ANNUAL REPORT

2023

JANUARY 1, 2023 TO DECEMBER 31, 2023

Giovani Makengo

and Benjamin Gibelin

Morangis store, Paris, France

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 276

stores in seven countries where c. 190,000 customers

lease our storage units every year.

Table of contents

03 Chairman’s letter

04 ChiefExecutiveOfficer’sletter

07 Keyfinancials

08 Building on digitalization to

accelerate growth

09 Our store locations

10 Digitalizing our operations

11 The data lake

12 Customer‑centric innovation

13 Remote control

14 Leading the industry in ESG

18 Operational highlights

22 Management report

25 Group overview

30 Property portfolio

33 Operational and

financialreview

48 Sustainability report

153 Remuneration report

162 Principal risks and uncertainties

175 Consolidatedfinancial

statements

181 Notes to the consolidated

financialstatements

239 Auditor’s report

245 Stand‑alone accounts

255 Appendix

256 APM

The consolidated financial statements presented on page 175 and following in pdf format is only a supplementary document.

The official ESEF (European Single Electronic Format) version prevails.

SHURGARD ANNUAL REPORT 2023

Chairman’s letter

I am honored to be writing my first Chairman’s statement since being appointed to the role following the 2023

Annual General Meeting (AGM).

Despite the challenging and volatile environment, which has experienced rising interest rates, high inflation, and

geopolitical conflicts, this has been the most transformational year since the company’s initial public offering in

October, 2018.

Shurgard became a UK REIT in March, 2023, and for the first time since listing, successfully raised additional

capital of €300 million, some of which has already been used to fund our acquisition strategy, particularly in

Germany, and also enables us to pursue further opportunities.

There remains a significant shortage of self storage throughout Europe, and although we are already the largest

owner and operator across the continent, we have every intention and aspiration of reinforcing this position. We

remain ambitious to grow our business with a focus on expanding in our existing key locations of London, Paris,

Randstad (Amsterdam, Rotterdam, The Hague and Utrecht) and the “Big Seven” in Germany.

We have set ambitious targets to increase our overall footprint by 90,000 sqm (c. 6% of our total portfolio) of

additional rental space per annum through development and acquisition.

We remain very focused on achieving and exceeding our ESG commitments. Our plan to achieve net zero carbon

is advancing well as evidenced by the significant like-for-like reductions in energy consumption throughout our

portfolio. In addition, the external recognition that has been forthcoming with the receipt of several awards

demonstrates our strong commitment to sustainability, social and corporate governance.

There has been a very significant emphasis on increased use of technology to the benefit of both our customers

and operational team. We will accelerate the digitalization of the platform and introduction of more remotely

managed stores.

The Board restructuring announced last year will continue to ensure the team is refreshed regularly. Olivier

Faujour will be stepping down at the AGM to be replaced by Paula Hay-Plumb. We thank Olivier for his significant

contribution since the listing. This rotation of board directors will continue in subsequent years. Succession

planning for both the Board and the senior executives is well established and constantly reviewed to ensure

continuity.

I would like to express my sincere thanks and gratitude on behalf of the Board and all our stakeholders to my

predecessor, Ronald L. Havner, Jr., who stood down as Chairman last year. His leadership and vision have been

integral to the repositioning and growth of Shurgard in the 17 years since Public Storage first became a

shareholder. I am personally thrilled and delighted that we were able to persuade Ron to remain involved as a

strategic advisor to the Company, with the title of Chairman Emeritus, ensuring we can still access his unique

skill set and knowledge of the self-storage sector.

On behalf of the Board, may I express my sincere thanks to Marc and the executive team for their outstanding

efforts and achievements throughout this very active year. 2024 will bring further challenges, but your company

is very well positioned financially and operationally to move forward and strengthen our leading market position.

Ian Marcus

Chairman of the Board

SHURGARD ANNUAL REPORT 2023

Chief Executive Officer’s letter

By all measures, 2023 has been a very significant milestone year in the life of our company. Our growth strategy

has strong momentum, we are benefiting from the digital transformation of both the customer journey and our

operations, and we are supported by a robust financial structure and committed ESG strategy. Our shareholders

have benefited from this

performance since we became a public company in October 2018 with the best total

shareholder return (“TSR”) versus major self-storage industry peers in Europe and the UK.

The below data are presented at constant exchange rate (CER).

CUSTOMER EXPERIENCE

The Shurgard customer journey was transformed in 2023. The Shurgard app and store access system, rolled out

during 2022 provides a consistent, intuitive, easy experience that is also more cost-efficient and margin-

enhancing. Customers can use the app to manage their accounts, make payments and access their storage.

Many of our customers want to be self-sufficient in their interactions with our services, which reduces the

requirement for in-person support. The change in consumer behavior and our digital enhancements have given

rise to new opportunities to manage our stores more efficiently.

After careful consideration and insightful trials, Shurgard has begun to roll out a remotely managed store model

in six different countries. This has allowed us to reduce staffing needs, improve productivity, and invest in

different store models, like smaller stores in convenient locations, that may have been cost-prohibitive before.

BEHIND THE SCENES

Customer digitalization improvements are also being augmented by projects that affect the efficiency of our

operations. In the last quarter of 2023, we laid the foundations for the installation of a new digital platform by

making investments to support our digital shift over the next two years. This will improve enterprise productivity

and generate new data that will give much better visibility across the financial and operational landscape. The

system will support the growth of our estate as we scale up the number of properties, transactions, and of course

the data generated. It will provide reliability for the future and underpin our economies of scale.

Our new Data & AI team will have the financial and operational data generated by our systems, an increasing

volume of anonymized GDPR-compliant customer data, and information on store management and energy

efficiencies from the building management systems at their fingertips. The team can collect, collate, and analyze

the data to find better ways to provide the best service for our customers and deliver improvements in the

development process.

PORTFOLIO EXPANSION

Shurgard’s profile is unique. We are a resilient real estate business-to-consumer company with a runway of

significant growth. Our geographies are well balanced and support our strategic acceleration, which started in

2022 and will reach a sustained growth rate of 90,000 sqm per annum as of 2024, equating to an additional

c. 6% of our total portfolio. With more options for store size and location afforded by the new remotely managed

property model, and a healthy pipeline of new developments designed to reinforce and expand a leading position

in our core markets, Shurgard is demonstrating strong forward momentum.

SHURGARD ANNUAL REPORT 2023

In 2023, we added 64,600 sqm to our store portfolio via the three levers of growth – new developments,

redevelopments, and acquisitions. The focus for acquisitions this year was on our German market where Shurgard

used 2023 to strengthen its offer in the “Big Seven” cities. Expansion within these key cities is accelerating

Shurgard towards a leadership position in the country, leveraging our platform approach that provides economies

of scale.

REVENUE GROWTH AND MARGIN EXPANSION

Once again, Shurgard delivered very strong revenue growth in 2023. All store property operating revenue grew

by 9.0%, building on the 11.7% and 9.5% growth achieved in 2022 and 2021. But it was not only new properties

that underpinned this consistent growth, same store property operating revenue grew by 5.7% in 2023.

Ultimately, top line growth is only as powerful as the margins that turn it into profitability, and Shurgard once

again expanded margins in 2023, despite a sometimes volatile and inflationary environment. All store margins

rose to 66.3% in 2023 from 65.8% the previous year, as we were able to control costs through efficiencies and

cost savings generated by our digitalization program and remotely managed store rollout.

STRUCTURE, GOVERNANCE AND ESG

The transformation of Shurgard’s structure and the introduction of new board members in 2023 has

strengthened our governance. In March we became a UK REIT, and in May, board member Ian Marcus was

welcomed as our new independent chairman along with two new directors, Lorna Brown and Tom Boyle. The

reduction of the Board to nine members, and the introduction of a new female board member in 2024, is bringing

us closer to gender parity and supporting our social and governance responsibilities.

In 2023, we again topped the sector on the Global Real Estate Sustainability Benchmark (GRESB), achieving five

stars for the third year in a row, and were also recognized for our ESG achievements by MSCI, EPRA and

Sustainalytics.

We won two new awards last year– the Golden Bridge Award for ESG Excellence from the Belgian-Luxembourg

Chamber of Commerce in Great Britain, and Best Financial Communication award from the Belgian Centre of

Expertise for Finance Professionals. We have also been recognized for our sustainability excellence by being

selected to join the BEL ESG Index.

Our ESG reporting is very thorough. The sustainability report integrated into this Annual Report contains a wealth

of data and insight into the actions that merit this recognition. I encourage you to read it and see how we are

making a difference.

SHURGARD ANNUAL REPORT 2023

FINANCIALLY SOUND FUTURE

Shurgard’s accelerated development is driven by increased investment, but we remain prudent and well-

capitalized. We secured a new committed €450 million short- to mid-term term loan facility and successfully

completed the first equity raise since our IPO in 2018. The €300 million raised has already been put to work

funding our acquisition strategy, notably in Germany in 2023, and provides further headroom for opportunities

within the sector that strengthen our position in our core markets.

Looking ahead, we are confident of achieving our target of adding an additional 90,000 sqm to our portfolio in

2024, and sustaining this growth level annually. We are always mindful of the environment in which we operate,

but with current momentum we expect all store revenue to grow by c. 7.5% in 2024.

Our achievements in 2023 are a demonstration of the motivation and dedication of our employees, the loyalty of

our customers, the support of our shareholders and the involvement of our Board of Directors. I thank all of them

on your behalf.

Marc Oursin

Chief Executive Officer

Shurgard has delivered a very strong financial performance in 2023, driven by the dual

engines of same store sales growth and portfolio expansion through the ramp‑up of new

developments and acquisitions. 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 2024 through 2026.

Key financials

Income from property (NOI)

€ million (at CER)

+9.9%

Underlying EBITDA

€ million (at CER)

+8.4%

Adjusted EPRA Earnings

€ million

+10.3%

NOI margin (Same store)

% (at CER)

+0.9p

NOI margin (All store)

% (at CER)

+0.6p

Epra net tangible assets (NTA)

€ million

+18.4%

Dividend per share

€

Portfolio expansion investments

€ million (at CER)

+0.4%

Notes: See page 24 for notes to Key Financials.

2023202220212020

215.8

190.9

171.5

237.2

2023202220212020

196.4

171.5

156.0

213.0

2023202220212020

143.6

131.0

118.0

158.4

2023202220212020

66.7

65.5

63.9

67.6

2023202220212020

65.8

64.7

63.7

66.3

2023202220212020

3,638.9

3,112.6

2,575.5

4,307.8

2023202220212020

142.9

135.7

105.8

143.5

2023202220212020

1.17

1.06

1.17

Property operating revenue

€ million (at CER)

+9.0%

2023202220212020

328.2

295.1

269.4

357.7

SHURGARD ANNUAL REPORT 2023

Two years ago, Shurgard made a commitment to accelerate growth, doubling the rate of

investment and development by 2024. As we approach our goal, we are on track to deliver

an additional 90,000 sqm per annum of rental space by 2024.

Throughout this acceleration phase, we have continued to

focus on growing the business profitably, and 2023 has

been another very strong year. Property operating revenue

rose 9.0% in 2023, NOI margins from our same store portfolio

increased 0.9pp, and Adj. EPRA earnings were up 12.3% at

constant exchange rate.

In addition, as the cost of capital has risen, we have

increased our expected property yield at maturity (hurdle

rate) to 8‑9%, from the 7‑8% forecast at the start of our

acceleration program, as we benefit from the efficiencies

of digitization.

