Shurgard FY25 Results slightly ahead, growth returns in FY27

Shurgard FY25 EPRA net came ahead of our estimates at €173.1m versus €168.6m expected. The NTA per share rose an impressive 10% year-on-year to €53.30, driven by €519.5m fair-value gains in the portfolio. These gains are largely attributed to operational improvements rather than cap-rate compression. The FY25 same-store operating revenue grew 3.2%, a strong performance that indicates the organic growth remains on track. The EPRA EPS outlook for FY26 gives a range of €1.70 to €1.81 vs. €1.80 expected (KBCS). We believe that the cautious outlook is related to new developments from the LNS acquisitions that are added to the All-Store income at low initial Occupancy and YoC%. Shurgard also expects the EPRA EPS growth to average between 6-8% over FY27-30. The balance sheet offers ample headroom with LTV down slightly from 23.3% to 23.2% year-to-date. SHUR is trading at a discount to NTA per share of roughly 42%, which we believe that should be closer to 10%. Analyst call at 10h00 CET, LINK.