Continuing strong operational performance based on:
All stores revenue growth of 9.4% (at CER)(¹) - In-place rent growth (+6.8%) and stable high occupancy (90.5%) for our same store pool
- Lower costs leading to a same store NOI margin increase of 0.8pp
- Delivering a total company Adj. EPRA earnings growth of 12.6%
- Solid expansion pipeline for the next three years representing an additional 14.5% of our net rentable sqm
Continuing strong YTD performance (at CER)(1)
o 9.4% property operating revenue growth, supported by double digit growth in Germany, the Netherlands and the UK;
o 10.1% income from property (NOI) growth;
o 65.3% NOI margin, an increase of 0.4pp compared to the prior year;
o 6.2% same store property operating revenue growth;
o 90.5% same store average occupancy rate (stable vs. same period last year);
o 6.8% same store average in-place rent growth, continued pricing traction;
o Limited growth of 3.7% of our same store operating expenses reflecting the impact of our digital shift;
o 66.6% same store NOI margin, a strong increase of 0.8pp compared to the prior year;
o Shurgard became a UK REIT in March 2023;
o Delivered €114.5 million of adjusted EPRA earnings, representing a growth of 12.6%;
o EPRA net tangible assets (NTA) per share: €42.30, an increase of 4.0% vs. December 31, 2022;
o Cash position at hand: €82.8 million;
o LTV: 17.5%;
o Net debt/EBITDA: 4.0x(2);
o ICR (interest coverage ratio): 10.6x;
o Consistent growth in our expansion plan delivering new capacity to 2026 representing 14.5% (194,258 sqm or c. €483.0 million of direct project cost) of our net rentable sqm either developed, under construction or signed.
(1) Constant Exchange Rate
(2) Net debt to EBITDA ratio is calculated as the net financial debt (including leases) divided by trailing 12 months EBITDA
Solid Q3 results (at CER) (1)
o 8.3% property operating revenue growth, supported by double digit growth in Germany and the Netherlands;
o 9.1% income from property (NOI) growth;
o 5.1% same store property operating revenue growth;
o 90.8% same store average occupancy rate;
o 5.8% same store average in-place rent growth, continued pricing power;
o Delivered €42.7 million of adjusted EPRA earnings, representing a growth of 10.6%.
2023 Outlook
o We reconfirm to deliver above 8% total revenue growth for the year 2023;
o Our target of c. 2pp growth for all store NOI margin vs. 2020 has been achieved in 2022, ahead of our medium-term guidance of 2024. In 2023, we plan a 0.2pp NOI margin growth for all stores;
o We plan to add c. 70,000 sqm (or c. €150 million) via redevelopments, new developments and acquisitions;
o For all property investment decisions taken as from 2023, we are increasing our expected property yield to c. 8% to 9% at maturity (from c. 7% to 8%);
o Our average effective income tax rate is expected to be at c. 18% in 2023 (based on Adjusted EPRA Earnings before tax);
o Shurgard intends to declare a dividend of €1.17 per share for the fiscal year.
Marc Oursin, Shurgard Chief Executive Officer, commented(2):
"Shurgard has delivered another very solid quarterly performance in terms of revenue and earnings growth fueled by our same store achievements.
For the third consecutive quarter of the year, we continue to maintain high occupancy and significant in-place rate increases in particular in the Netherlands, Germany, UK and Belgium. We experience stable demand across Europe versus 2022, both from our residential customers (c. 80%) and business customers (c. 20%). The roll out of our digitalization plan feeds our margin imporvements with an increase of 0.8pp YTD for the same stores.
Meanwhile, the pipeline of future new footage is developing strongly and has reached 14.5% of our total lettable area or 195,000 sqm with €480 million of investment value.
Aside from this very good economic performance, Shurgard has been granted for the third consecutive year the title of ''Self storage industry leader'' by GRESB for ESG matters with a 91 score out of a maximum of 100 and 5 stars.
Overall Shurgard demonstrates its capacity to outperform the industry in Europe and reinforces its leadership with the support of our Board of Directors and engaged teams.''
(1) Constant Exchange Rate
(2) The data is presented at constant exchange rate (CER)
Press release:
https://shurgardcom.azurefd.net/corporate/-/media/shurgard/investor/news/20231103-shurgard-third-quarter-2023-results-3-november-2023.pdf
About Shurgard
Shurgard is the largest provider of self storage in Europe. The company owns and/or operates 275 self-storage facilitie and approximately 1.4 million net rentable square meters in seven countries: France, the Netherlands, the United Kingdom, Sweden, Germany, Belgium and Denmark.
Shurgard is a GRESB 5-star and Sector Leader, has a 'AA' ESG rating from MSCI, Sustainalytics Low risk, EPRA sBPR Gold medal. Shurgard is part of the BEL ESG index.
Shurgard's European network currently serves more than 190,000 customers and employs approximately 750 people.
Shurgard is listed on Euronext Brussels under the symbol "SHUR".