DIGITAL FOUNDATIONS FOR SUCCESS

As a B2C industry, the basis of our success is a strategy

that evolves alongside our customers, leveraging new

technology across our portfolio of properties in seven

markets. The diversity of location and efficiency of our

platform approach means improvements, many of them

digital, can be replicated across the portfolio, quickly

and effectively.

Technology, not only improves the efficiency of the business

but also ensures we provide our customers with the experience

they need. Want to book and pay for rentals online? We

have been offering that seamless experience for three years

already. Want to manage your rental on your phone? Our new

app can do that for you. Still want that face to face? You can

come into a store or speak to someone on the phone.

Our digital platform has enabled Shurgard to optimize

the operating model in our densely clustered stores, and

during 2023 we successfully trialed remotely managed

stores that are managed from nearby serviced sites.

This provides us with more opportunities to incorporate

smaller stores in dense urban locations, offering our

customers more choice closer to their homes.

In addition, we are trialling a state‑of‑the‑art building

management system that monitors energy use and spots

anomalies to ensure they are rectified quickly, reducing

costs and improving environmental outcomes.

INDUSTRY LEADER

The self‑storage industry in Europe is being fueled by

positive drivers of growth. Urban density, a shortage

of housing stock, increased awareness of self‑storage

solutions, the need for flexibility in a post‑Covid digital age,

all propel the growth of the industry.

But even as the industry is swept along on that forward

momentum, Shurgard has proved itself a leader in

its markets.

We are able to maintain industry leading occupancy levels

because our core customer base is residential (c. 80%

vs 20% business customers), and they react more slowly

to economic swings. In addition to our core residential

customers, we also support and provide for our business

customers, who use Shurgard for inventory storage or as

distributed retail hubs.

The other distinguishing factor is the urban cluster model

that Shurgard replicates across all seven of our operating

countries. Buying, building, and expanding in high density

central locations introduces efficiencies which become

even more profitable as we expand our digitalization

program. Remotely managed stores mean Shurgard can

be increasingly flexible with its store size, opening up new

opportunities in established markets. These key strategic

pillars have enabled Shurgard to consolidate its leadership

and grow its market share.

Building on digitalization to accelerate growth

MANAGE YOUR

RENTAL ON

YOUR PHONE

SHURGARD ANNUAL REPORT 2023

Shurgard has built its portfolio of 93% freehold properties on a

focused location strategy of capital and tier one 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. Capital 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.

THE

LARGEST

owner and operator

of self‑storage facilities in

Europe by both number of

stores and rentable space.

185

CAPITAL CITIES

As of December 31, 2023 18

stores are located in other

cities not highlighted on the

map. “Major cities” defined

as non‑capital cities with a

certain level of population.

 MAJORCITIES(TIER1)

STOCKHOLM

malmo

COPENHAGEN

BERLIN

dusseldorf

cologne

PARIS

lille

bordeaux

lyon

nice

munich

marseille

hamburg

major

dutch cities

gothenburg

frankfurt

stut tgart

276 stores

in seven countries

1.4 million sqm

of space

190,000

customers

AMSTERDAM RANDSTAD

BRUSSELS

LONDON

major belgian cities

Our store locations

SHURGARD ANNUAL REPORT 2023

Penetration per channel of net contracts

Digitalization is a very broad term, so what does it actually mean for Shurgard? It means

going beyond the basic digital touchpoints like websites and emails. It means transforming

our business using digital technologies that support all our stakeholders, from customers

and shareholders to employees and community members.

At the very heart of our digital journey is centralization.

The economies of scale inherent in our size and

geographic concentration allow Shurgard to offer a

great service without adding extra costs. And to do

this we have developed centralized platforms that

streamline our operations and continuously improve the

customer journey.

Shurgard’s core IT strategy serves as a base on which

we can develop other applications, processes and

technologies. While it is centralized to provide all our

operating countries and properties with access to the

same tools, the applications and processes built on it can

be personalized to the country, the store or the customer.

For example, in 2023 Shurgard launched its mobile app,

which allows customers to manage their bookings or rental

on the one device they always have on hand. Any customer

in any location can download the app and use it to pay

bills, verify their address, opt into recurrent payments or

physically access their storage unit using the app.

This centralized platform was a key reason Shurgard was

able to respond quickly when the pandemic changed the

way many customers chose to access our services. Within

just the first six months of 2021 the company was able to

implement its entirely digital e‑rental solution.

Now it takes only six minutes to find, book and pay for a

self‑storage unit via the e‑rental platform, and this channel

already accounts for 39% of all bookings.

Even those customers who are not directly booking through

e‑rental are mostly connecting via digital touchpoints.

Around 90% of prospective customers find Shurgard via

the website, and the more services we offer online or on

mobile, the more customers use them.

We can offer the customer‑facing benefits of our

digitalization program because the technology runs

right through the business, from head office to stores to

storage units. Technology helps us manage our assets,

driving customer acquisition and loyalty, and supporting

our dynamic pricing model which is a key driver of

rental growth.

When we optimize our digital processes, we lower costs,

improve operational efficiency and increase margins. The

scalability of the platform allows Shurgard to add square

meters to our portfolio with marginal cost increases,

so shareholders benefit from digitalization as much as

customers do.

Digitalizing our operations

Walk

Call

Web booking

e-Rental

100

2023202220212020201920182017201620152014

SHURGARD ANNUAL REPORT 2023

DATA

LAKE

Shurgard’s digitalization program has exponentially grown

the volume of data we generate. From bookings and web

interactions, to store visit frequency and usage statistics,

to lighting and heating management, Shurgard is awash

with data, and we need to use it well to ensure all our

stakeholders benefit while ensuring that we always comply

with GDPR regulations.

For example, we will install a new back‑office Enterprise

Resource Planning (ERP) system which will improve

enterprise productivity and generate new data that

will give much better visibility across the financial and

operational landscape.

We are building the digital architecture that will sustain our

growth. This year in addition to back‑office investment,

we have installed smart building management systems in

two test markets in Belgium and the Netherlands, which

are designed to optimize property maintenance. As the

outcomes are measured, we will look to expand the system

to gain both financially and environmentally.

The experts in our new Data & AI team are ensuring we

have a single version of the truth. This means verifying,

processing and organizing the raw data that comes

in from all parts of the business, and analyzing it to

generate new insights, unlock efficiencies and improve the

customer experience.

PROPERTY TECHNOLOGY

All this new data has transformed Shurgard into a ‘proptech’

company, the industry shorthand for companies that use

technology to manage their properties more efficiently.

How can we ensure we are available for customers

when they need us? Visit frequency data can answer

that question. Is energy consumption in line with

customer volume, and if not, why not? Data from our

Building Management System which measures electricity

consumption on site, and customer data can be compared

and analyzed to find anomalies and then solutions. Are our

customer prospects aligned with local demand and local

pricing? Our data science‑based pricing algorithm can

adjust for many variables that enable us to deliver industry‑

leading occupancy rates and revenue maximization.

The deep insights we can generate from the data to

understand customer behavior, store usage, marketing

and demand, means we are finding new ways to improve

the service customers receive when they choose Shurgard

as their self‑storage provider. And our shareholders are

benefiting too. New developments in property technology,

combined with improved efficiencies across finance,

operations and human resources, are supporting profitable

growth. The proof is in the margin, which increased 0.9pp

on a same store basis in 2023.

Data is omnipresent. Everything we do is captured somewhere, on our phone, in our

online shopping basket, via internet banking, using GPS while driving and the data

generated from all these interactions is used, in anonymized form, to offer us better

products or services.

The “data lake”

FINANCE PROCESSES

CUSTOMER BOOKINGS

PROFITABILITY INCREASE

WEBSITE

STORE VISITS

LIGHTING AND BUILDING

MANAGEMENT

AI INSIGHTS

INNOVATION

EFFICIENCY

SHURGARD ANNUAL REPORT 2023

We have seen customer behavior evolve over recent

years, responding to the lightning pace of change in the

technology landscape that has irrevocably changed the

way we all live, work, shop and even play. But it has not

changed the motivations for using our self storage though,

and in some cases has increased demand. People still move

houses, get divorced, graduate from university, downsize,

upsize and create small businesses. In addition to these life

events, the trend towards hybrid working has increased

the need for self storage, to make space for a home office

in the closet, the living room, the bedroom or the shed.

DIGITAL DEMAND

Digitalization is at the heart of customer change and

business evolution. Consumers demand every service at

their fingertips, on their phone, tablet or laptop. They are

‘always on’ and they expect us to be too. That is why 90% of

Shurgard interactions start from a digital touchpoint. Since

2021, all Shurgard customers can research, book and pay for

their storage unit via our “e‑rental” service, which accounts

for 39% of all bookings made. And now our customers can

access and manage their storage from the new app on

their phone.

Shurgard’s strength lies in its significant geographic

diversity, and the leverage of a centralized system that

drives margin improvement. But we never lose sight of the

fact that our seven operating countries are unique in their

own ways. In 2023, Shurgard introduced a range of new

ways to pay for e‑rental bookings that more accurately

reflect the customs and preferences of each country.

For example, in Germany it is common to pay online using

Paypal, whereas in the Netherlands they use iDEAL. Other

countries prefer Apple Pay or other regional variations.

Shugard is ensuring that each customer experience is

attuned to the local demand. We have also begun to

implement a new customer identity management, which

requires different types of verification depending on

location. We have been pleased with the level of uptake

for this extra layer of security, even in the UK where the

process is far more complex than in say Sweden where all

adults have a bank ID they can use for other verification

requests.

PERSONAL TOUCH

Where 90% of our customer prospects start their journey

digitally, they do not all end there. Many customers still

want to interact directly with our employees, ask questions,

discuss options, so many of them still call us, and we are

making sure they get the best experience there too. In

2023, Shurgard overhauled our telephony system to make

it flexible enough for the changing needs of our customers.

It is now integrated with other methods of contact, like

text messaging, so customers also have optional digital

touchpoints that stem from that one phone call.

Every prospect is a potential customer, so they should all

be able to use their preferred method of communication,

whether online, on the phone or in person. Our job is to

make it simple and accessible to find the right information

whenever and wherever they are.

Self storage is being driven by a spate of mega‑trends, including Artificial Intelligence (AI),

robotics, urbanization and home working, that are changing the face of the industry.

Whether they are the cause or the effect, our customers are at the heart of these changes.

They fuel our business. Every modification, innovation or evolution we make to our service

is made with our customers at the forefront of our mind.

Customer-centric innovation

SHURGARD ANNUAL REPORT 2023

The relevance for Shurgard is the introduction this year

of remotely managed stores which are geographically

close to service stores but operate as satellites, managed

remotely. We have run a series of trials through the course

of 2023 and the outcome has been overwhelmingly

positive. Remotely managed stores are visited regularly

by staff based at the service store, where operational

tasks are completed and customers who require in person

assistance are engaged with.

We are still open for business as usual, offering a range

of ways to contact us, from online and phone to face‑to‑

face interactions to best cater to our diverse customer

base. One fifth are baby boomers, a third are Gen‑

Xers, 38% are millenials and 10% are under 26 (Gen‑Z).

We want to ensure they can access our services through

their preferred channel. Our on site and remotely managed

stores form nearby clusters, so any issues that arise can be

quickly dealt with.

When queries do not require in‑person accommodations,

customers are happy to receive support online or by phone.

The remotely managed store option is only possible because

of Shurgard’s geographic concentration in capital and key

cities. High density locations in cities like London, Paris,

Stockholm, Copenhagen and the Randstad conurbation

in the Netherlands are the testbed for remotely managed

stores, and the success of the trials means Shurgard can

expand its type and size of property opportunities.

