Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — Q3 2024 Earnings Presentation
21 slides from Shurgard Self Storage's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Results
November 5, 2024 Q3 2024 RESULTS JANUARY 1, 2024 TO SEPTEMBER 30, 2024
Slide 2: Highlights: YTD September 2024 Results
HIGHLIGHTS: YTD SEPTEMBER 2024 RESULTS(1) CONTINUED GROWTH ACROSS ALL MARKETS • All store revenues: +10.8% YTD with an acceleration in Q3 2024 (+16.0%) supported by the large portfolio expansion in the UK and Germany; • High average same store occupancy: 89.8% and +0.3% in average net rented sqm ove
Slide 3: Continuing the Positive Trends of Previous Quarters
CONTINUING THE POSITIVE TRENDS OF PREVIOUS QUARTERS Variances calculated o n d ata at bud g et ex chang e rate 2024 SS definition 9% 8% 7% 6% 5% YTD var. Revenue; 4.7% 4% 3% YTD var. Average In -place rent; 5.3% 2% 1% YTD var. Average Occupancy 0% (sqm); -0.5% -1% -2% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3
Slide 4: Highlights: YTD September 2024 Results
HIGHLIGHTS: YTD SEPTEMBER 2024 RESULTS(1) • Same store NOI margin: 66.7% (+0.3pp vs. the first nine months of 2023), reflecting the positive impact of digitalization initiatives on our cost structure; • All store NOI: +10.2% in line with our revenue growth (+10.8%); • Increased interest expenses, du
Slide 5: Highlights: YTD September 2024 Results
HIGHLIGHTS: YTD SEPTEMBER 2024 RESULTS FUTURE GROWTH SUPPORTED BY ATTRACTIVE DEVELOPMENT PIPELINE • Delivering new capacity from 2024 to 2026 representing c. 405,000 sqm (29% of our 2023 net rentable sqm); • Total investment of c. €1,200 million of direct project cost; • Expected yield at maturity o
Slide 6: Largest Sqm Expansion p.a. in the Industry
LARGEST SQM EXPANSION P.A. IN THE INDUSTRY % of 2023 rentable sqm In thousands sqm 16.9% 18% 240 220 235.7 16% 200 14% 180 Sqm total 12% 160 10% Pipeline as % of 2023 net 140 rentable sqm 120 7.1% 8% 100 5.1% 110.4 6% 4.5% 4.8% 3.9% 4.1% 80 4% 60 65.4 64.6 55.3 58.8 2% 40 47.1 20 0% A 2020 A 2021 A
Slide 7: Highlights: Q3 2024 Results (vs. Q3 2023)
HIGHLIGHTS: Q3 2024 RESULTS (VS. Q3 2023) • Revenue growth: +16.0% supported by growth of +37.4% and +42.8% in the UK and Germany, respectively, as well as a double-digit growth in the Netherlands; • NOI: +14.9% with stable payroll costs for same stores, accelerating with portfolio expansion; • Same
Slide 8: 2024 Revised Outlook Including Lok'nStore Acquisition
2024 REVISED OUTLOOK (AT CER) INCLUDING LOK’NSTORE ACQUISITION • All store revenue growth: at least 12% (vs. 8% previously) for the year 2024; • All store NOI growth: growing nearly in line with revenue growth; • Expansion pipeline: + c. 235,000 sqm in 2024, investing c. €750 million; • Adjusted EPR
Slide 9: 2024 Revised Outlook Including Lok'nStore Acquisition
2024 REVISED OUTLOOK (AT CER) INCLUDING LOK’NSTORE ACQUISITION • Average effective income tax rate: expected to remain c. 17% in 2024; • Dividend: €1.17 per share for the fiscal year; • Maintain disciplined financial policy: with target LTV at c. 25% and, 4.0x to 5.0x Net debt/ Underlying EBITDA, wi
Slide 10: All Store Income Statement
