Shurgard 1H24 Results, all eyes on the LnS deal, no pressure to raise equity
Shurgard 1H24 results came only slightly below our estimates, but all eyes are on the Lok'nStore deal and its financing. The 4.5% lfl operating revenue growth came close to our 4.7% exp. UK lfl rent per sqm rose 10.2%. EPRA Earnings grew 8.9% yoy to EUR 78.2m vs. our exp. of 80.8m. Guidance FY24 revenue growth (excl. LnS) increased from 7.5% to 8.0%. The balance sheet offers ample headroom with LTV at 15.4% and expected LTV at 24% post LnS. SHUR also achieved a BBB+ rating, which might indicate Bond market activity. The 2yr 500m bridge loan contains spreads that increase from 70bps to 190bps at maturity. A scrip dividend is planned for September and 70% has already accepted shares. We believe that these measures should ease fears of an imminent ABB that hit the shares after the LnS announcement. The shares are trading at an 18.5% discount to NTA? (Analyst call at 10H00 CET)