Fixed human resource costs for smaller sites might have

made them uneconomical in the past, but now remotely

managed stores are not only feasible but desirable. They

allow customers to benefit from more storage locations

closer to their home or business, and contribute to

improving margins.

The success of the initial trial means Shurgard will

prepare for a wider expansion of the on site/remotely

managed model.

We have all become used to scanning our basket of shopping at the supermarket, doing

away with long queues for the checkout. For the supermarket chain, it means one or two

employees can manage a steady flow through a greater number of tills, increasing

efficiency for both customers and companies.

Remote control

REMOTELY MANAGED

SHURGARD ANNUAL REPORT 2023

Shurgard’s ESG commitments are an integral part of the

business, informing operational decisions and permeating

throughout the culture of the organization. We have a

robust strategic plan to achieve net zero in two distinct

phases and our progression along this path is recognized

by industry‑leading scores from external sustainability

organizations and the frameworks we adhere to. 2023 was

another high watermark for Shurgard’s sustainability goals.

DOUBLE MATERIALITY ASSESSMENT

In 2023, Shurgard undertook what is known as the Double

Materiality Assessment, a process which considers the

material impact of Shurgard on the environment and

society, as well as the material impact of the environment

and society on Shurgard and its financial and reputational

performance. The materiality process included both our

internal assessment and the feedback received from our

various stakeholders (customer feedback, supplier surveys,

investor days, employee feedback, etc.). We have also

continued to conduct a physical climate risk assessment of

our entire portfolio of 276 stores. All these elements have

allowed us to consider how sustainability topics correlate

with our business strategy, and help us to develop

sustainability materiality processes that link with the

wider risk management process. This process is ongoing

and we will continue to monitor ESG impacts coming

into, and flowing out from the business, and find ways to

mitigate them.

Leading the industry in ESG

ENVIRONMENTAL SUSTAINABILITY

2023 was another year of successes in our environmental

sustainability journey, including exceeding our target for

reducing like‑for‑like energy consumption – we achieved

40% by year end, compared to the 10% initially targeted

against a 2017 baseline. We have done this through

a program of energy reduction measures including

retrofitting LED lighting (a project that concluded in 2023

with 100% of LED lighting across the entire portfolio),

implementing a smart building management system at

88 stores in Belgium and the Netherlands initially (with

plans to expand the trial if successful), equipping a total

of 26 stores with heat pumps (out of 108) to replace gas

heating, and ensuring more of our properties conform to

excellent building ratings by 2029.

We also currently have solar panels installed at 23

properties, and as part of our energy generation strategy

we are embarking on a full technical assessment of our

properties in the Netherlands, a country where electricity

production has a high carbon intensity. The process

includes studying roof structure and capacities, electrical

connections, permit requirements and reinjection

possibilities. This will allow us to make sure that resources

and funding can be planned and committed effectively.

These energy saving measures concern our scope 1 and

2 emissions which specially refer to emissions generated

by us or emitted from energy purchased for our use.

To move closer to net zero, we are also beginning to

measure and plan for mitigating our scope 3 emissions,

which are indirectly generated by our value chain and

which are often outside of our direct control. Scope 3

emissions are the hardest to measure and mitigate but

we have made a start this year, focusing on business

travel, employee commuting and customer visits, initially

through measurement but with a view to lowering the

emissions from this business activity.

The journey to net zero carbon is predicated on a

strategy that looks first to reducing energy consumption,

secondly to optimizing energy consumption with low‑

carbon alternatives, thirdly using renewable energy

suppliers and finally, only if needed, offsetting any

residual emissions.

The first three key processes are already well under way

and we will continue to apply stringent measures and

targets to achieve our net zero commitments.

1. Reduce energy

consumption

We are reducing the energy

consumption in our stores,

through investments in better

building designs, sensors,

building management systems

and energy‑efficient devices

(e.g., LED lighting).

3. Renewable Energy

supply and generation

We are increasing the share

of our utilities supplied from

certified renewable sources

and are generating on‑site

renewable energy, for instance

with solar panels.

2. Optimize energy

consumption

We are optimizing our energy

consumption mix, stepping out

of carbon‑intense sources like

gas and shifting towards low‑

carbon alternatives (e.g., heat

pumps or equivalent).

4. Offset residual

emissions

As a final step, should any

remaining emissions be

unavoidable, we will offset

it with the financing of

carbon‑positive actions.

SHURGARD ANNUAL REPORT 2023

EXTERNAL RECOGNITION

Benchmark achievements

Shurgard is leading the self‑storage sector in sustainability,

and external agencies and benchmarks recognize us. In

2023 we once again achieved a 5‑star result in the Global

Real Estate Sustainability Benchmark (GRESB), with a score

of 91 out of 100, maintaining the sector leadership we have

held for the past two years. Shurgard also received again

an AA rating on the MSCI ESG Ratings assessment, just

one away from the highest rating. On the Sustainalytics

scale we scored 10.8 on their ESG Risk Rating, which

means Shurgard is at low risk of experiencing material

financial impacts from ESG factors. We also maintained

our gold award at the EPRA Sustainability Best Practices

Recommendations, which we first achieved in 2021.

UN Global Compact

The Sustainable Development Goals (SDG) are part of a

framework developed by the United Nations (UN). It brings

together society, governments, and business to drive

positive change. 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.

New awards in 2023

As we continue to steer our sustainability strategy towards

net zero carbon, Shurgard has been recognized with three

new awards and achievements in 2023. We are proud to

have been selected to be part of the newly created BEL ESG

Index, which is designed to identify the top 20 companies

in Belgium that demonstrate high ESG practices alongside

solid investibility metrics like free float and liquidity.

In addition, as part of our commitment to strong governance,

Shurgard received the Best Financial Communication

award from the Belgian Centre of Expertise for Finance

Professionals.

And in November, The Belgian‑Luxembourg Chamber

of Commerce in Great Britain honored Shurgard with

the esteemed Golden Bridge Award for Environmental,

Social, and Governance (ESG) Excellence in 2023. This

recognition amplifies Shurgard’s unwavering commitment

to sustainability and responsible corporate citizenship.

CYBERSECURITY

In an era characterized by increased reliance on digital

technologies and data, cybersecurity has become a

critical concern for organizations like Shurgard. As cyber

threats continue to evolve in sophistication and frequency,

we are protecting our information and systems through

collective responsibility that spans across all levels of

the organization. We have conducted a comprehensive

risk assessment to identify potential vulnerabilities

and threats. Strong cybersecurity policies have been

established, and on top of specific awareness campaigns,

all our employees have followed a cybersecurity training

and phishing simulation exercises. In 2023, our executives

have also live‑tested our incident response plan, through

a simulation of a cybersecurity breach, enabling Shurgard

to best respond to cyber‑attacks or threats to information

security, minimizing losses, leaks, or disturbances, and

reacting swiftly and effectively to such an event. We also

conducted security audits, vulnerability assessments, and

penetration testing. By implementing these fundamental

cybersecurity practices, we significantly reduce our risk

exposure, protect our data, and maintain the trust of our

stakeholders.

Percentile 91% of the

real estate industry

SHURGARD ANNUAL REPORT 2023

Leading the industry in ESG continued

SOCIAL ENGAGEMENT

Every year Shurgard sustains its charitable and social

engagement. Each region and every store is involved in

some form of local community outreach, many of which

have been ongoing for several years, forging strong

personal connections.

Three stores in Paris have for some years provided free

storage space for Le Rire Médecin which supports clowns

going into hospitals to entertain children. Our staff in

France also participated in an annual Christmas fundraising

flea market for the charity.

In the Netherlands, Shurgard stores serve as a collection

point for baby essentials for the charity Stichting

Babyspullen, and in the UK, our long‑standing association

with the Mayor’s Fund for London supports young

Londoners from low‑income backgrounds by organizing

job readiness workshops.

We support Team Rynkeby, a Nordic charity cycling team

raising money for organizations that support children with

critical diseases across Europe, and Off Road Kids, a German

non‑profit organization that runs a street social work

system to prevent homeless young people from becoming

street children. Shurgard supports Pelicano, a foundation

battling child poverty in Belgium, by offering free storage

at seven locations, aiding in providing essential needs

for children.

The community and our staff benefit from these charitable

actions and we will continue to expand our repertoire,

providing scope for our employees to support causes that

are meaningful to them.

25 March, 2023, Shurgard’s Nordic team met at three different gyms in Malmo,

Gothenburg and Stockholm. Over 50 Shurgard employees from SWE & DK

volunteered to do spinning together with Team Rynkeby for the Children’s

Cancer Foundation.

EMPLOYEE WELLBEING

Shurgard has always prided itself in offering a welcoming

and inclusive place to work, but we have gone much

further in 2023, implementing a range of well‑being

initiatives that focus on both mental and physical well‑

being. An employee survey identified a range of activities

that can enrich the employee experience. Some of these

implemented include bi‑monthly stress relief workshops

for support center staff, improving indoor air quality and

lighting control in office spaces, encouraging support

center staff and store employees to use the office bicycles

during lunch breaks, and promoting social interaction

through team events.

In 2023, Shurgard launched our pillars training which helps

new hires integrate into our working culture by introducing

them to our four value pillars – Happiness, Training, Team

spirit and Perspective.

Our commitment to staff is recognized in our 2023 silver

Investors in People accreditation, and we will continue to

empower our employees and enrich the company culture

to build on this achievement.

HAPPINESS PERSPECTIVETEAM SPIRITTRAINING

SHURGARD ANNUAL REPORT 2023

Transition

to low‑carbon

economy

Save

water

Responsible

waste management

Resilience of

properties to

climate risks

SUSTAINABILITY AIMS

We have translated our material topics into concrete sustainable goals. Under these four pillars of sustainability, we

focus on what is good for the business and for a sustainable future. This leads to responsible investment solutions and

decisions, with enhanced value for all our stakeholders.

As an owner and operator of

real estate, we want to develop

in a sustainable manner, by controlling

and limiting our environmental impact.

Shurgard is passionate about creating

excellent and safe workplaces which

maximize wellbeing and productivity

of our employees, and foster an

open, supportive, diverse, and

inclusive culture.

Shurgard wants to contribute to a

sustainable society, building a positive

and lasting relationship with our

neighbors, communities, customers,

and suppliers alike.

Shurgard is committed to respecting

high governance standards. It is

organized in such a way as to promote

a strong culture of awareness of

compliance, business ethics and

risk management.

Safe and

inclusive

workplace

Invest in the

development of

our people

Share and

live the Shurgard

culture

Best‑in‑class

customer

service

Customer

privacy and

safety

Positive impact

on local

communities

Encouraging

ESG best‑practices

in our supply chain

High

governance

standards

Business

ethics and code

of conduct

Data and

cyber‑security

SUSTAINABLE DEVELOPMENT

EMPLOYER OF CHOICE

POSITIVE IMPACT ON SOCIETY

ETHICS & GOVERNANCE

OUR SUSTAINABLE AIMS

SHURGARD ANNUAL REPORT 2023

OPERATIONAL EFFICIENCIES

Shurgard’s digital shift encompasses all parts of the

business. From our back‑office finance employees who

will be able to carry out operational duties quickly and

easily on the new ERP system, to our customers who

can now pay using the iDEAL e‑commerce system in the

Netherlands. These important improvements are part of a

wider shift to incorporating the best property technology

into our everyday operations.

In 2023 we added several new payment methods to our

platform to cater to the different preferences in each

of our markets. Our app services have also expanded

substantially this year, and customers can now manage

their account, pay bills, change billing frequency, verify

their address or identity, and most importantly use the app

to access their storage unit without having to remember

an access code.

