Shurgard Self Storage (SHUR) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue growth year-to-date, with whole store revenue up 10.8% and Q3 accelerating to 16%, driven by UK and German acquisitions and portfolio expansion.

• Integrated Lok'nStore and Prime portfolios, doubling UK presence and delivering early earnings neutrality.

• Raised 2024 guidance for all-store revenue growth to at least 12% (from 8%), supported by a robust development pipeline.

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

Financial highlights

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

• All store NOI up 10.2% year-to-date; Q3 NOI up 14.9%.

• Earnings per share stable, impacted by 9% equity raise in November 2023.

• NOI margin for same stores at 66.7% (+0.3pp YoY); all store NOI margin at 64.9%.

• Weighted average interest rate at 3.27%; net debt/EBITDA at 6.4x; LTV at 24.1%.

Outlook and guidance

• 2024 all-store revenue growth guided at minimum 12%, up from previous 8%.

• NOI growth expected nearly in line with revenue; adjusted EPRA earnings to match consensus prior to Lok'nStore acquisition.

• Portfolio to expand by c.235,000 sqm in 2024, with €750 million investment.

• Dividend set at €1.17 per share; effective tax rate expected at ~17%.

• Disciplined financial policy: target LTV ~25%, Net debt/EBITDA 4.0x–5.0x.