Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — Lok'nStore Group — FY2023 Earnings Presentation
33 slides from Shurgard Self Storage's earnings presentation, 2023
Slide 1: Lok'nStore Group Plc Results for the year ended 31 July 2023
Lok’nStore Group Plc Results for the year ended 31 July 2023 1
Slide 2: Reminder
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Reminder We sold four stores on a sale and manage-back arrangement on 31 January 2022 adding circa £37 million to cash, reinforcing our strong financial footing. • Our Same Store analysis strips out the effect
Slide 3: Bedford – Opened February 2023
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 BEDFORD – Opened February 2023 3
Slide 4: Peterborough – Opened June 2023
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 PETERBOROUGH – Opened June 2023 4
Slide 5: Lok'nStore Results Highlights
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Lok’nStore Results Highlights Year ending 31 July 2023 Same Store • Same Store Self Storage Revenue up 12.1% • Same Store Self Storage Adjusted EBITDA up 4.0% Headline • Group Revenue £27.1 million up 0.9% - NB
Slide 6: Shareholder Highlights
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Shareholder Highlights • Adjusted Net Asset Value per share £9.86 • Up 1.4% over 12 months • Up 7.8% from Jan 2023 • CAD per share 28.4 pence (2022: 38.7 pence) • covers dividend 1.5x • Full Year annual dividen
Slide 7: Excellent Operating Metrics
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Excellent Operating Metrics • Move ins up 4.9% yoy • Price per sq.ft up 6.8% yoy • Closing occupancy in stores over 3 years old 80.6% (2022: 82.9%) • Managed Store recurring fees up 11.9% 7
Slide 8: EBITDA margins remain healthy despite cost increases
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 EBITDA margins remain healthy despite cost increases • Notable cost increases from Energy, Insurance and loan Interest • Energy up 238% (4.3% of operating costs) • Insurance up 157% (1.6% of operating costs) •
Slide 9: Valuation of Trading Stores
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Valuation of Trading Stores • Trading assets valued at £301.9 million • Up 8.2% since July 2022 • Same Store value up by 0.8% • Up 15.6% since January 2023 • 33 bps increase in Exit Yields yoy • 45 bps increase
Slide 10: Self-Storage transactions increasing
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Self-Storage transactions increasing Self Storage Transactions (exec. equity stakes & JV deals) in Europe 1,200.00 1,000.00 800.00 £'s per million 600.00 400.00 200.00 0.00 2019 2020 2021 2022 2023 Institutiona
Slide 11: Strong Balance Sheet
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Strong Balance Sheet • Successful equity issue of c.£20.5 million (gross) • £100 million loan facility runs to April 2026 • Adjusted Total Assets £392.9 million • At 31st July 2023: • Gross Bank Debt £54.4 mill
Slide 12: Low net debt and low leverage – net LTV 3.7%
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Low net debt and low leverage – net LTV 3.7% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 12
Slide 13: Future Growth – driven by Landmark store programme
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Future Growth – driven by Landmark store programme • Two stores opened in FY23 • Two owned and one managed new stores now on site opening in FY24 • Committed capex remaining £29.3 million all from cash • Brombo
Slide 14: Basildon - Opening Autumn 2023
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 BASILDON - Opening Autumn 2023 First purpose built leasehold store 14
Slide 15: Staines - Opening Spring 2024
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 … STAINES - Opening Spring 2024 4 storeys above an Aldi supermarket 15
Slide 16: Kettering - Opening February 2024
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 KETTERING - Opening February 2024 16
Slide 17: Bromborough - Opening Autumn 2024
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 BROMBOROUGH - Opening Autumn 2024 17
Slide 18: Profit & Loss
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Year Year ended ended 31 Jul 23 31 Jul 22 £’000 £’000 Revenue 27,147 26,902 Retail COS and Operating Costs (12,091) (10,553) Profit & Loss Group Adjusted EBITDA 15,056 16,349 Year ended 31 July 2023 Depreciatio
