Report
Shurgard Model Update reflects 1H26 UK development acceleration
Shurgard continues its full throttle UK expansion over 1H26 with the completion of 5 developments (LnS pipeline) and 2 from its original pipeline. Last week, the company also added a development in Manchester. The 1H26 completions have an impact on its short term all-store metrics as new developments demand an aggressive pricing policy to get occupancy and YoC% up. This process can take up to 5-7 years. Over that time, the YoC% on new developments increases from negative to double digit. We believe that while Public Storage supports this strategy, investors take a more short term view and have discounted the shares to >40% on NTA. We believe the historic pattern of average 10% FFO/share growth will return over FY27-28. We adjust our EPRA EPS estimates, but maintain our €48.0 TP.
Underlying
SHURGARD SELF STORAGE LIMITED
Provider
KBC Securities
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Wim Lewi
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