2022
ANNUAL REPORT
JANUARY 1, 2022 TO DECEMBER 31, 2022
Shurgard is the largest owner and operator of self-
storage facilities in Europe by both number of stores
and rentable space. We operate 1.4 million sqm of space
across 267 stores in seven countries where over 182,000
customers lease our storage units every year.
Table of contents
04 Growing from solid foundations
06 Transformational change
07 Capturing investment
opportunities
08 Digital foundations
09 Becoming a REIT
10 Our ESG commitment
12 Operational Highlights
14 Chairman’s letter
21 Management report
24 Group overview
33 Property portfolio
37 Operational and
55 Sustainability report
68 Environmental impact
84 Impact on society
105 Corporate Governance
162 Remuneration report
171 Principal risks and uncertainties
statements
193 Notes to the consolidated
249 Auditor’s report
28 Appendix
281 APM
298 Summary of the
assurance statement
Picture:
Andre Johnson
Kensington store, UK
03
Shurgard has delivered a very strong financial performance in 2022, driven by the dual
engines of same-store sales growth and portfolio expansion through the ramp-up of new
developments. We have seen revenue growth in all our markets, where high occupancy
and in-place rents are underpinned by in-demand locations, and we have a pipeline of
similarly desirable new developments for 2023 and 2024.
€ million (at CER)
+%
EBITDA
€ million (at CER)
+%
€ million
+%
% (at CER)
+
% (at CER)
+
€ million
+%
€
€ million (at CER)
+%
Notes
2019202020212022
193.0
173.5
163.6
219.2
2019202020212022
173.5
157.9
145.9
199.8
2019202020212022
131.0
118.3
107.3
143.6
2019202020212022
65.9
64.2
63.4
67.2
2019202020212022
64.7
63.7
63.4
65.8
2019202020212022
3,112.6
2,517.9
2,260.4
3,638.9
2019202020212022
132.1
105.1
50.7
142.7
2019202020212022
1.17
1.06
0.95
1.17
€ million (at CER)
+%
2019202020212022
298.1
272.3
258.0
333.0
SHURGARD ANNUAL REPORT 2022SHURGARD ANNUAL REPORT 2022
04
Shurgard is in a new phase of expansion, undertaking accelerated growth to double the
rate of development by 2024. The foundations of our successful self-storage platform are
laid, now we are building on an already agile organization to maximize speed and minimize
risk as we execute our strategic growth plan.
This agility and speed is evident in our 2022 success.
We delivered 11.7% growth in property operating revenue to
€333.0 million from €298.1 million. Through a combination
of 14 projects (redevelopments, new developments and
acquisitions) in 2022, we added 65,400 sqm to our portfolio.
THE JOURNEY
As laid out during our Investor Day in September 2021,
the plan is to double our development and acquisition
pipeline by 2024, increasing our square footage by
90,000 sqm per year. To facilitate this acceleration, we
will double our investment in new developments from
c. €60 million to c. €120 million per year, and increase
our acquisition target to c. €50 million per year. The lead
time for new property development is usually around two
years, so we have been expanding our team and improving
our processes to be able to achieve this ambitious growth.
Acceleration does not just mean doing things more quickly
though. Increasing volume without extracting more value
will not be enough to propel Shurgard to the new heights
we set out at the end of 2021.
At the forefront of our acceleration plan is a transformation
agenda. Shurgard is examining all the processes and
systems that drive our growth and finding ways to
improve them. We have introduced a transformation
department to lead these innovations and accelerate the
positive changes throughout the business.
We are doing this against the backdrop of a worsening
global economic environment. Post pandemic hopes
for a bounce back in economic activity have been
stymied by the Ukraine war and high inflation. But self
storage is a very resilient sector, as the pandemic itself
proved. Life stages will not stop because of the cost-
of-living crisis. People still need to downsize or sell up,
they are still getting married or divorced, and their
children are still becoming independent, necessitating
the need for storage at any and all of these points.
We have maintained occupancy in the face of these
headwinds, with average same store occupancy in 2022
at 90.5%.
Of course, we are not immune to the environment in
which the business operates. The significant inflationary
pressures experienced across global markets have pushed
the cost of goods and services up. Despite this environment,
the growth of our operating expenses remained below
revenue growth, resulting in NOI margin improvement.
Our digital transformation program has enabled Shurgard
to manage current inflationary salary pressure. As our
customer needs change, we are amending some store
operating practices – remotely managing stores from
nearby locations, and adjusting store opening hours – to
reflect customer behavior. Natural attrition has allowed
for a seamless transition where these changes have
been made. The structural characteristics and resilience
of the sector coupled with our operational leverage and
strong positioning in dense urban locations, continues to
underpin our growth. This has enabled Shurgard to improve
its profitability despite rising costs. In 2022, income
from property (NOI) increased to €219.2 million from
€193.0 million, reflecting growth of 13.6%.
Developments/
Redevelopments
2022
2023
2021
2024
Acquisitions
Investments
Developments/
Redevelopments
Acquisitions
Investments
Doubling our rate of development by 2024
SHURGARD ANNUAL REPORT 2022
05
Shurgard has built its portfolio of 93% freehold properties on a
focused location strategy of tier one and capital cities. There are
several key advantages to this strategy which feed into our resilient
business model, including barriers to entry (for potential competitors)
and population density. Central city locations are harder to acquire
and build on than less dense areas, and Shurgard has a long history
of succeeding in building, expanding or acquiring in these areas.
We also use the population density to our advantage, with more
prospects or customers within close proximity to our stores, and
living/work space at a premium necessitating external storage.
A direct outcome of our ability to continue delivering quality products in
quality locations is high occupancy and rental growth, which is especially
relevant as we navigate the challenging macro environment.
MALMO
COPENHAGEN
BERLIN
DUSSELDORF
COLOGNE
LILLE
BORDEAUX
LYON
NICE
MUNICH
MARSEILLE
LONDON
HAMBURG
MAJOR BELGIAN CITIES
MAJOR DUTCH CITIES
in seven countries
owner and operator
of self-storage facilities in
Europe by both number of
stores and rentable space.
of space
over
customers
CAPITAL CITIES
As of December 31, 2022 18 stores
are located in other cities not
highlighted on the map. “Major
with a certain level of population.
MAJOR CITIES
GOTHENBURG
SHURGARD ANNUAL REPORT 2022
I have been working at Shurgard in an
operational capacity for almost 23 years and
have seen a lot of transformational change in that time.
The company underwent a period of centralization
which has allowed us to manage our operations more
efficiently with a central back office, become leaner,
and improve operations as we have grown.
The Shurgard model is well-proven and with our
disciplined and consistent approach, we have
maintained a steady rate of expansion using our three
levers of growth.
But the world changed during COVID-19. It turned out to
be an incubator for new ideas and new ways of operating,
forcing us to quickly increase our online and digital offer.
This is where the e-rental came in and we have seen very
substantial adoption of the service in just the two years it
has been operational. Today, c. 30% of our total move-ins
are done via the e-rental site.
On top of the digital service, internal data has become
increasingly important – to help us understand our
prospects and customers and ensure we are offering
them the best service.
Now, alongside data and digitalization, we are also
accelerating our operations, meaning more construction
projects, more site exploration, more redevelopment
projects and more M&A.
The transformation team will identify, select, and roll
out changes to the way we do business. It is a case of
prioritizing the most effective and efficient technologies
and processes, measuring their efficacy, and ensuring
that the outcome is a better service for our prospects
and customers and improved agility for the company.
Some of the first changes will be reflected in the
adoption of new technologies. We have already
implemented our open access control app as part of the
digital transformation, and it has been widely adopted.
we have been laying the foundations of our digital
future in 2022 and we expect to see further benefits of
our tech transformation plan in 2023.
Meanwhile, the transformation team is working
across departments to develop new frameworks for
development and project management. Our biggest
challenge is uncertainty. The world is changing so
fast and we need to anticipate and respond to these
changes so we can help our prospects and customers
in the best possible way. It is a journey we have to
take together, which is why we are also committed to
helping our employees manage these organizational
changes. People’s jobs will change over time, creating
new opportunities for growth and development.
Transformation only works if we all look for opportunities
to change for the better, for our customers, our staff
and our shareholders.”
Shurgard is in the process of accelerating growth, and this means making more decisions
more quickly to reach our ambitious development goals. We are also undertaking this
evolution at a time when the external environment is changing quickly.
The pandemic has irrevocably changed how our customers
interact with us. For example, they now expect enhanced
automation and a digital customer experience, and these
new interactions present us with opportunities to improve
our services and control our costs. In response, we have
formally created a transformation department to identify
and evaluate enterprise-wide opportunities that will
benefit the company and our customers, as well as ensure
their effective implementation. Our new Transformation
Director, Carlo Swaab, is a long-term veteran of Shurgard
and will be working with all departments across the
business to improve our agility and speed without
compromising on quality.
TRANSFORMATION DIRECTOR
SHURGARD ANNUAL REPORT 2022
We have already begun to build a denser
pipeline that will feed the development
commitments, but this takes time, so we’re upping
our game to ensure we reach these targets while
maintaining a disciplined approach.
The process from securing a site to completing a new
storage facility is complex, requiring commitment
and collaboration from all departments, and stringent
coordination to complete projects on time and budget.
As the activity ramps up, we are evolving our processes
to make us leaner, more nimble, more focused and
faster to market. We have streamlined the development
process by adopting a project-oriented and standardized
approach, so our development goals are on track.
Our strategic acceleration has come at a time of
significant economic upheaval. Construction costs have
been rising and Shurgard has not been immune to these
impacts. Improving efficiencies in the development
process at a time when we are investing in many more
projects will help us manage our costs and maximize
returns. Shurgard has also been able to adjust rates to
reflect the higher costs, maintaining profitability. For
all investment decisions taken as from 2023, we are
increasing our expected property yield of c. 8% to 9% at
maturity (from 7% to 8%). Becoming more nimble means
we do not need to shy away from opportunities that arise
in the midst of, or as a result of, economic pressure.
This is also true within Shurgard’s third pillar of
growth – M&A. As construction costs increase, the
attractiveness of buying completed properties also
increases. Improved agility means we can investigate
opportunities quickly and make measured decisions
that give us a competitive edge, taking advantage of
opportunities despite the uncertain environment.
We can do this because Shurgard has a very strong
balance sheet. Our robust cash position (€87.3 million
as of December 31, 2022) is augmented by a €250
million undrawn revolving credit facility and a €250
million uncommitted shelf note facility. And our €800
million senior loan notes have a well-distributed
reimbursement schedule, with all maturities on a fixed
interest rate with no variable component.
We are getting more agile at finding and acting on
investment opportunities and we have the balance
sheet to take advantage of them.”
CHIEF INVESTMENT OFFICER
Shurgard’s accelerated growth strategy has come with a commitment to expand
investment in order to return greater value to all our stakeholders. Chief Investment
Officer Isabel Neumann is leading the capital allocation strategy and ensuring it is
effectively financed and executed.
Our nimble processes allow us to take advantage of investment opportunities
2022
2023/24
/25
83,900 sqm
2022
2023/24
/25
€169.8 million
65,400 sqm €142.7 million
SHURGARD ANNUAL REPORT 2022SHURGARD ANNUAL REPORT 2022
To remain relevant and competitive Shurgard has always kept pace with global
technological transformation. John Turner, Director of Marketing and Pricing has been
with the company from the start of this journey.
JOHN TURNER
DIRECTOR OF MARKETING AND PRICING
Digitalization started a long time ago. We were
quick to integrate and centralize our operating
platform over a decade ago, which has underpinned
smooth operational growth for many years. In 2012 we
introduced transparent pricing, and for many years we
have been able to target specific audiences depending
on their catchment areas.
The tech revolution, already in full swing, was given
a substantial boost during the pandemic. Even as
the world returns to near normal, consumers have
retained the behaviors they adopted when only digital
interactions were possible.
Shurgard’s biggest digital change came through the
introduction of e-rental in 2021 and the rapid uptake by
our customers means it already accounts for c. 30% of
move-ins. Throughout this period of digitalization, we
continue to invest in the website and in understanding
how our customers react and respond to our digital
touchpoints. For example, we noticed that fewer
people were completing online bookings in Germany
and Belgium, and traced the obstruction to the types
of payment method we were offering. Now we are
making changes to offer more relevant ways to pay in
these countries. 99.9% of our customers use non-cash
methods of payment, and this has a positive impact on
client defaults which means we have very low levels of
bad debt.
We monitor our customer feedback through trusted
review portals like Google Reviews and TrustPilot, where
we scored an average of 4.8 all-time and 4.6 (out of 5)
respectively during 2022. The scores are collated from
over 300 reviews per property on average across our
entire portfolio of 267 stores, underpinning the integrity
of our customer feedback channels.
Digital innovations also underpin our marketing and
branding investments. Our strong brand presence
lowers the cost of Search Engine Advertising, and
digital insights allow for pricing agility and adjustments
through predictive pricing models.
Change is constant. To keep up with the demands of
our customers, employees and all stakeholders, we’re
laying the groundwork for a series of digital innovations
that will improve the customer journey, facilitate
customer engagement and expand our data insights.
In 2022 we upgraded our access control systems to
allow customers to gain access to their unit using an
app instead of having to remember a code. Not only
do our customers find it easier and more convenient,
we can use the anonymized data to understand access
behaviors and improve our service for them.
This is just the first step in a wider rollout of improved
digital solutions that our customers will be able to use at
the touch of a button. To ensure we invest in technology
that really adds value, all our proposed innovations are
tested and trialed, and we have used 2022 to lay the
foundations for bigger changes next year.
While consumer digital solutions like new apps or
e-rental are the obvious response to changes in
social interaction, the pandemic and subsequent
behavior changes have impacted on our physical store
interactions too. We are currently running trials and
pilots for new ways of store operation and will look
to optimize a leaner in-store presence. What this will
look like is still in development. We will not be rushed
to change services if that’s not what customers want.
2022 has been an opportunity to try out new ways
of working, collect data, and prepare for the future
with confidence.”
SHURGARD ANNUAL REPORT 2022
09
The proposal was approved at an extraordinary shareholder
meeting on December 6, 2022, with the aim of becoming a
UK REIT in March 2023. The Group’s shares will continue to
be listed and traded on Euronext Brussels, and we will retain
our strong governance and financial reporting obligations.
We will also continue to report under IFRS and in euros.
Shurgard will be legally migrating from Luxembourg to
Guernsey, falling under Guernsey corporate law, and become
a UK tax resident, after establishing central management
and control in the UK. We will not need to make changes to
our corporate governance structure or financial reporting
protocols, which we have worked very hard to strengthen.
UK REIT status means the effective tax rate guidance for
the Group will reduce to a stable 18% in the medium term
(it was previously predicted that the tax rate would reach
22% in 2025 based on the current tax regime).
Going forward, the Board of Directors and its Committees
will meet and make all strategic decisions in the UK,
ensuring that central management and control of the
business is taking place in the UK. We will continue to
declare a dividend of €1.17 per share per year.
MAINTAINED
Shurgard came to the market in 2018 with a strong
governance focus and its Board and governance bodies
were established with transparency and accountability
at their heart. Our new REIT status is an opportunity for
Shurgard to further strengthen our corporate governance,
by simplifying the Board structure and increasing the
representation of independent directors to 67% from 55%.
Subject to the approval from our shareholders in May 2023,
Chairman Ronald L. Havner, Jr. will resign from the Board
along with Daniel C. Staton, Everett B. Miller and Isabelle
Moins, at the AGM in May. The current lead independent
director Ian Marcus will be appointed Chairman, and Tom
Boyle and Lorna Brown will join the Board. Ron will retain the
honorary title of Chairman Emeritus and continue to provide
advisory services to the Board as needed. He, along with
Daniel, Everett and Isabelle have provided excellent strategic
insight during a critical time in Shurgard’s growth, and we
thank them for helping to steer our platform to maturity.
As the changes take effect, we will also increase our
gender diversity ratio, with 33% of female directors on the
Board member, up from 27%.
Our efforts at transparency have not gone unnoticed. For
the second consecutive year, Shurgard scored a maximum
100 points in the public-disclosure category of the GRESB
property asset sustainability framework and was awarded
a gold medal at the EPRA Sustainability best practices
recommendations for its reporting.
The change to REIT status and incorporation location will
not affect our strategic direction or our commitment to
governance standards and we will continue to aim for the
highest ratings in our ESG frameworks.
In November, Shurgard announced its intention to become a United Kingdom Real Estate
Investment Trust (REIT), Shurgard Self Storage Ltd, incorporated in Guernsey. This will lift our
investor profile, increase our ability to enhance shareholder returns and open us up to a
greater investor base.
1
1. Board composition Dec 31, 2022.
%
Female
%
Male
1
55%
Independent directors
45%
Non-independent
directors
SHURGARD ANNUAL REPORT 2022
10
Over the past few years, we have been solidifying
our position as a European leader in sustainable self-
storage operations. This has required us to embrace
industry-leading initiatives while working to reduce the
environmental footprint of our assets. Across the business,
initiatives that endorse and embrace ESG principles and
practice are being implemented as a priority, from climate-
related mitigation to social engagements and improved
governance. Over the long term we have clear targets for
continuous improvement, including becoming operational
Net Zero by 2030, and each year we are recognized
for these widespread efforts through the industry bodies
whose principles we adhere to. 2022 has again been a year
of gains across all the key touchpoints – Environmental,
Social and Governance.
Climate change poses material risk to the environment
around us, and Shurgard has undertaken to assess
these risks in order to be prepared to mitigate and
adapt to them as part of our ESG strategy. We
undertook a physical climate risk assessment in 2022,
identifying physical risks like localized flooding or
hot temperatures. Our processes include identifying
emerging issues through inspections thereby allowing
for maintenance to take place, and modelling a
potential increase in energy costs for cooling.
Along our path to Net Zero, Shurgard continues to make
inroads into reducing its energy consumption. In 2022
we reduced like-for-like energy consumption across our
portfolio by 7.2% compared to 2021. Meanwhile, our
like-for-like carbon emissions reduced by further 9.3%
compared with 2021, and by 10.5% when including the
impact of our green energy procurement.
Total Shurgard obtained electricity for stores has
decreased by 4.2%, reflecting the effect of our rollout of
energy efficiency measures such as our LED program.
The LED lighting rollout is part of a €10 million per
year investment program which also includes heating
optimization.
Shurgard is undertaking a major project to install new
heat pumps in stores across our portfolio to replace gas
heating, and 10 heat pumps were installed in 2022. We
are accelerating the transition so that by 2029, all our
stores currently heated with gas will be equipped with
heat pumps. Concentrating on the thermal properties of
our buildings will help us achieve our energy and GHG
targets while delivering best-in-class buildings ratings.
Although water usage is low across our portfolio of stores,
we are still determined to reduce this further and are
pleased to report that water consumption has decreased
by 35.5% in 2022 at our European Support Centre. By the
end of 2022 we had installed smart water meters in 160
stores, representing 60% of our store portfolio, with the
remainder to be installed in 2023. These new technologies
enable us to continue to lower our water consumption.
%
%
Installed by
the end of 2022
SHURGARD ANNUAL REPORT 2022
11
Shurgard’s success is a direct result of the dedication
of our employees, and we ensure they continue to
deliver great service by providing access to training,
career progression and relevant support for each
job type. The Shurgard Academy, launched in 2018
to provide structured career progression from Junior
Assistant Store Manager to Senior Store Manager, has
been expanded, and we implemented a new Training
Management System in our HR tool. In addition
100% of our employees underwent the performance
appraisal process, an increase of 7.0 pp year-on-year.
We will continue to invest in our people to help the
business grow.
Continuity is a key strategy in our community and social
engagements. It provides our charity partners with the
certainty of our support over the long term, allowing them
to plan effectively. In 2022 we continued to provide support
for charities in the countries we operate, including Le Rire
Médecin, a leading association in France working with clowns
entertaining children in hospitals, Stichting Babyspullen, the
Netherlands foundation providing free baby essentials to
low-income parents and parents-to-be, and the Mayor’s
Fund for London, amongst many others. Our charitable
giving includes the provision of time, resources or financial
assistance, and we endeavor to increase our support every
year.
GOVERNANCE
Shurgard maintains a robust and transparent governance
structure. The ESG Management Group is chaired by the
CEO and directly oversees the Environmental Management
System, which was put in place to implement environmental
and social management best practice throughout the
business, via a series of policies, procedures and protocols.
In 2022 a workshop with key members of the Shurgard
team was organized to better understand, and prepare for,
the disclosure requirements of the EU Taxonomy Regulation.
Subject to approval from our shareholders in May 2023,
Shurgard will be increasing the ratio of independent
directors, reducing the total Board members from 11 to 9 and
ensuring the majority, including the chair, are independent
of the business. The changes will also increase the gender
diversity on the Board to 33%. We look forward to a diverse
and strengthened Board.
Shurgard adheres to the highest ESG standards based
on widely accredited frameworks, and our focus on
continuous improvement is recognized in the awards we
receive. For the second year in a row, we were recognized
with a Gold EPRA sBPR Award, reflecting the highest
standards of European real estate sustainability reporting.
We also improved our score in S&P Global’s Corporate
Sustainability Assessment by a further 5 points, placing
us in the top 12% of scores achieved by real estate
companies this year. And perhaps most importantly,
we excelled against the Global Real Estate Sustainability
Benchmark, where we were awarded an excellent 5-star
rating (the top banding) and a score of 90 out of 100 in
the 2022 results. This reflects the care and attention we
place on integrating ESG issues throughout our business.
Gold
2nd Year
running
+5
Points
Rating
100%%
Up 7.0 pp
on last year
100%%
HUMAN CAPITAL
SHURGARD ANNUAL REPORT 2022
12
The Shurgard Academy, which has been supporting store
staff through a process of structured career progression
since 2018, underwent a major training overhaul in 2022.
The training content was fundamentally reviewed and
upgraded, ensuring the software was easy to use and
switching to more video delivery rather than relying on
text content. For the first time in 2022, a graduate of the
Academy has risen through the ranks to district manager
level, blazing a trail for other ambitious and dedicated
employees to aim for substantial career progression.
Shurgard’s acceleration strategy is pushing the company
to innovate and digitalize. This will invariably mean a shift
in some job roles as we respond to changing customer
requirements, offering new opportunities across the
business. The transformation team will be working closely
with all departments to ensure people management is
always prioritized.
Shurgard has once again proved its commitment to high
ESG standards by accelerating our major LED refit project,
the rollout of heat pumps, and strengthening our social
collaborations.
We are being recognized for these efforts by the bodies
that govern the ESG frameworks, including MSCI where
we have received an inaugural AA rating (AAA being
the highest rating). We have also maintained our sector-
leading position in the GRESB ratings. This property asset
sustainability framework is widely adhered to by many
in our industry, and it is a testament to the dedication
from everyone across the business that we achieved
five-star status for the third year running with a score
of 90%. Meanwhile EPRA (the European Public Real
Estate Association) has again awarded a sBPR Gold medal
to Shurgard.
PEOPLE DEVELOPMENTTECHNOLOGY
In 2022, Shurgard upgraded its access control system to
make it easier, more reliable and consistent for customer
to access our stores. The new system allows customers to
use the Shurgard app for access rather than remembering
a code. This is only the first of the technological
innovations we are developing that will improve customer
engagement and provide them with the digital service
they have come to expect from all their service providers.
We have used 2022 to build the foundations on which to
expand our interactive digital solution and plan further
innovations for in 2023.
+
=
RATE
RATE
RATE
E-RENTAL OPTIMIZED
DIGITAL
Glassdoor reviews
(Max 5 stars)
All-time Google reviews
(Max 5 stars)
Shurgard Peer 1 Peer 2 Shurgard Peer 1 Peer 2
4.8
4.6
4.5
4.7
3.9
3.2
SHURGARD ANNUAL REPORT 2022
13
Shurgard completed one redevelopment in Randstad, the
Netherlands, adding 1,000 sqm to the total portfolio at a
cost of €0.9 million. We have prepared a strong pipeline
for redevelopments in 2023 and 2024
Shurgard opened seven new stores in 2022 across
three of our core markets, France, Germany and the
Netherlands. Our Lagny, France property opened in
March 2022 adding 5,500 sqm at a cost of €10.3
million. Two further properties opened in France in
the fourth quarter in Sartrouville and Versailles South,
which added another 10,200 sqm to our portfolio at
a direct cost of €20.5 million. All three properties are
within the Paris metropolis where self storage is in
high demand as property prices are steep and space
is at a premium.
Two properties were opened in Germany in North
Rhine Westphalia. The first opened in Dusseldorf in
September and the second in Cologne in October with
additional space totalling 10,300 sqm for €26.0 million.
Our Dutch properties were opened in September and
December, both in Rotterdam within the Randstad
conurbation where the majority of our Dutch properties
are located. Randstad consists of the four largest cities
in the Netherlands along with the surrounding suburbs
and towns. The Rotterdam developments added
6,900 sqm at a cost of €8.3 million.
In 2022, Shurgard completed five acquisitions for a total
consideration of €76.6 million, adding 31,600 sqm to
our portfolio. The acquisitions have an expected yield at
maturity of c. 7% to 8%.
In May 2022, Shurgard completed the acquisition of
CityStore Self Storage’s property in Central London (2,500
sqm), reinforcing our strong position in the center of the
capital with 9 stores and 21,600 sqm. Our total London
estate is now 41, and we have further openings scheduled
for 2023 and 2024.
Our second acquisition in 2022 was the c. 3,000 sqm
Grepu Vastgoed facility located in Amsterdam Diemen
(Randstad), completed in September. The newly acquired
property will become the primary building of a project
(Diemen Visseringweg) currently in our development
pipeline and set to open in 2023.
In Paris, Shurgard announced the acquisition in November
of the Box à la Carte facility located in Brie-Comte-Robert
comprising 5,900 sqm or 800 units. Shurgard currently
has 66 self-storage facilities in France totalling more than
330,000 sqm.
In late November Shurgard acquired three purpose-built
properties in Stockholm, Sweden from Instorage, with a
combined net rentable space of 13,100 sqm or 2,100 units.
We completed our year of acquisitions with the
HuurEenBox self-storage business from the Loogman
Group in Amsterdam, the Netherlands. The 6,800 sqm of
rentable storage space will become an extension of the
Shurgard property it is located directly next to, resulting
in our largest self-storage facility in Europe.
FRANCE
March 2022
October 2022
December 2022
GERMANY
September 2022
October 2022
NETHERLANDS
September 2022
December 2022
5
Total cost
%%
%%
c. 7c. 7%%-8-8%%
SHURGARD ANNUAL REPORT 2022
SHURGARD ANNUAL REPORT 2022
14
CHAIRMAN’S LETTER
This will be my last letter to you as Chairman of the Board of Directors. Effective with the next AGM, I will step
down and be succeeded by Ian Marcus. I will remain very involved in with Shurgard as Chairman Emeritus.
In addition, three other directors will be stepping down and two new directors added to the Shurgard board.
Some perspective on where Shurgard has been, its outlook and why these changes are being made is warranted.
HISTORICAL PERSPECTIVE
When Public Storage acquired Shurgard in 2006, the results for the full year 2006 were as follows for the 165
properties owned by Shurgard and the Joint Ventures:
Revenues on owned/JV properties. €130 million
Property NOI. €57 million
Debt. €933 million
Sq meters owned/JV properties. 804,000
You will note debt was equal to about 16 times property NOI, i.e., the company was “mortgaged to the hilt” and
there was nominal shareholder equity, but lots of potential. In addition, the company had no access to the capital
markets and all properties were mortgaged.
Fast forward to today:
Revenues from owned properties. €333 million
Property NOI.
€219 million
Debt. €800 million
Sq meters owned. 1,343,000
Shurgard now has 266 wholly owned properties and a strong development and acquisition pipeline. You will note
that debt is now less than 4 time property NOI. Shurgard now has tremendous access to the capital markets as
a public company. I would expect it to attain an investment grade rating.
This was achieved while working thru the GFC, COVID-19 and a complete restructuring of the operating processes
and management team. As Marc noted in his letter, there has been a transformational change at Shurgard.
BOARD RESTRUCTURING
At our IPO we thought 11 directors would be optimal. This was in part dictated by needing a majority of
independent directors and having five insiders to start (two from PSA and New York Common and the CEO). In
the past year we have, as appropriate, spent time thinking about board structure and succession planning. As a
result, we concluded that reducing the number of inside directors to three versus five and adding some new
directors would enable us to reduce the board size to nine from 11 and begin a succession planning process. The
two “PSA directors”, myself and Dan Staton, will be stepping down and Tom Boyle, PSA’s CFO will be taking our
place. One of New York Commons directors, Everett Miller will also be stepping down and Jamie Behar will remain.
In addition, Isabelle Moins will also be stepping down to be replaced by Lorna Brown who is UK based. Additional
changes are planned for 2024 and 2025.
Ian Marcus will become Chairman. His knowledge of both UK and European real estate is exceptional and his
awards and accomplishments are industry leading. Most importantly, he is UK based and an exceptional
businessman of extraordinary integrity.
SHURGARD ANNUAL REPORT 2022
15
I would like to thank Dan Staton for his service to Shurgard. Dan was a director at Public Storage for 20 years.
His knowledge of real estate, self storage and capital markets have been invaluable to Shurgard.
I’ve been working with Everett Miller for over 20 years doing business with New York Common. Everett is practical,
and like Dan, really knows real estate.
Isabelle Moins has participated to Shurgard adventure since the IPO five years ago, and her depth and breadth
of experience in digital business, marketing and new technologies added important competencies to Shurgard’s
Board. I thank her for her active participation and advice.
Our new directors, Tom and Lorna, are exceptional people with a deep understanding of real estate and capital
markets.
OUTLOOK
As Marc noted in his message, Shurgard is poised for opportunity. To put this in perspective, let’s look at the
nascent European self-storage industry versus the mature US self-storage industry.
If the European market were to build self-storage facilities to the same population density as in the US, we could
see the need for an additional 80,000 facilities.
With less than 5,500 currently operating in Europe, there is enormous potential for growth. In the region of Paris
alone, where there are currently about 180 facilities, the population base could support 800 facilities.
After operating Shurgard for nearly 20 years, we know customer behavior and usage is about the same in US as
Europe, so it is reasonable to conclude that the same densities can be achieved.
As noted earlier and in Marc’s letter, we have the financial strength, people and operating platform to take
advantage of this excellent growth opportunity. I’m very excited about the future of Shurgard.
Ron Havner
Chairman of the Board
SHURGARD ANNUAL REPORT 2022
16
CHIEF EXECUTIVE OFFICER’S
LETTER
Shurgard has been preparing the foundations for growth for many years, and 2022 was the year we put our foot
on the accelerator. As part of the ramp up to building and acquiring 90,000 sqm annually by 2024, we have
delivered accelerated revenue, margin and pipeline growth, while also improving our leading ESG results. This
exceptional performance is a consequence of a strategic focus on transformational change. We are doing things
faster and smarter, executed by our dedicated and committed teams that have once again delivered, and
exceeded, our stretch targets. The inflationary environment across Europe looks set to continue into 2023, and
we expect to manage these effects through a combination of operational efficiencies, digitization, and cost
optimization.
The below data are presented at constant exchange rate (CER).
REVENUE GROWTH
The acceleration of our three levers of growth – redevelopments, new developments, and acquisitions – and a
great performance from our same store pool has resulted in a substantial increase in top line growth. All-store
property operating revenue, which includes same store and non-same store revenue rose 11.7% in 2022 to €333.0
million. The trajectory of top-line growth clearly demonstrates the validity of our long-term strategy. Between
2019 and 2020, all-store property operating revenue grew 5.5%, the following year we grew by 9.5% and last
year by 11.7%.
This trend is clear across both mature same stores and newly opened or acquired stores. Same store property
operating revenue in 2022 increased 8.6% to €313.7 million. This compares to growth of 3.2% in 2020 and 7.0%
in 2021.
MARGIN EXPANSION
Against a backdrop of high inflation and a cost-of-living crisis, Shurgard managed to control costs and increase
margins significantly again in 2022. Our margins have been rising consistently as we have grown revenues faster
than costs, a particularly impressive achievement in the current economic climate.
The margin improvement follows a similar trajectory to revenue growth. All-store margin rose to 65.8% in 2022,
from 64.7% in 2021. This in itself was an improvement on the 63.7% margin in 2020 and means we have more
than achieved our medium-term target of increasing margins by 2.0pp (from a 2020 baseline).
Shurgard’s transformation strategy has been a key component of cost management. We introduced a
Transformation Department in 2022 that has allowed the company to explore a range of new solutions, quickly
select those that will deliver improvements, and ensure they add value to customers, employees, or development
property.
Despite accelerating the rate at which we are adding sqm to our portfolio, we contained costs through
efficiencies in the development process. This has enabled Shurgard to temper the substantial construction cost
increases experienced in 2022.
SHURGARD ANNUAL REPORT 2022
17
Digitalization has also helped to keep costs under control. Shurgard has long been a digital leader, transitioning
our customer journey from store-led to hybrid digital solutions that cater to our increasingly online customers.
They are pleased with their seamless customer journey, as evidenced by our Google review scores (4.8 out of 5
collated from over 300 reviews per property all-time) which have improved year-on-year. Where the pandemic
speeded up our e-rental offer, we have continued to explore the best service options across our portfolio. This
has meant changing the way we operate some properties, including remote, partial, or fully managed, depending
on customer needs.
Meanwhile, transformation improvements in the employee journey include new ways of operating that increase
our speed, efficiency, and communication across departments.
PIPELINE ACCELERATION
The transformation of our property journey has been a vital part of Shurgard’s acceleration program. We are
filling the pipeline with redevelopments, new developments, and acquisition opportunities to achieve our target
of increasing sqm by c. 90,000 annually by 2024.
We can see the new strategy at work, when comparing the increase in percentage of non-same store revenue
over the last three years. In 2020, revenue from acquisitions less than a year old, or developments less than three
years old, accounted for just 4.3% of total revenue. This rose to more than 5.2% in 2021 and 5.8% in the year
just ended, and the outlook for 2023 is another substantial increase.
Shurgard set out a strategy of increased investment to accelerate property development and compared with 2021
we will double our annual investment by 2024. Included in these investments are projects to ensure our new
development opportunities are cost-effective, efficient and adhere to high environmental standards. This means
ensuring LED lighting in all our properties, including heat pumps and solar panels where feasible, and
implementing a smart building management system, all of which are designed to both lower our energy footprint
and maintain tight cost controls.
We have been recognized for our concerted ESG efforts by the industry bodies whose principles we adhere to.
We were rated by MSCI for the first time in 2022 and initiated with a AA rating, only one grade away from their
highest level. We also retained our leading rating from Global Real Estate Sustainability Benchmark (GRESB),
where we were awarded an excellent 5-star rating (the top banding) and a score of 90 out of 100.
FINANCIAL STRENGTH - BECOMING A UK REIT
Shurgard’s financial strength is based on a prudent finance strategy that aims to allow us to execute our
operational and investment strategy no matter the market conditions. In 2022, we decided to support this
strategy by taking the decision to become a UK REIT. As part of this, we migrated our corporate seat back to
Guernsey, although we will continue to be listed and traded on Euronext Brussels. This structural change brings
with it many benefits.
Previously we forecasted that our effective tax rate would be around 22% in 2025 and we now believe that,
based on the implementation of the REIT status in the UK, this rate will be around 18%. In addition, the move
will allow us to be better positioned to take part of investments opportunities present in the UK market.
We will also propose to our shareholders to vote in May 2023 on the strengthening of our already robust
governance by increasing the ratio of independent directors on the Board (67%) and broadening our diversity
profile by increasing the ratio of women in governance (33%).
SHURGARD ANNUAL REPORT 2022
18
With our strong balance sheet and financing strategy, we have access to all types of capital markets to optimally
address any financing needs. We also have an undrawn €250 million revolving facility and an uncommitted €250
million shelf USPP note available.
OUTLOOK
So far, Shurgard has proved itself resilient amid all social, political, and economic challenges. In this climate we
have proved that our services remain vital for customers going through life changes, and we have been able to
increase rental prices to reflect our own increased costs while maintaining strong levels of occupancy.
We are mindful of the external environment, nonetheless, we expect our all-store revenue to grow over 8% in
2023. We are on track to increase our portfolio by c. 90,000 sqm per year by 2024 and expect to add around
70,000 sqm in 2023. We are confident our accelerated development will add substantial value for shareholders
now and in the future.
I would like to take the opportunity to thank all our company members and Board of Directors for their support.
Marc Oursin
Chief Executive Officer
SHURGARD ANNUAL REPORT 2022
19
THE SHURGARD SHARE
Stock performance vs indices since IPO (Oct 2018)
SHURGARD ANNUAL REPORT 2022
20
BASIC SHARE DATA
ISIN / common code LU1883301340 / 188330134
CFI code ESVUFX
Ticker SHUR
Stock exchange Euronext Brussels
Shares issued / outstanding as of December 31, 2022 89,131,131
Subscribed capital €63,610,156
Share price as of December 31, 2022
1
€42.85
52-week high / low
2
€58.80 / €37.35
Market capitalization as of December 31, 2022 €3,819 million
Average daily trading volume 137,894 shares
1 Closing price on last trading day of the month.
2 In each case from start of trading on January 1, 2022 to December 31, 2022, based on Euronext Brussels closing price.
DIVIDEND
We have proposed a total dividend of €1.17 per share for the year 2022.
With respect to the first half of 2022, our Board of Directors approved an interim dividend of €51.7 million or
€0.58 per share paid on September 29, 2022.
The Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2022 of a
maximum amount of €52.6 million (taking into account the number of outstanding shares as of
December 31, 2022).
The second and final dividend on 2022 results will be payable on or around May 24, 2023 to Shareholders on the
record at close of business on May 23, 2023.
SHARE TRADING
The Company appointed KBC Securities as liquidity provider starting in June 2019, with the contract being
officially recognized by Euronext. The Company aims to make the necessary efforts to improve the liquidity of its
order book and increase the trading volumes of its share, to benefit current and potential investors.
The Company also worked with Bank Degroof Petercam from January 2020 until August 2022 (included) as
liquidity provider.
SHAREHOLDERS
The following table sets forth the shareholders of the Company as of December 31, 2022:
Shareholder Number %
New York State Common Retirement Fund 32,544,722 36.5
Public Storage 31,268,459 35.1
Public 25,317,950 28.4
Total 89,131,131 100.0
SHURGARD 2018
21
MANAGEMENT REPORT
22
TABLE OF CONTENTS
Key financials ......................................................................................................................................................................................23
Preliminary remarks .......................................................................................................................................................................... 24
Group overview ................................................................................................................................................................................... 24
Market overview ................................................................................................................................................................................. 31
Growth Strategy .................................................................................................................................................................................32
Property portfolio .............................................................................................................................................................................. 33
Operational and financial review ................................................................................................................................................... 37
Group results ...................................................................................................................................................................... 37
EPRA KPIs ........................................................................................................................................................................... 46
EPRA NAV METRICS ......................................................................................................................................................... 49
Liquidity .............................................................................................................................................................................. 49
Cash Flow overview ......................................................................................................................................................... 49
Financial position............................................................................................................................................................. 50
Dividend .............................................................................................................................................................................. 53
Employees .......................................................................................................................................................................... 53
Risks .................................................................................................................................................................................... 53
Events after the reporting period................................................................................................................................ 54
Sustainability report ......................................................................................................................................................................... 55
Sustainability Aims .......................................................................................................................................................... 63
Materiality .......................................................................................................................................................................... 64
Stakeholders ...................................................................................................................................................................... 66
Environmental impact .................................................................................................................................................... 68
Impact on society............................................................................................................................................................. 84
Human Capital .................................................................................................................................................................. 94
Ethics and Governance ................................................................................................................................................. 103
Corporate Governance .................................................................................................................................................. 105
GRI Content Index ........................................................................................................................................................... 131
EPRA Performance Measures ...................................................................................................................................... 132
Remuneration report ....................................................................................................................................................................... 162
Principal risks and uncertainties ..................................................................................................................................................171
Luxembourg Takeover Law disclosure ...................................................................................................................................... 183
Related Party Transactions .......................................................................................................................................................... 185
Responsibility Statement .............................................................................................................................................................. 186
SHURGARD ANNUAL REPORT 2022
23
KEY FINANCIALS
(in € millions, except where indicated
otherwise, excluding property under
management contract)
Q4
2022
Q4 2021
+/-
(CER)
1
FY 2022 FY 2021 +/-
+/-
(CER)
1
Property KPIs at period end
Number of properties 266 254 266 254 4.7%
Closing rentable sqm
2
1,343 1,281 1,343 1,281 4.8%
Closing rented sqm
3
1,167 1,123 1,167 1,123 3.9%
Closing occupancy rate
4
86.9% 87.7% 86.9% 87.7% -0.7pp
Property KPIs for the period
Average rented sqm
5
1,162 1,131 2.8% 1,146 1,108 3.4%
Average occupancy rate
6
88.2% 89.3% -1.1pp 88.5% 89.1% -0.6pp
Average in-place rent (in € per sqm)
7
260.3 243.4 8.8% 252.4 233.3 8.2% 8.9%
Average revPAM (in € per sqm)
8
263.0 250.7 6.6% 257.0 241.0 6.6% 7.3%
Financial KPIs for the period
Property operating revenue
9
86.6 79.4 10.9% 333.0 299.9 11.0% 11.7%
Income from property (NOI)
10
59.0 53.0 13.2% 219.2 194.4 12.8% 13.6%
NOI margin
11
68.1% 66.8% 1.4pp 65.8% 64.8% 1.0pp 1.1pp
EBITDA
12
55.3 47.6 18.3% 199.8 174.9 14.2% 15.1%
Adjusted EPRA earnings
13
39.7 34.5 16.7% 143.6 131.0 9.5% 10.1%
Adjusted EPRA earnings per share
(basic) (in €)
14
0.45 0.39 16.5% 1.61 1.48 9.2% 9.8%
Average number of shares
(in millions - basic)
89.1 88.9 0.2% 89.1 88.8 0.3%
Total dividend per share (in €)
1.17 1.17 0.0%
(in € millions) FY 2022 FY 2021 +/-
Financial KPIs at period end
EPRA net tangible assets (NTA)
15
3,638.9 3,112.6 16.9%
Loan-to-value (LTV)
16
18.0% 17.4% 0.6pp
Interest coverage ratio (ICR)
17
9.7x 8.7x 0.9x
Net debt/EBITDA
18
4.1x 3.8x 0.2x
1 In the constant exchange rate (CER) comparison, 2021 financials are recalculated using 2022 exchange rates.
2 Closing rentable sqm is presented in thousands of sqm and calculated as the sum of available sqm for customer storage use at our stores, as of the reporting date.
3 Closing rented sqm is presented in thousands of sqm and calculated as the sum of sqm rented by customers, as of the reporting date.
4 Closing occupancy rate is presented in % and calculated as the closing rented sqm divided by closing rentable sqm as of the reporting date.
5 Average rented sqm is presented in thousands of sqm and calculated as the sum of sqm rented by customers, for the reporting period.
6 Average occupancy rate is presented in % and is calculated as the average of the rented sqm divided by the average of the rentable sqm, each for the reporting periods.
7 Average in-place rent is presented in euros per sqm per year and calculated as rental revenue, divided by the average rented sqm for the reporting period.
8 Average revPAM, which stands for revenue per available sqm, is presented in euros per sqm per year for the reporting period and calculated as property operating
revenue, divided by the average rentable sqm for the reporting period.
9 Property operating revenue represents our revenue from operating our properties, and comprises our rental revenue, insurance revenue and ancillary revenue.
10 Income from property (NOI) is calculated as property operating revenue less real estate operating expense for the reporting period.
11 NOI margin is calculated as income from property (NOI) divided by property operating revenue for the reporting period.
12 EBITDA is calculated as earnings before interest, tax, depreciation and amortization, excluding (i) valuation gains or losses from investment property and investment
property under construction, (ii) gains or losses on disposal of investment property, plant and equipment and assets held for sale, (iii) acquisition and dead deals costs
and (iv) casualty losses (gains).
13 Adjusted EPRA earnings is calculated as EPRA earnings adjusted for (i) deferred tax expenses on items other than the revaluation of investment property and (ii) special
items (‘one-offs’) that are significant and arise from events or transactions distinct from regular operating activities. Excluding one-off insurance reimbursements
received in H1 2021 for €5.6 million (at CER, net of taxes), the growth versus prior year is 15.3% (at CER).
14 Adjusted EPRA earnings per share in euros (basic) is calculated as adjusted EPRA earnings divided by the weighted average number of outstanding shares.
15 EPRA Net Tangible Assets (NTA) scenario is focused on reflecting a company’s tangible assets and assumes that companies buy and sell assets, thereby crystallizing
certain levels of unavoidable deferred tax liability.
16 Loan-to-Value is the net debt expressed as a percentage of the fair value of the group’s investment property and investment property under construction.
17 Interest coverage ratio is calculated as EBITDA divided by total interest expenses for the reporting period.
18 Net debt to EBITDA ratio is calculated as the net financial debt divided by EBITDA for the reporting period.
SHURGARD ANNUAL REPORT 2022
24
PRELIMINARY REMARKS
Shurgard Self Storage S.A. (referred to as the “Company”, “Shurgard”, “we”, “us”, “our” or the “Group”, which
includes the Company together with its consolidated subsidiaries) has the form of a public limited liability
company (Société Anonyme) and is governed by the laws of the Grand Duchy of Luxembourg (Luxembourg).
Certain statements contained herein may be statements of future expectations and/or other forward-looking
statements that are based on our current views and assumptions. These involve known and unknown risks and
uncertainties that may cause actual results, performance, or events to differ materially from those expressed or
implied in such statements. Shurgard does not intend and does not undertake any obligation to revise these
forward-looking statements.
GROUP OVERVIEW
BUSINESS MODEL
We are the largest operator of self-storage facilities, which we refer to as properties, stores, assets, or locations,
in Europe in terms of number of properties and net rentable sqm.
1
We started our operations in 1995 and are
one of the pioneers of the self-storage concept in Europe. As of December 31, 2022, we operate 267 self-storage
stores (including one under management contract) in France, the Netherlands, the United Kingdom (UK), Sweden,
Germany, Belgium, and Denmark.
Across this network, we have developed an integrated self-storage group with local expertise in the seven
countries. We have centralized in-house capabilities to design, develop, acquire, and operate properties. This
allows us to provide a consistent experience to residential and commercial customers.
We generate revenue through the lease of storage units and related activities such as the sale of storage products
and packaging, but also through the fees paid by customers for the insurance cover of the stored goods. Our
property operating revenue and income from property (NOI) have increased steadily in recent years. Over this
time, we increased rental rates across our network and grew our portfolio through new developments,
redevelopments, and acquisitions. The table below shows our property operating revenue and NOI for the
financial year 2022 compared to 2021.
(in € millions) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Property operating revenue 86.6 79.4 9.1% 333.0 299.9 11.0%
NOI 59.0 53.0 11.3% 219.2 194.4 12.8%
NOI margin 68.1% 66.8% 1.3pp 65.8% 64.8% 1.0pp
1 FEDESSA “European Self Storage Annual Survey” 2022.
SHURGARD ANNUAL REPORT 2022
25
OUR OPERATING PLATFORM
Our integrated, digitalized, and centralized operating platform allows us to manage many operational functions
for our portfolio of properties from a central location/head office. This centralization of skills and management
enables us to run a lean organization and provides significant operational leverage. The resulting economies of
scale have a direct positive impact on our NOI margin, which was 65.8% in 2022 compared to 64.8% in 2021.
Our platform approach relies on consistency in our performance measures and key support functions across the
portfolio. This means managing the yield achieved from our properties through a balance of occupancy and
pricing levels. It also means we have consistency in operational and management initiatives, such as aligning
sales processes, branding, shop design and supplier relations. On a granular level though, we can gather
information on local conditions and monitor online traffic, conversion rates and other key metrics through our
automated centralized information management systems.
We continue to target growth through further development and bolt-on acquisitions. As an increasing proportion
of our sales and marketing activities migrate to online customer interactions, we believe this platform approach
will play a significant role in maintaining efficient operations across our network. This belief is supported by the
scalability of our information management systems and centralized platform, and the consistency of operations
in each of our properties.
GROUP STRUCTURE
Shurgard Self Storage S.A. is the parent Company and principal holding Company of the Group. The Company’s
significant holding and operational subsidiaries are in France, the Netherlands, the United Kingdom (UK), Sweden,
Germany, Belgium and Denmark.
Name
1
Jurisdiction
Percentage ownership
(directly or indirectly)
Shurgard Luxembourg S.à r.l. Luxembourg 100.0%
Shurgard Holding Luxembourg S.à r.l. Luxembourg 100.0%
Eirene RE S.A. Luxembourg 100.0%
Shurgard France SAS France 100.0%
Shurgard Belgium NV/SA Belgium 100.0%
Shurgard Europe VOF/SNC Belgium 100.0%
Shurgard Germany GmbH Germany 100.0%
First Shurgard Deutschland GmbH Germany 94.8%
Second Shurgard Deutschland GmbH Germany 94.8%
Shurgard Nederland B.V. The Netherlands 100.0%
Shurgard UK Ltd The United Kingdom 100.0%
Shurgard Denmark ApS Denmark 100.0%
Shurgard Sweden AB Sweden 100.0%
Shurgard Storage Centers Sweden KB Sweden 100.0%
1 The entities listed are our main operating and holding entities. For a complete list of the Company’s subsidiaries, please refer to the Note 39 of Shurgard’s
financial statements.
SHURGARD ANNUAL REPORT 2022
26
Since 2021, Eirene RE S.A. acts as a reinsurance undertaking for the Company and its subsidiaries.
All the Company’s subsidiaries are, directly and indirectly, wholly owned, except for First Shurgard Deutschland
GmbH and Second Shurgard Deutschland GmbH. We own 94.8% of these two companies and the remaining 5.2%
therein is held by our two principal shareholders through Shurgard German Holdings LLC.
MANAGEMENT
The Group is managed by the Board of Directors together with the Senior Management in accordance with
applicable laws and as laid out in the Company’s Articles of Association. As of December 31, 2022, the Board of
Directors comprised the following 11 members:
Name Position Age Mandate expires
Ronald L. Havner, Jr.
1
Chairman 65 Annual shareholders’ meeting 2023
Marc Oursin Chief Executive Officer 60 Annual shareholders’ meeting 2023
Z. Jamie Behar
2
Director 65 Annual shareholders’ meeting 2023
Everett B. Miller III
2
Director 77 Annual shareholders’ meeting 2023
Daniel C. Staton
1
Director 69 Annual shareholders’ meeting 2023
Ian Marcus Lead Independent Director 63 Annual shareholders’ meeting 2023
Muriel De Lathouwer Independent Director 50 Annual shareholders’ meeting 2023
Olivier Faujour Independent Director 57 Annual shareholders’ meeting 2023
Frank Fiskers Independent Director 61 Annual shareholders’ meeting 2023
Padraig McCarthy Independent Director 62 Annual shareholders’ meeting 2023
Isabelle Moins Independent Director 58 Annual shareholders’ meeting 2023
1 Director elected on the designation of Public Storage.
2 Director elected on the designation of New York State Common Retirement Fund (NYSCRF).
At the Annual General Meeting of Shareholders to be held on May 10, 2023, Shareholders will be asked to vote
on the following proposed Board composition and Directors:
Public Storage and New York State Common Retirement Fund (NYSCRF) have historically been entitled to
designate two directors each to sit on the Board of Directors. Effective May 10, 2023, they will each designate
only one Director. Accordingly, the total number of Directors on the Board will be nine rather than eleven.
On behalf of Public Storage, Tom Boyle, whose biography is below, shall be the Public Storage proposed designee.
Ronald L. Havner, Jr. and Daniel C. Staton will resign from the Board. Mr. Havner will retain the honorary title of
Chairman Emeritus. This will be a non-voting position wherein Mr. Havner will provide advisory services to the
Board as needed. Mr. Havner ’s extensive leadership experience and company and industry knowledge for almost
30 years provides him with an invaluable perspective in Board discussions about the operations and strategic
direction of the Company. This is especially pertinent in a market, Europe, where self-storage awareness has not
yet reached the same level as in the United States.
On behalf of NYSCRF, Z. Jamie Behar shall remain the proposed Director designee. Everett B. Miller III will resign.
Additionally, Isabelle Moins will resign and Lorna Brown, whose biography is below, shall be proposed as a new
Director.
All other current Directors’ mandates will be up for renewal.
SHURGARD ANNUAL REPORT 2022
27
The current Lead Independent Director, Ian Marcus, assuming renewal of his mandate on May 10, 2023, will be
appointed Chairman of the Board. Therefore, the Chairman of the Board will be an independent director.
In summary, assuming the election of the Directors as set forth above, the Board of Directors will be comprised
of nine individuals, six of whom are considered independent. This will raise the percentage of independent
directors from 55% to 67%. Furthermore, 33% of the Directors will be female.
Please find below a short bio of each member of the Board of Directors.
MARC OURSIN, CHIEF EXECUTIVE OFFICER SINCE 2012
Before joining Shurgard in January 2012 as Chief Executive Officer, Mr. Marc Oursin held different executive
positions for several major retailers. In 2010 and 2011, Mr. Oursin managed the turnaround of Sport 2000 in
France with the Private Equity firm Activa Capital.
He started his professional career working at Promodes from 1987 to 1995 in France and Switzerland. He then
joined Carrefour, working at the French retail giant from 1995 until 2009 in leadership and CEO roles in France,
Thailand, South Korea, Taiwan and Belgium. His experience in leading the development and reorganization of
major business to consumer industries is a cornerstone of the current strong management of Shurgard.
He has also served abroad on the Boards of various French chambers of commerce.
Mr. Oursin holds an MBA from Essec Business School Paris and a Master’s degree in Agricultural and Food
Industries Engineering from AgroParisTech.
Z. JAMIE BEHAR, DIRECTOR SINCE OCTOBER 2018
From 2005 to 2015, Ms. Z. Jamie Behar was Managing Director, Real Estate & Alternative Investments, for GM
Investment Management Corporation (GMIMCo), having previously served as Portfolio Manager at the company
for 19 years. Ms. Behar was responsible for the management of approximately $12 billion at peak portfolio value
of primarily private market and publicly traded real estate on behalf of both General Motors Company and other
unaffiliated clients. She has served on numerous Boards within the real estate sector and she brings this
investment, real estate and financial expertise to the Shurgard Board.
Ms. Behar currently serves on the Board of Armour Residential REIT, Inc. (NYSE: ARR), as well as on the Boards
of Sila Realty Trust, a public, non-traded REIT, and Benefit Street Partners Multifamily Trust, an open-ended,
private real estate fund. She also serves as an Independent Member of the CBRE Investment Management -
Indirect Private RE Investment Committee. Ms. Behar is a member of the Real Estate Investment Advisory Council
of the National Association of Real Estate Investment Trusts (Nareit), and serves as an advisor to the Investment
Committee of the Board of the non-profit Guiding Eyes For The Blind. Ms. Behar previously served on the Boards
of Sunstone Hotel Investors, Inc., Gramercy Property Trust, Forest City Realty Trust, Desarrolladora Homex, SAB
de CV and Hospitality Europe, B.V., as well as on the Board of the Pension Real Estate Association (PREA), having
held the position of Board Chair of PREA from March 2010 to March 2011.
