Shurgard Model update as LnS integration kicks off

One can't bake an omelette without breaking eggs. Shurgard aims to be a market leader in each of its markets and cracking the UK will take some pain. We believe the relative high valuation in the past was justified as SHUR delivered consistent above market growth from its platform through its development pipeline. Market share and occupancy% are 2 important levers for a platform's profitability. In this note, we integrated the Lock'nStore (LnS) pipeline into our model. The own developments and selective M&A will continue in the background and combined with LnS will provide sufficient organic growth to justify our EUR 54.0 target price. Shurgard didn't break the bank with the LnS acquisition and has ample headroom on its balance sheet to execute its pipeline. We repeat our BUY recommendation.