Shurgard Self Storage (SHUR) H1 2024 earnings summary

Executive summary

• Achieved 8.2% revenue growth in H1 2024 to €189.3 million, driven by strong performance in Germany, UK, Netherlands, and Belgium, and supported by digitalization and operational excellence.

• Completed Lok'nStore acquisition for €613 million (£378 million), adding 171,000 sqm and doubling UK presence, with rapid integration and enhanced growth prospects.

• Upgraded full-year 2024 revenue growth guidance to at least 8%, reflecting robust H1 results and business confidence.

• Maintained high average occupancy at 89.5% and increased in-place rent by 5.1% in same stores.

• Announced a full-year dividend of €1.17 per share, with a scrip option supported by major shareholders.

Financial highlights

• H1 2024 revenue: €189.3 million (+8.2% YoY); Q2 revenue: €96.0 million (+9.2% YoY).

• NOI up 7.5% in H1; NOI margin stable at 62.9% overall and 64.7% for same stores.

• Adjusted EPRA earnings: €78.2 million (+7.7% YoY); adjusted EPRA EPS: €0.80 (slight decline due to equity raise).

• Net profit attributable to shareholders was €188.7 million, with basic EPS of €1.94.

• Same store average occupancy: 89.5% in H1; average in-place rent up 5.1%.

Outlook and guidance

• Upgraded 2024 revenue growth guidance to at least 8%, excluding Lok'nStore; updated outlook including Lok'nStore to be provided with Q3 results.

• Targeting stable NOI margin, 90,000 sqm annual rental space additions, and 17% tax rate.

• Lok'nStore to be consolidated from August 1, 2024; accretive to adjusted EPRA EPS from 2026.

• Committed to medium-term targets: 25% LTV and 4-5x net debt/EBITDA.