Ms. Behar holds a B.S.E (magna cum laude) from The Wharton School, University of Pennsylvania, an M.B.A. from
Columbia University Graduate School of Business, and the Chartered Financial Analyst (CFA) designation. In
December 2018, Ms. Behar was the recipient of Nareit’s E. Lawrence Miller Industry Achievement Award for her
contributions to the REIT industry.
SHURGARD ANNUAL REPORT 2022
28
TOM BOYLE, PROPOSED DIRECTOR
Mr. Tom Boyle is Chief Financial Officer and Chief Investment Officer of Public Storage. He is responsible for
capital allocation including development, acquisitions, asset management and third-party management as well
as leading finance and accounting, revenue management and risk management including the storage insurance
program.
Mr. Boyle has experience building and leading teams and has worked closely with Public Storage’s executive
leadership since his arrival in 2016. He was also instrumental in diversifying the company’s capital structure
beginning with the company’s inaugural public bond offering in 2017.
From 2005-2016, Mr. Boyle held various positions at Morgan Stanley. In his last role, Mr. Boyle was Executive
Director, Equity and Debt Capital Markets. In that role, he led a capital markets team for equity and debt financing
for US real estate lodging and gaming companies.
Mr. Boyle holds a Bachelor of Arts in Economics from the University of Notre Dame.
OLIVIER FAUJOUR, INDEPENDENT DIRECTOR SINCE OCTOBER 2018
Mr. Olivier Faujour held various CEO positions in Fast-Moving Consumer Goods companies at local, regional and
global levels. He was the Chief Executive Officer of the Smartbox group, the European leading experience gift
company, from 2018 to 2020. From 2010 to 2018 he worked at General Mills International and served in executive
leadership roles that included Global Chief Executive Officer of Haagen-Dazs & Yoplait, Chief Executive Officer
and Executive Chairman of Yoplait, and President of General Mills France, Southern Europe and Benelux. His
experience of brand building and strategic company development underpin the insight Mr. Faujour brings to the
Shurgard Board. Prior to joining General Mills, Mr. Faujour served in various executive and marketing roles at
Michelin, Danone and Procter & Gamble.
Mr. Faujour is also a senior advisor for various private equity firms (e.g. KKR, Blackstone, BC Partners) and for
several digital companies with active consulting roles linked to digital stakeholders. He is also an Angel Investor
in various start-ups.
Mr. Faujour holds an MBA from ESCP Graduate Business School.
FRANK FISKERS, INDEPENDENT DIRECTOR SINCE OCTOBER 2018
Mr. Frank Fiskers is a member of the Board of Whitbread PLC, the UK’s largest hospitality company. He has
extensive experience leading large organizations in the hospitality, retail and consumer services industry, and
brings this broad experience to his current Board positions. Previously, Mr. Fiskers was on the Board of Norstedt,
as Chairman, and for two years from 2010, Mr. Fiskers served as Chairman of the Board of Akademibokhandln.
Mr. Fiskers has served as a Board member of the Swedish Hospitality Employers Association, Dame Thomas
Foundation for Young People, and British Hospitality Association.
In his executive roles, he served as Chief Executive Officer of Scandinavian hotel chain First Hotels, retailer
Kooperativa Forbundet (KF), and of Scandic Hotels Group AB where he was previously President and Chief
Executive Officer, as well as in various management positions within Hilton Hotels Corporation.
Mr. Fiskers attended William & Mary University, Cornell University, London School of Economics and IMD.
SHURGARD ANNUAL REPORT 2022
29
IAN MARCUS, INDEPENDENT DIRECTOR SINCE OCTOBER 2018
Mr. Ian Marcus is a member of Redevco’s Advisory Board and a Non-Executive Director for Town Centre Securities
Plc. He was appointed as a Senior Consultant to Eastdil Secured in 2013. He is also a Trustee of the Saracens
Multi Academy Trust, a Senior Advisor to Work Life and Elysian Residences. He chaired the Princes Regeneration
Trust for 11 years and was a Trustee of the Princes Foundation for 4 years.
Formerly Mr. Marcus was in the banking industry for over 32 years having previously worked for Bank of America,
UBS, NatWest and Bankers Trust/Deutsche, always focusing on the real estate industry.
He joined Credit Suisse First Boston in 1999 to establish the Real Estate Group and became Managing Director
and Chairman of the European Real Estate Investment Banking.
Mr. Marcus is a former Crown Estate Commissioner, a past President of the British Property Federation, past
Chairman of the Investment Property Forum, Past President of the Cambridge University Land Society, a Fellow
of the RICS and for 10 years chaired the Bank of England Commercial Property Forum.
Mr. Marcus graduated from the University of Cambridge in 1981 with a degree in Land Economy.
Mr. Marcus was made an Officer of the Order of the British Empire in HM Queen’s 2020 Birthday Honours List.
PADRAIG MCCARTHY, INDEPENDENT DIRECTOR SINCE OCTOBER 2018
Mr. Padraig McCarthy is a Senior Advisor and Partner in NewSpace Capital, a private equity firm which he joined
in 2018 and where he also previously served as Chief Financial Officer. Prior to this he served in various financial
leadership positions during his 23-year tenure at SES, Europe's leading satellite operator, including Chief
Financial Officer of SES Astra from 2002 to 2011 and of SES from 2013 to 2018. His extensive experience as a
global senior finance and business leader is brought to bear in his role on Shurgard’s Board. He currently also
serves as a Senior Advisor to Kleos SA where he previously served on the board and he has also previously served
on various Boards within the NewSpace Capital structure.
He has been on the Board of SES Astra, a subsidiary of SES, since 2013, relinquishing his executive role in 2018.
From 2013 until 2018, Mr. McCarthy also chaired the Board of SES Insurance International, SES Insurance
International Re, SES's insurance companies, and has served on various other Board roles with SES for wholly-
and non-wholly-owned entities.
Prior to joining SES, Mr. McCarthy was Financial Director for Europe at Norton S.A.
Mr. McCarthy holds an Honors Bachelor of Commerce from University College Cork. He is a Fellow of the Irish
Institute of Chartered Accountants and pursued advanced management programs at Babson College U.S.A. and
INSEAD.
MURIEL DE LATHOUWER, INDEPENDENT DIRECTOR SINCE OCTOBER 2018
Mrs. Muriel De Lathouwer is an independent Board member of several listed and private companies including
Shurgard listed on Euronext, the family groups Etex and Olympia Group of companies, as well as CPH bank in
Belgium. She is also president of the Board of ULB dev (in charge of the economic development of the patents
issued by the Research and Development from the “Université Libre de Bruxelles”), member of the deep tech
investment committee of the SRIW and vice-president of the non-profit organization Coderdojo Belgium.
SHURGARD ANNUAL REPORT 2022
30
From 2014 to 2018 she served as Chief Executive Officer and Managing Director of the public company EVS, global
leader of live video production technology. Prior to that, Mrs. De Lathouwer was Chief Marketing Officer of Base
and co-founder of a sustainable real-estate consulting company. She was Associate Principal at McKinsey from
2001 to 2008.
Her role as senior advisor to a wide range of international companies, and her interest and focus on digital
transformation and sustainable real estate provide a range of skills and experience that enhances Shurgard’s
Board.
Mrs. De Lathouwer holds a Master’s degree in Nuclear Physics Engineering from the University of Brussels and a
MBA from INSEAD.
LORNA BROWN, PROPOSED INDEPENDENT DIRECTOR
Ms. Lorna Brown is an established real estate professional with extensive experience investing in real estate debt
and equity, gained during a 22-year career spanning a number of major financial institutions and asset managers.
In 2022, she assumed the role of Chief Executive Officer and established Birchwood Real Estate Capital as a new
commercial real estate investment manager with US insurer WR Berkley as the cornerstone investor.
Ms. Brown's diverse career has seen her hold senior positions at a range of real estate investment firms including
at UK-based real estate management and advisory firm Delancey, where she was Head of Capital Markets
between 2020 and 2022. There she managed direct real estate investment and debt sourcing for an existing
£1bn UK real estate fund, and established the first debt fund, raising new external equity. Prior to this, Ms. Brown
was Head of Real Estate Debt at Legal and General Investment Management and held Managing Director
positions at Blackstone Real Estate and The Royal Bank of Scotland. She holds a master’s degree in Land Economy
from the University of Aberdeen, and an Honours degree in Environmental Planning from the University of
Strathclyde and is a fellow of the Royal Institution of Chartered Surveyors.
As of December 31, 2022, the Senior Management of the Group was made up of the following five members, who
hold their positions through employment contracts with entities of the Group, except for the Chief Executive
Officer who has a management agreement and who is appointed and may be removed by the Board of Directors.
Name Responsibilities Age Initial appointment
Marc Oursin Chief Executive Officer 60 January 9, 2012
Jean Kreusch Chief Financial Officer 58 November 1, 2003
Duncan Bell Chief Operating Officer 59 April 14, 2009
Ammar Kharouf General Counsel 52 March 17, 2014
Isabel Neumann Chief Investment Officer 47 August 30, 2021
SHURGARD ANNUAL REPORT 2022
31
MARKET OVERVIEW
SELF-STORAGE BASICS
Self storage is a business to consumer (B2C) enterprise in a niche real estate sector that rents storage units,
typically on a monthly basis, to individuals (approximately 71%) and business users (approximately 29%).
1
Individuals primarily use self storage as a “remote attic or basement” to store household goods, while businesses
usually store excess inventory or archived records. Storage units often differ in size and can range from one sqm
to more than 50 sqm. One of the key drivers of self-storage adoption is population density, where space is at a
premium, and householders or businesses need cost-effective storage solutions.
For individuals, the industry accommodates storage needs generated by a broad set of “life changes”, e.g. death,
divorce, marriage, relocation, moving and university, as well as longer-term discretionary uses. On the
commercial side, self storage is used by small businesses, e-businesses and other home-based operations as
well as large companies looking for overflow storage or the ability to place materials in various locations for sales
people or retail distribution.
EUROPEAN SELF-STORAGE MARKET
The European self-storage market has been characterized by a period of sustained growth in recent years. It
currently comprises approximately 5,430 facilities across Europe, providing nearly 11.5 million sqm of space.
1
1F In
the seven countries where we operate, there are approximately 9.0 million sqm of rentable area across
approximately 3,890 self-storage properties (including UK containers).
1
The largest self-storage market in Europe is the United Kingdom, accounting for 38% of total facilities. Over
78% of the facilities are located in the six most mature countries within Europe (UK, France, Spain,
the Netherlands, Germany and Norway).
1
The average amount of self-storage floor area per capita across Europe
is 0.023 sqm.
1
This compares to 0.84 sqm in the much more mature US market, indicating significant further
growth potential.
2
In terms of competition, the European self-storage market is still highly fragmented. Shurgard,
as the largest operator, represents approximately 5% of the stores, 11% of the total space across Europe and
accounts for 15% of total space in the seven countries in which we operate.
1
Moreover, we have a market share
of more than 25% in the cities where we operate.
The industry growth has been driven by increases in customer demand, supported by demographic and
macroeconomic trends, increasing customer awareness of self storage, and continued development in the supply
of self-storage properties. During the pandemic the industry proved its resilient nature as it did during the global
financial crisis in 2008. Self storage recorded excellent rent collection levels from customers and an increase in
occupancy and rental levels. In addition, the trend towards greater online functionality and more sophisticated
platforms has been accelerated by the COVID-19 pandemic, with many customers becoming more comfortable
with online transactions, especially in the older age groups.
Several factors have supported demand for self storage from residential customers in recent years. These include
favorable demographic and macroeconomic trends, such as population growth, urbanization, higher levels of
mobility, micro-living, increasing personal wealth and ownership of more storable goods, as well as increased
consumer awareness. Furthermore, with the increase in hybrid working, many people have created a home office
so have turned to self storage to create space for this by storing household items that they do not need every
day. These trends have been particularly strong in urban areas, where high density levels, elevated housing costs
and the scarcity of housing and storage space are expected to support longer-term pricing rates and occupancy
levels. Demand from business customers has generally been supported by the growth of new online retailers and
small businesses, which require flexible and cost-effective storage options. We expect these trends to continue
to support the demand for self storage in the coming years.
1 FEDESSA “European Self Storage Annual Survey” 2022.
2 FEDESSA “European Self Storage Annual Survey” 2020.
SHURGARD ANNUAL REPORT 2022
32
Supply of self-storage properties has grown significantly in recent years, alongside increases in customer
demand. This growth is also influenced by the high level of fragmentation in the European self-storage industry.
As a result, the market has been characterized by periods of consolidation in recent years, which we expect to
continue in the future.
GROWTH STRATEGY
Our goal is to enhance shareholder value by further strengthening our position as the leading self-storage
operator in Europe, operating strategically-located properties and providing an increasingly digitalized customer
service designed to satisfy the requirements and priorities of both residential and business customers.
We aim to expand our position in the seven countries where we operate, with a particular focus on attractive
urban areas such as London, Paris, Berlin and other major German cities, as well as Randstad in the Netherlands.
Our growth strategy benefits from our established track record of redeveloping, developing, and acquiring
properties. With our centralized and technology-focused operating platform, we will benefit from immediate
operating leverage and additional economies of scale.
REDEVELOPMENT
Thanks to our 93% freehold portfolio, we are able to continuously analyze our operations for opportunities to
undertake remix projects. As part of this, we monitor a variety of demand metrics across our existing property
network. These are based on factors like occupancy rates for various unit sizes, customer visits to our website,
online pricing searches, and in-store interactions with our customers. Where these metrics indicate the property
could benefit from a remix, we reorganize the units at a property to reflect customer demand in that particular
market to improve occupancy levels or increase rental rates.
We also expand our existing properties when there is an increase in local demand and the returns justify the
expansion of rentable area.
NEW DEVELOPMENT
We are seeking to develop 70,000 sqm per year from 2024, with our reinforced development team of dedicated
development and construction specialists. We plan to increase our (re)development pipeline from 32,800 sqm
opened in 2022 and 51,400 sqm planned to open in 2023, to 70,000 sqm as from 2024. To do so, we are focusing
on a set of clear selection criteria, both operational and financial, including attractive and cycle-resilient locations
in our existing markets.
ACQUISITIONS
Finally, we intend to continue to take advantage of the strong fragmentation of the self-storage market in Europe
to acquire properties from competitors across the seven countries where we operate, as well as strategic
acquisitions where we deem appropriate. We believe that our experience and knowledge of the markets in which
we currently operate should enable us to identify opportunities with attractive potential returns. We are targeting
to add 20,000 sqm through acquisitions per year on average in the medium term, benefiting from immediate
operating leverage and additional economies of scale. We continue to focus on urban areas that we anticipate
will enjoy strong demand during all economic cycles and provide attractive growth potential.
SHURGARD ANNUAL REPORT 2022
33
YIELD MANAGEMENT
Our goal is to maximize revenue through increased occupancy levels and rental rates. When the occupancy rate
of a property reaches maturity, we generally seek to increase rental rates to drive revenue growth through best-
in-class yield management. We regularly evaluate our properties’ rental rates based on unit demand and unit
availability. We adjust our marketing and promotional activities and change rental rates as necessary to enhance
revenue.
BRAND AND MARKETING
We believe that the Shurgard brand is a critical marketing tool and we use a variety of channels to increase
customer awareness of our name. These include highly visible property locations, site signage and architectural
features. In addition, our marketing and sales processes are supported by several activities on social media and
other websites to improve our brand awareness and direct potential customers to our website and properties.
RESEARCH AND DEVELOPMENT
As part of our marketing activities, we regularly conduct focus group research and online surveys to identify the
primary considerations in customers’ self-storage choices and satisfaction. This allows us to better attract and
service customers.
PROPERTY PORTFOLIO
OUR PROPERTIES
The number of properties we operate (including stores under management contract) has grown to a network of
267 properties comprising 1,350,906 net rentable sqm, as of December 31, 2022. We primarily operate in urban
areas across Europe, with 93% of our properties located in capital and major cities. At the end of December
2022, 93% of our net square rentable area was in properties that we own (“freehold properties”) or operate
under long-term lease agreements of at least 80 years remaining life (“long leasehold properties”). The
occupancy rate across all properties averaged 88.4% for the full year 2022. The average in-place rent per sqm
was €252.2 during the year.
The following table shows our portfolio by country, as of December 31, 2022:
Total number of
properties
Net rentable
sqm (in
thousands)
Freehold and
long leasehold
1
Average
occupancy rate
2
Average in-
place rent (in €
per sqm)
3
France 66 332 94.5% 85.8% 254.8
The Netherlands 65 321 84.4% 90.2% 214.8
United Kingdom 41 202 96.7% 86.0% 332.2
Sweden 39 196 94.4% 91.5% 256.2
Germany 25 130 95.6% 85.0% 246.6
Belgium 21 117 100.0% 91.7% 201.3
Denmark 10 53 100.0% 93.3% 275.4
Total 267 1,351 93.2% 88.4% 252.2
1 Average calculated as a weighted average by net rentable sqm.
2 Average occupancy rate is calculated as the average of the rented sqm divided by the average of the rentable sqm, each for the reporting period.
3 Average in-place rent is presented in euros per sqm and calculated as rental revenue divided by the average rented sqm for the reporting period.
SHURGARD ANNUAL REPORT 2022
34
Our net rentable sqm have grown by 4.8%, from 1,289,325 sqm as of December 31, 2021 to 1,350,906 sqm as of
December 31, 2022. This growth is mainly a result of our portfolio expansion in 2022 (65,359 net rentable sqm),
offset by the closure of one store in Germany (3,687 net rentable sqm).
During the last quarter of 2022, Shurgard purchased three properties in Sweden, adding 7.2% (13,135 sqm) to
our Swedish portfolio.
The second biggest increase in our portfolio has come from France, where we added 6.8% (21,584 sqm) with the
opening of Lagny in March, Sartrouville in October and Versailles South in December; and the acquisition of one
property from Box à la Carte in Paris in November.
We have further increased our portfolio by 6.5% (6,580 sqm) in Germany mainly from the opening of Dusseldorf
Rath in September and Cologne Merheim in October. This increase was partially offset by the closure of Munich
Obersendling following the end of the lease, removing 3.0% (3,687 sqm) net rentable sqm from our German
portfolio.
During the second half of 2022, Shurgard also increased its portfolio in the Netherlands by 5.6% (16,915 sqm),
by acquiring and (re)developing a total of five properties.
Finally, we also acquired one property in the UK in May 2022, expanding our portfolio by 1.2% (2,491 sqm).
SHURGARD ANNUAL REPORT 2022
35
PORTFOLIO EXPANSION
Property Region Country
Completion
date
Net sqm
Direct
project cost /
purchase price
1
Opened in 2022
65,359
142,666
Major redevelopments
Arnhem Randstad Netherlands
Dec-22
967 944
New developments
Lagny
Paris
France
Mar-22
5,531
10,349
Dusseldorf Rath NRW Germany Sep-22 4,530 12,278
Rotterdam Capelle
Randstad
Netherlands
Sep-22
4,356
3,214
Cologne Merheim
NRW
Germany
Oct-22
5,737
13,695
Sartrouville Paris France Oct-22 4,890 10,235
Rotterdam Spijkenisse Randstad Netherlands Dec-22 2,525 5,134
Versailles South
Paris
France
Dec-22
5,263
10,224
M&A / Asset Acquisition
CityStore Self Storage
London
UK
May-22
2,491
6,781
Grepu Vastgoed
Randstad
Netherlands
Sep-22
3,266
9,000
Box à la Carte
Paris
France
Nov-22
5,900
9,200
Instorage
Stockholm
Sweden
Nov-22
13,135
33,012
HuurEenBox
Randstad
Netherlands
Dec-22
6,768
18,600
Scheduled to open in 2023 51,372 87,130
Major redevelopments
Unterfoehring
Munich
Germany
Q1 2023
2,302
2,933
Unterfoehring
Munich
Germany
Q2 2023
1,610
1,227
Euston
London
UK
Q2 2023
692
123
Danmarksgatan
2
Stockholm Sweden Q2 2023 1,676 -
Rotterdam Randstad Netherlands Q4 2023 4,537 2,221
New developments
Diemen Visseringweg
Randstad
Netherlands
Q2 2023
4,004
3,072
Amersfoort Randstad Netherlands Q3 2023 3,060 5,240
Portsmuiden
Randstad
Netherlands
Q4 2023
7,505
6,095
Chiswick London UK Q4 2023 6,566 23,151
Chadwell Heath London UK Q4 2023 6,812 17,093
Nice project
Nice
France
Q4 2023
1,263
2,458
1 property
Randstad
Netherlands
Q4 2023
3,177
2,630
1 property London UK Q4 2023 8,168 20,887
Scheduled to open in 2024
25,248
61,709
Major redevelopments
Almere Buiten Randstad Netherlands 2024 1,160 1,867
Handen
Stockholm
Sweden
2024
1,582
3,193
Nacka Stockholm Sweden 2024 2,028 4,262
Southwark London UK 2024 2,692 7,140
New developments
Charlottenburg
Berlin
Germany
2024
4,923
12,766
1 property
Stuttgart
Germany
2024
7,049
16,380
1 property NRW Germany 2024 5,814 16,101
Scheduled to open in 2025 7,329 20,928
New developments
1 property Frankfurt Germany 2025 7,329 20,928
Total portfolio expansion 149,308 312,433
Footnotes – see next page
SHURGARD ANNUAL REPORT 2022
36
1 In € thousands at closing rate December 2022, including development fees and excluding absorption costs. The total purchase price of our 2022 acquisitions
amounts to €76.6 million (€0.1 million higher than the ‘acquisition of investment properties and other assets’ in our cash flow statement, note 12 of the Financial
Statements). This is explained by currency translation impacts (-€0.9 million), the deduction of a lease liability acquired to Box à la Carte to the final purchase
price paid to the seller (+1.3 million) and the other assets and liabilities acquired as part of the transactions and adjusted to the final purchase price (-€0.3
million).
2 Redevelopment project part of the 2022 acquisition of Instorage.
In 2022, our portfolio and pipeline of stores we operate
continued to grow, with 11.7% (or 149,308 sqm) of our
rentable sqm realized, being developed, acquired, under construction and secured. Out of 12 development
projects in the pipeline for 2023, 2024 and 2025, the permits have been received for all but five properties where
the regular building permit process is ongoing. Construction is in progress for two properties in Randstad, two in
London, and one in Berlin.
PROPERTY LAYOUT
Although the size of our properties varies, most consist of multi-story buildings. The rental units typically range
from one to 20 sqm in size. The average unit size is approximately six sqm, although unit sizes are typically
smaller in major metropolitan areas at approximately five to six sqm. As of December 31, 2022, we had
approximately 790 units on average at each property, and our properties had an average rentable area of nearly
5,100 sqm.
SHURGARD ANNUAL REPORT 2022
37
OPERATIONAL AND FINANCIAL REVIEW
GROUP RESULTS
(in € thousands, except where
indicated otherwise)
Q4 2022 Q4 2021 +/- CER FY 2022 FY 2021 +/- +/- CER
Real estate operating revenue 88,662 79,408 13.5% 335,290 300,375 11.6% 12.3%
Real estate operating expense (27,639) (26,371) 6.4% (113,821) (105,566) 7.8% 8.3%
Net income from real estate
operations
61,023 53,037 17.0% 221,469 194,809 13.7% 14.5%
General, administrative and other
expenses
(6,732) (5,923) 15.0% (22,515) (19,440) 15.8% 16.3%
of which depreciation and
amortization expense
(763) (663) 15.4% (2,866) (2,624) 9.2% 9.4%
Acquisition benefit of business
combinations
775 - N/A 775 - N/A N/A
Royalty fee expense (854) (785) 10.6% (3,289) (2,971) 10.7% 11.4%
Operating profit before property
related adjustments
54,212 46,329 19.1% 196,440 172,398 13.9% 14.8%
Valuation gain from investment
property and investment property
under construction
185,605 321,259 -41.1% 586,181 466,575 25.6% 27.3%
Proceeds from property insurance
recovery and gain on disposal of
investment property, property,
plant and equipment
- - -100.0% - 5,717 -100.0% -100.0%
Operating profit 239,817 367,588 -33.5% 782,621 644,690 21.4% 22.8%
Finance cost (4,589) (5,129) -9.0% (20,785) (19,970) 4.1% 4.8%
Profit before tax 235,228 362,459 -33.8% 761,836 624,720 21.9% 23.4%
Income tax expense (58,170) (95,038) -37.7% (186,235) (177,134) 5.1% 5.9%
Attributable profit for the period 177,058 267,421 -32.4% 575,601 447,586 28.6% 30.3%
Profit attributable to non-
controlling interests
(486) (398) 22.0% (1,317) (738) 78.4% 78.4%
Profit attributable to ordinary
equity holders of the parent
176,572 267,023 -32.5% 574,284 446,848 28.5% 30.3%
Earnings per share attributable
to ordinary equity holders of the
parent:
Basic, profit for the period (in €) 1.98 3.00 -32.7% 6.45 5.03 28.1% 29.9%
Diluted, profit for the period (in €) 1.97 2.98 -32.7% 6.40 5.00 28.1% 29.8%
Adjusted EPRA earnings per share
(basic - in €)
0.45 0.39 16.5% 1.61 1.48 9.2% 9.8%
Average number of shares
(basic - in millions)
89.1 88.9 0.2% 89.1 88.8 0.3% 0.3%
The following discussion of group revenue and expenses down to EBITDA is on a constant exchange rate (CER)
basis, where 2021 actual exchange rate (AER) numbers are recalculated using 2022 exchange rates.
SHURGARD ANNUAL REPORT 2022
38
REAL ESTATE OPERATING REVENUE
Our real estate operating revenue is comprised of property operating revenue, which includes rental revenue,
insurance and ancillary revenue, and other revenue.
(in € thousands) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Rental revenue 75,645 67,680 11.8% 289,380 257,007 12.6%
Insurance revenue 8,173 7,708 6.0% 32,075 30,118 6.5%
Ancillary revenue
1
2,792 2,681 4.1% 11,594 10,989 5.5%
Property operating revenue (CER) 86,610 78,069 10.9% 333,049 298,114 11.7%
Other revenue
2
2,052 54 3742.0% 2,241 429 N/A
Real estate operating revenue
(CER)
88,662 78,123 13.5% 335,290 298,543 12.3%
Foreign exchange - 1,285 -100.0% - 1,832 -100.0%
Real estate operating revenue
(AER)
88,662 79,408 11.7% 335,290 300,375 11.6%
1 Ancillary revenue consists of merchandise sales and other revenue from real estate operations.
2 Other revenue consists of management fee revenue and other, non-recurring income resulting from operations. In Q4 2022, the company received a €2.0
million compensation for the lease termination of its Obersendling store in Munich.
Rental Revenue
Rental revenue is derived from our core business of renting storage units. The key levers of rental revenue growth
are more storage space (from acquisitions, new developments, and redevelopments), as well as higher occupancy
and higher rental rates.
In 2022, rental revenue increased by 12.6% to €289.4 million, from €257.0 million in 2021. This was driven by an
increase in rental rates combined with stable occupancy at our same stores, and the solid performance of our
non-same stores during their “ramp-up” phase, where occupancy and rental rates rose strongly. Across our
expanded network, our closing rented sqm increased by 3.9% to 1,167 thousand sqm as of December 31, 2022
from 1,123 thousand sqm on December 31, 2021.
Insurance Revenue
Customers renting storage from Shurgard are required to have insurance for their stored goods. They can use
their own insurance provider or Shurgard can offer its customers insurance protection via an independent
insurance company for customers’ stored goods. Any advice and claims regarding customer insurance are directly
handled by our insurance broker/insurer. Since 2021, the Company manages its insurable risks through a
combination of self-insurance and commercial insurance coverage for property damage, business interruption
and customer goods-related claims via our insurance captive.
As of December 31, 2022, insurance revenue increased by 6.5% to €32.1 million (2021: €30.1 million). This was
driven by our non-same stores, as well as an increase in the proportion of new customers in our same store
segment.
SHURGARD ANNUAL REPORT 2022
39
Ancillary Revenue
Ancillary revenue is derived from the sale of storage products in our properties including cardboard boxes and
packing materials. It also includes other revenue from real estate operations. Ancillary revenue increased from
€11.0 million to €11.6 million in 2022.
REAL ESTATE OPERATING EXPENSE
(in € thousands) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Payroll expense 10,665 10,352 3.0% 42,151 41,192 2.3%
Real estate and other taxes 2,115 2,127 -0.6% 16,834 15,940 5.6%
Repairs and maintenance 3,036 3,476 -12.7% 10,913 9,831 11.0%
Marketing expense 2,418 2,088 15.8% 9,162 8,243 11.1%
Utility expense 887 811 9.4% 3,574 3,734 -4.3%
Other operating expenses
1
5,731 5,054 13.4% 20,810 17,399 19.6%
Doubtful debt expense 1,460 988 47.8% 5,088 3,383 50.4%
Cost of insurance and merchandise
sales
1,327 1,078 23.1% 5,289 5,393 -1.9%
Real estate operating expense (CER) 27,639 25,974 6.4% 113,821 105,115 8.3%
Foreign exchange - 397 -100.0% - 451 -100.0%
Real estate operating expense (AER) 27,639 26,371 4.8% 113,821 105,566 7.8%
1 Other operating expenses mainly include travel expenses, legal and consultancy fees, insurance expenses, non-deductible VAT, information system expenses
and miscellaneous rental expenses.
During 2022, our real estate operating expenses went up by 8.3%. This is mainly attributed to an increase in
doubtful debt expense (€1.7 million), which was driven by the exceptionally low comparable amount in 2021,
approximately 21% below 2020. Further, repair and maintenance expenses increased (€1.1 million) due to higher
expenses in security, and higher overall maintenance cost, mainly following the addition of stores. Payroll
expense, real estate tax and marketing have gone up by €1.0 million, €0.9 million, and €0.9 million, respectively,
following the expansion of our store network. Finally, other operating expenses increased by €3.4 million
following the reinforcement of our IT team with consultants supporting various IT changes and projects, as well
as an increase in travel expenses, a one-off rent adjustment related to prior years in Germany, and higher office
administration and insurance-related expenses.
NET INCOME FROM REAL ESTATE OPERATIONS
Net income from real estate operations reflects the revenue received minus the expenses incurred in running
our real estate operations. Net income growth indicates the strong strategic position of Shurgard’s operating
platform. We can leverage economies of scale as we acquire or develop properties, using our standardized IT and
marketing platform to contain costs and ensure our revenues grow faster than our normalized expenses. Net
income from real estate operations rose by 14.5%, up to €221.5 million in 2022, from €194.8 million in 2021.
SHURGARD ANNUAL REPORT 2022
40
Segment information
The following table shows the development of our property network (same stores and non-same stores) and our
property operating revenue split by the two segments on a year-on-year basis.
(at CER) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Same stores 234 234 - 234 234 -
Non-same stores 32 20 12 32 20 12
All Store 266 254 12 266 254 12
Same store property operating revenue in €
thousands
80,666 74,604 8.1% 313,669 288,912 8.6%
Non-same store property operating revenue
in € thousands
5,944 3,465 71.5% 19,380 9,202 110.6%
All store property operating revenue in €
thousands
86,610 78,069 10.9% 333,049 298,114 11.7%
Same stores
“Same stores” are all developed properties that have been in operation for at least three full years, and all
acquired properties that we have owned for at least one full year from the start of the year. The following table
shows certain performance measures across our same store portfolio.
(at CER) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Property KPIs at period end
Number of properties 234 234 - 234 234 -
Closing rentable sqm
1
1,197 1,189 0.6% 1,197 1,189 0.6%
Closing rented sqm
2
1,074 1,070 0.4% 1,074 1,070 0.4%
Closing occupancy rate
3
89.7% 89.9% -0.2pp 89.7% 89.9% -0.2pp
Property KPIs for the period
Average rented sqm
4
1,078 1,080 -0.2% 1,077 1,072 0.5%
Average occupancy rate
5
90.4% 90.8% -0.4pp 90.5% 90.3% 0.2pp
Average in-place rent (in € per sqm)
6
262.4 240.2 9.2% 253.9 233.1 8.9%
Average revPAM (in € per sqm)
7
270.7 250.9 7.9% 263.5 243.5 8.2%
Financial KPIs for the period
Property operating revenue
8
in € thousands
80,666 74,604 8.1% 313,669 288,912 8.6%
Income from property (NOI)
9
in € thousands
56,197 50,974 10.2% 210,820 190,316 10.8%
NOI margin
10
69.7% 68.3% 1.3pp 67.2% 65.9% 1.3pp
1 Closing rentable sqm is presented in thousands of sqm and calculated as the sum of available sqm for customer storage use at our stores, as of the reporting date.
2 Closing rented sqm is presented in thousands of sqm and calculated as the sum of sqm rented by customers, as of the reporting date.
3 Closing occupancy rate for our same stores is presented as a percentage and calculated as the closing rented sqm in our same stores divided by closing rentable sqm in
our same stores, each as of the reporting date.
4 Average rented sqm is presented in thousands of sqm and calculated as the sum of sqm rented by customers, for the reporting period.
5 Average occupancy rate for our same stores is presented as a percentage and is calculated as the average of the rented sqm in our same stores divided by the average of
the rentable sqm in our same stores, each for the reporting period.
6 Average in-place rent is presented in euros per sqm per year and calculated as rental revenue, divided by the average rented sqm for the reporting period.
7 Average revPAM, which stands for revenue per available sqm, is presented in euros per sqm per year for the reporting period and calculated as property operating revenue,
divided by the average rentable sqm for the reporting period.
8 Property operating revenue for our same stores represents our revenue from operating our same stores, and comprises our rental revenue, insurance revenue and ancillary
revenue.
9 Income from property operations (NOI) for our same stores is calculated as property operating revenue less real estate operating expense for our same stores, each for
the reporting period.
10 NOI margin for our same stores is calculated as income from property (NOI) divided by property operating revenue for our same stores, each for the reporting period.
SHURGARD ANNUAL REPORT 2022
41
The average occupancy rates for our same store network increased by 0.2pp to 90.5%. The average in-place
rent per sqm for our same store facilities increased by 8.9% to €253.9 in 2022 from €233.1 the previous year.
Property operating revenue generated by our same store facilities increased by €24.8 million or 8.6% to
€313.7 million in 2022, driven by increases in average in-place rental rates and higher average rented sqm (up
by 0.5%).
NOI for our same stores rose from €190.3 million in 2021 to €210.8 million in 2022, reflecting our ability to control
operating expenses so that they grow slower than operating revenues. NOI margin for our same stores increased
from 65.9% to 67.2% in 2022.
Non-same stores
Non-same stores are any properties that are not classified as same store for a given year. Occupancy and in-
place rent can vary greatly between these properties depending on their maturity.
Non-same store property operating revenue increased from €9.2 million in 2021 to €19.4 million in 2022. This
increase was due to the continued “ramp-up” at our new properties and the net addition of 12 non-same stores.
SHURGARD ANNUAL REPORT 2022
42
OPERATIONS BY COUNTRY
All store
Property operating revenue
(in € thousands)
Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
France 20,829 19,148 8.8% 79,595 73,438 8.4%
The Netherlands 18,129 16,106 12.6% 68,718 62,184 10.5%
The United Kingdom 17,157 14,844 15.6% 65,894 53,618 22.9%
Sweden 12,007 11,373 5.6% 48,439 45,540 6.4%
Germany 8,059 6,898 16.8% 29,981 26,177 14.5%
Belgium 6,534 5,985 9.2% 25,033 22,884 9.4%
Denmark 3,895 3,715 4.8% 15,389 14,273 7.8%
Total 86,610 78,069 10.9% 333,049 298,114 11.7%
Same store
Property operating revenue
(in € thousands)
Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
France 19,984 18,929 5.6% 77,453 72,873 6.3%
The Netherlands 17,484 15,774 10.8% 66,785 61,060 9.4%
The United Kingdom 14,081 12,856 9.5% 55,211 49,427 11.7%
Sweden 11,895 11,373 4.6% 48,327 45,540 6.1%
Germany 6,793 5,972 13.8% 25,471 22,855 11.4%
Belgium 6,534 5,985 9.2% 25,033 22,884 9.4%
Denmark 3,895 3,715 4.8% 15,389 14,273 7.8%
Total 80,666 74,604 8.1% 313,669 288,912 8.6%
Same store
Average occupancy rate
1
Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
France 89.0% 89.6% -0.6pp 89.2% 89.2% 0.0pp
The Netherlands 91.1% 90.2% 1.0pp 90.7% 90.1% 0.6pp
The United Kingdom 88.7% 89.9% -1.2pp 88.8% 89.2% -0.3pp
Sweden 91.1% 91.9% -0.8pp 91.7% 92.2% -0.5pp
Germany 91.4% 91.6% -0.2pp 91.1% 89.8% 1.2pp
Belgium 92.2% 92.0% 0.2pp 91.7% 90.9% 0.8pp
Denmark 91.6% 95.0% -3.4pp 93.3% 94.3% -1.0pp
Total 90.4% 90.8% -0.4pp 90.5% 90.3% 0.2pp
Same store
Average in-place rent
2
Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
France 272.4 253.7 7.4% 262.1 244.2 7.3%
The Netherlands 226.5 205.5 10.2% 216.9 199.7 8.6%
The United Kingdom 347.1 309.6 12.1% 336.6 299.8 12.3%
Sweden 255.3 239.8 6.4% 256.4 237.5 7.9%
Germany 270.1 239.4 12.8% 254.7 232.7 9.5%
Belgium 209.7 191.8 9.4% 201.3 184.4 9.2%
Denmark 284.9 260.0 9.6% 275.4 249.9 10.2%
Total 262.4 240.2 9.2% 253.9 233.1 8.9%
SHURGARD ANNUAL REPORT 2022
43
Same store
NOI margin
3
Q4 2022 Q4 2021 +/-
FY 2022 FY 2021 +/-
France 67.4% 68.2% -0.8pp 62.5% 61.5% 1.0pp
The Netherlands 73.5% 72.1% 1.4pp 70.4% 69.1% 1.3pp
The United Kingdom 66.7% 64.4% 2.4pp 65.7% 63.9% 1.8pp
Sweden 71.9% 71.3% 0.6pp 72.4% 72.0% 0.4pp
Germany 70.3% 61.0% 9.3pp 67.4% 62.3% 5.1pp
Belgium 68.9% 70.0% -1.2pp 65.3% 66.0% -0.7pp
Denmark 68.2% 66.7% 1.5pp 69.1% 67.3% 1.7pp
Total 69.7% 68.3% 1.3pp 67.2% 65.9% 1.3pp
1 Average occupancy rate is presented as a percentage and is calculated as the average of the rented sqm divided by the average of the rentable sqm, each for
the reporting period.
2 Average in-place rent is presented in euros per sqm per year and calculated as rental revenue divided by the average rented sqm, each for the reporting
period.
3 NOI margin is calculated as income from property (NOI) divided by property operating revenue, each for the reporting period.
Compared to the prior year period, our all-store property operating revenue grew by 11.7% in 2022, delivering
revenue of €333.0 million, and confirming the strong trend observed in the first three quarters of the year. All
our markets contributed to that performance, with a standout performance in the UK where growth of 22.9%
was driven by our successful expansion in London and our capacity to increase our rates while maintaining
occupancy. Our portfolios in Germany and the Netherlands also delivered double-digit growth, benefiting from
all our levers of revenue growth (expansion, same store rate and occupancy increases).
Same store revenue grew by 8.6% compared to the prior year, mainly fueled by an average in-place rent increase
of 8.9% versus the prior year, and a 0.2pp increase in average same store occupancy. Shurgard has managed to
deliver strong fourth quarter results because all its markets were able to implement price rises while maintaining
high occupancy, even in the traditionally weaker season for self storage.
In our largest market France, same store revenue grew by 6.3% compared to the prior year. This is
attributed to a 7.3% rise in average in-place rent, with stable occupancy compared to 2021 at
89.2%;
The Netherlands increased revenue by 9.4% versus the prior year. Rental rates were the main
driver, growing 8.6% compared to 2021, with an acceleration in the last quarter, while average
occupancy also continued to grow (+0.6pp versus 2021);
The United Kingdom remains our fastest growing market at the moment. An impressive 12.3%
increase in rental rates partially offset by a 0.3pp occupancy decrease to 88.8%, resulted in an
11.7% rise in revenue compared to the prior year;
Sweden’s revenue for 2022 was 6.1% higher than the prior year, fully driven by an increase in rental
rates of 7.9% compared to 2021, with a strong 91.7% occupancy;
In Germany, we saw the strongest increase in occupancy of all our markets, up +1.2pp versus the
prior year (91.1%). Combined with rental rate growth of 9.5%, this market was able to achieve
11.4% revenue growth compared to 2021;
Belgium’s revenue grew 9.4% versus the prior year due to a 9.2% increase in rental rates coupled
with all time high occupancy levels (+0.8pp versus the prior year) at 91.7%;
SHURGARD ANNUAL REPORT 2022
44
In Denmark, rental rate growth of 10.2% compensated for the 1.0pp occupancy decline (the
occupancy still being at a high 93.3%) versus the prior year, resulting in revenue growth of 7.8%
versus the prior year;
Shurgard’s same store revenue performance was minimally impacted by a loss on SEK (-4%, or
- €2.1 million), which was partially countered by a favorable fluctuation in the GBP exchange rate
(+1% or +€0.4 million).
GENERAL, ADMINISTRATIVE AND OTHER EXPENSES
(in € thousands, at CER) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Payroll expense 2,969 2,343 26.7% 11,982 9,232 29.8%
Share-based compensation expense 920 1,745 -47.2% 3,899 3,792 2.8%
Capitalization of internal time spent on
development
(1,063) (681) 56.1% (3,831) (2,252) 70.1%
Depreciation and amortization expense 763 661 15.4% 2,866 2,620 9.4%
Other general and administrative
expenses
1
3,143 1,788 75.8% 7,599 5,974 27.2%
Total 6,732 5,856 15.0% 22,515 19,366 16.3%
4 Other general and administrative expenses mainly include legal, consultancy and audit fees and non-deductible VAT.
General, administrative and other expenses increased by 16.3%, from €19.4 million in 2021 to €22.5 million in
2022. Our payroll expense has gone up by €2.8 million versus the prior year, mainly resulting from new hires to
support our development plans, while the capitalization of internal time spent went up by €1.6 million reflecting
our increased development pipeline. Other general and administrative expenses mainly went up following an
exceptional insurance recovery proceed (€ 0.8 million) received in 2021.
ROYALTY FEE EXPENSE
We pay our shareholder Public Storage a royalty fee equal to 1.0% of revenues (net of doubtful debt expenses)
in exchange for the rights to use the “Shurgard” trade name and other services. In 2022, we incurred royalty fees
of €3.3 million.
OPERATING PROFIT BEFORE PROPERTY RELATED ADJUSTMENTS
Operating profit before property related adjustments increased by 14.8%, from €171.1 million in 2021 to
€196.4 million in 2022, reflecting the operational strength of the core business (before non-cash adjustments
and exceptional items).
SHURGARD ANNUAL REPORT 2022
45
EBITDA
(in € thousands) Q4 2022 Q4 2021 +/- FY 2022 FY 2021 +/-
Operating profit before property related
adjustments
54,212 46,329 17.0% 196,440 172,398 13.9%
Depreciation and amortization expense 763 663 15.2% 2,866 2,624 9.2%
Other
1
362 621 -41.9% 459 (157) N/A
EBITDA (AER) 55,337 47,613 16.2% 199,765 174,865 14.2%
Foreign exchange - (853) -100.0% - (1,336) -100.0%
EBITDA (CER) 55,337 46,760 18.3% 199,765 173,529 15.1%
1 Other includes abandoned project costs, acquisition benefits of business combinations, cease-use lease expense and casualty gain (excluding property
insurance recovery proceeds).
At constant exchange rates, EBITDA rose by 15.1% in 2022, from €173.5 million the previous year to €199.8 million
this year, mainly due to an increase in property operating revenue of 13.9%.
VALUATION GAINS FROM INVESTMENT PROPERTY, INVESTMENT PROPERTY UNDER CONSTRUCTION AND
RIGHT-OF-USE INVESTMENT PROPERTY
The Company recognized a valuation gain from investment property, investment property under construction
and the Right of Use Investment Property (ROU IP) of €586.2 million for 2022, which compares to a valuation
gain of €466.6 million for 2021. The valuation assumptions made by external valuers Cushman & Wakefield
include predicted occupancy levels, rental rates, expenses, and other factors, such as cap and discount rates,
that, depending on each assumption, can cause substantial fluctuations in valuation gains each year.
The valuation gain of €586.2 million, combined with capital expenditure, and exchange rate effects, resulted in
total investment property increase of €676.7 million (+17.6%) to €4,523.8 million, compared to December 31,
2021. The valuation gain is mainly a result of a 46bp exit cap rate contraction (from 5.65% in December 2021 to
5.19% on December 31, 2022), combined with higher operating cash flows.
OPERATING PROFIT
Operating profit increased by 21.4% from €644.7 million in 2021 to €782.6 million in 2022, mostly due to
€119.6 million higher gains on valuation from investment property and an improvement in NOI.
FINANCE COSTS
(in € thousands) FY 2022 FY 2021 +/-
Total interest expense 20,696 19,985 3.6%
Foreign exchange (gain)/loss 89 (15) N/A
Finance cost, net 20,785 19,970 4.1%
Finance costs increased by 4.1% (or €0.8 million) to €20.8 million in 2022 from €20.0 million in 2021. This mainly
reflects the impact of our new €300 million notes issuance in July 2021 (+€0.7 million).
SHURGARD ANNUAL REPORT 2022
46
INCOME TAX EXPENSE
(in € thousands) FY 2022 FY 2021 +/-
Current tax expense 30,311 26,019 16.5%
Deferred tax expense 155,924 151,115 3.2%
Income tax expense 186,235 177,134 5.1%
Adjusted EPRA earnings effective tax rate
1
17.4% 16.6% 0.9pp
1 Adjusted EPRA earnings effective tax rate is current tax expenses divided by adjusted EPRA earnings before tax.
Current tax expense increased in line with expectations from €26.0 million in 2021 to €30.3 million in 2022.
Deferred tax expense of €155.9 million in 2022 were predominately impacted by the revaluation gains on our
investment property and investment property under construction. Consequently, the adjusted EPRA earnings
effective tax rate for 2022 ended at 17.4%, compared to 16.6% in 2021.
ATTRIBUTABLE PROFIT AND ATTRIBUTABLE PROFIT PER SHARE
For 2022, €574.3 million (2021: €446.8 million) profit was attributable to the shareholders of Shurgard
Self Storage S.A., and €1.3 million (2021: €0.7 million) was attributable to non-controlling interests. Based on the
average number of shares (2022: 89.1 million), this translates into basic earnings of €6.45 per share.
EPRA KPIS
(in € thousands, except where indicated) FY 2022 FY 2021 +/-
EPRA Earnings 144,225 129,426 11.4%
Adjusted EPRA Earnings 143,556 131,049 9.5%
Capital Expenditure 188,887 131,077 44.1%
EPRA Vacancy Rate 13.1% 12.3% 0.7pp
EPRA LFL Rental Growth
1
9.5% 7.8% 1.7pp
EPRA Cost ratio (including direct vacancy costs) 46.6% 48.1% -1.5pp
EPRA Cost ratio (excluding direct vacancy costs) 46.6% 48.1% -1.5pp
EPRA Net Initial Yield (NIY) 6.4% 6.5% -0.2pp
EPRA Net Initial Yield “topped-up” NIY 6.4% 6.5% -0.2pp
1 Shurgard classifies as “LFL” (i) all developed stores that have been in operation for at least three full years, and (ii) all acquired stores that we have owned for
at least one full year, each measured as of January 1 of the relevant year. This definition corresponds to our same store definition.
We have identified certain non-GAAP measures that we believe give a good reflection of the performance of our
underlying business. They are based on definitions from the European Public Real Estate Association (EPRA) in
their best practices guidelines dated February 2022. They include EPRA earnings and adjusted EPRA earnings
which are presented in detail below. The basis on which we calculate these EPRA KPIs are illustrated in the
Appendix of the annual report (Alternative Performance Measures).
SHURGARD ANNUAL REPORT 2022
47
EPRA EARNINGS
(in € thousands, except for EPRA EPS) FY 2022 FY 2021 +/-
Profit attributable to ordinary equity holders of the parent 574,284 446,848 28.5%
Adjustments:
Gain on revaluation of investment properties
1
(586,181) (466,575) 25.6%
Acquisition benefit of business combinations and other (775) - N/A
Current and deferred tax in respect of EPRA adjustments 155,878 148,668 4.9%
Non-controlling interests in respect of the above
2
1,019 485 109.7%
EPRA earnings 144,225 129,426 11.4%
EPRA earnings per share (basic - in €) 1.62 1.46 11.1%
EPRA earnings per share (diluted - in €) 1.61 1.45 11.1%
1 Including investment property under construction and right-of-use investment property assets.
2 Non-controlling interests are presented net of current income taxes.
EPRA earnings exclude acquisition costs which can fluctuate depending on the number and size of acquisitions,
the gains or losses on the revaluation of investment property, and other asset sales which are not part of the
operational running of the business.
ADJUSTED EPRA EARNINGS
(in € thousands, except for Adjusted EPRA EPS) FY 2022 FY 2021 +/-
EPRA earnings 144,225 129,426 11.4%
Company specific adjustments:
Non-recurring expenses
1
(1,269) (966) 31.3%
Tax adjustments
2
600 2,589 -76.8%
Adjusted EPRA earnings 143,556 131,049 9.5%
Adjusted EPRA earnings per share (basic - in €) 1.61 1.48 9.2%
Adjusted EPRA earnings per share (diluted - in €) 1.60 1.47 9.2%
1 Non-recurring expenses consist of (i) insurance recovery proceeds, (ii) compensation received for lease agreement
termination and (iii) UK REIT set up costs.
2 Tax adjustments consist of (i) deferred tax expense on items other than revaluation of investment property, (ii) net impact of tax assessments and (iii) current income tax
effect of the Company specific adjustment items included in this Adjusted EPRA earnings table.
Adjusted EPRA earnings exclude significant one-off items that arise from events and transactions distinct from
the Company’s regular operating activities, and deferred tax expenses on items other than the revaluation of
investment property. In 2022, adjusted EPRA earnings were €143.6 million, 9.5% higher than the €131.0 million
in 2021.
We received insurance reimbursements in 2021 of €5.6 million (at CER, net of taxes). If we exclude these
reimbursements, the €143.6 million adjusted EPRA earnings represents growth of 15.0% versus 2021 (at CER).
SHURGARD ANNUAL REPORT 2022
48
RECONCILIATION OF EBITDA TO ADJUSTED EPRA EARNINGS
(in € thousands) FY 2022 FY 2021 +/-
EBITDA 199,765 174,865 14.2%
Net attributable profit adjustments:
Casualty gain - 6,495 -100.0%
Cease-use lease expense (185) - N/A
Depreciation and amortization expense (2,866) (2,624) 9.4%
Finance costs (20,785) (19,970) 4.1%
Current tax expense (30,311) (26,019) 16.5%
Non-controlling interests, net of EPRA adjustments (1,348) (874) 54.2%
Company specific EPRA adjustments:
Non-recurring expenses
1
(1,269) (966) 31.3%
Tax adjustments
2
555 143 N/A
Adjusted EPRA earnings 143,556 131,049 9.5%
1 Non-recurring expenses consist of (i) insurance recovery proceeds, (ii) compensation received for lease agreement
termination and (iii) UK REIT set up costs.
2 Tax adjustments consist of (i) net impact of tax assessments and (ii) current income tax effect of the Company specific adjustment items included in the Adjusted EPRA
earnings table.
Adjusted EPRA earnings increased by 9.5% mainly due to a 14.2% increase in EBITDA partially offset by insurance
reimbursements received in H1 2021.
SHURGARD ANNUAL REPORT 2022
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EPRA NAV METRICS
The table below provides a summarized overview of the Company’s key Alternative Performance Measures (APM)
that are NAV related, consisting of NAV, EPRA NRV, EPRA NTA and EPRA NDV:
(in € thousands) FY 2022 FY 2021 +/-
Net Asset Value (NAV) 2,860,993 2,472,543 15.7%
EPRA Net Restatement Value (NRV) 3,989,647 3,409,642 17.0%
EPRA Net Tangible Assets (NTA) 3,638,892 3,112,598 16.9%
EPRA Net Disposal Value (NDV) 2,974,095 2,417,628 23.0%
The basis of calculation for each of the measures set out above are illustrated in the Appendix of the report
(Alternative Performance Measures).
LIQUIDITY
Our primary cash requirements are for operating expenses, debt servicing, improvements to existing properties,
developments and acquisitions of new properties, and for the payment of dividends. Historically, these
requirements were funded by operating cash flows, the issuance of equity and borrowings, including the U.S.
Private Placement Notes, the 2018 syndicated revolving credit facility and the proceeds of the October 2018
equity issuance. Going forward, we believe that our financing strategy, as well as our strong operating
performance allow us to access all financing options, ranging from private debt to bank loans, as well as equity
issuances and use of our current bank credit facility or other type of borrowings.
Our loan-to-value ratio on December 31, 2022, was 18.0%, compared to 17.4% on December 31, 2021. This
increase was due to a proportionally higher increase in net debt than in market value. We are targeting a loan-
to-value ratio of 25%, with a short-to-mid-term maximum of 35%. Our net debt to EBITDA multiple was at 4.1
times versus 3.8 on December 31, 2021. We are currently targeting a net debt to EBITDA multiple between 4 to 5
times.
We maintain cash and cash equivalent balances at banking institutions in certain countries where we operate.
In Sweden, the United Kingdom and Denmark, these balances are held in local currencies. It is our policy that
investments of surplus funds are made only with approved counterparties with a minimum investment grade
credit rating.
CASH FLOW OVERVIEW
(in € thousands) FY 2022 FY 2021 +/-
Cash flows from operating activities 186,534 161,589 15.4%
Cash flows from investing activities (184,005) (125,330) 46.8%
Cash flows from financing activities (131,380) 79,099 N/A
Net (decrease) increase in cash and cash equivalents (128,851) 115,358 N/A
Effect of exchange rate fluctuations (2,974) 814 N/A
Cash and cash equivalents on January 1 219,170 102,998 112.8%
Cash and cash equivalents at period end 87,345 219,170 -60.1%
SHURGARD ANNUAL REPORT 2022
50
CASH FLOWS FROM OPERATING ACTIVITIES
Operating cash inflow increased by 15.4% from €161.6 million in 2021 to €186.5 million in 2022. This was mainly
due to a €20.2 million increase in cash flows from operations and €7.5 million of favorable movements in working
capital, partially offset by €2.7 million increased income tax payments.
The favorable movement in working capital has been driven by €5.0 million higher accrued expenses, VAT payable
and accounts payable, €4.4 million decrease in trade and other receivables, partially offset by €1.9 million
movement in deferred revenue.
CASH FLOWS FROM INVESTING ACTIVITIES
Our cash outflow from investing activities increased by €58.7 million, from €125.3 million for the year ended
December 31, 2021, to €184.0 million for the year ended December 31, 2022. The increase reflects larger
investments on (re)developments, capital expenditures and acquisitions.
