Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — Investor Presentation (February 2025)
35 slides from Shurgard Self Storage's investor presentation, Feb 28, 2025
Slide 1: Execution of Shurgard's Winning Strategy
February 28, 2025 EXECUTION OF SHURGARD’S WINNING STRATEGY
Slide 2: Execution of Our Winning Strategy
EXECUTION OF OUR WINNING STRATEGY 1| Prime portfolio in the right 2| Outperforming 3| Unmatched footage growth geographies same store growth with secured pipeline 5| Compelling 2025 outlook 6| Shurgard’s convincing 4| Unique capital foundation and medium-term guidance investment case HOW WE ARE DIFF
Slide 3: Prime Portfolio in the Right Geographies
1| PRIME PORTFOLIO IN THE RIGHT GEOGRAPHIES 3
Slide 4: Undersupplied Industry with High Growth Perspective
UNDERSUPPLIED INDUSTRY WITH HIGH GROWTH PERSPECTIVE Self storage sq ft. per capita in Self storage area (sq ft. per capita)2 our 7 markets versus the US 1 Self Storage Capital City sq ft. per capita c. 15x Growth potential 1.8 1.5 1.4 9.4 1.1 1.0 0.6 0.5 0.5 Paris Berlin Brussels Randstad Copenhagen
Slide 5: Operating in Right Cities with Scale
OPERATING IN RIGHT CITIES WITH SCALE Population in major cities in Europe (in €mio) 335 Stockholm NRW 17.6 Copenhagen 63% Other stores3 Other 100% 37% Paris 13.2 89 45% 39 London 9.0 London stores 10 stores 55% Randstad 7.1 stores Munich 5.2 Hamburg 4.3 Berlin 3.8 Stockholm Other Stuttgart 2.8 25% F
Slide 6: Unique Prime Portfolio
UNIQUE PRIME PORTFOLIO… Our well diversified portfolio Our standard building characteristics2 Rentable size # of units 335 stores across 7 countries c. 5,100 sqm c. 800 units 1.7M sqm of rentable space Average unit size Elevatored Gross Asset Value c. 6 sqm c. 4 floors (max. 25 sqm) Germany 14% Unit
Slide 7: Outperforming Same Store Growth
2| OUTPERFORMING SAME STORE GROWTH
Slide 8: Revenue Management
2.1 | REVENUE MANAGEMENT —
Slide 9: Shurgard Is a B2C Need Business
SHURGARD IS A B2C NEED BUSINESS RESIDENTIAL CUSTOMERS What is self storage for our Why do they need self Where are they? residential customers? storage? “My attic or basement in a remote • Life events Close property catchment areas location” • (marriage, birth, death, divorce, • 10min drive: 50% ~80
Slide 10: Our Unique Data Driven Commercial Policy
OUR UNIQUE DATA DRIVEN COMMERCIAL POLICY… RETAIN AND OPTIMIZE CUSTOMER UNIQUE SELLING PROPOSITION ATTRACT PROSPECTS VALUE Price • Public pricing (“price you • Existing customer rate increase (ECRI) see is price you pay”) • Individual • Yield management • Discretionary • Significant discounts Conveni
Slide 11: Our Optimized Digital Platform Provides...
OUR OPTIMIZED DIGITAL PLATFORM PROVIDES… PROSPECTS CUSTOMERS Finding a Space Lease Execution Account Management Daily Property Use Website Comprehensive Digital Property Access1 ~50% Digital Rental Mobile App of move-ins Agreement E-rental penetration (as of December 31) 60% 50% High customer utiliz
Slide 12: Execution of Our Commercial Policy
EXECUTION OF OUR COMMERCIAL POLICY... FOCUS ON RETENTION INCREASE CUSTOMER LIFETIME VALUE 7.0% 43 42 42 42 41 6.5% 6.3% 41 6.0% 6.1% 5.7% 40 40 ~40% ~60% 5.6% 5.6% 5.6% 39 OF TOTAL OF TOTAL 38 CUSTOMERS CUSTOMERS 5.5% 38 37 5.1% 37 5 MONTHS AVERAGE STAY 60 MONTHS 5.0% AVERAGE STAY 36 36 4.5% 35 2018
Slide 13: Why Is Same Store Definition the Relevant KPI?
