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Shurgard Self Storage Releases Third-Quarter 2024 Financial Results
ISS Staff
November 5, 2024
2 Min Read
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 2024 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 16% for the period. Same-store revenue grew 5.2% using CER, fueled by an average in-place rent increase of 5.5%. All stores’ NOI increased 14.9%. Adjusted earnings on the European Public Real Estate Association Index were €45.3 million for the quarter, up 6.4% using CER. In addition, occupancy remains high, with same-store averages of 89.8% and an increase of 0.3% in average net rented square foot over the same period last year.
Shurgard’s acquisition of the Lok’nStore portfolio in August doubled the company’s presence in the United Kingdom. The company reported a 69.2% all-store average occupancy rate at the end of September. It expects to deliver at least 12% total revenue growth for the year, the release stated.
Of the seven European markets in which Shurgard operates, Germany achieved 9.7% same-store revenue growth and an increase in rental rates of 9.4% over the same period in 2023. Revenue in the Netherlands increased by 8.2% over the same quarter last year. Belgium’s revenue grew 6%, which was supported by an 9.3% increase in rental rates. Occupancy was 91.4%.
In France, same-store revenue grew by 2.3% compared to the same period in 2023. It was driven by a 2.8% rise in average rent and an increase in occupancy to 89.2%. The company also reported revenue growth of 5% in the United Kingdom over the previous year. It’s being driven by a 7% increase in rental rates; however, the average occupancy decreased to 87.3%. In Sweden, revenue increased by 0.6% and occupancy reached 91.4%. Rental rates rose in Denmark by 5.6% in the first nine months of 2024, partly offset by an occupancy decline.
Shurgard plans to add nearly 253,000 square feet to its portfolio in 2024 through redevelopments, new construction and acquisitions. It also has several developments slated to open next year in England, France, Germany and the Netherlands.
“This third quarter of the year 2024 has seen major strategic achievements for our company, combined with strong operational performance in terms of revenue and earnings growth,” said CEO Marc Oursin. “I take this opportunity to thank all the teams from Shurgard on behalf of our board of directors for these amazing achievements within such a short period of time.”
Shurgard operates 335 self-storage facilities comprising 1.6 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, Third-Quarter 2024 Results
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