Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released financial results for the fourth quarter and full year that ended Dec. 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 6.5 percent for the quarter. Same-store revenue grew 3.2 percent using CER. All stores’ NOI increased 6.4 percent. Same-store NOI margin grew 1.4 percent to 65.5 percent. Adjusted earnings on the European Public Real Estate Association (EPRA) Index were €31.7 million for the quarter, up 16.2 percent using CER.
Of the seven European markets in which Shurgard operates, The Netherlands showed the largest same-store, year-over-year quarterly revenue gain at 7.6 percent using CER. The United Kingdom was second at 3.2 percent, followed by Belgium at 2.7 percent. Same-store locations in France and Germany performed the weakest, with revenue up 1.5 percent.
For the year, operating-revenue growth was 5.5 percent using CER. Same-store revenue grew 3.2 percent. NOI for the entire portfolio grew 6 percent. Same-store NOI margin rose 1 percent to 64.6 percent. Adjusted earnings on the EPRA Index were €118 million, up 10 percent using CER.
Shurgard opened four locations in Berlin, London and Paris during the year and acquired six properties in Munich and Paris for €59.7 million. The moves expanded the company’s footprint by 44,900 square meters.
“The past year has presented challenges no one could have foreseen. As the COVID-19 pandemic swept across the world, our employees and customers faced social and economic upheaval more acute than any in living memory,” said CEO Marc Oursin. “Amidst these challenges, Shurgard quickly modified the work environments and business processes to ensure the safety of our stakeholders and the continuity of the business.”
Shurgard operates 245 self-storage facilities comprising 1.2 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.
Based in Glendale, Calif., Public Storage has interests in 2,548 self-storage facilities in 38 states, with approximately 175 million net rentable square feet. It holds a 35 percent interest in Shurgard.