Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — FY2023 Earnings Presentation
26 slides from Shurgard Self Storage's earnings presentation, Feb 29, 2024
Slide 1: Full Year 2023 Results
February 29, 2024 FULL YEAR 2023 RESULTS JANUARY 1, 2023 TO DECEMBER 31, 2023
Slide 2: Highlights: Strong Full Year Results
HIGHLIGHTS: STRONG FULL YEAR RESULTS(1) • 9.0% property operating revenue increase, supported by double digit growth in Germany, the Netherlands and the UK; • 9.9% income from property (NOI) growth; • 66.3% NOI margin, an increase of 0.6pp compared to the prior year; • 5.7% same store property opera
Slide 3: Highlights: Robust Balance Sheet
HIGHLIGHTS: ROBUST BALANCE SHEET • Total dividend for the year of €1.17 per share (including €0.59 per share for H2 2023); • EPRA net tangible assets (NTA) per share: €44.07, an increase of 8.4% vs. December 31, 2022; • Exit capitalization rate stable at 5.22% (1) vs. 5.19% in December 2022; • Succe
Slide 4: Highlights: Solid Expansion Pipeline
HIGHLIGHTS: SOLID EXPANSION PIPELINE • Delivering new capacity from 2023 to 2026 representing c. 231,400 sqm (17.2% of our net rentable sqm); • Total investment of c. €630.1 million of direct project cost; • Expected yield of c. 8-9%; • Two portfolio acquisitions in Germany for total of €229.4 milli
Slide 5: Largest sqm Expansion p.a. in the Industry
LARGEST SQM EXPANSION P.A. IN THE INDUSTRY 120 7% 6% 100 5% 90.0 90.0 90.0 80 4% Sqm total Pipeline as % of prior year FBO 3% 60 65.4 64.6 55.3 2% 47.1 40 1% 20 0% A 2020 A 2021 A 2022 A 2023 G 2024 G 2025 G 2026 A = Actuals G = Guidance FUELING OUR GROWTH WITH 90,000 SQM P.A. 5
Slide 6: Highlights: Solid Q4 Results
HIGHLIGHTS: SOLID Q4 RESULTS • 7.7% property operating revenue growth, supported by double digit growth in Germany and the Netherlands; • 9.4% income from property (NOI) growth; • 4.2% same store property operating revenue growth; • Stable same store average occupancy rate at 90.3% versus Q4-2022; •
Slide 7: 2024 Outlook
2024 OUTLOOK • We expect to deliver a c. 7.5% total revenue growth for the year 2024; • In 2024 we plan to have a stable NOI margin, after being able to gain 2.7pp over three years, well ahead of our guidance; • In 2024, we plan to add c. 90,000 sqm via redevelopments, new developments and acquisiti
Slide 8: Income Statement
INCOME STATEMENT Q4 YTD Dec 23 2023 2022 % v ar. % v ar.C E R 2023 2022 % v ar. % v ar.C E R REAL ESTATE OPERATING REVENUE1 90.7 85.1 6.7% 8.3% 357.9 335.3 6.8% 8.3% Real estate operating expenses (27.9) (26.5) 5.3% 6.6% (120.5) (113.8) 5.8% 7.2% NET INCOME FROM REAL ESTATE OPERATIONS 62.8 58.6 7.3%
Slide 9: Same Store Property Operating Revenue
SAME STORE PROPERTY OPERATING REVENUE In € millions Q4 YTD Dec 23 (at actual exchange rate) 2023 2022 % var. % var.CER 2023 2022 % var. % var.CER France 19.9 19.5 2.1% 2.1% 78.2 75.3 3.9% 3.9% The Netherlands 18.4 17.2 7.1% 7.1% 71.4 65.8 8.4% 8.4% UK 16.7 15.6 6.6% 6.2% 64.3 61.2 5.1% 7.2% Sweden 1
Slide 10: YTD Dec 2023 NOI Evolution
YTD DEC 2023 NOI EVOLUTION YTD Dec 2022 ⎯ YTD Dec 2023 NOI1 bridge (€m) NOI margin improvement: +0.6pp NOI growth (at CER): +9.9% NOI growth: +8.2% Linked to SEK and GBP 6.7 (3.4) 237.2 14.7 219.2 Ramp-up phase of our non same store portfolio Addition of 9 properties versus Opex under contro
Slide 11: Cash Flow
CASH FLOW In € millions YTD Dec 2023 YTD Dec 2022 % var At actual exchange rate Cash: beginning balance 87.3 219.2 -60.1% TOTAL CASH FROM OPERATIONS 187.4 186.5 0.4% €258.1m Acquisitions Developments, redevelopments and other -68.2 -97.4 -76.5 -94.2 -10.9% 3.5% Net Cash end of December 2023 Other ca
Slide 12: Balance Sheet
BALANCE SHEET In € millions At actual exchange rate Dec 2023 Dec 2022 % var. €800m 2.36% 4.4 years Investment property 5,035.8 4,523.8 100% USPP indebtness Weighted average Weighted average Other assets (1) 40.3 30.0 No encumbered assets interest rate maturity Trade and other receivables 19.7 18.7 F
Slide 13: Capital Raise – €300 Million ABB Deployment
