Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released interim financial results for the second quarter that ended June 30. In general, the company showed gains in key areas, particularly in operating revenue and net operating income (NOI), according to a press release.
Highlights include an operating-revenue growth at constant exchange rate (CER) of 6 percent for the quarter. Same-store revenue grew 1.4 percent using CER, which was in line with company expectations. All stores’ NOI margin increased by 1.5 percentage points to 66 percent for the quarter, while same-store NOI margin grew 1.7 percent to 66.7 percent. Adjusted earnings on the European Public Real Estate Association (EPRA) Index are in line with company expectations at €28.6 million for the quarter.
“Shurgard delivered on its strategic objectives during the first half of the year, with solid revenue growth boosted by new and redeveloped properties, and a robust pipeline to add to our storage footprint,” said CEO Marc Oursin. “We are able to leverage our proprietary platform to respond quickly to rental demand, and this flexibility helped boost same-store sales in the second quarter. Our strong balance sheet and financial position will allow us to quickly respond to acquisition opportunities, while allowing us to invest in organic growth."
Of the seven European markets in which Shurgard operates, the U.K. showed the largest same-store year-over-year revenue gain at 4.9 percent. Germany was second at 2.6 percent. Same-store locations in Sweden performed the weakest, with revenue falling 2.9 percent compared to the same period a year ago. Same-store revenue in Belgium and Denmark also showed declines.
Shurgard operates 231 self-storage facilities comprising 1.2 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom. Its network serves 150,000 customers and employs more than 700 people. Shurgard is listed on Euronext Brussels under the symbol “Shur.”
Based in Glendale, Calif., Public Storage has interests in 2,444 self-storage facilities in 38 states, with approximately 164 million net rentable square feet. Operating under the Shurgard brand name, the company also has 231 facilities in seven European countries, with approximately 13 million net rentable square feet.