Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — H1 2023 Earnings Presentation
22 slides from Shurgard Self Storage's earnings presentation, Aug 18, 2023
Slide 1: Interim H1 2023 Results
August 18, 2023 INTERIM H1 2023 RESULTS JANUARY 1, 2023 TO JUNE 30, 2023
Slide 2: Highlights: H1 Results
HIGHLIGHTS: H1 RESULTS(1) • 10.0% property operating revenue growth, supported by double digit growth in Germany, the Netherlands and the UK; • 10.7% income from property (NOI) growth; • 63.3% NOI margin, an increase of 0.4pp compared to the prior year; • 6.8% same store property operating revenue g
Slide 3: Highlights: Robust Balance Sheet
HIGHLIGHTS: ROBUST BALANCE SHEET • Half-year dividend of €0.58 per share – payment on or about October 5, 2023; • EPRA net tangible assets (NTA) per share: €42.23, an increase of 3.8% vs. December 31, 2022; • Exit cap rate(1) 5.22%(2) compared to 5.19% in December 2022; • Cash position: €57.2 millio
Slide 4: Highlights: Pipeline Confirmed
HIGHLIGHTS: PIPELINE CONFIRMED • Consistent growth in our expansion plan; • Delivering new capacity from 2023 to 2026 representing 136,131 sqm (10.1% of our net rentable sqm); • Total investment of c. €296.6 million of direct project cost; • Expected yield on cost of development of c. 8-9%; ON TRACK
Slide 5: Total Footage Growth Trend: Largest Sqm Expansion p.a. in the Industry
TOTAL FOOTAGE GROWTH TREND: LARGEST SQM EXPANSION P.A. IN THE INDUSTRY 100 6.0% 90.0 90 5.0% 80 75.6 70 65.4 4.0% 60 55.3 47.1 Sqm acquisition (M&A) 50 3.0% 40 Sqm (re)development (organic) 2.0% 30 As % of rentable sqm 20 1.0% 10 0 0.0% A 2020 A 2021 A 2022 G 2023 G 2024 A = Actuals G = Guidance FUE
Slide 6: Highlights: Q2 Results
HIGHLIGHTS: Q2 RESULTS • 9.5% property operating revenue growth, supported by double digit growth in Germany, the Netherlands and the UK; • 10.1% income from property (NOI) growth; • 6.2% same store property operating revenue growth; • 90.7% same store average occupancy rate (0.2pp increase vs. same
Slide 7: 2023 Outlook: Confirmed
2023 OUTLOOK: CONFIRMED • Total store revenue growth above 8% versus 2022; • NOI margin growth 0.2pp for all stores; • For all investment decisions taken as from 2023, increasing property yield to c. 8-9% at maturity; • Average effective tax rate expected to be 18% (based on Adj. EPRA earnings befor
Slide 8: Income Statement
INCOME STATEMENT Q2 H1 2023 2022 % v ar. % v ar.C E R 2023 2022 % v ar. % v ar.C E R REAL ESTATE OPERATING REVENUE 87.6 81.5 7.5% 9.4% 174.4 161.5 7.9% 10.0% Real estate operating expenses (27.6) (25.9) 6.4% 8.1% (63.9) (59.7) 7.1% 8.9% NET INCOME FOR REAL ESTATE OPERATIONS 60.0 55.6 8.0% 10.0% 110.