CAPITAL RAISE – €300 MILLION ABB DEPLOYMENT • Disciplined execution of our growth strategy, deploying in fast and efficient succession the €300 million raised in November 2023; • Capital Raise is earnings accretive after being €300m €97.6m €131.8m deployed; total costs of acquisition total costs of
Slide 14: German Growth Strategy: Double Our Size
GERMAN GROWTH STRATEGY: DOUBLE OUR SIZE From 25 stores (or 123,000 sqm) mid-2023 to 3 stores 46 stores (or 253,000 sqm) by end 2026 to 6 stores Growth Acceleration in Germany 6 stores 3 stores to 11 stores • c. 80% in “Big Seven” cities, with strong demographics and urban to 4 stores density Out of
Slide 15: Delivering the Digital Customer Experience
DELIVERING THE DIGITAL CUSTOMER EXPERIENCE Finding a Space Lease Execution Account Management Daily Property Use Website Digital Rental Comprehensive Digital Property Access1 Agreement Mobile App Leading adoption by customers High customer utilization Enabling customer access and Industry-leading pl
Slide 16: Our Successful ESG Strategy
OUR SUCCESSFUL ESG STRATEGY Our Commitments ESG Priorities Strong Ratings Invest to reduce our carbon footprint 91/100 Net Zero Carbon by 2030 Green certified buildings, LED, heat pumps, solar panels, (operational NZC) Building Management System Strong ESG governance 10.8 Low Risk ISO-aligned EMS, E
Slide 17: Shurgard Is a Unique Platform with Significant Runway
SHURGARD IS A UNIQUE PLATFORM WITH SIGNIFICANT RUNWAY • Another solid • Strong expansion pipeline • Robust balance sheet, performance representing 231,400 sqm disciplined capital or 17.2% of our net allocation & returns • Proven benefits from rentable sqm geographic spread • Shurgard is a UK REIT •
Slide 18: Appendices
APPENDICES
Slide 19: Same Store Average Occupancy by Country
SAME STORE AVERAGE OCCUPANCY BY COUNTRY Q4 YTD Dec 2023 2022 Diff. 2023 2022 Diff. France 88.9% 89.4% -0.5pp 89.3% 89.4% -0.1pp The Netherlands 92.0% 91.2% 0.7pp 91.7% 90.7% 0.9pp UK 86.8% 88.1% -1.3pp 87.5% 88.3% -0.8pp Sweden 90.7% 91.1% -0.4pp 91.1% 91.7% -0.6pp Germany 90.7% 91.4% -0.6pp 90.9% 9
Slide 20: Same Store Property Average In-Place Rent by Country
SAME STORE PROPERTY AVERAGE IN-PLACE RENT BY COUNTRY In € per sqm/year Q4 YT D D ec 2023 2022 % var. % var. CER 2023 2022 % var. % var. CER France 277.2 270.4 2.5% 2.5% 271.5 260.1 4.4% 4.4% The Netherlands 238.7 224.3 6.4% 6.4% 231.7 214.6 8.0% 8.0% UK 381.7 353.5 8.0% 7.6% 366.1 342.3 6.9% 9.0% Sw
Slide 21: NTA, LTV, Net Debt/EBITDA, ICR Evolution Since IPO
NTA, LTV, NET DEBT/ EBITDA, ICR EVOLUTION SINCE IPO (OCT 2018) At actual exchange rate LOAN -TO-VALUE (LTV) EPRA NET TANGIBLE ASSETS (NTA) In € millions 18.1% 17.4% 18.0% 4,307.8 16.9% 3,638.9 13.9% 13.0% 3,112.6 2,260.4 2,517.9 2,146.7 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 +10
Slide 22: 3 Levers to Accelerate Our Portfolio Expansion
3 LEVERS TO ACCELERATE OUR PORTFOLIO EXPANSION LEVER 1 LEVER 2 LEVER 3 Re-developments New Developments Market Consolidation (expand existing buildings) (purpose built and conversion) (bolt-on acquisitions) Increase our footprint by 90,000 sqm p.a.: • Invest c.€200 million p.a. • Doubling our footpr
Slide 23: Expansion Pipeline 2023-2026 (17.2% of Rentable sqm)
EXPANSION PIPELINE 2023-2026 (17.2% OF RENTABLE SQM) In € millions Number of Direct project cost At closing rate Dec 2023 Property Region Country Project status 1 Completion date Net sqm (000's) properties /Acquisition cost (1) Scheduled to open in 2023 16 64.6 143.5 Major redevelopments Unterfoehri
Slide 24: Expansion Pipeline 2023-2026 (17.2% of Rentable sqm)
EXPANSION PIPELINE 2023-2026 (17.2% OF RENTABLE SQM) In € millions Number of Direct project cost At closing rate Dec 2023 Property Region Country Project status 1 Completion date Net sqm (000's) properties /Acquisition cost (1) Scheduled to open in 2025 14 78.3 230.0 Major redevelopments Porte de Cl
Slide 25: Medium Term Guidance
MEDIUM TERM GUIDANCE • We are targeting c. 6% growth p.a. for all store revenue; • We plan a 0.2pp NOI margin growth per year for all stores; • We plan to add c. 90,000 sqm per year via redevelopments, new developments and acquisitions for around €200 million total investment per annum; • We maintai
Slide 26: 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