Cash outflows in relation to capital expenditure on investment property under construction and completed
investment property increased from €81.5 million in 2021 to €111.3 million in 2022.
These cash flows fluctuate over years, as construction expenditures depend on the stage of the various
development projects at that time. In FY 2022, we opened seven new properties (six in 2021) and acquired seven
new properties (six properties in 2021).
CASH FLOWS FROM FINANCING ACTIVITIES
Cash outflow during the year ended December 31, 2022, was €131.4 million, representing a €210.5 million increase
versus the €79.1 million net cash inflow in the year ended December 31, 2021.
In 2021, the Company received €200.0 million net proceeds from the issuance and repayment of notes. In
addition, in 2022, we observed the following impacts: €7.4 million more dividend payments, €1.9 million
decreased net proceeds from the sale of treasury shares, €1.2 million decreased equity issuance net proceeds
and €2.6 million increased interest paid, partially offset by €1.2 million decreased principal lease payments and
€1.5 lower debt financing costs.
EFFECT FROM EXCHANGE RATE FLUCTUATIONS
During the year ended December 31, 2022, we had a €3.0 million negative effect of exchange rate fluctuations
on our cash flow movements, which compares to a €0.8 million favorable effect during the previous year.
FINANCIAL POSITION
TOTAL ASSETS
During the year ended December 31, 2022, the Company’s total assets increased by 13.6% from €4,102.5 million
on December 31, 2021, to €4,659.8 million on December 31, 2022, mainly due to the €676.7 million increase in
investment property and investment property under construction, partially offset by a decrease in cash of €131.8
million.
As of December 31, 2022, approximately 97.5% of the Company’s total assets consisted of non-current assets.
Investment property (including ROU IP) and IPUC represent 97.1% of total assets.
SHURGARD ANNUAL REPORT 2022
51
Investment Property
Investment property (including IPUC but excluding ROU IP assets recognized under IFRS 16) increased by 17.7%
(or €664.6 million) in the year ended December 31, 2022, to €4,428.6 million. The main reasons are incremental
expenditure of €112.6 million, predominantly for developments and redevelopments, and acquisitions of
€76.3 million. These additions were partially offset by €99.8 million unfavorable exchange rate fluctuations and
the disposal of one of our Dutch properties for €14.3 million. In addition, the Company recognized €589.8 million
of favorable fair value revaluation income on its investment property and investment property under construction.
Cash and cash equivalents
The Company had cash and cash equivalents of €87.3 million as of December 31, 2022, compared to €219.2
million cash and cash equivalents as of December 31, 2021, a decrease of €131.9 million.
CAPITAL RESOURCES AND FINANCING STRUCTURE
Shurgard’s financial resources comprise the Company’s total equity as well as certain debt financing instruments.
The Company’s total equity increased by €389.8 million from €2,478.0 million on December 31, 2021, to €2,867.8
million on December 31, 2022, mainly due to €575.6 million net profit realized during the period, €2.2 million
decrease in treasury shares, €3.9 million increase in share-based compensation reserves and €0.4 million net
proceeds from the issuance of equity. These increases were partially offset by €106.9 million dividend distribution
in 2022 regarding the Company’s 2021 and first half of 2022 results and €85.4 million net revaluation loss on
consolidation of our British, Swedish and Danish operations because of currency movements.
As of December 31, 2022, the equity ratio was 61.5% (December 31, 2021: 60.4%).
(in € thousands) FY 2022 FY 2021
Total equity 2,867,808 2,478,041
Total equity and liabilities 4,659,831 4,102,468
Equity ratio 61.5% 60.4%
Shurgard has senior guaranteed notes issued in the years 2014, 2015 and 2021 with a total nominal amount of
€800 million and maturities varying between 2024 and 2031. Effective interest rates vary from 1.3% to 3.4%.
Shurgard has a €250 million syndicated revolving loan facility with BNP Paribas Fortis bank, Société Générale
bank and Belfius bank (with BNP Paribas Fortis bank as agent) that matures in October 2025 and that bears
interest of Euribor plus a margin varying between 0.45% and 0.95% per annum (currently 0.45%) dependent
on the most recent loan-to-value ratio. There are no mandatory repayments of principal debt due for this facility
before its maturity, and a commitment fee equal to 35.0% of the applicable margin per annum applies to
undrawn amounts and is currently at 0.16%. The facility is subject to certain customary covenants. As of
December 31, 2022, and December 31, 2021, the Company had no outstanding borrowings under this facility.
SHURGARD ANNUAL REPORT 2022
52
SHURGARD GREEN BOND
On July 23, 2021, the Group, via its financing entity Shurgard Luxembourg S.à r.l., issued ten year senior notes for
€300.0 million. The proceeds of the issue were used to repay trancheA (€100.0 million) of its 2014 senior
guaranteed notes maturing in July 2021, to finance potential acquisitions, and to finance or refinance, in whole
or in part, recently completed and future projects that are underpinned by sustainable criteria such as, for
instance, a BREEAM certification (Eligible Green Projects).
As of December 31,2022, the proceeds allocated to Eligible Green Projects amounted to €184.7 million,
representing an increase of €36.6 million compared to June 30, 2022.
Store Name Certification date Rating Address
Total ('000€)
31/12/2022
Park Royal
September 9, 2019
Outstanding
London
12,793
Greenwich
February 5, 2019
Excellent
London
14,079
Depford
March 5, 2020
Excellent
London
15,428
Herne Hill
July 16, 2020
Excellent
London
13,886
Barking (*)
September 30, 2020
Excellent
London
12,697
City Airport
April 1, 2021
Excellent
London
6,044
Camden (*)
August 17, 2022
Excellent
London
2,941
Morangis
October 11, 2022
Very Good
Paris
10,278
Projects with BREEAM certificate "Very Good or Higher"
88,146
Croydon Purley Way
Upcoming certification
London
9,044
Bow
Upcoming certification
London
25,401
Lagny
Upcoming certification
Paris
10,155
Satrouville
Upcoming certification
Paris
9,814
Versailles South
Upcoming certification
Paris
9,794
Chiswick
Upcoming certification
London
16,548
Chadwell Heath
Upcoming certification
London
9,670
Rotterdam Stadionweg
Upcoming certification
Rotterdam
6,157
Other Eligible Green Projects (upcoming certification)
96,583
Total Eligible Green Projects
184,729
(*) interim certificate
A portion of €89.0 million has been used to refinance existing projects at issuance, whereas €95.7 million has
been used to finance new projects. A total of €115.3 million unallocated proceeds of the Green Bond remains
available and is expected to be used before the Bond maturity.
Shurgard’s Green Bond Committee is held annually around July 1, to review the Green Bond Framework and the
amounts of the net proceeds allocated to the Eligible Projects.
In addition, the amounts allocated to Green Projects are reviewed by an independent external audit firm and the
reports and auditor’s assurance on the Eligible Green Projects are available on Shurgard’s corporate website:
https://www.shurgard.com/corporate/corporate-responsibility/reports-and-publications
.
SHURGARD ANNUAL REPORT 2022
53
DIVIDEND
It is the Company’s objective to pay dividends in May and September/October of each year. The amount of any
interim or final dividends and the determination of whether to pay dividends in any year may be affected by a
number of factors, including our earnings, business prospects and financial performance, the condition of the
market, the general economic climate and other factors considered important by the Board of Directors.
We have proposed a total dividend of €1.17 per share for the year 2022.
With respect to the first half of 2022, our Board of Directors approved an interim dividend of €51.7 million or
€0.58 per share paid on September 29, 2022.
The Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2022 of a
maximum amount of €52.6 million (taking into account the number of outstanding shares as of
December 31, 2022).
The second and final dividend on 2022 results will be payable on or around May 24, 2023 to Shareholders on the
record at close of business on May 23, 2023.
EMPLOYEES
Our employees play a crucial role in the success of our organization by providing our customers with outstanding
levels of service and support. We facilitate this by ensuring our people are well trained and motivated, with clear
career progression, and feel safe and supported at work.
Due to the company’s focus on digitalization, with amongst other initiatives such as e-rental, our workforce has
decreased in 2022 versus the prior year. The following table shows the number of full-time equivalent employees
by category of activity as of December 31, 2022 and 2021:
FY 2022 FY 2021 +/-
Store personnel 547 588 -41
Operational management 46 47 -1
Support functions 123 108 15
Total 716 743 -27
RISKS
Shurgard is exposed to several risks that are described in detail in the "Principal Risks and Uncertainties” section
of the 2022 Annual Report.
As the Global Financial Crisis and the COVID-19 pandemic have shown, Shurgard operates in a resilient industry.
This is evidenced by the Group’s ability to continue improving its operating KPIs, including occupancy, rates and
operational costs, throughout these periods of economic and social disruption. The volatility that occurred in the
(recent) past has shown that Shurgard responds to all life movements – from downsizers in a contracting
economy, to up-sizers when the market is growing. This reflects the fundamental nature of self storage as a life
event driven business in highly urban markets. While these life events might shift during different market cycles,
they never disappear altogether. So far, we have not noticed any shift in demand or price elasticity.
SHURGARD ANNUAL REPORT 2022
54
We are carefully monitoring the challenges that lie ahead of us, such as the continued war in Ukraine, inflation,
interest rates and currency movements, all of which are adding to the uncertainty. We pay particular attention
to the impact on our construction, energy, and interest expenses. With typically long-term contracts in place, we
are often shielded from short-term market movements, ensuring that our cash flows remain predictable in the
foreseeable future. Finally, Shurgard’s geographic diversity and platform operating approach add to the Group’s
overall resilience.
The Group – while acknowledging that the uncertainties and risks with respect to the global economy remain
high – has currently not identified any new major sources of uncertainty to be reflected in its financial
statements, compared to December 31, 2021.
As part of this review, Shurgard obtained updated valuation reports of our investment properties from external
valuation experts (we refer to Note 15 in the Notes to the consolidated financial statements of this report) and
did not identify any impairment indications that would hint towards the Group not being able to recover the
carrying value of its assets, either by using or selling it.
Based on our borrowing agreements, the Group is obliged to regularly test certain debt covenants, of which
senior leverage, loan-to-value and fixed charge cover ratios are the most prominent. During 2022, the Group did
not breach any covenants’ limits and retained significant headroom.
Finally, the enterprise risk management program in place provides Shurgard with a comprehensive understanding
of the Group’s key business risks, and the control activities in place to mitigating these risks. Overall and based
on its current performance, the Group did not identify any uncertainties that would cast any doubt on Shurgard’s
ability to continue as a going concern.
EVENTS AFTER THE REPORTING PERIOD
Please refer to Note 40 in the Notes to the Consolidated Financial Statements of this report.
SHURGARD ANNUAL REPORT 2022
55
SUSTAINABILITY REPORT
Some of Shurgard’s employees in our stores in the London area.
SHURGARD ANNUAL REPORT 2022
56
BASIS OF THE SUSTAINABILITY REPORT
This Sustainability Report of Shurgard Self Storage, headquartered in Luxembourg, presents the quantitative and
qualitative information needed to understand its material sustainability issues for the calendar year 2022. It
covers all activities of the company, which is the same entity reported on in our consolidated financial
statements.
GRI 2-1 / 2-2 / 2-3
REPORTING SCOPE
The scope in this report covers 100% of the total workforce.
GRI 2-1
REPORTING FRAMEWORK
Shurgard has published a Sustainability Report annually since 2019, referencing the Global Reporting Initiative
(GRI) standards and aiming to comply with EPRA sBPR guidelines.
GRI 2-3
DATA REVIEW
Shurgard engaged an independent third-party assurance provider, IHS Markit Ltd (part of S&P Global as of
February, 2022) to review the data published. Their limited assurance report on a selection of key performance
indicators can be found in the chapter titled ‘Assurance Summary Statement’ in this document.
GRI 2-5
MATERIALITY ASSESSMENT
In 2022, Shurgard conducted an internal materiality assessment to identify and select the most significant social,
environmental and governance issues. Further information can be found in the chapter titled ‘Materiality’ in this
document.
GRI 3-1
SHURGARD ANNUAL REPORT 2022
57
PARTICIPATION IN SUSTAINABILITY INITIATIVES
In 2015, the member states of the United Nations adopted 17 Sustainable Development Goals (SDGs) as a
universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and
prosperity. As a responsible company, we are committed to contribute to the SDGs as recommended by the
United Nations. Therefore, we have identified the following most significant SDGs for our company:
NO POVERTY
We organize charity events and provide services to vulnerable communities, to contribute
to creating a world without poverty.
GOOD HEALTH AND WELLBEING
We help to ensure healthy lives and promote wellbeing for all of our customers and
employees, by making our stores safe, supportive environments for all.
AFFORDABLE AND CLEAN ENERGY
By continually seeking to source energy sustainably at our stores, we support the
transition to affordable, reliable, sustainable and modern energy for all.
DECENT WORK AND ECONOMIC GROWTH
As a responsible business, we are always ensuring that we provide decent, equal work
to all our employees, as part of an economy which is fairer for everyone.
LIFE ON LAND
We seek to preserve nature and biodiversity wherever possible at our development sites,
constructing green buildings and respecting ground permits.
CLIMATE ACTION
We understand our role in mitigating and adapting to the impacts of climate change, and
our Net Zero goals demonstrate our commitment to urgent climate action.
RESPONSIBLE CONSUMPTION AND PRODUCTION
By its nature, our business enables people to reduce their waste footprint, and we seek
to ensure that our own material consumption is sourced and disposed of responsibly.
SUSTAINABLE CITIES AND COMMUNITIES
We play our part in making cities inclusive, safe, resilient and sustainable, by developing
modern, resource-efficient stores which provide excellent service to their communities.
SHURGARD ANNUAL REPORT 2022
58
The SDG framework brings together society, governments and business to drive positive change. As a responsible
company, Shurgard is determined to play an active role, on its own scale, contributing materially to these SDGs
via our Sustainability Strategy. To affirm this, Shurgard has been a signatory of the United Nations Global
Compact since 2021.
GRI 2-28
CONTACT
For any question or comment on the published content of this report, please contact:
investor.relations@shurgard.co.uk
GRI 2-1
SHURGARD ANNUAL REPORT 2022
59
SHURGARD SELF STORAGE
Shurgard is the largest owner and operator of self-storage properties (‘stores’) in Europe.
Our network of 267 stores (including one store under management) comprises approximately 1.4 million rentable
square meters and serves more than 182,000 customers in France, the Netherlands, the United Kingdom (UK),
Sweden, Germany, Belgium, and Denmark.
At the date of report compilation, we employ 742 personnel (who identify as 57.7% men, 42.3% women), with a
range of over 36 nationalities (top three: 24.6% French, 18.3% Dutch and 13.7% Belgian).
GRI 2-6 / 2-7
HOW WE OPERATE
Shurgard commenced operations in 1995 and is one of the pioneers of the self-storage concept in Europe.
We
generate revenue through the lease of storage units and related activities, including insurance referrals and the
sale of storage products and packaging.
Our real estate operating revenue and income from property have increased steadily in recent years, as we
increased rental rates across our network while growing occupancy, alongside redevelopments, new
developments and acquisition activity.
We integrate local expertise in the seven countries where we operate,
with centralized in-house capabilities to provide a consistent experience to residential and commercial
customers. We primarily operate in urban areas across Europe, with approximately 93% of our properties located
in capital and major cities.
OUR DEVELOPMENT STRATEGY
Shurgard has an established track record of redeveloping, developing and acquiring stores.
Between December 31, 2014 and December 31, 2022, we developed 27 new stores, completed redevelopment
projects at 30 stores, and acquired 59 stores, a total of 116 stores.
Our investment criteria are focused on acquiring and developing high-quality properties that are easily accessible
by our customers in markets believed to have strong growth potential. We continue to focus on attractive and
cycle-friendly urban areas that we anticipate will enjoy strong demand and provide attractive growth potential.
SHURGARD ANNUAL REPORT 2022
60
MESSAGE FROM OUR CHIEF EXECUTIVE OFFICER
Welcome to our sustainability report.
Over the past few years, we have been solidifying our position as a European leader in sustainable self-storage
operations. This required embracing industry-leading innovations while continuously working to reduce the
environmental footprint of our assets.
Sustainability is not just a buzzword at Shurgard, as we recognize the necessity for us to ensure we leave this
planet in better shape than we found it. This past year, we have hired an internal ESG Reporting Specialist, who
is dedicated to ensuring our ESG reporting is consistent with evolving sustainability regulations. She will also
help us understand and address our ESG-related needs and support Shurgard in evolving our ESG strategy further.
Throughout 2022, we made substantial changes across our portfolio, reducing like-for-like energy consumption
by 7.2% compared to 2021. Like-for-like carbon emissions declined by 9.3% compared to 2021, and by 10.5%
when including the impact of green-energy procurement.
The projects we have undertaken to improve sustainability cover the full range of energy and resource
management. We installed smart water meters in 160 stores by the end of 2022 and will equip all the remaining
stores in 2023. Similarly, we have been rolling out a program of LED light installation and movement sensors to
reduce electricity consumption, allowing us to successfully lower our consumption by 4.2% in absolute terms,
despite our growing store network footprint.
Our plans include a commitment to accelerate the installation of heat pumps in stores that currently use gas for
heating. In 2022, ten more heat pumps were installed in our properties, and we aim to equip all our gas heated
stores with heat pumps by 2029. As part of our strategy to diversify into alternative energy sources, we already
had roof-mounted solar panels on 18 of our properties at the end of 2022 and are currently refining our
groupwide strategy in this respect.
Shurgard recognizes that the impact we make is also influenced by the partners we work with, and we have
developed an internal process to monitor how our critical suppliers manage their ESG outcomes. To ensure all
our employees come on the sustainability journey with us, we have launched an ESG-specific training course on
our internal online learning platform.
Making Shurgard a great place to work has become a priority in our employee wellbeing plan. To this end, we
have developed in 2022 four value pillars that represent our work identity and the foundations for each employee
to build a successful career at Shurgard: happiness, training, team spirit and perspective. As part of the roll-out,
companywide campaigns to fill these values with substance, have taken place.
Shurgard continues the strive to be a positive force in the development of strong integrated local communities
in the markets in which we operate. This year, we have organized new events with the charity organizations we
continuously support and increased our philanthropic contributions to provide better funding for initiatives that
support the most vulnerable groups.
The acceleration of our development plans means we have an even greater opportunity to ensure more of our
operations are sustainable. Instead of looking at ESG in isolation, we have incorporated it into the various stages
of our operations. For example, to optimize our energy consumption control and avoid wasted energy, we have
selected a supplier to roll out smarter building management systems. The technology to monitor and manage
systems remotely is increasingly sophisticated and we will be installing building management systems in existing
stores as well as part of the standard suite of energy efficiencies in our new developments.
SHURGARD ANNUAL REPORT 2022
61
The steps we have taken to improve sustainability are recognized by the awards and scores from the ESG
frameworks to which we adhere. We improved our score in S&P Global’s Corporate Sustainability Assessment by
a further five points, placing us in the world’s top 12% of scores achieved by real estate companies this year.
And we were awarded an excellent 5-star rating (the top banding) and a score of 90 out of 100 in the GRESB
2022 results. We were rated by MSCI for the first time in 2022 and initiated with AA rating, only one grade away
from their highest level. This reflects the growing care, attention, and integration of ESG issues throughout our
business.
As Chief Executive Officer, I, alongside my colleagues, work to develop and implement our ESG strategy. To fulfil
our ESG objectives, we set up an efficient governance structure which includes a formal, cross departmental ESG
Management Group entrusted to implement the ESG goals of the Group. Ultimately, the oversight of ESG matters
is, with the ESG Committee of the Board of Directors, reflecting the importance the topic has across our
organization.
We commit to further expanding our climate resilience, carbon reduction (through our Net Zero commitment
established in 2021) and community enhancement programs as part of our ESG strategy.
The company is well positioned to navigate the next 12 months with motivated employees and a clear strategy.
Marc Oursin
Chief Executive Officer
GRI 2-14 / 2-22
SHURGARD ANNUAL REPORT 2022
62
INTRODUCTION
Shurgard has established sustainable and responsible policies and practices, for the benefit of the environment
and to promote long-term economic value for our customers, shareholders, and employees. The Company’s
sustainability strategy aligns its management of ESG issues across the life cycle of its storage properties. Our
properties are designed to be resilient, minimizing their environmental footprint and exposure to climate-related
risks.
Our people are our most valuable asset. We invest in our people and focus on maximizing their health and
wellbeing by providing safe, productive, and positive environments.
Shurgard strives, where possible, to be a positive force in the development of strong integrated local
communities. We support a range of not-for-profit organizations, charities, and community groups across
Europe.
Our governance framework exists to provide an ESG strategy which drives our actions and strives to create
positive results that are manifested in the day-to-day operation of our business. In 2021, we established an ISO-
14001 aligned environmental management system (‘EMS’). This was overseen by a formal cross-departmental
ESG Management Group (chaired by our Chief Executive Officer). This EMS works to implement best practice
environmental (and social) management throughout the business, via a series of policies, procedures, and
protocols. The ESG Management Group is striving to continuously develop the EMS, progress the ESG objectives
and maintain transparent ESG reporting. Our EMS will evolve over time to deliver continual improvement.
On a monthly basis, the ESG Management Group reports to members of the Senior Management at Executive
Committee meetings. Ultimately, the oversight of ESG matters is entrusted to the ESG Committee of the Board
of Directors. Thanks to the ESG Management Group, Shurgard benefits from an efficient chain of command. ESG
materiality is supervised at the highest level of the Company.
Our 2022 ESG performance reported here builds on our achievements in 2021, as demonstrated by our GRESB
score, where we improved further on last year’s result. We look forward to progressing on a number of ESG
initiatives. This includes acceleration of our LED energy efficient lighting rollout and heating optimization. We
will report our progress transparently under several reporting frameworks (GRESB, CSA, Sustainalytics) and within
annual sustainability reports. Follow our progress online at https://corporate.shurgard.eu/
. We welcome
feedback and comments.
Summary of our ESG investment programme
SHURGARD ANNUAL REPORT 2022
63
SUSTAINABILITY AIMS
Our plans are clear. Whether serving our customers, hiring our employees, respecting the natural resources in
our storage assets or building relationships with communities, we focus on what is good for the business and
for a sustainable future. This step-by-step approach leads to responsible investment solutions and decisions,
with more committed employees and enhanced value for all our stakeholders. We must help individuals,
companies, and the economy to move towards a more sustainable and balanced system, focused on the
management of non-financial risks. We look forward to continuing to work to make positive changes, relentlessly
advancing self-storage solutions for every move in life.
GRI 2-23 / 2-24
PILLAR
MISSION
AIMS
ENVIRONMENTAL
IMPACT
LIMIT & CONTROL OUR
ENVIRONMENTAL IMPACT
Reduce and optimize energy consumption
Reduce and manage our water usage
Make progress in responsible waste management
IMPACT ON SOCIETY
HELP TO BUILD A
SUSTAINABLE SOCIETY
Have a positive societal impact
Report on the impact of our commitments
Deliver best-in-class customer service
HUMAN CAPITAL
BE AN EMPLOYER OF
CHOICE
Strengthen engagement and social cohesion
Share and live the Shurgard culture
Invest in the development of our human capital
ETHICS AND
GOVERNANCE
RECONCILE RISK
MANAGEMENT WITH
INNOVATION
Incorporate sustainability solutions into
Shurgard's corporate management systems and
Code of conduct
SHURGARD ANNUAL REPORT 2022
64
MATERIALITY
We must address the ESG issues that materially affect Shurgard, our shareholders, our employees, and our
community, to drive continual positive and transformational change. We seek to identify the issues that will
impact our ability to operate successfully and create long-term value. To this end, a comprehensive materiality
review was conducted in 2022 to ensure that we are addressing the most important sustainability issues. This
exercise was designed to refine and supplement our new objectives as part of the establishment of our
Environmental Management System (EMS), building on the results of our previous materiality assessments
undertaken. Every year, the ESG Management Group identifies and assesses the relative importance of specific
ESG and sustainability topics for Shurgard.
Aligned with the Non-Financial Reporting Directive (issued by the European Commission), we employed a double
materiality perspective, covering both financial materiality, and environmental and social materiality. Double
materiality is a concept which provides criteria for determination of whether a sustainability topic or information
must be included in our sustainability report. A sustainability topic or information meets the criteria of double
materiality if it is material from the environmental impact perspective or from the financial perspective or from
both perspectives.
The Board of Directors is ultimately responsible for considering how sustainability topics interrelate with our
business strategy and developing sustainability materiality processes that link with the wider risk management
process. By assessing and understanding the range of ESG factors, together with many other investment criteria,
we believe we will be better positioned to deliver consistent, superior long-term investment returns for our
investors.
OUR MATERIAL ISSUES
Material Issues Where to read more
Climate Change
See in Particular the Section ‘Climate-related Risks and
Opportunities’, as well as ‘Our Net Zero Commitment’.
Managing our Carbon Emissions See ‘Our Net Zero Commitment’
Waste Management and Recycling See ‘Make Progress in Responsible Waste Management’
Water See ‘Manage our Water Usage’
Climate Risk Assessment See ‘Climate Related Risks and Opportunities’
Health and Safety See ‘Prioritize Workplace Health and Safety’
Committed Governance See ‘Corporate Governance’
Transparency and Reporting
See ‘Reporting on our ESG Impact’, ‘Green Bond’ and ‘EU
Taxonomy’
Financial and Non-Financial Risk Management See ‘Principal Risks and Uncertainties
Data Security See ‘Cyber Security’
Strong Corporate Culture See ‘Conviction’ and ‘Sustainability Aims’
Economic Performance See ‘Operational and Financial Review’
Customer Wellbeing See ‘Providing Best-in-Class Customer Service’
Community Wellbeing See ‘Delivering a Positive Social Impact’
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Employee Wellbeing See ‘Strengthen Engagement & Social Cohesion’
Social Impact See ‘Delivering a Positive Societal Impact’
Supply Chain Engagement See ‘Encouraging ESG through the Supply Chain’
Integration of ESG Dialogue and Engagement See ‘Environmental Management System’
Director Remuneration See ‘Corporate Governance’
Diversity and Inclusion See ‘Diversity, Equality and Inclusion’
Talent Management See ‘Invest in the Development of our Human Capital’
Learning and Development See ‘Invest in the Development of our Human Capital’
GRI 3-1 / 3-2 / 3-3
Other areas have been identified in connection with our activities but have not been selected as priorities. We
integrate them into the monitoring and measurement system used to further develop our sustainability program
under our EMS. Our main challenges are directly linked to the United Nations Sustainable Development Goals
(SDGs). We monitor our sustainability program in line with the most significant SDGs for our business sector.
Through our actions, our investment strategies, our partnerships and our decisions, we seek to provide concrete
responses to the SDGs that concern us.
Shurgard team at the recruitment live event in London.
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STAKEHOLDERS
Our ability to provide solutions to sustainability issues has become more important to our business model. Our
capacity to achieve this is linked to our commitments and our vision. In the same vein, we place great importance
on building lasting relationships with our stakeholders. Our success depends on the quality of the relationships
we build inside and outside Shurgard. A dialogue with our stakeholders and communication based on
transparency allows for better risk management.
We define stakeholders as individuals, groups
or organizations that may benefit or be affected
by our business activities. We strive to create a
balance between activities that generate value
and short-term returns through effective
management of current business activities and
investments in people, properties and
technologies designed to produce sustainable
returns over the long term.
Our key stakeholders have been identified and
prioritized according to the level of
sustainability impact we believe our operations
have on their day-to-day activities, and, in turn,
their sustainability impact on our day-to-day
activities. These impacts span our identified
material ESG sustainability risks.
Reporting on our results, our commitments, our progress and our transformation is essential to maintaining
lasting relationships. Maintaining a permanent dialogue with our various stakeholders helps us to improve, meet
material issues and achieve our objectives. Our financial strength and reputation give our stakeholders the
assurance of our ability to fulfill our obligations to them and make us trusted partners.
We know that transparency and collaboration offer the opportunity to make a difference and improve our
operations. This is why we are committed to:
Maintaining a strong governance structure to manage risks and take advantage of opportunities;
Providing superior services to advance the environment and society;
Engaging with stakeholders in an ethical and socially responsible manner;
Partnering with suppliers who share the same commitment to ethics, human rights and
environmental management;
Pursuing efforts to reduce carbon emissions and protect biodiversity;
Fostering a working environment that supports employee health and safety, diversity and inclusion;
Collating social and environmental measurements to assess our progress in meeting these
commitments;
Sharing data on sustainability indicators with stakeholders in order to continuously improve our
performance.
GRI 2-29
ACHIEVED 5
with a score of 90 out
of a maximum of 100
GOLD MEDAL
at the EPRA
Sustainability
Best Practices
Recommendations
awards
at the Sustainalytics
ESG Risk Ratings
Report, in the
top 5 percent globally
AA
at the MSCI ESG
Ratings, excellent
initiation coverage
in April 2022
EMPLOYEE
GENDER
PAY GAP
COMMUNITY
ENGAGEMENT
% % %
2019
2020
2021
2022
Appraisal engagement – %
86.9
79.4
93.0
100
2019
2020
2021
Gender pay gap**** – %
-1.7
-2.0
-1.4
**** (in favor of male colleagues) in stores
2019
2020
2021
2022
Stores that have implemented
local community engagement
– %
100.0
93.8
42.9
100.0
GREEN
% %
+
%
2021
2022
MWh*
12,192
11,318
2021
2022
1,597.3
1,448.4
Tonnes CO
2
**
2019
2020
2021
2022
stores (BREEAM
***)
46
35
29
57
* Like-for-like total energy used
(degree day corrected)
** Total Scope 1 & 2 like-for-like location-based
emissions. NB: Procurement of green supplies
have reduced market-based carbon emissions by
-10.5% year-on-year. See EPRA tables for further
information.
*** Building Research Establishment
Environmental Method (BREEAM)
in use and BREEAM New Construction.
SHURGARD ANNUAL REPORT 2022
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ENVIRONMENTAL IMPACT
As an owner and operator of real estate, we understand our impact on the built environment and the importance
of managing these impacts in a sustainable manner.
Storage assets generally present low operational environmental impacts with minimal utility use given the nature
of the business. Despite this, we continuously explore and, where feasible, implement solutions designed to
mitigate climate change risk, reduce our carbon emissions, and limit our overall impact on the environment.
A key driver of Shurgard’s ESG strategy is the desire to improve the sustainability of our storage portfolio. Our
approach identifies opportunities for efficiencies in energy and water consumption, and for strengthening
climate resilience across the portfolio. Any efficiency projects undertaken are assessed on the basis of return on
investment for both the environment and our investors.
We recognize the crucial importance of sustainable design in our buildings and consider appropriate measures
in all our construction and refurbishment work. Where possible we seek passive design solutions that aim to
reduce heating, cooling, lighting and ventilation energy use. Our external design and material specifications aim
to incorporate the benefits of thermal mass and reduce cooling energy use. We also utilize a range of
technologies to minimize heat transfer (particularly in climate- and/or humidity-controlled storage). To
remediate land or check contaminated sites, we seek expert advice and endeavor to conduct works in a
sustainable manner.
Natural hazards including severe storms and flooding may impact our operations and our real estate assets.
Comprehensive business continuity and disaster recovery plans detail our management and operational approach
in hazardous situations. Should rectification works be required, where necessary, we seek expert advice and
where possible we conduct works in a sustainable manner.
We follow the Greenhouse Gas Protocol standards to measure and report greenhouse gas (GHG) emissions under
Scopes 1 and 2 and have initiated work to quantify our most material categories of Scope 3 emissions. As a
responsible company, we have a duty to combat climate change through commitments and actions that create
the right conditions to build the world of tomorrow.
GRI 2-23 / 2-24
Our mission in this area:
Limit and control our environmental impact
How we aim to do this:
Reduce & optimize energy consumption
Reduce & manage our water usage
Make progress in responsible waste management
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OUR NET ZERO COMMITMENT
The scientific community has clearly stated the need to reach Net Zero global carbon emissions by 2050, to keep
global warming below 1.5°C and reduce the destructive impacts of climate change on human society and nature.
The Intergovernmental Panel on Climate Change (IPCC) defines Net Zero as the point when “anthropogenic
emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified
period”. The Paris Agreement
sets out the need to achieve this balance by the second half of this century.
The concept of Net Zero has risen in prominence ever since, as countries, cities, companies and others are
increasingly committed to reaching this ambitious goal. Regulations have been introduced to direct the sector
towards energy efficiency and emissions reduction, which give rise to obligations Shurgard is required to adhere
to. Of particular importance are the European Energy Performance of Buildings Directive (EPBD) and Energy
Efficiency Directive (EED), which commit the sector to an energy efficiency improvement target of 32.5%. They
include policies to stimulate deep renovation (Building Renovation Passport) and the enforcement of energy
performance of buildings (Renovation Wave) in development.
However, we recognize that Shurgard must go beyond this to keep up with the required transformation, building
on our pledge from 2021 to source 100% of our electricity from traceable, zero-carbon energy contracts. As such,
Shurgard has committed to decarbonizing its business to be Net Zero in our operations by 2030 (operational
NZC), with the further objective to reach Net Zero across our value chain by 2040 (material NZC). We will use the
energy hierarchy to drive down carbon emissions to levels which are “Paris agreement proof”; neutralize our
remaining climate impact by investing in carbon offsetting projects; and engage our suppliers to tackle their
climate impact.
OUR NET ZERO STRATEGY
We define operational Net Zero for our properties as when the greenhouse gas emissions associated with their
operation each year is zero or negative. A Net Zero building is highly energy efficient and powered by renewable
energy sources on-site and/or off-site, with any remaining emissions balanced by high quality carbon offset
projects.
This strategy describes our plans to achieve our 2030 Net Zero goal, including the targets we have set and the
metrics we will be using to track our progress. This is the first phase on our journey to Net Zero, focusing on
operational emissions (i.e., Scopes 1 & 2 emissions as classified in the GHG Protocol). The second phase will
involve a plan to achieve material Net Zero by 2040, or sooner, for further Scope 3 emissions including business
travel, employee commuting and embodied carbon from our developments.
PHASE ONE
Our Phase One Net Zero commitment, for 2030, applies to the Scope 1 & 2 emissions of our stores, where we
have operational control and a direct ability to impact energy use and their associated emissions. Scope 1 & 2
greenhouse gas emissions come from the fuels and electricity that we purchase and use to operate our assets.
This commitment also includes the Scope 1 & 2 emissions from our offices. We have occupied an all-electric head
office building for a number of years, which has eliminated Scope 1 emissions from the use of natural gas. We
have been measuring and reporting the carbon emissions associated with managing our stores for many years
and will continue to do so to demonstrate our progress towards this objective.
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PHASE TWO
Our Phase Two Net Zero commitment, for 2040 or sooner, covers our Scope 3 emissions. Scope 3 emissions are
from indirect sources, such as the embodied carbon in capital goods used to build new developments and
refurbishments. We will set out a full description of the scope of this commitment when industry guidance has
developed further.
The availability and quality of Scope 3 emissions data is currently limited. An important component of our
roadmap to Net Zero is to improve the breadth and depth of this data, and to develop more accurate monitoring
and reporting protocols.
NET ZERO CARBON DELIVERY STRATEGY
We follow the greenhouse gas management hierarchy when planning to deliver our Net Zero commitment. The
first step is to ‘eliminate’ sources of emissions from our operations, through low-carbon business decisions. The
next step is to ‘reduce’ those emissions sources which cannot be eliminated, by increasing efficiency across our
operations. When no further reductions can be achieved, we then aim to ‘substitute’ energy-intensive
technologies for low-carbon alternatives. Finally, the hierarchy ‘compensates’ for residual emissions through
offsetting and carbon removal. This will only be considered as a final step should the emissions be unavoidable.
In line with this hierarchy, we set out the measures we will use in our Net Zero strategy at core stages of our
business below.
ACQUISITION
During acquisition we are determined to:
Appraise the potential for installations of renewable energy sources such as solar PV – for
example, no over sighting / shadowing from natural daylight/ planned neighboring developments;
Consider the potential for renewable energy generation from local supplies or schemes;
Incorporate climate scenario mapping to understand resilience to physical climate threats.
DEVELOPMENT & REFURBISHMENT
In development and refurbishment we will:
Explore the assessment of whole life embodied carbon for new developments, including end of life;
Specify all-electric heating and cooling systems, with resilience against power outages;
Maximize on-site renewable energy generation.
OPERATIONS
During operation of our stores, we are determined to:
Identify priority assets for Net Zero carbon audits and implement auditing schedule if/where
required;
Set out energy efficiency measures in the store management plans and maintenance programs for
all properties, including new developments;
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71
Identify properties in the portfolio for retrofit to all electric heating and cooling systems;
Explore opportunities for on-site solar photovoltaic panels;
Procure 100% of electricity from Renewable Energy Guarantees of Origin (REGO) backed sources.
At corporate head office we will:
Set out energy efficiency measures in plans and maintenance programs for all offices;
Review the energy demand of our offices, set operational energy intensity targets and monitor
ongoing performance;
Explore opportunities for reducing carbon emissions from business travel.
MONITORING & REPORTING
To track progress, we will:
Increase the granularity of operational energy consumption data by: (1) ensuring the accuracy of
existing meters, (2) upgrading to automatic meter reading (AMR) technology where possible, (3)
installing additional sub-metering, where considered valuable;
Report progress against Net Zero ambitions transparently on an annual basis within our ESG report
and through GRESB.
2022 EMISSIONS REDUCTION ACHIEVEMENTS
Procedures for monitoring of emissions from business travel established;
Our like-for-like market-based emissions have decreased by 10.5% year on year, through
renewable energy procurement and energy efficiency measures.
EMISSIONS REDUCTION OBJECTIVES
Reach operational Net Zero emissions by 2030 or sooner;
Reduce carbon emissions by 10.0% in 2023 (against a baseline of 2017) on a like-for-like basis.
2023 EMISSIONS REDUCTION ACTIONS
Establish new emissions reduction objectives, aligned to upcoming Science-Based Targets
Initiative guidance;
Understand the impact of business travel on our emissions;
Replace gas heating with heat pumps by 2029.
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REDUCE & OPTIMIZE ENERGY CONSUMPTION
Our environmental impacts include the emissions generated by the energy used to heat, light, and operate our
properties (lighting, lifts, systems, and controls etc.). As such, sustainable energy management is a key
component of our ESG Strategy, especially in our Net Zero Strategy as described above.
LED upgrades are progressing across our stores:
Type Description
LED upgrade % complete
2023 targets
2022 2021
External lighting
Facade, above
accessible units,
parking spots, canopy
100.0%
94.0% 89.6%
Storage lighting Corridor lighting
100.0%
32.5% 29.6%
Employees room
lighting
Office, back office, IT-
room, toilet, janitor
100.0%
65.0% 54.0.%
Drive lighting Internal drives
100.0%
100.0% 100.0%
SOLAR PV ROLLOUT
We are developing a coherent alternative energy supply strategy and 18 of our properties already have roof-
mounted solar panels installations. We are continuing to look for opportunities to install solar photovoltaic panels
across our portfolio. The solar panels are monitored for their electricity generation performance, and we are paid
by energy companies for the energy we export.
2022 ENERGY REDUCTION AND OPTIMIZATION ACHIEVEMENTS
New heat pumps were installed to replace gas heating at 10 stores across our portfolio;
Our like-for-like energy usage decreased by 7.2%;
Total electricity usage in stores has decreased by 4.2%, reflecting the effect of our roll-out of
energy efficiency measures such as our LED program;
To optimize our energy consumption control and avoid wasted energy, we have subscribed to
smarter building management systems.
ENERGY REDUCTION AND OPTIMIZATION OBJECTIVES
Reduce energy consumption by 10.0% in 2023 (against a baseline of 2017) on a like-for-like basis;
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73
2023 ENERGY REDUCTION AND OPTIMIZATION ACTION
Establish new energy reduction milestones, aligned to upcoming Science-Based Targets Initiative
guidance;
Accelerate LED program roll out and install LED in all stores by 2023.
REDUCE AND MANAGE OUR WATER USAGE
Water use for self-storage properties is typically very low compared to sites of a similar size. Our employees and
visitors have toilet facilities, some stores have showers for employees who choose to travel by bike and our
employees have access to a small kitchen.
We are continuing to roll out water efficiency measures, such as new low flow taps and other fittings, and
investigating the increase in consumption reflected in our like-for-like water data
. In 2023, we plan to equip our
stores with smart water metering facilities, which can detect leaks and improve our water management.
2022 WATER ACHIEVEMENT
Water intensity has decreased by 5.0% across our whole portfolio;
To reduce our water consumption, we are equipping our stores with smart water meters that will
centrally track our daily consumption (60% of our stores were equipped);
Water consumption has decreased by 35.5% in 2022 at our European Support Center.
REDUCE AND MANAGE OUR WATER USAGE OBJECTIVE
Reduce water consumption by 5.0% by 2023 (against a baseline of 2017) on a like-for-like basis.
2023 WATER ACTIONS
Maintain protocols for low water consumption in design and operations of our storage properties,
for instance the provision of low flow taps;
Install submetering with smart leak detection systems in the remaining stores.
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MAKE PROGRESS IN RESPONSIBLE WASTE MANAGEMENT
We have equipped our properties with waste bins for general waste and recycling; and we have special collection
arrangements for waste electronic and electrical equipment and lightbulbs. We provide guidance on use and
recycling to our store teams during induction. Our main source of waste is from the operational activities of our
stores. Our employees apply best practice waste segregation for general and mixed dry recyclable materials.
2022 WASTE ACHIEVEMENT
Maintained our record of 100% diversion from landfill.
RESPONSIBLE WASTE MANAGEMENT OBJECTIVE
Maintain our waste diverted from landfill percentage (tracked annually under GRESB).
2023 WASTE ACTION
Maintain protocols for low waste consumption in design and operations of our stores.
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GREEN CERTIFIED BUILDINGS
Shurgard encourages the achievement and maintenance of green building certifications to protect value and
stay ahead of regulations. The Real Estate department at Shurgard is responsible for achieving and maintaining
green building certifications, with the support of our ESG Management Group. The Group initiates feasibility
studies and provides support to meet certification requirements and performance objectives. BREEAM (Building
Research Establishment Environmental Method) is the certification of choice across our seven markets. BREEAM
is a sustainability assessment method used to assess the environmental performance of buildings. Currently
28.5% of our portfolio’s floor area holds BREEAM certification, and we are committed to certify developing assets
in our pipeline where relevant.
2022 GREEN BUILDING CERTIFICATION ACHIEVEMENT
Energy Performance Certificate (EPC) across 97.8% of our operational assets. Over 80% of these
EPCs are rated at A+ or A (or equivalent);
For BREEAM New Construction, the coverage in 2022 is 7.1% of total floor area, up from 5.4% in
2021;
For BREEAM In Use, the coverage in 2022 is 21.4% of floor area, up from 20.0% in 2021.
2023 GREEN BUILDING CERTIFICATION ACTION
Obtain appropriate BREEAM certificates at future constructions, where relevant.
Shurgard Alperton Park Royal, BREEAM "Outstanding”
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ENVIRONMENTAL MANAGEMENT SYSTEM
We believe that using an Environmental Management System (EMS) supports continuous improvement in our
ESG results. Shurgard’s EMS is aligned with the International Standards Organization (ISO) 14001 standard, which
is an internationally recognized approach to environmental management. The key elements of our strategy
include:
1. Plan: The results of our materiality review, together with asset level risk and opportunity analysis, are
used to develop control procedures, objectives and targets, with the overall objective of achieving
continual improvement.
2. Implement: We implement improvement programs in conjunction with our local partners and suppliers.
3. Monitor and Measure: We use a variety of approaches to monitor and measure ESG performance.
Performance is tracked on a regular basis.
4. Review: We complete regular progress reviews. This is a vital element of our approach and is designed
to help ensure our approach is refined and improved. A further, in-depth annual review is also
completed. We also use external methodologies, including GRESB, Sustainalytics and CSA, to benchmark
our performance.
5. Reporting: Finally, we commit to reporting progress on an annual basis.
2022 EMS ACHIEVEMENTS
A new reporting specialist joined our team, who will also work to continuously improve our EMS.
2023 EMS COMMITMENTS
Maintain accuracy of the EMS, keeping up to date with the evolving regulations.
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CLIMATE RELATED RISKS AND OPPORTUNITIES
NFRD, TCFD AND CLIMATE RELATED DISCLOSURES
Shurgard recognizes the importance of developing good practices and standards for the transparency of
disclosures related to climate related risks and opportunities. We are aligning them with disclosure best practices
and work with recognized standards and frameworks, such as NFRD (Non-Financial Reporting Directive,
2014/95/EU) or TCFD (Task Force on Climate Related Financial Disclosures).
CLIMATE-RELATED RISKS AND OPPORTUNITIES
Climate scenario analysis allows a company to plan for what it considers to be the material impacts of climate
change. We believe that, depending on the location and risk potential, physical climate risks can be expected to
have a certain impact on our business in the future, and, taking double materiality into account, we trust that
we can act to minimize risks associated with climate change. Climate change is deemed a material issue to the
Group from a financial, environmental and social perspective.
During 2022, we performed a physical climate risk assessment of our entire portfolio of 266 stores1. We partnered
with Munich RE, one of the most recognized providers of reinsurance, primary insurance, and insurance-related
risk solutions in the world, having 40 years of climate experience and systematic recording of global hazard data
over the past decades.
The Intergovernmental Panel on Climate Change (IPCC), a United Nations body, established a framework which
formed the basis for the Paris Agreement in 2015. Our physical climate hazard assessment is based on this
framework and uses the Representative Concentration Pathway (“RCP”) scenarios for atmospheric greenhouse
gas concentrations from the latest IPCC Assessment Report (IPCC AR5, 2014). Several RCP scenarios are proposed
by Munich RE and were considered and analyzed for this assessment, from the most moderate (RCP 2.6) to the
most severe one (RCP 8.5):
RCP 2.6: Moderate scenario leading to a warming at the end of the 21st century of probably less
than 2°C relative to the pre-industrial period (1850–1900)
RCP 4.5: Intermediate scenario leading to a warming at the end of the 21st century of around 2.5°C
relative to the pre-industrial period (1850–1900)
RCP 8.5: Most severe scenario leading to a warming at the end of the 21st century of probably
around 4°C relative to the pre-industrial period (1850–1900)
For our 2022 disclosures, we decided to opt for the intermediate scenario RCP 4.5. This scenario is deemed
appropriate by the EU Taxonomy for projections up to 2060, whereas scenario 8.5 is largely considered as a
‘worst-case scenario’ that is possible but unlikely to happen.
1
For the purpose of this study, the store under management (Argenteuil) has not been included.
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Based on Munich RE’s assessment, we considered and reviewed the following climate risks, hazards, and
meteorological stresses, which are classified from low to high risk:
Risks Description Risk definition considered for the disclosures
Tropical Cyclone
Rapid rotating storm originating over tropical oceans,
bringing violent winds, torrential rain, high waves and, in
some cases, very destructive storm surges and coastal
flooding.
Considering an exceedance probability of 10% in
ten years, the maximum intensity of the storm is:
- Low risk: < 184km/h
- Medium risk: between 185 and 299km/h
- High risk: > 300km/h
River Flood
Fluvial, or river flood, occurring when the water level in a
river, lake or stream rises and overflows onto the
neighboring land. The water level rise of the river could
be due to excessive rain or snowmelt.
Areas threatened by extreme floods:
- Low risk: minimal flood risk
- Medium risk: extreme flood risk every 500 years
- High risk: extreme flood risk every 100 years
Sea Level Rise
Increase of the level of the sea, causing erosion, wetland
flooding, aquifer and agricultural soil contamination with
salt, and lost habitat for fish, birds, and plants.
Areas threatened by sea level rise based on storm
surge events with 100 years return period (likely
mean 0.26 meters):
- Low risk: minimal risk
- Medium risk: moderate risk
- High risk: high and extreme risk
Climatological stresses: Heat Stress; Precipitation Stress; Fire Weather Stress; Drought stress
Global warming is increasing the risk of various
climatological stresses which affects humans,
infrastructure as well as ecosystems. Temperature
changes are increasing the intensity and frequency of
heat waves, high-precipitation, wildfires, and drought
events. Munich RE uses different scientifically recognized
climate models with reference period and data from
latest high-resolution local and global models to classify
the stress risks.
Model classifies the climatological stress
situations on a scale ranging from 0 (very low) to
10 (very high):
- Low risk: <= 4.0
- Medium risk: 4.1 to 8.0
- High risk: >= 8.1
For the purpose of the climate-related disclosures, projections up to the year 2050 were used for all risks, except
for the “sea-level rise” risk, for which only long-term projections up to 2100 were available. This is in line with
the typical lifetime of our properties and aligned with the requirements of the EU Taxonomy for our asset class.
The assessment was made at the individual asset level, using precise geo-localization. The below chart
summarizes the number of stores affected by climate related risks and the associated risk assessment, as defined
in the above table.
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79
Based on this detailed analysis, river floods and sea level rise are currently the most relevant climate related risks
for Shurgard that could have a financial and / or reputational impact on our assets and operations. The financial
consequences could come from a range of impacts, such as damage to goods stored, unblocking drains, clearing
up large scale flooding, and more frequent maintenance of the building infrastructure resulting in higher repair
and maintenance, as well as higher insurance costs and preventive investments in our properties. The analysis
also showed that river flood and sea level rise risks would impact only the ground and underground floors, if any,
i.e., not impact the total building, which in Shurgard’s case are typically multi-level properties.
In total, we identified in 2022, 78 stores that were associated with at least one “high” physical climate risk, with
54 for the sea level rise risk and 24 for the river flood risk.
The rentable sqm at high physical climate risk represent 11% of our total lettable area. Most of these properties
are located in the Netherlands (with 6% of our total rentable sqm), due to its geographic situation and low
elevation against sea levels, followed by France, the UK and Sweden.
France; 1%
The
Netherlands
6%
UK; 1%
Sweden; 1%
Others; 1%
Low/moderate risk
89%
High risk
11%
% rentable sqm and physical climate risk
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TRANSITION RISKS
There are several developments in connection with climate change that we deem likely to occur in the
foreseeable future:
A focus on electrification and decarbonization;
An increase in carbon/emission taxation and fines (may vary across countries);
An increase in standards, especially for buildings;
A significantly higher reporting burden including Scope 3; and
The introduction of a carbon price.
Decarbonizing Shurgard’s operations will allow us to:
Avoid the risk of stranded assets;
Minimize the costs by investing at the right time;
Minimize taxation, including carbon/emission taxation; and
Utilize our sustainability credentials to attract stakeholders.
INTERNAL PROCESSES
Shurgard is monitoring closely the impact climate change might have on our operations through various
activities. These include for instance Identifying emerging issues through visual inspection for planned and
unplanned maintenance. This is particularly useful for physical risk.
IMPACT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES
Shurgard is increasingly considering the impact of climate-related risks and opportunities on its business. For
example, we recognize the importance of, and the opportunities for, integrating sustainability considerations in
the investment process. This could include investments in LED technology, heat-pumps and solar panels and the
target to obtain very good or better BREEAM certificates for all of our new developments. We are making strides
in introducing consideration of climate-related risks into our own corporate processes. This includes working
towards incorporation of climate-related risks into our ISO 14001-aligned Environmental Management System
(see section 'Environmental Management System') and enhancing our reporting, which will help identify and
assess the impact of climate related risks and opportunities.
IMPACT OF SHURGARD’S BUSINESS MODEL ON CLIMATE
Shurgard is the largest provider of self-storage facilities in Europe. Our business has negative impacts on the
climate in a variety of ways - our carbon footprint being the main source. Conversely, as a leader in our field we
aim to continually raise the bar and set standards for others to emulate. We report transparently and openly,
participating in reporting frameworks where it is considered valuable. We invest significantly in energy saving
initiatives, as detailed hereabove (LED, heat-pumps, certifications, solar panels, sensors, smart leak detection
systems, etc.).
BUSINESS MODEL AND RESILIENCE OF THE COMPANY’S BUSINESS MODEL AND STRATEGY
We believe our evolving ESG strategy, incorporating our Net Zero ambitions, is resilient to the range of energy
transition pathways and scenarios including those outlined at the UN Climate Change Conference in Paris. Our
strategy is validated annually by the Board to ensure it remains relevant and resilient, as part of our standard
governance processes. Elements of the strategy may be refreshed earlier if there are significant changes in the
external or internal environment. See Section 'Our Net Zero Carbon Ambition'. We are developing Net Zero
pathways for all our individual investments to refine our approach to future spending and investment decision-
making.
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COMPANY POLICIES RELATED TO CLIMATE
We seek to ensure that eventually environmental sustainability is managed like any other critical business activity
in an integrated, systematic way. To this end, we adopted an ESG Policy, which formalizes Shurgard's
commitment to managing climate-related risks. Further, our EMS framework is designed to ensure pollution
prevention, carbon reduction, waste minimization, responsible use of resources and compliance with legislation
through good practice and continuous improvement.
CLIMATE RELATED TARGETS
See Section ‘Our Net Zero carbon strategy’.
THE BOARD’S OVERSIGHT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES
The role of the Board of Directors (the “Board”) is to promote Shurgard’s sustainable success for the benefit of
its shareholders, while having regard to the interests of our other stakeholders, the impact of our operations on
the communities where we operate and the environment. In performing this role, the Board is responsible for
oversight of the overall conduct of the Group’s business, which extends to setting our ESG strategy and approach
to decarbonization. The Board and its associated committees, where appropriate, have oversight of climate-
related matters, which include climate risks and opportunities. They are updated on these matters quarterly.
These climate related matters include formal analysis of Shurgard’s Net Zero ambition and aims, briefings with
subject matter experts, reviews of regulatory correspondence regarding climate disclosures, site visits and the
preparation and consideration of corporate reporting documents and other investor briefing materials.
During 2022, climate matters were part on the agenda at every board meeting. This includes reviewing that
appropriate progress is being made against our ESG aims. The committee will continue to cover existing
sustainability-related activities, including the oversight of climate-related risks and opportunities.
The role of the Audit Committee is to monitor the effectiveness of Shurgard’s financial reporting, systems of
internal control and risk management, and the integrity of Shurgard’s external and internal audit processes. In
fulfilling this purpose, the committee has oversight of financial disclosure.
The role of the ESG Committee is to address the climate-related matters, as well as to recommend to the Board
the remuneration policy for employees. It also reviews and monitors related policies, satisfying itself that
incentives and rewards are aligned to Shurgard’s strategy, culture and long-term sustainable success.
The role of the Real Estate Investment Committee is to oversee all acquisitions and disposals of assets, properties
or subsidiaries under €50 million. An essential component of their role is to ensure we have the most appropriate
portfolio to deliver our ESG strategy and Net Zero ambition.
MANAGEMENT’S ROLE IN ASSESSING AND MANAGING CLIMATE RELATED RISKS AND OPPORTUNITIES
The assessment and management of climate-related matters is embedded across Shurgard at various levels and
delegated authority flows down from the Board.
