Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — Lok'nStore Group — H1 2022 Earnings Presentation
31 slides from Shurgard Self Storage's earnings presentation, Jan 31, 2022
Slide 1: Lok'nStore Group Plc Results for the half-year ended 31 January 2022
Lok’nStore Group Plc Results for the half-year ended 31 January 2022
Slide 2: Lok'nStore Results Highlights
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Lok’nStore Results Highlights Half Year ended 31 January 2022 • Unit Occupied space up 6.0% yoy • Achieved rate per sq.ft £24.22 up 18.5% yoy • Group Revenue £13.38 million up 31.1% • Group Adjusted EBITDA £
Slide 3: Shareholder Highlights – Increasing Asset and Dividend Growth
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Shareholder Highlights – Increasing Asset and Dividend Growth • Adjusted Net Asset Value per share up 48.4% to £8.43 per share (up 15.3% from July 21) • Cash available for Distribution per share 38.0 pence (
Slide 4: Unprecedented Operating metrics
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Unprecedented Operating metrics • Unit Occupied space up 6.0% • Half of stores over 80% occupied • Achieved rate per sq.ft up 18.5% yoy • Average rates to new customers 13.0% above average current rate Slide
Slide 5: Store EBITDA Margins
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Store EBITDA Margins* Store EBITDA Margins 80% * Half Year Jan 2022 70% 68% 65% 64% 64% 63% 63% 63% 63% 61% 62% 62% 60% 59% 59% 58% 57% 57% 56% 55% 55% 56% 54% 53% 50% 51% Store Ebitda Margins 49% 47% 47% 46
Slide 6: Consistent Growth & Record Profits
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Consistent Growth & Record Profits 10-year compound NAV growth of 13.9% £18,000 9 £16,000 8 £14,000 7 £12,000 6 Group EBITDA (£000's) NAV per Share (£'s) £10,000 5 £8,000 4 6 months £6,000 3 £4,000 2 £2,000
Slide 7: Sale and Manage Back of Four stores
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Sale and Manage Back of Four stores 31 January 2022 • Sale price of £39 million • Book value of £13.75 million • 31 July 2021 valuation £31.75 million • 22.8% above 31 July 2021 valuation • 1st half revenue
Slide 8: Strong Balance Sheet
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Strong Balance Sheet Efficient use of capital, low net debt, low leverage • Bank facility increased by £25 million to £100 million and extended by one year to April 2026 • Net debt £22.4 million, down from £
Slide 9: Future growth - driven by fully funded secured new Landmark store programme
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Future growth - driven by fully funded secured new Landmark store programme • 1.93 million lettable sq.ft trading • Current secured pipeline of 12 stores will add 35.5% to total trading space • Increases to
Slide 10: New Leicester store illustrates Landmark store strategy
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 New Leicester store illustrates Landmark store strategy Slide 10
Slide 11: Progressing the new store pipeline
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Progressing the new store pipeline Lok’nStore Bournemouth • 1 new store trading (2 more post balance sheet) • On site at 4 stores – opening 2023 • Stores already on site will increase total Lok’nStore Bedfor
Slide 12: Store Opening Programme by year
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Store Opening Programme by year Owned Stores Total Portfolio Lok’nStore % cumulative % cumulative Financial Store Opening Capital % growth % growth growth growth Year Pipeline Expenditure lettable area letta
Slide 13: Warrington – Now Open
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 WARRINGTON – NOW OPEN Delivering a best in class landmark self storage facility with an eye-catching design. Slide 13
Slide 14: Wolverhampton – Open March 2022
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 WOLVERHAMPTON – OPEN MARCH 2022 Managed store on prominent road leading to a very large out of town destination retail park. Slide 14
Slide 15: Stevenage – Open April 2022
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 STEVENAGE – OPEN APRIL 2022 A landmark location on the busiest roundabout in town. All traffic to the A1 from and to the South of the town must pass this store. Neighbouring Starbucks, BP petrol station, car
Slide 16: Basildon - Opening Autumn 2023