As our digital footprint grows, we have invested in data

scientists and AI experts to make effective use of all

the data being generated. Customer insights inform our

decision on which operating model works best for which

store, building management data informs our strategy on

energy allocation, and demand and supply data informs

our intelligent pricing algorithm. Through digitalization

we are ensuring that Shurgard continues to build on solid

long‑term foundations.

REMOTELY MANAGED STORES

The introduction of remotely managed stores has been

a major operational highlight for Shurgard. We wanted

to ensure the operating model would work well for both

customers and the business, so we undertook a series of

trial stores initially, expanding the project as the concept

proved effective. Remotely managed stores are clustered

near on‑site managed stores, which allows site managers

to carry out operational tasks at the remotely managed

stores when required or deal with any customer issues

that require a physical presence. Outside of these periodic

visits, the remotely managed stores are controlled digitally.

The success of the remotely managed stores model

has reduced Shurgard’s store employee costs and

increased the opportunity for on‑site managers and staff to

take on wider responsibility and expand their personal

development goals.

Shurgard can now also take advantage of property

opportunities that might previously have been cost

prohibitive, for example a small store that was uneconomical

because of the cost of an on‑site store manager has

become viable under the remotely managed stores model.

This means we can consider more locations and improve

the proximity to our customers. We anticipate increasing

the number of remotely managed stores over the next

two years.

Operational highlights

SUSTAINABILITY – THE BEL ESG INDEX

Shurgard incorporates sustainability into all aspects

of its operational performance. We have a strategy

of continuous improvement embedded in our ESG

processes, and we once again were recognized for this

by all of the sustainability frameworks that we adhere

to. In addition, we were very pleased to be included

in a new BEL ESG Index created by Euronext, for

companies in Belgium that can demonstrate the lowest

Environmental, Social and Governance risks. The index

identifies companies that are actively contributing to a

more sustainable future.

Shurgard’s inclusion in the new index not only exemplifies

our commitment to sustainability, it also accentuates

the company to investors who are specifically looking to

increase their ESG exposure.

SHURGARD ANNUAL REPORT 2023

NEW DEVELOPMENTS

The five new developments opened in 2023 centered

around two key markets, London, UK and the

Randstad conurbation in the Netherlands, with three

new properties in the Netherlands and two in the UK.

The first opened in May 2023 in Amsterdam Diemen,

adding 4,000 sqm and offering 570 new self‑storage

units. The Diemen property will serve as a secondary

building to an existing self‑storage property in the same

region. Direct project costs were €3.2 million.

The two other Randstad properties opened in July and

October 2023, the first in Amersfoort, adding 3,100 sqm

to our portfolio at a cost of €5.4 million, and the second

at Amsterdam Portsmuiden adding 7,500 sqm at a cost

of €5.4 million.

Importantly, both new properties complement Shurgard

sites nearby and so will be remotely managed from

these nearby stores as part of our new operating model.

Two additional stores are due to open in the Netherlands

in 2024, and two in 2025, adding a further 18,300 sqm to

the Randstad cluster.

In London, where Shurgard owns 43 stores with 216,000

sqm across the capital, we opened a 6,800 sqm store in

Chadwell Heath, East London in October 2023 at a cost

of €17.9 million. One further property opened in West

London (Chiswick) in December adding an additional

6,500 sqm to Shurgard’s growing presence in London

at a cost of €24.5 million overall. One more London

development is due to open in 2024 and a further four

are due to open in 2025 which will bring the total London

area properties to 48 and 251,900 sqm.

Seven new developments in Germany in 2024 and

2025 will expand our store footprint there by almost

44,000 sqm.

REDEVELOPMENTS

Shurgard completed five major redevelopments in 2023

in four of our key markets, along with several direct

access units, which allow our customers to park directly

outside their unit, across all markets. The direct access

units and redevelopments in Munich, Germany, Rotterdam

and Almere in the Randstad area of the Netherlands,

Stockholm, Sweden, and in London, UK, contributed an

extra 19,600 sqm to our storage portfolio at a total cost

of €17.9 million.

ACQUISITIONS

In October 2023, Shurgard made the acquisition of five

operating properties and two development assets from

Top Box self‑storage in Germany. In total the acquisition,

redevelopment and new development costs amount to

€97.6 million and we expect to achieve a stabilized yield of

around 8%. In February 2024, Shurgard acquired the high‑

quality freehold portfolio of three operating properties in

Berlin and three in Hamburg from Pickens in Germany for

a purchase price of €120 million.

Top Box’s existing portfolio in Germany (Essen, Duisburg,

Cologne, Wiesbaden and Mannheim) alongside the Pickens

properties in Berlin and Hamburg, fit perfectly within our

German expansion strategy. Our new footprint in Germany

propels Shurgard to the number two position in the country.

With these two acquisitions and the development pipeline

2024‑2026, we will add 118,700 sqm in Germany, which

will nearly double our footprint compared to the beginning

of 2023.

The transactions are a further step in our growth strategy

across the “Big Seven” cities in Germany, and deploys

the funds raised during the Capital Raise of €300 million

on November 10, 2023. We continue to work on other

identified targets, aiming for completion in the foreseeable

future. In line with our financing strategy, we execute this

ambitious, comprehensive and disciplined investment

approach, within our loan‑to‑value (LTV) and Net Debt to

underlying EBITDA guidance.

SHURGARD ANNUAL REPORT 2023

THE SHURGARD SHARE

Year-to-date stock performance

vs. indices

1 Total performance, assuming reinvestment of dividends.

Stock performance

vs. indices since IPO (Oct 2018)

1 Total performance, assuming reinvestment of dividends. The performance for Shurgard is based on the price at IPO (€23.00 per share).

Shurgard; 7.8%

EURO STOXX 600; 16.6%

FTSE EPRA Nareit; 17.3%

-20%

-15%

-10%

-5%

10%

15%

20%

Shurgard; 123.6%

EURO STOXX 600; 57.4%

FTSE EPRA Nareit; -1.0%

-40%

-10%

20%

50%

80%

110%

140%

170%

15/10/2018

15/12/2018

15/02/2019

15/04/2019

15/06/2019

15/08/2019

15/10/2019

15/12/2019

15/02/2020

15/04/2020

15/06/2020

15/08/2020

15/10/2020

15/12/2020

15/02/2021

15/04/2021

15/06/2021

15/08/2021

15/10/2021

15/12/2021

15/02/2022

15/04/2022

15/06/2022

15/08/2022

15/10/2022

15/12/2022

15/02/2023

15/04/2023

15/06/2023

15/08/2023

15/10/2023

15/12/2023

SHURGARD ANNUAL REPORT 2023

BASIC SHARE DATA

ISIN / common code GG00BQZCBZ44

CFI code ESVUFR

Ticker SHUR

Stock exchange Euronext Brussels

Shares issued / outstanding as of December 31, 2023 97,311,896

Subscribed capital €69,448,518

Share price as of December 31, 2023

€44.86

52-week high / low

€48.79 / €34.01

Market capitalization as of December 31, 2023 €4,365 million

Average daily trading volume

143,121 shares

1 Closing price on last trading day of the month.

2 In each case from start of trading on January 1, 2023 to December 31, 2023, based on Euronext Brussels closing price.

3 Includes trade on Lit, Dark, Auction, OTC and SI markets, based on publicly available information.

DIVIDEND

Shurgard intends to declare a dividend of €1.17 per share for the fiscal year. For the first half of 2023, our Board

of Directors approved a half-year dividend of €0.58 per share or €51.7 million paid on October 5, 2023.

The Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2023 of

€0.59 per share or €57.4 million based on the number of shares outstanding as of December 31, 2023.

This second and final dividend will be payable on or around May 29, 2024, to shareholders on the record at close

of business on May 28, 2024.

Shurgard will continue to review its dividend policy to ensure it remains competitive.

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 maintain the liquidity of

its order book and increase the trading volumes of its share, to benefit current and potential investors.

SHAREHOLDERS

The following table sets forth the shareholders of the Company as of December 31, 2023:

Shareholder Number %

Public Storage 34,132,133 35.1

New York State Common Retirement Fund 32,544,722 33.4

Public 30,635,041 31.5

of which Resolution Capital Ltd 3,694,540 3.8

Total 97,311,896 100.0

SHURGARD 2018

MANAGEMENT REPORT

SHURGARD ANNUAL REPORT 2023

TABLE OF CONTENTS

Key financials ...................................................................................................................................................................................... 24

Preliminary remarks ......................................................................................................................................................................... 25

Group overview .................................................................................................................................................................................. 25

Market overview ................................................................................................................................................................................ 28

Growth strategy ................................................................................................................................................................................. 29

Property portfolio .............................................................................................................................................................................. 30

Operational and financial review .................................................................................................................................................. 33

Group results ............................................................................................................................................................................ 33

EPRA KPIs ................................................................................................................................................................................... 42

EPRA NAV METRICS ................................................................................................................................................................. 44

Liquidity ...................................................................................................................................................................................... 44

Cash Flow overview ................................................................................................................................................................. 44

Financial position .................................................................................................................................................................... 45

Dividend ..................................................................................................................................................................................... 46

Employees .................................................................................................................................................................................. 47

Risks ............................................................................................................................................................................................. 47

Events after the reporting period ........................................................................................................................................ 47

Sustainability report ......................................................................................................................................................................... 48

Shurgard’s ESG highlights..................................................................................................................................................... 49

Shurgard Self Storage ............................................................................................................................................................ 53

Risk Assessment and Double Materiality ......................................................................................................................... 54

Sustainabile Self Storage ....................................................................................................................................................... 61

Employer of choice ................................................................................................................................................................. 78

Positive impact on society .................................................................................................................................................... 87

Ethics & Governance .............................................................................................................................................................. 94

GRI, EPRA, EU Taxonomy and CSRD .................................................................................................................................. 112

Remuneration report ....................................................................................................................................................................... 153

Principal risks and uncertainties ................................................................................................................................................. 162

Related Party Transactions ........................................................................................................................................................... 172

Directors’ Report .............................................................................................................................................................................. 173

SHURGARD ANNUAL REPORT 2023

KEY FINANCIALS

(in € millions, except where indicated

otherwise, excluding property under

management contract)

Q4 2023 Q4 2022 +/- (CER)

FY 2023 FY 2022 +/- +/- (CER)

Property KPIs at period end

Number of properties 275 266 275 266 3.4%

Closing rentable sqm

1,391 1,343 1,391 1,343 3.5%

Closing rented sqm

1,207 1,167 1,207 1,167 3.4%

Closing occupancy rate

86.8% 86.9% 86.8% 86.9% -0.2pp

Property KPIs for the period

Average rented sqm

1,212 1,162 4.3% 1,196 1,146 4.3%

Average occupancy rate

88.2% 88.2% 0.0pp 88.3% 88.5% -0.2pp

Average in-place rent (in € per sqm)

267.9 260.3 3.5% 261.4 252.4 3.6% 5.1%

Average revPAM (in € per sqm)

270.0 263.0 3.3% 264.1 257.0 2.7% 4.2%

Financial KPIs for the period

Property operating revenue

92.7 86.6 7.7% 357.7 333.0 7.4% 9.0%

Income from property (NOI)

64.1 59.0 9.4% 237.2 219.2 8.2% 9.9%

NOI margin

69.1% 68.1% 1.1pp 66.3% 65.8% 0.5pp 0.6pp

Underlying EBITDA

56.2 55.3 2.2% 213.0 199.8 6.6% 8.4%

Adjusted EPRA earnings

43.9 39.7 11.3% 158.4 143.6 10.3% 12.3%

Adjusted EPRA earnings per share

(basic) (in €)

0.47 0.45 6.2% 1.76 1.61 9.0% 10.9%

Average number of shares

(in millions - basic)

93.4 89.1 4.8% 90.2 89.1 1.3%

Total dividend per share (in €)

1.17 1.17 0.0%

FY 2023

FY 2022

+/-

Financial KPIs for the period

EPRA net tangible assets (NTA)

4,307.8 3,638.9 18.4%

Loan-to-value (LTV)

13.0% 18.0% -5.1pp

FY 2023

FY 2022

+/-

Financial KPIs for the period

Interest coverage ratio (ICR)

10.6x 9.7x 0.9x

Net debt/Underlying EBITDA

3.1x 4.1x -1.0x

1 In the constant exchange rate (CER) comparison, 2022 financials are recalculated using 2023 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, fee income from customer goods insurance 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 Underlying EBITDA is calculated as earnings before interest, tax, depreciation and amortization, excluding (i) valuation gain from investment property and investment property under

construction and gain on disposal, (ii) acquisition and dead deals costs (iii) cease-use lease expense and (iv) ERP implementation fees and costs of capital raise.

