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Shurgard Self Storage Releases First-Quarter 2020 Earnings Report

Update 5/1/20 – Shurgard has released the final financial results for the first quarter, which includes some numbers not included in its initial report. All stores’ net operating income (NOI) increased 6.6 percent using CER. NOI margin for the entire portfolio increased .6 percent to 56.7 percent, while same-store NOI margin grew .9 percent using CER to 57.3 percent. Adjusted earnings on the European Public Real Estate Association (EPRA) Index were €24.1 million for the quarter, up 8.4 percent using CER.

The report also included an update on the operational impact from the coronavirus pandemic since the quarter ended. Same-store occupancy remained stable at 87 percent on April 26, gaining .3 percent from a year ago. Rental collection across the company’s portfolio in April was 93.4 percent.

Shurgard has 19 self-storage development projects in its pipeline, which have experienced some delays. Four projects comprising 19,600 square meters have been postponed until 2021, officials said.

4/8/20 – Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released its financial results for the first quarter of 2020, which ended March 31. In general, the operator showed gains in key areas, particularly operating revenue, according to a press release. Officials also reported on the early impact of the coronavirus (COVID-19) pandemic on company performance.

Highlights include an operating-revenue growth at constant exchange rate (CER) of 5.4 percent for the quarter. Same-store revenue grew 4.6 percent using CER. Of the seven European markets in which Shurgard operates, the U.K. showed the largest same-store, year-over-year quarterly revenue gain at 6.1 percent using CER. Germany was second at 5.4 percent, followed by The Netherlands at 5.1 percent. Same-store locations in Denmark performed the weakest, with revenue growth up .4 percent, while same-store revenue in Belgium was up 2.8 percent.

The numbers were positive despite operational adjustments and government orders in reaction to the spread of COVID-19, which began to affect Shurgard markets in the middle of March. “I would like first to thank all Shurgard employees for their engagement, commitment and capable actions to manage the events in these difficult times,” said Marc Oursin, CEO. “Shurgard disposes of a resilient business model, thanks notably to its geographical spread, a high-quality real estate portfolio, an efficient and digitalized platform with a robust balance sheet in order to bridge this difficult period. Please stay safe and healthy.”

Self-storage locations in Belgium and France have been in lockdown since mid-March, with U.K. facilities having received similar orders on March 24. The governments in Denmark, Germany, The Netherlands and Sweden have taken a more “flexible approach to containment measures,” officials said.

Tenant access across the self-storage portfolio remains possible due to automated access control that doesn’t require personal interaction with staff. Customers can continue to reserve units online and move in using the company’s contact-free program. Shurgard has also reinforced sanitation across the portfolio with frequent cleanings, officials said.

“We have taken various measures to ensure the protection of our employees, such as office closures, single-manned properties, adjusting schedules and providing protection equipment. We have guaranteed the salary of all our employees for the coming months in order to secure short- and long-term retention of our manpower,” officials said. “In France, most of our property employees are working from home. Our Belgian properties are also serviced by home-workers. In the U.K., we continue to have staff onsite behind closed doors, with all the safety measures mentioned. In Brussels, our Shared Service Centre has been closed since mid-March and all employees are home working as well. We have been able to organize this major transformation very efficiently due to our performing IT platform.”

Shurgard operates 235 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 2,483 self-storage facilities in 38 states, with approximately 169 million net rentable square feet. It holds a 35 percent interest in Shurgard.

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