The ESG Management Group provides internal oversight of Shurgard’s progress against the aims and objectives
in the sustainability framework, including Net Zero. This Group is chaired by the Chief Executive Officer and
comprises members of the Shurgard leadership team - covering all key departments to ensure information is
effectively disseminated. The Group meets on a quarterly basis (as a minimum) to review progress against the
sustainability framework and decide on critical strategic positions related to climate change that present risks
or opportunities to delivery. The ESG Management Group reports to the main Board and other committees as
required.
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OUTCOMES OF THE COMPANY’S POLICY ON CLIMATE CHANGE
Shurgard monitors the following indicators and targets to manage climate-related risks and opportunities:
Climate-related risks: regulation
2022 2021
Percentage floor area of EPCs (or European equivalent) rated A or more 80.7% 80.4%
Climate-related risks: material physical risk
2022 2021
% of rentable sqm associated with a high likelihood of being impacted by physical
climate risk in the period up to 2050
10.6% N/A
Climate related opportunities: transitioning to a low carbon economy
2022 2021
% of gas purchased from renewable sources 72.7% 64.9%
% of electricity purchased from renewable sources 100.0% 100.0%
Greenhouse Gas (GHG) emissions intensity from building energy consumption
(Scope 1 & 2, market based) – kgCO2e/GIA (sq m)
0.75 1.03
Shurgard also monitors the development of GHG emissions against the targets set and the related risk over time.
We refer to the GHG Emissions data in the section 'EPRA Performance Measures'.
SHURGARD’S PROCESS FOR IDENTIFYING AND ASSESSING CLIMATE RELATED RISKS
As part of our risk management system, our operating departments are responsible for identifying, assessing,
managing, and monitoring risks associated with their business area. Risks are assessed in line with Shurgard’s
risk management policy, and this includes an impact and likelihood assessment which supports relative
prioritization. Climate-related risks are classified as physical and transition risks:
Physical risks – risks related to the physical impacts of climate change including event-driven risks
such as changes in the severity and/or frequency of extreme weather events.
Transition risks – risks related to the transition to a lower carbon economy including policy and
legal, technology, markets and reputational risks.
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HOW WE MANAGE THOSE RISKS
As detailed hereabove, climate change and the transition to a lower carbon economy have been identified as
principal risks. This covers various aspects of how risks associated with the energy transition could manifest
(technology evolution, changes in regulations, etc.). Similarly, physical climate-related risks such as extreme
weather are covered in our principal risks related to safety and operations. We manage risks on a case-by-case
basis, seeking to reduce our exposure to the risk followed by reducing the vulnerability of the business or asset
to any risk. This could include any number of risk-specific adaptations or mitigation measures. If risks cannot be
managed in this way, we actively seek to transfer the risk or acknowledge that the risk must be accepted in line
with our risk tolerances. Our processes for identifying, assessing, managing and monitoring climate-related risks
are integrated into Shurgard’s risk management policy and the associated risk management procedures.
OTHER KPIS
In addition to the KPIs listed in this section, Shurgard is following up on other metrics, further details of which
are provided in different parts of this document:
GHG Emissions - See Section 'EPRA Performance Measures'
Energy - See Section 'EPRA Performance Measures'
Physical Risks - See Section 'EPRA Performance Measures'
EU Taxonomy aligned CapEx, OpEx and turnover – See section ‘EU Taxonomy’
Green Bond – See Section ‘Green Bond’
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IMPACT ON SOCIETY
Shurgard is committed to finding and catalyzing effective solutions to pressing societal issues and prioritizing
sustainability. We partner internally and externally to make a difference in society. We are attentive to societal
changes in order to provide our expertise through social and societal impact programs.
DELIVERING A POSITIVE SOCIETAL IMPACT
At Shurgard, to help enable meaningful action, we define community as our immediate neighbors and those in
the local catchment areas surrounding our stores. We support and empower our community partners by focusing
on building positive and lasting relationships and maintaining a sustainable operation. We believe that having
an open and transparent dialogue with our local communities enables us to create a harmonious environment
for our neighbors, customers, and employees
alike.
All our stores (as well as our corporate offices)
have time and financial budgets to provide in-
kind support and sponsorship to our
community partners and this financial year
they have continued to utilize these budgets
to make a positive contribution.
The effectiveness of our community
engagement is continuously reviewed and
adjusted to ensure that we sufficiently
address community interests and
opportunities
.
GRI 413-1
2022 ACHIEVEMENTS
We continued our charity partnership with Le Rire Médecin
, a leading association in France working
with clowns entertaining children in hospitals. Shurgard provides free storage space at three of our
stores in the Paris region; and a large number of our staff participated in a fundraising flea market
event across the country during the Christmas period;
Our mission in this area:
Contribute to a sustainable society
How we aim to do this:
Delivering a positive societal impact
Reporting on the impact of our ESG commitments
Providing best-in-class customer service
Encouraging ESG through the supply chain
Our customers can now round up their payments in our Swedish
and Danish stores and directly donate the difference to our charity
partner Team Rynkeby to support children with a critical illness.
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We continued our charity partnership with Stichting Babyspullen
, a leading foundation in the
Netherlands providing free baby essentials to low-income parents and parents-to-be. Shurgard
serves as a collection point for the foundation by placing donation containers at selected self-
storage locations across the Netherlands. In addition, Shurgard provides free storage space for
Stichting Babyspullen at 23 of our locations in the Netherlands;
We continued our charity partnership with the Mayor's Fund for London, an independent pan-
London charity offering support to young Londoners from low-income backgrounds. Through the
Access Aspiration Program Shurgard regularly facilitates CV writing workshops, interview
workshops and on the job experience for young adults;
We continued our support of Team Rynkeby, a Nordic charity cycling team raising money for
organizations that support children with critical diseases across Europe. Shurgard is providing free
storage space at three locations in Denmark and eight locations in Sweden;
We continued support of Off Road Kids, a German non-profit organization that runs a street social
work system to prevent homeless young people from becoming street children. We provide free
storage space for this charity at five of our stores in Germany. Several of our staff also participated
in a blood donation fundraising event;
We continued our charity partnership with Pelicano, a foundation that fights to end child poverty
in Belgium. The foundation is committed to ensuring all children’s basic needs of healthy living
conditions, nutritious food, education, and meaningful leisure time are met. Shurgard provides the
foundation with free storage space at 7 different self-storage locations.
SOCIETAL IMPACT OBJECTIVES
Below we set out our core social objectives:
Implement, and make publicly available, a Community and Charity Policy;
Maintain existing reporting on corporate citizenship and philanthropic endeavors.
2023 SOCIETAL IMPACT ACTIONS
To deliver our social objectives in 2023, we will take the following actions:
Maintain existing reporting on corporate citizenship and philanthropic endeavors;
Continue the active charity programs in each of our seven markets.
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PHILANTHROPIC CONTRIBUTIONS
For 2022, we estimate below the total monetary value (at cost) of Shurgard's corporate citizenship/philanthropic
contributions for each of the following categories. 100% of our corporate citizenship and/or philanthropic
activities are comprised of charitable donations, a breakdown is provided in the table below:
Type of Contribution
2022 2021
Cash Contributions €19,833 €18,344
Time: employee volunteering during paid working hours €16,214 €2,081
In-kind giving: product or service donations,
projects/partnerships or similar
€83,924 €75,650
Total Charitable Contributions
€119,972 €96,795
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Our employees from London stores are engaged into several philanthropic activities, such as helping youth in
communities to write qualitative CV’s and interview coaching
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REPORTING ON OUR ESG IMPACT
GRESB
GRESB
is the Global Real Estate Sustainability Benchmark. GRESB is a mission-driven and investor-led
organization that provides actionable and transparent Environmental, Social and Governance (ESG) data to
financial markets. GRESB collect, validate, score and benchmark ESG data to provide business intelligence,
engagement tools, and regulatory reporting solutions.
In 2022, more than 1,820 property entities, REITs, funds and developers participated in the Real Estate
Assessment, representing $6.9 trillion of GAV. The Assessment covers nearly 150,000 assets across 74 countries.
Shurgard is delighted to announce a 5-star result in 2022, with a score of 90 out of 100.
This is an improvement of 30 points versus our first submission in 2019. In addition, we performed well in the
Public Disclosure element of the assessment, receiving full marks.
Significantly, Shurgard also maintained our status as a GRESB Real Estate Sector leader – denoting our position
as first in our peer group. The result reflects Shurgard’s continued efforts over the last three years to improve
our ESG management and performance.
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S&P GLOBAL ESG SCORE AND CORPORATE SUSTAINABILITY
ASSESSMENT
The Corporate Sustainability Assessment (CSA) and the
collaboration with S&P Dow Jones Indices is a foremost global
sustainability benchmark. It compares companies across 61
industries via questionnaires assessing a mix of 80-100 cross-
industry and industry-specific questions.
In 2022, we participated in the CSA again and achieved a score
of 44/100, an improvement of five points over our 2021
submission. This placed us in the 88% percentile within our
peer group, meaning our score was in the top 12% of the real
estate industry. We will continue to participate in the CSA in
2023 and strive to keep improving our performance.
SUSTAINALYTICS
Our risks and control measures were last evaluated via the https://www.sustainalytics.com/
ESG Risk Rating in
August 2021. The 2022 results are expected to be communicated by Sustainalytics soon. Sustainalytics’ ESG Risk
Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is
managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management
and exposure to arrive at an absolute assessment of ESG risk. We were awarded a score of 13.2, a significant
improvement on our 2020 score of 21.7 (the lower the better). This places us now in the “low risk” category.
Shurgard is in the top 13% in real estate and the top 5% globally.
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EPRA SBPR
Shurgard reports the Company’s sustainability indicators based on EPRA’s
(European Public Real Estate Association
) latest recommendations: Best
Practice Recommendations on Sustainability Reporting, third version
September 2017. The EPRA Sustainability Best Practices Recommendations
(sBPR) are intended to raise the standards and consistency of sustainability
reporting for listed real estate companies across Europe. As with the EPRA
financial BPR Awards, each
year EPRA recognizes companies which have issued
the best-in-class annual sustainability performance report. Based on adherence
to the EPRA sBPR in their public disclosure, companies are identified for Gold,
Silver or Bronze Awards. The Award winners are announced each year at EPRA’s
Conference.
In 2022, we maintained our Gold Award, which we first achieved in 2021.
INVESTOR RELATIONS
In addition to reporting frameworks and benchmarks above, our executive team runs a program of face-to-face
investor engagement activities including annual and quarterly reporting cycles, and attends investor events
across Europe and the US.
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PROVIDING BEST-IN-CLASS CUSTOMER SERVICE
Delivering excellent customer service is central to the Shurgard ethos and we view it as a key competitive
advantage. We are committed to understanding our customers’ needs, providing tailored storage solutions and
delivering on our brand promise. Our focus on customer engagement and insights informs our customer
experience strategy which aims to deliver superior experiences and in turn, drive retention and referrals.
Our policies and procedures are designed to protect the health, safety, and privacy of our customers. We monitor
and assess these programs which are updated regularly based on our learnings.
Around 71% of the Shurgard customer base are residential customers whose storage needs range from short
term due to moving home, renovating, or simply needing more room, through to long term needs for collectibles
or hobbies. The remainder of the Shurgard customer base is businesses, from online retailers or local businesses
through to multi-national companies requiring a distribution network.
In the 2021 Sustainability Report, we set ourselves two
ambitious actions to ensure our continuous Best-in-Class
Customer Service. These were to continue to seek customer
feedback through Google reviews and seek improvement
opportunities at each store; and to aim for 100% of stores
and districts to be reviewed at the high-end of the Google
rating range (4.5+ out of 5). We are delighted to report that
both of these actions were met and exceeded, and we will
continue to seek further improvements to our customer
service and feedback.
In order to go beyond ratings and deepen the insights we get
from our customer feedback; we are aiming to improve the
amount of written feedback and closed portal reviews we
receive. We have a strategy for our store staff to encourage
customers on each contact with us, to give their Google
review with written feedback on our service.
2022 CUSTOMER SERVICE ACHIEVEMENTS
We received 25,000 Google reviews in 2022. Our overall all-time reviews account for 84,500
reviews out of which 75,100 are 5-star. Our overall all-time rating stands at 4.8 out of 5 stars,
collated from over 300 reviews per property;
As of December 2022, 82.9% of our Google reviews contained written feedback.
As of December 2022, our Trustpilot rating is 4.6 out of 5 stars.
2023 CUSTOMER SERVICE ACTIONS
Continue to seek customer feedback through Google reviews and seek improvement opportunities
at each store;
Aim for minimum one Google review per week for each store to ensure customers' recent reviews
and feedback on a continuous basis.
Our Swedish colleague Marie Tjernberg was first
runner up in the FEDESSA Manager of the Year
Award contest, in recognition of her talent,
training skills and dedication.
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ENCOURAGING ESG THROUGH THE SUPPLY CHAIN
We commit to working with appointed partners, suppliers, and contractors to improve ESG performance through
our supply chain.
To drive positive change and as part of our procurement process, we ask our suppliers strategic questions and
evaluate different options using a wider variety of criteria. Sustainable procurement means going beyond price,
quality, and value to also incorporate environmental, social, and governance considerations into our supply-chain
decisions and purchases. Our sustainable procurement strategy contributes to local communities and, by buying
locally, helps reduce negative environmental and health impacts, by notably promoting high labor standards and
local job creation.
As part of our sustainable procurement strategy, Shurgard:
Considers environmental, social and governance matters when procuring products, services and
equipment;
Provides our employees and suppliers with knowledge and resources about sustainable
procurement principles;
Proactively implements compliance provisions in contract templates;
Reviews modern slavery and bribery risks throughout the supply chain through the ESG
questionnaire and due diligence processes in place.
We continually look for opportunities to increase dialogue and improve understanding, both internally and
externally, on sustainable sourcing. Strategies include addressing sustainability-specific requirements in our
standard procurement agreements. Within all our contracts we have clauses relating to anti-bribery, human
rights and modern slavery, as we intend to partner with suppliers who share the same values. It is a commitment
we have towards our customers, employees, and investors to ensure sustainable sourcing of services. To this
end, Shurgard has developed an internal process to understand how our critical suppliers’ approach adverse ESG
impacts.
To ensure ongoing compliance with these ethical and environmental standards, we survey our critical suppliers
every three years on their ESG performance. These suppliers have been identified through an internal assessment
based on various factors, including the magnitude of the financial relationship, the access to our corporate
information and network, as well as the impact to Shurgard’s operations if the services were to be disrupted.
These suppliers were asked to complete the ESG questionnaire, assessing whether they have appropriate policies,
systems and resources in place to manage potential adverse ESG impacts. The result has shown that the critical
suppliers who participated in the survey share and respect the internationally recognized norms of ethics,
diversity, as well as environmental norms.
Shurgard is committed to preserving rainforests and other natural forests with high conservation value and will
work systematically and purposefully to ensure that our products do not contribute to deforestation. This
commitment applies to all our operations and sourcing.
Shurgard uses paper and board in the packaging sold to customers to aid their moving needs. We impose that
all our suppliers of wood fiber-based products for packaging applications only use wood fibers from certified
forests, which are managed sustainably and provide appropriate traceability. All forestry-based products
Shurgard procures are used for our packaging solutions and are either Forest Stewardship Council (FSC) or PEFC
(and other certifications recognized by PEFC) certified. We promote these credentials alongside the packing
materials for sale. Other documentation given to customers is on FSC certified paper.
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2022 SUPPLY CHAIN ACHIEVEMENT
Carried out an assessment to identify our critical suppliers in each market where we operate;
Conducted ESG surveys of over 50 of our critical suppliers, assessing the results to determine
compliance and screen for sustainability risks.
SUPPLY CHAIN OBJECTIVE
Maintain and further develop sustainable supply chain engagement frameworks.
2023 SUPPLY CHAIN ACTION
Require our supply chain to confirm their approach on environmental practices, anti-bribery and
corruption, modern slavery and diversity and inclusion policies every three years.
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HUMAN CAPITAL
Human capital is a key pillar in our sustainability strategy.
The commitment of our Human Resources teams to the development of our human capital is based on sharing
common values such as collective effort, a strict sense of ethics and the search for excellence. The sustainability
objectives are set in line with these goals and are consistent with values and convictions.
STRENGTHEN ENGAGEMENT & SOCIAL COHESION
We place a high degree of trust and authority in our center teams and operational management to run each
store and region, with support and oversight from our European Support Center.
Shurgard is passionate about creating excellent workplaces which maximize the health, wellbeing, and
productivity of our employees, and foster an open, supportive, diverse, and inclusive culture. Our policies and
programs are designed to make our employees’ working life productive and rewarding, and we regularly evaluate
the success of these efforts.
Glassdoor
operates a
review site for employees
for large corporations, such
as ours. Our current
ranking is higher than
average (4.7/5 vs. an
average of 3.7/5, and 95%
CEO approval vs. average
rating of 74%). The results
prove that our mission is
well reflected in the
employees’ experience.
We are accredited by Investors in People, an internationally recognized people management accreditation
association. The accreditation recognizes Shurgard as having principles and practices in place to support our
employees and that our employees are aware of how to use them to make our work environment better. The
accreditation will require renewal in 2023.
Our mission in this area:
Be an employer of choice
How we aim to do this:
Strenghten engagement and social cohesion
Share and live the Shurgard culture
Prioritize workplace health and safety
Invest in the development of our human capital
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SHARE AND LIVE THE SHURGARD CULTURE
Our ambition is to anchor Shurgard‘s culture in everyday practices in order to forge positive relationships, improve
the employee experience and create a united internal environment. To this end, Shurgard has developed four
value pillars that represent our work identity and are recognized by all employees in their day-to-day job:
happiness, training, team spirit and perspective. They represent what we stand for as employees at Shurgard
and are the foundations for each employee to build a successful career at Shurgard.
In 2023, we are launching our new pillars training, an e-learning module that all new hires will follow during
their onboarding period to help integrate them into the working culture of Shurgard.
DIVERSITY, EQUALITY AND INCLUSION
Shurgard is committed to an inclusive workplace that embraces and promotes diversity, pay equity and equal
opportunity. The principle of non-discrimination permeates all the processes inherent to Human Resources. To
meet this commitment, we make sure that Shurgard guarantees gender equality in all its processes, including:
Talent review;
Compensation review;
Promotions;
Development programs.
Happiness – Training – Team Spirit – Perspective
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Our teams are located in eight countries. We therefore benefit from a naturally diverse and high-quality employee
base. Our diversity of thinking and experience fosters innovation and long-term relationships. We strive to create
a working environment that is synonymous with warmth, respect, support, and appreciation. We strive to increase
the diversity of gender, culture, age, origin, and training within our workforce. We value, respect, and leverage
the unique contributions of people with diverse backgrounds and perspectives to enhance the understanding of
the needs of our customers. We believe that this encourages innovative solutions and exceptional customer
service to an equally diverse community. Our commitment to creating and ensuring a diverse work environment
contributes to Shurgard’s corporate objectives and embeds the importance and value of diversity within the
culture of our organization.
Shurgard aims to create an inclusive environment that supports people and removes artificial barriers from the
workplace. Training for all employees on sexual harassment and discrimination occurs at induction and is
refreshed on a regular basis. The management of Equal Employment Opportunities within Shurgard is the
responsibility of all employees. Recruitment, selection, and promotion of individuals into specific positions or for
development opportunities are determined on personal/professional merit, and all employees are subjected to
the same rules and conditions of employment without regard to any individual differences. Shurgard also
respects the right of all employees to form and join a trade union of their choice without fear of intimidation or
reprisal, in accordance with national law.
OVER 36 NATIONALITIES REPRESENTED IN THE BUSINESS
38% OF PROMOTIONS WENT TO WOMEN
44% OF EMPLOYEES RECRUITED WERE WOMEN
2022 DIVERSITY, EQUALITY & INCLUSION ACHIEVEMENT
Maintained a 27% women ratio for our Non-Executive Directors;
Launched new employee training program on diversity, equality, and inclusion.
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DIVERSITY, EQUALITY AND INCLUSION OBJECTIVES
Create public group-wide non-discrimination and anti-harassment policy;
Compile and report on equal pay analysis.
2023 DIVERSITY, EQUALITY AND INCLUSION ACTION
Conduct further employee engagement activities on equality and inclusion.
Within our stores, we foster an inclusive culture which engages with all potential candidates. The outcome of
this culture is a good gender balance at our properties, which employ 77% of the total Shurgard personnel.
Within stores across our seven operating countries, the total gender split is 58% male and 42% female. In 2021,
the gender split was 60% male and 40% female.
The gender split for our European Support Center employees was 53% male and 47% female in 2022, against
50% male and 50% female in 2021.
58%
53% 53%
41%
66%
68%
63%
77%
42%
47% 47%
59%
34%
32%
37%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Total France Netherlands Sweden UK Germany Belgium Denmark
Store Personnel Split by Gender 2022
Male Female
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The gender pay difference for store personnel is marginal across our different operating countries. The total
difference is 5.0% (in favor of male personnel) across all geographies which reflects a range between -11.4%
and –1.5%.
PRIORITIZE WORKPLACE HEALTH AND SAFETY
The safety of our employees and our customers is our chief priority. Safe practices are inherent in our systems,
our operating procedures, and most importantly in the way we think and act. Shurgard is fully committed to
providing safe storage facilities to our customers and our employees. Health and safety criteria are regularly
assessed in our properties to ensure that applicable health and safety rules are respected. All the properties are
audited from a health and safety perspective:
By Internal Audit within a three-year cycle (more than one third of the properties are audited each
year);
By the District Managers three times per year (self-assessments).
A workplace health and safety organizational induction is provided to all new team members and contractors
upon initial employment or engagement with Shurgard.
Regular periodic training is conducted with all team members, in addition to instances of changes to the
workplace or operations; plant or equipment; legislation, policies, work processes or processes, and generally as
required. Furthermore, task-specific training is conducted to provide knowledge of health and safety issues and
safe work practices relevant to work activities, workplaces or equipment. Training is hands on and interactive, to
ensure complete understanding of procedures. Records of training conducted, participation and
acknowledgment of training by team members are kept in an online learning management system or filed with
the Human Resources department.
2022 HEALTH AND SAFETY ACHIEVEMENTS
Launched a monthly newsletter covering health and safety topics, along with a revised health and
safety manual;
First Aid and Fire Safety training is conducted for all employees and new hires.
Total France Netherlands Sweden UK Germany Belgium Denmark
Store Personnel Average Salary in 2022
Male Female
-4,8%
-1,5%
-2,6%
-2,9%
-1,6%
-1,6%
-5,0%
-11,4%
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HEALTH AND SAFETY OBJECTIVE
Maintain Shurgard commitment to zero harm;
Continue to educate and train on the importance of maintaining strict Health and Safety standards.
2023 HEALTH AND SAFETY ACTION
Create a learning module in Shurgard Academy on Health and Safety.
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INVEST IN THE DEVELOPMENT OF OUR HUMAN CAPITAL
CONTINUOUS TRAINING
Our ambition is to place the development of human capital at the center of our priorities by devoting attention
to the continuous improvement of skills and knowledge, and therefore to a continuous process of education and
learning. A comprehensive training offer is defined and updated every year, in line with Shurgard‘s strategy, the
Investors in People accreditation and regulatory requirements. We support our managers and business units in
setting development priorities through specific training or on-the-job learning activities, and each employee has
a personalized skills development plan.
We believe the quality of customers’ interaction with our employees is critical to our long-term success.
Accordingly, we emphasize customer service and teamwork in our employee training programs. Each in-store
employee is required to complete a training program which builds a foundation to assist our customers with
their storage needs. All support centers’ new employees are also engaged in an extensive induction program
which lasts several weeks. We offer a continuous feedback program to help employees improve their
performance. We invest in a wide range of training to grow both professional skills as well as soft skills, such as
communication, problem-solving and time management.
The Shurgard Academy was launched in 2018 to enable us to attract, retain
and train top talent within our stores. The academy provides a transparent
program of progression which empowers our employees to develop
throughout their careers. The Academy ensures a structured process of
career progression, from Junior Assistant Store Manager to Senior Store
Manager and District Trainer.
2022 TRAINING ACHIEVEMENT
100% of our employees underwent the performance appraisal process, an increase of 7% year-
on-year;
We implemented a new Training Management System in our online training platform, and
expanded the Shurgard Academy;
We began employee training programs on sustainability, which remain ongoing;
Training hours completed per employee: 254h;
Trained workforce: 100%
TRAINING OBJECTIVE
Ongoing employee training in environmental, health and safety.
2023 TRAINING ACTIONS
Develop and promote in-person trainings for the Shurgard Academy, for new employees to be
trained together across markets;
Implement new leadership training programs across the company, with our own certified trainers.
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Some of Shurgard’s employees of the month or quarter (top left to bottom right): Benjamin (France), Terry (UK), Minna (Sweden), Billy
(Sweden), Ditte (Denmark).
The picture can't be displayed.
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INTERNAL MOBILITY AND PROMOTION
Shurgard‘s priority is to develop support for employees in their career development projects, in line with the
business needs, and to help them build a rich career while strengthening their employability. Mobility is an act
that demonstrates the employee’s commitment to building a long-term career. It aims to match personal
aspirations with the needs of Shurgard, prepare for the future in line with strategic focus, develop a shared
culture, retain employees, and strengthen our employer brand. Various measures have been implemented or will
be implemented soon:
Systematic publication of open positions on our website;
Priority given to internal applications.
A DYNAMIC REMUNERATION POLICY
The philosophy of Shurgard‘s remuneration policy is to reward long-term performance, attracting and retaining
talent through competitive, fair and gender-neutral compensation. Performance is as much individual as it is
collective. Shurgard is committed to the sincerity and transparency of the link between performance and
remuneration. This link must also be a driver for employee motivation and commitment. We are looking at pay
equity at all levels. Thus, people with similar roles and responsibilities receive comparable salaries. Remuneration
policies are reviewed each year by the ESG Committee. We ensure our alignment with best practices and our
compliance with the various legislation in force. We regularly participate in remuneration surveys in order to
assess our conditions within the business.
GRI 2-20
Our UK Market Manager Karen Murrel has
been appointed to the Self Storage
Association UK Board. She will be representing
both self-storage operators and industry
supplier members’ interests in the UK.
Our NL Market Manager Mathieu Knipping,
receiving the FEDESSA award for Multi-Site
Operator of the Year 2022, for the successful
completion of a challenging development at our
Amsterdam West store.
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ETHICS & GOVERNANCE
Ethics and integrity are founding values of Shurgard. All activities and developments are guided by a strict sense
of responsibility and a duty of transparency. We expect our employees and stakeholders to respect our
fundamental values, sense of ethics and compliance with the applicable regulations.
The adoption of ethical and responsible practices defines the way we do business. This is a required condition
for our development and its sustainability. Maintaining and reinforcing the trust established with our customers,
employees and shareholders is our daily priority.
In our opinion, robust corporate governance focused on managing sustainability issues helps to:
Be more competitive;
Maintain success;
Create long-term value.
We align our strategy with the challenges facing our industry and regulatory changes related to sustainability.
Since the beginning we have integrated non-financial risks into our governance and processes. This approach
has been reinforced during the latest cycle of sustainability objectives under our environmental management
system. Supporting the transformations of our industry and a strict alignment with current societal challenges
are our priorities. We will strengthen the alignment of our values and processes, as well as internal synergies
around sustainability issues. In addition, we will formalize the links between our existing policies, guidelines and
processes and sustainability issues. With regard to our stakeholders, this strengthens our transparency and our
sense of duty.
As a Luxembourg Société Anonyme whose shares are listed on Euronext Brussels, Shurgard’s governance
requirements are shared between the Luxembourg corporate governance and the Belgian corporate governance
regime. As we recognize the importance of high standards of corporate governance, we have set up our own
Corporate Governance Charter that meets the specific needs and interests of our Company. The charter came
into effect when the Company was listed on Euronext Brussels. Our governance structure is designed to foster
principled actions, informed and effective decision-making, and appropriate monitoring of both compliance and
performance. For additional information please refer to the Corporate Governance Charter in the “Governance”
section of the Shurgard website: Governance Documents | Shurgard Investor Relations
. The last update to the
Corporate Governance Charter occurred on November 24, 2022. For the latest updates on our structure, please
refer to page 105 of the annual report.
The governing bodies of our Company are the Board of Directors and the General Shareholders’ Meeting. The
powers of these governing bodies are defined in the 1915 Companies Act of Luxembourg and our Articles of
Association. The Board together with the Senior Management manages the Company in accordance with
applicable laws.
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104
2022 ETHICS & GOVERNANCE ACHIEVEMENTS
We rolled-out the Code of conduct among all employees;
There were no fines, notifications, penalties, or settlements during 2022;
There have been no breaches to our Code of conduct throughout the year (across areas of privacy,
bribery, corruption and discrimination);
We made no contributions to or expenditures to political campaigns or organizations, lobbying,
tax-exempt entities, or other groups whose role is to influence political campaigns or public policy
and legislation in reporting year
(GRI 415-1);
The group is part of local trade associations for self-storage. In 2022 the total amount of the
membership fees across the group was around €32,339
2
.
ETHICS & GOVERNANCE OBJECTIVE
Continue reviewing competencies required for Board members.
2023 ETHICS & GOVERNANCE ACTION
Establish Board rotation based on competencies required.
2
Belgian Self Storage association (Belgium) = €2,100; CISS (France) = €6,500; NSSA (The Netherlands) = €6,300; VDSU (Germany) = €3,680;
Self Storage Association Denmark (Denmark) = DKK 12,500; Self Storage Association UK (UK) = £ 9,010; Self Storage Association (Sweden) =
SEK 16,000.
Our mission in this area:
Reconcile risk management with innovation
How we aim to do this:
Incorporate sustainability issues into Shurgard’s management
systems and Code of conduct
SHURGARD ANNUAL REPORT 2022
105
CORPORATE GOVERNANCE
The management and supervision of Shurgard comprises a Board of Directors which is the body responsible for
Shurgard’s Senior Management, supervision, and control. To support the Board, there are three main committees:
the Audit Committee, the ESG Committee and the Real Estate Investment Committee.
Having robust governance bodies is a priority for Shurgard. A diversity of profiles is required among the members
of its collegiate bodies. Thus, the collective expertise of each of them contributes to the implementation,
management, and supervision of all business activities. The Board of Directors provide guidance, direction, and
oversight to advance the interests of Shurgard and our stakeholders.
Shurgard is committed to respecting the rules of governance. To this end, it has established transparent financial
reporting and effective internal controls. It is organized in such a way as to promote a strong culture of awareness
of compliance, business ethics and risk management.
GRI 2-9
BOARD OF DIRECTORS
According to our Articles of Association, the Directors are appointed by the General Shareholders’ Meeting for a
term of one year. The General Shareholders’ Meeting also determines the number of members of the Board of
Directors, their remuneration and the terms of their office (which may not exceed one year). The Directors are
eligible for reelection, and they can be removed at any time by the General Shareholders’ Meeting, with or without
cause. If the Board has a vacancy, the remaining Directors have the right to appoint a replacement until the next
General Shareholders’ Meeting.
The Board of Directors is currently composed of 11 members - one Executive Director and ten Non-Executive
Directors. We consider a majority (six) of the members of our Board of Directors to be independent, of which one
has been appointed Lead Independent Director. At the Annual General Shareholders’ Meeting of May 4, 2022, all
the members of the Board were re-appointed for a term of one year ending at the Company’s Annual General
Shareholders’ Meeting to be held in 2023.
For more detailed information on the composition of the Board of Directors, see below.
RESPONSIBILITY OF THE BOARD OF DIRECTORS
The Board of Directors retains sole responsibility for the following matters:
a) convene the general meeting of shareholders of the Company;
b) establish the internal regulations of governance of the Company;
c) elect the members of the Audit Committee, the ESG Committee and the Real Estate Investment
Committee;
d) appoint and remove the Chief Executive Officer of the Company;
e) delegate the day-to-day management of the Company to the Chief Executive Officer;
f) appoint and remove the other executive board members when their appointment or removal is proposed
by the Chief Executive Officer;
g) approve the overall Company strategy;
SHURGARD ANNUAL REPORT 2022
106
h) approve the annual overall Company budget;
i) approve the annual balance sheet and profit and loss accounts and propose an allocation of the annual
profits;
j) approve any acquisition or disposal of assets, properties or subsidiaries worth more than €50.0 million;
and
k) decide on a Company basis on the introduction or major amendments of pension schemes, share option
schemes, participation of employees in profits, or similarly important labor relations schemes.
BOARD MEETINGS
The Board of Directors meets as often as the interests of the Company require and at least four times a year.
The meetings are called by the Chairperson of the Board. Except in urgent cases or with the prior consent of all
the Directors, at least 48 hours’ written notice must be given for Board meetings.
The Chairperson prepares the agenda of the Board meetings after consultation with the Chief Executive Officer
and/or the Lead Independent Director.
The Chairperson presides at meetings of the Board. If they are absent the Board can vote by majority to appoint
another Director as Chairperson for the relevant meeting. At least half of the Directors must be present at the
meeting for any deliberation and voting to be valid. No Directors can be represented by another Director at any
meeting of the Board.
The convening notice provides details of the day, time, and place of the Board meetings. The Board and its
committee meetings are conducted in English and can be held remotely (e.g., by video or telephone conference).
In these circumstances, the connection must be uninterrupted, all members taking part in the meeting must be
identified, and they must be able to communicate with each other on a continuous basis.
During the financial year 2022, the Board of Directors held four meetings. All members of the Board were present
at these meetings.
GRI 2-10 / 2-11
SHURGARD ANNUAL REPORT 2022
107
DIRECTORSHIPS HELD BY BOARD MEMBERS
As of December 31, 2022, our Board members held directorship mandates in the following companies:
SHARE OWNERSHIPS OF DIRECTORS
As of December 31, 2022, the members of the Board of Directors owned 181,081 shares or 0.2% of the total share
capital of the Company. The breakdown of share ownership is:
Name
Number of shares
Ronald L. Havner, Jr.
10,000
Marc Oursin
137,092
Z. Jamie Behar
1,901
Everett B. Miller III
7,500
Muriel De Lathouwer
2,979
Olivier Faujour
4,347
Frank Fiskers
4,347
Ian Marcus
2,515
Padraig McCarthy
2,000
Isabelle Moins
1,700
Daniel C. Staton
12,500
Total
181,081
Name
Mandates
Ronald L. Havner, Jr. Public Storage, AvalonBay Communities, Inc., Huntington Hospital
Marc Oursin
CAG23 Capital
Z. Jamie Behar
Armour Residential REIT, Inc., Sila Realty Trust, Benefit Street Partners
Multifamily Trust, CBRE Investment Management,
Real Estate Investment
Advisory Council of the National Association of Real Estate Investment
Trusts, Guiding Eyes For The Blind (Advisor)
Everett B. Miller III
No other directorship
Daniel C. Staton
Staton Capital LLC, ARMOUR Residential REIT Inc, ACM, Terran Orbital,
Techiya LLC
Ian Marcus
Town Center Securities plc, Anschutz Entertainment, Work-Life, Elysian
Residences, the Wharton Business School Real Estate Faculty, Eastdil
Secured LLP, Redevco NV
Muriel De Lathouwer
Coderdojo Belgium asbl, Etex, Olympia group of companies, CPH, ULB dev
(economic
development of the research from the Free University of
Brussels)
Olivier Faujour
Wegrow SaaS, Neosilver Silver Economy, Alpange Pianos Company, Bon
Vivant Food
Frank Fiskers
Whitbread PLC, Rak hospitality holding LLC
Padraig McCarthy
No other directorship
Isabelle Moins
April International Care France, Smile Corp (SAS), Innovaas
SHURGARD ANNUAL REPORT 2022
108
INDEPENDENCE OF BOARD MEMBERS
Six of the Non-Executive directors – Muriel De Lathouwer, Olivier Faujour, Frank Fiskers, Ian Marcus,
Padraig McCarthy and Isabelle Moins – are independent of management and other outside interests that might
interfere with the exercise of their independent judgement. We define an “independent Board member” as a
member who:
a) is not an executive or managing director of the Company or an associated company;
b) is not an employee of the Company or an associated company;
c) does not receive significant additional remuneration from the Company or an associated company apart
from a fee received as Non-Executive Director;
d) does not have an employee, contractual or managerial relationship with, is not an agent of, nor has a
financial interest in or receives compensation from, the controlling shareholder(s) (i.e., a strategic
shareholder with a 10.0% or larger holding);
e) has no significant business relationship with the Company. Business relationships include significant
suppliers of goods or services (including financial, legal, advisory or consulting services), a significant
customer and organizations that receive significant contributions from the Company or Group;
f) is not a partner or employee of the external auditor of the Company or an associated company;
g) is not an executive or managing director in another company in which an executive or managing director
of the Company is a non-executive or supervisory director, and does not have other significant links
with executive directors of the Company through involvement in other companies or bodies; and
h) is not a close family member of an executive or managing director, or of persons in the situations
referred to in points (a) to (h).
55%
45%
100% MEETINGS
ATTENDANCE
Independent Non independent
SHURGARD ANNUAL REPORT 2022
109
DIVERSITY OF BOARD MEMBERS
Shurgard is committed to achieving a high level of diversity at all levels in qualities such as age, gender, race,
ethnicity, geography, sexual orientation, gender identity and diverse background. The commitment to diversity
also extends to the Company’s Board. Our Board reflects diverse perspectives, including a complementary mix of
skills, experience, and backgrounds, which we believe is paramount to the Company’s ability to represent the
interest of all shareholders. As disclosed below, 27% of Board members are women, and the Company aims to
increase that ratio. Also, six nationalities are represented on the Board of Directors which allows for an enriching
cultural exchange.
Furthermore, the Board members have different skills backgrounds: all of them have management experience,
three quarters have finance experiences, and seven directors have a strong background in real-estate, including
self storage. The Board members profile is further complemented by experience in marketing, engineering, and
insurance, as well as in digitalization, transformation and technology. To enhance the self-storage and corporate
governance skills of the members of the Board, ongoing training is provided by the Company.
GRI 405-1
SHURGARD ANNUAL REPORT 2022
110
COMMITTEES OF THE BOARD
The Board of Directors has set up the following committees, each of which is governed by internal rules and
regulations approved by the Board:
the Audit Committee;
the ESG Committee; and
the Real Estate Investment Committee.
The Board of Directors can amend or rescind the powers delegated to each of the committees and amend the
internal rules and regulations to which the committee is subject.
According to their internal rules and regulations, each of the committees convenes at appropriate times and
whenever required by our affairs. The meetings are called by the Chairperson or by two members acting jointly.
The meetings of the committee are held either in the Grand Duchy of Luxembourg or at other places indicated
on the convening notice; or via an online secured videoconference system due to certain circumstances and as
authorized by the law (such as the COVID-19 safety rules and travel restrictions experienced). Except in urgent
cases or for regularly scheduled meetings, the meetings of the committee are announced in writing at least 48
hours in advance. This notice can be waived if each member of the committee provides documented consent.
Meetings previously scheduled by the committee do not require a separate notice. Members of the committee
can participate in a meeting remotely by conference call or videoconference. Remote participation is equivalent
to a physical presence at the meeting. At least half of the committee members present or represented at a
committee meeting constitutes a quorum, and resolutions are adopted by a simple majority vote of the
committee members present or represented. In case of a tie, the resolution will not be approved. The committees
provide periodic reports to the Board of Directors, which retains ultimate responsibility, and assesses their own
effectiveness annually.
AUDIT COMMITTEE
The Audit Committee is responsible for all matters set forth in the Luxembourg law of July 23, 2016, on the audit
profession, as amended (the “Audit Act”), the Audit Committee should, in particular, perform the following
activities:
a) inform the Board of Directors of the outcome of the statutory audit and explain how the statutory audit
contributed to the integrity of financial reporting and what the role of the Audit Committee was in that
process;
b) monitor the financial reporting drawing-up process and submit recommendations or proposals to
ensure its integrity;
c) monitor the effectiveness of our internal quality control and risk management systems and, where
applicable, its internal audit, regarding our financial reporting, without breaching its independence;
d) monitor the statutory audit of the annual and consolidated financial statements, in particular its
performance, taking into account any findings and conclusions by the CSSF pursuant to Article 26(6) of
Regulation (EU) No 537/2014;
e) review and monitor the independence of the approved statutory auditor(s) (réviseur(s) d’entreprises
agréé(s)), in particular the appropriateness of the provision of non-audit services to the audited entity
in accordance with Article 5 of Regulation (EU) No 537/2014;
SHURGARD ANNUAL REPORT 2022
111
f) be responsible for the selection of the approved statutory auditor(s) (réviseur(s) d’entreprises agréé(s))
and recommend the approved statutory auditor(s) (réviseur(s) d’entreprises agréé(s)) for approval by
the Company’s shareholders except when Article 16(8) of Regulation (EU) No 537/2014 is applied.
At least one member of the Audit Committee should be competent in accounting and/or auditing. The Audit
Committee members as a whole should be competent in the relevant sector in which we are operating. A majority
of the members of the Audit Committee should be independent of the Company. The chairperson of the Audit
Committee should be appointed by its members and should also be independent of the Company.
As of December 31, 2022, the Audit Committee consisted of four members: Padraig McCarthy (chairperson), Z.
Jamie Behar, Isabelle Moins and Muriel De Lathouwer. Padraig McCarthy, Isabelle Moins and Muriel De Lathouwer
are considered independent Board members. Padraig McCarthy, Z. Jamie Behar and Muriel De Lathouwer have a
special competence in accounting and/or auditing in listed companies. Three out of the four members of the
Audit Committee are independent, which ensures good governance and nonpartisan decision-making. Z. Jamie
Behar, non-independent director has been appointed onto the Audit Committee due to her renowned academic
knowledge in finance and twenty-five years of senior experience in both public and private market real-estate
investment.
During the financial year 2022, the Audit Committee held four meetings, where all committee members were
present.
ESG COMMITTEE
The ESG Committee is responsible for the following matters:
a) the review and approval of corporate goals and objectives relevant to the Senior Management’s
compensation, and the evaluation of their performance related to these goals;
b) making recommendations to the Board on incentive compensation plans and equity-based plans;
c) submitting proposals to the Board on the remuneration of members of the Senior Management;
d) making recommendations to the Board on the Company’s framework of remuneration for Senior
Management and other members of the executive management, and assisting the Board in drawing up
the remuneration policy of the Company;
e) identifying candidates qualified to serve as members of the Board and executive officers;
f) recommending candidates to the Board for appointment by the General Meeting or for appointment by
the Board to fill interim vacancies on the Board;
g) facilitating the evaluation of the Board and reporting to the Board on all matters relating to
remuneration (including, for example, on internal pay disparity);
h) preparing a remuneration report (which should contain, among others, disclosure on the remuneration
of each executive officer) and which should be submitted to the annual Shareholders’ Meeting for an
advisory vote;
i) overseeing the Environment, Social and Governance (ESG) strategy of the Company and monitoring the
completion of the ESG objectives;
j) reviewing any ESG report filed by the Company;
SHURGARD ANNUAL REPORT 2022
112
k) assisting the Board in reviewing and assessing the Company’s ESG risks;
l) submitting a list of candidates to the Board on the appointment of new directors and Senior
Management;
m) assessing the existing and required skills, knowledge and experience for any post to be filled and
preparing a description of the role, together with the skills, knowledge and experience required;
n) making an assessment about the independence of candidate directors; and,
o) assessing, together with the Chief Executive Officer, the way in which the Senior Management operates
and the performance of its members at least once a year.
The ESG Committee members should be competent in the relevant sector in which we are operating. The
committee will be composed of independent Directors and Non-Executive Directors of the Board of Directors.
As of December 31, 2022, the ESG Committee consisted of five members: Frank Fiskers (chairperson), Muriel De
Lathouwer, Ian Marcus, Padraig McCarthy and Olivier Faujour, all of whom are considered independent Board
members.
During the financial year 2022, the ESG Committee held five meetings where all committee members were
present.
GRI 2-12
REAL ESTATE INVESTMENT COMMITTEE
The Real Estate Investment Committee is authorized by the Board to review and approve all acquisitions or
disposal of assets, properties or subsidiaries under €50 million.
As of December 31, 2022, the Real Estate Investment Committee consisted of six members: Z. Jamie Behar
(chairperson), Olivier Faujour, Frank Fiskers, Daniel C. Staton, Ian Marcus and Everett B. Miller III. Ian Marcus,
Olivier Faujour and Frank Fiskers are considered independent Board members.
During the financial year 2022, the Real Estate Investment Committee held five meetings, where all committee
members were present.
SENIOR MANAGEMENT
The Senior Management of the Group is made up of five members, who hold their positions through employment
contracts with entities of the Group, except for the Chief Executive Officer who has a management agreement
and who is appointed and may be removed by the Board of Directors.
The Board of Directors has delegated the daily management of the business to the Chief Executive Officer. The
Chief Executive Officer has the authority to represent the Board, as well as a number of ancillary specific powers.
In addition, the Chief Executive Officer has been granted powers to approve any development or refurbishment
of real estate assets.
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113
DIRECTORSHIPS HELD BY SENIOR MANAGEMENT
As of December 31, 2022, the members of the Senior Management held directorship mandates in the following
companies:
Name
Mandates
Marc Oursin
CAG23 Capital
Jean Kreusch
Transforming Talent SPRL, Sports Abroad asbl
Duncan Bell
No other directorship
Ammar Kharouf
No other directorship
Isabel Neumann
Belfius Bank & Insurance
SHARE OWNERSHIP OF THE MEMBERS OF SENIOR MANAGEMENT
As of December 31, 2022, members of the Senior Management owned the following numbers of shares, adding
up to 283,134 shares or 0.32% of the total share capital:
Name
Number of shares
Marc Oursin
137,092
Jean Kreusch
86,521
Duncan Bell
15,173
Ammar Kharouf
44,348
Isabel Neumann
0
Total
283,134
The members of the Senior Management have to meet share ownership requirements proportional to their fixed
compensation over five years. This shareholding requirement is set at 2.5 times the fixed compensation for the
Chief Executive Officer, 2.0 times for the Chief Financial Officer and 1.5 times for the other Senior Management
members. For all members, except for Isabel Neumann, who recently joined the Company, these requirements
were satisfied well in advance of the five-year period.
DIRECTOR AND MANAGEMENT CONFLICTS OF INTEREST
Members of the Senior Management have employment agreements with an entity of the Group, other than the
Chief Executive Officer who has a management contract. Certain members of the Senior Management also serve
on the boards of various Group companies. In addition, the Chief Executive Officer is a member of the Board of
Directors of the Company. Therefore, conflicts of interest could arise for members of the Board of Directors and
of Senior Management between their duties towards the Group, the relevant individual Group company and their
duties as members of the Board of Directors of the Company or as a member of Senior Management, respectively.
SHURGARD ANNUAL REPORT 2022
114
As of December 31, 2022, the following members of the Board of Directors are partners, directors, representatives
and/or employees of Public Storage or an affiliate thereof: Ronald L. Havner, Jr. and Daniel C. Staton. Z. Jamie
Behar and Everett B. Miller III are members of the Board of Directors elected on the designation of our shareholder
New York State Common Retirement Fund. Apart from these potential conflicts of interest and the transactions
and legal relations described in the section “Related Party Transactions”, there are no other actual or potential
conflicts of interest between the obligations of the members of the Board of Directors or Senior Management
toward the Company and their respective private interests or other obligations.
None of the Board members or members of the Senior Management are related to one another by blood or
marriage. We have not granted any Board members or members of the Senior Management any loans, nor have
we assumed any guarantees or sureties on their behalf.
Pursuant to the 1915 Companies Act, in the event that a member of the Board of Directors has a financial conflict
of interest in any Company transaction submitted to the approval of the Board of Directors, they must inform
the Board of Directors at that meeting and include a record of their statement in the minutes of the meeting.
The member of the Board of Directors may not take part in the deliberations relating to that transaction and may
not vote on the resolutions relating to that transaction. At the following General Shareholders’ Meeting, before
any other resolution is put to a vote, a special report should be made on any transactions in which any of the
directors may have had a conflict of interest with that of the Company.
GRI 2-15
ANNUAL GENERAL MEETING
The Annual General Meeting of Shareholders must be held within six months following the end of the financial
year at the place and on the day set by the Board of Directors. The Board of Directors can convene Extraordinary
General Meetings as often as the Company’s interests require. In accordance with the Luxembourg Company
Law, a General Meeting of Shareholders must be convened on the request of one or more shareholders who
together represent at least one tenth of the Company’s capital.
The right of a shareholder to participate in a General Meeting and to exercise the voting rights attached to his
shares are determined with respect to the shares held by such shareholder the 14th day before the General
Meeting of Shareholders at 24 hours (Luxembourg time), which is known as the “Record Date”. Each shareholder
has the right to ask questions about the items on the agenda of a General Meeting of Shareholders. Each share
entitles the holder to one vote. Each shareholder can exercise their voting rights in person, through a proxy
holder, or by correspondence in advance of the General Meeting of Shareholders, by means of the form made
available by the Company.
In 2022, the Annual General Meeting of Shareholders took place on May 4, 2022.
Due to COVID-19, physical attendance was excluded, and a vote was only possible by power of attorney to the
Chairman of the meeting or by correspondence (further information can be found on our Corporate website:
2022
Annual General Assembly | Shurgard Investor Relations)
EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS
In the financial year 2022, an extraordinary general meeting of the shareholders took place on December 9, 2022.
During that meeting, the Shareholders approved all proposed resolutions relating to the Company’s plan to
migrate the Company to Guernsey and become a UK REIT in March 2023. Due to COVID-19, physical attendance
was excluded, and a vote was only possible by power of attorney to the Chairman of the meeting or by
correspondence (further information can be found on our Corporate website:
2022 Extraordinary General Meeting
of Shareholders | Shurgard Investor Relations.)
SHURGARD ANNUAL REPORT 2022
115
STATUTORY AUDITOR
During the financial year 2022, the Company’s statutory auditor (réviseur d’entreprise agréé) was Ernst & Young
S.A., registered with the CSSF as a cabinet de révision agréé and with the Luxembourg Trade and Companies
Register (Registre de Commerce et des Sociétés, Luxembourg) under number B47771. The registered office of
Ernst & Young Luxembourg S.A. is 35E, Avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of
Luxembourg. Ernst & Young S.A. is a member of the Luxembourg body of registered auditors (Institut des
Réviseurs d’Entreprises). At the Annual General Meeting of Shareholders
of May 4, 2022, Ernst & Young S.A. was
re-appointed as independent auditor (réviseur d’entreprises agréé) of the Company for a term of one year ending
at the Company’s Annual General Meeting of Shareholders to be held in 2023.
Audit fees in 2022 were €724,275 for the audits of consolidated and statutory financial statements of the
Company and its subsidiaries.
SHURGARD ANNUAL REPORT 2022
116
CODE OF CONDUCT
At all times, our employees must act with loyalty, competence, care and diligence, in the best interests of
customers and other stakeholders. Identifying and understanding irresponsible behavior is a pre-requisite for
any corrective action. Ethical and accountability principles are a mandatory part of each employee’s annual
performance review. In addition, the whistleblowing procedures in place guarantee employees complete
confidentiality in the event of a report. In all our activities, checks and balances ensure the proper monitoring of
the systems put in place, in support of our corporate values and objectives. Employee training involves courses
related to business ethics, compliance and regulations.
Business Ethics and Compliance training 2022 2021
Percentage of employees who attended at least one Ethics and Compliance refreshment
training session
100.0% 82.0%
Our Code of conduct aims to:
Define the expected behavior of all employees;
Make the connection between our company values, policies and guidelines, and individual actions;
Promote ethical decision-making;
Ensure that our behavior meets the highest standards of professional conduct.
It covers a number of important topics, including:
Compliance with the laws and regulations of the countries in which we operate;
Ethics and transparency in the services provided to customers;
Protecting confidential information;
The fight against money laundering and corruption;
Maintaining a healthy environment, free from harassment and discrimination.
It underlines our desire to have a positive and lasting impact on society and our commitment to sustainability. It
provides the overall framework for all topics relevant to our activities. Shurgard employees must comply with it
at all times. Shurgard further expects its employees to promote Shurgard values outside their business activities
and to speak up when they have a concern about a possible violation of the underlying Shurgard policies or the
applicable laws.
We have put in place internal guidelines for each issue that may impact our activities, our employees or our other
stakeholders. These arrangements ensure the active monitoring of compliance with regulations. Thanks to them,
all employees facing these risks are informed of any regulatory changes. Shurgard‘s objective is twofold: maintain
active communication on procedures and guidelines, and review ethics-related policies to integrate non-financial
risks.
GRI 102-15 / 102-17 / 102-29
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ANTI-CORRUPTION AND BRIBERY
Shurgard prohibits employees from participating in schemes involving any payment or transfer of Shurgard funds
or assets to any representative of suppliers, customers, public authorities, officials or others in the form of
commercial bribes, kickbacks, and other similar payoffs and benefits, as detailed in the Ethical Behavior policy of
the Company.
Bribery and corruption of suppliers and/or customers includes, but is not limited to:
Gifts (except if customary business practice or in compliance with Shurgard’s business expense
policy);
Cash payments reimbursed by Shurgard (except expenditures for meals and entertainment of
suppliers and customers that are a customary business expense and in compliance with Shurgard’s
business expense policy);
The uncompensated use of Shurgard services, facilities or property (except if customary business
practice and lawful);
Loans, loan guarantees or other extensions of credit (except at prevailing commercial rates);
Giving or receiving anything of value to (foreign) government officials, (foreign) political parties,
party officials, or candidates for public office, suppliers or customers for the purposes of obtaining,
facilitating (facilitation payments) or retaining business for Shurgard.
Shurgard also prohibits employees from receiving (other than salary, wages or other ordinary compensation from
Shurgard), directly or indirectly, from suppliers, customers or others in connection with a transaction entered by
Shurgard, anything of a significant value, excessive hospitality, loans or other special treatments. The same
applies to any person having a close personal relationship with the employee.
Failure to comply with such commitments may lead to disciplinary or other measures against culpable employees,
including the termination of employment and/or the termination of contracts with business partners, or to such
contracts not being extended or changed for precautionary reasons.
As part of the mitigation of corruption risks, employees and Directors of the Board of Shurgard (more information
on page 112) make an annual declaration relating to conflicts of interest. In addition, in 2022, our employees
participated in an online training about anti-bribery as part of our Code of conduct refreshment training.
In 2022, no cases of corruption or bribery were reported. There were no legal proceedings against Shurgard or
its employees and no confirmed incidents when contracts with business partners were terminated.
GRI 205-1 / 205-2 / 205-3
COMMUNITY CONTRIBUTION
Shurgard encourages employees’ participation in supporting the community and charity organizations. Shurgard
realizes employee giving as an important part of the employee engagement process and supports the
contribution of our staff to organizing activities for non-profit organizations we are engaged with. a.
CONFLICT OF INTERESTS
Shurgard wants its employees to remain neutral and independent when acting for the Company. Hence, conflicts
of interests are to be avoided by employees. If a conflict of interest is unavoidable it must be disclosed at the
earliest opportunity. An online assessment is carried out every year for employees, as per the Conflict of Interest
policy.
