Shurgard — Interim / Quarterly Report 2024

Aug 14, 2024

JANUARY 1, 2024 TO JUNE 30, 2024

AGENDA TODAY

• •Our continued strong execution
• •Our financial strength momentum
• •Overview of acquired modern Lok'nStore portfolio
• •Our growth potential

HIGHLIGHTS: H1 RESULTS(1)

GROWTH ACROSS ALL MARKETS

• Revenue up by 8.2%, in H1 2024, to €189.3 million. Supported by continued strong growth in Germany, the UK, the Netherlands, and Belgium. Continuing the positive trends of Q4-2023 and Q1-2024;
• Same store property revenue growth of 4.5%, fueled by positive pricing dynamics enabling a 5.1% average rate increase;
• Occupancy remains high with same store average of 89.5% (90.1% in H1 2023) and an increase of 0.2% in average net rented sqm over last year;
• Normalization of revenues growth: third quarter in a row with a stable positive growth rate between 4% and 5% (Q4-2023: 4.2%, Q1-2024: 4.0%, Q2-2024: 4.9%), significantly above self-storage peers.

(1) All figures in the highlights are at Constant Exchange Rate

CONTINUING THE POSITIVE TRENDS OF Q4-2023 AND Q1-2024

Variances calculated on data at budget exchange rate

2024 SS definition

Q1 AND Q2 2024 SAME STORE REVENUE IS CONFIRMING THE END OF THE 2023 DECELERATION

HIGHLIGHTS: H1 RESULTS(1)

DIGITALIZATION AND LEADING OPERATIONAL PLATFORM

• Stable NOI margin at 62.9%, with same store operating expenses growth of 4.4%, reflecting the positive impact of digitalization initiatives on our cost structure. Same store NOI margin of 64.7% stable vs. prior year;
• 7.5% growth in net operating income (NOI);
• €78.2 million of adjusted EPRA earnings, representing a growth of 7.7%; €0.80 adjusted EPRA earnings per share(2) ; 1 cent lower than last year due to the equity raise of November 2023;

(2) Adjusted EPRA earnings per share in euros (basic) is calculated as adjusted EPRA earnings divided by the weighted average number of outstanding shares

⁽¹⁾ All figures in the highlights are at Constant Exchange Rate

DELIVERING THE DIGITAL CUSTOMER EXPERIENCE

Finding a Space	Lease Execution	Account Management	Daily Property Use
Website	Digital Rental 50% ~ Agreement of moves-in	Comprehensive Mobile App	Digital Property Access1
	E-rental penetration (as of June 30) 60%
Industry-leading platform	50% 40%	High customer utilization and growing…	Enabling customer access and data on property utilization
 Mobile centric	30%	40% ~
 Pricing transparency	20%	of our customers use
 Size help	10%	the application
 Optimized traffic acquisition and lead generation strategy	0% 2020 2021 2022 2023 2024	 Account management, customer care, and digital property access functionality	 App-only access in testing in selected properties

DIGITAL CUSTOMER EXPERIENCE ENABLES OUR OPERATING MODEL TRANSFORMATION ⁶

HIGHLIGHTS: H1 RESULTS

FUTURE GROWTH SUPPORTED BY ATTRACTIVE DEVELOPMENT PIPELINE

• Delivering new capacity from 2024 to 2026 representing c. 365,000 sqm (26.2% of our net rentable sqm);
• Total investment of c. €1,047 million of direct project cost;
• Expected yield at maturity of c. 8-9%;
• Additional NOI at maturity of c. €90 million per year;

LARGEST SQM EXPANSION P.A. IN THE INDUSTRY

F = Forecast (excluding future acquisitions)

VERY LARGE PIPELINE, OVERDELIVERING OUR GUIDANCE ⁸

HIGHLIGHTS: Q2 RESULTS (VS. Q2 2023)

• 9.2% revenue growth, supported by double digit growth in Germany, but also significant progression in the Netherlands, Belgium and the UK;
• 8.8% growth in NOI;
• 4.9% same store revenue growth;
• 89.8% same store average occupancy rate (90.4% in Q2 2023) and an increase of 0.4% in average net rented sqm over last year;
• 5.4% same store average rent growth, demonstrating continued pricing power;
• Delivered €43.9 million of adjusted EPRA earnings, representing a growth of 4.2%.

