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 half of its 2023 fiscal year, which 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 10% for the period. Same-store revenue grew 6.8% using CER. All stores’ NOI increased 10.7%, and same-store NOI grew 8.1%. Adjusted earnings on the European Public Real Estate Association Index were €71.8 million for the six months, up 13.9% using CER.
Of the seven European markets in which Shurgard operates, Germany showed the largest same-store, year-over-year revenue gain at 15.7% using CER. The Netherlands was second at 13.7%, followed by the United Kingdom at 12.8%. Same-store locations in Denmark performed the weakest, with revenue up 2.6%.
Shurgard has six new developments scheduled to open this year in the Netherlands and U.K., which are expected to add 36,100 square meters of self-storage to the company’s portfolio. It also has six expansions planned across Europe that’ll add 19,500 square meters.
“Shurgard continues to deliver solid growth, as demonstrated by our first half results,” said CEO Marc Oursin. “We have achieved these strong results in Q1 and Q2 despite more difficult and uncertain economic conditions, highlighting the strength of our significant geographic diversity and the resilience of our product.”
Shurgard operates 268 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.