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118
INSIDER DEALING
Shurgard wants to ensure that its employees do not abuse, or place themself under suspicion of abusing, price
sensitive or inside information that they may have or be thought to have, especially in periods leading up to an
announcement of financial results or of price sensitive events or decisions. Basically, any of Shurgard’s directors
or employees (or people closely associated with them) are prohibited from dealing or attempting to deal in
financial instruments for his, her or its own account or for the account of a third party at any time (i) when such
person is in possession of inside information or (ii) during a close period (as communicated by the management).
Other restrictions, such as the prohibition of short sales, hedging, or disclosing or using inside information, also
apply.
In 2022, all employees participated in an online training course about Insider Dealing as part of our Code of
conduct refreshment training.
WHISTLEBLOWING
Shurgard annually reviews and updates its whistleblowing procedure, consistent with best practice. The policy is
proactively communicated and made available to all employees in local languages. It is also available on the
Shurgard website for suppliers, customers and other third parties.
The policy is designed to allow all Concerned Persons (e.g., employees, shareholders, executive or non-executive
directors, contractors or suppliers) to disclose information internally on actual or potential acts, which they
believe shows malpractice, unethical conduct or illegal practices in the workplace, without being penalized in
any way. The policy also sets forth how Concerned Persons are to (i) safely express concerns, (ii) know who to
contact, (iii) make a report, and (iv) to be protected for raising concerns. Concerned Persons are expected to
disclose or report the acts/incidents (e.g., crime, offense, misconduct, threat or prejudice) that could occur in
various contexts (e.g., financial markets, money laundering, anti-bribery, product safety and compliance, health
and safety, consumer protection and regulations). Shurgard ensures that employees act within the law and
expects all Concerned Persons to adhere to all rules, policies and procedures.
A clear reporting procedure is in place to raise any wrongdoing in an appropriate way. Since 2021, cases can be
reported anonymously via a secure online platform, or any other way as per the local laws. Reported cases are
handled by the Internal Audit department (independent reporting line to the Audit Committee) and, in case of
conflict of interest, by the Legal Department, treating any whistleblowing disclosure with the highest level of
confidentiality. The identity of the reporting person will be protected at all stages in any internal matter to the
extent reasonably possible and subject to national legislation. Concerned Persons will be protected from
retaliation, harassment, victimization or disciplinary action as a result of any disclosure.
The policy is proactively communicated and made available to all employees in local languages. Online training
as well as regular refresher courses are organized for all employees. Finally, employees in stores are regularly
tested by the Internal Audit department on their knowledge about this policy.
In 2022, all employees participated in an online training course about whistleblowing as part of our Code of
conduct refreshment training.
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FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Shurgard supports freedom of association. As part of this, it respects the right of employees to join unions and
to be represented by representatives of these unions internally and externally in accordance with the applicable
national or local laws and practices. The same standard is applicable for suppliers.
Suppliers must observe the right of their employees to strike and to be members of trade unions.
In 2022, Shurgard knows of no cases in which freedom of association or the right to collective bargaining have
been jeopardized or even breached.
Shurgard is assessing its suppliers in relation to freedom of association, among other social, governance, and
environmental topics. To ensure ongoing compliance with these ethical and environmental standards, we survey
our critical suppliers every three years on their ESG performance. For more information on this topic, please refer
to the chapter “Encouraging ESG through the supply chain”.
GRI 407
RISKS AND OPPORTUNITIES
Understanding the risks analyzed and their potential impact on the commitments made is at the heart of the
Shurgard‘s sustainable approach. The way we manage risks allows us to see how risks interact over time and at
different stress levels. It benefits from our commitment to transparency and informed decision-making. By
adhering to monitoring our risks and opportunities, we commit to a long-term resilient business model..
.For more information on this subject, please refer to the “Principal Risks and Uncertainties” chapter on page 171
of the Annual Report 2022.
DATA PROTECTION
Ensuring the privacy of our customers’ personal data is a daily concern at Shurgard. We are committed to
protecting the privacy of the data collected for the sole purpose of executing the self-storage contract, and to
ensuring the security of the premises.
The Company has set up a privacy policy that can be found on our commercial website, available in all languages
in the country where we operate and also on the Company’s corporate website. Our contracts with our customers,
but also with our suppliers and employees, contain a data privacy provision, to ensure that all the rights and
duties are understood by the parties. A dedicated email address is available to raise any request or issue
regarding the protection of personal data: dataprotection@shurgard.eu
The Security Committee, a cross-departmental body (IT, finance, legal, HR, internal audit, operations, real estate),
has been established for the purposes of proactively engaging and monitoring data security across the
organization as well as spreading awareness on the topic and training employees about it.
The Security Committee convenes on a bi-monthly basis and discusses the different security topics related to
each department based on findings, experiences, proposals, actions and reactions and dedicated reporting.
Activities of this committee are reported to the Board of Directors.
The Security Committee actively monitor security and privacy risks, improving our ability to mitigate them
through:
Company-wide programs;
Established industry practices;
Assessments and responses to threats and vulnerabilities.
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120
Digitization is accelerating and, with it, the risks of invasion of privacy. We are supporting these changes with
digitization projects. Our goal is to optimize certain processes and offer our customers new service options. At
the same time, we pay attention to the smallest details to support seamless protection for our stakeholders.
Information security policies and procedures define the classification and rules to be adopted for the purposes
of confidentiality of information and compliance with regulations on the protection of personal data. They
describe the organizational controls put in place to protect information. Our other security measures include
firewalls, data encryption and 24-hour monitoring. This enables us to maintain the quality of technological
systems and proactively detect unusual activity. In addition, all our employees are trained on the collection, the
process, and the protection of personal data.
We ensure the confidentiality, integrity, and availability of data. This is essential to maintain the trust placed in
us by our customers, employees, and other stakeholders. Since the spread of teleworking for our corporate
employees, we have further strengthened our security capabilities. We can thus monitor the increasing number
of threats involving phishing and social engineering.
We also focused on improving the user experience. To do this, we have simplified the processes and controls and
consolidated security. We are continually and exponentially adapting all our systems.
In the financial year 2022, employees from the HR, Marketing and IT departments participated in mandatory
GDPR training specifically designed for their area of business.
CYBER SECURITY
Cyberattacks against businesses are increasing in size, speed, and sophistication. To protect its information and
systems, Shurgard takes a defense-in-depth approach:
Incorporates detailed information security controls;
Provides end-to-end protection;
Offers multiple possibilities to detect, prevent, respond to, and recover from cyber threats.
Representing an essential component of information security management, this approach aims to strengthen
the security and stability of technological platforms. In addition, we are constantly developing awareness
campaigns. Shurgard‘s employees are trained, business by business, in the risk of cyber-attacks and the
importance of data protection. Shurgard‘s prevention methods and controls include:
Threat intelligence;
The prevention of data leaks;
Vulnerability;
Ongoing employee awareness programs.
At the same time, we focus on detection, supported by a robust incident response process. Responsible teams
endeavor to anticipate and respond to incidents proactively. Security incident management covers unwanted or
unexpected events that affect confidentiality and the integrity of information that may have an impact on
Shurgard, our customers or employees. Management and escalation processes are designed to best respond to
cyber-attacks or threats to information security, minimizing losses, leaks, or disturbances. We use the
information obtained by handling incidents for the purpose of continuous improvement of our activities. We look
to increase stability through a better understanding and proactive management of our cyber security risks.
In the financial year 2022, all employees participated in online cybersecurity training and phishing simulation
exercises were designed to securely test user behavior and increase employees’ awareness.
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EU TAXONOMY
EU Taxonomy objectives
The European Union (“EU”) is aiming to address the global climate change challenges through ambitious climate
and energy targets to reach the objectives of the European Green Deal, as well as regulatory actions. As part of
these activities, the EU Taxonomy has been issued. This establishes a common understanding of green economic
activities that make a substantial contribution to the environmental goals of the EU, by providing consistent and
objective criteria to classify and list activities that are environmentally sustainable. The EU Taxonomy aims to
provide companies, investors, and policymakers with appropriate definitions to objectively measure how
sustainable a company is, enabling comparability and helping direct investments towards sustainable projects.
The EU Taxonomy defined six environmental objectives:
1. Climate change mitigation
2. Climate change adaptation
3. The sustainable use and protection of water and marine resources
4. The transition to a circular economy
5. Pollution prevention and control
6. The protection and restoration of biodiversity and ecosystems.
For the years 2021 and 2022, only the criteria for the first two objectives were issued by the EU. The criteria for
the remaining objectives are expected to be published in the foreseeable future.
Shurgard’s Taxonomy-eligible activities
A taxonomy-eligible activity according to the EU Taxonomy is an economic activity that is described in the
European Commission’s Delegated Acts. The activities described were prioritized due to their significance in
contributing to the environmental objectives of the EU. Hence, these activities focus on specific high CO
2 emitting
sectors such as construction, transport, manufacturing, and energy production.
As a first step, entities must analyze whether their activities are part of the scope of the Technical Screening
Criteria (“TSC”) of the EU Taxonomy, which are linked to the relevant NACE codes. Entities performing several
economic activities, might have to map them to different NACE codes. If an activity is not defined in the TSC, it
is currently not covered by the EU Taxonomy.
With both the guidance on these topics and market practices developing, we note that the interpretation and
implementation of this mapping or the implementation of the technical screening criteria might change going
forward.
Shurgard specific interpretation / application:
Ensuring that an activity is in line with the definition behind the NACE codes, is crucial. Judgement
needs to be applied when determining the activities that are in scope for Shurgard. For example,
the Group is frequently involved in the construction of new properties. This activity is not performed
with the purpose of reselling the asset, but for future use as part of our self-storage activities.
Based on available guidance, we al concluded that Shurgard should also not be considered as to
be a professional developer or construction company for the purpose of the EU Taxonomy.
SHURGARD ANNUAL REPORT 2022
122
As such, the activity 7.1 “Construction of new buildings” was considered to be not applicable for
Shurgard, in particular, as the EU Taxonomy makes specific reference to properties being
constructed for subsequent sale. We therefore included new developments in the activity 7.7
“acquisition and ownership of buildings”, which covers the acquisition and exercising of ownership
of properties.
Other activities, such as installation and / or operation of heat pumps, while specifically mentioned
in the TSC, are considered “supporting” activities for the Group. Consequently, activities that would
fall under 4.1 “Electricity generation using solar photovoltaic technology” and 4.16 “Installation and
operation of electric heat pumps” are included in our main activity “7.6 Installation, maintenance
and repair of renewable energy technologies” and “7.3. Installation, maintenance and repair of
energy efficiency equipment”, respectively.
Based on the above, we concluded that the Group is currently engaged into the following eligible activities:
Activity
reference
Activity description Shurgard examples
7.2 Renovation of existing buildings
Major renovation of existing stores, leading to a
reduction of the primary energy demand
7.3
Installation, maintenance and repair of
energy efficiency equipment
Improving insulation of our properties, installing
energy efficient windows or doors, replacement of
lights with LED, heat pumps, installation of water
flow reduction on the stores’ water taps
7.4
Installation, maintenance and repair of
charging stations for electric vehicles in
buildings (and parking spaces attached to
buildings)
Installation of charging stations in the close
surroundings of our stores for electric vehicles
7.5
Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy
performance of buildings
Installation of smart meters for electricity, motion
control for lights, building energy management
systems, smart thermostat systems
7.6
Installation, maintenance and repair of
renewable energy technologies
Installation of solar panels
7.7 Acquisition and ownership of buildings
Acquisition of new stores and ownership of
current portfolio of stores
The remaining economic activities of Shurgard were classified as non-eligible as they are not part of the activities
defined in the EU Taxonomy.
Taxonomy-aligned activities
Shurgard has assessed the alignment of the eligible activities by reviewing (i) their substantial contribution based
on the TSC outlined in the Climate Delegated Acts, (ii) the fact they do not significantly harm the other five
environmental objectives and (iii) the compliance with minimum safeguards checks. The result of the alignment
assessment is reported through Key Performance Indicators (KPIs) as detailed below.
SHURGARD ANNUAL REPORT 2022
123
All activities were first tested for their alignment with the first environmental objective (Climate Change
Mitigation). When a specific activity was partly or totally not aligned, we tested the alignment versus Climate
Change Adaptation, while avoiding any double count.
Clarification of existing guidance and additional commentary on the EU Taxonomy implementation and technical
requirements has been published throughout 2022 and continued until the day of preparation of this report. That
meant that our understanding of the requirements evolved during the year and that obtaining evidence required
to meet the alignment criteria for each property was not always possible. In these cases, Shurgard reported these
properties as “not-aligned”, knowing that this affected our KPI’s negatively. Going forward we expect the number
of existing properties that are reported as aligned to increase and consequently positively impact our KPIs, as
evidence collection progresses.
Climate Change Mitigation (“CCM”)– substantial criteria
In 2022, Shurgard incurred capital expenditures and operating expenses for the below activities, and their
substantial contribution to the CCM was reviewed against the TSC outlined in the Climate Delegated Acts. For
example:
7.3 Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings:
The substantial criteria are met when the activity respects nationally defined measures
implementing the EU Directive 2010/31/EU. In 2022, Shurgard replaced old lighting bulbs with
energy efficient LED’s, and equipped numerous stores with flow tap reducing equipment (see the
sections ‘LED Lighting initiative’ and ‘Manage our water usage’). Both programs are aligned with
the requirements outlined in the TSC.
7.6 Installation, maintenance and repair of renewable energy technologies:
During 2022, Shurgard invested in the installation of heat pumps in several buildings, to replace
gas heating (see section ‘Net Zero Carbon delivery strategy’). That activity is an enabling activity
contributing substantially to the climate change mitigation objective.
7.7 Acquisition and ownership of buildings:
Existing Buildings: According to the TSC, when a property has been constructed before
December 31, 2020, it is substantially contributing to the climate objective in the event it has an
Energy Performance Certificate (“EPC”) of A or equivalent. This is the case for most of our
properties. Alternatively, an entity can demonstrate that the property is in the top 15% of the
national or regional building stock, expressed as Primary Energy Demand (“PED”), in order to count
as substantially contributing to the climate objective.
Shurgard evaluated this criterion, where necessary, country by country, based on national studies
and surveys and assessed the outcome at property level. When construction for a property was
completed after December 31, 2020, the TSC require that the property has a PED at least 10%
lower than the Nearly Zero Emitting Building (NZEB) requirements, usually expressed as a
maximum PED in terms of KWh/sqm per year. In addition, when a property has a size of at least
5,000 sqm, the TSC require that it needs to undergo air tightness and thermal integrity testing.
The life-cycle Global Warming Potential resulting from the construction should be calculated for
each stage in the life cycle. In any event, large non-residential properties are required to be
efficiently operated through energy performance monitoring and assessment, which is reviewed
on a property-by-property basis.
SHURGARD ANNUAL REPORT 2022
124
Properties under construction: As indicated above, while Shurgard does construct self-storage
properties, these activities are not included under EU Taxonomy activity 7.1, but 7.7. This requires
applying the above-described requirements for existing properties to assets under construction. It
will typically not be possible to test most of the TSC before the construction has been substantially
completed, at which point most of the capital expenditures have been already incurred. For
instance, when Shurgard constructs a new property, there is no EPC available and air tightness
testing can only be done late in the construction process. In such cases, we use our best estimates,
based on the designed construction and materials used, to evaluate whether we can reasonably
expect that the TSC will be met at completion and only then include the capital expenditures in our
reporting. In line with EU Taxonomy guidance, any outcome that would materially differ from our
initial expectations will result in a restatement of prior year information.
Climate Change Adaptation (“CCA”)– substantial criteria
Shurgard also tested the activity “7.7 Acquisition and Ownership of buildings” for its contribution to the CCA
criteria.
In 2022, we performed a physical climate risk assessment of our entire portfolio of stores. We refer to the section
“Climate related risks and Opportunities”. This assessment evaluated the various potential physical climate risks
(e.g., floods, fires, sea level rise, tropical cyclones, etc.) that could affect our properties. To obtain aligned KPIs
with CCA, Shurgard needs to demonstrate that it has implemented physical and non-physical adaptation
solutions, substantially reducing the most important physical climate risks, even if the risk has been assessed to
be not material. With the results of the risk assessment, the Company will now be in position to consider
adaptation measures and increase CCA alignment.
For the CapEx KPI, the Disclosures Delegated Act requires the nature and scope of CapEx in an activity that
contributes substantially to CCM to be differentiated from the CapEx that make that activity adapted to climate
change. On the other hand, where the adaptation solution is an inherent part of the design of the new asset that
is itself aligned to CCM, and that it is difficult to distinguish both CapEx, both can be reported under CCM.
Regarding the turnover KPI, in accordance with the Annex I to the Disclosures Delegated Act, the revenue
generated from an activity that is adapted to climate may not be computed in the numerator of the turnover KPI
of the undertaking unless that activity is an activity enabling, or is aligned with CCM or any non-climate
environmental objective.
Do Not Harm
After testing the substantial contribution criteria (CCM and CCA), Shurgard also confirmed that the activities were
not significantly harming other EU Taxonomy objectives.
For all activities in scope for Shurgard in 2022, a physical climate risk assessment is necessary to consider the
activity as aligned. This is to ensure that investments made are climate risk proof.
In addition, measures are in place to ensure that the building is not dedicated to extraction, storage, transport
or manufacture of fossil fuels. Finally, when testing properties for their alignment on CCA, Shurgard reviewed
whether the property built before December 31, 2020, had an EPC of at least class C or was in the top 30% of
the national or regional building stock, expressed as PED. For properties built after December 31, 2020, we made
sure that the PED was lower than the threshold for the NZEB requirements. This has been reviewed using national
studies and surveys.
SHURGARD ANNUAL REPORT 2022
125
Minimum Safeguards
We continuously monitor the relevance of our policies governing e.g., human rights, fair labor practices, modern
slavery, health and safety, diversity, and compensation against the latest standards. To assess our social
safeguards alignment with the EU Taxonomy-approved frameworks, we further analyzed our compliance with
the following: ILOs Core Conventions, OECD MNEs, UN Guiding Principles and the International Bill of Human
Rights.
Implementation of social safeguards is assessed internally by the Executive Committee and the ESG Management
Group through regular monitoring and reporting on outcomes that are included in the organization’s internal
communication.
Besides having internal procedures, employees and dedicated working groups (e.g., ESG Management Group) are
in place to ensure our business’ alignment with the social safeguards. We use external advisors to review and
benchmark these policies and their implementation annually.
As a signee of the UN Global Compact since December 2021, we align our ESG Strategy with the universal
principles on human rights, labor, environment, and anti-corruption. We monitor our existing policies for updates
and make sure that our ESG agenda tackles these topics.
Additionally, we participate in the Global Reporting Initiative (GRI), making annual disclosures on our business
practices, where an organization's most significant impacts on the economy, environment, and people, including
impacts on their human rights are represented.
We have established adequate due diligence processes that allow us to monitor that all third-party agreements
have clauses relating to anti-bribery, human rights and modern slavery, among other topics. In addition, we
enquire about the business practices of our suppliers on a regular basis, to ensure their alignment with our
principles.
Based on the above, we concluded that our business activities are aligned with the social safeguard requirements
stated in the EU Taxonomy.
Turnover, CapEx and OpEx KPIs
Article 8 of the Taxonomy Regulation defines 3 KPIs to assess the proportion of (i) turnover, (ii) CapEx and (iii)
OpEx associated with economic activities that qualify as environmentally sustainable.
The basis for providing these KPIs is Shurgard’s financial information, prepared in accordance with International
Financial Reporting Standards (“IFRS”), as adopted by the European Union. The KPIs calculated below are based
on EU Regulation definitions. In order to increase the readers understanding of these KPIs, qualitative information
is provided to give some clarity on what is included or excluded from the KPIs to detail how these KPIs were
calculated, allowing the reader to compare these to the financial statements of the Group.
Note that the KPIs related to the taxonomy alignment are calculated for the first time in 2022. As such, no
comparative figures are available this year.
SHURGARD ANNUAL REPORT 2022
126
EU Taxonomy Turnover
The turnover KPI represents the proportion of Shurgard’s net turnover derived from products or services that are
Taxonomy aligned, as currently covered by the first Delegated Act. The EU Taxonomy turnover corresponds to
the real estate operating revenue, as per IFRS 4.
EU Taxonomy turnover APM
Notes
31/12/2022
('000 EUR)
Rental revenue
6,11
289,380
Other real estate revenue
6,11
2,383
Ancillary revenue, excl. other real estate revenue
6,11
9,211
Insurance revenue
6,11
32,075
Other revenue
6,11
2,241
Turnover considered for EU Taxonomy denominator
335,290
Shurgard specific interpretation / application:
The EU Taxonomy’s first Delegated Act covers, in connection with activity 7.7 “Acquisition and
ownership of buildings”, revenues derived from the ownership of a building, i.e. owners renting out
their properties to generate rental income directly from the property itself.
In a draft Commission notice from December 2022, the Commission clarified that only revenues
derived from the ownership of the building (whether through freehold or right-of-use asset),
should be considered, regardless of the activities that take place in a building. Other non-related
revenues, i.e., revenues that are not derived from the ownership of the building, are not in scope.
Based on this guidance, Shurgard concluded that the revenue generated from renting storage
space is to be considered as a rental income covered by the EU Taxonomy, whereas the revenue
generated from related services such as merchandise, insurance sales or third-party property
management income should not be considered for EU Taxonomy, a change to our 2021 assessment.
Economic activities
Turnover ('000€)
% of EU Taxonomy Turnover
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy / recycling
Pollution
Ecosystems protection
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy / recycling
Pollution
Ecosystems protection
Taxonomy-
aligned
proportion
FY2022
Taxonomy-
aligned
proportion
FY2021
Enabling
(E) /
Transition
al (T)
activity
A. Taxonomy Eligible activities 291,763 87.0% 32.5% N/A
A.1 Taxonomy Aligned activities 108,853 32.5% 32.5% N/A
7.7 - Acquisition and ownership of
buildings
108,853 32.5% 32.5% Y 32.5% N/A
A.2 Taxonomy non-Aligned activities 182,909 54.6% 0.0% N/A
7.7 - Acquisition and ownership of
buildings
182,909 54.6% 0.0% N/A
B. Taxonomy non-Eligible activities 43,527 13.0%
Insurance revenue 32,075 9.6%
Ancillary revenue, excl. other real
estate revenue
9,211 2.7%
Other revenue 2,241 0.7%
A+B Total Turnover 335,290 100.0% 32.5% N/A
Substantial contribution
Do not significant harm
SHURGARD ANNUAL REPORT 2022
127
Total EU taxonomy turnover is €335.3 million, of which €108.9 million is aligned (32.5%), €182.9 million is eligible
but not aligned and €43.5 million is not eligible. All of the EU Taxonomy-aligned revenue is coming from its
substantial contribution to Climate Change Mitigation.
EU Taxonomy Capital Expenditures (“CapEx”)
The CapEx KPI represents the proportion of Shurgard’s capital expenditure that is either already associated with
environmentally sustainable economic activities or is part of a credible plan to extend such activities, or for
activities which are not yet taxonomy-aligned to reach environmental sustainability.
The CapEx defined under the EU Taxonomy differs from the information included in our financial statements in
the sense that it excludes e.g. remeasurements, revaluations, impairments, and fair value changes. For 2022, the
total CapEx considered for EU Taxonomy amounts to €204.1 million and consists of acquisition of stores
(accounted for under IAS 40), expenditures on our investment property (IAS 40), rights of use assets from lease
agreements (IFRS 16), as well as additions to property, plant and equipment (“PP&E”, IAS 16) and intangible
assets (IAS 38):
EU Taxonomy CapEx APM
Notes
31/12/2022
('000 EUR)
Acquisition of investment property 14 76,310
Capital expenditure on investment property 14 112,577
Addition of investment property ROU assets 14 12,001
Investment property subtotal
200,888
Additions of PP&E (IAS 16, IFRS 16) 16 577
Additions of intangible assets (IAS 38) 16 2,654
PP&E and intangible assets subtotal
3,231
CapEx considered for EU Taxonomy denominator
204,119
In total, we concluded that 98.4% of the EU Taxonomy CapEx is eligible. The non-eligible activities relate to the
acquisitions of intangible assets (mainly software capitalized costs and IT developments) and the PP&E additions
related to equipment and other assets.
We reviewed the substantial contribution of the eligible CapEx against the technical screening criteria, their
compliance with the “Do no significant harm” principles, and the “minimum safeguards”. 17.2% of our CapEx
was assessed to be aligned with the Climate Change Mitigation objective.
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128
EU Taxonomy Operating Expenditures (“OpEx”)
The OpEx KPI represents the proportion of operating expenditure associated with environmentally sustainable
economic activities or the above-mentioned CapEx plan. The operating expenditure covers essentially direct non-
capitalized costs that relate to research and development, building renovation measures, short-term lease,
maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of
property, plant and equipment that are necessary to ensure the continued and effective functioning of such
assets.
Consequently, the OpEx defined under the EU Taxonomy differs significantly from the IFRS operating expenses:
EU Taxonomy OpEx APM - 31/12/2022 ('000 EUR)
Notes
IFRS
Operating
expenses
EU
Taxonomy
OpEx
Payroll expense, net of capitalization of internal time spent on IP
development
7, 8
50,303
1,604
Shared based compensation expense
8
3,899
240
Real estate and other taxes
7
16,834
0
Repairs and maintenance
7
10,913
8,824
Marketing expense
7
9,162
0
Utility expense
7
3,574
0
Other operating expenses and other general and administrative expenses
7, 8
28,409
3,768
Doubtful debt expenses
7
5,088
0
Cost of insurance and merchandise sales
7
5,289
0
Depreciation and amortization expenses
8
2,866
0
Total
136,336
14,436
Economic activities
CapEx ('000€)
% of EU taxonomy CapEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy / recycling
Pollution
Ecosystems protection
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy / recycling
Pollution
Ecosystems protection
Taxonomy-
aligned
proportion
FY2022
Taxonomy-
aligned
proportion
FY2021
Enabling (E) /
Transitional
(T) activity
A. Taxonomy Eligible activities 200,887 98.4% 17.2% N/A
A.1 Taxonomy Aligned activities 35,019 17.2% 17.2% N/A
7.3 - Installation, maintenance and
repair of energy efficiency equipment
1,001 0.5% 0.5% 0.0% Y Y 0.5% N/A E
7.6 - Installation, maintenance and
repair of renewable energy
technologies
1,028 0.5% 0.5% 0.0% Y 0.5% N/A E
7.7 - Acquisition and ownership of
buildings
32,990 16.2% 16.2% 0.0% Y Y 16.2% N/A
A.2 Taxonomy non-Aligned activities 165,868 81.3% 0.0% N/A
7.7 - Acquisition and ownership of
buildings
165,868 81.3% 0.0% N/A
B. Taxonomy non-Eligible activities 3,231 1.6%
Additions of intangible assets related
to IT software and IT development
2,654 1.3%
Additions of PP&E related to equipment
& company cars
577 0.3%
A+B Total CapEx 204,118 100.0% 17.2% n.a.
Substantial contribution
Do not significant harm
SHURGARD ANNUAL REPORT 2022
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Shurgard specific interpretation / application:
We considered in the EU Taxonomy OpEx KPI that all direct expenses related to searching,
acquiring, and developing our portfolio of properties are part of the “direct non-capitalized costs
that relate to research and development” (“R&D”) referred to in the definition. We excluded indirect
costs such as travel expenses, and included all direct employee benefits, accounted for in line with
IAS 19.
Even though they are not specifically mentioned in the definition, we also included R&D and repair
and maintenance related to our intangible assets in the denominator, in line with guidance issued
by the EU Commission, explaining that “(…) maintenance and repair or other direct costs could be
also relevant for intangible assets (e.g., right-of-use assets, software)”.
We excluded most property linked costs that are not necessary to ensure their continued and
effective functioning. These costs are usually associated with our operations (e.g., real estate taxes,
marketing expenses, utilities, etc.).
Most expenses in scope for the OpEx KPI can be directly linked to individual assets. However, for
some specific expenses we used allocation keys to spread the cost on the relevant assets.
In line with the EU Taxonomy OpEx definition, the following operating expenses were considered for the
denominator:
The non-capitalized employee compensation and benefits expenses, including share-based
compensations, of our personnel directly related to research and development, maintenance and
repair, and other direct expenses related to the day-to-day servicing of our assets.
Repair and maintenance expenses, excluding specific expenses that are not directly necessary to
the day-to-day servicing of our properties and are rather associated with our operating activity
(e.g., snow removal, carpets, trash collection, etc.). Other operating expenses include mainly IT
related contracts, non-capitalized IT development expenses, real estate lawyer fees, outsourced
architecture, design or engineering services, and non-capitalized office equipment.
SHURGARD ANNUAL REPORT 2022
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Based on the above, we concluded that 76.0% of the total EU Taxonomy OpEx is eligible. The non-eligible
activities relate to expenses that are not directly related to the acquisition and ownership of buildings (e.g.
intangible assets, office equipment, general and administrative tasks, etc.).
We reviewed the substantial contribution of the eligible OpEx against the technical screening criteria, and their
compliance with the “Do no significant harm” principles. 30.4% of our OpEx was assessed as aligned with the
Climate Change Mitigation objective.
Summary
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GRI CONTENT INDEX
Our sustainability reporting has been prepared with reference to the guidelines developed by the Global
Reporting Initiative (GRI). This content index demonstrates our alignment with the General Disclosures and Topic-
Specific Standards for the Priority 1 material topics that were identified following our most recent materiality
review in 2022.
The index is attached as an appendix, available on our investor relations website or upon request.
GRI 1-7
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132
EPRA PERFORMANCE MEASURES
Shurgard reports the Company’s sustainability indicators based on EPRA’s (European Public Real Estate
Association) latest recommendations: Best Practice Recommendations on Sustainability Reporting, third version
September 2017.
OVERARCHING RECOMMENDATIONS
ORGANIZATIONAL BOUNDARY
Shurgard limits its report to properties controlled by Shurgard (operational control) in accordance with the
principles of the Greenhouse Gas Protocol. This includes all real estate assets owned or managed by Shurgard.
Data is reported for our storage center portfolio and separately for our own occupied offices.
Operational control has been chosen since it provides Shurgard with the best conditions for demonstrating
statistics and data that Shurgard can directly influence.
COVERAGE
Shurgard works actively to access relevant data for the properties that Shurgard owns and manages. Having
access to data is important to Shurgard, as the information creates conditions for efficient and sound technical
management of the buildings. The proportion of properties included in each indicator is mentioned in connection
with respective key indicators.
Measurement data is affected by changes in the portfolio – i.e., recently purchased, sold and project properties
– which complicate access to relevant data. Shurgard constantly strives to access all relevant data as
comprehensively as possible. We commit to reporting on progress annually.
ESTIMATIONS OF DATA
In order to meet Annual Report deadlines, all environmental data under measured indicators has been estimated
for the last three months in 2022 i.e., October 1, 2022 to December 31, 2022. To fill this quarter’s data, we have
used the following estimation methodology:
1. Where full data was available for the previous year, we have scaled the observed data from the
corresponding period in 2021 by the percentage change observed between the known data in the two
years.
2. Where there was insufficient previous data to employ this method, we have used the average
consumption per day from 2022 to fill out the unknown periods (only where at least 180 days of actual
data is available).
3. Where insufficient data is available for either of these methods, the property has been excluded from
reporting.
This method is used for Q4 estimation to ensure that the estimates produced are in line with the trends observed
in the first three quarters of data. In addition, due to the availability of invoices for consumption data, some data
in the first three quarters is filled in by our energy managers using supplier forecasts. In previous years we have
not included this data as being estimated, as the information is sourced from our energy suppliers.
SHURGARD ANNUAL REPORT 2022
133
We have updated this methodology in this report, so that forward projections by both Shurgard and our energy
suppliers are counted as estimated data. This is to set ourselves a higher standard for data quality and provide
a baseline which will demonstrate the effect of our smart metering projects.
Where newly acquired assets have entered the portfolio and accurate meter readings are not able to be obtained
straight away, we have calculated back dated estimates of an initial meter reading based on pro rata estimates
of actual meter reading data after this time. We have only back dated these estimates to the date that the asset
became Shurgard’s responsibility if less than a year prior to the first available meter reading, or the beginning of
the current reporting year if the acquisition date is more than a year before the first available actual meter
reading.
THIRD PARTY VERIFICATION/ASSURANCE
This report has been independently assured by a third-party, IHS Markit. The assurance statement can be found
at the end of this report.
IHS Markit is a world leader in critical information, analytics and expertise to forge solutions for the major
industries and markets that drive economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and government, improving their operational efficiency
and providing deep insights that lead to well-informed, confident decisions. In February 2022, IHS Markit has
become a part of S&P Global, one of the leaders in providing financial and non-financial information and
analytics.
CHANGES SINCE LAST YEAR'S REPORT
In order to meet last year’s Annual Report deadlines, all environmental data under measured indicators were
estimated for the last three months in 2021. Shurgard now possesses the data for the entire calendar year. As
such, there is a difference between 2021 figures reported in last year’s report and 2021 figures reported below,
which now consists of a full year of actual data.
In addition, there has been a change in our methodology for classifying data as estimated, which we have applied
retrospectively to the previous years of data included in this report. The reasons for this are explained above in
the section ‘Estimations of Data’.
NORMALIZATION
Shurgard calculates energy and water intensity ratios by dividing by the buildings’ floor area. This is the most
widely accepted method in Europe for a self-storage facility to compare energy utilization and resource
consumption.
SEGMENTAL ANALYSIS (BY PROPERTY TYPE, GEOGRAPHY)
Segmental analysis is conducted by property type. The Shurgard portfolio consists of only one building type –
self-storage properties.
We operate in seven different countries – all located in the European Union and UK. We have chosen not to
perform segmental analysis at country level in this report, but this granularity is available upon request.
We do report on the split of our energy labels (EPCs) and green building certifications (BREEAM) by rating.
SHURGARD ANNUAL REPORT 2022
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DISCLOSURE ON OWN OFFICES
Disclosure on performance for our office occupation is reported separately. Shurgard has a European Support
Center office where it is the landlord, located in Brussels, next to our Groot-Bijgaarden store. The European
Support Center has a floor space of 1,518 sqm and approximately 90 employees work there.
LOCATION OF EPRA SUSTAINABILITY PERFORMANCE IN COMPANIES’ REPORTS
This document is a supplement within the Annual Report, available on Shurgard’s official website.
NARRATIVE ON PERFORMANCE
Where appropriate, we have provided a narrative on our performance alongside the relevant performance
measures in this document.
REPORTING ON LANDLORD AND TENANT CONSUMPTION
Due to the nature of the self-storage business model, Shurgard do not have any ‘tenants’ - as such all utilities
are the responsibility of the landlord i.e., Shurgard. Shurgard does have ‘customers’ - those that use the portfolio
to store belongings - but these are not responsible for any utility consumption.
REPORTING PERIOD
Reporting for each year accounted for in the EPRA table refers to the calendar year, e.g., January 1, 2022 to
December 31, 2022.
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135
ENVIRONMENTAL SUSTAINABILITY PERFORMANCE MEASURES
The table below provides an overview of the EPRA sustainability performance measures that Shurgard is able to
report on, and an explanation of where data cannot be reported. It also provides an index of the GRI Topic
Standards which these metrics have been disclosed with reference to.
GRI
Topic
Standard
EPRA sBPR
Measure
ENVIRONMENTAL PERFORMANCE MEASURES
Storage
assets
Own
offices
Pages
302
Elec-Abs
Total electricity consumption
68-75
302
Elec-LfL
Like-for-like total electricity consumption
68-75
302
DH&C-Abs
Total district heating & cooling consumption
N/A
68-75
302
DH&C-LfL
Like-for-like total district heating & cooling consumption
N/A
68-75
302
Fuels-Abs
Total fuel consumption
N/A
68-75
302 Fuels-LfL Like-for-like total fuel consumption
N/A 68-75
302
Energy-Int
Building energy intensity
68-75
305
GHG-Dir-
Abs
Total direct greenhouse gas (GHG) emissions
N/A 68-75
305
GHG-Indir-
Abs
Total indirect greenhouse gas (GHG) emissions
68-75
305 GHG-Int
Greenhouse gas (GHG) intensity from building energy
consumption
68-75
303
Water-Abs
Total water consumption
142
303
Water-LfL
Like-for-like total water consumption
142
303
Water-Int
Building water intensity
142
306
Waste-Abs
Total weight of waste by disposal route
144
306
Waste-LfL
Like-for-like total weight of waste by disposal route
144
n/a
Cert-Tot
Type and number of sustainably certified assets
×
152
Key:
Fully reported Partially reported –
Not reported × Not applicable N/A
SHURGARD ANNUAL REPORT 2022
136
METHODOLOGY
We have reported on all EPRA Sustainability Performance Measures, using the EPRA Best Practices
Recommendations on Sustainability Reporting 3rd Version, the main requirements of the GHG Protocol Corporate
Standard (revised edition) and emissions factors from country-specific, best practice conversion factors for the
appropriate year, such as the UK Government’s Conversion Factors for Company Reporting 2020 and 2021. At the
time of report production, the International Energy Agency conversion factors relating to 2019 have been applied
to both 2021 and 2022 data for relevant countries.
We have used the GHG Protocol’s location-based methodology for conversion factors for Scope 2 emissions and
have also reported market-based emissions to demonstrate the effect of green procurement.
Greenhouse gas emissions are reported as metric tons CO
2 equivalent (tCO2e) and greenhouse gas intensity is
reported as kilograms of CO
2 equivalent per square meter of Gross Internal Area (kgCO2e/sqm).
Like-for-like measures cover those assets held for the full two-year period from January 1, 2021 to December 31,
2022, for which we have at least two full quarters of actual data in each year (under our updated methodology
for classifying this). We also exclude from these measures any newly acquired assets or assets where a building
extension has been added, or stores that have been temporary closed. Stores opened in 2022 were therefore
excluded from the like-for-like measures. These were all included in the absolute measures.
Any further exclusions from absolute and like-for-like measures have been reported in the data notes
accompanying the EPRA tables.
Applicable properties refer to the number of properties within our organizational boundaries for this indicator.
The absolute performance measures are each reported in two sections, one for the own office occupation and
one for owned assets. “Own office” refers to our European Support Center located in Groot-Bijgaarden, near
Brussels, Belgium. “Owned assets” refers to our storage properties.
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SOCIAL AND GOVERNANCE SUSTAINABILITY PERFORMANCE MEASURES
We report on all Social and Governance Performance Measures. The EPRA sBPR compliance table below provides an overview of the EPRA sustainability performance measures
that Shurgardreports on, and an explanation of where data cannot be reported.
GRI Topic
Standard
EPRA sBPR
Measure
SOCIAL PERFORMANCE MEASURES
Storage
assets
Corporate
Own office
occupation
Pages
405
Diversity-Emp
Employee gender diversity
N/A
N/A
154
405
Diversity-Pay
Gender pay ratio
N/A
N/A
154
405
Diversity-Pay
Equal pay analysis
N/A
N/A
154
404
Emp-Training
Employee training and development
N/A
N/A
154
404
Emp-Dev
Employee performance appraisals
N/A
N/A
154
401
Emp-Turnover
New hires and turnover
N/A
N/A
156
403 H&S-Emp Employee health and safety N/A
N/A 157
416
H&S-Asset
Asset health and safety assessments
N/A
157
416
H&S-Comp
Asset health and safety compliance
N/A
157
413
Comty-Eng
Community engagement, impact assessments and development programs
N/A
158
GRI Topic
Standard
EPRA sBPR
Measure
GOVERNANCE PERFORMANCE MEASURES
Storage
assets
Corporate
Own office
occupation
Pages
2-9
Gov-Board
Composition of the highest governance body
N/A
N/A
158
2-10
Gov-Selec
Process for nominating and selecting the highest governance body
N/A
N/A
159
2-15
Gov-CoI
Process for managing conflicts of interest
N/A
N/A
161
SHURGARD ANNUAL REPORT 2022
138
ENVIRONMENTAL PERFORMANCE MEASURES
ABSOLUTE ENERGY MEASURES
2022
2021
2020
GRI Topic
Standard
EPRA
sBPR
Code
Metric
Absolute
Value
%
Estimated
Coverage
YoY
Trend
Absolute
Value
%
Estimated
Coverage
YoY
Trend
Absolute
Value
%
Estimated
Coverage
Own Offices
302-1
Elec-
Abs
Consumption 50.8 50.8% 1 of 1 3.4% 49.1 20.5% 1 of 1 -2.4% 50.3 25.0% 1 of 1
% Renewable 100.0% 1 of 1 0.0% 100.0% 1 of 1 0.0% 1 of 1
(Sub)metered
exclusively to
tenants
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0% 0 of 0 0.0%
302-1 Energy
Total energy
consumption
50.8 50.8% 1 of 1 3.4% 49.1 20.5% 1 of 1 -2.4% 50.3 25.0% 1 of 1
302-3
Energy
-Int
Energy
intensity
33.5 1 of 1 3.4% 32.4 1 of 1 -2.4% 33.2 1 of 1
Owned Assets
302-1
Elec-
Abs
Consumption
18,835.8 55.5% 259 of 259 -4.2% 19,666.0 34.1% 253 of 253 -1.7% 20,006.5 23.6% 243 of 243
% Renewable 100.0% 259 of 259 0.0% 100.0% 253 of 253 0.0% 243 of 243
(Sub)metered
exclusively to
tenants
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0% 0 of 0 0.0%
302-1
DH&C
-Abs
Consumption
2,437.0 51.1% 36 of 36 -15.0% 2,868.0 28.4% 36 of 36 16.8% 2,456.0 42.0% 36 of 36
% Renewable 0.0% 36 of 36 0.0% 36 of 36 0.0% 36 of 36
(Sub)metered
exclusively to
tenants
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0% 0 of 0 0.0%
302-1
Gas-
Abs
Consumption
8,776.2 85.0% 108 of 108 -0.4% 8,810.2 66.1% 112 of 112 -1.0% 8,903.1 74.2% 134 of 134
% Renewable 72.7% 108 of 108 12.0% 64.9% 112 of 112 0.0% 134 of 134
(Sub)metered
exclusively to
tenants
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0% 0 of 0 0.0%
302-1 Energy
Total energy
consumption
30,049.0 63.7% 259 of 259 -4.1% 31,344.2 42.6% 253 of 253 -0.1% 31,365.7 0.0% 243 of 243
302-3
Energy
-Int
Energy
intensity
19.6 259 of 259 -12.7% 22.5 253 of 253 -10.8% 25.2 243 of 243
SHURGARD ANNUAL REPORT 2022
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Data notes for absolute energy: All reported energy totals are in MWh, and energy intensity is reported in kWh/sqm GIA. We have been able to report fuel consumption for all
108 properties for which we purchase fuels and 36 properties for which we purchase district heating. We have also been able to report electricity data for all 259 properties. Please
note that Shurgard does not have any tenants, so tenant consumption is zero.
Narrative on performance for OT absolute energy: Total Shurgard obtained electricity for stores has decreased by 4.2%, reflecting the effect of our roll-out of energy efficiency
measures such as our LED program. Shurgard obtained consumption of district heating has decreased by 15.0%, which represents a reversion to 2020 consumption levels after
an increase in consumption last year. Consumption of gas decreased slightly by 0.4% but has remained fairly constant across the reported years. This consumption can be expected
to decrease as electric heating systems are installed to replace gas heating across our portfolio.
GRI 302-1 / 302-3
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ABSOLUTE GHG EMISSIONS MEASURES
2022
2021
2020
GRI Topic
Standard
EPRA sBPR
Code
Metric
Absolute
Value
Coverage YoY Trend
Absolute
Value
Coverage YoY Trend
Absolute
Value
Coverage
Own Offices
305-2
GHG-Indir-
Abs
Scope 2 Emissions
(Location Based)
8.4 1 of 1 3.4% 8.2 1 of 1 -19.0% 10.1 1 of 1
Scope 2 Emissions
(Market Based)
0.0 1 of 1 0.0 1 of 1 -100.0% 7.1 1 of 1
305-4 GHG-Int Scope 1+2 intensity 5.6 1 of 1 3.4% 5.4 1 of 1 -19.0% 6.6 1 of 1
Owned Assets
305-1
GHG-Dir-
Abs
Scope 1 Emissions
(Location Based)
2,095.4 108 of 108 -0.9% 2,114.4 112 of 112 -0.7% 2,128.8 134 of 134
Scope 1 Emissions
(Market Based)
564.6 108 of 108 -24.0% 742.9 112 of 112 -65.1% 2,128.8 134 of 134
305-2
GHG-Indir-
Abs
Scope 2 Emissions
(Location Based)
3,695.6 259 of 259 -5.1% 3,894.0 253 of 253 -10.3% 4,341.8 243 of 243
Scope 2 Emissions
(Market Based)
589.0 259 of 259 -14.7% 690.4 253 of 253 -84.1% 4,341.8 243 of 243
n/a GHG
Scope 1+2 Emissions
(Location Based)
5,791.0 259 of 259 -3.6% 6,008.5 253 of 253 -7.1% 6,470.6 243 of 243
Scope 1+2 Emissions
(Market Based)
1,153.6 259 of 259 -19.5% 1,433.3 253 of 253 -77.8% 6,470.6 243 of 243
305-4 GHG-Int
Scope 1+2 intensity
(Location Based)
3.8 259 of 259 -12.2% 4.3 253 of 253 -17.1% 5.2 243 of 243
Scope 1+2 intensity
(Market Based)
0.8 259 of 259 -26.7% 1.0 253 of 253 -80.2% 5.2 243 of 243
Data notes for Scope 1 and 2 GHG emissions: All total emissions numbers are reported in tCO2e, and GHG intensity is reported in kgCO2e/sqm GIA. We have been able to report
scope 1 GHG emissions for all 108 properties for which we purchase fuels. We have also been able to report scope 2 GHG emissions data for 259 of 259 properties, which includes
the 36 properties for which we purchase district heating. Please note that Shurgard does not have any tenants, so tenant emissions are zero and therefore not reported in this
table. Please see the paragraph ‘Reporting on Landlord and Tenant Consumption’ in our ‘Overarching Recommendations’ section.
SHURGARD ANNUAL REPORT 2022
141
Narrative on performance for absolute GHG emissions: Total Shurgard obtained Scope 1 GHG emissions have decreased slightly by 0.9%, as we begin to replace gas heating
systems across our portfolio. In 2021, Shurgard adopted green gas contracts, procured from 100% renewable sources, for all of its stores in the two highest demand markets
(Germany and the Netherlands). We have continued to expand this green procurement program, and so under the market-based approach our Scope 1 emissions have decreased
by a further 24.0%. Shurgard obtained Scope 2 (location-based) emissions have reduced by 5.1%, due to a reduction in absolute energy consumption. In 2021 Shurgard adopted
zero carbon electrical supply contracts at all stores, procured from 100% renewable sources. Consequently, under the market-based approach we have zero Scope 2 emissions
from our electricity, and only our indirect emissions from district heating are included.
GRI 305-1 / 305-2 / 305-4
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ABSOLUTE WATER MEASURES
2022
2021
2020
GRI
Topic
Standard
EPRA
sBPR
Code
Metric
Absolute
Value
%
Estimated
Coverage
YoY
Trend
Absolute
Value
%
Estimated
Coverage
YoY
Trend
Absolute
Value
%
Estimated
Coverage
Own Offices
303-5
Water-
Abs
Shurgard-
obtained
water
85.9 44.0% 1 of 1 -35.5% 133.1 25.6% 1 of 1 -9.4% 146.9 100.0% 1 of 1
Tenant-
obtained
water
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0 0.0% 0 of 0
Total-
obtained
water
85.9 44.0% 1 of 1 -35.5% 133.1 25.6% 1 of 1 -9.4% 146.9 100.0% 1 of 1
303-5
Water-
Int
Water
intensity
for -total
obtained
water
0.057 1 of 1 -35.5% 0.088 1 of 1 -9.4% 0.097 1 of 1
Owned Assets
303-5
Water-
Abs
Shurgard-
obtained
water
30,149.3 67.5% 259 of 259 4.4% 28,882.6 49.0% 253 of 253 11.3% 25,939.9 64.5% 243 of 243
Tenant-
obtained
water
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0 0.0 0.0% 0 of 0
Total-
obtained
water
30,149.3 67.5% 259 of 259 4.4% 28,882.6 49.0% 253 of 253 11.3% 25,939.9 64.5% 243 of 243
303-5
Water-
Int
Water
intensity
for- total
obtained
water
0.020 259 of 259 -5.0% 0.021 253 of 253 -0.6% 0.021 243 of 243
Data notes for absolute water: Water consumption is reported in m
3
, and water intensity is reported in cbm/sqm GIA (Gross Internal Area). We have been able to report water
usage for all 259 properties for which we purchase water. Please note that Shurgard does not have any tenants, so tenant consumption is zero.
SHURGARD ANNUAL REPORT 2022
143
Narrative on performance for absolute water: All water is municipal potable water discharged from taps in the communal areas of Shurgard properties. There is minimal landlord
obtained water across Shurgard’s portfolio and as the business does not operate in water-stressed locations, water consumption is not considered material. Total Shurgard
obtained water has increased due to the opening of 14 new properties in 2021 and 3 new properties in 2022. Water intensity has decreased by 5.0% in this time, indicating that
overall water efficiency has improved when normalizing for the increase in floor area. However, we are continuing to investigate the increase in consumption reflected in the data
above, and plan to install smart metering and leak detection in 2023 in order to better monitor and control our usage.
GRI 303-5
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ABSOLUTE WASTE MEASURES
2022
2021
2020
GRI Topic
Standard
EPRA
sBPR
Code
Metric
Absolute
Value
Absolute
Proportion
YoY
Trend
Absolute
Value
Absolute
Proportion
YoY Trend
Absolute
Value
Absolute
Proportion
Own Offices
306-4
Waste-
Abs
Recycled
3.8 46.8% -63.6% 10.5 52.2% -28.1% 14.6 52.5%
306-5
Incinerated (with and
without energy recovery)
4.3 53.2% -54.8% 9.6 47.8% -27.3% 13.2 47.5%
306-5
Landfill (non-hazardous)
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-5
Hazardous Waste
Treatment
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-4
Materials Recovery Facility
- Unknown
0.0 0.0% 0.0 0.0% 0.0 0.0%
Total tenant-obtained
waste
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-3
Total
8.2
100.0%
-59.4%
20.1
100.0%
-27.7%
27.8
100.0%
Coverage of applicable
properties
1 of 1 1 of 1 1 of 1
Owned Assets
306-4
Waste-
Abs
Recycled
939.3
48.1%
19.4%
786.5
35.0%
12.7%
697.9
29.0%
306-5
Incinerated (with and
without energy recovery)
1,012.4 51.9% 10.0% 920.4 40.9% 23.4% 746.2 31.0%
306-5
Landfill (non-hazardous)
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-5
Hazardous Waste
Treatment
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-4
Materials Recovery Facility
- Unknown
0.7 0.0% -99.9% 541.1 24.1% -43.7% 960.3 39.9%
Total tenant-obtained
waste
0.0 0.0% 0.0 0.0% 0.0 0.0%
306-3
Total
1,952.4
100.0%
-13.1%
2,247.9
100.0%
-6.5%
2,404.4
100.0%
Coverage of applicable
properties
259 of
259
253 of 253 242 of 242
SHURGARD ANNUAL REPORT 2022
145
Data notes for absolute waste: All waste totals are reported in tons. Waste for the final quarter, October 1, 2022 to December 31, 2022, has been estimated. Please note that
Shurgard does not have any tenants, so tenant waste is zero.
Narrative on performance for absolute waste: Waste data is gathered for all 259 properties in the portfolio where Shurgard has waste management contracts. Absolute waste
has decreased by 13.1%. One factor behind the reduction in overall waste volumes has been the removal of customer waste facilities from our properties. Total volumes of absolute
recycled waste have increased by 19.4%, as minimum standards are in place to ensure that all cardboard at stores is recycled, along with plastic use being minimized.
Waste going to hazardous waste treatment facilities has been completely phased out, and our record of 100% landfill diversion was maintained. Where actual waste data was not
available from the supplier, estimates of tonnages have been based on the volume, frequency and type of waste being collected dependent on country specific available conversion
factors.
GRI 306-3 / 306-4 / 306-5
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146
LIKE-FOR-LIKE ENERGY MEASURES
2022 2021
GRI Topic
Standard
EPRA sBPR
Code
Metric
Like-for-Like
Value
% Estimated Coverage YoY Trend
Like-for-Like
Value
% Estimated Coverage
Owned Assets
302-1
Elec-Abs
Consumption
8,767.2 45.9% 97 of 97 -5.5% 9,278.3 21.7% 97 of 97
% Renewable 100.0% 97 of 97 0.0% 100.0% 97 of 97
(
S
ub)metered exclusively
to tenants
0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0
302-1 DH&C-Abs
Consumption
1,815.7 38.6% 23 of 23 -10.8% 2,036.6 10.5% 23 of 97
% Renewable 0.0% 23 of 23 0.0% 23 of 97
(
S
ub)metered exclusively
to tenants
0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0
302-1 Gas-Abs
Consumption
735.6 30.9% 11 of 11 -16.1% 877.0 2.5% 11 of 97
% Renewable 2.9% 11 of 11 -81.5% 15.5% 11 of 97
(
S
ub)metered exclusively
to tenants
0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0
302-1 Energy
Total energy
consumption
11,318.4 43.8% 97 of 97 -7.2% 12,191.9 18.5% 97 of 97
302-3 Energy-Int Energy intensity 20.9 97 of 97 -7.2% 22.5 97 of 97
Data notes for like-for-like energy: All reported energy totals are in MWh, and energy intensity is reported in kWh/sqm GIA. Under the new classification of estimated data (see
methodology section), we have included 97 properties in our like-for-like energy reporting. These are those properties which have been owned and operated by Shurgard for the
complete 24-month period and for which the majority is classified as actual data. We therefore include electricity data from all 97 of these properties, as well as gas data for the
11 properties and district heating data for the 23 properties within this pool which use these utilities.
SHURGARD ANNUAL REPORT 2022
147
Note that here and throughout the like-for-like performance measures we do not include our own office figures, as these would duplicate the absolute figures for this single
location.
Please note that Shurgard does not have any tenants, so tenant consumption is zero.
Narrative on performance for like-for-like energy and energy intensity: Like-for-like electricity has fallen by a similar percentage to the trend observed across the whole
portfolio, due to continuing installation of efficiency measures. Gas consumption has decreased by 16.1% within the like-for-like portfolio, reflecting the impact of our efficiency
measures and gas replacement program. Almost all our stores with district heating systems fall into the like-for-like group, so the trend displayed here is the same as that in the
absolute data.
We have used the floor area of assets under management as our intensity normalization measure. Our like-for-like energy intensity has fallen year-on-year, driven by electricity
efficiency measures and reduced dependence on district heating systems.