2024 OUTLOOK EXCLUDING LOK'NSTORE ACQUISITION

IMPROVED 2024 REVENUE GUIDANCE:

• Based on our strong results, the previous guidance of c. 7.5% will be exceeded, and we expect to deliver at least 8% total revenue growth for the year 2024;

2024 GUIDANCE REMINDER:

• In 2024, we are targeting a stable NOI margin, having delivered an increase of 2.7pp over three years, well ahead of our medium-term guidance;
• We plan to add c. 90,000 sqm via redevelopments, new developments and acquisitions, investing in excess of €300 million;
• Our average effective income tax rate is expected to be c. 17% in 2024 (based on Adjusted EPRA Earnings before tax);
• Shurgard intends to declare a dividend of €1.17 per share for the fiscal year;

INCOME STATEMENT

	Q2
	2024	2023	% var.	% var.CER	2024	2023	% var.	% var.CER
REAL ESTATE OPERATING REVENUE1	96.0	87.6	9.5%	9.2%	189.4	174.4	8.6%	8.2%
Real estate operating expenses	(30.5)	(27.6)	10.6%	10.1%	(70.2)	(63.9)	9.8%	9.4%
NET INCOME FOR REAL ESTATE OPERATIONS	65.5	60.0	9.1%	8.8%	119.2	110.4	7.9%	7.5%
% margin	68.2%	68.5%	-0.3pp	-0.3pp	62.9%	63.3%	-0.4pp	-0.4pp
G&A and other	(7.0)	(5.5)			(13.3)	(11.5)
EBITDA	58.4	54.5	7.1%	6.8%	105.8	99.0	6.9%	6.5%
% margin	60.9%	62.2%			55.9%	56.7%
Adj. EPRA EARNINGS	43.9	41.6	5.6%	4.2%	78.2	71.8	8.9%	7.7%
Adj. EPRA EARNINGS PER SHARE (BASIC)	0.45	0.47	-3.3%	-4.6%	0.80	0.81	-0.3%	-1.4%

1 Includes property operating revenue and other revenue. The latter mainly consists of management fee revenue and other, non-recurring, income resulting from operations.

SAME STORE PROPERTY OPERATING REVENUE

In € millions		Q2				H1
(at actual exchange rate)	2024	2023	% var.	% var.CER	2024	2023	% var.	% var.CER
France	20.2	19.6	3 0%	3 0%	40.2	39.4	2 0%	2 0%
The Netherlands	18.9	17.9	6 0%	6 0%	37.6	35.3	6 5%	6 5%
UK	17.8	16.5	7 5%	5 5%	35.3	32.7	8 0%	5 3%
Sweden	11.1	11.1	-0 4%	0 0%	22.2	22.5	-1 4%	-0 8%
Germany	8.2	7.5	10 6%	10 6%	16.2	14.8	9 6%	9 6%
Belgium	7.1	6.6	7 6%	7 6%	14.0	13.1	6 9%	6 9%
Denmark	4.1	3.9	6 0%	6 2%	8.2	7.8	3% 5	4% 5
Total	87.4	83.0	5 3%	4 9%	173.8	165.6	4 9%	4 5%
Same store average occupancy Same store average in-place rent (€/sqm/year)	89.8% 275.6	90.4% 260.6	-0.5pp 5.8%	5.4%	89.5% 275.2	90.1% 260.7	-0.5pp 5.6%	5.1%

