Shurgard Self Storage Ltd., the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released financial results for the first quarter of its 2023 fiscal year, which ended March 31. 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 10.6% for the period. Same-store revenue grew 7.4% using CER. All stores’ NOI increased 11.5%, and same-store NOI margin grew 1.2% to 60%. Adjusted earnings on the European Public Real Estate Association Index were €30.2 million for the quarter, up 12.1% using CER.
Of the seven European markets in which Shurgard operates, Germany showed the largest same-store, year-over-year revenue gain at 14.1% using CER. The Netherlands was second at 9.8%, followed by the United Kingdom at 8.8%. Same-store locations in Sweden performed the weakest, with revenue up 2.9%.
Shurgard has seven new developments scheduled to open this year in the Netherlands and U.K., which are expected to add 39,200 square meters of self-storage to the company’s portfolio. It also has five expansions planned across Europe that’ll add 10,500 square meters.
“Q1 is another strong quarter for our company and in line with our expectations,” said CEO Marc Oursin. “Shurgard continues to demonstrate its ability to grow and remain resilient during these challenging times. Our significant geographical spread is a clear benefit to deliver this performance as well as the optimized management of our platform.”
Shurgard operates 267 self-storage facilities comprising 1.4 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.
Headquartered in Glendale, California, Public Storage has interests in 2,877 self-storage facilities in 40 states, with approximately 205 million net rentable square feet. It holds a 35% interest in Shurgard.