Shurgard Self Storage Limited · EURONEXT:SHUR
Shurgard Self Storage — Lok’nStore Group — FY2021 Earnings Presentation
30 slides from Shurgard Self Storage's earnings presentation, Oct 29, 2021
Slide 1: Lok’nStore Group Plc Results for the year ended 31 July 2021
Lok’nStore Group Plc Results for the year ended 1 31 July 2021
Slide 2: Lok’nStore Results Highlights
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Lok’nStore Results Highlights Year ended 31 July 2021 • Group Revenue £21.9 million up 21.3% 1 • Group Adjusted EBITDA £11.89 million up 23.2% • Operating Profit £7.46 million up 29% • Occupied space up 35.3% y-y •
Slide 3: Shareholder Highlights – Accelerating Asset and Dividend Growth
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Shareholder Highlights – Accelerating Asset and Dividend Growth 2 • Adjusted Net Asset Value per share up 31.6% to £7.31 per share 3 • Cash available for Distribution (CAD) £8.24 million up 33.5% • Cash available fo
Slide 4: Increased banking facility
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Increased banking facility • Execution of £25 million accordion takes total facility up to £100 million • £50m Nat West , £50m ABN AMRO • One year extension executed - now runs to April 2026 • No change in pricing -
Slide 5: Strong Balance Sheet
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Strong Balance Sheet Efficient use of capital, low debt, low leverage • Investing in new Landmark stores - Capex of £26.9 million • Adjusted total assets4 up 28.5% to £294.8 million (2020: £229.4 million) • Net debt
Slide 6: Breakdown of increase in JLL Valuation
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Breakdown of increase in JLL Valuation* Total increase in assets of £66.5 million breaks down as follows • £28.1 million from maiden valuation of 2 new stores opened in Leicester and Salford plus acquisition of Chic
Slide 7: Unprecedented Operating metrics
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Unprecedented Operating metrics • Occupancy up from 69.6% to 85.8% • Occupied space up 35.3% • Half of stores over 90% occupied • New customers up 48% y-y • Pricing up 8.7% y-y (up 10.9% since January) • Prices to n
Slide 8: Consistent Growth & Record Profits
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Consistent Growth & Record Profits Group EBITDA 14000000 12000000 10000000 Group EBITDA (£) 8000000 6000000 4000000 2000000 0 Year Group EBITDA * Introduction of IFRS 16 in 2018 8
Slide 9: Accelerating Dividend Growth
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Accelerating Dividend Growth CAD £8.24 million up 33.5%, Annual Dividend 15 pence up 15.4% 30 25 20 15 10 5 0 2015 2016 2017 2018 2019 2020 2021 January Dividend July Dividend CAD Per Share 9
Slide 10: Future Growth driven by new Landmark stores
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Future Growth driven by new Landmark stores 7 • Current pipeline of 14 stores taking total to 51 • 2 new stores trading plus 1 acquired • On site at 3 stores – opening by early 2022 • 5 new sites acquired • 5 Planni
Slide 11: Store Opening Programme
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Store Opening Programme Updated 29 October 2021 Lok’nStore Store Tenure Capital Expenditure Size sq. ft. Status Leicester Freehold £8 million 60,000 Opened August 2020 Salford Freehold £8 million 53,000 Opened April
Slide 12: Store Opening Programme by year
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Store Opening Programme by year % growth of Financial Year Store Opening Pipeline lettable area in Year FY2022 2 new freehold stores plus 1 managed 9.6% FY2023 4 new freehold stores plus 1 leasehold 15.1% FY2024 3 n
Slide 13: Store Revenue Growth after Opening
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Store Revenue Growth after Opening 13
Slide 14: NAV/Share
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Compound Growth of Net Asset Value per share 10 Year Compound Growth of 12.2% pa 8.00 7.00 6.00 5.00 NAV/Share 4.00 3.00 2.00 1.00 0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year 14
Slide 15: Consolidated Statement of Profit & Loss
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Consolidated Statement of Profit & Loss Year ended 31 July 2021 Year ended Increase/ Year ended 31-Jul-21 (Decrease) 31-Jul-20 £’000 % £’000 Revenue 21,892 21.3 18,041 Retail COS and Operating Costs (10,001) 19.3 (8
