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Shurgard Self Storage Releases Earnings Report for 3Q 2023

Article-Shurgard Self Storage Releases Earnings Report for 3Q 2023

Shurgard Self Storage Ltd., the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released financial results for the third quarter of its 2023 fiscal year, which ended Sept. 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 8.3% for the period. Same-store revenue grew 5.1% using CER. All stores’ NOI increased 9.1%, and same-store NOI grew 6.4%. Adjusted earnings on the European Public Real Estate Association Index were €42.7 million for the quarter, up 10.6% using CER.

Of the seven European markets in which Shurgard operates, Germany showed the largest same-store, year-over-year revenue gain at 10.4% using CER. The Netherlands was second at 7.7%, followed by Belgium at 7.5%. Same-store locations in Sweden performed the weakest, with revenue falling 1.2%.

Shurgard has two new developments scheduled to open this year in the U.K., expected to add 14,700 square meters of self-storage to the company’s portfolio. It also has four expansions planned across Europe that’ll add 17,300 square meters.

“Shurgard has delivered another very solid quarterly performance in terms of revenue and earnings growth fueled by our same-store achievements,” said CEO Marc Oursin. “For the third consecutive quarter of the year, we continue to maintain high occupancy and significant in-place rate increases in particular in the Netherlands, Germany, U.K. and Belgium. We experience stable demand across Europe vs. 2022, both from our residential and business customers.”

Shurgard operates 275 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 2,888 self-storage facilities in 40 states, with approximately 206 million net rentable square feet. It holds a 35% interest in Shurgard.