Shurgard Self Storage (SHUR) Status Update summary

Strategic pillars and market positioning

• Strategy is built on four pillars: prime real estate, outperforming same-store growth, unmatched square footage growth, and a unique capital foundation.

• Operates at scale in seven European countries, focusing on capital and major cities, with 94% of properties in these locations.

• Portfolio is 92% freehold, 65% purpose-built, and has an average operational age of 15 years, targeting residential customers for stability.

• European self-storage market is significantly undersupplied compared to the U.S., supporting strong growth potential.

Operational performance and revenue management

• 80% of customers are residential, with unit sizes designed to attract this segment and reduce volatility.

• Revenue management focuses on transparent pricing, yield management, and targeted rate increases for existing customers (ECRI).

• Occupancy and rates are managed together to maximize revenue, with occupancy around 90% across markets.

• Digital tools (e-Rental, app, Bluetooth access) have improved customer convenience and operational efficiency.

• Churn has decreased from 6.3% to 5.1% monthly, and average customer stay has increased from 36 to 42 months.

Financial performance and cost management

• 87% of revenue comes from mature same stores, providing predictability and stability.

• Same store in-place rent has increased 33% over recent years, outpacing inflation.

• Cost structure benefits from scalability, with a 30% reduction in FTEs per district and centralized management.

• NOI margin for same stores has improved from 58% to 68% over the past decade, despite recent cost pressures.