Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — H1 2022 Earnings Presentation
32 slides from Shurgard Self Storage's earnings presentation, Aug 19, 2022
Slide 1: 2022 Half Year Results
August 19, 2022 2022 HALF YEAR RESULTS January 1, 2022 to June 30, 2022
Slide 2: Highlights: Strong H1 Results
HIGHLIGHTS STRONG H1 RESULTS (at CER) • 12.3% property operating revenue growth; • 16.0% income from property (NOI) growth; • 9.1% same store property operating revenue growth; • 90.3% same store average occupancy rate (0.7pp growth vs. same period last year); • 64.6% same store NOI margin, a strong
Slide 3: Highlights: Portfolio Growth and Pipeline
HIGHLIGHTS Continued growth of our portfolio and building up our pipeline for the coming two years delivery: 7% (or 91,622 sqm) of our net rentable sqm (from 6% in Q1 2022) has been acquired, developed, under construction or signed. 2022 • One opening finalized in Q1 2022 (5,500sqm) for €10.3 millio
Slide 4: Highlights: Very Robust Balance Sheet
HIGHLIGHTS VERY ROBUST BALANCE SHEET WITH LONG TERM MATURITIES • Cash position: €175.8 million as of June 30, 2022; • Undrawn revolving credit facility of €250 million – maturity extended by two years to 2025; • Uncommitted €250 million Shelf Note Facility for a three year-period; • €800 million Sen
Slide 5: Highlights: Excellent Q2 Results
HIGHLIGHTS EXCELLENT Q2 RESULTS (at CER) • 12.5% property operating revenue growth; • 15.9% income from property (NOI) growth; • 9.2% same store property operating revenue growth; • 90.5% same store average occupancy rate (0.5pp growth vs. same period last year); • 69.8% same store NOI margin, a str
Slide 6: Highlights: 2022 Outlook
HIGHLIGHTS 2022 OUTLOOK • Based on our strong H1-2022 results, the guidance of our all store revenue growth above 7% for 2022 versus 2021 will be exceeded and is raised to 10%-12% for the year 2022; • We plan to add c. 49,000 sqm via redevelopment, new developments and acquisitions; • Our average ef
Slide 7: Financial Performance H1 2022
FINANCIAL PERFORMANCE H1 2022 COMMENTS In € millions (except Adj. Epra earnings per share) At actual exchange rate Q2 2022 Q2 2021 % var. % var.CER H1 2022 H1 2021 % var. % var.CER +12.1% year-on-year property operating REAL ESTATE OPERATING REVENUE 81.5 72.8 11.9% 12.2% 161.5 144.1 12.1% 12.1% reve
Slide 8: Current Operating Results: Top Line Growth and Scalability
CURRENT OPERATING RESULTS ⎯ TOP LINE GROWTH AND SCALABILITY All store Same store Non-same store In € millions (except in-place rent and revPAM) At constant exchange rate H1 2022 H1 2021 % VAR H1 2022 H1 2021 % VAR H1 2022 H1 2021 % VAR Property operating revenue (1) 161.4 143.8 12.3% 153.1 140.4 9.1
Slide 9: H1 2022 NOI Evolution: Top Line Growth and Scalability
H1 2022 NOI EVOLUTION ⎯ TOP LINE GROWTH AND SCALABILITY H1 2021 ⎯ H1 2022 NOI(1) bridge (€m) NOI margin improvement: +2.0pp NOI growth (at CER): +16.0% NOI growth: +15.8% Linked to SEK largely countered by GBP (0.1) 101.7 1.4 0.8 11.8 Ramp-up phase 87.8 Acquisition of six stores in September -
Slide 10: Cash Flow Statement
CASH FLOW STATEMENT In € millions At actual exchange rate H1 2022 H1 2021 % var. EBITDA 91.5 79.1 15.6% COMMENTS Other / working capital 7.1 21.2 -66.5% Taxes (17.1) (14.9) 15.1% Increase of operating cash flow (+15.6%) has 1 been offset by the evolution of our working TOTAL CASH FROM OPERATIONS 81.