For additional information: www.shurgard.com/corporate
For high resolution images: https://shurgard.prezly.com/media
Contact
Caroline Thirifay, Director of Investor Relations, Shurgard Self Storage Ltd
E-mail: investor.relations@shurgard.co.uk
M: +44 75 96 87 57 13
Nathalie Verbeeck, Citigate Dewe Rogerson
E-mail: nathalie.verbeeck@citigatedewerogerson.com
M: +32 477 45 75 41
All stores revenue growth of 9.4% (at CER)(¹) - In-place rent growth (+6.8%) and stable high occupancy (90.5%) for our same store pool
- Lower costs leading to a same store NOI margin increase of 0.8pp
- Delivering a total company Adj. EPRA earnings growth of 12.6%
- Solid expansion pipeline for the next three years representing an additional 14.5% of our net rentable sqm
Continuing strong YTD performance (at CER)(1)
o 9.4% property operating revenue growth, supported by double digit growth in Germany, the Netherlands and the UK;
o 10.1% income from property (NOI) growth;
o 65.3% NOI margin, an increase of 0.4pp compared to the prior year;
o 6.2% same store property operating revenue growth;
o 90.5% same store average occupancy rate (stable vs. same period last year);
o 6.8% same store average in-place rent growth, continued pricing traction;
o Limited growth of 3.7% of our same store operating expenses reflecting the impact of our digital shift;
o 66.6% same store NOI margin, a strong increase of 0.8pp compared to the prior year;
o Shurgard became a UK REIT in March 2023;
o Delivered €114.5 million of adjusted EPRA earnings, representing a growth of 12.6%;
o EPRA net tangible assets (NTA) per share: €42.30, an increase of 4.0% vs. December 31, 2022;
o Cash position at hand: €82.8 million;
o LTV: 17.5%;
o Net debt/EBITDA: 4.0x(2);
o ICR (interest coverage ratio): 10.6x;
o Consistent growth in our expansion plan delivering new capacity to 2026 representing 14.5% (194,258 sqm or c. €483.0 million of direct project cost) of our net rentable sqm either developed, under construction or signed.
(1) Constant Exchange Rate
(2) Net debt to EBITDA ratio is calculated as the net financial debt (including leases) divided by trailing 12 months EBITDA
Solid Q3 results (at CER) (1)
o 8.3% property operating revenue growth, supported by double digit growth in Germany and the Netherlands;
o 9.1% income from property (NOI) growth;
o 5.1% same store property operating revenue growth;
o 90.8% same store average occupancy rate;
o 5.8% same store average in-place rent growth, continued pricing power;
o Delivered €42.7 million of adjusted EPRA earnings, representing a growth of 10.6%.
2023 Outlook
o We reconfirm to deliver above 8% total revenue growth for the year 2023;
o Our target of c. 2pp growth for all store NOI margin vs. 2020 has been achieved in 2022, ahead of our medium-term guidance of 2024. In 2023, we plan a 0.2pp NOI margin growth for all stores;
o We plan to add c. 70,000 sqm (or c. €150 million) via redevelopments, new developments and acquisitions;
o For all property investment decisions taken as from 2023, we are increasing our expected property yield to c. 8% to 9% at maturity (from c. 7% to 8%);
o Our average effective income tax rate is expected to be at c. 18% in 2023 (based on Adjusted EPRA Earnings before tax);
o Shurgard intends to declare a dividend of €1.17 per share for the fiscal year.
Marc Oursin, Shurgard Chief Executive Officer, commented(2):
"Shurgard has delivered another very solid quarterly performance in terms of revenue and earnings growth fueled by our same store achievements.
For the third consecutive quarter of the year, we continue to maintain high occupancy and significant in-place rate increases in particular in the Netherlands, Germany, UK and Belgium. We experience stable demand across Europe versus 2022, both from our residential customers (c. 80%) and business customers (c. 20%). The roll out of our digitalization plan feeds our margin imporvements with an increase of 0.8pp YTD for the same stores.
Meanwhile, the pipeline of future new footage is developing strongly and has reached 14.5% of our total lettable area or 195,000 sqm with €480 million of investment value.
Aside from this very good economic performance, Shurgard has been granted for the third consecutive year the title of ''Self storage industry leader'' by GRESB for ESG matters with a 91 score out of a maximum of 100 and 5 stars.
Overall Shurgard demonstrates its capacity to outperform the industry in Europe and reinforces its leadership with the support of our Board of Directors and engaged teams.''
(1) Constant Exchange Rate
(2) The data is presented at constant exchange rate (CER)
Press release:
https://shurgardcom.azurefd.net/corporate/-/media/shurgard/investor/news/20231103-shurgard-third-quarter-2023-results-3-november-2023.pdf
About Shurgard
Shurgard is the largest provider of self storage in Europe. The company owns and/or operates 275 self-storage facilitie and approximately 1.4 million net rentable square meters in seven countries: France, the Netherlands, the United Kingdom, Sweden, Germany, Belgium and Denmark.
Shurgard is a GRESB 5-star and Sector Leader, has a 'AA' ESG rating from MSCI, Sustainalytics Low risk, EPRA sBPR Gold medal. Shurgard is part of the BEL ESG index.
Shurgard's European network currently serves more than 190,000 customers and employs approximately 750 people.
Shurgard is listed on Euronext Brussels under the symbol "SHUR".
For additional information: www.shurgard.com/corporate
For high resolution images: https://shurgard.prezly.com/media
Contact
Caroline Thirifay, Director of Investor Relations, Shurgard Self Storage Ltd
E-mail: investor.relations@shurgard.co.uk
M: +44 75 96 87 57 13
Nathalie Verbeeck, Citigate Dewe Rogerson
E-mail: nathalie.verbeeck@citigatedewerogerson.com
M: +32 477 45 75 41
