In This Article:
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All Store Revenue Growth: 10.8% year-to-date, with a 16% increase in Q3.
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Same Store Revenue Growth: 4.7% year-to-date, with a 5.2% increase in Q3.
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Same Store Occupancy: 89.8% year-to-date, reaching 90.4% in Q3.
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Same Store NOI Margin: 66.7%, an improvement of 0.3 percentage points.
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All Store NOI Growth: 10.2% year-to-date.
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Adjusted EPRA Earnings: EUR123.5 million year-to-date, a growth of 7.2%.
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Adjusted EPRA Earnings for Q3: EUR45.3 million, a growth of 6.4%.
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Revenue Growth from Acquisitions: 37.4% in the UK and 42.8% in Germany.
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Future Development Pipeline: 405,000 square meters by 2026, representing an investment of EUR1.2 billion.
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Bond Issuance: EUR500 million with a fixed coupon of 3.625%.
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Net Debt to Underlying EBITDA: 6.4 times.
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LokanStore Acquisition: Occupancy increased to 69.2% from 67% post-acquisition.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Shurgard Self Storage Ltd (XBRU:SHUR) reported a strong revenue growth of 16% year-on-year in Q3 2024, driven by portfolio expansion in the UK and acquisitions in Germany.
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The company achieved a high average same store occupancy rate of 89.8%, with a slight increase from the previous year.
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Shurgard's same store NOI and margin improved to 66.7%, reflecting the positive impact of digitalization initiatives on cost structure.
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The company has a robust development pipeline, with plans to deliver over 405,000 square meters of new capacity by 2026, representing a significant investment of EUR1.2 billion.
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Shurgard successfully integrated the LokanStore acquisition, increasing occupancy from 67% to 69.2% within two months, and expects it to be earnings neutral in 2024.
Negative Points
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Shurgard's earnings per share remained stable due to the dilution effect of a 9% increase in new shares from a November 2023 equity raise.
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The company's net debt to underlying EBITDA ratio is currently above the medium-term guidance of 4 to 5 times, due to the acquisition of an immature portfolio.
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Interest expenses have increased due to local store bridge financing, impacting overall financial performance.
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The NOI margin is expected to be slightly below last year, primarily due to the low occupancy and ramp-up phase of the LokanStore acquisition.
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There is a need for continued focus on managing leverage and financing costs, especially with the significant CapEx requirements for the development pipeline.
Q & A Highlights
Q: Can you provide more details on the earnings per share guidance for this year compared to last year, considering LokanStore's impact? A: Jean Kreusch, CFO: We expect earnings per share to be slightly below last year due to the dilution from the equity raise in November. However, we are aiming to align with the consensus prior to the LokanStore acquisition.