Shurgard Self Storage (SHUR) Q3 2024 earnings summary

Executive summary

• Year-to-date revenue grew 10.8% with Q3 accelerating to 16% growth, driven by UK and German acquisitions and portfolio expansion.

• Integrated Lok'nStore, doubling UK presence and delivering early earnings neutrality; Prime portfolio in Germany also integrated.

• Raised 2024 all-store revenue growth guidance to at least 12%, supported by a robust development pipeline.

• Maintained strong balance sheet with low leverage, significant liquidity, and BBB+ investment grade rating.

• Received inaugural BBB+ credit rating from S&P and completed a successful €500 million Eurobond issuance.

Financial highlights

• All store revenue up 16% in Q3 and 10.8% year-to-date, with UK (+37.4%) and Germany (+42.8%) leading growth.

• Adjusted EPRA earnings for nine months at €123.5 million (+7.2% YoY); Q3 at €45.3 million (+6.4% YoY).

• NOI margin for same stores at 66.7% (+0.3pp YoY); all store NOI up 10.2% year-to-date.

• Adjusted EPRA EPS for nine months at €1.27, down 1.8% YoY due to equity raise dilution.

• Average all store occupancy at 86.4% (down 3.0pp YoY); same store occupancy at 90.2%.

Outlook and guidance

• 2024 all-store revenue growth guidance raised to at least 12%, with NOI growth expected to track revenue.

• Adjusted EPRA earnings expected to align with pre-Lok'nStore consensus.

• Portfolio to expand by c.235,000 sqm in 2024, with €750 million investment; pipeline for 2024–2026 secured at over 400,000 sqm and €1.2 billion investment.

• Lok'nStore expected to be earnings neutral in 2024 and accretive in 2025.

• Dividend of €1.17 per share planned; effective tax rate to remain around 17%.