WHY IS SAME STORE DEFINITION THE RELEVANT KPI? Occupancy (%) Revenue 100% Like for like Same store 90% 80% 13% 70% Mature and 60% stabilized 50% properties 40% 87% 30% 20% 10% 0% Same stores Non same stores M0 M5 M10 M15 M20 M25 M30 M35 M40 M45 M50 IT’S A TRANSPARENT AND PREDICTABLE VIEW OF THE COMP
Slide 14: Occupancy Is Key: We Target 90%
OCCUPANCY IS KEY: WE TARGET 90% 2024 SAME STORE OCCUPANCY PER MARKET SAME STORE OCCUPANCY PER YEAR 100% 100% 95% 95% 90% 90% 85% 85% 80% 80% 75% 75% 70% 70% 65% 65% 60% 60% 55% 55% 50% 50% FR NL UK SE DE BE DK 2018 2019 2020 2021 2022 2023 2024 CONSISTENTLY ACHIEVED 90% OCCUPANCY ACROSS YEARS AND MA
Slide 15: The Outcome of Our Commercial Policy
THE OUTCOME OF OUR COMMERCIAL POLICY SAME STORE OCCUPANCY & IN-PLACE RENT SAME STORE REVENUE GROWTH c. 86% 100% 300 10.0% 95% +33% 8.6% 280 90% 8.0% 7.0% 85% 260 6.0% 5.7% 80% 4.8% 240 75% 4.0% 3.2% c. 61% 70% 2.2% 220 2.0% 65% 1.2% 60% 200 0.0% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021
Slide 16: We Consistently Outperform the Economic Cycle
WE CONSISTENTLY OUTPERFORM THE ECONOMIC CYCLE CPI & GDP CPI & GDP HOUSING MARKET EUROPE (incl. UNITED KINGDOM) UNITED KINGDOM UNITED KINGDOM 60% 60% 58% 20% 200% 50% 50% 41% 40% 40% 35% 15% 150% Shurgard revenue % growth 31% House sales % growth 30% 30% 10% 100% 20% 16% 20% 13% 5% 10% 10% 5% 50% 0%
Slide 17: Cost Management
2.2| COST MANAGEMENT
Slide 18: Our Scalable Cost Structure
OUR SCALABLE COST STRUCTURE... 5% COST OF MANAGEMENT Action: Scalability of central costs 5% REAL ESTATE TAXES OPERATING EXPENSES c. 32% of our revenue 7% OTHER 1% UTILITIES Action: Sustainability investments 3% REPAIR & 8% PAYROLL MAINTENANCE 3% MARKETING Action: Store network clusterization Action
Slide 19: Efficiency Gains Through New Operating Model
EFFICIENCY GAINS THROUGH NEW OPERATING MODEL CLUSTERIZATION EFFICIENCY GAINS 2.8 350 +70% 2.6 2.4 300 2.2 2.0 250 1.8 1.6 -27% 200 1.4 1.2 1.0 150 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FTE (ASM + SM) / store Number of stores 55% OF STORES ALREADY IN CLUSTERS, WITH ALL MARKETS TO BE
Slide 20: Other Scalability Levers
OTHER SCALABILITY LEVERS… COST OF MANAGEMENT (5%) MARKETING (3%) UTILITIES (1%) Scalable platform lowering Increased store density allowing LED, solar and BMS1 cost of management’s us to mitigate Google price to mitigate weight on our revenue increases price pressure COM as % of revenue Marketing as
Slide 21: Net Operating Income
2.3| NET OPERATING INCOME
Slide 22: Revenue and Cost Management
REVENUE AND COST MANAGEMENT… REVENUE AND OPEX NOI MARGIN in €/sqm CAGR: 340 +3.1% 70% 310 280 307 318 68% +10pp 288 66% 250 266 248 249 253 241 244 64% 220 235 236 190 62% 160 CAGR: +1.2% 60% 130 99 102 90 91 89 88 90 89 90 94 58% 100 87 70 56% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 23: Unmatched Footage Growth with Secured Pipeline
