Shurgard Self-Storage reports Q3 earnings with slowing growth

Investing.com -- Shurgard Self-Storage Ltd (BR:SHUR) on Thursday reported its 9-month 2025 earnings showing a 3.8% year-over-year increase in EPRA earnings at constant exchange rates, with underlying EBITDA up 13.7%.

The company’s adjusted EPRA earnings reached €128 million for the first nine months of 2025, while earnings per share grew 2.0% to €1.29, impacted by the scrip dividend. This performance represents a slight acceleration from the 2.7% growth seen in the first half of 2025, though it remains below the 7.2% growth recorded in the same period of 2024.

Property operating revenue increased by 13.6% year-over-year to €336.5 million, which includes a more modest 7.3% growth in the third quarter. The company’s underlying EBITDA margin improved by 10 basis points year-over-year to 58.2%.

Shurgard stated it remains "on track to deliver 2025 outlook," which includes approximately 11% growth in all-store revenues and NOI at constant exchange rates, a 50 basis point improvement in underlying EBITDA margin, and about €50 million in net financial expenses.

However, the company experienced a slowdown in same-store revenue growth, which came in at 3.9% for the nine-month period compared to 4.7% in the first half of 2025.

This deceleration was particularly notable in the UK, where growth turned slightly negative at -0.1% in Q3 versus +1.7% in Q2, and in the Netherlands, which saw a decline of 2.7% in Q3 compared to 6.4% growth in Q2.

Same-store average in-place rent growth also moderated to 2.8% in the third quarter from 4.2% in the second quarter. The average occupancy rate declined by 60 basis points year-over-year in Q3 to 89.5%, with the UK and Netherlands experiencing drops of 100 and 130 basis points, respectively.

The Lok’nStore portfolio, which Shurgard acquired, showed improving occupancy, reaching 80% compared to 77% in the first half of 2025 and 72% at the end of December 2024. The company expects this to reach approximately 90% by December 2026.

Shurgard’s EPRA Net Tangible Assets per share increased by 11.0% year-over-year to €50.8. The company reported a cash position of €139.8 million at the end of September 2025, slightly down from €149.2 million at the end of June. Its loan-to-value ratio stood at 23%, while the net debt to underlying EBITDA ratio improved to 5.9x.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.