GRI 302-1 / 302-3
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148
LIKE-FOR-LIKE GHG EMISSIONS MEASURES
2022 2021
GRI Topic
Standard
EPRA sBPR
Code
Metric
Like-for-Like Value Coverage YoY Trend Like-for-Like Value Coverage
Owned Assets
305-1 GHG-Dir-Abs
Scope 1 Emissions (Location Based) 165.7 11 of 11 -21.3% 210.5 11 of 97
Scope 1 Emissions (Market Based) 160.6 11 of 11 -9.7% 177.9 11 of 97
305-2
GHG-Indir-
Abs
Scope 2 Emissions (Location Based)
1,282.7 97 of 97 -7.5% 1,386.8 97 of 97
Scope 2 Emissions (Market Based) 448.6 97 of 97 -10.9% 503.2 97 of 97
n/a GHG
Scope 1+2 Emissions (Location Based)
1,448.4 97 of 97 -9.3% 1,597.3 97 of 97
Scope 1+2 Emissions (Market Based) 609.3 97 of 97 -10.5% 681.1 97 of 97
305-4 GHG-Int
Scope 1+2 intensity (Location Based)
2.7 97 of 97 -9.3% 2.9 97 of 97
Scope 1+2 intensity (Market Based) 1.1 97 of 97 -10.5% 1.3 97 of 97
Data notes for like-for-like GHG emissions: All total emissions numbers are reported in tCO2e, and GHG intensity is reported in kgCO2e/sqm GIA. This table covers the same 97
properties included in our like-for-like reporting for energy, 11 of which use gas and therefore report Scope 1 Emissions. Please note that Shurgard does not have any tenants, so
tenant emissions are zero and therefore not reported in this table. Please see the paragraph ‘Reporting on Landlord and Tenant Consumption’ in our ‘Overarching Recommendations’
section.
Narrative on performance for GHG emissions intensity: We have used the floor area of assets under management as our intensity normalization measure. The overall trend in
like-for-like emissions measures is similar to that observed for the absolute portfolio. It should be noted that, given the nature of our properties, these Scope 1+2 intensities are
already very low, so year-on-year percentage changes correspond to very small differences in the actual GHG intensity of our portfolio.
GRI 305-1 / 305-2 / 305-4
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LIKE-FOR-LIKE WATER MEASURES
2022 2021
GRI Topic
Standard
EPRA
sBPR Code
Metric Like-for-Like Value % Estimated Coverage YoY Trend Like-for-Like Value
% Estimated Coverage
Owned Assets
303-5
Water
-
Abs
Shurgard-obtained water
10,969.7 49.4% 75 of 75 -17.1% 13,229.7 26.7% 75 of 75
Tenant-obtained water
0.0 0.0% 0 of 0 0.0 0.0% 0 of 0
Total obtained water
10,969.7 49.4% 75 of 75 -17.1% 13,229.7 26.7% 75 of 75
303-5 Water-Int
Water intensity for total
obtained water
0.027 75 of 75 -17.1% 0.032 75 of 75
Data notes for like-for-like water: Water consumption is reported in cbm, and water intensity is reported in cbm/sqm GIA. The 75 assets included are those properties which
have been owned and operated by Shurgard for the complete 24 months’ period and for which the majority is classified as actual data. We will expand the coverage of this measure
in 2023 with the installation of smart water-metering across our portfolio. Please note that Shurgard does not have any tenants, so tenant consumption is zero.
Narrative on performance for like-for-like water: All water is municipal potable water discharged from taps in the communal areas of Shurgard properties. There is minimal
landlord obtained water across Shurgard’s portfolio and as the business does not operate in water-stressed locations, water consumption is not considered material. The decrease
in water consumption shown in this subset demonstrates that the increase across the whole portfolio does not reflect the performance of all assets and is skewed by a handful of
anomalies. We have begun to install smart metering and leak detection systems across our portfolio, which will continue in 2023, in order to better monitor and control our usage.
GRI 303-5
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LIKE-FOR-LIKE WASTE MEASURES
2022
2021
GRI Topic
Standard
EPRA sBPR
Code
Metric
Like-for-Like Value
Like-for-Like
Proportion
YoY Trend
Like-for-Like
Value
Like-for-Like
Proportion
Owned Assets
306-4
Waste-Abs
Recycled
895.7 47.8% 17.9% 759.7 35.2%
306-5
Incinerated (with and
without energy recovery)
979.4 52.2% 7.4% 912.1 42.2%
306-5
Landfill (non-hazardous)
0.0 0.0% 0.0 0.0%
306-5
Hazardous Waste Treatment
0.0 0.0% 0.0 0.0%
306-4
Materials Recovery Facility -
Unknown
0.0 0.0% -100.0% 488.0 22.6%
Tenant-obtained waste
0.0 0.0% 0.0 0.0%
306-3
Total 1,875.1 100.0% -13.2% 2,159.9 100.0%
Coverage of applicable
properties
251 of 251 251 of 251
Data notes for like-for-like waste: All waste totals are reported in tons. Waste for the final quarter, October 1, 2022 to December 31, 2022, has been estimated. Please note that
Shurgard does not have any tenants, so tenant waste is zero.
Narrative on performance for like-for-like waste: Like-for-like waste data is gathered for 251 properties in the portfolio where Shurgard has waste management contracts. Like-
for-like waste has decreased by 13.2%, reflecting our initiatives to continuously reduce and manage waste in our properties. Total volumes of like-for-like recycled waste have
increased by 17.9%, as minimum standards are in place to ensure that all cardboard at stores is recycled, along with plastic use being minimized.
SHURGARD ANNUAL REPORT 2022
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Waste going to hazardous waste treatment facilities has been completely phased out, and our record of 100% landfill diversion was maintained. Where actual waste data was not
available from the supplier, estimates of tonnages have been based on the volume, frequency and type of waste being collected dependent on country specific available conversion
factors.
GRI 306-3 / 306-4 / 306-5
SHURGARD ANNUAL REPORT 2022
152
TYPE AND NUMBER OF SUSTAINABLY CERTIFIED ASSETS
2022
2021
2020
GRI
Topic
Standar
d
EPRA
sBPR
Code
Certification Level
No. of
Certified
Stores
Percentage
of portfolio
certified (by
floor area)
No. of
Certified
Stores
Percentage
of portfolio
certified (by
floor area)
No. of
Certified
Stores
Percentage of
portfolio
certified (by
floor area)
n/a Cert-Tot
EU Energy Perfomance
Certificate
260 97.8% 254 98.5% 7 2.7%
BREEAM - In Use
Pass
17 8.0% 12 6.1% 10 4.6%
Good
20 8.5% 20 9.3% 15 6.2%
Very Good
7 4.0% 6 4.6% 3 2.0%
Excellent
2 0.9% 0 0.0% 0 0.0%
Outstanding
0 0.0% 0 0.0% 0 0.0%
BREEAM – New Construction
Pass
0 0.0%
0
0.0%
0 0.0%
Good
0 0.0%
0
0.0%
0 0.0%
Very Good
3 1.9%
1
0.7%
1 0.7%
Excellent
7 4.6%
6
4.1%
5 3.7%
Outstanding
1 0.6%
1
0.6%
1 0.6%
EU ENERGY PERFORMANCE CERTIFICATES 2022
EPC Score A+ A B C D E F G N/A
Number of Assets 5 206 10 23 15 0 0 1
6
% of portfolio (by
floor area)
2.8% 77.9% 4.2% 7.4% 5.1% 0.0% 0.0% 0.4% 2.2%
SHURGARD ANNUAL REPORT 2022
153
Narrative on performance for green building certificates: EU energy performance certificates are not mandatory for all of Shurgard's properties, because they are only mandatory
for buildings which are marketed or sold, or those that have been recently constructed. As Shurgard holds assets long-term this is not a material aspect, however, to better
understand the portfolio makeup energy performance certificates have been obtained for the entire portfolio in 2021 and continue to be obtained for new properties.
Shurgard recognizes the benefits of green building certification and seeks to increase the percentage coverage year-on-year. We focus on pursuing BREEAM (Building Research
Establishment Environmental Assessment Method) certification, with the goal to obtain BREEAM certificates at all new constructions wherever possible. Further properties have
been entered for BREEAM certification but have not yet had their certification finalized as of the compilation of this report.
SHURGARD ANNUAL REPORT 2022
154
SOCIAL PERFORMANCE MEASURES
Note that our CEO has two functions: one as Board member and one as Senior
Management. In order to avoid double count, the CEO has been excluded from the
Senior Management level’s social performance measures.
EMPLOYEE GENDER DIVERSITY
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2022
2021
Female
Male
Female
Male
405-1
Diversity-
Emp
Employees in the
organization’s
Board
of Directors
27.3% 72.7% 27.3% 72.7%
Employees in the
organization’s
senior
management
25.0% 75.0% 25.0% 75.0%
All employees 42.3% 57.7% 40.0% 60.0%
Narrative on performance:
Shurgard believes that a diverse perspective is key to success. Our current female
representation on the Board stands at 27.3%. We are committed to have 4 female
Board members by 2024, increasing the gender diversity ratio.
GRI 405-1
GENDER PAY RATIO
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2022
2021
Mean
Mean
405-2 Diversity-Pay
Mean (average) percentage by
which female pay is lower than
male pay.
-5.0% -2.4%
Narrative on performance:
For all in-store employees, Shurgard discloses the mean percentage pay gap between
female and male pay.
GRI 405-2
In 2022, Shurgard reported no significant change in the business’ mean gender pay
gap. We believe that this is reflective of our continual commitment to maintaining a
workplace that is free from discrimination.
EQUAL PAY ANALYSIS 2022
Employee Level
Average Salary Female Average Salary Male
Executive level (base salary only) €320,000 €299,618
Executive level (base salary + other cash
incentives)
€427,000 €597,374
Management level (base salary only) €86,015 €81,986
Management level (base salary + other
cash incentives)
€106,735 €112,625
Data notes for equal pay analysis 2022: Executive level functions include all Senior
Management, with the exception of the CEO position. Management level functions
include all positions with people management responsibilities.
Narrative on performance for equal pay analysis 2022:
We believe that our salary paid is reflective of our continued commitment to maintain
a workplace that is free from discrimination.
We anticipate that future reporting will demonstrate a more equal balance.
GRI 405-2
SHURGARD ANNUAL REPORT 2022
155
GENDER PAY RATIO FOR DIRECTORS AND EMPLOYEES
GRI Topic
Standard
EPRA
sBPR
Measure
Indicator
Mean (average) percentage by which
female pay is lower than male pay
2022 2021
405-2
Diversity-
Pay
Employees in the
organization’s
Board of
Directors
-8.3%
-3.4%
Employees in the
organization’s
Senior
Management
6.3%
8.6%
All employees
-15.1% -10.7%
Narrative on performance for gender pay ratio for directors and employees:
Shurgard discloses the mean percentage pay gap between female and male pay for
three levels of employees. Shurgard’s remuneration policy makes no difference
between female and male functions, therefore, all differences are mandate specific.
GRI 405-2
EMPLOYEE TRAINING & DEVELOPMENT
GRI
Topic
Standard
EPRA
sBPR
Measure
Indicator
2022 2021
404-1
Emp-
Training
Average hours of training
undertaken by employees in the
reporting period (per employee)
254 68
404-3
Emp-
Dev
% of total employees who
received regular performance
and career development reviews
during the reporting period
100.0% 93.0%
N/A
Average spent on training per
FTE in the reporting period
€ 177 € 210
N/A
Total of hours of training
undertaken by all employees in
the reporting period (overall)
205,250 52,534
Narrative on performance:
Participation in the Company’s learning and development program remained high
with 68% participation across the year. Overall, the amount of training provided
increased, with over 205,250 hours provided, equating to 254 hours per employee.
Shurgard has progressed in effectively implementing both e-learning and classroom
training during 2022.
Each in-store employee is required to complete a rigorous four-month training
program that builds the foundation to assist our customers with their storage needs.
European Support Center employees are also engaged in an extensive induction
program which lasts several weeks. Shurgard recruited 300 new employees over 2022
who all went through induction training.
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156
The Shurgard Academy was launched in 2018 to enable us to attract, retain and train
top talent within our stores. The academy provides a transparent program of
progression which empowers our employees to develop throughout their careers. The
Academy ensures a structured process of career progression, from Junior Assistant
Store Manager to Senior Store Manager.
GRI 404-1 / 404-3
NEW HIRES AND TURNOVER
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2022
2021
Number Rate Number Rate
401-1 Emp-Turnover
New employee
hires
300 40.4% 247 32.0%
Employee
turnover
331 44.6% 289 37.0%
Narrative on performance:
We continued to increase new hires in 2022, both because of additional stores in our
portfolio and because of the higher employee turnover (difficult market conditions).
This increase has been partly mitigated by an increasing number of stores that are
partially or remotely managed.
GRI 401-1
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157
EMPLOYEE HEALTH AND SAFETY
GRI Topic
Standard
EPRA sBPR Measure Indicator
2022 2021
403-2 H&S-Emp
Injury rate
0.003% 0.003%
Lost day rate 0.25% 0.07%
Absentee rate 5.8% 4.8%
Fatalities 0.0% 0.0%
Narrative on performance:
Shurgard has specific internal control and management systems to mitigate health
and safety risks, including technological solutions and a program of audit and
assurance.
In 2022, we maintained our record of no reportable health and safety incidents for
employees. Our absentee rate increased slightly in 2022.
GRI 403-2
ASSET HEALTH AND SAFETY ASSESSMENTS AND COMPLIANCE
GRI Topic Standard
EPRA sBPR
Measure
2022 2021
416-1 H&S-Assets
% of assets for which H&S
impacts are assessed or
reviewed
34.0% 35.0%
416-2 H&S-Comp
Number of incidents of
non-compliance
with regulations and/or
voluntary standards
0 1
Narrative on performance:
Shurgard is fully committed to providing safe storage facilities to our customers and
our staff. Health and safety criteria are regularly assessed in our properties to ensure
that applicable health and safety rules are respected. All the properties are audited
with respect to health and safety criteria:
By Internal Audit within a 3-year cycle (more than one third of the properties
are audited each year).
By the District Managers three times per year (self-assessments).
The organization has not identified any non-compliance with regulations and/or
voluntary codes. We continue to comply fully with COVID-19 recommendations issued
by local governments and health authorities.
GRI 416-1 / 416-2
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158
COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS AND DEVELOPMENT
PROGRAMS
GRI Topic
Standard
EPRA
sBPR
Measure
Indicator
2022 2021
413-1
Comty-
Eng
% of assets under operational
control that have implemented
local community engagement,
impact assessments, and/or
development programs
100.0% 100.0%
Narrative on performance:
Shurgard has a corporate community program that applies across all activities.
Further details of which are included under the ‘Community Enhancement’ section
above.
Community engagement activities are undertaken at a growing number of stores.
All our community initiatives are based on an assessment of the local communities’
needs and we conduct social and environmental impact assessments for planning
purposes. We provide grievance processes for all stakeholders, including a formal
complaints procedure.
GRI 413-1
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159
GOVERNANCE PERFORMANCE MEASURES
COMPOSITION OF THE HIGHEST GOVERNING BODY
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2022 2021
2-9 Gov-Board
Number of Executive Board members
1
1
Number of independent Board
members
6 6
Number of Non-Executive Board
members
10 10
Average tenure on the governance body
4.1 years
3.1 years
Number of independent / Non-Executive
Board members with competencies relating
to environmental and social topics
6 6
Narrative on performance:
The Board of Directors (highest governance body) is currently composed of 11 members, one Executive Director
and ten Non-Executive Directors. We define “Executive” as a Director with executive functions within the
Shurgard group (such as Chief Executive Officer, Chief Financial Officer, etc.). The Chairman, Ronald L. Havner, Jr.
leads the Board. The Environment, Social and Governance (ESG) Committee oversees the ESG strategy of the
Company and monitors the completion of the ESG objectives. Also, it is considered that all the Non-Executive
Board members have competencies related to environmental and social topics, through academic and
professional backgrounds, and/or charity work.
GRI 2-9
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PROCESS FOR NOMINATING AND SELECTING THE HIGHEST GOVERNING BODY
GRI Topic
Standard
EPRA sBPR
Measure
Indicator 2022 2021
2-10 Gov-Select
Composition of
the Board of
Directors
(Relevant for the reporting rules and did not change between 2021 and 2022 in
relation to the nomination and selection of the Directors; rules last reviewed
February 2022 in relation to overseeing the ESG strategy of the Company)
Source : Internal Rules and Regulations of the ESG Committee
Available under https://corporate.shurgard.eu/governance/committee-charter
The ESG Committee acts to:
- Identify candidates qualified to serve as members of the Board and executive
officers;
- Recommend candidates to the Board for appointment by the general meeting of
shareholders or for appointment by the Board to fulfil interim vacancies at the
Board;
- Submit a list of candidates to the Board on the appointment of new Directors and
executive officers;
- Make an assessment of the existing and required skills, knowledge and
experience for any post to be filled and prepare on that basis a description of the
role, together with the skills, knowledge and experience required - this includes
ESG topics;
- Make an assessment as to whether candidate Directors meet the criteria of
independence.
In respect of diversity: "Within 6 years from the effective date of the initial public
offering of the Company, at least 1/3 of the members of the proposed candidates
shall be female"
Narrative on performance:
The rules for the nomination and selection of members of the Board of Directors have not changed since 2019.
The ESG Committee makes recommendations to the Board about the renewal of the Directors’ mandates and the
nomination of new Directors when requested. It is then the prerogative of the shareholders of the Company to
approve the mandates of the Directors.
GRI 2-10
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161
PROCESS FOR MANAGING CONFLICTS OF INTEREST
GRI Topic
Standard
EPRA sBPR
Measure
Indicator 2022
2-15 Gov-Col
Composition of
the Board of
Directors
Source 1: Corporate Governance Charter
Available under https://corporate.shurgard.eu/governance/governance-
documents procedure
- In relation to any transaction, submitted for approval to the Board or any
committee of the Board conflicting with that of the Company, a Director having a
direct or indirect financial interest shall notify the Board or any committee of the
Board of directors and shall not participate in any discussions or vote of the
Board or any committee of the Board, and the decision shall be taken by simple
majority of the voting Directors.
- Where, due to a conflict of interests, the number of Directors required to be
present for a valid quorum is not reached, the Board may defer the decision to
the general meeting of shareholders.
Source 2: Directors Code of conduct
Directors must take appropriate actions in case of conflicts of interest.
Directors must use their best efforts to avoid any potential conflict of interest
with the Company or any company controlled by it.
If a Director has a direct or indirect personal and conflicting interest of a
financial nature in a decision or transaction within the authority of the Board, he
must so notify the other Directors prior to a decision by the Board. A Director
who has a conflicting interest may not participate nor vote in the deliberations
of the Board on such transactions or decisions.
This procedure does not apply if the decisions of the Board relate to transactions
at arm’s length and concerning the daily affairs of the Company.
Source 3: Disclosure into the annual report of the other directorships of the
Directors of the Board
Narrative on performance: No conflicts of interest were identified in either year.
This indicator describes our processes to ensure that conflicts of interest are avoided and managed in the highest
governance body, and how conflicts of interest are disclosed to stakeholders.
GRI 2-15
SHURGARD ANNUAL REPORT 2022
162
REMUNERATION REPORT
PRELIMINARY NOTE
This Remuneration Report has been prepared in accordance with the principles provided for under the Company’s
Remuneration Policy as approved by the Annual Shareholders‘ Meeting held on April 29, 2020 and complies in
all aspects with such policy and its principles. There has been no derogation from the Remuneration Policy. The
Remuneration Policy can be found on the Company’s website (
Governance Documents | Shurgard Investor
Relations).
2022 PERFORMANCE HIGHLIGHTS
In 2022, the Company delivered another year of solid results and is further positioned to deliver long-term value
creation. Under the leadership of our Senior Management, and with our Board’s oversight, the Company achieved
significant performance successes, including:
Record Property operating revenue
€333.0mil
(+11.7%
at CER)
EPRA NTA per share
€40.67
Dividend Per Share Growth
Record NOI
€219.2mil
EPRA NTA Per Share Growth
+17.6%
Same store NOI margin
67.2%
(+1.3pp at CER)
Total Investment property value
€4.5billion (+17.6%)
EBITDA Growth (at CER)
+15.1%
+65K SQM
Added through acquisitions, developments, and
redevelopments
Record Adjusted EPRA earnings
€143.6mil
(+10.1% at CER)
ESG
Record Adjusted EPRA earnings per share
€1.61
ESG
A GOLD MEDAL
at the EPRA Sustainability Best
Practices Recommendations (sBPR)
Achieved 5-STAR GRESB
rating out of a maximum of
five stars.
We are our sector leader.
SHURGARD ANNUAL REPORT 2022
163
In addition, the Company’s stock and total return has consistently traded significantly higher than various indices
for the last four years.
Stock performance vs indices since IPO (Oct 2018)
2022 COMPENSATION FRAMEWORK AND TARGETS FOR SENIOR MANAGEMENT
We believe that the 2022 executive compensation was aligned with the Company’s strong performance, while
recognizing the impact of the significant challenges the Company faced. The following is a summary of the ESG
Committee’s decisions with respect to the key components of the 2022 compensation program for our Senior
Management. The compensation of the members of the Senior Management consists of a balance between fixed
and variable compensation components and fringe benefits aligned with market practice, such as company cars
or allowances, insurance, and standard pension benefits.
Framework of CEO Compensation
The annual base salary for Mr. Oursin is €500,000 which has remained unchanged since 2012. Additionally, an
annual cash bonus incentive award of €500,000, representing 100% of his base salary, was set assuming the
achievement of performance criteria as set forth below, which were established by the ESG Committee.
Framework of Short-Term Performance-Based Bonus Awards for all Senior Management
The annual performance-based cash bonus program provides an opportunity to reward Senior Management for
their performance during the fiscal year. Although the ESG Committee may set annual incentive award targets,
this bonus amount does not preclude the ESG Committee from approving higher or lower annual incentive awards
in the future.
The actual awards are determined by the ESG Committee after determining whether the targeted corporate
performance metrics have been achieved. The ESG Committee will consider the recommendations of the Chief
Executive Officer with respect to the performance of the other members of Senior Management and their
achievement of individual and other goals. In addition, the ESG Committee will solicit the views of the Chairman
and the Board, particularly with respect to the performance of the Chief Executive Officer.
SHURGARD ANNUAL REPORT 2022
164
For the year ended December 31, 2022, compensation targets were set as follows by the ESG Committee for all
executives. They can range from 0% to 100% of an individual’s short-term bonus potential target based on the
performance of the Company and the performance of each respective individual (taking into account both
financial and non-financial criteria). The potential target is equal to the executive’s annual base salary.
Executive position
CEO All other Executives
Amount of potential target 100%
of base salary 100%
of base salary
Revenue performance
All store >6%
0%-30% 0%-40%
NOI growth and Adj. EPRA earnings
2% medium-term
Adj. EPRA earnings growth
0%-20% 0%-25%
Development and M&A (new sqm)
2022 openings (11 properties)
2023 pipeline (13 properties)
0%-15% 0%-45%
TSR benchmark with peers
0%-20% 0%-20%
Other projects and ESG
(non-financial performance criteria)
1
0%-15% 0%-20%
1
More information about ESG targets is in our ESG Report available at https://corporate.shurgard.eu/corporate-responsibility/reports-and-publications.
2022 COMPENSATION DECISIONS
After consideration of the individual performances of each member of Senior Management, the solid results
achieved by the Company in 2022, and that the executive team achieved each short-term performance objective
set forth above, the decisions made by the ESG Committee are as follows:
2022 CEO COMPENSATION
In recognition of Mr. Oursin’s performance in 2022, the ESG Committee approved a cash bonus of €500,000, to
be paid in 2023. Mr. Oursin’s annual base salary for 2023 will remain at €500,000.
2022 COMPENSATION FOR EXECUTIVES OTHER THAN OUR CHIEF EXECUTIVE OFFICER
Base salaries for 2022 for Mr. Kreusch, Mr. Bell, Mr. Kharouf, and Ms. Neumann were €355,584, £250,000,
€250,000, and €320,000, respectively. The base salaries will also remain the same for 2023.
Annual Cash Incentives for 2022: After consideration of the achievement of each of the 2022 short-term incentive
targets and the individual performances of the direct reports of Mr. Oursin, the ESG Committee awarded the
following annual incentive bonuses, which will be paid in 2023, to the following executives: Mr. Kreusch,
€350,000; Mr. Bell, £250,000; Mr. Kharouf €250,000 and Ms. Neumann €320,000.
SHURGARD ANNUAL REPORT 2022
165
For comparative purposes, the following summarizes Senior Management compensation over the last two years:
Name
and
position
Year
Fixed remuneration Variable remuneration
Total
Proportion of
fixed and
variable
remuneration
Base Salary
All other
compensation
2
Short-term
performance-
based Bonus
3
Option
awards
5
Marc Oursin
CEO
2022 500,000 52,000 500,000 956,816 2,008,816
1 : 2.64
2021 500,000 52,000 450,000 670,360 1,672,360
1 : 2.03
Jean Kreusch
CFO
2022 355,584 32,796 350,000 598,010 1,336,390
1 : 2.44
2021 355,584 32,796 300,000 426,000 1,114,380
1 : 1.87
Duncan Bell
COO
2022 293,269 26,629 293,269 478,408 1,091,575
1 : 2.41
2021 293,269
1
26,629 187,692 329,560 837,150 1 : 1.62
Ammar Kharouf 2022 250,000 13,099 250,000 478,408 991,507 1 : 2.77
General Counsel
2021 250,000 13,099 150,000 318,320 731,419 1 : 1.78
Isabel Neumann
4
2022 320,000 36,841 107,000 478,408 942,249 1 : 1.64
CIO
2021 320,000 36,841 0 205,920 562,761 1 : 0.58
1 The amounts for Mr. Bell are converted from pound Sterling. The original Sterling value was £250,000 for 2022. As a constant exchange rate, we took the
average exchange rate of 2022.
2 The amounts shown in this column for all named executives reflect contributions to their individual group insurance and also includes the amounts for their
car, being either a car allowance or the benefit in kind for using a company car. For Mr. Kreusch this amount also includes his representation allowance.
3 The amounts shown in this column reflect annual cash incentive awards paid to the executive management based on performance targets for the prior year.
The amounts for Mr. Bell are converted from pound Sterling. The original Sterling value was £250,000 paid in 2022. As a constant exchange rate, we took the
average exchange rate of 2022.
4 Isabel Neumann joined the company on September 1, 2021 but for completeness and comparative reasons, the amounts reflect a full year.
5 With respect to the option awards, the total value is spread over the vesting period and earned in the respective years as opposed to the full value of the stock
options attributed to the grant year. Additional information is available under Note 33 “Share-based Compensation Expense” in the notes to the consolidated
financial statements.
The total aggregate compensation to the members of the Senior Management in the year ended
December 31, 2022 amounted to €6,370,537.
SHURGARD ANNUAL REPORT 2022
166
2023 COMPENSATION TARGETS
For the year ending December 31, 2023, the table below sets forth the targets that have been set by the ESG
Committee. Payouts can range from 0% to 125% of a Senior Manager's annual salary based on the performance
of the Company in various metrics and each Senior Manager’s individual performance.
Executive positions
CEO
All other Executives
Amount of potential target 0%-125% of base salary 0%-125% of base salary
1
Revenue performance
All stores growth 2023 vs 2022 above 8.0%
Same store growth 2023 vs 2022
0%-30% 0%-40%
NOI growth & Adj. EPRA earnings growth
All stores NOI margin % above 2022
Adj. EPRA earnings growth
0%-15% 0%-25%
Development & M&A (all new sqm)
2023 total added new sqm above 70,000 sqm
2024 total potential above 70,000 sqm (pipeline exc. M&A)
0%-20% 0%-45%
Other KPIs
Other projects
ESG (based on GRESB rating)
Shurgard share, TSR benchmark vs peers
0%-35% 0%-45%
1
weight per section varies per Executive
EMPLOYEE STOCK OPTION PLAN (2017)
The Company granted stock options under an incentive plan in 2017 which is still outstanding. No new grants
may be made under this plan. The total number of stock options granted under this plan was 265,000.
The key features of the stock options outstanding under the 2017 plan are as follows:
upon exercise, each stock option gives the right to one ordinary share;
the stock options were granted for free;
the stock options were exercisable in tranches of 25% per year from the first anniversary of the
date of the grant, so that the grant was fully vested after four years;
the stock options have a term of 10 years;
the stock options vest subject to customary service rules; and
the exercise price of each stock option is €21.51
SHURGARD ANNUAL REPORT 2022
167
EQUITY COMPENSATION PLAN (2018)
The Company also granted stock options under an incentive plan in 2018 which is still outstanding. No new
grants may be made under this stock option plan. The total number of stock options granted under this plan was
680,000.
The key features of the stock options outstanding under the 2018 equity compensation plan are as follows:
Upon exercise, each stock option gave the right to one ordinary share;
The stock options were granted for free;
The exercise price of each stock option was equal to the stock exchange price of the underlying
share at the time of the grant;
The stock options only vested three years after their grant;
The stock options have a term of ten years;
The exercise date can occur any time as of the vesting and before the term; and
The stock options vesting were subject to customary service rules.
EQUITY COMPENSATION PLAN (2021)
The Company approved a new equity compensation plan in 2021, which replaced all prior equity compensation
plans. Initial grants took place on August 2, 2021. The intent of this grant was to incentivize certain members of
the Senior Management and a number of existing or future employees of the Group as well as to support
retention and further strengthen the link between compensation and our stock price development. This plan
enables the Company to grant stock options and, possibly, restricted stock units in 2021 and following years. The
options have a two-stage vesting period with (i) 60% of the stock options vesting three years after the date of
grant; and (ii) the remaining 40% of the stock options vesting five years after the date of grant.
The maximum number of stock options and restricted stock units intended to be granted under the plan is
2,000,000.
1,651,000 stock options were granted and accepted under this plan on August 2, 2021, at an exercise price equal
to €43.05. A second grant of 200,000 stock options under this plan took place on September 1, at an exercise
price equal to €47.75. A third grant of 19,000 stock options under this plan took place on July 18, 2022, at an
exercise price equal to €46.81. A total of 1,250,000 stock options were granted to Senior Management.
For additional information regarding the Company’s stock option plans please refer to Notes 24 and 33 “Share-
based payment reserve” and “Share-based compensation expense” in the Notes to the consolidated financial
statements.
The table below shows the grant of stock options held by each member of the Senior Management for all
outstanding stock option plans, as of December 31, 2022.
SHURGARD ANNUAL REPORT 2022
168
Position Main conditions financial year 2022
Opening
balance
During the year Closing balance
Plan Award date Vesting
date(s)
Expiration
date
Shares
awarded
originally
Awarded Vested Shares awarded
but still unvested
at year end
CEO
2017 plan 03/07/2017 03/07/2018
03/07/2019
03/07/2020
03/07/2021
02/07/2027 60,000 - - -
2018 plan 16/10/2018 16/10/2021 15/10/2028 230,000 - - -
2021 plan 02/08/2021 02/08/2024
02/08/2026
01/08/2031 400,000 - - 400,000
Total
810,000 - - 400,000
CFO
2017
plan
03/07/2017 03/07/2018
03/07/2019
03/07/2020
03/07/2021
02/07/2027 40,000 - - -
2018 plan 16/10/2018 16/10/2021 15/10/2028 150,000 - - -
2021 plan 02/08/2021 02/08/2024
02/08/2026
01/08/2031 250,000 - - 250,000
Total
520,000 - - 250,000
COO
2017 plan 03/07/2017 03/07/2018
03/07/2019
03/07/2020
03/07/2021
02/07/2027 35,000 - - -
2018 plan 16/10/2018 16/10/2021 15/10/2028 110,000 - - -
2021 plan 02/08/2021 02/08/2024
02/08/2026
01/08/2031 200,000 - - 200,000
Total
405,000 - - 200,000
General
Counsel
2017 plan 03/07/2017 03/07/2018
03/07/2019
03/07/2020
03/07/2021
02/07/2027 30,000 - - -
2018 plan 16/10/2018 16/10/2021 15/10/2028 100,000 - - -
2021 plan 02/08/2021 02/08/2024
02/08/2026
01/08/2031 200,000 - - 200,000
Total
370,000 - - 200,000
CIO
2021 plan 01/09/2021 01/09/2024
01/09/2026
31/08/2031 200,000 - - 200,000
Total
200,000 - - 200,000
SHURGARD ANNUAL REPORT 2022
169
COMPARATIVE INFORMATION ON THE CHANGE OF REMUNERATION AND COMPANY PERFORMANCE
For comparison purposes, the figures of: (i) Senior Management total aggregate compensation, (ii) Company
performance and (iii) the average remuneration on a full-time equivalent basis of the other employees of the
Company over the five most recent financial years are shown in the table:
Annual change
2018 2019 2020 2021 2022
Senior Management remuneration
1
CEO 1,558,444 1,193,32 1,262,797 1,672,360 2,008,816
CFO 1,057,093 811,565 858,034 1,114,380 1,336,390
COO² 472,505 630,815 632,319 837,150 1,091,575
General Counsel 533,377 446,449 505,089 731,419 991,507
Chief Investment Officer N/A N/A N/A 562,761 942,249
Company Performance
Property Operating Revenue Growth
3
2.7% 5.0% 5.5% 10.7% 11.7%
Adj. EPRA earnings growth
-1.3% 8.1% 9.9% 11.0% 10.1%
Average share price per year (€)
25.49 29.88 33.30 44.62 48.17
Directors
4
165,000 690,000 700,000 700,000 797,500
Employees Average remuneration
(full-time equivalent basis)
40,487 40,732 41,537 44,598 48,059
1 For detailed breakdown of Senior Management remuneration see the comparative table 2021-2022 above. With respect to the option awards included in the
remuneration, the total value is spread over the vesting period and earned in the respective years as opposed to the full value of the stock options attributed
to the grant year.
2 The amounts for the Chief Operating Officer are converted from pound Sterling at constant exchange rate.
3 At actual exchange rates. Same for Adj. EPRA earnings growth.
4 Amount paid in 2018 represents only the quarter following the Company’s public offering.
REMUNERATION PAID OUT BY OTHER GROUP COMPANIES
For the year ended December 31, 2022, there was no remuneration paid out by other group companies.
MALUS AND CLAWBACK MECHANISMS
Under the Equity Compensation Plans of 2021, unvested equity awards will be canceled if the Company’s financial
statements are restated as a result of errors, omission, or fraud, or if a grantee has engaged in conduct that
resulted in substantial losses for the Company or is responsible for such losses.
EXCEPTION TO THE REMUNERATION POLICY
For the year ended December 31, 2022, there is no departure from or exception to the remuneration policy.
NON-EXECUTIVE DIRECTOR COMPENSATION POLICY
Non-Executive Directors receive cash retainers for serving on the Board, chairing a committee and/or serving on
a committee. The retainers are paid quarterly and pro-rated when a Non-Executive Director (1) joins the Board
or a committee or (2) changes his or her position on a committee or no longer serves on the Board. The ESG
Committee is tasked with evaluating Directors’ compensation and recommends any changes. If there are any
changes to Non-Executive Directors’ compensation, the proposed changes will be presented for approval at the
Annual General Meeting of Shareholders for approval. Last year, at the Annual General Meeting of Shareholders
that occurred on May 4, 2022, the Shareholders approved the increases of Non-Executive Directors’
compensation as set forth below.
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170
COMPENSATION OF MEMBERS OF THE BOARD OF DIRECTORS IN 2022
From the time of their appointment, each Non-Executive Director of the Company receives €50,000 per year
(increased to €60,000 per year since July 2022). Each member who serves on a committee receives an additional
€10,000 in compensation. Each member who serves as the chair of a committee receives an additional €5,000
per year (increased to €15,000 per year since July 2022). The Lead Independent Director receives an additional
€10,000 per year (increased to €15,000 per year since July 2022). The Chairman of the Board of Directors receives
a flat fee €75,000 per year (increased to €140,000 per year since July 2022). An Executive Director of the
Company will not receive any additional compensation for their mandate as Director.
The total compensation of the Board of Directors in fiscal year 2022 amounted to €797,500.
Name Position Committee membership Year Compensation in €
1
Ronald L. Havner, Jr. Chairman
2022 107,500
2021 75,000
Marc Oursin Chief Executive Officer N/A
Z. Jamie Behar Director Real Estate (Chair), Audit
2022
85,000
2021 75,000
Daniel C. Staton Director Real Estate
2022 65,000
2021 60,000
Ian Marcus
Lead Independent
Director
ESG, Real Estate
2022 90,000
2021 80,000
Muriel De Lathouwer Independent Director Audit, ESG
2022 75,000
2021 70,000
Olivier Faujour Independent Director Real Estate, ESG
2022
75,000
2021 70,000
Frank Fiskers Independent Director
ESG (Chair),
Real Estate
2022
85,000
2021 75,000
Padraig McCarthy Independent Director Audit (Chair), ESG
2022
85,000
2021 75,000
Isabelle Moins Independent Director Audit
2022
65,000
2021 60,000
Everett B. Miller Director Real Estate
2022
65,000
2021
60,000
Total
2022
797,500
2021 700,000
1 The compensation amounts listed above are gross amounts and do not include any applicable VAT or the deduction of any applicable withholding tax.
DIRECTORS’ AND OFFICERS’ INSURANCE
We maintain a Directors and Officers insurance policy covering claims that might be made against members of
the Board of Directors and Senior Management of the Company in relation to their functions. The Company
entered into indemnification agreements with its Directors and Senior Management supplementing this policy.
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171
PRINCIPAL RISKS AND UNCERTAINTIES
OVERALL STATEMENT ON THE RISK POSITION
As set out in the Market Overview and Growth Strategy sections of this report, our business activities are
supported by favorable market conditions. We see a variety of opportunities to continue our growth through
optimization of our existing operations, including leveraging our platform across planned redevelopment and
development activities and bolt-on acquisitions. Besides these opportunities, Shurgard regularly faces risks that
can have negative effects on the operating results, financial position, and net assets of the Group.
The risks set out below represent the principal risks and uncertainties that may adversely impact the Group’s
performance and the execution of our strategy.
To identify risks at an early stage and manage them adequately, Shurgard deploys effective risk management
and control systems which are also described below. Accordingly, we continuously assess the risks and conclude
at the time of the preparation of the management report the risks identified herein are limited and properly
mitigated. No identifiable risks currently exist that either individually or together would lead to a significant or
sustainable impairment of the Shurgard Group's operating results, financial position, and net assets.
RISK MANAGEMENT SYSTEM
Shurgard’s Risk Management is carried out by the Senior Management, under policies approved by the Board of
Directors. The Board provides principles for the overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, real estate risk and credit risk, the use of derivative and non-derivative
financial instruments and investment of excess liquidity. The Group’s risk exposure is regularly reported to the
Company’s Executive Committee, which comprises the Chief Executive Officer, Chief Financial Officer, Chief
Operating Officer, General Counsel, and Chief Investment Officer. The Company’s Audit Committee is responsible
for monitoring the effectiveness of our risk management system. It receives a report about the Group’s risk
situation every quarter.
The Group’s risk management process is designed to systematically record and assess risks. We aim to identify
unfavorable developments at an early stage and promptly take counteractive measures and monitor them. All
risks are recorded in a risk register and are assigned to specific risk owners. Risk owners are responsible for
providing periodically updated risk fact sheets. The assessment of the risks is carried out, as much as possible,
according to quantitative parameters, likelihood of occurrence and the potential financial and reputational
impact. According to the results of this assessment, risks are qualified in a risk map as low, medium, high, or
very high. Risks that are categorized as high or very high on the risk map receive special attention and are
monitored very closely. The risk register and the resulting risk map are updated every year based on risk owners’
input (new risks, closed risks, mitigation factors, change of positioning).
SHURGARD ANNUAL REPORT 2022
172
KEY RISKS SPECIFIC TO THE GROUP AND ITS INDUSTRY
The risks set out below represent the principal risks and uncertainties that may adversely impact the Group’s
performance and the execution of our strategy. Other factors could also adversely affect the Group’s performance.
Accordingly, the risks described below should not be considered a comprehensive list of all potential risks and
uncertainties. The principal risks are not listed in order of significance. In addition to the principal risks described
below, we are exposed to certain specific market risks such as foreign exchange risk, credit risk and liquidity risk.
A detailed discussion of these risks is included in Note 35 to the consolidated financial statements.
SHURGARD ANNUAL REPORT 2022
173
Risk & Impact
Risk Mitigating Activities
Self Storage Misuse
We do not
generally have access to and monitor our
customers’ storage units and cannot prevent our customers
from storing hazardous materials, stolen goods, counterfeit
goods, drugs, or other illegal substances in our properties. It
is possible that our customers wi
ll violate their lease
agreements and we cannot exclude the possibility that we
may be held ultimately liable with respect to the goods
stored by our customers. This also includes a potential close
-
down by local authorities.
In addition, unfavorable publicity from illegal contents stored
at one of our properties, or items that have been used or are
planned to be used in crimes or for other illegal purposes,
including terrorist attacks, could have a material adverse
effect on our business, financial condit
ion, and results of
operations.
The safety and security of our customers and goods,
stores, and our employees is a key priority. This is
achieved using access control systems, CCTV systems
and
intruder and fire alarm systems
. Additionally, training and
a
wareness sessions around safety and security are
provided regularly to all our employees. We review our
operational procedures on a continuous basis through
regular store audits.
Our customer lease contract terms prohibit the storage of
illegal and certai
n other goods on our premises.
In 2022, we started the upgrade of our access control
systems with the aim to strengthen control through a
more centralized managed and digitalized system.
Pandemic Diseases
The COVID-19 outbreak caused a significant contraction in
economic growth and impacted our overall risk profile. The
main risks areas are to (i) the Health and Safety of our
employees and customers, (ii) business disruptions based on
government restrictions and (iii) development schedul
es.
The roll
-out of vaccines provided a return to more normal
economic conditions, however risks around new variants
remain. We need to be adaptable in ensuring our business
resilience and maintaining our strong performance
.
Shurgard is monitoring pandemic risks and is taking
mitigation actions, with a focus on protecting our
employees and customers, and ensuring the continuity of
our operations. Overall and based on its performance
during the height of the current pandemic,
we did not
identify any
uncertainties that would cast any doubt on
Shurgard’s ability to continue as a going concern
. Our
performance during the Covid pandemic has been resilient
.
We continue
to adapt, if necessary, to respect the
guidance
issued by the various health organizatio
ns across
our markets to ensure the security of our employees and
customers.
Climate risk
We are exposed to climate change related transition and
physical risks. Physical risks may affect our stores and result
in higher maintenance, repair, and insurance costs. Failing to
transition to a low carbon economy may
have a financial or
reputational
impact.
As part of our journey to comply with new ESG requirements,
Shurgard
continues to develop its understanding of its
exposure and vulnerability to climate change risk.
At the board level, the ESG Committee oversees our ESG
strategy, monitor
s completion of ESG objectives, reviews
the ESG report, and assist
s the Board in reviewing and
assessing the Company’s ESG risks.
We are committed to build to a minimum standard of
BREEAM
“Very Good” on all our new store developments.
Additionally, our stores are regularly inspected and
maintained following sustainable principles where
possible.
Climate related risk assessments are performed
on all our properties to identify and register the applicable
risks to the property (flood, hurricane, earthquake
, etc.
). As
a result, we deploy risk mitigation measures
, where
necessary
. We implemented an Environmental
Management System (EMS) to
integrate ESG processes,
train personnel, review efficiency and report on outcomes
of environmental commitments.
We
also actively seek out external advice to ensure
c
ompliance with the applicable ESG framework (e.g.
Taskforce Climate related Financials Disclosure).
SHURGARD ANNUAL REPORT 2022
174
Housing Market Development
Our business is dependent on residential and commercial
demand for self
-storage areas, and our operating results are
driven by our ability to maximize occupancy levels and rental
rates at our properties. As a result, we are exposed to local,
national, and
international economic conditions and other
events and factors that affect customer demand for self
storage in the European markets in which we operate.
Demand for self storage could decrease if these or other
growth trends declined or reversed in the futu
re.
Moreover, we own substantially all
our properties. Property
investments are subject to varying degrees of risks. The value
of these properties can fluctuate significantly when economic
conditions are unfavorable or could be adversely affected by a
d
ownturn in the property market in terms of capital and/or
rental values. Rents and values are affected (among other
things) by changing demand for self storage, changes in
general economic conditions, changing supply within a
particular area of competing s
pace and attractiveness of real
estate relative to other investment choices.
Shurgard owns most of its assets and has a good spread
of properties (and risks) across different European
countries. In our markets, we have high concentrations of
self
-storage
properties in urban areas. In recent years, our
operating results have been supported by structural
trends, including increased migration and mobility, growth
in urban areas and increased population density.
Further,
our operating model allows
efficient execution in various
building types and sizes
.
Our development team pro
-actively and continuously
follows
-up the housing market trends to adjust the
development strategy when needed.
Effective Internal Controls are in place to
review cap rates,
store t
rading data and property status rates.
Our investment criteria and returns are carefully reviewed
and adjusted based on market conditions
and risks profile.
Investments are not pursued when they fail to meet our
set return target
s. Performance of individual properties
once opened is benchmarked against target returns and
post
-investment reviews are performed.
Price War
Competitors may offer lower prices, better locations, better
services, or other attractive
features in any given property’s
catchment area, which may heighten competition for
customers. Local market conditions have a significant impact
on our business. This impacts the prices we can set, and from
time
-to-time additional competition has lowered occupancy
levels and rental revenue of our properties in specific
markets. Aggressive price discounting measures by our
competitors (i.e. a price war) can have a significantly negative
impact on our property operating revenue from activities at
affected pro
perties. Also, increased pricing transparency
because of the increasing prevalence of online pricing, may
increase pricing pressure in our markets.
The industry of self storage is very fragmented across
Europe. The presence of Shurgard in
seven different
markets dilutes the price risk. Moreover, no individual
operator competes with Shurgard in
all markets in which
we operate.
Shurgard’s pricing model has proven
resilient versus local
market conditions. Shurgard also actively monitors prices
of competitors. Price fluctuations are continuously
reviewed, discussed, and reported
.
SHURGARD ANNUAL REPORT 2022
175
Competition for Suitable Properties
Shurgard primarily operates in capital and major cities,
where undeveloped or available sites are generally in short
supply and where real estate prices have historically been at
a premium. As a result, there is generally a limited number
of prime sites av
ailable for new self-storage properties, and
competition for these sites can be intense and may
constrain our growth. At times of economic growth, this
competition can lead to significant inflation of property
prices. This can contribute to higher purchase
prices or rents
for prime properties, or result in the selection of less
suitable properties, either of which could result in a material
adverse effect on our business, financial
condition, and
results of operations.
We can leverage on an increased and experienced
Development team dispersed across our markets and on
an adjustable development strategy
. Thanks to our
efficient and scalable operating platform,
as well as the
limited building requirements to operate a self
-storage
property, we
can consider a wide range of opportunities,
including buildings requiring a conversion or buildings
that
might appear be too small for competition.
Compliance Risks
We must operate our properties in compliance with
numerous building codes and regulations and other land
-
use
regulations. These include fire and
Health and Safety
regulations, labor codes, building codes, data privacy and
other regulatory requirements. Fai
lure to comply with the
applicable regulations could result in the imposition of
substantial fines or require us to incur significant additional
costs, or to limit or cease part of our operations. This could
have a material adverse effect on our business,
financial
condition, and results of operations.
We are subject to several laws and strive to comply with all
applicable laws and regulations. However, it is possible that
such requirements may be interpreted and applied in a
manner that is inconsistent
from one jurisdiction to another
or may conflict with other rules or our practices.
We are subject from time to time to disputes with tax or
other governmental or regulatory bodies. We may be
required to devote significant management time and
attention
to its successful resolution (through litigation,
settlement or otherwise). Any such resolution could involve
the payment of damages or expenses by us, which may be
significant. In addition, any such resolution could involve our
agreement to terms that re
strict the operation of our
business.
As we are a publicly listed
company, we also must comply
with a large amount of ongoing reporting and disclosure
requirements. Any failure in meeting these requirements
could result in significant penalty fees.
Shurgard is committed to conduct business with respect
to laws and its values. Our Business Code of
conduct is a
guidebook for putting these values into practice. This
Code applies to every Shurgard employee in all countries
where Shurgard is present.
We
continuously communicate, train and review
compliance with our Health
and Safety standards.
Employee awareness is high in this area.
We seek legal
and tax advice from our local lawyers and
tax advisors
. When needed, specific projects are set up to
address the implementation of regulatory requirements.
Training is provided to our new and existing employees
on applicable and new regulations included in company
policies.
As part of their audits, Internal
Audit assesses compliance
with applicable laws and regulations, including Health
and
Safety, fire, building permits and data privacy.
SHURGARD ANNUAL REPORT 2022
176
Legislation Changes
We operate our business and our properties in compliance
with laws, regulations or government policies which may be
adopted or changed from time to time. These include laws
and regulations relating to
Health and Safety and
environmental compliance, numerou
s building codes and
regulations, other land
-use regulations, labor codes and
other regulatory requirements. Changes in such laws and
regulations may increase the costs of complying with these
provisions, increase construction, operating and
maintenance co
sts, increase liabilities or lower the value of
our properties.
The regulatory regimes might also evolve, including in
relation to data privacy and our ability to share customer
data within our organization. This could result in a material
adverse effec
t on our future business, financial condition,
and results of operations
.
New regulations might develop in the United Kingdom
because of
a change in its relationship with the European
Union.
Legislation changes are actively monitored by our legal
team
and external lawyers in our local markets. Our
policies and procedures are updated accordingly to reflect
applicable legislati
ve
updates and employees are regularly
trained. When needed, specific projects are set up to
address the implementation of new re
gulatory
requirements.
Tax Increases
Taxes and levies are or might be increasing in our operating
markets
, beyond Shurgard’s direct span of control. We might
not be able
or not willing to pass on the higher taxes to our
customers.
As a result, our earnings might be adversely
impacted during periods immediately following such
increases.
We are advised by external consultants for the review of
all applicable taxes. We regularly monitor actual changes
in tax legislation with the support of our tax advisers to
understand and mitigate the impact.
We evaluate tax
changes against the
projected demand in the relevant
market
s, in order to anticipate the effect on our earnings
and
decide on whether we should and can adjust our
prices accordingly
.
When changes apply, our policies and procedures are
updated accordingly, and training is provided to
relevant
employees.
SHURGARD ANNUAL REPORT 2022
177
Acquisitions
One aspect of our growth strategy includes acquiring and
integrating acquisitions of properties, either as individual
sites or existing businesses. Demand for storage services at
an acquired site may not be
as strong as we had projected
prior to the acquisition. We may fail to realize the occupancy
levels or rental rates that were expected, either at the levels
or within the timeframe anticipated. We may also experience
stabilization of rental and occupancy r
ates of acquired
properties that differs from our expectations. The costs of
achieving and maintaining high occupancy levels and rental
rates at acquired sites may be higher than expected.
The integration of newly acquired properties could also
result in
unanticipated operating costs and exposure to
undisclosed or previously unknown potential liabilities, such
as liabilities for clean
-up of undisclosed environmental
contamination, claims by persons dealing with the former
owners of the properties and claim
s for indemnification by
general partners, directors,
officers, and others indemnified
by the former owners of the properties. If we fail to
successfully integrate any acquired sites, or if doing so
requires investments beyond budgeted amounts or other
lia
bilities, it could have a material adverse effect on our
business, financial
condition, and results of operations.
Finally, we may face significant competition from other real
estate investors to acquire suitable properties, which might
prevent Shurgard f
rom acquiring as many properties as it
intends.
Management has an established and clear strategy for
targeting and acquiring properties in our markets.
Thorough due diligence is conducted and detailed
analysis is undertaken
with the support of external
e
xperts prior to deciding on property investment and
development. This includes amongst other an in
-depth
review of the potential revenue
and risk coverage in
purchase agreements
through disclosure requirement,
warranties, escrow and external insurance, if
necessary.
Projects are not pursued when they fail to meet the
required investment criteria.
Integration of acquired properties
follows a standard
process with the involvement of cross
-departmental
specialists.
Performance of individual properties is benchmarked
against target returns and post
-investment reviews are
undertaken.
SHURGARD ANNUAL REPORT 2022
178
Shurgard Trademarks and Logos
We believe that the Shurgard brand is a critical marketing
tool, and we use a variety of channels to increase customer
awareness of our name, including highly visible store
locations, site signage and architectural features. However,
we do not own the tradema
rks for the Shurgard name and
the Shurgard logos, which are held by Public Storage. Certain
standards of quality must be met and there are certain
restrictions on the use of any other trademarks. We pay
Public Storage monthly fees of 1.0% of the Group’s gr
oss
revenues for the right to use the trademarks.
The Relationship Agreement will terminate after 75 years or
earlier if we do not extend the license after each 25
-year
term. We would then be required to purchase the ownership
rights to the trademarks in
the jurisdictions covered by the
license. Public Storage may terminate the Relationship
Agreement if we fail to make payments or if we are in
material breach of the agreement. If this happens, we will no
longer be able to use the Shurgard trademarks, which
would
materially adversely affect our ability to run our business.
We are also responsible for all costs and expenses in relation
to the filing, registration, and defen
se of the trademarks
within the territories covered by the license. If we fail to
prot
ect the trademarks against infringement or
misappropriation, our competitive position could suffer, and
we could suffer a decrease in demand for storage units,
which could materially adversely affect our results of
operations.
We have a license agreement with Public Storage (the
“Relationship Agreement”) stating that Public Storage
owns the rights to the Shurgard name and licenses these
rights to us in a number of European countries for a fixed
term of 25 years from the date of Shurgard’s admission to
trading on a regulated market. This term can be extended
for two consecutive 25
-year periods. Following the initial
25
-year period Shurgard may elect to purchase the
ownership rights to the trademarks.
Public Storage may
not
terminate the Relationship Agreement except for
certain specific situations.
Public Storage and Shurgard management are in
regular
contact regarding the use of the trademarks.
SHURGARD ANNUAL REPORT 2022
179
Access to Capital Market
We may face risks in relation to financing future
development, redevelopment, or acquisition activities. Our
ability to undertake future investments may depend on our
ability to arrange necessary (or desired) financing, and we
may not have access to capital markets or sufficient
availabil
ity under existing or future credit facilities when
such opportunities arise. As a result, we may be unable to
finance future acquisition activity, on favorable terms or at
all. If financing is available, but only on unfavorable terms
(i.e
., only expensive lending options available), this could
have a significant impact on our interest expense, impose
additional or more restrictive covenants or reduce cash
available for distribution or for other investments in the
business. We could also be r
estrained from raising
significant debt for future acquisition activity due to
covenants in our existing debt agreements.
Also, significant systemic political,
economic, or financial
crises or sustained periods of slow growth may restrict our
ability t
o access the capital markets and generate sufficient
financing due to cautious investor attitudes.
We also face risks related to the outstanding U.S. Private
Placement Notes and the €250 million revolving
credit
facility. Under the terms of these financ
ings, we may not
incur financial indebtedness unless it is incurred in certain
permitted circumstances. Additionally, we are subject to
certain customary affirmative, financial and negative
covenants, which could affect,
limit, or prohibit our ability to
u
ndertake certain activities. These include limitations on
mergers, changes of business, disposal of assets and certain
specific acquisitions and joint ventures.
A clear financial strategy is in place for the coming years.
This strategy is based on the u
nderlying principle that
Shurgard’s
financial position should allow the execution
of our strategy, independent of the capital market
conditions, i.e., should enable Shurgard to have access to
funding at any
point in time. Funding requirements for
investments
and timing for commitments are reviewed
regularly
. Shurgard manages liquidity in accordance with
Board approved policies designed to ensure that the
Group has adequate funds for its ongoing needs.
