Report
Shurgard UK Competition increased as Shurgard turns on the heat
Shurgard aims to be a market leader in each of its markets and cracking the UK causes some pain. We adjust our FY25-26 estimates down as we notice SHUR is competing to maximise its occupancy% and offers discounts until their target is met. This fits with their strategy to gradually increase rent/sqm afterwards thanks to stickiness of storage. Market share and occupancy% are 2 important levers for its platform's long term profitability. In this note, we stretched our financials horizon into FY28, to capture the value of the current UK expansion strategy that trades Rent/sqm for occupancy%. While this strategy has a significant negative impact on our FY25-26 EPRA EPS estimates, the impact on our DCF valuation is nihil. We repeat our BUY recommendation and EUR 54 target.
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
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