Slide 9: Same Store Property Operating Revenue
SAME STORE PROPERTY OPERATING REVENUE In € millions Q2 H1 (at actual exchange rate) 2023 2022 % var. % var.CER 2023 2022 % var. % var.CER France 19.2 18.4 4.3% 4.3% 38.6 36.8 4.7% 4.7% The Netherlands 17.6 16.1 9.2% 9.2% 34.8 31.8 9.5% 9.5% UK 15.7 15.0 5.3% 8.1% 31.1 29.9 4.2% 8.4% Sweden 11.1 12.2
Slide 10: H1 2023 NOI Evolution
H1 2023 NOI EVOLUTION H1 2022 ⎯ H1 2023 NOI1 bridge (€m) NOI margin improvement: +0.3pp NOI growth (at CER): +10.7% NOI growth: +8.5% Linked to SEK and GBP 2.8 (2.1) 7.9 110.3 101.7 Ramp-up phase Acquisition of seven stores in 2022 Opex under control Development of six stores in 2022, and
Slide 11: Cash Flow
CASH FLOW In € millions H1 2023 H1 2022 % var At actual exchange rate Cash: beginning balance 87.3 219.2 -60.1% TOTAL CASH FROM OPERATIONS 96.2 81.4 18.1% €57.2m Acquisitions (0.2) (8.3) -97.7% Net Cash end of June 2023 Developments, redevelopments and other (46.3) (40.4) 14.7% Other capex (13.8) (8
Slide 12: Balance Sheet
BALANCE SHEET In € millions At actual exchange rate Investment property Jun 2023 4,712.3 Dec 2022 4,523.8 % var. €800m 2.36% 4.9 years Other assets (1) 42.4 30.0 100% USPP indebtness Weighted average Weighted average No encumbered assets interest rate maturity Trade and other receivables 19.1 18.7 F
Slide 13: NTA, LTV, Net Debt/EBITDA, ICR Evolution Since IPO
NTA, LTV, NET DEBT/ EBITDA, ICR EVOLUTION SINCE IPO (OCT 2018) At actual exchange rate EPRA NET TANGIBLE ASSETS (NTA) LOAN-TO-VALUE (LTV) In € millions 3,639 3,776 18.1% 18.0% 18.0% 16.9% 17.4% 3,113 13.9% 2,518 2,147 2,260 2018 2019 2020 2021 2022 H1 2023 2018 2019 2020 2021 2022 H1 2023 +75.9% ver
Slide 14: Successfully Implementing Our ESG Strategy
SUCCESSFULLY IMPLEMENTING OUR ESG STRATEGY ESG Priorities Strong Ratings Our Commitments Invest to reduce our carbon footprint Green certified buildings, LED, heat pumps, solar panels, Net Zero by 2030 water flow reduction (operational NZC) Strong ESG governance 10.8 Low Risk ISO-aligned EMS, ESG Co
Slide 15: Takeaway – Best Performing Platform and Runway
TAKEAWAY – BEST PERFORMING PLATFORM AND RUNWAY • Strong expansion pipeline • Robust balance sheet, • Another half year of representing 10.1% of our disciplined capital outperformance net rentable sqm allocation & returns • Proven benefits from • Acquisitions will be added • Shurgard has been a UK ge
Slide 16: Appendices
APPENDICES
Slide 17: Same Store Average Occupancy by Country
SAME STORE AVERAGE OCCUPANCY BY COUNTRY Q2 H1 2023 2022 Diff. 2023 2022 Diff. France 89.7% 89.6% 0.1pp 89.4% 89.4% 0.1pp The Netherlands 91.8% 90.4% 1.4pp 91.4% 90.2% 1.2pp UK 87.8% 88.2% -0.4pp 87.6% 87.9% -0.3pp Sweden 91.7% 92.5% -0.9pp 91.3% 91.9% -0.6pp Germany 91.1% 90.9% 0.2pp 91.0% 90.8% 0.2
Slide 18: Same Store Property Average In-Place Rent by Country
SAME STORE PROPERTY AVERAGE IN-PLACE RENT BY COUNTRY In € per sqm/year Q2 H1 2023 2022 % var. % var. CER 2023 2022 % var. % var. CER France 266.2 253.5 5.0% 5.0% 267.6 253.4 5.6% 5.6% The Netherlands 227.4 209.8 8.4% 8.4% 226.5 207.9 9.0% 9.0% UK 358.3 332.9 7.6% 10.4% 354.6 334.5 6.0% 10.3% Sweden
Slide 19: 3 Levers to Accelerate Our Portfolio Expansion
3 LEVERS TO ACCELERATE OUR PORTFOLIO EXPANSION LEVER 1 LEVER 2 LEVER 3 Re-developments New Developments Market Consolidation (expand existing buildings) (purpose built and conversion) (bolt-on acquisitions) Increase our footprint by 70,000 sqm p.a.: Increase our footprint by c. 20,000 sqm p.a.: • In
Slide 20: Expansion Pipeline 2023-2026
EXPANSION PIPELINE 2023-2026 In € millions Number of Direct project cost At closing rate June 2023 Property Region Country Completion date Net sqm (000's) properties /Acquisition cost (1) Scheduled to open in 2023 12 55.6 95.4 Major redevelopments Unterfoehring Munich Germany 1 Q4 2023 3.5 4.0 Rotte
Slide 21: Medium Term Guidance
MEDIUM TERM GUIDANCE • c. 6% growth p.a. for all store revenue; • 0.2pp NOI margin growth per year for all stores; • As of 2024, we plan to add c. 90,000 sqm per year; • Property yield c. 8-9% at maturity; • LTV at c. 25% and Net debt/ EBITDA at 4.0x to 5.0x, with a short- to mid-term maximum of 35%
Slide 22: Legal Disclaimer
LEGAL DISCLAIMER All statements in this presentation, other than statements of historical facts, are forward-looking statements. These statements are based on the current expectations and views of future events and developments of the management of Shurgard and are naturally subject to uncertainty a
Shurgard Self Storage — H1 2023 Earnings Presentation on 6ix