Shurgard Self Storage (SHUR) Q4 2024 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth to €406.7 million in 2024, driven by strong same-store performance and major acquisitions in the UK (Lok'nStore) and Germany.

• Net operating income (NOI) and underlying EBITDA both grew 12.2% year-over-year, reflecting margin improvements and scalability.

• Adjusted EPRA earnings increased 5% to €167.4 million, despite higher interest expenses and share dilution.

• Successful integration of Lok'nStore doubled UK presence, with synergies ahead of plan and accretive impact expected from 2025.

• Secured development pipeline for 2024–2026 represents 30% of 2023 net rentable sqm, targeting €100 million additional NOI at maturity.

Financial highlights

• Q4 2024 revenue up 19.3% year-over-year, with UK and Germany revenues growing 47.3% and 43.7%, respectively.

• Full-year NOI margin improved by 0.4pp to 67.8%; same store NOI margin at 70.8%.

• Adjusted EPRA earnings per share declined 3% to €1.71 due to equity raise and scrip dividend dilution.

• Net debt/EBITDA at 6.2x; LTV at 23.3%; available cash €142.6 million.

• EPRA net tangible assets rose 11% to €4,782 million.

Outlook and guidance

• 2025 guidance: ~11% revenue and NOI growth, 0.5pp EBITDA margin improvement, effective tax rate ~18.5%, and €50 million net interest expenses.

• Medium-term: ~8% annual revenue/NOI growth (except 2026), double-digit EBITDA growth, LTV target 25% (flexibility up to 35%), net debt/EBITDA below 5.0x by 2028.

• Dividend to remain stable at €1.17 per share with optional scrip dividend (~2% dilution).

• Portfolio expansion: 90,000 sqm in 2025, 125,000 sqm in 2026, with annual investments of €200–320 million.

• Net debt/EBITDA to return below 5.0x by 2028.