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.

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 underlying EBITDA divided by total interest expenses for the reporting period.

18 Net debt to underlying EBITDA ratio is calculated as the net financial debt (including leases) divided by trailing 12 months underlying EBITDA.

SHURGARD ANNUAL REPORT 2023

PRELIMINARY REMARKS

Shurgard Self Storage Ltd (referred to as the “Company”, “Shurgard”, “we”, “us”, “our” or the “Group”, which

includes the Company together with its consolidated subsidiaries) is a limited company incorporated under the

laws of the

Bailiwick of Guernsey.

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.

We started our operations in 1995 and are

one of the pioneers of the self-storage concept in Europe. As of December 31, 2023, we operate 276 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 2023 compared to 2022.

(in € millions) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Property operating revenue 92.7 86.6 7.1% 357.7 333.0 7.4%

NOI 64.1 59.0 8.7% 237.2 219.2 8.2%

NOI margin 69.1% 68.1% 1.0pp 66.3% 65.8% 0.5pp

1 FEDESSA “European Self Storage Annual Survey” 2023.

SHURGARD ANNUAL REPORT 2023

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 66.3% in 2023 compared to 65.8% in 2022.

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 Ltd is the parent Company and principal holding Company of the Group. The Company’s

significant holding and operational subsidiaries are in Luxemburg, France, the Netherlands, the United Kingdom,

Sweden, Germany, Belgium and Denmark.

Name

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 Nederland B.V. The Netherlands 100.0%

Shurgard UK Ltd The United Kingdom 100.0%

Shurgard Sweden AB Sweden 100.0%

Shurgard Storage Centers Sweden KB Sweden 100.0%

Shurgard Germany GmbH Germany 100.0%

First Shurgard Deutschland GmbH Germany 94.8%

Second Shurgard Deutschland GmbH Germany 94.8%

Shurgard Belgium NV/SA Belgium 100.0%

Shurgard Europe VOF/SNC Belgium 100.0%

Shurgard Denmark ApS Denmark 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 Note 38 of the 2023 consolidated

financial statements.

SHURGARD ANNUAL REPORT 2023

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. Since 2021, Eirene RE

S.A. acts as a reinsurance undertaking for the Company and its subsidiaries.

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 Incorporation. As of December 31, 2023, the Board

of Directors comprised the following 9 members:

Name Position Age Mandate expires

Ian Marcus Chairman 65 Annual shareholders’ meeting 2024

Lorna Brown Independent Director 48 Annual shareholders’ meeting 2024

Muriel De Lathouwer

Independent Director

Annual shareholders’ meeting 2024

Olivier Faujour

Independent Director

Annual shareholders’ meeting 2024

Frank Fiskers Independent Director 62 Annual shareholders’ meeting 2024

Padraig McCarthy

Independent Director

Annual shareholders’ meeting 2024

Z. Jamie Behar

Director 66 Annual shareholders’ meeting 2024

Tom Boyle

Director 40 Annual shareholders’ meeting 2024

Marc Oursin Chief Executive Officer 61 Annual shareholders’ meeting 2024

1 Director elected on the designation of New York State Common Retirement Fund (NYSCRF).

2 Director elected on the designation of Public Storage.

The biographies of the Directors are available on in our Sustainability Report.

As of December 31, 2023, 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 61 January 9, 2012

Jean Kreusch Chief Financial Officer 59 November 1, 2003

Duncan Bell Chief Operating Officer 60 April 14, 2009

Ammar Kharouf General Counsel 53 March 17, 2014

Isabel Neumann Chief Investment Officer 48 August 30, 2021

SHURGARD ANNUAL REPORT 2023

MARKET OVERVIEW

SELF-STORAGE BASICS

Self storage is a business-to-consumer (B2C) enterprise in the real estate sector that provides storage units,

typically on a monthly basis, to individuals (approximately 72%) and business users (approximately 28%).

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 households 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 6,929 facilities across Europe, providing nearly 13.9 million sqm of space.

the seven countries where we operate, there are approximately 12.0 million sqm of rentable area across

approximately 5,000 self-storage properties (including containers).

The largest self-storage market in Europe is the United Kingdom, accounting for 33% of total facilities. Over

68% of the facilities are located in the four most mature countries within Europe (UK, France, Germany and

Spain) with 19 countries making up the remainder.

The average amount of self-storage floor area per capita

across Europe is significantly lower than the much more mature US market, indicating significant further growth

potential.

In terms of competition, the European self-storage market is still highly fragmented. 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 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.

1 Internal estimate.

SHURGARD ANNUAL REPORT 2023

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.

The 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 increase 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 (known as the “Big Seven”), as well as

Randstad in the Netherlands. Our growth strategy benefits from our established track record of redeveloping and

developing properties, plus acquiring competitors. 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.

FOOTPRINT EXPANSION

With our reinforced development team of dedicated development, acquisition and construction specialists, we

are seeking to add 90,000 sqm per year from 2024 through new developments and acquisitions.

We plan new developments, which could be purpose built or an existing building converted into self storage, by

focusing on a set of clear selection criteria, both operational and financial, including attractive and cycle-resilient

locations in our existing markets.

In addition, 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, 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 2023

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, supported by machine learning predictive pricing. 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.

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 one store under management contract) has grown to a network

of 276 properties comprising 1,398,483 net rentable sqm, as of December 31, 2023. We primarily operate in urban

areas across Europe, with 93% of our properties located in capital and major cities. At the end of December

2023, 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 88.2% in 2023. The average in-place rent per sqm was €261.1

during the period.

The following table shows our portfolio by country, as of December 31, 2023:

Total number

of properties

Net rentable

sqm (in

thousands)

Freehold

and long

leasehold

Average

occupancy

rate

Average in-

place rent (in

€ per sqm)

France 66 332 94.5% 86.0%

261.0

The Netherlands 67 337 82.9% 90.0%

229.9

United Kingdom 43 216 94.5% 86.5%

356.0

Sweden 39 196 96.7% 89.2%

235.4

Germany 30 147 96.1% 85.9%

264.4

Belgium 21 117 100.0% 92.4%

217.3

Denmark 10 53 100.0% 91.7%

288.5

Total 276 1,398 92.9% 88.2%

261.1

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 2023

PORTFOLIO EXPANSION

Property Region Country

Project

status

Completion

date

Net sqm

Direct

project cost /

purchase

price

Opened in 2023 64,607 143,451

Major redevelopments

Unterfoehring Munich Germany C Dec-23 3,499 5,354

Rotterdam Randstad Netherlands C Dec-23 4,537 2,246

Almere Buiten Randstad Netherlands C Dec-23 1,160 1,869

Uppsala

Stockholm Sweden C Mar-23 1,676 0

Euston London UK C Jun-23 692 131

Direct access units

- - C Dec-23 8,054 8,272

New developments

Amsterdam Diemen Randstad Netherlands C May-23 4,004 3,213

Amersfoort Randstad Netherlands C Jul-23 3,060 5,360

Amsterdam Portsmuiden Randstad Netherlands C Oct-23 7,505 5,389

Chadwell Heath London UK C Oct-23 6,812 17,939

Chiswick London UK C Dec-23 6,462 24,477

M&A / Asset Acquisitions

Top Box (5 properties)

NRW/Frankfurt Germany C Oct-23 17,146 69,200

Scheduled to open in 2024 67,765 195,519

Major redevelopments

Top Box major redevelopments NRW/Frankfurt Germany UC Q4 2024 5,096 2,528

Hayes London UK UC Q4 2024 4,194 8,925

Southwark London UK UC Q4 2024 2,644 7,641

Direct access units

- - UC Q4 2024 2,834 2,870

New developments

Charlottenburg Berlin Germany UC Q3 2024 4,923 15,480

Nieuwegein Randstad Netherlands UC Q4 2024 4,533 8,687

Almere Veluwsekant Randstad Netherlands UC Q4 2024 4,073 8,071

Tottenham London UK UC Q2 2024 8,168 21,318

M&A / Asset Acquisitions

Pickens (6 properties)

Berlin/Hamburg Germany CPA Feb-24 31,300 120,000

Scheduled to open in 2025 78,253 229,958

Major redevelopments

Porte de Clignancourt Paris France UC 2025 568 5,003

Top Box Koln Poll NRW Germany UC 2025 1,487 4,851

New developments

Dusseldorf Neuss NRW Germany UC 2025 5,814 16,759

Wangen Stuttgart Germany UC 2025 7,049 17,056

Leinfelden Stuttgart Germany UC 2025 6,620 20,083

1 property Berlin Germany PS 2025 10,253 27,824

1 property (Top Box) Frankfurt Germany PS 2025 4,958 11,148

1 property (Top Box) NRW Germany PS 2025 4,068 9,882

1 property London UK PS 2025 7,365 21,570

1 property London UK PS 2025 6,374 20,927

SHURGARD ANNUAL REPORT 2023

1 property London UK PS 2025 6,558 21,634

1 property London UK PS 2025 7,424 30,641

1 property Randstad Netherlands PS 2025 5,352 11,537

1 property Randstad Netherlands CPA 2025 4,363 11,043

Scheduled to open in 2026 20,764 61,137

Major redevelopments

Porte de Clignancourt Paris France PA 2026 822 7,240

New developments

1 property Frankfurt Germany PS 2026 7,329 20,928

1 property Frankfurt Germany PS 2026 5,865 13,254

1 property Stuttgart Germany PS 2026 6,748 19,715

Total portfolio expansion 231,389 630,065

1 CPA = signed conditional purchase agreement and building permit process ongoing, PS = building permit submitted, UC = under construction and C =

completed.

2 Including development fees.

3 Redevelopment project part of the 2022 acquisition of Instorage. In 2023 the Company paid a €0.2 million supplement on the purchase price.

4 Direct access units across all markets.

5 The purchase price of €69.2 million includes land for major redevelopments to open in 2024 and land for two new developments to open in 2025.

6 Three stores in Berlin and three stores in Hamburg. Shurgard signed this transaction at the end of December 2023, conditional to customary receipt of

preemption waivers for each of the properties. The first waivers have been received, with the remaining waivers due by April at the latest.

In 2023, our total expansion pipeline continued to grow, with 17.2% (or 231,389 sqm) of our rentable sqm

realized, being developed, acquired, under construction and secured, compared to 11.7% (or 149,308 sqm) in

2022.