SIGNIFICANT GROWTH AND ACCELERATION FOR MOST MARKETS ¹²

BALANCE SHEET

In € millions At actual exchange rate Investment property Other assets1 Trade and other receivables	Jun 2024 5,397.7 62.6 19.7	Dec 2023 5,035.8 40.3 19.7	% var.	€800m USPP indebtness (fixed interest rate) No encumbered assets	€130m Drawn on a €450m floating interest committed bank loan facility (120bps margin on EURIBOR, at end of June 2024 down to 100bps with BBB+)	2.39% Weighted average interest rate
Cash and cash equivalents TOTAL ASSETS Equity Loans and borrowings Deferred tax liabilities and other2 Trade and other payables TOTAL LIABILITIES	209.6 5,689.6 3,773.3 927.8 845.6 142.9 5,689.6	258.1 5,353.9 3,622.1 798.4 809.7 123.7 5,353.9	6 3% 6 3%	€250m RCF line	€209.6m Available cash at end of June 2024	3.7 years Weighted average maturity at end of June 2024
EPRA net tangible assets (NTA) EPRA NTA per share (diluted) (in €) Loan-to-value (LTV) Exit capitalization rate3 1. Consist mainly of other current assets (mainly prepayments), intangible assets and other 2. Other consists mainly of current and non-current lease liabilities	4,492.5 46.02 15.4% 5.12%	4,307.8 44.07 13.0% 5.22%	4 3% 4 4% 2.4pp -0.1pp	3.8x/15.4% Net Debt to EBITDA / LTV at end of June 2024	Debt maturity	5.12% Exit Capitalization rate -0.1bps YoY at end of June 2024

1. As determined by our external valuation experts from Cushman & Wakefield

GROWTH ORIENTED BALANCE SHEET –LOW LEVERAGE, SPREAD MATURITIES ¹³

STRONG BALANCE SHEET, WITH A MODEST LEVEL OF GEARING AND SIGNIFICANT LIQUIDITY

• Shurgard has a cash balance of €209.6 million(1) and a low LTV: 15.4%(1) positioning the business to support further growth and refinancing.
• Net debt/Underlying EBITDA: 3.8x(1) (2) and ICR (interest coverage ratio): 13.0x(1) (3) ;
• Post Lok'nStore acquisition LTV: c. 24% and Net debt/Underlying EBITDA: c. 6x(2) ;
• First European self-storage company with a strong investment grade rating (BBB+, stable outlook) from S&P;
• A gross dividend of €0.58 per share–payment on or about September 26, 2024;
• Optional scrip dividend will be offered–modalities will be communicated on September 5, 2024;

(1) As of June 30, 2024.

• (2) Net debt to EBITDA ratio is calculated as the net financial debt (including leases) divided by trailing 12 months underlying EBITDA.
• (3) ICR (interest coverage ratio) is calculated as underlying EBITDA divided by net interest expenses excluding foreign exchange rate fluctuations, for the reporting period.

FIRST EUROPEAN SELF-STORAGE OPERATOR AWARDED A BBB+ (STABLE OUTLOOK) CREDIT RATING BY S&P

• Assigned 'BBB+' Rating–Stable Outlook
• Rating Framework:
  • LTV: 25% 35%
  • Net Debt / EBITDA 4.0x –7.5x
  • Interest coverage ratio: 3.0x –3.8x
  • PSA support
  • Execution of committed financing strategy
• The strong investment grade rating will further widen our access to debt capital markets, incl. rated public bond market.
• BBB+ rating allows reduction in credit spread of the Bank Credit Facility from currently 120bps to 100bps, as of the next interest period in Q4.

OPTIONAL SCRIP DIVIDEND WILL BE OFFERED

• A gross dividend of €0.58 per share –payment on or about September 26, 2024.

• The Board also decided that it will offer shareholders the option of getting cash or shares ("scrip dividend").

• Major shareholders confirmed their intention to opt for shares in lieu of a cash dividend, and representing around 70% of the total dividend payout.

• Modalities will be communicated on September 5, 2024.