Slide 19: Consolidated Statement of Financial Position
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 31 Jul 2023 31 Jul 2022 £’000 £’000 Non-current assets - Property, Plant 314,013 292,848 & Equipment Right of Use assets 13,769 10,424 Total non-current assets 327,782 303,272 Net current assets 36,856 40,766 C
Slide 20: Consolidated Statement of Cash Flow
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Year Year Ended Ended 31 Jul 23 31 Jul 22 £’000 £’000 Cash generated from operating activities 15,815 18,569 Income tax paid (1,960) (1,060) Net cash inflow from operating activities 13,855 17,509 Investing act
Slide 21: Lok'nStore's Drive to Net Zero
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Lok’nStore’s Drive to Net Zero • Target set to decarbonise our business to be Net Zero in operations by 2040 • Operational GHG emissions down 93% since 2005 • See appendix 1 for more details of our Environmenta
Slide 22: Summary and Outlook
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Summary and Outlook • Good revenue growth • Trading momentum post year-end continues – Store revenue 6.3% higher for August September 2023 compared to same 2-month period last year • Rate of cost increases abat
Slide 23: Lok'nStore Group plc
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Lok’nStore Group plc Chair Finance Director Andrew Jacobs Ray Davies Email: andrewjacobs@loknstore.co.uk Email: raydavies@loknstore.co.uk Tel: 01252 52 10 10 Tel: 01252 52 10 10 Managing Director Financial Cont
Slide 24: Appendix
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 APPENDIX 24
Slide 25: Appendix 1: Lok'nStore's drive to net zero
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 1: Lok’nStore’s drive to net zero Our Targets FY 2023/24 Our Commitments Decarbonise our business to be Net Zero in operations by 2040 Install EV charging across all new stores Assess recommended impro
Slide 26: Appendix 2: Results Highlights - headline and same store basis
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 2: Lok’nStore Results Highlights - headline and same store basis Year ended 31 Jul 2023 Headline Performance Same Store Performance 31 Jul 2022 31 Jul 2023 31 Jul 2023 Increase Increase £’000 million £
Slide 27: Appendix 3: Cost increases to abate on Same Store Basis
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 3: Cost increases to abate on Same Store Basis Above 10% increase • Notable cost increases in FY23 from Energy, Insurance and loan Interest Below 10% increase • FY24 normalises except Rates and Corpora
Slide 28: Appendix 4: Healthy EBITDA Margins
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 4: Healthy EBITDA Margins – despite cost increases 70% 65% 66% 63% 63% 64% 63% 63% 62% 62% 62% 62% 60% 61% 59% 59% 58% 57% 56% 56% 55% 55% 56% 54% 53% 50% 51% 49% 47% 47% 46% 46% Store Ebitda Margins 4
Slide 29: Appendix 5: Strong Fundamentals
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 5: Strong Fundamentals • C. 17,000 customers – diverse reasons for storing • Move in’s up 4.7% FY23 v FY22 • No self storage customer accounts for more than 0.5% of revenue • All customers on a rolling
Slide 30: Appendix 6: Calculation of CAD
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 6: Group Group Analysis of Cash Available for Distribution (CAD) Year ended Year ended 31 Jul 2023 31 Jul 2022 £’000 £’000 Group Adjusted EBITDA (Per Statement of Comprehensive Income) 15,056 16,349 Pr
Slide 31: Appendix 7: Robust Asset Backing
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 7: 31 Jul 31 Jul Analysis of NAV per Share 2023 2022 £’000 £’000 Net assets 230,472 205,346 Add: JLL leasehold valuation 27,200 24,250 Deduct: leasehold properties and their FF&E (6,952) (7,224) at NBV
Slide 32: Appendix 8: Portfolio Summary
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 8: Portfolio Summary Portfolio Breakdown As at 31st July 2023 No of Stores Trading Lok’nStore Trading Managed Pipeline Freehold & Long 17 17 Leasehold Leaseholds 9 9 Pipeline (Freehold) 8 8 Pipeline (L
Slide 33: Appendix 9: Lok'nStore Locations
Lok’nStore Group Plc Investor Presentation – Results for the Full Year ended 31 July 2023 Appendix 9: Lok’nStore Locations 33