PROPERTY LAYOUT

Although the size of our properties varies, most consist of multi-storey 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, 2023, 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 2023

OPERATIONAL AND FINANCIAL REVIEW

GROUP RESULTS

(in € thousands, except where

indicated otherwise)

Q4 2023 Q4 2022 +/- CER FY 2023 FY 2022 +/- +/- CER

Real estate operating revenue 92,805 88,662 5.3% 357,923 335,290 6.8% 8.3%

Real estate operating expense (28,644) (27,639) 4.1% (120,470) (113,821) 5.8% 7.2%

Net income from real estate

operations

64,161 61,023 5.8% 237,453 221,469 7.2% 8.9%

General, administrative and other

expenses

(8,190) (6,731) 21.7% (25,961) (22,515) 15.3% 15.5%

of which depreciation and

amortization expense

(893)

(763)

17.0%

(3,377)

(2,866)

17.8%

18.1%

Acquisition benefit of business

combinations

5 775 -99.4% 5 775 -99.4% -99.4%

Royalty fee expense (916) (855) 7.9% (3,531) (3,289) 7.4% 8.9%

Other expenses (926) - N/A (926) - N/A N/A

Operating profit before property

related adjustments

54,134 54,212 0.5% 207,040 196,440 5.4% 7.2%

Valuation gain from investment

property and investment property

under construction and gain on

disposal

170,339 185,605 -7.9% 294,350 586,181 -49.8% -49.1%

Operating profit 224,473 239,817 -6.0% 501,390 782,621 -35.9% -35.0%

Finance cost, net (5,427) (4,589) 19.1% (20,270) (20,785) -2.5% -0.6%

Profit before tax 219,046 235,228 -6.5% 481,120 761,836 -36.8% -35.9%

Income tax income/(expense) (40,612) (58,170) -29.9% 53,283 (186,235) -128.6% -128.9%

Attributable profit for the period 178,434 177,058 1.3% 534,403 575,601 -7.2% -5.7%

Profit attributable to non-

controlling interests

(461) (486) -5.1% (1,090) (1,317) -17.2% -17.2%

Profit attributable to ordinary

equity holders of the parent

177,973 176,572 1.3% 533,313 574,284 -7.1% -5.6%

Earnings per share attributable to

ordinary equity holders of the

parent:

Basic, profit for the period (in €) 1.91 1.98 -3.0% 5.91 6.45 -8.4% -6.8%

Diluted, profit for the period (in €) 1.90 1.97 -2.1% 5.89 6.40 -8.0% -6.5%

Adjusted EPRA earnings per share

(basic - in €)

0.47 0.45 6.2% 1.76 1.61 9.0% 10.9%

Average number of shares

(basic - in millions)

93.4 89.1 4.8% 90.2 89.1 1.3% 1.3%

The following discussion of Group revenue and expenses down to underlying EBITDA is on a constant exchange

rate (CER) basis, where 2022 actual exchange rate (AER) numbers are recalculated using 2023 exchange rates.

SHURGARD ANNUAL REPORT 2023

REAL ESTATE OPERATING REVENUE

Our real estate operating revenue is comprised of property operating revenue, which includes rental revenue, fee

income from customer goods insurance and ancillary revenue, and other revenue.

(in € thousands) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Rental revenue 81,204 75,203 8.0% 312,550 285,123 9.6%

Fee income from customer goods

insurance

8,648 8,130 6.4% 33,683 31,653 6.4%

Ancillary revenue

2,897 2,782 4.1% 11,468 11,453 0.1%

Property operating revenue (CER) 92,749 86,115 7.7% 357,701 328,229 9.0%

Other revenue

56 2,052 -97.3% 222 2,241 -90.1%

Real estate operating revenue (CER) 92,805 88,167 5.3% 357,923 330,470 8.3%

Foreign exchange impact - 495 -100.0% - 4,820 -100.0%

Real estate operating revenue (AER) 92,805 88,662 4.7% 357,923 335,290 6.8%

1 Fee income from providing customer goods coverage in scope of IFRS 15.

2 Ancillary revenue consists of merchandise sales and other revenue from real estate operations.

3 Other revenue consists of management fee revenue and other, non-recurring income resulting from operations.

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

levels and higher rental rates.

In 2023, rental revenue increased by 9.6% to €312.6 million, from €285.1 million in 2022. 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 also rose strongly. Across our

expanded network, our closing rented sqm increased by 3.4% to 1,207 thousand sqm as of December 31, 2023

from 1,167 thousand sqm on December 31, 2022.

Fee income from customer goods insurance

Customers renting storage from Shurgard are required to have insurance coverage 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, 2023, fee income from customer goods insurance increased by 6.4% to €33.7 million (2022:

€31.7 million). This was driven by our non-same stores, an increase in the proportion of new customers in our

same store segment and an increase in the insurance premium.

Ancillary Revenue

Ancillary revenue is derived from the sale of products (cardboard boxes, locks and tape) in our properties. It also

includes other revenue from real estate operations. Ancillary revenue remained stable at €11.5 million in 2022

and 2023.

SHURGARD ANNUAL REPORT 2023

REAL ESTATE OPERATING EXPENSE

(in € thousands) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Payroll expense 10,810 10,611 1.9% 42,138 41,646 1.2%

Real estate and other taxes 2,745 2,121 29.4% 19,313 16,660 15.9%

Repairs and maintenance 3,325 3,025 9.9% 13,280 10,794 23.0%

Marketing expense 2,562 2,409 6.4% 9,887 9,052 9.2%

Utility expense 1,017 882 15.3% 3,939 3,521 11.9%

Doubtful debt expense 1,362 1,455 -6.4% 5,465 5,027 8.7%

Cost of insurance and merchandise sales

882 1,323 -33.3% 4,556 5,229 -12.9%

Other operating expenses

5,941 5,685 4.5% 21,892 20,481 6.9%

Real estate operating expense (CER) 28,644 27,511 4.1% 120,470 112,410 7.2%

Foreign exchange - 128 -100.0% - 1,411 -100.0%

Real estate operating expense (AER) 28,644 27,639 3.6% 120,470 113,821 5.8%

1 For the year ended December 31, 2023, the aggregate of cost of insurance and merchandise sales and other operating expense included €2.8 million captive

re-insurance revenue (same amount for the year ended December 31, 2022) and €2.0 million captive re-insurance service expense in scope of IFRS 17

(€2.2 million for the year ended December 31, 2022).

2 Other operating expenses mainly include travel expenses, legal and consultancy fees, insurance expenses, non-deductible VAT, information system expenses

and property lease expenses.

During 2023, our real estate operating expenses went up by 7.2% at CER which is a slower pace than our revenue

growth. This can mainly be attributed to efficient cost management, despite some increases for certain types of

costs. The repairs and maintenance expense increased by €2.5 million following higher maintenance related

costs for enhancing the security and safety of properties, coupled with elevated insurance expenses. In addition,

and in line with our expectations, real estate and other taxes have gone up by €2.6 million, mainly driven by

France and the UK. Other operating expenses increased by €1.4 million following higher software and other

license costs related to various digitalization projects, as well as the addition of new stores. Finally, marketing

expenses went up by €0.8 million, reflecting the higher costs of online advertising.

NET INCOME FROM REAL ESTATE OPERATIONS

Net income from real estate operations reflects the real estate operating revenue minus the real estate operating

expenses incurred in running our operations. Net income from real estate operations rose by 8.9%, to

€237.5 million in 2023, from €221.5 million in 2022. The 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.

SHURGARD ANNUAL REPORT 2023

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 2023 Q4 2022 +/-

FY 2023 FY 2022 +/-

Same stores 240 240 - 240 240 -

Non-same stores 35 26 9 35 26 9

All Store 275 266 9 275 266 9

Same store property operating revenue

in € thousands

84,322 80,910 4.2% 329,595 311,825 5.7%

Non-same store property operating

revenue in € thousands

8,427 5,205 61.9% 28,106 16,404 71.3%

All store property operating revenue

in € thousands

92,749 86,115 7.7% 357,701 328,229 9.0%

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 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Property KPIs at period end

Number of properties 240 240 - 240 240 -

Closing rentable sqm

1,201 1,198 0.2% 1,201 1,198 0.2%

Closing rented sqm

1,074 1,076 -0.2% 1,074 1,076 -0.2%

Closing occupancy rate

89.4% 89.8% -0.4pp 89.4% 89.8% -0.4pp

Property KPIs for the period

Average rented sqm

1,084 1,084 0.0% 1,085 1,083 0.1%

Average occupancy rate

90.3% 90.4% -0.2pp 90.4% 90.4% 0.0pp

Average in-place rent (in € per sqm)

273.8 261.7 4.6% 266.5 250.8 6.3%

Average revPAM (in € per sqm)

280.9 270.0 4.0% 274.7 260.3 5.5%

Financial KPIs for the period

Property operating revenue

in € thousands

84,322 80,910 4.2% 329,595 311,825 5.7%

Income from property (NOI)

in € thousands

59,360 56,085 5.8% 222,829 208,129 7.1%

NOI margin

70.4% 69.3% 1.1pp 67.6% 66.7% 0.9pp

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, fee income from customer

goods insurance 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 2023

The average occupancy rates for our same store network remained stable at 90.4%. The average in-place rent

per sqm for our same store facilities grew by 6.3% to €266.5 in 2023 from €250.8 in 2022.

Property operating revenue generated by our same store facilities increased by €17.8 million or 5.7% to

€329.6 million in 2023, driven by improvements in average in-place rental rates (up by 6.3%).

Income from property (NOI) for our same stores rose from €208.1 million in 2022 to €222.8 million in 2023,

reflecting our ability to control operating expenses and leverage strong sales. NOI margin for our same stores

increased to 67.6% in 2023 from 66.7% in the prior year period.

Non-same stores

Non-same stores are any properties that are not classified as same store in 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 €16.4 million in 2022 to €28.1 million in 2023. This

increase was due to the continued “ramp-up” at our new properties and the net addition of nine non-same

stores.

SHURGARD ANNUAL REPORT 2023

OPERATIONS BY COUNTRY

All store

Property operating revenue

(in € thousands at CER)

Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

France 21,891 20,828 5.1% 85,378 79,596 7.3%

The Netherlands 20,125 18,129 11.0% 77,402 68,718 12.6%

The United Kingdom 18,524 17,219 7.6% 71,169 64,659 10.1%

Sweden 11,497 11,461 0.3% 46,111 44,878 2.7%

Germany 9,740 8,059 20.9% 34,963 29,981 16.6%

Belgium 6,935 6,534 6.1% 26,890 25,033 7.4%

Denmark 4,037 3,885 3.9% 15,788 15,365 2.8%

Total 92,749 86,115 7.7% 357,701 328,229 9.0%

Same store

Property operating revenue

(in € thousands at CER)

Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

France 19,864 19,463 2.1% 78,241 75,327 3.9%

The Netherlands 18,404 17,188 7.1% 71,362 65,820 8.4%

The United Kingdom 16,663 15,693 6.2% 64,332 60,038 7.2%

Sweden 11,090 11,354 -2.3% 44,642 44,771 -0.3%

Germany 7,329 6,793 7.9% 28,340 25,471 11.3%

Belgium 6,935 6,534 6.1% 26,890 25,033 7.4%

Denmark 4,037 3,885 3.9% 15,788 15,365 2.8%

Total 84,322 80,910 4.2% 329,595 311,825 5.7%

Same store

Average occupancy rate

Q4 2023 Q4 2022 +/-

FY 2023 FY 2022 +/-

France 88.9% 89.4% -0.5pp 89.3% 89.4% -0.1pp

The Netherlands 92.0% 91.2% 0.7pp 91.7% 90.7% 0.9pp

The United Kingdom 86.8% 88.1% -1.3pp 87.5% 88.3% -0.8pp

Sweden 90.7% 91.1% -0.4pp 91.1% 91.7% -0.6pp

Germany 90.7% 91.4% -0.6pp 90.9% 91.1% -0.1pp

Belgium 92.6% 92.2% 0.4pp 92.4% 91.7% 0.6pp

Denmark 92.2% 91.6% 0.6pp 91.7% 93.3% -1.6pp

Total 90.3% 90.4% -0.2pp 90.4% 90.4% 0.0pp

Same store

Average in-place rent

(at CER)