Slide 16: Consolidated Statement of Financial Position
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Consolidated Statement of Financial Position As at 31 July 2021 31-Jul 2021 31-Jul 2020 £’000 £’000 Non-current assets - Property, Plant & Equipment 255,652 187,258 Financial assets – 361 Right of Use assets 10,503
Slide 17: Consolidated Statement of Cash Flow
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Consolidated Statement of Cash Flow Year ended 31st July 2021 Year ended Year ended 31-Jul-21 31-Jul-20 Operating activities £’000 £’000 Cash generated from operations 12,187 9,700 Income tax paid (800) (893) Net ca
Slide 18: Robust Asset Backing
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Robust Asset Backing Analysis of net asset value per share 31 July 2021 31 July 2020 Analysis of NAV per Share £’000 £’000 Net assets 151,259 121,382 Add: JLL leasehold valuation 22,100 16,725 Deduct: leasehold prop
Slide 19: Business on course delivering significant growth
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Business on course delivering significant growth • Increasing customer occupancy driving revenue, pricing and profits • Strong balance sheet and low LTV • Growing new Landmark store pipeline to deliver 38% more tota
Slide 20: Lok’nStore Group plc
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Lok’nStore Group plc Chief Executive Finance Director Ray Davies Andrew Jacobs Email: [email protected] Email: [email protected] Tel: 01252 52 10 10 Tel: 01252 52 10 10 Managing Director Neil Newm
Slide 21: Lok’nStore Locations
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Lok’nStore Locations 21
Slide 22: Growth of stores by tenure
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Growth of stores by tenure Lok'nStore Number of Stores Trading Since Inception 60 50 40 Number of Stores 30 20 10 0 Year Managed Leasehold Freehold 22
Slide 23: Environmental Sustainability FY 2021 - extract
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Environmental Sustainability FY 2021 - extract S&P Trucost has found that Lok’nStore assessed and disclosed quantitative data on all its material environmental impacts. We have done so for 20 years Impact Result Com
Slide 24: Social Responsibility with Lok’nStore
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Social Responsibility with Lok’nStore • Lok’nStore academy – We are delighted to report that 46 colleagues have completed National Vocational Qualifications (NVQs) since the Academy opened* • 62% of store managers w
Slide 25: Governance – new Independent Non-Executive Director
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Governance – new Independent Non- Executive Director • Board - new Independent NXD – Jeff Woyda • Experienced listed company finance director (Clarksons) • Reporting and compliance is in line with QCA code 25
Slide 26: Movement of valuation metrics
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Movement of valuation metrics FY2020 FY2021 Average Exit Yield Freehold 6.5% 6.2% Leasehold 15.6% 23.1% All 9.7% 12.0% Average Discount rate Freehold 8.6% 8.2% Leasehold 16.9% 24.4% All 11.4% 13.8% Average Stabilise
Slide 27: Pandemic - Lok’nStore Response
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Pandemic - Lok’nStore Response • All stores have remained open – self storage an “essential service” • Social distancing measures in place - Head Office and Central team largely working remotely • Construction has c
Slide 28: Uses of Lok’nStore under lockdown
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Uses of Lok’nStore under lockdown • Medical wholesalers, NHS hospitals, doctors surgeries, community hospitals • Storing oxygen, ventilators, PPE, air purifiers other medical supplies • A Community Hospital storing
Slide 29: Notes
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Notes 1 Group Adjusted EBITDA - Earnings before interest, tax, depreciation and amortisation – The measure strips away non-cash charges, finance charges and tax and now also reflects the removal of operating leases
Slide 30: Notes (continued)
Lok’nStore Group Plc Investor Presentation – Results for the year ended 31 July 2021 Notes (continued) 6 Store Adjusted EBITDA - is Adjusted EBITDA (see 2 above) before the deduction of central and head office costs. This important information provides an insight into the underlying performance of t