Report
Shurgard FIRST LOOK : 1H23 Results, Another Stellar Performance
Shurgard 1H23 results continue unabated on their stellar growth track, with a 7.4% lfl operating revenue growth. The EPRA Earnings amounted to EUR 30.2m (+12.1% yoy). The outlook for 2023 confirmed the 8.0% property revenue growth. The company believes it can raise yields for new projects from a 7-8% range to 8-9% range. The company also expects to expand its operating margin by 0.2%. These figures confirm that growth momentum continues into FY23. Capex estimated at EUR 150m or 70k sqm (Dev.+Acq.). Balance sheet remains strong with LTV at 18.0%.The current demographic trends support the growth of their business and the roll-out of the e-rental platform gains traction against smaller competitors. The overall profitability is also mainly driven by higher rents per sqm as occupancy remains at a high level. We maintain our target price at EUR 58 and rating at BUY.
Investment case: As a natural consolidator in an undersupplied market, Shurgard's growth potential is huge. We like its economies of scale, increasing revenue from customers, and the continued digitisation of operations. Despite the growth potential, we argue Shurgard is a defensive stock. The risk of oversupply in the market is low and Covid appears to have had little impact. Shurgard is well positioned to weather any (tapering) storm. However, the market is currently digesting the impact of higher interest rates on real-estate stocks as the FED realises it has been too complacent on inflation. Although Shurgard can recuperate a large part of the current inflation spike.
Underlying
SHURGARD SELF STORAGE LIMITED
Provider
KBC Securities
We are a financial services provider for several types of professional clients, each with distinct needs.
Wim Lewi
Other Reports on these Companies
Other Reports from KBC Securities
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.