Full Year 2024 Shurgard Self Storage Ltd Pre-Recorded Earnings Call Transcript
Key Points
- Shurgard Self Storage Ltd (SSSAF) achieved a significant total revenue growth of 13% for the full year 2024, surpassing guidance.
- The company maintained high occupancy levels, reaching almost 90% over the year, with a consistent positive growth of around 5% for six consecutive quarters.
- Net operating income (NOI) grew by 12.2% year-over-year, reflecting the scalability of Shurgard's platform and the impact of digitalization.
- Shurgard's acquisition of Lok'nStore in the UK and other portfolios in Germany contributed to strong revenue growth, with UK and Germany revenues increasing by 47.3% and 43.7%, respectively.
- The company successfully issued its first bond of EUR500 million with a fixed coupon of 3.625% for 10 years, securing long-term financing and maintaining a strong balance sheet with an investment-grade BBB+ rating from S&P.
- Interest expenses increased significantly to EUR30 million due to additional debt for major acquisitions, impacting financial costs.
- Adjusted EPRA earnings per share decreased by 3% compared to 2023, partly due to the dilution impact from equity raises and scrip dividends.
- The effective tax rate is expected to increase to approximately 18.5% in 2025, up from the 2024 rate of circa 17%.
- Despite strong revenue growth, the net debt to EBITDA ratio remains relatively high at 6.2 times, indicating a need for continued financial discipline.
- Interest expenses are projected to rise further to around EUR50 million in 2025, reflecting the long-term financing of investments, which could pressure profitability.
Good morning, everyone. Thank you for joining us for the Shurgard year-end 2024 results. I'm here with Marc Oursin and Thomas Oversberg.
Before we begin, we want to remind you that all, statements, other than statements of historical fact, included in this call are forward-looking statements. Forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those projected by the statements. This risk and other factors could adversely affect our business and future results that are described in our earnings release and in our publicly reported information.
You can find our press release and an audio webcast replay of this conference call on our shurgard.eu website. With that, I will turn the call over to Marc.
Thank you, Caroline. So let's start with our financial performance of the full year 2024. Starting on page 2. Our
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