Shurgard Self Storage S.A.

At constant exchange rates, H1 2026 property operating revenue increased 3.3% to EUR 229.6 million versus EUR 222.2 million in H1 2025. Net operating income increased 0.5% to EUR 140.2 million from EUR 139.5 million, while underlying EBITDA was EUR 124 million, down 0.6%, and adjusted EPRA earnings per share declined from EUR 0.82 to EUR 0.77, down 5.7%. Average rented square meters rose 3.4%, average occupancy was 83.6%, and average in-place rent was stable. For the balance sheet, investment property was EUR 7.27 billion, EPRA NTA per share was EUR 53.64, net debt was EUR 1.73 billion, LTV was 23.7%, and net debt to underlying EBITDA was 6.5x. For 2026, management revised guidance to all-store revenue growth of 3.5% to 4.5% at constant exchange rates, said square meter portfolio expansion remains within initial guidance, and maintained leverage targets of LTV below 25% and net debt/EBITDA of 5 to 6x, along with a cash dividend of EUR 1.17 per share per year.

Marc Oursin framed 2026 as a transition year: revenue growth improved in Q2, but not enough to meet earlier expectations, so the company lowered its operational outlook. He emphasized that growth is being driven by ramp-up of new stores, especially in the U.K. and Germany, and said the secured pipeline should deliver EUR 35 million of additional NOI at maturity. His tone was cautious but constructive, repeatedly pointing to stronger H2 momentum, pricing actions, occupancy efforts, and cost actions as the levers for 2026 and beyond.

Thomas Oversberg highlighted that H1 revenue rose 3.3% to EUR 229.6 million and NOI rose 0.5% to EUR 140.2 million, but margins were pressured by a 6.1% larger rentable-square-meter base, inflation, and deliberate investments. He broke down EPS headwinds into roughly EUR 0.01 from G&A, EUR 0.03 from higher net interest expense, and about EUR 0.02 from higher weighted average share count after the 2025 scrip dividend, which has now been discontinued. On liquidity and capital structure, he cited EUR 795 million of committed liquidity, EUR 70 million of cash, a BBB+ rating with stable outlook, 100% unencumbered assets, fixed cost debt of 3.33%, and weighted average debt maturity of 6.9 years.

Analysts focused on why guidance was cut after Q1 had seemed broadly manageable, and management said the Q2 acceleration still fell short of what was needed to close the gap by year-end. Questions also probed higher OpEx, and Thomas said most costs were in line with expectations, with the main exception being higher marketing spend to drive conversion and occupancy. Analysts challenged the pause on medium-term targets and the higher 9% to 10% NOI-yield hurdle rate; management said it needs more time and a better view into early 2027, while stressing that the hurdle reflects market-required returns and that clusterization, better pricing, and cost efficiencies can still support it. There was also discussion of competition in the U.K., Germany, France, Sweden, and Belgium, with management saying more aggressive competitor pricing forced Shurgard to react, but that H2 momentum is improving.