Our LTV is low and our debts could be mostly
repaid with
cash flow.
F
inancial covenants are either tested quarterly or semi-
annually. We do not currently believe there is a risk of our
breaching any of the covenants contained in those
financings.
Currency Exchange Movements
We publish our financial statements in euros as we conduct
a significant portion of our business in euros. However, we
record revenue, expenses, assets and liabilities in a number
of different currencies other than the euro, specifically, the
UK Pound Ster
ling, the Swedish Krona and the Danish Krone.
As of December 31,
2022, 59.8% of our assets were
denominated in euros, while 2
1.8%, 13.9% and 4.5% were
denominated in UK Pound Sterling, Swedish Krona and
Danish Krone, respectively
. Assets and liabilities
de
nominated in local currencies are translated into euros at
exchange rates prevailing at the balance sheet date, and
revenues and expenses are translated at average exchange
rates over the relevant period. Fluctuations in the exchange
rate of the euro versu
s these other currencies will affect the
amount of these items in our consolidated financial
statements, even if their value remains unchanged in their
original currency.
When deemed appropriate
, we seek to mitigate the risk
and exposure through natural hedging, investing in assets
whose performance is
inherently negatively correlated to
the exposed balance.
We
also review our outstanding intercompany debts &
receivables on a continuous basis
and adjust to minimize
impact.
SHURGARD ANNUAL REPORT 2022
180
Cyber Security
An increasing proportion of our business operations is
conducted over the internet, increasing the risk of viruses
that could cause system failures and disruption of
operations. Experienced computer programmers may be able
to penetrate our network security
and misappropriate our
confidential information, create system
disruptions,
or cause
shutdowns. Cyber incidents could also cause disruption and
impact our operations, which could require substantial
restoration costs or investment in new systems to protect
against future cyber incidents.
In the ordinary course of our business,
we collect and may
store sensitive data, including intellectual property, our
proprietary business information and that of our customers,
suppliers and business partners, and personally identifiable
information of our customers and employees.
Our info
rmation technology and infrastructure may be
vulnerable to attacks by hackers or breached due to
employee error,
malfeasance, or other disruptions. Any such
breach could compromise our networks and the information
stored there could be accessed, publicly d
isclosed, lost, or
stolen.
Any network interruptions or problems with our websites
that could prevent customers from accessing our website
could have a negative impact on potential new rentals or
damage our brand and reputation.
Security measures are in place, including securing our
systems and applications,
designing, and implementing
an IT control framework, maintaining policies on the
handling of customer information, conducting awareness
training programs for our employees, regularly reviewing
assess
ments of the effectiveness of controls, and
maintaining a security committee that regularly meets to
discuss and review cyber security related matters.
We have established and tested business continuity and
disaster recovery plans. Our environment is re
gularly
reviewed
by external and internal specialists in respect of
cyber security. We have dedicated monitoring in place.
Cyber Risk Insurance
is in place covering data breaches.
We minimi
ze the retention of customer and employee
data in accordance with GDPR best practice.
Recruitment and Personnel Leakage
We depend in significant part on the contribution of our
Management
team who make significant contributions to
our strategy and operations. In addition, our ability to
continue to identify and develop properties depends on
Management
team’s knowledge and expertise in the
property market. There is no guarantee that any member of
the Management team will remain employed with us. The
failure to retain these individuals in key management
positions could have a material adverse effect on our
business.
We also depend on our store personnel responsible for the
management and operat
ion of our properties. Our store
managers’ customer service, marketing skills and knowledge
of local market demand and competitive dynamics are
significant contributing factors to our ability to maximize
customer satisfaction and rental,
insurance, and ancillary
revenue. Difficulties in hiring,
training, and retaining skilled
store personnel may adversely affect our occupancy and
rental revenues.
We may face risks related to relations with our employees.
Across our network, turnover of our personnel in r
ecent
years has been approximate
ly 39% per year, which has
historically been moderately higher in certain markets from
year to year.
Our Employee Engagement campaign stimulates Internal
Mobility, benchmarks competitive compensation &
benefits, and
training in the Shurgard Academy. We are
supported by external recruitment agencies to find the
right talents.
Our e
mployer branding "we believe in you" is in place on
social
media.
We implemented employee development plans and
succession planning at
our Support Center and in our
Operations.
Long Term Incentive plans are in place
to incentivize
employees to continue working for Shurgard
.
SHURGARD ANNUAL REPORT 2022
181
Public Relations
As a listed company, Shurgard is a transparent company for
its investors. It is a
legal requirement with potential
significant impacts of the price share and the placing on the
market of Shurgard’s shares. The group shall also be reactive
regarding its public relations (PR), in case of any event.
Our company is exposed to risks of s
erious incidents
materially affecting our customers, people, financial
performance and hence our brand and reputation
. The main
risks could be:
failure to quickly response to PR issues, p
ublic
communication and response plan,
monitoring of news
media,
negative press on/from competitors affecting the
C
ompany’s image.
Our Investors Relations is supported by external advisors
to communicate with investors and the market. Investor
Relations and the executive team conduct every
year a
roadshow
to meet investors and to promote good
communication on the Group. We maintain regular
communication with our key stakeholders, customers,
employees, shareholders, and debt providers.
Our management team is supported by PR agencies
which monitors news med
ia and the Group set up a
communication plan to address the main risks it is facing.
The management team follows regular media training.
Finally, the Group is part of the professional associations
of the self
-storage industry, in the markets where we
operate. It allows the Group to have a global
consideration of the market, to exchange good practices
with peers and to have, when needed, a global response
to the challenges faced by the self-storage industry.
Property Damage
We face risks relating to potential catastrophic property
damage due to fires or other disasters. Any catastrophic
events that cause significant property damage or affect the
areas where a store operates could limit our ability to
continue operations at a
store, or in a portion of a store,
after such an event, while restoration or rebuilding works are
undertaken. Property damage could be caused by a variety of
factors, including external events such as natural disasters,
earthquakes,
hurricanes, or other severe weather events.
Property damage could also be caused by catastrophic
events inside a store, such as power outages, fires, flooding,
plumbing problems, or other issues, such as infestation.
Moreover, our properties can be damaged or destroyed by
acts
of violence, civil unrest or terrorist attacks or accidents,
including accidents linked to the goods stored.
We are also subject to potential liability relating to damage
to customer goods. Such damage can arise from a variety of
factors, such as fire,
flooding, pest infestations and moisture
infiltration, which can result in mold or other damage to our
customers’ property, as well as potential health concerns.
Although we maintain reasonable liability cover where
possible, certain types of losses may be either uninsurable or
not economically insurable in some countries, such as losses
due to hurricanes, tornadoes, riots, acts of war or terrorism.
In such circumstances, we would remain liable for any debt
or other financial obligation related to that pro
perty. Our
business, financial condition and results of operations could
be materially and adversely affected in such circumstances.
Business continuity plans are in place and tested
regularly. Our system backups are at offsite locations and
we
have remote working capabilities.
During store audits, we review and assess risks related to
potential natural disasters,
Health and Safety, building,
and
facilities. This also includes a specific focus on fire
prevention and safety procedures. As a resu
lt of audits,
we enhance the existing compliant aspects of buildings
and processes. Fire risk assessments are done as part of
all new store developments.
Our terms and conditions define what customer
s can and
cannot do with their unit. Additionally, eve
ry customer
must sign an insurance contract or pro
ve that the
customer’s
goods are adequately covered by personal
insurance. Our staff is continuously training on respect of
all operational procedures, including
Health and Safety,
and fire.
The Group manages its insurable risks relating to property
damage, business interruption (“PDBI”) and customer
goods
-related claims through a combination of self
-
insurance and commercial insurance coverage. For this, the
Group uses a reinsurance undertakin
g.
All our stores are equipped and monitored by fire alarms,
instruction alarms and CCTV. Store access is secured by a
new
access system implemented in 2022 and Q1 2023.
We have a
Crisis Management Plan
designed to be used if
necessary.
SHURGARD ANNUAL REPORT 2022
182
Constructions and Developments
We consider strategic acquisitions of existing properties and
sites for development, as well as redevelopment and remix
activities at specific properties in our network, to be a
significant part of our growth strategy. Our redevelopment
activities often entail significant building works at an
existing site, requiring material levels of investment and, at
times, severe disruption to ongoing operations.
We undertake many of our
development activities through
service contracts where specific builders and other personnel
tender for particular roles in the construction process, rather
than comprehensive design
-and-build agreements.
Construction delays due to adverse weather conditio
ns,
unforeseen site conditions, personnel problems, or cost
overruns could prevent us from commencing operations at
these locations on the timing or scale anticipated at the time
we commenced development activities. If we experience
significant cost increa
ses after acquiring or commencing
construction at a particular site, we could be required to
alter, or in severe circumstances, curtail development plans.
In future periods, construction costs may also increase due
to increases in the cost of local contrac
tors, in high demand
markets, as well as changes in the cost of raw materials,
whether due to market forces or other events, such as
changes in tariff regimes or trade policy.
Other risks arising from developing new properties may arise
from any unfamil
iarity with local development regulations or
delays in obtaining construction permits or risks in relation
to the quality of available contractors.
However, the environmental assessments that we have
undertaken might not have revealed all potential
enviro
nmental liabilities. It is possible that the remedial
measures subsequently prove to be inadequate, or that
former owners are found not to be liable or, even in
situations where they are found to be liable, they are
otherwise unable to compensate us fully for such liabilities.
Our in-house development team and our professional
advisers have significant experience in obtaining planning
consents for self
-storage sites.
We manage the construction of our properties very
tightly.
We work with established professional advisers
and sub
-contractors who have worked with us for many
years to our specification
s.
We obtain environmental assessment reports on the
properties we ac
quire, develop, and operate to evaluate
their environmental condition and potential
environmental liability associated with them.
SHURGARD ANNUAL REPORT 2022
183
LUXEMBOURG TAKEOVER LAW DISCLOSURE
Shurgard Self Storage S.A. is required to make the following disclosures in compliance with article 11 of the
Luxembourg Law of May 19, 2006, transposing Directive 2004/25/EC of the European Parliament and of the
Council of April 21, 2004, on takeover bids (the “Transparency Law”):
a) Capital Structure
The Company has issued a single category of shares (ordinary shares). As of December 31, 2022, the share capital
was set at €63,610,156 divided into 89,131,131 shares, with no nominal value. The share capital has been fully
paid up. The shares exist in dematerialized form (titres dématérialisés) and have been issued pursuant to the
Luxembourg law dated April 6, 2013 on dematerialized shares. According to Article 7.1. of the Company’s Articles
of Association each share is entitled to one vote. The shareholder structure as of December 31, 2022 is set out
in the Share Capital section of this management report.
b) Restrictions on the transfer of securities
The Shurgard shares are freely transferable in accordance with the legal requirements for dematerialized shares.
The Board of Directors may, however, impose transfer restrictions for shares that are registered, listed and
admitted to trading, quoted, dealt in or have been placed in certain jurisdictions in compliance with the
requirements applicable therein. The transfer of a dematerialized share occurs by book-entry.
c) Direct and indirect shareholdings
The ownership in the Company by each shareholder who is known to be the (direct or indirect) holder of shares
of the Company representing 5% or more of the Company's voting rights is set out in the Share Capital section
of this management report.
d) Special control rights
All the issued and outstanding ordinary shares in the Company have equal voting rights and there are no special
control rights attached to the ordinary shares. As per article 7.1 of the Articles of Association of the Company
each share is entitled to one vote.
e) Control system of employee share schemes
There is no system of control of any employee stock option plan where the control rights are not exercised
directly by the employees.
f) Restrictions on voting rights
In general, there are no restrictions on the voting rights of the Shurgard shares. However, the sanction of
suspension of voting rights automatically applies to any shareholder (or group of shareholders) who has (or have)
crossed the thresholds set out in articles 8 to 15 of the Transparency Law but have not notified the Company
accordingly. The sanction of suspension of voting rights will apply until the notification has been properly made
by the relevant shareholder(s).
g) Restrictions on the transfer of securities
and/or voting rights provided in agreements between
shareholders
The Company is not aware of any agreements between shareholders which may result in restriction on the
transfer of securities and/or voting rights.
SHURGARD ANNUAL REPORT 2022
184
h) Appointment / replacement of Board members and Amendments of the Articles of Association
According to Articles 9.1 to 9.3 of our Articles of Association, the Company shall be managed by a Board of
Directors. Each Director will be appointed by the General Meeting. The General Meeting shall determine the
number of Directors, and the duration of their mandate is set at one year. Each Director is eligible for re-
appointment and may be removed at any time, with or without cause by a resolution of the General Meeting. In
the event of a vacancy on the Board of Directors, the remaining Directors may elect by co-optation a new Director
to fill such vacancy until the next General Meeting, which shall ratify such co-optation or elect a new Director
instead.
An amendment of our Articles of Association must be adopted by an extraordinary resolution at a General
Meeting in front of a Luxembourg public notary. A two-thirds majority of the votes cast by the shareholders
present or represented is required (with a quorum of 50% upon the initial convening and no quorum upon a
reconvened General Meeting). Our Articles of Association do not provide for any specific conditions that are
stricter than required by Luxembourg law.
i) Powers of Board Members
According to Article 10 of our Articles of Association, the Board of Directors is vested with the broadest powers
to perform all acts necessary or useful to accomplish the Company's object. All powers not expressly reserved by
the Articles of Association or by applicable laws to the General Meeting or to the Auditor(s) shall be within the
competence of the Board of Directors.
Authorized Capital
According to Article 6.1 of our Articles of Association, the authorized capital of the Company (including the issued
share capital) was set at €95,800,729.98 divided into 134,236,856 shares (the Authorized Capital) without
nominal value. According to Article 6.2 of our Articles of Association, the Board of Directors is authorized, up to
the maximum amount of the Authorized Capital, to:
increase the issued share capital in one or several tranches with or without share premium, against
payment in cash or in kind, by conversion of claims on the Company or in any other manner;
issue subscription and/or conversion rights in relation to new shares or instruments under the
terms and conditions of warrants (which may be separate or linked to shares, bonds, notes or
similar instruments issued by the Company), convertible bonds, notes or similar instruments;
determine the place and date of the issue or successive issues, the issue price, the terms and
conditions of the subscription of and paying up on the new shares and instruments; and
remove or limit the statutory preferential subscription right of the shareholders.
The above authorizations are valid until September 26, 2023, which corresponds to a period ending five years
after the date of the General Meeting creating the Authorized Capital. The above authorizations may be renewed,
increased or reduced by a resolution of the General Meeting with a two-thirds majority of the votes cast by the
shareholders present or represented (with a quorum of 50% upon the initial convening and no quorum upon a
reconvened General Meeting).
The Company’s share capital was increased several times during this financial year (through the use and within
the limits of the Authorized Capital) further to the exercise of certain stock options granted by the Company (the
Capital Increases). Please refer to Note 21 to the consolidated financial statements of the Company for further
details about such Capital Increases.
SHURGARD ANNUAL REPORT 2022
185
j) Change of control agreements
If a change of control occurs, each individual lender under the €250 million revolving facility entered into in 2018,
may cancel its commitment by not less than a 30 days’ notice and require repayment of its share in all
outstanding loans. The outstanding U.S. Private Placement Notes requires us to make an offer to prepay all
outstanding U.S. Private Placement Notes if, within a period of 90 days following the occurrence of a change of
control, the rating assigned to the U.S. Private Placement Notes (or any other of our unsecured and
unsubordinated indebtedness having an initial maturity of five years or more) immediately prior to the change
of control is lowered below investment grade and/or withdrawn (or, in absence of any rated U.S. Private
Placement Notes, we fail to obtain an investment grade rating of such rated debt instruments).
k) End of employment compensation
There are no agreements between the Company and its Board members or employees providing for
compensation if they resign or are made redundant without valid reason or if their employment ceases because
of a takeover bid.
RELATED PARTY TRANSACTIONS
We are engaged in certain commercial and financial transactions with related parties. Please refer to Note 34 to
the consolidated financial statements for further details.
SHURGARD ANNUAL REPORT 2022
186
RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge that:
the consolidated financial statements of Shurgard presented in this Annual Report and established in conformity
with International Financial Reporting Standards as adopted by the European Union give a true and fair view of
the assets, liabilities, financial position and results of Shurgard and its subsidiaries included within the
consolidation taken as a whole; and the management report presented in this Annual Report includes a fair
review of the position and performance, business model and strategy of Shurgard and the subsidiaries included
within the consolidation taken as a whole, together with a description of the principal risks and uncertainties
they face.
Luxembourg, February 16, 2023
Marc Oursin
Chief Executive Officer
Jean Kreusch
Chief Financial Officer
187
CONSOLIDATED FINANCIAL
STATEMENTS AS OF AND
FOR THE YEARS ENDED
DECEMBER 31, 2022 AND
2021
SHURGARD ANNUAL REPORT 2022
188
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED DECEMBER 31
(in € thousands)
Notes December 31, 2022 December 31, 2021
Real estate operating revenue 6, 11 335,290 300,375
Real estate operating expense 7, 11 (113,821 ) (105, 566 )
Net income from real estate operations 11 221,469 194,809
General, administrative and other expenses 8 (22,515 ) (19,440 )
Of which depreciation and amortization expense 16 (2,866 )
(2,624 )
Acquisition benefit of business combinations
Royalty fee expense 34 (3,289 ) (2,971 )
Operating profit before property related adjustments 19 6,440 1 72,398
Valuation gain from investment property and investment
property under construction
14, 15 586,181 466,575
Proceeds from property insurance recovery and loss on disposal
of investment property, property, plant and equipment
Operating profit 782,6 21 644,690
Finance cost, net 9 (20, 785 ) (19,970 )
Profit before tax 761,83 6 624,720
Income tax expense 10 (186,235 ) (177,134 )
Attributable profit for the period 575,6 01 447 ,586
Profit attributable to non-controlling interests 26 (1,317 ) (738 )
Profit attributable to ordinary equity holders of the parent 574,28 4 446,848
Earnings per share in €, attributable to ordinary equity
holders of the parent:
Basic, profit for the period 13 6.45 5.03
Diluted, profit for the period 13 6.40 5.00
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31
(in € thousands) Notes
December 31,
2022
December 31,
2021
Profit for the period 575,6 01 447,586
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent
periods:
Foreign currency translation reserve
1
(85,64 0 ) 29,891
Net other comprehensive (loss) income, net of tax, that may be
reclassified to profit or loss in subsequent periods
(85,6 40 ) 29,891
Net other comprehensive income (loss), net of tax, not to be
reclassified to profit or loss in subsequent periods
Total comprehensive income for the period, net of tax 490,212 477,398
Attributable to non-controlling interests 26 (1,317 ) (73 8 )
Attributable to ordinary equity holders of the parent 488,895 476,660
1
The movement in the foreign currency translation reserve for the year ended December 31, 2022 mainly consists of translation losses incurred on translation
of assets and liabilities and statements of profit and loss of our UK (€43.7 million ) and Swedish (€42.0 million ) operations, marginally offset by translation
gains for our Danish (€0.1 million) operations.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31
(in € thousands) Notes December 31, 2022 December 31, 2021
Assets
Non-current assets:
Investment property 14, 15 4,46 9,572 3,817,235
Investment property under construction 14, 15 54,217 29,832
Property, plant and equipment 16 2,737 3,19 6
Intangible assets 16 6,72 9 5,926
Deferred tax assets 10 972 1,723
Other non-current assets 17 11,326 1 ,067
Total non-current assets 4,545,553 3,858,979
Current assets:
Trade and other receivables 18 18,6 71 16,370
Other current assets 19 8 ,262 7,950
Cash and cash equivalents 20 87,345 219,170
Total current assets 114,278 243,490
Total assets 4,6 59,831 4,102,469
Equity and liabilities
Equity
Issued share capital 21, 22 63,610 61,38 3
Share premium 23 540, 087 539,712
Share-based payment reserve 24 8,562 4,691
Distributable reserves 25 146,277 253,195
Other comprehensive loss (1 38,422 ) (53,033 )
Retained earnings 2,240,879 1,666,5 95
Total equity attributable to equity holders of the parent 2,860, 993 2,472,543
Non-controlling interests 26 6,815 5, 498
Total equity 2,867, 808 2,478 ,041
Non-current liabilities:
Interest-bearing loans and borrowings 27, 29 797,980 79 7,579
Deferred tax liabilities 10 7 81,094 642,174
Lease obligations 28, 29 95,665 84,475
Other non-current liabilities 30 -
Total non-current liabilities 1,6 74,739 1,524,368
Current liabilities:
Lease obligations 28, 29 4,157 3,893
Trade and other payables and deferred revenue 31 106,531 91,925
Income tax payable 6,596 4,242
Total current liabilities 117,28 4 100,060
Total liabilities 1,792,023 1,624,428
Total equity and liabilities 4,6 59,831 4,102,469
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in € thousands)
Notes
Issued
share
capital
Treasury
shares
1
Share
premium
Share-
based
payment
reserve
Distri-
butable
reserves
Other
Compre-
hensive
loss
2
Retained
Earnings
Total
Non-
con-
trolling
interests
Total
equity
On January 1, 2021
(6,994 )
(82,845 )
Proceeds from issuance of equity
21,23
Transaction costs incurred in connection with
issuance of equity
23 - - (27 ) -
(27 ) -
(27 )
Cash dividends on ordinary shares declared and
paid
25 - - - -
(99,50 6 ) -
(99,50 6 ) -
(99,50 6 )
Share-based compensation expense
3
24,33
Sale of treasury shares to option holders
21,22
(1,292 )
Net profit
Other comprehensive gain
On January 1, 2022
(2,209 )
(53,033 )
Proceeds from issuance of equity
21,23
Transaction costs incurred in connection with
issuance of equity
23 - -
(23 ) -
(23 ) -
(23 )
Cash dividends on ordinary shares declared and
paid
25 - -
(106,918 ) -
(106,918 ) -
(106,918 )
Share-based compensation expense
3
24,33
Sale of treasury shares to option holders
21,22
(630 )
Net profit
Other comprehensive loss
(85,389 )
(85,389 )
(85,389 )
On December 31, 2022
(138,422 )
1 In the Statement of Financial Position, the value of our treasury shares is deducted from issued share capital (Notes 21 and 22).
2 Other comprehensive loss as of January 1, 2022 and December 31, 2022 consists only of the foreign currency translation reserve except for a net investment hedge reserve amounting to €4.9 million.
3 Share-based compensation expense for the year ended December 31, 2022 and the year ended December 31, 2021 includes €70,795 and €168,171 in deferred tax assets, respectively.
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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31
(in € thousands) Notes December 31, 2022 December 31, 2021
Operating activities
Profit for the period before tax 761,8 36 624,720
Adjustments to reconcile profit before tax to net cash flows:
Valuation gain on investment property and investment
property under construction
15 (586,181 ) (46 6,575 )
Depreciation and amortization expense 16 2,86 6 2,624
Share-based compensation expense 24,33 4,4 30 2 ,777
Finance cost 9 2 0,785 19,970
Working capital movements:
Change in trade receivables, other current and non-
current assets
11,12 (5,08 1 ) (9,436 )
Change in other current and non-current liabilities and
deferred revenue
18 16,740 13,632
Income tax paid (28,861 ) (26 ,123 )
Cash flows from operating activities 186 ,534 161,589
Investing activities
Capital expenditures on investment property under
construction and completed investment property
14,15 (111,261 ) (81,542 )
Capital expenditures on property, plant and equipment 16 (254 ) (287 )
Acquisition of investment properties and other assets, net 12 (76,533 ) (47,346 )
Proceeds from disposal of investment property, property,
plant and equipment and insurance recovery proceeds
Proceeds from the termination of lease agreements 6,11 2,000 -
Acquisition of intangible assets 16 (2, 654 ) (1,872 )
Cash flows from investing activities (184,005 ) (125,330 )
Financing activities
Proceeds from the issuance of equity 21,23 416 1 ,596
Payment for equity issuance costs 23 (23 ) (27 )
Proceeds from the issuance of Green Notes 27 -
Repayment of Series A 2014 notes issued 27 -
(100,0 00 )
Payment for debt issuance costs 27 -
(1,491 )
Repayment of principal amount of lease obligations 28,29 (4,591 ) (5,770 )
Cash dividends on ordinary shares paid to company’s
shareholders
25 (106,918 ) (99,506 )
Proceeds from the sales of treasury shares 22,24,33 1,580 3,493
Interest paid 27,28,29 (21,844 ) (19,196 )
Cash flows from financing activities (131,380 ) 79,099
Net decrease in cash and cash equivalents (128,851 ) 115,358
Effect of exchange rate fluctuation (2,974 ) 814
Cash and cash equivalents on January 1 219,170 102 ,998
Cash and cash equivalents at the end of the period 8 7,345 219,170
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NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
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TABLE OF CONTENTS
1. Corporate information ..........................................................................................................................................................195
2. Changes in accounting policies and disclosures ...........................................................................................................196
3. Summary of significant accounting policies .................................................................................................................. 197
4. Significant accounting judgements, estimates and assumptions .......................................................................... 208
5. Standards issued but not yet effective ........................................................................................................................... 209
6. Real estate operating revenue ........................................................................................................................................... 211
7. Real estate operating expense ........................................................................................................................................... 211
8. General, administrative and other expenses .................................................................................................................. 212
9. Finance cost, net .................................................................................................................................................................... 212
10. Income tax ................................................................................................................................................................................ 213
11. Segment information ............................................................................................................................................................ 216
12. Acquisition of properties ..................................................................................................................................................... 220
13. Earnings per share (EPS)..................................................................................................................................................... 220
14. Investment property and investment property under construction ....................................................................... 222
15. Fair value measurement – investment property ......................................................................................................... 223
16. Property, plant and equipment and intangible assets ............................................................................................... 227
17. Other non-current assets.................................................................................................................................................... 227
18. Trade and other receivables ............................................................................................................................................... 227
19. Other current assets ............................................................................................................................................................. 228
20. Cash and cash equivalents ................................................................................................................................................. 228
21. Issued share capital .............................................................................................................................................................. 228
22. Treasury shares ..................................................................................................................................................................... 228
23. Share premium ...................................................................................................................................................................... 229
24. Share-based payment reserve .......................................................................................................................................... 229
25. Distributable reserves and distributions made ............................................................................................................. 229
26. Non-controlling interests .................................................................................................................................................... 230
27. Interest-bearing loans and borrowings .......................................................................................................................... 230
28. Leases ....................................................................................................................................................................................... 232
29. Analysis of movements in interest-bearing loans and borrowings ........................................................................ 233
30. Other non-current liabilities .............................................................................................................................................. 233
31. Trade and other payables and deferred revenue ......................................................................................................... 234
32. Pensions ................................................................................................................................................................................... 234
33. Share-based compensation expense .............................................................................................................................. 235
34. Related party disclosures .................................................................................................................................................... 238
35. Financial risk management objectives and policies .................................................................................................... 239
36. Capital management ............................................................................................................................................................ 244
37. Insurance and loss exposure .............................................................................................................................................. 245
38. Contingencies and commitments ..................................................................................................................................... 246
39. List of consolidated entities ............................................................................................................................................... 247
40. Events after the reporting period ..................................................................................................................................... 248
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SIGNIFICANT EVENTS AND TRANSACTIONS
Events and/or transactions significant to an understanding of the changes since December 31, 2021 have been
included in the Notes of these consolidated financial statements and mainly relate to:
Rotterdam relating to one property in the Netherlands, which did not result in the recognition of
any gain or loss. At the same time, the Group acquired a new plot of land for the construction of a
replacement store. The parties agreed that Shurgard will continue using the existing property, until
the new store will be operational;
sqm of storage space in total to its existing owned portfolio;
Munich that we left at the end of November 2022. The termination was anticipated when acquiring
Zeitlager in 2020, accommodating redevelopment plans of the owner of the property. The Group
received €2.0 million compensation from the landlord when it left the property in the last quarter
of 2022;
net rentable sqm of storage space in total to its existing owned portfolio;
rentable sqm of storage space in total to its existing owned portfolio;
net rentable sqm of storage space in total to its existing owned portfolio;
net rentable sqm of storage space in total to its existing owned portfolio.
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it as Shurgard Self Storage Limited pursuant to Guernsey law. This allows legal continuity of the entity, meaning
249
AUDITOR’S REPORT
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250
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of
Shurgard Self Storage S.A.
11, rue de l’Industrie
L-8399 Windhof
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
OPINION
We have audited the consolidated financial statements of Shurgard Self Storage S.A. and its subsidiaries (the
“Group”), which comprise the consolidated statement of financial position as at 31 December 2022, and the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and the notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated
financial position of the Group as at 31 December 2022, and of its consolidated financial performance and
consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union.
BASIS FOR OPINION
We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit
profession (the “Law of 23 July 2016”) and with International Standards on Auditing (“ISAs”) as adopted for
Luxembourg by the “Commission de Surveillance du Secteur Financier” (“CSSF”). Our responsibilities under the
EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs are further described in the “Responsibilities of the
“réviseur d’entreprises agréé” for the audit of the consolidated financial statements” section of our report. We
are also independent of the Group in accordance with the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (“IESBA Code”) as adopted for Luxembourg by the CSSF together with
the ethical requirements that are relevant to our audit of the consolidated financial statements and have fulfilled
our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of the
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of Investment Property including Investment Property under Construction
Description of the key audit matter
As per 31 December 2022, Shurgard Self Storage S.A. and its subsidiaries hold investment property and properties
under construction for a total amount of €4,524 million, representing 97% of the consolidated statement of
financial position of the Group. In accordance with the Group’s accounting policies and IAS 40 “Investment
Property” and IFRS 13 “Fair Value Measurement”, investment property and investment property under
construction are measured at fair value, whereby the changes in fair value are recognized in the Group’s income
statement.
SHURGARD ANNUAL REPORT 2022
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The fair values of investment properties are assessed (by an independent external valuation firm) using a
discounted cash flow model (revenues-costs) over a period of 10 years per property. The management of the
Group and their external specialist use inputs such as store occupancy, net rent and operating expense per square
meter, based on historical data, as well as subjective assumptions such as growth rates in terms of rental revenue
and operating expenses, occupancy and discount rates.
The Group engaged an independent external valuation firm, having specific sector expertise in the markets in
which the Group operates. The third party valuer assists the Group in the determination of the fair value of the
investment property and it performs its work in accordance with the Royal Institution of Chartered Surveyors
(“RICS”) Valuation Professional Standards.
Investment property valuation is considered a key audit matter, because the valuation process is a significant
estimate and is underpinned by a number of factual inputs and assumptions based on a complex calculation
model. The process is subjective and inherently judgmental in nature due to the use of key assumptions which
are based on unobservable data inputs such as discount rates, growth rates and future occupancy rates, as well
as the individual nature of each property and its location.
Auditor’s response
Our procedures over the valuation of investment properties and investment properties under construction include
the following:
We evaluated the competence, independence and capabilities of the independent external valuation firm. We also
read the terms of engagement of the valuer to determine whether there were any matters that might have
affected its objectivity or limited the scope of its work.
We assessed whether the valuation methods as applied by the independent valuer are appropriate for the purpose
of the valuation of the underlying investment properties. We tested the inputs used in the valuation process for
corresponding lease agreements and other relevant documentation. We considered the assumptions used in the
valuation models including the capitalization, discount and terminal yield rates by comparing them against
available market data. Therefore, we involved our real estate specialists as part of the audit team to assess the
assumptions made by the valuer as appropriate.
Finally, we performed analytical procedures to evaluate any unusual variations in the fair values determined
compared to prior year.
We have also assessed the appropriateness and completeness of Note 3 (Summary of significant accounting
policies) and note 14 (Investment property and investment property under construction) and note 15 (Fair value
measurement – investment property) of the consolidated financial statements in accordance with the
requirement of IAS 40 and IFRS 13.
Taxation
Description of the key audit matter
The Group has extensive international operations and in the normal course of business management makes
judgements and estimates in relation to direct and indirect tax issues and exposures. As a result of the
complexities of tax rules and other tax legislation, the accounting for tax exposures is a key judgement.
SHURGARD ANNUAL REPORT 2022
252
The Group is also calculating its deferred taxes in accordance with its Group accounting policies. Deferred taxes
arise due to temporary differences between the values in the tax accounts and the consolidated statement of
financial position. The calculation of deferred taxes takes into account the expected point in time when the assets
and liabilities are expected to be realized or settled. The applied tax rates correspond to those that are enacted
or substantially enacted at the respective location at the balance sheet date. Deferred taxes primarily result from
valuation differences between the fair values of properties and their values for tax purposes. In the calculation of
the deferred taxes, assumptions and estimates are made with regards to the fiscally relevant costs and the fair
values of the properties as well as the tax rates applicable at the time the tax differences are realized.
Auditor’s response
Our procedures included, but were not limited to, evaluating the controls the Group has in place to identify and
quantify its tax exposures. We used our own tax specialists to analyze and challenge the assumptions used to
determine provisions using our knowledge and experience of the application of international and local legislation
by the relevant authorities, and assessed whether the approach applied by the Group is supported by custom and
practice in the industry. We have examined the calculations prepared and agreed assumptions used to underlying
data, and considered the judgements applied including the maximum potential exposure and the likelihood of a
payment being required. We have inspected correspondence with relevant tax authorities to identify tax risk areas
and assessed third party tax advice received to evaluate the conclusions drawn in the advice.
During our audit, we also assessed the calculation of deferred taxes on investment properties with the support
of our tax specialists.
Based on the overall portfolio, we performed, the following audit procedures:
evaluating the calculation method used to determine deferred tax liabilities;
assessing the assumed tax rates applicable to each country.
For a sample identified based on quantitative and qualitative factors, in relation to the deferred taxes arising from
investment properties and investment properties under construction, we performed the following audit
procedures:
reconcile the fair value with the valuation report and the tax value of the relevant investment
property with the fixed asset accounting or the client’s detailed records;
validate the mathematical accuracy of the deferred tax calculation.
We also considered the adequacy of the Group’s disclosures in Note 10 in respect of income tax.
OTHER INFORMATION
The Board of Directors is responsible for the other information. The other information comprises the information
included in the consolidated annual report and the corporate governance statement but does not include the
consolidated financial statements and our report of “réviseur d’entreprises agréé” thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report this fact. We have nothing to report in this regard.
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RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND OF THOSE CHARGED WITH GOVERNANCE FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS as adopted by the European Union, and for such internal control as the Board
of Directors determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
The Board of Directors is also responsible for presenting and marking up the consolidated financial statements
in compliance with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic
Format, as amended (“ESEF Regulation”).
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group
or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
RESPONSIBILITIES OF THE “RÉVISEUR D’ENTREPRISES AGRÉÉ” FOR THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report
of the “réviseur d’entreprises agréé” that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with EU Regulation N° 537/2014, the Law of 23
July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these
consolidated financial statements.
As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as
adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board of Directors.
SHURGARD ANNUAL REPORT 2022
254
Conclude on the appropriateness of Board of Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
report of the “réviseur d’entreprises agréé” to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our report of the “réviseur d’entreprises agréé”.
However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Assess whether the consolidated financial statements have been prepared, in all material respects,
in compliance with the requirements laid down in the ESEF Regulation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities and
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate to them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure
about the matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on 22
February 2022 and the duration of our uninterrupted engagement, including previous renewals and
reappointments, is 6 years.
The consolidated management report is consistent with the consolidated financial statements and has been
prepared in accordance with applicable legal requirements.
The accompanying corporate governance statement on pages 105 to 120 is the responsibility of the Board of
Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002
on the commercial and companies register and on the accounting records and annual accounts of undertakings,
as amended, is consistent with the consolidated financial statements and has been prepared in accordance with
applicable legal requirements.
SHURGARD ANNUAL REPORT 2022
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We have checked the compliance of the consolidated financial statements of the Group as at 31 December 2022
with relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial
statements. For the Group, it relates to:
The XBRL markup of the consolidated financial statements using the core taxonomy and the
common rules on markups specified in the ESEF Regulation.
In our opinion, the consolidated financial statements of the Group as at 31 December 2022, identified as shurgard-
2022-12-31-en.zip, have been prepared, in all material respects, in compliance with the requirements laid down
in the ESEF Regulation.
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided
and that we remained independent of the Group in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Bruno Di Bartolomeo
Luxembourg, February 16, 2023
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256
STAND-ALONE FINANCIAL
STATEMENTS OF SHURGARD
SELF STORAGE S.A. AND
AUDITOR’S REPORT
The below annual accounts have been prepared in euros
SHURGARD ANNUAL REPORT 2022
257
BALANCE SHEET
ASSETS
Reference(s) December 31, 2022 December 31, 2021
B. Formation expenses
1107 (Note 3) 107 3,220,678 108 7,175,662
C. Fixed assets 1109 (Notes 4-5) 109 1,203,802,805 110 831,300,308
I. Intangible assets 1111 (Note 4) 111 -
112 1,385,999
III. Financial assets
1135 (Note 5) 135
1,203,802,805
136
829,914,309
1) Shares in affiliated undertakings 1137 137 1,203,802,805 138 827,704,747
5) Investments held as fixed assets 1145 145 -
146 2,209,562
D. Current assets 1151 (Note 6) 151 848,936 152 3,549,631
II. Debtors 1163 (Note 6) 163 93,507 164 127,703
1) Trade debtors
1165 (Note 6) 165
5,822
166
23,716
a) becoming due and payable within
one year
1167
167 5,822 168 23,716
2) Amounts owed by affiliated
undertakings
1171 171 87,685 172 103,987
a) becoming due and payable within
one year
1173 173 87,685 174 103,987
IV. Cash at bank and in hand 1197 197 755,429 198 3,421,928
E. Prepayments 1199 199 53,883 200 29,920
TOTAL (ASSETS) 201 1,207,926,302 202 842,055,521
CAPITAL, RESERVES AND LIABILITIES
Reference(s) December 31, 2022 December 31, 2021
A. Capital and reserves
1301 (Notes 7-9) 301 1,207,125,737 302 840,378,985
I. Subscribed capital 1303 (Note 7) 303 63,610,156 304 63,592,365
II. Share premium account 1305 (Note 7) 305 559,984,780 306 559,586,298
IV. Reserves 1309 (Note 8) 309 146,277,202 310 253,195,409
2) Reserve for own shares -
314 2,209,562
3) Other reserves, including the fair value
reserve
146,277,202
250,985,847
a) other available reserves
146,277,202
432
250,985,847
V. Profit or loss brought forward 1319 (Note 9) 319 (35,995,087) 320 (26,883,226)
VI. Profit or loss for the financial year 1321 (Note 9) 321 473,248,686 322 (9,111,861)
B. Provisions 1331 (Note 11) 331 -
332 814,678
C. Creditors 1435 (Note 12) 435 800,565 436 861,858
6. Amounts owed to affiliated undertakings 1379 355 -
356 7,480
a) becoming due and payable within one
year
1381 357 -
382 7,480
8. Other creditors 1451 (Note 12) 451 800,565 452 854,378
a) Tax authorities 1393 393 9,420 394 15
b) Social security authorities 1395 395 8,441 396 40,656
c) Other creditors 1397 397 782,704 398 813,707
(i) becoming due and payable within
one year
1399 399 782,704 400 813,707
TOTAL (CAPITAL, RESERVES AND LIABILITES) 405 1,207,926,302 406 842,055,521
The notes in the annex form an integral part of the accounts.
SHURGARD ANNUAL REPORT 2022
258
PROFIT AND LOSS ACCOUNT
Reference(s) December 31, 2022 December 31, 2021
1. to 5. Gross profit or loss
1701 (Note 13) 701 22,106 702 (1,027,883)
6. Staff costs 1605 (Note 14) 605 (1,706,109) 606 (1,520,494)
a) Wages and salaries 1607 607 (1,455,981) 608 (1,364,459)
b) Social security costs 1609 609 (40,836) 610 (54,094)
ii) other social security costs 1655 655 (40,836) 656 (54,094)
c) Other staff costs 1613 613 (209,292) 614 (101,941)
7. Value adjustments 1657 657 (5,363,686) 658 (5,499,579)
a) in respect of formation expenses and of
tangible and intangible fixed assets
1659 (Notes 3-4) 659 (5,363,686) 660 (5,499,579)
8. Other operating expenses 1621 (Note 15) 621 (2,870,809) 622 (2,132,061)
9. Income from participating interests 1715 (Note 16) 715 483,098,058 716 -
b) derived from affiliated undertakings 1717 717 483,098,058 718 -
11. Other interest receivable and similar
income
1727 (Note 17) 727 814,678 728 2,501,085
b) other interest and similar income 1731 731 814,678 732 2,501,085
14. Interest payable and similar expenses 1627 (Note 18) 627 (731,330) 628 (1,428,109)
b) other interest and similar income 1631 631 (731,330) 632 (1,428,109)
15. Tax on profit or loss 1635 (Note 19) 635 (14,220) 636 (4,820)
16. Profit or loss after taxation 1667 667 473,248,686 668 (9,111,861)
18. Profit or loss for the financial year 1669 669 473,248,686 670 (9,111,861)
The notes in the annex form an integral part of the accounts.
SHURGARD ANNUAL REPORT 2022
259
NOTES TO THE ANNUAL ACCOUNTS AS OF DECEMBER 31, 2022
NOTE 1 – GENERAL INFORMATION
Shurgard Self Storage S.A. (referred to as the “Company”, “we”, “our”, or “us”) is organized under the laws of the
Grand Duchy of Luxembourg and has its registered office and principal place of business at 11 Rue de l’ Industrie,
L-8399 Windhof. The Group has been listed on Euronext Brussels since October 15, 2018.
As of December 31, 2022, our shareholders are Shurgard European Holdings LLC (“SEH LLC”), a limited liability
company incorporated in 2008 in Delaware, United States (“U.S.”), which owns 36.88% of the interest in the
Company, Public Storage (“PS”), which owns 0.17% direct interest and 34.54% indirect in the Company through
its wholly owned subsidiary HABF 2017, Inc. The New York Common Retirement Fund (“NYCRF”) and Public Storage
(“PS”) own 99.0% and 1.0%, respectively, of the interest in SEH LLC. The remaining 28.41% of the Company’s
ownership is held by the public.
The Company’s main activities include funding, guarantees and/or securities delivery, as well as any other form
of financing to the affiliated undertakings forming part of the group of the Company and the acquisition and
management of participations. It can borrow and lend under any form, even on a subordinated basis, and proceed
to bond issues or subscriptions. The Company delivers financial or investment services of any kind to the affiliated
undertakings of the group. As a rule, it can take all control or supervision measures and proceed to any financial,
estate or real estate, commercial or industrial transaction that will be useful for the achievement and the
development of its corporate objectives.
The Company prepares audited consolidated financial statements in accordance with International Financial
Reporting Standards (“IFRS”), as endorsed by the EU. These consolidated financial statements are filed at the
Luxemburg Chambre de Commerce (RCS).
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION AND GOING CONCERN
The annual accounts have been prepared in accordance with the Law of December 19, 2002, as subsequently
amended, on a going concern basis.
In February 2022, a number of countries (including the US, UK and EU) imposed sanctions against certain entities
and individuals in Russia as a result of the official recognition of the Donetsk People Republic and Lugansk People
Republic by the Russian Federation. Announcements of potential additional sanctions have been made following
military operations initiated by Russia against the Ukraine on February 24, 2022.
The situation, together with growing turmoil from fluctuations in commodity prices and foreign exchange rates,
and the potential to adversely impact global economies, has driven a sharp increase in volatility across markets.
Although neither the Company’s performance and going concern nor operations, at the date of this report, have
been significantly impacted by the above, nevertheless, the Board of Managers continues to monitor the evolving
situation and its impact on the financial position of the Company.
SHURGARD ANNUAL REPORT 2022
260
2.2 SIGNIFICANT ACCOUNTING POLICIES
The main valuation rules applied by the Company are the following:
2.2.1. FORMATION EXPENSES
Formation expense relating to the creation of the share capital are carried at purchase or acquisition price
including the expenses incidental thereto, less accumulated amortization. The Company amortizes its formation
expenses on a straight-line
basis over the five years estimated useful life of the assets.
2.2.2. GOODWILL
Goodwill is carried at purchase or acquisition price including the expenses incidental thereto, less accumulated
amortization. The Company amortizes its goodwill on a straight-line
basis over the five years estimated useful
life of the assets.
2.2.3. FINANCIAL ASSETS
Shares in affiliated undertakings are valued at acquisition cost including the expenses incidental thereto. In case
of a durable diminution in value according to the opinion of the Board of Managers, value adjustments are made,
so that they are valued at the lower figure to be attributed to them at the balance sheet date. These value
adjustments are not continued if the reasons for which they were made have ceased to apply.
Loans to affiliated undertakings are valued at nominal value. At the end of each financial year, a value adjustment
is made for any durable decrease in value, which is considered to be an impairment in value, based on an
evaluation of each individual loan. These value adjustments are not continued if the reasons for which they were
made have ceased to apply.
2.2.4. DEBTORS
Debtors are valued at their nominal value. They are subject to value adjustments where their recovery is partially
or fully compromised. These value adjustments are not continued if the reasons for which they were made have
ceased to apply.
2.2.5. FOREIGN CURRENCY TRANSLATION
The Company maintains its accounting records in euros (“€”) and its annual accounts are expressed in that
currency.
Balances denominated in foreign currencies are translated into euro as follows:
Assets and liabilities in other currencies are translated into euro at the rate prevailing on the balance
sheet date except for intangible and financial assets which are recorded at the historical exchange
rate. Income and expense transactions are recorded at the rate prevailing on the dates of the
transactions.
Realized gains and losses and unrealized losses are reflected in the profit and loss account. Unrealized
gains are not recognized in the profit and loss account, except for the reversal of previously recognized
unrealized losses.
SHURGARD ANNUAL REPORT 2022
261
Note 2 - Summary of significant accounting policies (continued)
2.2.6. CREDITORS
Creditors are valued at their nominal value.
2.2.7. PROVISIONS
Provisions for liabilities and charges are intended to cover losses or debts the nature of which is clearly defined
and which, at the date of the balance sheet, are either likely or certain to be incurred but uncertain as to their
amount or as to the date on which they will arise.
Provisions may also be created in order to cover charges which have their origin in the financial year under review
or in a previous financial year, the nature of which is clearly defined and which, at the date of the balance sheet,
are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on
which they will arise.
Provisions are assessed at year end. Provisions recorded in the previous years are reassessed each year and
reversed if the reasons for which they were made have ceased to apply.
2.2.8. PREPAYMENTS
This caption includes expenditures incurred during the financial year but relating to a subsequent financial year
and capitalized debt financing costs which are amortized according to the straight-line method until the maturity
of the debt.
2.2.9. DEFERRED INCOME
This caption includes income received during the financial year but relating to a subsequent financial year.
2.2.10. VALUE ADJUSTMENTS
Value adjustments are deducted directly from the related asset.
SHURGARD ANNUAL REPORT 2022
262
NOTE 3 – FORMATION EXPENSES
Formation expenses of €3,220,678 (€7,175,662 as of December 31, 2021) consist of costs incurred in connection
with the IPO and the issuance of new shares.
The movements for the year ended December 31, 2022 and the year ended December 31, 2021 were as follows:
December 31, 2022 December 31, 2021
Cost of capital increase
At the beginning of the year 19,874,635 19,846,876
Additions 22,703 27,759
At the end of the period 19,897,338 19,874,635
Accumulated amortization
At the beginning of the year 12,698,973 8,727,035
Amortization for the period 3,977,687 3,971,938
At the end of the period 16,676,660 12,698,973
Net book value
At the beginning of the year 7,175,662 11,119,841
At the end of the period 3,220,678 7,175,662
SHURGARD ANNUAL REPORT 2022
263
NOTE 4 – INTANGIBLE ASSETS
The gross amount of intangible assets consists of goodwill recognised in connection with the November 27, 2017
merger of the Company with its subsidiary SSC Luxembourg S.à r.l (€7,487,774) and the December 5, 2017 merger
of the Company with its subsidiary Shurgard Self Storage Luxembourg S.à r.l (€150,428).
The movements for the year ended December 31, 2022 and the year ended December 31, 2021 were as follows:
December 31, 2022 December 31, 2021
Cost of acquisition
At the beginning of the year 7,638,202 7,638,202
Additions
Eliminated on disposal (7,638,202) -
At the end of the period -
7,638,202
Accumulated amortization
At the beginning of the year 6,252,203 4,724,562
Amortization for the period 1,385,999 1,527,641
Eliminated on disposal (7,638,202) -
At the end of the period -
6,252,203
Net book value
At the beginning of the year 1,385,999 2,913,640
At the end of the period -
1,385,999
SHURGARD ANNUAL REPORT 2022
264
NOTE 5 – FINANCIAL ASSETS
Shares in affiliated undertakings
Details of the shares in affiliated undertakings held and movements in the period ended December 31, 2022 are as follows:
Shares
Country
Portion of capital held as
of December 31, 2022
Net book value as of
December 31, 2021
Increases /
(decreases) during
the year
Net book value as of
December 31, 2022
Shareholders’
equity as of
December 31, 2022
Profit / (loss) for
the year ended
December 31, 2022
Shurgard Self Storage S.A. treasury shares
1
Luxembourg N/A 2,209,562 (2,209,562) -
N/A N/A
Shurgard Luxembourg S.à r.l.
2,3
Luxembourg 100% 827,704,747 (481,889,071) 345,815,676 344,827,908 521,974,217
Shurgard UK Ltd
3
UK 100% -
857,987,129 857,987,129 622,530,776
4
98,929,353
4
829,914,309 373,888,496 1,203,802,805
1 As of December 31, 2021, the Company owned 70,771 treasury shares with a book value of €2,209,562 that have been used in 2022 to satisfy the exercise of an equal amount of share options (Note 10).
2 On October 19, 2022, the Board of Directors of Shurgard Luxembourg S.à r.l. agreed on a reduction in kind of its share premium of €107,000,000 in favor of the Company, consisting of a reduction of a payable in the same amount due by the Company to Shurgard
Luxembourg S.à r.l. In the accounts of the Company, the share premium reduction has been accounted for as a reduction of its investment in Shurgard Luxembourg S.à r.l.
3 On December 9, 2022, Shurgard Luxembourg S.à r.l. distributed a dividend of €483,098,058 from its distributable reserves and made a share premium reimbursement to the Company of €374,889,071. On the same date, the Company acquired all the interest held
by Shurgard Holding Luxembourg S.à r.l. in Shurgard UK Ltd at the fair value of €857,987,129
4 Shareholders’ equity and profit for the year for Shurgard UK Ltd are derived from the 2021 annual accounts.
The Management assessed the financial position and performance of the affiliated undertakings owned and as a result thereof is of the opinion that no permanent impairment has been triggered
as of December 31, 2022.
SHURGARD ANNUAL REPORT 2022
265
NOTE 6 – DEBTORS
Debtors becoming due and payable of €93,507 as of December 31, 2022 consists of €87,685 receivables from
affiliated undertakings and €5,822 trade receivables.
Debtors becoming due and payable of €127,703 as of December 31, 2021 consisted of €103,987 receivables from
affiliated undertakings and €23,176 trade receivables.
NOTE 7 – SUBSCRIBED CAPITAL AND SHARE PREMIUM
As of December 31, 2022, the Company’s share capital and share premium are €63,610,156 (€63,592,365 as of
December 31, 2021) and €559,984,780 (€559,586,298 as of December 31, 2021), respectively.
During the year ended December 31, 2022, in connection with the exercise of options under the Company’s share
option plans, the Company issued 24,929 new shares to satisfy the exercise of stock options under various
Group’s stock option plans. Of the €416,273 subscription price, €17,791 has been allocated to share capital and
€398,482 has been allocated to share premium.
NOTE 8 - RESERVES
As of December 31, 2021, the Company’s reserves of €253,195,409 consist of (i) €2,209,562 reserves for own
shares and (ii) €250,985,847 other available (distributable) reserves.
On May 4, 2022, the shareholders of the Company approved the distribution of a final cash dividend for 2021 for
an amount of sixty-two eurocents (€0.62) per share, resulting in an aggregate dividend distribution for an
amount of €55,228,937 from the other available (distributable) reserves (the “Annual Dividend”). The payment
of the Annual Dividend occurred on May 12, 2022.
On August 18, 2022, the distributable reserves were reduced by €51,689,270 in connection with the distribution
of the interim dividend for 2022 of €0.58 per ordinary share, paid on September 29, 2022.
In connection with the exercise of 70,771 share options that were satisfied using treasury shares during the year
ended December 31, 2022, the Company reduced its reserves for own shares by €2,209,562 and increased the
other available (distributable) reserves accordingly.
As of December 31, 2022, the Company’s reserves consist of €146,277,202 other available (distributable) reserves.
NOTE 9 – PROFIT OR LOSS FOR THE PERIOD AND BROUGHT
FORWARD
The company recognized a profit of €473,248,686 during the year ended December 31, 2022 (a loss of €9,111,861
during the year ended December 31, 2021, which has been brought forward).
SHURGARD ANNUAL REPORT 2022
266
NOTE 10 – SHARE OPTIONS GRANTED UNDER THE 2021 PLAN
In connection with a new equity compensation plan approved on February 23, 2021, the Group granted on July
18, 2022, 19,000 share options at an exercise price of €46.81.
These options have a two-stage vesting period with (i) 60% of the stock options vesting three years from the
option grant date, and (ii) the remaining 40% of the stock options will vest after a period of five years after the
date they are being offered.
NOTE 11 - PROVISIONS
Under various share-based compensation plans, the Company has issued shares options in 2015, 2017, 2018 and
2021, of which 10,000, 154,500, 712,000 and 1,851,000 options, respectively, (or 2,727,500 options in total) were
outstanding as of December 31, 2021.
As of December 31, 2021, the provision for future loss on exercise of share options was €814,678.
During the year ended December 31, 2022, the 70,771 treasury shares have been used to satisfy the exercise of
32,271 share options granted under the 2017 plan and 38,500 share options granted under the 2018 plans, and
the €814,678 provision for future loss on the exercise of share options has been reversed and partially recharged
to affiliated entities accordingly (Note 13).
As of December 31, 2022, 112,300, 668,500 and 1,861,000 options, respectively, were outstanding under the
2017, 2018 and 2021 share option plans (or 2,641,800 options in total).
NOTE 12 – CREDITORS
December 31, 2022 December 31, 2021
Amounts payable to affiliated undertakings - 7,480
Accrued bonus and social security expense 202,867 203,975
Income tax payable 9,420 15
Accounts payable 8,550 -
Accrued consultancy fees 184,941 354,371
Invoices to receive 394,787 296,017
800,565 861,858
SHURGARD ANNUAL REPORT 2022
267
NOTE 13 – GROSS PROFIT OR LOSS
Gross profit of €22,106 for the year ended December 31, 2022 consists of the recharge of (i) €814,678 related to
the provision for future exercise of share options, (ii) €629,913 loss effectively incurred on the sale of treasury
shares that is attributable to other affiliated entities (Note 17) and (iii) €174,871 Director’s liability insurance
premiums that are partially recharged to affiliated entities (Note 15).
In addition, the Company realised fee income of €32,000 that was charged to an affiliate.