ALL STORE INCOME STATEMENT QTD SEP YTD SEP 2024 2023 % var. % var.CER 2024 2023 % var. % var.CER REAL ESTATE OPERATING REVENUE 1 105.8 90.7 16.6% 15.8% 295.2 265.1 11.3% 10.8% Real estate operating expenses (33.3) (27.9) 19.4% 18.5% (103.5) (91.8) 12.7% 12.1% NET INCOME FOR REAL ESTATE OPERATIONS 72
Slide 11: Same Store Property Operating Revenue per Market
SAME STORE PROPERTY OPERATING REVENUE PER MARKET In € millions QTD SEP YTD SEP (at actual exchange rate) 2024 2023 % var. % var.CER 2024 2023 % var. % var.CER France 20.9 20.3 3.0% 3.0% 61.1 59.7 2.3% 2.3% The Netherlands 19.4 17.9 8.2% 8.2% 55.9 52.2 7.1% 7.1% UK 18.5 17.3 6.9% 5.0% 53.8 50.0 7.6%
Slide 12: Balance Sheet
BALANCE SHEET €700m €290m €500m Drawn on a €450m floating Bridge loan USPP indebtness (fixed interest committed bank loan interest rate) (Refinanced by rated EUR bond in facility (120bps margin on No encumbered assets EURIBOR, down to 100bps with October 2024 at 3.625%) at end of June 2024 BBB+) 3.2
Slide 13: Strong Balance Sheet, Modest Gearing and Significant Liquidity
STRONG BALANCE SHEET, WITH A MODEST LEVEL OF GEARING AND SIGNIFICANT LIQUIDITY • First European self-storage company with a strong investment grade rating (BBB+, stable outlook) from S&P; • Optional scrip dividend: in September 2024, Shareholders opted for shares for a total of 80% of the dividend r
Slide 14: Eurobond Issuance
EUROBOND ISSUANCE • On October 16, Shurgard issued a €500m Eurobond; • This first issuance attracted a broad and diversified high quality investor base, as evidenced by an orderbook of €4.6 billion at peak with an oversubscription ratio of 9.2x times; • The new bond, maturing on October 22, 2034, ca
Slide 15: 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; • Shurgard acquired 27 stores located in London, South-East and greater Manchester regions; • Operational integration completed after day 2 of the acquisition; • 69.2% all
Slide 16: Conclusion
CONCLUSION • Operational execution excellence • Raise of our FY 2024 revenue guidance • 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 ex
Slide 17: Appendices
APPENDICES
Slide 18: Same Store Average Occupancy by Country
SAME STORE AVERAGE OCCUPANCY BY COUNTRY QTD SEP YTD SEP 2024 2023 Diff. 2024 2023 Diff. France 89.8% 89.5% 0.3pp 89.2% 88.9% 0.2pp The Netherlands 91.6% 91.9% -0.3pp 91.1% 91.3% -0.2pp UK 88.7% 88.5% 0.2pp 87.3% 88.0% -0.7pp Sweden 91.4% 91.1% 0.3pp 90.6% 91.2% -0.5pp Germany 88.3% 90.4% -2.1pp 88.7
Slide 19: Same Store Property Average In-Place Rent by Country
SAME STORE PROPERTY AVERAGE IN-PLACE RENT BY COUNTRY In € per sqm / year QTD SEP YTD SEP 2024 2023 % var. % var. CER 2024 2023 % var. % var. CER France 278.9 268.4 3.9% 3.9% 273.4 266.0 2.8% 2.8% The Netherlands 254.6 235.3 8.2% 8.2% 246.7 229.7 7.4% 7.4% UK 398.4 369.1 7.9% 6.1% 391.7 358.0 9.4% 7.
Slide 20: 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 1 400 owned Rate (CAGR to 383.4 stabilization) 2% in 5-6 years 380 CAGR: +9% 360 348.8 340 320 313.3 in 2 years Occupancy 0% 90% post store op
Slide 21: 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
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