Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released financial statements for the third quarter that ended Sept. 30. In general, the company showed gains in key areas, particularly in operating-revenue growth and net operating income (NOI), according to a press release.
Highlights include a total property operating-revenue growth at constant exchange rate (CER) of 3.6 percent for the quarter, up from 3.3 percent for the first nine months of the year. Same-store revenue growth for the year using CER is at 1.4 percent, in line with company expectations. All stores NOI margin increased by 0.8 percentage points to 62 percent for the year, with 1.8 percentage points growth for the quarter. Adjusted earnings on the European Public Real Estate Association (EPRA) Index are in line with company expectations at €73.9 million for the first nine months of the year. Shurgard joined the EPRA Index on Oct. 24, the release stated.
“After our successful listing, the third-quarter performance is in line with our expectations. Our revenue growth is positively impacted by the increased number of properties in our non-same-store pool. The integration of the five former Pelican properties in Sweden is completed and they are adding to the growth of the company,” said CEO Marc Oursin.
The company opened a new facility in Stockholm in March and another in Neukölln, a borough in Berlin, last month. Another site is under development in Oberschöneweide in the Berlin borough of Treptow-Köpenick, which is expected to open in early 2019, the release stated. Shurgard also acquired a facility in Kensington, West London, for £33 million as well as three ABC Selfstore properties in Central London for £50 million.
“We are strengthening our presence in Central London with the acquisition of three properties from ABC Selfstore. The acquisition of the Kensington property that was under management contract adds further to our presence and revenue growth. Following these transactions, we will have 31 properties in the London area,” Oursin said.
Shurgard operates 229 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 2,615 self-storage facilities in 39 states, with approximately 171 million net rentable square feet. Operating under the Shurgard brand name, the company also has 229 facilities in seven European countries, with approximately 12 million net rentable square feet.