ACQUISITION OF LOK'NSTORE–A MODERN, HIGH QUALITY, PURPOSE- BUILT PORTFOLIO AND ATTRACTIVE PIPELINE

ACQUISITION PROVIDES AN ADDITIONAL 171,000 SQM REPRESENTING TWO FULL YEARS OF SHURGARD'S TARGETED ANNUAL EXPANSION –TOTAL ALL-IN COST OF €613M WITH A YIELD AT MATURITY OF C. 8%

HIGH-QUALITY PORTFOLIO

	Portfolio characteristics (excl. management contract, including pipeline)
Freehold (% of sqm) 82% (vs. 93% for Shurgard)		Purpose built 76% (vs. 63% for Shurgard)		Modern 43% (Built since Jan 2022 vs c. 13% for Shurgard in the UK)		Average sqm c. 5,000 sqm (vs. c. 5,100 for Shurgard)		Average unit size 6.9 sqm (vs. c. 5.0 sqm for Shurgard)
				High-quality and visibility of assets
BASILDON Successfully acquired leasehold (August 2024)			HEMEL HEMPSTEAD				KETTERING
PETERBOROUGH			WELLINGBOROUGH				STEVENAGE

ATTRACTIVE UNDERLYING MARKET DYNAMICS AND DEMOGRAPHICS

HIGHLY CONCENTRATED AND EFFICIENT PORTFOLIO STRONG DEMOGRAPHICS AND MARKET DYNAMICS

1. Excludes all stores under management contract

2. Competition intensity represents the number of inhabitants per self-storage unit

	London	London / South East / Manchester
Proportion in Capital & Tier 1 cities / regions	94%	89%1
Competition intensity within 20 minutes catchment area2	43	451

HIGH QUALITY REAL ESTATE
	Q1 2024	H1 2024 (incl. pipeline)
% Freehold	93%	82%1
% Purpose built	63%	76%1
Average age	15 years	12 years1
Avg sqm per asset	5,100 sqm	5,000 sqm1
EPC rating	70% of buildings >= EPC B	89% of freeholds >= EPC B

ACHIEVING A LOK'NSTORE NOI YIELD OF 8% VIA SHURGARD

Revenue increase (1)

1, Excludes all stores under management contract

In place rent Same store portfolio of each year (in-place rent €/sqm/year)

Opex reduction

OPERATIONAL INTEGRATION COMPLETED

• •Integration of validated data into our CRM system as of D+1 (August 1)
• •Integration on our website as of D+1 (August 1)
• •Integration on our pricing model with promotions in place
• •E-rental availability as of D+2 (50% of move-ins in UK)
• •Integration of all calls to our phone routing to stores & contact center
• •Training of the teams Provide support to LnS employees

Successful Integration

Focus on Growth

Shurgard Platform

EXPERTS IN INTEGRATION, SCALABILITY, STANDARDIZATION AT SPEED ²¹

2024 OUTLOOK

FUTURE LOK'NSTORE ACQUISITION IMPACT:

• Q3-2024 Financial communication will be the first quarter incorporating former Lok'nStore portfolio being consolidated as of August 1st;
• Accretion on Shurgard adjusted EPRA earnings per share: neutral in 2025 and accretive from 2026 onwards;
• We maintain a financial policy with a target to keep LTV at c. 25% and, 4.0x to 5.0x Net debt/ Underlying EBITDA, with a short- to mid-term ability to exceed temporary for acquisitions to a maximum of 35% or above 5.0x Net debt/Underlying EBITDA;
• Pro forma leverage of c. 24% LTV and c. 6x Net debt/Underlying EBITDA at acquisition (including bridge financing).

GROWTH ACCELERATED IN THE UK, A KEY TARGET MARKET, WITH THE ACQUISITION OF LOK'NSTORE ²²

CONCLUSION

• Operational execution excellence

• Raise of our FY revenue guidance
• Growth across all markets
• Digitalization and leading operational platform
• Growth accelerated
  • Acquisition of Lok'nStore (UK), a modern, purpose-built portfolio and attractive pipeline; representing a full two years of total Shurgard growth
  • Germany: acquisitions of Pickens and Bonn M. (last 12 months 57,000 sqm added through acquisitions and developments representing 46% of our German net rentable sqm).

