slide 20: Same Store Average Occupancy by Country
SAME STORE AVERAGE OCCUPANCY BY COUNTRY QTD Dec YTD Dec 2024 2023 Diff. 2024 2023 Diff. France 89.5% 88.8% 0.8pp 89.2% 88.9% 0.4pp The Netherlands 91.0% 91.9% -0.9pp 91.0% 91.4% -0.4pp UK 87.7% 86.9% 0.9pp 87.3% 87.6% -0.2pp Sweden 91.4% 90.7% 0.7pp 90.8% 91.1% -0.3pp Germany 87.7% 90.1% -2.3pp 88.5
Slide 21: Same Store Property Average In-Place Rent by Country
SAME STORE PROPERTY AVERAGE IN-PLACE RENT BY COUNTRY In € per sqm / year QTD Dec YTD Dec 2024 2023 % var. % var. CER 2024 2023 % var. % var. CER France 283.6 272.9 3.9% 3.9% 276.0 267.9 3.0% 3.0% The Netherlands 259.5 239.6 8.3% 8.3% 250.0 232.3 7.6% 7.6% UK 410.9 379.1 8.4% 4.1% 396.8 363.6 9.1% 6.
Slide 22: All Store Revenue Growth: 2019 to 2024 Actuals
ALL STORE REVENUE GROWTH: 2019 TO 2024 ACTUALS All Store : quarterly yoy growth 25% All Store 14% 20% 12% 10% 15% 8% 10% 6% 4% 5% 2% 0% 0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2018 2019 2020 2021 2022 2023 2024 All St
Slide 23: Same Store Revenue Growth: 2019 to 2024 Actuals
SAME STORE REVENUE GROWTH: 2019 TO 2024 ACTUALS Same Store Same Store : quarterly yoy growth 9% 10% 8% 9% 8% 7% 7% 6% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2018 2019 2020 2021 202
Slide 24: Market Consolidation: Our Targeted Approach
MARKET CONSOLIDATION: OUR TARGETED APPROACH LEVER 1 LEVER 2 LEVER 3 Note: All data presented are 2015 – Present Unique & Disciplined 2023 2024 …targeting a fragmented market with multiple opportunities M&A Strategy… achievements achievements FOCUS AREA 106 “ BOLT ON” Large & ACQUIRED STORES 5 STORES
Slide 25: Achieving a Lok'nStore NOI Yield of 8% via Shurgard
ACHIEVING A LOK’NSTORE NOI YIELD OF 8% VIA SHURGARD Revenue increase (1) Proven growth in Shurgard UK Occupancy c. 67% 90% in 2 years All Stores as of August 1 440 owned Rate (CAGR to 396.8 stabilization) 2% in 5-6 years 390 CAGR: +10% 366.1 336.6 340 in 2 years 297.6 Occupancy 0% 90% post store ope
Slide 26: Sustainability at the Core of Our Buildings Lifecycle
SUSTAINABILITY AT THE CORE OF OUR BUILDINGS LIFECYCLE Other Investments ISO 14001 aligned EMS, Building Management Systems (BMS): sensors, computers, … Customer safety Lobbies protection Access control Improved CCTV Access via App Reduce electricity and gas consumption LED lighting Heating optimizat
Slide 27: NTA, LTV, Net Debt/EBITDA, ICR Evolution Since IPO
NTA, LTV, NET DEBT/ EBITDA, ICR EVOLUTION SINCE IPO (OCT 2018) At actual exchange rate EPRA NET TANGIBLE ASSETS (NTA) LOAN-TO-VALUE (LTV) In € millions 23.3% 4,782 4,308 18.1% 17.4% 18.0% 16.9% 3,639 3,113 13.9% 13.0% 2,260 2,518 2,147 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023
Slide 28: Property Valuation
PROPERTY VALUATION(1) (in € ‘000) 7,000 6,179 6,000 5,262 4,910 5,000 4,598 4,353 4,147 4,000 3,758 3,349 3,102 2,910 3,000 2,558 2,570 2,710 2,000 1,000 0 Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 (1) Cushman & Wakefield val
Slide 29: Legal Disclaimer
LEGAL DISCLAIMER All statements in this presentation, other than statements of historical facts, are 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 a