Shurgard has released it Q1 2025 financial results.
“During Q1 2025 Shurgard has shown a continued strong performance, in line with the full year 2025 outlook we shared a couple of months ago. All markets demonstrated a robust performance, and in particular Sweden showing a significant catch-up. This resulted in a major growth in revenues and EBITDA for both all stores and same stores. Our growth plan is showing momentum with the completion of the integration of Lok’nStore and the German acquisitions of 2024. Of course, the macro environment is now very different than the start of the year. However, Shurgard is well positioned in terms of commercial and financial strengths to take advantage of the coming quarters as we did in the past through the different crisis we faced with our committed and engaged teams.”
- Marc Oursin, Shurgard Chief Executive Officer
Key Highlights:
- The portfolio expanded to 318 stores in Q1 2025 (+39 stores or +13.5% rentable sqm vs. Q1 2024), resulting from a strong pipeline of acquisitions and (re)developments, specifically in the UK and Germany.
- Despite the portfolio growth, closing occupancy ended at similar levels versus prior year (86.0% or -0.6pp) and inplace rent grew by 4.1%. This resulted in an all store property operating revenue growth of 18.9% in the first quarter of 2025, reaching €111.6 million.
- The underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 20.6%, reflecting a scalable platform, digitalization initiatives and cost management.
- Adjusted European Public Real Estate Association (EPRA) earnings delivered +3.7% in Q1 2025 vs. Q1 2024, mainly driven by the anticipated and guided increase our debt levels, while earnings per share grew vs prior year by 2.4%, including the slight dilution from the scrip dividend.
Lok’nStore acquisition Update:
- Portfolio acquired on August 1st, 2024. Doubled Shurgard’s presence in the UK and accelerated Shurgard’s growth strategy with the acquisition of 28 stores located in London, South-East and greater Manchester regions and 17 stores under management contract
- On track to deliver:
– 76% all store average occupancy rate end of March 2025, compared to 72% at the end of December 2024 (vs. 67% at acquisition): on track to achieve 90% occupancy by December 2026
– Successful roll out of Shurgard strategy: 50% of new contracts made via e-rental, ramp up of stores in line with expectations, similar customer dynamics to our London stores
– Rate increases at 2% CAGR to stabilization in 2029-2030 on track, with Existing Customer Rate Increases (ECRI) and effective cost management
– Estimated synergies of €4-5 million: on track to deliver fully in 2025
– Expected to be accretive in 2025.