• Future growth secured with 2024-26 pipeline

• Equivalent to 26% (c. 365,000 sqm) of our 2023 net rentable sqm
• Representing c. €1,047 million of investment at 8-9% return at maturity
• Delivering additional NOI of c. € 90 million per year

• Strong balance sheet, with a modest level of gearing and significant liquidity

• First European self-storage operator awarded a BBB+ (stable outlook)
• Optional scrip dividend offered to shareholders

NEXT

German market day

• On September 17, 2024, during the EPRA conference in Berlin, we will host an asset tour;
• Followed by a presentation on Germany;
• Register for our presentation via email to: investor.relations@shurgard.co.uk

Q3 conference call

• A conference call will be scheduled for Tuesday, November 5, 2024 to discuss our Q3 2024 results incorporating for the first time former Lok'nStore portfolio being consolidated as of August 1st.

APPENDICES

SAME STORE AVERAGE OCCUPANCY BY COUNTRY

	Q2			H1
	2024	2023	Diff	2024	2023	Diff
France	89.3%	89.2%	0 1pp	88.9%	88.8%	0 1pp
The Netherlands	90.9%	91.6%	0 6pp -	90.9%	91.1%	0 2pp -
UK	87.1%	87.8%	0 6pp -	86.6%	87.7%	1 1pp -
Sweden	90.9%	91.7%	0 8pp -	90.4%	91.3%	1 0pp -
Germany	88.7%	90.3%	1 6pp -	88.9%	90.2%	1 3pp -
Belgium	91.7%	92.2%	0 5pp -	91.3%	92.1%	0 7pp -
Denmark	90.6%	91.1%	0 5pp -	90.7%	91.5%	0 8pp -
Total	89.8%	90.4%	-0.5pp	89.5%	90.1%	-0.5pp

CONSISTENT OCCUPANCY PERFORMANCE IN ALL OUR MARKETS ²⁶

SAME STORE PROPERTY AVERAGE IN-PLACE RENT BY COUNTRY

In € per sqm / year	Q2				H1
	2024	2023	% var.	% var. CER	2024	2023 % var.	% var. CER
France	271.1	262.8	3 2%	3 2%	270.4	264.4 2 3%	2 3%
The Netherlands	243.1	228.8	6 2%	6 2%	242.2	227.5 6 5%	6 5%
UK	390.4	356.0	9 7%	6% 7	388.4	352.4 10 2%	5% 7
Sweden	235.4	236.2	0 3% -	0 1%	238.4	240.9 1 0% -	0 4% -
Germany	292.2	266.8	9 5%	9 5%	291.7	266.0 9 7%	9 7%
Belgium	232.0	211.3	9 8%	9 8%	231.0	211.2 9 4%	9 4%
Denmark	301.7	285.7	5 6%	5 7%	301.0	285.3 5 5%	5 7%
Total	275.6	260.6	5.8%	5.4%	275.2	260.7 5.6%	5.1%

HIGH LEVEL OF IN-PLACE RENT GROWTH ²⁷

LEGAL DISCLAIMER

All statements in this presentation, other than statements of historical facts, are forward-looking statements. These statements are based on the current expectations and views of future events and developments of the management of Shurgard and are naturally subject to uncertainty and changes in circumstances. All forward-looking statements speak only as of the date of this presentation.

Forward-looking statements include statements typically containing words such as "will", "may", "should", "believe", "intends", "expects", "anticipates", "targets", "estimates", "likely", "foresees" and words of similar import. You should not place undue reliance on these forward-looking statements, which reflect the current views of the management of Shurgard. These statements are subject to risks and uncertainties about Shurgard and are dependent on many factors, some of which are out of Shurgard's control. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.

Use of alternative performance measures

The information contained in this presentation includes alternative performance measures (also known as non-GAAP measures). The descriptions of the alternative performance measures are available on https://corporate.shurgard.eu/resources/alternative-performance-measures