Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - Goldman Sachs has initiated coverage on Shurgard Self Storage (BS:SHURb) SA (BR:SHUR) with a Buy rating and a price target of EUR42.30.
Shurgard is Europe’s largest listed owner of self-storage units, operating 335 stores across seven countries with approximately 1.7 million square meters of net rentable space serving more than 220,000 customers. The company’s €6.25 billion portfolio spans the UK (30% by gross asset value), Benelux (23%), France (19%), Germany (14%), and the Nordics (14%).
Goldman Sachs highlights Shurgard’s dynamic pricing strategy, which prioritizes improving occupancy in new stores ahead of existing customer rate increases and churn management. This approach has enabled the company to achieve higher occupancy levels and stronger top-line growth compared to peers Big Yellow (OTC:YELLQ) and Safestore.
The investment bank forecasts a 2024-27 earnings per share compound annual growth rate of 4.9% for Shurgard, outpacing its peers’ approximately 3.2%. This growth is supported by 4.1% average same-store five-year rent growth and strong performance from non-same store assets.
Goldman Sachs notes that Shurgard’s funds from operations margin of 40% in 2024 is lower than competitors, primarily due to higher tax expenses since the company only maintains REIT status for its UK operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.