Q4 2023 Q4 2022 +/-

FY 2023 FY 2022 +/-

France 277.2 270.4 2.5% 271.5 260.1 4.4%

The Netherlands 238.7 224.3 6.4% 231.7 214.6 8.0%

The United Kingdom 381.7 354.8 7.6% 366.1 335.8 9.0%

Sweden 239.1 243.7 -1.9% 239.3 237.5 0.7%

Germany 294.1 270.1 8.9% 282.7 254.7 11.0%

Belgium 226.7 209.7 8.1% 217.3 201.3 7.9%

Denmark 293.9 284.1 3.4% 288.5 275.0 4.9%

Total 273.8 261.7 4.6% 266.5 250.8 6.3%

SHURGARD ANNUAL REPORT 2023

Same store

NOI margin

(at CER)

Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

France 70.5% 68.5% 1.9pp 63.9% 63.1% 0.8pp

The Netherlands 73.2% 73.2% 0.0pp 71.3% 70.1% 1.1pp

The United Kingdom 63.7% 64.3% -0.6pp 62.8% 63.2% -0.4pp

Sweden 72.3% 71.7% 0.6pp 71.6% 72.2% -0.6pp

Germany 72.8% 70.3% 2.5pp 70.8% 67.4% 3.4pp

Belgium 72.5% 68.9% 3.6pp 67.8% 65.3% 2.5pp

Denmark 71.6% 68.2% 3.4pp 71.6% 69.1% 2.5pp

Total 70.4% 69.3% 1.1pp 67.6% 66.7% 0.9pp

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 same prior year period, our all store property operating revenue grew by 9.0% in 2023,

delivering revenue of €357.7 million, and confirming Shurgard’s resilience in challenging market conditions. All

our markets contributed to that performance, with three countries (The Netherlands, the UK and Germany)

delivering double-digit growth. This performance was achieved through our expansion, with nine new stores

offering 3.5% additional rentable sqm versus 2022, but also through the strong performance of our same store

segment.

Same store revenue in 2023 grew by 5.7% compared to the prior year, mainly fueled by an average in-place rent

increase of 6.3%, and stable average same store occupancy in the period. The Netherlands, the United Kingdom,

Germany, Belgium and France have performed robustly. As foreseen, the Nordics (Sweden and Denmark) are

impacted by difficult macro conditions and a uniquely competitive environment in Sweden.

• In France, our largest market, 2023 same store revenue grew by 3.9% compared to the same prior

year period. This is attributed to a 4.4% rise in average in-place rent, with stable occupancy at

89.3%;

• The Netherlands continues to perform very well in its same store segment. Revenue increased by

8.4% versus the prior year. Rental rates grew by 8.0% compared to 2022, and average occupancy

reached 91.7% (+0.9pp);

• The United Kingdom (London) has demonstrated its resilience with same store revenue growth of

7.2%, fully driven by an increase in rental rates (+9.0%), while average occupancy decreased

slightly to 87.5% (-0.8pp);

• Sweden’s same store revenue for 2023 was 0.3% lower than the prior year with a decelerating

trend in Q4 (-2.3% versus prior year

Q4). In-place rent increased by 0.7%, while occupancy

decreased by 0.6pp, although it is still at a very high level (91.1%);

• In Germany, we saw the most impressive performance in all our markets, driven by a double-digit

increase in rental rates of 11.0% compared to 2022. Despite a 0.1pp decrease in occupancy (to

90.9%), we achieved 11.3% revenue growth versus the prior year;

• Belgium’s revenue grew 7.4% versus the prior year, supported by a 7.9% increase in rental rates,

coupled with all time high occupancy levels (+0.6pp versus the prior year) at 92.4%;

SHURGARD ANNUAL REPORT 2023

• In Denmark (Copenhagen), rental rates rose by 4.9%. This growth was partly offset by a 1.6pp

occupancy decline (although occupancy still remained high at 91.7%) versus the prior year,

resulting in revenue growth of 2.8%;

• Shurgard’s overall same store revenue performance was negatively impacted by a weaker SEK

(-7% or -€3.6 million) and GBP (-2% or -€1.2 million) against the EUR.

GENERAL, ADMINISTRATIVE AND OTHER EXPENSES

(in € thousands, at CER) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Payroll expense 3,340 2,970 12.5% 12,211 11,976 2.0%

Share-based compensation expense 1,054 922 14.3% 4,183 3,904 7.1%

Capitalization of internal time spent on

development

(1,141) (1,063) 7.3% (4,233) (3,807) 11.2%

Depreciation and amortization expense 893 763 17.0% 3,377 2,859 18.1%

Other general and administrative

expenses

4,044 3,135 29.0% 10,423 7,552 38.0%

Total 8,190 6,727 21.7% 25,961 22,484 15.5%

1 Other general and administrative expenses mainly include legal, consultancy and audit fees and non-deductible VAT.

General, administrative and other expenses increased by 15.5%, from €22.5 million in 2022 to €26.0 million in

2023. This mainly came from other general and administrative expenses which increased by €2.8 million. This

increase reflects higher advisory fees following recent acquisitions and developments, and an increase in lawyers’

fees in light of the conversion to a UK REIT and other projects. Our payroll expenses have gone up by €0.2 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 €0.4 million, reflecting our greater development pipeline. Depreciation and

amortization also went up by €0.5 million following our continued investment in IT improvement and

digitalization projects.

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 2023, we incurred royalty fees

of €3.5 million.

OPERATING PROFIT BEFORE PROPERTY RELATED ADJUSTMENTS

Operating profit before property related adjustments increased by 5.4%, from €196.4 million in 2022 to €207.0

million in 2023, reflecting the operational strength of the core business (before non-cash adjustments and

exceptional items).

UNDERLYING EBITDA

(in € thousands) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Operating profit before property related

adjustments

54,134 54,212 -0.1% 207,040 196,440 5.4%

Depreciation and amortization expense 893 763 17.0% 3,377 2,866 17.8%

Other

1,141 362 214.9% 2,552 459 455.7%

Underlying EBITDA (AER)

56,168

55,337

1.5%

212,969

199,765

6.6%

Foreign exchange - (358) -100.0% - (3,338) -100.0%

Underlying EBITDA (CER)

56,168

54,979

2.2%

212,969

196,427

8.4%

1 Other includes (i) acquisition and dead deals costs (€1.6 million), (ii) cease-use lease expense (€0.0 million) and (iii) ERP implementation fees and costs of

capital raise (€0.9 million).

SHURGARD ANNUAL REPORT 2023

At constant exchange rates, underlying EBITDA rose by 8.4% in 2023, from €196.4 million the previous year to

€213.0 million this year, mainly supported by an increase in property operating revenue of 9.0%.

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 €294.4 million for the year ended December 31, 2023, which

compares to a valuation gain of €586.2 million for last year. The valuation assumptions made by external valuers

Cushman & Wakefield include predicted occupancy levels, rental rates, expenses, and other factors that,

depending on each assumption, can cause substantial fluctuations in valuation gains each year. Exit cap rate

remained in line with the previous valuation (from 5.19% in December 2022 to 5.22% on December 31, 2023)

The valuation gain of €294.4 million, combined with capital expenditure, and exchange rate fluctuations, resulted

in an increase in total investment property value of €512.0 million to €5,035.8 million (+11.3%), compared to

December 31, 2022.

OPERATING PROFIT

Operating profit decreased by 35.9% from €782.6 million in 2022 to €501.4 million in 2023, mostly due to

€291.8 million lower gains on valuation from investment property.

FINANCE COSTS, NET

(in € thousands) FY 2023 FY 2022 +/-

Interest expense 23,247 21,320 9.0%

Interest income (3,120) (622) N/A

Foreign exchange (gain)/loss 143 88 63.3%

Finance cost, net 20,270 20,784 -2.5%

Net finance costs decreased by 2.5% (or €0.5 million) to €20.3 million in 2023 from €20.8 million in 2022. This

is mainly due to interest income on short term deposits and higher capitalized interests (increased development

pipeline).

INCOME TAX EXPENSE

(in € thousands) FY 2023 FY 2022 +/-

Current tax expense 29,419 30,311 -2.9%

Deferred tax (income) / expense (82,702) 155,924 -153.0%

Income tax (income) / expense (53,283) 186,235 -128.6%

Adjusted EPRA earnings effective tax rate

15.7% 17.4% -1.8pp

1 Adjusted EPRA earnings effective tax rate is current tax expenses divided by adjusted EPRA earnings before tax.

Current tax expense decreased by €0.9 million from €30.3 million in 2022 to €29.4 million in 2023, supported by

our UK REIT status. As a result of the Group becoming a REIT in UK, we reversed €161.2 million deferred tax

liabilities for our UK entities during the first half of 2023. The adjusted EPRA earnings effective tax rate for 2023

ended at 15.7%, compared to 17.4% in 2022.

SHURGARD ANNUAL REPORT 2023

ATTRIBUTABLE PROFIT AND ATTRIBUTABLE PROFIT PER SHARE

For 2023, €533.3 million (2022: €574.3 million) profit was attributable to the shareholders of Shurgard

Self Storage Ltd, and €1.1 million (2022: €1.3 million) was attributable to non-controlling interests. Based on the

average number of shares (2023: 90.2 million), this translates to basic earnings of €5.91 per share.

EPRA KPIS

(in € thousands, except where indicated) FY 2023 FY 2022 +/-

EPRA Earnings 156,186 144,225 8.3%

Adjusted EPRA Earnings 158,401 143,556 10.3%

Capital Expenditure 181,154 188,887 -4.1%

EPRA Vacancy Rate 13.2% 13.1% 0.2pp

EPRA LFL Rental Growth

6.4% 9.5% -3.1pp

EPRA Cost ratio (including direct vacancy costs) 46.5% 46.6% -0.1pp

EPRA Cost ratio (excluding direct vacancy costs) 46.5% 46.6% -0.1pp

EPRA Net Initial Yield (NIY) 5.4% 5.6% -0.2pp

EPRA Net Initial Yield 'topped-up' NIY 5.4% 5.6% -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.

2 2022 restated to include real estate tax and cost of management rather than only leasehold expense in property outgoings.

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 practice guidelines dated August 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).

EPRA EARNINGS

(in € thousands, except for EPRA EPS) FY 2023 FY 2022 +/-

Profit attributable to ordinary equity holders of the

parent

533,313 574,284 -7.1%

Adjustments:

Gain on revaluation of investment properties

(294,350) (586,181) -49.8%

Acquisition costs of business combinations and other (5) (775) -99.2%

Current and deferred tax in respect of EPRA adjustments (83,484) 155,878 -153.6%

Non-controlling interests in respect of the above 712 1,019 -30.1%

EPRA earnings 156,186 144,225 8.3%

EPRA earnings per share (basic - in €) 1.73 1.62 7.0%

EPRA earnings per share (diluted - in €) 1.73 1.61 7.3%

1 Including investment property under construction and right-of-use investment property assets.

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.

