Shurgard 9M24 Results, slight increase of FY24 outlook, LnS is humming

Shurgard 9m24 results came above our cautious estimates after the LnS acquisition (2 months in 3Q24). Shurgard raised the FY24 guidance thanks to its financing activities on the deal. The occupancy impact from the LnS integration also has been well managed. The FY24 EPRA net will now be in line with pre-LnS consensus instead of down single digits. The 9 month lfl operating revenue growth of 4.7% matched our expectation. EPRA Earnings grew 7.8% yoy to EUR 123.5m vs. our exp. of 120.8m. The balance sheet offers ample headroom with LTV at 24.1% in-line with guidance of 24.0% post-LnS. SHUR also announced the acquisition of a GBP 17.7m managed property by LnS 50km south-west of London at a 7.5% yield. This is 1 of 18 managed properties by LnS. We believe they will continue add-on acquisitions in their 4 core regions as scale drives profitability. SHUR is trading at a 13% discount to NTA. (Analyst call at 10H00 CET)