Gross loss of €1,027,883 for the year ended December 31, 2021 consisted of the recharge of (i) €2,474,547 related
to the provision for loss on future exercise of share options that is attributable to other affiliated entities (Note
10), (ii) €1,291,575 loss from the sale of treasury shares (Note 17) and (iii) €155,089 Director’s liability insurance
premiums that are partially recharged to affiliated entities (Note 15).
NOTE 14 – STAFF COSTS
During the year ended December 31, 2022, the Company employed one full time employee (two full time
employees in 2021) and five part-time employees (five part-time employees in 2021) for whom it incurred the
following staff costs:
December 31,
2022
December 31,
2021
Gross payroll
337,446
565,066
Director’s fees
839,950
676,252
External staff
149,814
-
Employers‘ social security
40,836
54,094
Bonus expense
278,585
123,141
Other staff costs
1
59,478
101,941
1,706,109
1,520,494
1 Other staff costs consist mainly of pension plan expenses and other social benefits.
SHURGARD ANNUAL REPORT 2022
268
NOTE 15 – OTHER OPERATING EXPENSES
Other operating expenses consist of the following:
December 31, 2022 December 31, 2021
Lawyer’s, tax and other consultancy fees 552,494 454,082
Travel expense, irrecoverable VAT and other expenses 679,607 474,494
Centralized support service charges recharged by affiliated
undertakings
1,211,684 796,683
Auditor’s fees 71,424 62,623
Insurance expense – D&O
1
181,470 160,915
Public relations 23,837 66,702
Membership (association) fees 150,293 116,562
2,870,809 2,132,061
1 Director’s liability insurance premiums are partially recharged to affiliated entities. This recharge is disclosed in the caption “Gross profit or loss” in the profit
and loss account.
NOTE 16 – INCOME FROM PARTICIPATING INTERESTS
On December 9, 2022, Shurgard Luxembourg S.à r.l. distributed a dividend consisting of €483,098,058 from its
profit reserves (Note 5).
In the accounts of the Company, the distribution of the profit reserves has been recognized as dividend income
from an affiliated undertaking.
NOTE 17 – OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
The Company reversed during the year ended December 31, 2022 its €814,678 provision for future loss on exercise
of share options (Note 10 and Note 12).
The Company decreased during the year ended December 31, 2021 its provision for future loss on exercise of
share options by €2,501,085 to €814,678 (Note 10).
SHURGARD ANNUAL REPORT 2022
269
NOTE 18 – INTEREST PAYABLE AND SIMILAR EXPENSES
December 31, 2022 December 31, 2021
Loss on sale of Treasury Shares
1
629,913 1,291,575
Bank charges 9,511 54,640
Fees paid to (share) liquidity providers 84,037 69,880
Bank interest 820 6,262
Realized exchange losses 7,049 5,752
731,330 1,428,109
1 In the year ended December 31, 2022, in connection with the exercise of 70,771 share options that were granted in 2017 and 2018, the Company sold to the
option holders an equal number of Treasury Shares for €1,579,649 at a loss of €629,913.
In the year ended December 31, 2021, in connection with the exercise of 21,250 share options that were granted in 2017 and 132,000 share options that were
granted in 2018, the Company sold to the option holders an equal number of Treasury Shares for €3,493,088 at a loss of €1,291,575.
NOTE 19 – TAX ON PROFIT OR LOSS
The Company is subject to the general tax regulations applicable to all commercial companies in Luxembourg.
NOTE 20 – EVENTS AFTER THE REPORTING PERIOD
We have evaluated subsequent events through February 16, 2023, which is the date the financial statements
were available for issuance.
On November 3, 2022, the Company announced its intention to become a United Kingdom Real Estate Investment
Trust in March 2023 and called for an extraordinary shareholder meeting on December 6, 2022. In that meeting,
99.5% of the votes cast approved the plan of migrating Shurgard Self Storage S.A. to Guernsey and incorporating
it as Shurgard Self Storage Limited pursuant to Guernsey law. This allows legal continuity of the entity, meaning
that all rights and obligations of Shurgard Self Storage S.A. are maintained. Subsequently, UK tax residence will
be established, with central management and control of the Group being exercised through the Board of Directors
of Shurgard Self Storage Limited, located in the United Kingdom. The legal migration from Luxembourg to
Guernsey will have no impact on the Group’s listing at Euronext in Brussels, nor on the financial reporting, which
will continue to be done under International Financial Reporting Standards (IFRS), as adopted by the European
Union, and in Euro. Save for reflecting the move to Guernsey and the transition to a UK REIT in the new
memorandum and articles of incorporation, the governance structure of the Group will remain. The migration to
Guernsey and establishment of central management and control by a UK based Board of Directors is expected to
occur on February 17, 2023.
No significant other events occurred after the balance sheet date.
SHURGARD ANNUAL REPORT 2022
270
SHURGARD SELF STORAGE
SOCIÉTÉ ANONYME
11
RUE DE L’ INDUSTRIE
L
– 8399 WINDHOF
R.C.S.
LUXEMBOURG B 218 238
(the « Company »)
ANNUAL REPORT BY THE BOARD OF DIRECTORS
TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF MAY 10, 2023
We are pleased to report on the operations of the Company for the year 2022 and to submit for your approval
the annual accounts for the financial year ended on December 31, 2022.
1. OVERVIEW
The Company is a public limited company (“
société anonyme’
”) organized under the laws of the Grand Duchy of
Luxembourg with registered office and principal place of business of the Companyat 11 Rue de l’ Industrie, L-
8399 Windhof.
As of December 31, 2021, the subscribed capital of the Company was €63,592,365, divided into eighty-nine million
one hundred and six thousand two hundred and two (89,106,202) shares without nominal value, all of which are
fully paid up, including seventy-thousand seven hundred and seventy-one (70,771) own shares held as treasury
shares.
During 2022, the Company issued 24,929 new shares to satisfy the exercise of stock options under the Group’s
stock option plans. Of the €416,273 subscription price, €17,791 has been allocated to share capital and the
remainder, €398,482 has been allocated to share premium.
During 2022, the Company used the 70,771 treasury shares in connection with the exercise of share options
granted under the 2017 and 2018 share option plans.
As of December 31, 2022, the subscribed capital of the Company was €63,610,156, divided into eighty-nine million
one hundred thirty-one thousand one hundred thirty-one (89,131,131) shares without nominal value, all of which
are fully paid up.
As of December 31, 2021, the distributable reserves of the Company were €250,985,847.
On May 5, 2022, the shareholders of the Company approved the distribution of a cash dividend for 2021 of sixty-
two eurocents (€0.62) per share, resulting in an aggregate dividend distribution in an amount of €55,228,937
from the other available (distributable) reserves (the “Annual Dividend”). The payment of the Annual Dividend
occurred on May 12, 2022.
On August 18, 2022, the Board of Directors resolved to declare and pay in respect of the first six months of 2022
an interim dividend of fifty-eight eurocents (€0.58) per share, resulting in an aggregate interim dividend
distribution in an amount of €51,689,270 (the “Interim Dividend”). The Interim Dividend was paid on September
29, 2022 from the other available (distributable) reserves
.
SHURGARD ANNUAL REPORT 2022
271
In connection with the exercise of 70,771 share options that were satisfied using treasury shares during the year
ended December 31, 2022, the Company reversed its remaining reserves for own shares by €2,209,562 and
increased the other available (distributable) reserves accordingly.
As of December 31, 2022, the distributable reserves of the Company were €146,277,202.
2. THE RESULT OF THE YEAR
During the year ended December 31, 2022, the Company realised a profit of €473,248,686.
Taking into account the loss brought forward from the previous year amounting to €35,995,087 the profit to be
allocated amounts to €437,253,599, which we suggest to allocate as follows:
Profit of the year € 473,248,686
Losses brought forward
€
(35,995,087)
Net profit to be allocated € 437,253,599
Allocation to the legal reserve
€
(6,361,016)
Allocation to the distributable reserves € (430,850,000)
Profit to be carried forward
€
(42,583)
Considering that the other available (distributable) reserves amount to €146,277,202 as of December 31, 2022
and the proposed allocation above, the amount available for distribution is €577,169,785. We suggest to submit
to the Annual General Meeting of shareholders a proposal to approve the distribution from the other available
(distributable) reserves of a total dividend amount of €52,587,367 (or €0.59 per share) taking into account the
total number of outstanding shares as per December 31, 2022. This amount corresponds to a dividend of €1.17
per share for 2022, less the interim dividend of €0.58 per share that was paid on September 29, 2022.
As of December 31, 2022, the Company’s total assets amount to €1,207,926,302.
The assets of the Company comprise €3,220,678 formation expenses, €1,203,802,805 of financial assets,
consisting of shares in its affiliated undertakings Shurgard Luxembourg S.à r.l. (“Shurgard Luxembourg”) for
€345,815,676 and Shurgard UK Ltd for €858,987,129, and €848,936 of current assets (cash at bank as well as
amounts owed by affiliated undertakings and in hand and prepaid expenses).
3. RESEARCH AND DEVELOPMENT
There were no research and development activities during the financial year.
4. OWN SHARES
As of December 31, 2021, the Company directly held 70,771 own shares as treasury shares with book value of
€2,209,562, for which the Company created an unavailable reserve for own shares of the same amount.
During the year ended December 31, 2022, the Company sold these 70,771 treasury shares to certain employees
for €1,579,649 at a loss of €629,913 in connection with the exercise of 32,271 share options granted under the
2017 plan and 38,500 options granted under the 2018 plan.
As of December 31, 2022, the Company does not hold any own shares.
SHURGARD ANNUAL REPORT 2022
272
5. ALLOCATION OF FREE SHARES
During the year ended December 31, 2022, the Company did not grant any share options for free to employees
and executives of the Company and its subsidiaries.
6. SHARE OPTIONS GRANTED UNDER THE 2021 SHARE OPTION PLAN
In connection with the equity compensation plan approved on February 23, 2021, the Company granted on July
18, 2022, 19,000 stock options at an exercise price of €46.81.
Similar to the options granted in 2021 under the same plan, these options have a two-stage vesting period with
(i) 60% of the stock options vesting 3 years after the date they are being offered; and (ii) the remaining 40% of
the stock options will vest after a period of 5 years after the date they are being offered.
7. AUDITOR’S FEES
During the year ended December 31, 2022, Ernst & Young S.A. as “
Réviseur d’Entreprises agréé
” did not charge
to the Company any amounts for exceptional services or the performance of special assignments.
8. PRINCIPAL RISKS, UNCERTAINTIES, OUTLOOK AND NON-FINANCIAL STATEMENT
Principal risks and uncertainties, outlook and non-financial key performance indicators are disclosed in the
consolidated financial statements and the related management report.
9. INTRA-GROUP FACILITIES
In connection with and to finance the payment of the Annual Dividend and the Interim Dividend, the Company
received during the year ended December 31, 2022 cash advances from Shurgard Luxembourg totaling
€107,000,000.
On October 9, 2022, the Board of Managers of Shurgard Luxembourg S.à r.l. agreed on a share premium reduction
in kind of €107,000,000 in favour of the Company. In the accounts of the Company, the share premium reduction
has been accounted for as a reduction of its investment in Shurgard Luxembourg S.à r.l. and a reduction in the
amount of cash advances outstanding.
During the year ended December 31, 2022, there were no other loans granted to or by affiliated undertakings.
10. SHARES IN AFFILIATED UNDERTAKINGS
The net book value of the Company’s shareholdings in Shurgard Luxembourg S.à r.l. as of December 31, 2022 and
2021 amounts to €345,815,676 and €827,704,747.
On October 9, 2022, the shareholding in Shurgard Luxembourg S.à r.l. have been decreased in connection with a
share premium reduction in kind conducted by Shurgard Luxembourg S.à r.l. for an amount of €107,000,000.
On December 9, 2022, the Company acquired all the interest held by Shurgard Holding Luxembourg S.à r.l. in
Shurgard UK Ltd at the fair value of €857,987,129. At the same time, Shurgard Luxembourg S.à r.l. distributed a
dividend of €483,098,058 from its profit reserves and reimbursed €374,889,071 of share premium to the
Company.
The repayment of the share premium has been accounted for as a reduction of its investment in Shurgard
Luxembourg S.à r.l. for the same amount.
As of December 31, 2022, the Company did not recognize any impairment losses on its shareholdings in affiliated
undertakings.
SHURGARD ANNUAL REPORT 2022
273
11. COMPANY BRANCHES
During the financial year, the Company did not own or create any Company branches.
12. CORPORATE GOVERNANCE
The information on the corporate governance of the Company is disclosed in the consolidated financial
statements and the related management report.
More information on this topic can also be found in the “Corporate” section of the Company’s website
(www.shurgard.eu). It contains the Company’s corporate governance charter, and information such as the latest
version of the Company’s governance documents (articles of association), and information on the composition
of the board of directors. The “Corporate” section also contains the financial calendar and other information that
may be of interest to shareholders.
13. LUXEMBOURG TAKEOVER LAW DISCLOSURE
The Company is required to make the following disclosures in compliance with article 11 of the Luxembourg Law
of May 19, 2006, transposing Directive 2004/25/EC of the European Parliament and of the Council of April 21,
2004, on takeover bids (the “Transparency Law”):
(a) Capital Structure
The Company has issued a single category of shares (ordinary shares). As of December 31, 2022, the share capital
was set at €63,610,156 divided into 89,131,131 shares, with no nominal value. The share capital has been fully
paid up. The shares exist in dematerialized form (
titres dématérialisés
) and have been issued pursuant to
Luxembourg law. According to Article 7.1 of the Company’s Articles of Association each share entitles to one vote.
With the Company’s IPO on October 15, 2018, all shares were admitted to trading on the regulated market of
Euronext Brussels. The shareholder structure as of December 31, 2022 is set out in the Share Capital section of
this Management Report.
(b) Restrictions on the transfer of securities
The Company shares are freely transferable in accordance with the legal requirements for dematerialized shares.
The Board of Directors may, however, impose transfer restrictions for shares that are registered, listed and
admitted to trading, quoted, dealt in or have been placed in certain jurisdictions in compliance with the
requirements applicable therein. The transfer of a dematerialized share occurs by book-entry.
(c) Direct and indirect shareholdings
The ownership in the Company by each shareholder who is known to be the (direct or indirect) holder of shares
of the Company representing 5% or more of the Company's voting rights is as follows:
Shareholder
Number
%
NYSCRF
32,544,722
36.5
Public Storage
31,268,459
35.1
Public
25,317,950
28.4
Total
89,131,131
100.0
(d) Special control rights
All the issued and outstanding shares in the Company have equal voting rights and there are no special control
rights attached to the shares. As per article 7.1 of the Articles of Association of the Company each share is entitled
to one vote.
SHURGARD ANNUAL REPORT 2022
274
(e) Control system of employee share schemes
The Board of Directors is not aware of any system of control of any employee share scheme where the control
rights are not exercised directly by the employees.
(f) Restrictions on voting rights
In general, there are no restrictions on the voting rights of the Company shares. However, the sanction of
suspension of voting rights automatically applies to any shareholder (or group of shareholders) who has (or have)
crossed the thresholds set out in articles 8 to 15 of the Transparency Law but have not notified the Company
accordingly. The sanction of suspension of voting rights will apply until the notification has been properly made
by the relevant shareholder(s).
(g) Appointment / replacement of board members and Amendments of the Articles of Association
According to Articles 9.1 to 9.3 of our Articles of Association, the Company shall be managed by a Board of
Directors. Each Director will be appointed by the General Meeting. The General Meeting shall determine the
number of Directors, and the duration of their mandate is set at one year. Each Director is eligible for re-
appointment and may be removed at any time, with or without cause by a resolution of the General Meeting. In
the event of a vacancy on the Board of Directors, the remaining Directors may elect by co-optation a new Director
to fill such vacancy until the next General Meeting, which shall ratify such co-optation or elect a new Director
instead.
An amendment of our Articles of Association must be adopted by an extraordinary resolution at a General
Meeting in front of a Luxembourg public notary. A two-thirds majority of the votes cast by the shareholders
present or represented is required. Our Articles of Association do not provide for any specific conditions that are
stricter than required by Luxembourg law.
(h) Powers of Board Members
According to Article 10 of our Articles of Association, the Board of Directors is vested with the broadest powers
to perform all acts necessary or useful to accomplish the Company's object. All powers not expressly reserved by
the Articles of Association or by the Laws to the General Meeting or to the Auditor(s) shall be within the
competence of the Board of Directors.
As of December 31, 2022, according to Article 6.1 of our Articles of Association, the authorized capital of the
Company (including the issued share capital) was set at €95,800,730 divided into 134,236,856 shares without
nominal value. According to Article 6.2 of our Articles of Association, the Board of Directors is authorized, up to
the maximum amount of the authorized capital, to:
- increase the issued share capital in one or several tranches with or without share premium, against payment
in cash or in kind, by conversion of claims on the Company or in any other manner;
- issue subscription and/or conversion rights in relation to new shares or instruments under the terms and
conditions of warrants (which may be separate or linked to shares, bonds, notes or similar instruments
issued by the Company), convertible bonds, notes or similar instruments;
- determine the place and date of the issue or successive issues, the issue price, the terms and conditions of
the subscription of and paying up on the new shares and instruments; and
- remove or limit the statutory preferential subscription right of the shareholders.
The above authorizations are valid until September 26, 2023, which corresponds to a period ending five years
after the date of the General Meeting creating the authorized capital. The above authorizations may be renewed,
increased or reduced by a resolution of the General Meeting with a two-thirds majority of the votes cast by the
shareholders present or represented.
SHURGARD ANNUAL REPORT 2022
275
(i) Change of control agreements
If a change of control occurs, each individual lender under the €250 million revolving facility entered into in 2018,
may cancel its commitment by not less than a 30 days’ notice and require repayment of its share in all
outstanding loans. The outstanding U.S. Private Placement Notes requires us to make an offer to prepay all
outstanding U.S. Private Placement Notes if, within a period of 90 days following the occurrence of a change of
control, the rating assigned to the U.S. Private Placement Notes (or any other of our unsecured and
unsubordinated indebtedness having an initial maturity of five years or more) immediately prior to the change
of control is lowered below investment grade and/or withdrawn(or, in absence of any rated U.S. Private
Placement Notes, we fail to obtain an investment grade rating of such rated debt instruments).
(j) End of employment compensation
There are no agreements between the Company and its Board members or employees providing for
compensation if they resign or are made redundant without valid reason or if their employment ceases because
of a takeover bid.
14. EVENTS AFTER THE CLOSING
On November 3, 2022, the Company announced its intention to become a United Kingdom Real Estate Investment
Trust in March 2023 and called for an extraordinary shareholder meeting on December 6, 2022. In that meeting,
99.5% of the votes cast approved the plan of migrating Shurgard Self Storage S.A. to Guernsey and incorporating
it as Shurgard Self Storage Limited pursuant to Guernsey law. This allows legal continuity of the entity, meaning
that all rights and obligations of Shurgard Self Storage S.A. are maintained. Subsequently, UK tax residence will
be established, with central management and control of the Group being exercised through the Board of Directors
of Shurgard Self Storage Limited, located in the United Kingdom. The legal migration from Luxembourg to
Guernsey will have no impact on the Group’s listing at Euronext in Brussels, nor on the financial reporting, which
will continue to be done under International Financial Reporting Standards (IFRS), as adopted by the European
Union, and in euro. Save for reflecting the move to Guernsey and the transition to a UK REIT in the new
memorandum and articles of incorporation, the governance structure of the Group will remain. The migration to
Guernsey and establishment of central management and control by a UK based Board of Directors is expected to
occur on February 17, 2023.
After the accounts closing date, no other specific circumstances or facts occurred that would be likely to influence
the results substantially or the future development of the Company.
SHURGARD ANNUAL REPORT 2022
276
15. DISCHARGE OF LIABILITY TO THE DIRECTORS AND THE STATUTORY AUDITOR
We therefore propose you to approve the annual accounts as they have been presented in the pages to follow
and ask you to grant discharge to the directors and to Ernst & Young S.A. as
“Réviseur d’Entreprises agréé
’” from
any liability resulting from the performance of their duties during the financial year ended on December 31, 2022.
Responsibility statement
We confirm to the best of our knowledge that the annual accounts of the Company presented in this Annual
Report and established in conformity with the Luxembourg legal and regulatory requirements relating to the
preparation of annual accounts give a true and fair view of the assets, liabilities, financial position and results of
the Company.
February 16, 2023
Marc Oursin
Chief Executive Officer
Jean Kreusch
Chief Financial Officer
SHURGARD ANNUAL REPORT 2022
277
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of
Shurgard Self Storage S.A.
11, rue de l’Industrie
L-8399 Windhof
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
We have audited the financial statements of Shurgard Self Storage S.A. the “Company”, which comprise the
balance sheet as at 31 December 2022, and the profit and loss account for the year then ended, and the notes
to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Company as at 31 December 2022, and of the results of its operations for the year then ended in accordance
with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial
statements.
BASIS FOR OPINION
We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit
profession (the “Law of 23 July 2016”) and with International Standards on Auditing (“ISAs”) as adopted for
Luxembourg by the “Commission de Surveillance du Secteur Financier” (“CSSF”). Our responsibilities under the
EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs are further described in the “Responsibilities of
the “réviseur d’entreprises agréé” for the audit of the financial statements” section of our report. We are also
independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (“IESBA Code”) as adopted for Luxembourg by the CSSF together with the
ethical requirements that are relevant to our audit of the financial statements, and have fulfilled our other ethical
responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of the audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
As at 31 December 2022, Company’s investment in financial assets amounted to KEUR 1,203.802 representing
about 99 % of the total balance sheet. As the Company is the ultimate holding of the group, it holds indirectly
shares in and loans to affiliated undertakings which are operating in different European countries. These
investments are recognised and valued at historical acquisition cost and are subject to value adjustments in case
of permanent impairment in value. In assessing whether such permanent impairment exists, management
considers factors that could give rise to the impairment of its individual investments and evaluates whether the
impairment is of permanent nature when an eventual impairment loss is identified. We considered the valuation
of financial assets to be a key audit matter because it requires a high level of management judgement and due
to the materiality of the amounts involved.
SHURGARD ANNUAL REPORT 2022
278
Auditor’s response
We considered management’s impairment assessment based on our understanding of the investments and
existing market conditions. We compared the individual net carrying value of the direct and indirect investments
to the individual net assets of each of the entities in which the Company holds directly and indirectly the shares
based on their most recent available financial information. Where applicable, we assessed management’s
adjustments to the net assets of these entities representing mainly the adjustment for unrecognised fair value
gains or losses on the properties that these entities own. We assessed management’s conclusions of whether
any identified potential impairment losses were of permanent nature. We also assessed the adequacy of the
Company’s disclosures in respect of the accounting policies related to the valuation of financial assets.
OTHER INFORMATION
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report and the corporate governance statement but does not include the financial
statements and our report of “réviseur d’entreprises agréé” thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to
report this fact. We have nothing to report in this regard.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND OF THOSE CHARGED WITH GOVERNANCE FOR THE
FINANCIAL STATEMENTS
The Board of Directors is responsible for the preparation and fair presentation of the financial statements in
accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of
the financial statements, and for such internal control as the Board of Directors determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
RESPONSIBILITIES OF THE “RÉVISEUR D’ENTREPRISES AGRÉÉ” FOR THE AUDIT OF THE FINANCIAL
STATEMENTS
The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue a report of the “réviseur
d’entreprises agréé” that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and
with the ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
SHURGARD ANNUAL REPORT 2022
279
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as
adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of Board of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our report of the “réviseur d’entreprises agréé” to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our report of the “réviseur d’entreprises
agréé”. However, future events or conditions may cause the Company to cease to continue as a
going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Assess whether the financial statements have been prepared, in all material respects, in
compliance with the requirements laid down in the ESEF Regulation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate to them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
SHURGARD ANNUAL REPORT 2022
280
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our report unless law or regulation precludes public disclosure about the
matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on 22
February 2022 and the duration of our uninterrupted engagement, including previous renewals and
reappointments, is 6 years.
The management report is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements.
The accompanying corporate governance statement on pages 105 to 120 is the responsibility of the Board of
Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December
2002 on the commercial and companies register and on the accounting records and annual accounts of
undertakings, as amended, is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements.
We have checked the compliance of the financial statements of the Company as at 31 December 2022 with
relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial statements.
For the Company, it relates to:
Financial statements prepared in valid xHTML format;
In our opinion, the financial statements of the Company as at 31 December 2022, identified as
shurgard-2022-
12-31-en.zip, have been prepared, in all material respects, in compliance with the requirements laid down in the
ESEF Regulation.
We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.
We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided
and that we remained independent of the Company in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Bruno Di Bartolomeo
Luxembourg, February 16, 2023
281
APPENDIX
ALTERNATIVE PERFORMANCE
MEASURES (APM)
SHURGARD ANNUAL REPORT 2022
282
ALTERNATIVE PERFORMANCE MEASURES (APM)
APM are defined by the European Securities and Markets Authority (“ESMA”) as a financial measure of historical
or future financial performance, financial position, or cash flows, other than a financial measure defined or
specified by IFRS, as adopted by the EU.
SAME STORE AND NON-SAME STORE
The Group’s most important APM, as also apparent from the segment reporting, relates to same stores and non-
same stores. Shurgard classifies as “same stores” (i) all developed stores that have been in operation for at least
three full years, and (ii) all acquired stores that we have owned for at least one full year, each measured as of
January 1 of the relevant year. Any stores that are not classified as same stores for a given year are presented
as “non-same stores”, comprising (i) all developed stores that have been in operation for less than three full
years (“new stores”) and (ii) acquired stores that we have owned for less than one full year (“acquired stores”),
each measured as of January 1 of the relevant year.
As a result, on a year-to-year basis, the size of our same store network changes based on the reclassification of
stores from non-same stores to same stores following the time periods described in the prior paragraph. Under
some circumstances, for purposes of these full-year metrics, this results in significant changes in financial and
operational metrics presented on a segmental basis from year to year.
In line with common practice in self storage and other industries (e.g., retail), same store information is a crucial
factor to assess the performance of the organic business, while at the same time providing information on the
expansion activities of the Group. For this reason, the Chief Operating Decision Maker (“CODM”) reviews the
performance of the Group based on this distinction (see Note 11 of the consolidated financial statements) and
same store information represents part of the remuneration for Senior Management, as can be seen in the
Remuneration report included in the 2022 Annual Report.
INCOME FROM PROPERTY (“NOI”)
NOI is calculated as “Property operating revenue” (A) less “Real estate operating expenses” (B) for the relevant
period and can be reconciled to the closest line item in the consolidated financial statements as follows:
Income statement line item
Reference to 2022 Annual
Report
2022
2021
Rental revenue
Note 6
289,380 258,626
Insurance revenue
Note 6
32,075
30,282
Ancillary revenue
Note 6
11,594
11,038
Property operating revenue (A)
333,049
299,946
Other revenue Note 6
2,241 429
Real estate operating revenue
Statement of Profit and Loss
335,290
300,375
Income statement line item
Reference to 2022 Annual
Report
2022
2021
Payroll expense
Note 7
42,151
41,418
Real estate and other taxes
Note 7
16,834
15,918
Repairs and maintenance
Note 7
10,913
9,886
Marketing expenses
Note 7
9,162
8,258
Utility expenses
Note 7
3,574
3,754
Other operating expenses
Note 7
20,810
17,526
Doubtful debt expense
Note 7
5,088
3,397
Cost of insurance and merchandise sales
Note 7
5,289
5,409
Real estate operating expenses (B)
Statement of Profit and Loss
113,821
105,566
Net Operating Income (NOI)
(A) – (B)
219,228
194,380
SHURGARD ANNUAL REPORT 2022
283
NOI measures the financial performance of our properties. It focuses on property operating revenue (generated
through the lease of storage units and related activities, including insurance referrals and the sale of storage
products and packaging) less real estate operating expense. As such it is a key performance indicator of the
performance of the Group’s core operating activity.
As explained in Note 11 to our 2022 consolidated financial statements, the Group’s CODM periodically receives
and reviews NOI when making capital allocation and operating decisions. Further, NOI represents a crucial input
in the valuation of the Group’s investment property, as described in Note 15 to our 2022 consolidated financial
statements.
NOI MARGIN
The NOI margin is calculated as Income from property (“NOI”) divided by Property operating revenue for the
relevant period and measures the operational performance and efficiencies of our properties as it shows in
percentage how much property operating revenue remains after deduction of the real estate operating expense.
As with all ratios, it also allows easier comparison within our industry, as it eliminates the need for size or
currency adjustments.
Item
Operator
2022
2021
Net Operating Income (NOI)
219,228
194,380
Property operating revenue ÷ 333,049 299,946
NOI Margin %
=
65.8%
64.8%
NET (FINANCIAL) DEBT
Net debt represents our long-term and short-term interest-bearing loans and borrowings, including lease
obligations and excluding debt issuance costs, less cash and cash equivalents. This liquidity metric is used to
evaluate the Group’s capability of repaying all its debts, were they due immediately.
The calculation of Net financial debt can also be found in Note 36 to the consolidated financial statements:
(in € thousands) 2022 2021
Carrying value of interest-bearing loans and borrowings (Note 27) 797,980 797,579
Unamortized portion of debt financing cost (Note 27) 2,020 2,421
Carrying value of lease obligations (Note 29) 99,822 88,368
Cash and cash equivalents (Note 20) (87,345) (219,170)
Net financial debt 812,477 669,198
LOAN-TO-VALUE (“LTV”)
LTV, which stands for loan-to-value, represents the Group’s Net Debt divided by the fair value of investment
properties, expressed as a percentage and is a commonly used leverage KPI in the real estate industry. The
calculation can be found in Note 36 to the consolidated financial statements. The Group reviews its capital
structure based on this metric with the primary objective to ensure that it complies with its debt covenants. The
Group targets a loan-to-value ratio of 25% with a short- to mid-term maximum amount of 35%.
SHURGARD ANNUAL REPORT 2022
284
The calculation can also be found in Note 36 to the consolidated financial statements:
(in € thousands) 2022 2021
Net financial debt 812,477 669,198
Investment property and investment property under construction (Note 14) 4,523,789 3,847,067
Loan-to-value ratio 18.0% 17.4%
NET DEBT TO EBITDA RATIO
Net debt to EBITDA ratio represents the Group’s net financial debt divided by earnings before interest, taxes,
depreciation, and amortization (EBITDA).
(in € thousands) 2022 2021
Net financial debt 812,477 669,198
EBITDA 199,765 174,865
Net debt / EBITDA 4.1x 3.8x
INTEREST COVERAGE RATIO (”ICR”)
ICR, which stands for interest coverage ratio, represents the Group’s earnings before interest, taxes, depreciation,
and amortization (EBITDA) divided by the total interest expense, expressed as a ratio. The ICR of 9.7x
demonstrates Shurgard’s capacity to meet its outstanding debt obligations on time.
(in € thousands) 2022 2021
EBITDA 199,765 174,865
Total interest expense 20,696 19,985
Interest coverage ratio 9.7x 8.7x
OPERATING PROFIT BEFORE PROPERTY RELATED ADJUSTMENTS
This is a commonly reported KPI by real estate companies. We believe that this subtotal provides an improved
structure to the profit and loss information and enables investors to better analyze and compare our earnings
with those of other companies.
EARNINGS BEFORE INTEREST, DEPRECIATION AND AMORTIZATION (EBITDA)
EBITDA, which represents reported operating earnings before interest, tax, depreciation and amortization,
excluding (i) valuation gains from investment property and investment property under construction and (ii) losses
or gains on disposal of investment property, plant and equipment and assets held for sale.
CONSTANT EXCHANGE RATE (“CER”)
Certain of the above-mentioned non-GAAP measures, such as EBITDA, are also presented at constant exchange
rate (CER) vs actual exchange rate (AER), in order to highlight the underlying operating performance versus the
impact of changes in exchange rate on the specific KPI.
SHURGARD ANNUAL REPORT 2022
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EUROPEAN PUBLIC REAL ESTATE ASSOCIATION (“EPRA”) APM
In addition to the above, the Group mainly uses alternative performance measures that are issued and defined
by EPRA with the aim to align the various accounting and reporting methodologies for the public real estate
sector in Europe in order to increase the overall transparency of the sector by providing performance measures
that result meaningful information for the readers of the financial statements.
The EPRA KPIs used by Shurgard are based on the EPRA best practice guidelines dated February 2022.
The table below provides a summarized overview of the Company’s key APM, consisting of, (Adjusted) EPRA
earnings, NAV, EPRA NRV, EPRA NTA, EPRA NDV and EPRA LTV:
(in € thousands, except for earnings per share) 2022 2021
EPRA earnings 144,225 129,426
EPRA earnings per share (basic) € 1.62 1.46
EPRA earnings per share (diluted) € 1.61 1.45
Adjusted EPRA earnings 143,556 131,049
Adjusted EPRA earnings per share (basic) € 1.61 1.48
Adjusted EPRA earnings per share (diluted) € 1.60 1.47
NAV 2,860,993 2,472,543
NAV per share (basic) € 32.10 27.77
NAV per share (diluted) € 31.98 27.47
EPRA NRV 3,989,647 3,409,642
EPRA NRV per share (diluted) € 44.59 37.38
EPRA NTA 3,638,892 3,112,598
EPRA NTA per share (diluted) € 40.67 34.58
EPRA NDV 2,974,095 2,417,628
EPRA NDV per share (diluted) € 33.24 26.87
EPRA Loan-to-value (LTV) 17.7% 17.2%
The basis of calculation of each of the above measures set out above, are illustrated below.
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EPRA EARNINGS AND EPRA EARNINGS PER SHARE
(in € thousands, except for earnings per share) December 31, 2022 December 31, 2021
Profit attributable to ordinary equity holders of the parent for basic
earnings
574,284 446,848
Adjustments:
Gain on revaluation of investment properties (586,181) (466,575)
Profits or losses on disposal of investment properties, development
properties held for investment, right of use assets and other interests
- -
Profits or losses on sales of trading properties including impairment
charges in respect of trading properties
- -
Tax on profits or losses on disposals
- -
Negative goodwill / goodwill impairment
- -
Changes in fair value of financial instruments and associated close-out
costs
- -
Acquisition costs of business combinations and non-controlling joint
venture interests
(775) -
Current and deferred tax in respect of EPRA adjustments 155,878 148,668
Adjustments (i) to (viii) above in respect of joint ventures (unless
already included under proportional consolidation)
- -
Non-controlling interests in respect of the above
1
1,019 485
EPRA earnings 144,225 129,426
EPRA earnings per share (basic) € 1.62 1.46
EPRA earnings per share (diluted) € 1.61 1.45
1 Non-controlling interests are presented net of deferred income taxes.
ADJUSTED EPRA EARNINGS AND ADJUSTED EPRA EARNINGS PER SHARE
(in € thousands, except for earnings per share) December 31, 2022 December 31, 2021
EPRA earnings 144,225 129,426
Company specific adjustments:
Non-recurring expenses
1
(1,269) (966)
Tax adjustments
2
600 2,589
Adjusted EPRA Earnings 143,556 131,049
Adjusted EPRA earnings per share (basic) € 1.61 1.48
Adjusted EPRA earnings per share (diluted) € 1.60 1.47
1 Non-recurring expenses consist of (i) insurance recovery proceeds, (ii) compensation received for lease agreement termination and (iii) UK REIT set up costs.
2 Tax adjustments consist of (i) deferred tax expense on items other than revaluation of investment property, (ii) net impact of tax assessments and (iii) current income tax
effect of the Company specific adjustment items included in this Adjusted EPRA earnings table.
SHURGARD ANNUAL REPORT 2022
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ADJUSTED EPRA EARNINGS AND FOREIGN EXCHANGE RATE RISK
The following table presents the sensitivity analysis of our adjusted EPRA earnings in EUR in case the euro would
weaken by 10% versus the GBP, SEK and DKK, respectively:
(in € thousands) 2022 2021
GBP/EUR exchange rate – increase 10% 2,852 2,526
SEK/EUR exchange rate – increase 10% 2,607 2,533
DKK/EUR exchange rate – increase 10% 887 759
Positive amounts represent an increase in adjusted EPRA earnings.
NAV (BASIC AND DILUTED)
Basic NAV per share amounts are calculated by dividing net assets in the statement of financial position
attributable to ordinary equity holders of the parent by the number of ordinary shares outstanding at the
reporting date.
The following reflects the net asset and share data used in the basic and diluted NAV per share computations:
(in € thousands, except for number of shares and NAV per share) 2022 2021
Equity attributable to ordinary equity holders of the parent 2,860,993 2,472,543
Number of ordinary shares at the reporting date 89,131,131 89,035,431
Number of diluted shares at the reporting date 333,315 981,195
NAV per share (basic) € 32.10 27.77
NAV per share (diluted) € 31.98 27.47
SHURGARD ANNUAL REPORT 2022
288
EPRA NRV (DILUTED)
The EPRA NRV scenario aims to represent the value required to rebuild the properties and assumes that no
selling of assets takes place.
(in € thousands, except for NRV per share) 2022 2021
Equity attributable to ordinary equity holders of the parent 2,860,993 2,472,543
Include / Exclude:
Hybrid instruments
- -
Diluted NAV 2,860,993 2,472,543
Include:
Revaluation of investment properties
- -
Revaluation of investment properties under construction
- -
Revaluation of other non-current investments
- -
Revaluation of tenant leases held as finance leases
- -
Revaluation of trading properties
-
-
Diluted NAV at fair value 2,860,993 2,472,543
Exclude:
Deferred taxes in relation to fair value gains on investment property 784,628 645,981
Fair value of financial instruments - -
Goodwill as a result of deferred tax - -
Include:
Revaluation of intangibles to fair value - -
Real estate transfer tax 344,026 291,118
EPRA NRV 3,989,647 3,409,642
EPRA NRV per share (diluted) € 44.59 37.38
In the above EPRA NRV calculation, the fair value adjustment of our notes issued and deferred tax expense other
than on the fair value adjustment of investment property are not considered, and real estate transfer tax has
been considered.
SHURGARD ANNUAL REPORT 2022
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EPRA NTA (DILUTED)
The EPRA NTA scenario is focused on reflecting a company’s tangible assets and assumes that companies buy
and sell assets, thereby crystallizing certain levels of unavoidable deferred tax liability.
(in € thousands, except for NRV per share) 2022 2021
Equity attributable to ordinary equity holders of the parent 2,860,993 2,472,543
Include / Exclude:
Hybrid instruments
- -
Diluted NAV 2,860,993 2,472,543
Include:
Revaluation of investment properties
- -
Revaluation of investment properties under construction
- -
Revaluation of other non-current investments
- -
Revaluation of tenant leases held as finance leases
- -
Revaluation of trading properties
-
-
Diluted NAV at fair value 2,860,993 2,472,543
Exclude:
Deferred taxes in relation to fair value gains on investment property 784,628 645,981
Fair value of financial instruments - -
Goodwill as a result of deferred tax - -
Goodwill recognized in the statement of financial position - -
Intangible assets recognized in the statement of financial position (6,729) (5,926)
Include:
Real estate transfer tax
1
- -
EPRA NTA 3,638,892 3,112,598
EPRA NTA per share (diluted) € 40.67 34.58
1 The Company did not opt for the “optimised net property value” approach, as we do not have a history that would indicate that we can achieve lower taxes
when buying and selling and as we have a buy and hold strategy, which would indicate limited relevance of the optimised EPRA NTA.
In the above EPRA NTA calculation, the fair value adjustment of our notes issued and deferred tax expense other
than on the fair value adjustment of investment property are not considered.
SHURGARD ANNUAL REPORT 2022
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EPRA NDV (DILUTED)
The EPRA NDV scenario aims to represent the shareholder’s value under an ordinary sale of business, where
deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability,
net of any resulting tax.
(in € thousands, except for NDV per share) 2022 2021
Equity attributable to ordinary equity holders of the parent 2,860,993 2,472,543
Include / Exclude:
Hybrid instruments
- -
Diluted NAV 2,860,993 2,472,543
Include:
Revaluation of investment properties
- -
Revaluation of investment properties under construction
-
-
Revaluation of other non-current investments
- -
Revaluation of tenant leases held as finance leases
- -
Revaluation of trading properties
- -
Diluted NAV at fair value 2,860,993 2,472,543
Exclude:
Goodwill as a result of deferred tax - -
Goodwill recognized in the statement of financial position - -
Include:
Fair value of fixed interest rate debt: carrying value senior guaranteed notes
lower than fair value (Note 35)
113,102 (54,915)
EPRA NDV 2,974,095 2,417,628
EPRA NDV per share (diluted) € 33.24 26.87
EPRA LTV
The EPRA LTV’s aim is to assess the gearing of the shareholder equity within a real estate company. To achieve
that result, the EPRA LTV provides adjustments to IFRS reporting which are described in more details in this
document.
The main overarching concepts that are introduced by the EPRA LTV are:
In case of doubt, and unless otherwise defined below, any capital which is not equity (i.e., which
value accrues to the shareholders of the company) is considered as debt irrespective of its IFRS
classification;
The EPRA LTV is calculated based on proportional consolidation. This implies that the EPRA LTV
include the Group’s share in the net debt and net assets of joint venture or material associates;
Assets are included at fair value, net debt at nominal value.
No adjustment related to IFRS 16 is proposed for the purposes of calculating the EPRA LTV as, for most real
estate entities, these balances typically gross up both sides of the LTV calculation and generally do not have a
commercial impact on the leverage of the business.
SHURGARD ANNUAL REPORT 2022
291
As of December 31, 2022, EPRA LTV is as follows:
Proportionate Consolidation
EPRA LTV Metric as of December 31, 2022
(In € thousands)
Group as
reported
Share of
joint-
ventures
Share of
Material
Associates
Non-
controlling
Interests
Combined
Include:
Borrowings from Financial Institutions -
-
-
-
-
Commercial paper -
-
-
-
-
Hybrids (including convertibles, preference
shares, debt, options, perpetuals)
-
-
-
-
-
Bond loans 797,980 -
-
-
797,980
Foreign currency derivatives (futures,
swaps, options and forwards)
-
-
-
-
-
Net payables 74,868 -
-
704 75,572
Owner occupied property (debt) -
-
-
-
-
Current accounts (equity characteristic) -
-
-
-
-
Exclude:
Cash and cash equivalents (87,345) -
-
75 (87,270)
Net Debt (a) 785,503 -
-
779 786,282
Include:
Owner occupied property -
-
-
-
-
Investment properties at fair value 4,374,361 -
-
(9,521) 4,364,840
Properties held for sale -
-
-
-
-
Properties under development 54,217 -
-
- 54,217
Intangibles 6,729 -
-
-
6,729
Net receivables -
-
-
-
-
Financial assets -
-
-
-
-
Total Property Value (b) 4,435,307 -
-
(9,521) 4,425,786
EPRA LTV (a/b) 17.7% N/A 17.8%
SHURGARD ANNUAL REPORT 2022
292
RECONCILIATION OF CERTAIN EPRA LTV COMPONENTS
Proportionate Consolidation
EPRA LTV Metric as of December 31, 2022
(In € thousands)
Group as
reported
Share of
joint-
ventures
Share of
Material
Associates
Non-
controlling
Interests
Combined
Investment property
Investment property presented in IFRS FS 4,469,572 -
-
-
4,469,572
Less ROU IP (IFRS 16) (95,211) -
-
-
(95,211)
Investment property for EPRA LTV
calculation
4,374,361 -
-
-
4,374,361
Payables, net
Trade and other receivables (18,671) -
-
21 (18,650)
Other current assets (8,261) -
-
20 (8,241)
Other non-current assets (11,327) -
-
-
(11,327)
Other non-current liabilities -
-
-
-
-
Trade and other payables 74,075 -
-
737 74,812
Deferred revenue 32,456 -
-
(73) 32,383
Income tax payable 6,596 -
-
(1) 6,595
Net Payables 74,868 -
-
704 75,572
SHURGARD ANNUAL REPORT 2022
293
As of December 31, 2021, EPRA LTV is as follows:
Proportionate Consolidation
EPRA LTV Metric, as of December 31, 2021
(In € thousands)
Group as
reported
Share of
joint-
ventures
Share of
Material
Associates
Non-
controlling
Interests
Combined
Include:
Borrowings from Financial Institutions -
-
-
-
-
Commercial paper -
-
-
-
-
Hybrids (including convertibles, preference
shares, debt, options, perpetuals)
-
-
-
-
-
Bond loans 797,579 -
-
-
797,579
Foreign currency derivatives (futures, swaps,
options and forwards)
-
-
-
-
-
Net payables 70,920 -
-
311 71,231
Owner occupied property (debt) -
-
-
-
-
Current accounts (equity characteristic) -
-
-
-
-
Exclude:
Cash and cash equivalents (219,170) -
-
75 (219,095)
Net Debt (a) 649,329 -
-
386 649,715
Include:
Owner occupied property -
-
-
-
-
Investment properties at fair value 3,734,195 -
-
(7,337) 3,726,858
Properties held for sale -
-
-
-
-
Properties under development 29,832 -
-
(418) 29,414
Intangibles 5,926 -
-
-
5,926
Net receivables -
-
-
-
-
Financial assets -
-
-
-
-
Total Property Value (b) 3,769,953 -
-
(7,755) 3,762,198
EPRA LTV (a/b) 17.2% - - N/A 17.3%
SHURGARD ANNUAL REPORT 2022
294
RECONCILIATION OF CERTAIN EPRA LTV COMPONENTS
Proportionate Consolidation
EPRA LTV Metric, as of December 31, 2021
(In € thousands)
Group as
reported
Share of
joint-
ventures
Share of
Material
Associates
Non-
controlling
Interests
Combined
Investment property
Investment property presented in IFRS FS 3,817,235 -
-
(7,337) 3,809,898
Less ROU IP (IFRS 16) (83,040) -
-
-
(83,040)
Investment property for EPRA LTV
calculation
3,734,195 -
-
(7,337) 3,726,858
Payables, net
Trade and other receivables (16,370) -
-
15 (16,355)
Other current assets (7,950) -
-
22 (7,928)
Other non-current assets (1,067) -
-
-
(1,067)
Other non-current liabilities 140 -
-
-
140
Trade and other payables 61,699 -
-
337 62,036
Deferred revenue 30,226 -
-
(63) 30,163
Income tax payable 4,242 -
-
-
4,242
Net Payables 70,920 -
-
311 71,231
SHURGARD ANNUAL REPORT 2022
295
CAPITAL EXPENDITURE
(in € thousands) 2022 2021 +/-
Acquisitions / Additions 76,310 47,813 59.6%
Development 75,472 55,564 35.8%
Other: completed properties 37,105 27,700 34.0%
Like-for-like portfolio - - N/A
Capital Expenditure 188,887 131,077 44.1%
The Group currently holds no investments in joint ventures.
Capital expenditures disclosed in the table are categorized according to the EPRA recommendations and consist
of the items “Acquisition of investment property” and “Capital expenditure” presented in Note 14, Investment
property and investment property under construction.
Acquisitions/Additions relate to seven stores acquired: one in London, three in Sweden, two in the Netherlands
and one in France.
EPRA VACANCY RATE
(in € thousands, at CER, except where indicated) 2022 2021 +/-
Estimated rental revenue of vacant space 43,512 36,195 20.2%
Estimated rental revenue of the whole portfolio 332,891 293,202 13.5%
EPRA Vacancy Rate 13.1% 12.3% 0.7pp
The EPRA vacancy rate shows how much of the full potential rental revenue is not received because of vacancy.
The EPRA vacancy rate is calculated by dividing the estimated rental revenue of vacant space by the estimated
rental revenue of the whole property portfolio if all properties were fully rented, both based on the rental revenue
of the year and the occupancy rate at period end. The EPRA vacancy rate came to 13.1% at the end of 2022
slightly going up compared to 12.3% in 2021. A part of the vacancy rate is attributable to new stores opened and
major redevelopments that are still ramping up.
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EPRA LIKE-FOR-LIKE RENTAL GROWTH
LFL net rental growth compares the growth of the net rental income of the portfolio that has been consistently
in operation, and not under development, during the two full preceding periods that are described. Information
on the growth in net rental income, other than from acquisitions and disposals, allows stakeholders to arrive at
an estimate of organic growth. This can be used to measure whether the reversions feed through as anticipated,
and whether the vacancy rates are changing. This is presented on a segmented basis by geography. All properties
are stores, therefore a segment spread by business type is not included.
Shurgard classifies as “LFL” (i) all developed stores that have been in operation for at least three full years; and
(ii) all acquired stores that we have owned for at least one full year, each measured as of January 1 of the relevant
year.
FY 2022 Whole portfolio
FY 2022 LFL portfolio
(in € thousands, at CER,
except where indicated)
Total
market
value
Rental
revenue
2022
Total
market
value
Rental
revenue
2022
Rental
revenue
2021
Growth in LFL
rental revenue
€
%
France 1,037,031 68,030 945,990 66,378 61,884 4,494 7.3%
The Netherlands 832,027 59,420 781,700 57,813 52,369 5,444 10.4%
The United Kingdom 971,121 57,514 766,135 48,415 43,140 5,275 12.2%
Sweden 627,835 43,018 594,377 42,914 39,995 2,919 7.3%
Germany 414,300 26,130 319,000 22,647 20,249 2,398 11.8%
Belgium 276,980 21,625 276,980 21,625 19,660 1,966 10.0%
Denmark 208,388 13,643 208,388 13,643 12,513 1,130 9.0%
Total portfolio 4,367,682 289,380 3,892,570 273,435 249,810 23,626 9.5%
FY 2021 Whole portfolio
FY 2021 LFL portfolio
(in € thousands, at CER,
except where indicated)
Total
market
value
Rental
revenue
2021
Total
market
value
Rental
revenue
2021
Rental
revenue
2020
Growth in LFL
rental revenue
€
%
France 872,980 62,302 801,070 59,864 57,083 2,780 4.9%
The Netherlands 724,700 53,275 700,140 52,369 47,885 4,484 9.4%
The United Kingdom 778,149 46,550 627,357 43,139 38,372 4,769 12.4%
Sweden 528,241 39,995 516,735 39,115 36,894 2,221 6.0%
Germany 328,940 22,712 231,340 17,633 16,702 931 5.6%
Belgium 234,460 19,660 234,460 19,660 18,242 1,417 7.8%
Denmark 175,391 12,513 175,391 12,513 11,478 1,035 9.0%
Total portfolio 3,642,861 257,007 3,286,493 244,293 226,656 17,637 7.8%
SHURGARD ANNUAL REPORT 2022
297
EPRA COST RATIOS
The EPRA cost ratios are aimed at providing a meaningful measurement and comparison of the changes in a
company’s operating costs.
(in € thousands, except where indicated) 2022 2021 +/-
Administrative/operating expense line per IFRS income
statement
(136,336) (125,007) 9.1%
Net service charge costs/fees - - N/A
Management fees less actual/estimated profit element - - N/A
Other operating income/recharges intended to cover
overhead expenses less any related profits
- - N/A
Share of Joint Ventures expenses - - N/A
Exclude (if part of the above):
Investment Property depreciation - - N/A
Ground rent costs (923) (383) 141.1%
Service charge costs recovered through rents but not
separately invoiced
- - N/A
EPRA costs (including direct vacancy costs)
(135,413)
(124,624)
8.7%
Direct vacancy costs - - N/A
EPRA costs (excluding direct vacancy costs)
(135,413)
(124,624)
8.7%
Gross Rental Income less ground rent costs - per IFRS 290,302 259,008 12.1%
Less: service fee and service charge costs components of
Gross Rental Income (if relevant)
- - N/A
Add: share of Joint Ventures (Gross Rental Income less
ground rent costs)
- - N/A
Gross Rental Income
290,302
259,008
12.1%
EPRA cost ratio (including direct vacancy costs) 46.6% 48.1% -1.5pp
EPRA cost ratio (excluding direct vacancy costs) 46.6% 48.1% -1.5pp
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EPRA NET INITIAL YIELD (NIY) AND TOPPED-UP NIY
EPRA NIY is calculated as the annualized rental income based on the cash rents passing at the balance sheet
date, less non-recoverable property operating expenses, divided by the gross market value of the property.
(in € thousands, except where indicated)
December 31,
2022
December 31,
2021
+/-
Investment property – wholly owned 4,353,121 3,758,099 15.8%
Investment property – share of JVs/Funds - - N/A
Trading property (including share of JVs) - - N/A
Less: developments 72,907 27,280 167.3%
Completed property portfolio 4,280,214 3,730,819 14.7%
Allowance for estimated purchasers’ costs 259,644 222,852 16.5%
Gross up completed property portfolio valuation 4,539,858 3,953,671 14.8%
Annualized cash passing rental income 289,379 258,626 11.9%
Property outgoings (922) (383) 141.1%
Annualized net rents 288,457 258,243 11.7%
Add: notional rent expiration of rent-free periods or other lease
incentives
- - N/A
Topped-up net annualized rent 288,457 258,243 11.7%
EPRA Net Initial Yield (NIY) 6.4% 6.5% -0.2pp
EPRA “topped-up” NIY 6.4% 6.5% -0.2pp
SHURGARD ANNUAL REPORT 2022
299
APPENDIX
SUMMARY OF THE
ASSURANCE STATEMENT
SHURGARD ANNUAL REPORT 2022
300
ASSURANCE SUMMARY STATEMENT
EVORA Global Ltd. (“EVORA”) was engaged by Shurgard Self Storage SA (“Shurgard”) to provide assurance of the
Environmental sustainability performance measures of their 2022 Sustainability Report for the reporting period
of 1
st
Jan 2022 to 31
st
Dec 2022.
The assurance was provided in accordance with AccountAbility’s AA1000 Assurance Standard V3 (AA1000AS)
Type 2 moderate level and EPRA Best Practice Recommendations for Sustainability Reporting (sBPR) 2017 3rd
Edition. EVORA’s scope of assurance covered a series of indicators and assertions contained in the report
including:
- Absolute:
Electricity Consumption (kWh)
District Heating/cooling (kWh)
Fuels Consumption (kWh)
Water Consumption (m
3
)
Greenhouse Gas (GHG) Emissions (tCO
2e)
Waste (tonnes)
- Intensity Calculations:
Energy (kWh / m2)
GHG (kgCO2e/m2)
Water (m3/m2)
- Alignment check of Shurgard’s reporting against EPRA sBPR Guidelines 2017 across all the
performance measures.
The assurance was conducted via independent third party Markit Group Limited (IHS Markit, now part of S&P
Global), engaged by EVORA.
EVORA’s full assurance statement includes certain limitations, findings and recommendations for improvement,
adherence to AA1000 Accountability Principles, and a detailed assurance methodology.
The full assurance statement with EVORA’s independent opinion can be found at
Investor Relations Home Page
| Shurgard Self Storage
SHURGARD ANNUAL REPORT 2022
301
PUBLISHER
Shurgard Self Storage Ltd
Ground floor, Egerton House
Bakerstreet Weybridge
Surrey KT13 8AL
United Kingdom
www.shurgard.com
COPYWRITING AND DESIGN
Instinctif Partners
Berlin, Frankfurt, Cologne, Munich,
London
www.instinctif.de
www.creative.instinctif.com
PHOTOS
Shurgard Self Storage Ltd