Slide 11: Balance Sheet: Solid and Supporting for Growth
BALANCE SHEET ⎯ SOLID AND SUPPORTING FOR GROWTH In € millions At actual exchange rate Jun 2022 Dec 2021 % var. Investment property 4,249.6 3,847.1 COMMENTS 1 Other assets (1) 36.2 19.9 Increase mainly due favorable fair value revaluation of investment property (positive Trade and other receivables 2
Slide 12: 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 3,476.8 3,112.6 17.4% 18.1% 16.9% 16.8% 2,517.9 13.9% 2,260.4 2,146.7 H1 2022 2021 2020 2019 2018 H1 2022 2021 2020 2019 2018 +62.0% versus 2018 +2.
Slide 13: Portfolio Expansion: Strong Short-Term Pipeline
PORTFOLIO EXPANSION ⎯ SIGNIFICANT AND STRONG SHORT-TERM PIPELINE In € millions Number of Direct project cost At closing rate June 2022 Region Country Net sqm (000's) properties /Acquisition cost (1) Scheduled to open in 2022 9 33.3 64.2 Major redevelopments Munich Germany 1 2.3 2.3 Randstad Netherla
Slide 14: Invest in Shurgard
INVEST IN SHURGARD UNIQUE RUNWAY STRONG H1 2022 EXPANSION ACTIVE IN M&A ESG ROBUST PLATFORM • Underdeveloped PERFOMANCE PORTFOLIO • Since 2015, 53 • GRESB 5 Star BALANCE SHEET • Significant market • 12.3% Property • 23 projects stores acquired for and Sector Leader • Long term geographical • Low awa
Slide 15: Appendix: Financial Information
APPENDIX FINANCIAL INFORMATION
Slide 16: H1 2022 Revenue Evolution: Three Levers of Growth
H1 2022 REVENUE EVOLUTION ⎯ THREE LEVERS OF GROWTH H1 2021 ⎯ H1 2022 revenue(1) bridge (€m) Revenue growth (at CER): +12.3% Revenue growth: +12.2% Linked to SEK largely countered by GBP 2.3 (0.0) 161.4 2.6 12.7 143.8 Ramp-up phase Acquisition of six stores in September - October 2021 Same st
Slide 17: Same Store Property Operating Revenue
SAME STORE PROPERTY OPERATING REVENUE In € millions At actual exchange rate COMMENTS Same store revenue grew by 9.1% compared to the prior year, with the second quarter growth (9.2%) accelerating versus the first (9.0%). This revenue growth is fueled by an average in- Q2 2022 Q2 2021 % var. % var. C
Slide 18: Same Store Average Occupancy by Country
SAME STORE AVERAGE OCCUPANCY BY COUNTRY Q2 2022 Q2 2021 Diff. H1 2022 H1 2021 Diff. France 89.4% 88.6% 0.7pp 89.2% 88.4% 0.8pp The Netherlands 90.4% 89.6% 0.8pp 90.2% 89.7% 0.5pp UK 88.7% 89.1% -0.4pp 88.5% 88.1% 0.4pp Sweden 92.5% 92.9% -0.3pp 91.9% 92.0% -0.1pp Germany 90.9% 89.1% 1.8pp 90.8% 88.2
Slide 19: Same Store Average In-Place Rent by Country
SAME STORE AVERAGE IN-PLACE RENT BY COUNTRY At actual exchange rate Q2 2022 Q2 2021 % var. % var. CER H1 2022 H1 2021 % var. % var. CER France 255.6 236.2 8.2% 8.2% 255.5 237.8 7.5% 7.5% The Netherlands 212.0 196.5 7.9% 7.9% 210.1 195.9 7.3% 7.3% UK 328.0 286.4 14.5% 12.6% 329.0 284.0 15.8% 12.4% Sw
Slide 20: All Store Property Operating Revenue
ALL STORE PROPERTY OPERATING REVENUE In € millions At actual exchange rate COMMENTS Q2 2022 Q2 2021 % var. % var. CER H1 2022 H1 2021 % var. % var. CER France 19.4 17.7 9.3% 9.3% 38.6 35.5 8.9% 8.9% Compared to the same period prior year, our all store property operating revenue grew by 12.3% in the
Slide 21: Appendix: General Information