3| UNMATCHED FOOTAGE GROWTH OF OUR PLATFORM WITH SECURED PIPELINE
Slide 24: Our Expansion Transparency
OUR EXPANSION TRANSPARENCY… • Secured pipeline: • 3 years visibility ACTUAL OPENINGS VS PIPELINE GUIDANCE • All projects with minimum CPA signed/ 250,000 planning filing 225,000 • No land banking 200,000 175,000 150,000 • Hurdle rate 8%-9% on total cost1: 125,000 100,000 • Organic development: 75,00
Slide 25: Using Our Unique Combination for Footage Growth
USING OUR UNIQUE COMBINATION FOR FOOTAGE GROWTH… TRACK RECORD 2015 - 2024 • 36 stores from organic developments in 5 countries 3 7 • 106 stores from M&A transactions in 5 countries • 38 stores redeveloped in 6 countries 21 options for growth … ENSURES A WELL DIVERSIFIED EXPANSION AT TARGET HURDLE RA
Slide 26: Our Yield on Cost Track Record
OUR YIELD ON COST TRACK RECORD ORGANIC M&A 18% 17.3% 16.4% 15% 12.1% 12.5% 13% 12.0% 9.4% 10% 9.1% 8.5% 8% 7.1% 7.8% 6.5% 7.1% 6.8% 5.3% 3.6% 5% 3% 1.1% -0.2% 0% -2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 deals 0 deal 1 deal 2 deals 1 deal 2 deals
Slide 27: Our Future Growth
OUR FUTURE GROWTH In thousands sqm 17.0% 18% 240 237 16% 220 200 14% 180 12% 160 8-9% hurdle rate1 10% 140 6.7% 120 8% 125 5.1% 100 5.1% 5.4% 5.1% 4.8% 4.9% 6% 4.5% 80 4.0% 90 90 90 90 4% 60 65 65 55 2% 40 47 20 0% A 2020 A 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F 2029 Sqm total Pipel
Slide 28: Unique Capital Foundation
4| UNIQUE CAPITAL FOUNDATION
Slide 29: Our Unique Capital Foundation
OUR UNIQUE CAPITAL FOUNDATION… EQUITY DEBT 5.4 years 35% €1,490m Weighted average debt debt 3.16% maturity 500 (USPP, credit facility & Weighted average interest rate 390 34% rated EUR bond) (including new rated Bond) 300 130 110 60 No encumbered assets 2025 2026 2027 2028 2029 2030 2031 2032 2033 2
Slide 30: Compelling 2025 Outlook and Medium-Term Guidance
5| COMPELLING 2025 OUTLOOK AND MEDIUM-TERM GUIDANCE
Slide 31: Compelling 2025 Outlook and Medium-Term Guidance
COMPELLING 2025 OUTLOOK AND MEDIUM-TERM GUIDANCE… Outlook 2025 Medium-term guidance • All store revenue and NOI growth: c. 11% • All store revenue and NOI growth: c. 8% • Improvement of Underlying EBITDA margin: +0.5pp • Double-digit underlying EBITDA growth p.a., except in 2026 (mid-single)2 • Adj.
Slide 32: Shurgard's Convincing Investment Case
6| SHURGARD’S CONVINCING INVESTMENT CASE
Slide 33: Shurgard's Convincing Investment Case
SHURGARD’S CONVINCING INVESTMENT CASE… 1| Prime portfolio in the right geographies VERY ATTRACTIVE 5-YEAR PERSPECTIVES1 (2029 vs. 2024) 2| Outperforming same store growth • c. +25% square meters • c. +50% all store revenue 3| Unmatched footage growth of our • c. +60% underlying EBITDA platform with
Slide 34: Q&A
7| Q&A
Slide 35: 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 — Investor Presentation (February 2025) on 6ix