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 BASILDON - Opening Autumn 2023 First purpose built leasehold store above a new retail development in an existing busy retail Centre. Very tall – will be seen from everywhere! Slide 16
Slide 17: Barking
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 BARKING Opening 2024 A landmark location on the exceptionally busy A13, serving the gateway to the east of London. Delivering a best-in-class self storage facility. Slide 17
Slide 18: Increased banking facility – October 2021
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Increased banking facility – October 2021 • Facility increased £25 million to £100 million total – runs to April 2026 • Average cost of debt in period 1.55% • Increased bank facility and sale proceeds cover
Slide 19: Profit & Loss
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Six months Six months Year ended ended ended 31-Jan-22 31-Jan-21 31-Jul-21 £’000 £’000 £’000 Revenue 13,384 10,211 21,892 Retail COS and Operating Costs (5,268) (4,671) (10,001) Group Adjusted EBITDA 8,116 5
Slide 20: Consolidated Statement of Financial Position
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 31- Jan 2022 31-Jan 2021 31-Jul 2021 £’000 £’000 £’000 Non-current assets - Property, Plant & Equipment 255,097 196,107 255,652 Consolidated Financial assets Right of Use assets – 11,809 361 11,137 – 10,503
Slide 21: Consolidated Statement of Cash Flow
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Six months Six months Year Ended ended ended 31 Jan 22 31-Jan-21 31-Jul-20 £’000 £’000 £’000 Cash generated from operations 7,445 6,777 12,187 Income tax paid (250) (225) (800) Net cash from operating activi
Slide 22: Robust Asset Backing
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 31 Jan 31 Jan 31 July Analysis of NAV per Share 2022 2021 2021 £’000 £’000 £’000 Net assets 177,362 123,432 151,259 Add: JLL leasehold valuation 23,075 16,725 22,100 Deduct: leasehold properties and their FF
Slide 23: Business on course to deliver significant growth
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Business on course to deliver significant growth • Increasing customer occupancy driving revenue, pricing and profits • Strong balance sheet and low LTV – financial platform for growth • Growing new Landmark
Slide 24: Lok'nStore Group plc
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Lok’nStore Group plc Executive Chairman Finance Director Andrew Jacobs Ray Davies Email: [email protected] Email: [email protected] Tel: 01252 52 10 10 Tel: 01252 52 10 10 Managing Directo
Slide 25: Calculation of CAD
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Group Group Group Analysis of Cash Available for Distribution (CAD) Year ended Year ended Year ended 31 Jan 2022 31 July 2021 31 July 2021 £’000 £’000 £’000 Group Adjusted EBITDA (Per Statement of Comprehens
Slide 26: Growth of stores by tenure
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Growth of stores by tenure Lok'nStore Number of Stores Trading Since Inception with pipeline of secured stores 60 50 40 Number of Stores 30 20 10 0 Year Managed Leasehold Freehold Slide 26
Slide 27: Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Slide 27
Slide 28: Store Opening Programme
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Store Opening Programme Updated 31st January 2022 Lok’nStore Estimated Capital Expenditure N/A Store Tenure Remaining Size sq. ft. Status Warrington Freehold £0.8 million 58,245 Open January 2022 Stevenage F
Slide 29: Movement of valuation metrics
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Movement of valuation metrics FY2020 FY2021 HY2022 Average Exit Yield Freehold 6.5% 6.15% 5.54% Leasehold 15.6% 23.1% 23% Average Stabilised 84.9% 88.9% 88.6% Occupancy Rate Slide 29
Slide 30: Significant Increase in value of stores
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Significant Increase in value of stores • Total increase in value of trading stores £34.5 million between 31 July 2021 and 31 January 2022 of which £23.3 million is from yield shift • 12.8% LFL increase in v
Slide 31: Store Management Fees
Lok’nStore Group Plc Investor Presentation – Results for the half-year ended 31 January 2022 Store Management Fees Managed Stores 18 1,600,000 16 1,400,000 14 1,200,000 12 1,000,000 10 Number 800,000 £ 8 600,000 6 400,000 4 2 200,000 0 0 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-22 Total