APPENDIX GENERAL INFORMATION
Slide 22: Clear Leadership in European Self-Storage Industry
CLEAR LEADERSHIP IN EUROPEAN SELF-STORAGE INDUSTRY Number of stores Sqm Geographical presence (million) 3 4 5 6 1 1 1 2 2 1 2 1 Shurgard 257 11 L 1.3 X2.0 Safestore 130 29 L X1.4 0.6 965 2 Homebox 158 0.6 Big Yellow 81 24 L 0.6 SSG 48 49 L 0.1 Bluespace 68 0.3 Access 61 0.3 MyPlace 58 0.2 24 Storage
Slide 23: Double the Investment for Growth as of 2024
DOUBLE THE INVESTMENT FOR GROWTH AS OF 2024 LEVER 1 LEVER 2 LEVER 3 Redevelopments New developments Market consolidation (expand existing buildings) (purpose built and conversion) (bolt-on acquisitions) Invest €120 million p.a. to: Invest €50 million p.a. to: • Double our footprint in target markets
Slide 24: Impact of Inflation
IMPACT OF INFLATION • Revenue: • Demand: unbalanced market supply/demand – low competition intensity • Pricing management: c. 10% increase to existing customers every year in a low inflation environment • OPEX: • Costs = c. 35% of our revenues with a run rate of +2% per year • e.g.: 5% of inflation
Slide 25: Great Achievement Within Three Years
GREAT ACHIEVEMENT WITHIN THREE YEARS GRESB MSCI Sustainalytics Global Real Estate Sustainability Benchmark ESG Ratings ESG Risk Ratings Report 2022 2019 2020 2021 2019 2020 2021 60 78 87 26.9 21.7 13.2 100 100 100 Medium Medium Low risk 1 Star 4 Stars 5 Stars risk risk • Multiple improvements implem
Slide 26: Phase One: Zero Carbon Emissions and EPC
ZERO CARBON EMISSIONS AND EPC FOR 100% OF OUR PORTFOLIO 80% A or A+ PHASE ONE 100% of Shurgard’s portfolio As of January 2021, zero carbon has an EPC emissions from: (Energy Perfomance 100% of our electricity Certificate) consumption 60% of our natural gas consumption 83% REDUCTION IN OUR CO2 EM
Slide 27: Phase Two: New ESG Targets in Place
NEW ESG TARGETS IN PLACE PHASE PHASE TWO THREE Operational Material Net Zero Carbon Net Zero Carbon by 2030 by 2040, or sooner Net Zero Carbon strategy and policy is further detailed in our Annual Report 2021 MOVING TO NET ZERO CARBON STRATEGY | 27
Slide 28: Prop-Tech Company: Building and Driving Digital Data
PROP-TECH COMPANY: BUILDING AND DRIVING DIGITAL DATA TECHNOLOGY DRIVEN GROWTH THROUGH CUSTOMER CHOICE | 28
Slide 29: Prop-Tech Company: Successful E-Rental Offer
PROP-TECH COMPANY: SUCCESSFUL E-RENTAL OFFER What is e-rental? Insights Seamless end-to-end digital experience 40,000 e-rental customers at end of June 2022 across all markets Automated rental process, operating 24/7 (6-minute rental time) Up to c. 25% of all move ins Part of a fully centr
Slide 30: Prop-Tech Company: Improve Sustainability and Security
PROP-TECH COMPANY: IMPROVE SUSTAINABILITY AND SECURITY A total of €10 million per year over 2022-2026 or €7/sqm/year Other Investments Customer experience Lobbies protection Access control Improved CCTV Reduce electricity and gas consumption LED technology Heating optimization Solar panels Increase
Slide 31: 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
Slide 32: Thank you for your attention
Thank you for your attention
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