Shurgard Self Storage Releases First-Quarter 2024 Financial Results

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 2024 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 7.1% for the period. Same-store revenue grew 4% using CER, fueled by an average in-place rent increase of 4.8%. All stores’ NOI increased 5.9%. Adjusted earnings on the European Public Real Estate Association Index were €34.2 million for the quarter, up 12.6% using CER.

Of the seven European markets in which Shurgard operates, Germany achieved 8.6% same-store revenue growth and an increase in rental rates of 9.2% over the same period in 2023. Revenue in the Netherlands increased by 7.1% over the same quarter last year, rental rates grew by 6.8% and average occupancy remained stable at 90.7%. Belgium’s revenue grew 6.3%, which was supported by an 8.9% increase in rental rates. Occupancy was 91.1%. In Denmark, rental rates rose by 5.6% over the prior year, resulting in revenue growth of 4.7%.

Shurgard plans to open four facilities this year comprising 233,576 square feet in Berlin, London and Randstad, Netherlands. In addition, it has six expansions underway at properties in seven markets. Together, they’ll add 128,090 square feet to its portfolio.

“Our company has demonstrated again during Q1 2024 its growth capacity and resilience in all markets. In addition, Shurgard is building its future expansion with a very solid pipeline for the coming years,” said Shurgard CEO Marc Oursin. “The roll out of our digitalization across the platform strengthens our operational performance—revenue growth and costs management—with an appreciated customer journey.”

Shurgard operates 282 self-storage facilities comprising 1.4 million net rentable square meters in Belgium, Denmark, France, Germany, Netherlands, Sweden and the United Kingdom.

Based in Glendale, California, Public Storage has interests in 3,044 self-storage facilities in 40 states, with approximately 218 million net rentable square feet. It holds a 35 percent interest in Shurgard.

Source: Shurgard Self Storage Ltd., First Quarter 2024 Results