SHURGARD ANNUAL REPORT 2023

ADJUSTED EPRA EARNINGS

(in € thousands, except for Adjusted EPRA EPS) FY 2023 FY 2022 +/-

EPRA earnings 156,186 144,225 8.3%

Company specific adjustments:

Non-recurring expenses/(income)

1,062 (1,269) -183.8%

Tax adjustments

1,153 600 92.1%

Adjusted EPRA earnings 158,401 143,556 10.3%

Adjusted EPRA earnings per share (basic - in €) 1.76 1.61 9.0%

Adjusted EPRA earnings per share (diluted - in €) 1.75 1.60 9.3%

1 Non-recurring expenses/(income) consist of fees related to capital increase, new ERP implementation, conversion to a UK REIT and exceptional reimbursement related to

lease termination in Germany in 2022.

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 2023, adjusted EPRA earnings were €158.4 million, 10.3% higher than the €143.6 million

in 2022.

RECONCILIATION OF UNDERLYING EBITDA TO ADJUSTED EPRA EARNINGS

(in € thousands, at CER) FY 2023 FY 2022 +/-

Underlying EBITDA 212,969 199,765 6.6%

Net attributable profit adjustments:

Cease-use lease (expense)/benefit (2) (185) -98.9%

Other expenses (926) - N/A

Depreciation and amortization expense (3,377) (2,866) 17.8%

Finance costs, net (20,270) (20,785) -2.5%

Current tax expense (29,419) (30,311) -2.9%

Non-controlling interests, net of EPRA adjustments (2,008) (1,347) 49.0%

Company specific EPRA adjustments:

Non-recurring expenses/(income)

1,062 (1,269) -183.8%

Tax adjustments

371 554 -33.0%

Adjusted EPRA earnings 158,401 143,556 10.3%

1. Non-recurring expenses/(income) consist of fees related to capital increase, new ERP implementation, conversion to a UK REIT and exceptional reimbursement related to

lease termination in Germany.

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 increased by 10.3% mainly due to a 6.6% increase in underlying EBITDA and further

strengthened by the exclusion of the exceptional reimbursement related to lease termination in Germany

(€2.0 million).

SHURGARD ANNUAL REPORT 2023

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 2023 FY 2022 +/-

Net Asset Value (NAV) 3,614,217 2,860,993 26.3%

EPRA Net Restatement Value (NRV) 4,708,381 3,989,647 18.0%

EPRA Net Tangible Assets (NTA) 4,307,807 3,638,892 18.4%

EPRA Net Disposal Value (NDV) 3,667,931 2,974,095 23.3%

The basis of calculation for each of the measures set out above are illustrated in the Appendix of the Annual

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. We expect to continue to

fund these requirements with operating cash flow, our existing cash position and future borrowings under our

current bank credit facility or other borrowings or equity issuances.

Our loan-to-value ratio on December 31, 2023, was 13.0%, (18.0% as of December 31, 2022). The decrease in

the ratio was due to a decrease in our net debt combined with an increase in market value. We are targeting a

loan-to-value ratio of 25%, with a short-to-mid-term maximum of 35%.

We maintain (local currency) cash and cash equivalent balances at banking institutions in most countries we

operate. 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 2023 FY 2022 +/-

Cash flows from operating activities 187,361 186,534 0.4%

Cash flows from investing activities (180,371) (183,383) -1.6%

Cash flows from financing activities 162,377 (132,002) -223.0%

Net increase (decrease) in cash and cash equivalents 169,367 (128,851) -231.4%

Effect of exchange rate fluctuation 1,406 (2,974) -147.3%

Cash and cash equivalents as of January 1 87,345 219,170 -60.1%

Cash and cash equivalents as of December 31 258,118 87,345 195.5%

CASH FLOWS FROM OPERATING ACTIVITIES

Operating cash inflow improved by 0.4% from €186.5 million in 2022 to €187.4 million in 2023. This was mainly

due to an €11.0 million increase in cash flows from operations mostly offset by €6.6 million of unfavorable

movements in working capital, and €3.5 million increased income tax payments.

The movement in working capital consists of €4.9 million of decreased movements in accrued expenses, VAT

payable and accounts payable and €1.2 million decreased movement in trade and other receivables and €0.5

million decreased movements in deferred revenue.

SHURGARD ANNUAL REPORT 2023

CASH FLOWS FROM INVESTING ACTIVITIES

Our cash outflow from investing activities decreased by €3.0 million, from €183.4 million in the year ended

December 31, 2022, to €180.4 million in the year ended December 31, 2023. This was primarily due to €8.4 million

reduced spending on acquisitions, €2.5 million increased income from our cash deposits and €0.1 million reduced

spending on property, plant and equipment, partially offset by €6.7 million decreased proceeds from the disposal

of investment property and lease termination and €0.7 million increased spending on intangible assets.

Cash outflows in relation to capital expenditure on investment property under construction and completed

investment property increased from €111.3 million in 2022 to €111.9 million in 2023.

These cash flows fluctuate over years, as construction expenditures depend on the stage of the various

development projects at that time. In 2023, we opened five new properties, and acquired five properties from

self-storage competitors (for a total of 64,600 sqm). During last year, we opened seven properties and acquired

seven more (for a total of 65,400 sqm). We refer to our project pipeline on page 19.

CASH FLOWS FROM FINANCING ACTIVITIES

Cash inflow during the year ended December 31, 2023, was €162.4 million, representing a rise of €294.4 million

versus the €132.0 million net cash outflow during the last year.

The increase of net cash inflow was mainly the result of our €300.0 million equity issuance, €2.6 million reduced

dividend payments and €0.3 million decreased lease obligation payments. These positive fluctuations were

partially offset by €5.3 million increased equity issuance and financing related costs, €1.6 million increased

interest payments and the absence in 2023 of €1.6 million proceeds of the sale of treasury shares that we had

in 2022.

EFFECT FROM EXCHANGE RATE FLUCTUATIONS

During 2023, we had a €1.4 million positive effect of exchange rate fluctuations on our cash flow movements,

which compares to a €3.0 million unfavorable effect during the prior year period.

FINANCIAL POSITION

TOTAL ASSETS

During 2023, the Company’s total assets increased by 14.9% from €4,659.8 million on December 31, 2022, to

€5,353.9 million on December 31, 2023, mainly due to the €512.0 million increase in investment property and

investment property under construction (“IPUC”), and an increase in cash of €170.8 million.

As of December 31, 2023, approximately 94.4% of the Company’s total assets consisted of non-current assets.

Investment property (including right-of-use investment property) and IPUC represent 94.1% of total assets.

Investment property

Investment property (including IPUC but excluding IP ROU assets recognized under IFRS 16) increased by 11.3%

(or €500.8 million) in the year ended December 31, 2023, to €4,929.4 million. The main reasons are incremental

expenditure of €113.8 million, predominantly for developments and redevelopments, and acquisitions of €67.3

million. In addition, the Company recognized €297.9 million of favorable fair value revaluation income and €21.8

million from favorable exchange rate fluctuations on its investment property and investment property under

construction.

Cash and cash equivalents

The Company had cash and cash equivalents of €258.1 million as of December 31, 2023, compared to

€87.3 million cash and cash equivalents as of December 31, 2022, an increase of €170.8 million.

SHURGARD ANNUAL REPORT 2023

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 €754.3 million from €2,867.8 million on December 31, 2022, to

€3,622.1 million on December 31, 2023, mainly due to €534.4 million net profit realized during the period, €22.3

million revaluation gain on consolidation of our Swedish, Danish and British operations because of favorable

currency movements, €4.2 million increase in share-based compensation reserves and €297.7 million net

proceeds from the issuance of equity. These increases were partially offset by €104.3 million dividend distribution

in 2023.

As of December 31, 2023, the equity ratio was 67.7% (December 31, 2022: 61.5%).

(in € thousands) FY 2023 FY 2022

Total equity 3,622,122 2,867,808

Total equity and liabilities 5,353,877 4,659,831

Equity ratio 67.7% 61.5%

Shurgard has issued senior guaranteed notes in the years 2014, 2015 and 2021 with a total nominal amount of

€800 million and remaining 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 maturing in October 2025 and entered in April

2023 into a €450 million term loan facility agreement with BNP Paribas Fortis Bank NV/SA, Belfius Bank SA/NV,

ABN Amro Bank NV, KBC Bank NV/SA and Banque International à Luxembourg SA (with BNP Paribas Fortis bank

as agent) with maturity of three years, which can be extended at the option of the Company by an additional

period of up to two years. During October 2023, the company drew €160 million from the term loan facility and

reduced the Company's remaining borrowing capacity under the term loan facility to €290 million. The €160

million was repaid during December 2023. See Note 28 to our consolidated financial statements.

As of December 31, 2023, we had no outstanding borrowings under these facilities, and the commitment fee on

the undrawn amounts was equal to 35% of the applicable margins, or 0.16% and 0.42%, respectively.

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.

100

130

100

110

300

2024 2025 2026 2027 2030 2031

Debt maturity profile (€ million)

SHURGARD ANNUAL REPORT 2023

We have proposed a total dividend of €1.17 per share for the year 2023. With respect to the first half of 2023, our

Board of Directors approved an interim dividend of €51.7 million or €0.58 per share paid on October 5, 2023. The

Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2023 of €0.59

per share (€57.4 million, taking into account the number of outstanding shares as of December 31, 2023).

The second and final dividend on 2023 results will be payable on or around May 29, 2024 to Shareholders on the

record at close of business on May 28, 2024.

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, which amongst other initiatives includes our e-rental service, our

workforce has decreased in 2023 compared to the prior year. The following table shows the number of full-time

equivalent employees by category of activity as of December 31, 2023 and 2022, respectively:

FY 2023

FY 2022

+/-

Store personnel 538

547

-9

Operational management 50

Support functions 121

123

-2

Total 709

716

-7

RISKS

Shurgard is exposed to several risks that are described in detail in the "Principal Risks and Uncertainties” section

of the 2023 Annual Report.

EVENTS AFTER THE REPORTING PERIOD

Please refer to Note 39 in the Notes to the consolidated financial statements of this report.

SHURGARD ANNUAL REPORT 2023

SUSTAINABILITY REPORT 2023

SHURGARD ANNUAL REPORT 2023

1. SHURGARD’S ESG HIGHLIGHTS

1.1 ENVIRONMENTAL HIGHLIGHTS

1.2 SOCIAL HIGHLIGHTS

1.3 GOVERNANCE HIGHLIGHTS

SHURGARD ANNUAL REPORT 2023

1.4 EXTERNAL AGENCIES AND BENCHMARKS

Shurgard participates in several surveys and initiatives led by external agencies and benchmarks and is proud to

be recognized as an ESG leader in its sector. Through these ratings, the organizations confirm the quality of our

initiatives and the completeness and transparency of our reporting to our stakeholders.

1 Learn more about MSCI ESG ratings here.

and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not

constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular

purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.

SHURGARD ANNUAL REPORT 2023

1.5 SUSTAINABLE DEVELOPMENT GOALS

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 contributing to the SDGs as recommended by the United Nations.

Therefore, we have identified the following most significant SDGs for our company:

The SDG framework brings together society, governments and businesses 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

CLIMATE ACTION

We understand our role in mitigating and adapting to the impacts of climate change, and

our net zero carbon 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.

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 and 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.

SHURGARD ANNUAL REPORT 2023

1.6 MESSAGE FROM OUR CEO

GRI 2-14 / 2-22

Message from Marc Oursin

Chief Executive Officer

Welcome to our annual sustainability report

2023.

ESG considerations are of great importance to our s

takeholders and our organization. In the pursuit of sustainability

and responsible corporate citizenship, Shurgard

continues to be on a transformative journey.

Shurgard's commitment to sustainability is evident in our tangible achievements. We

have

reduced energy

consumption and carbon emissions significantly, particularly with green

-energy procurement. Heat pumps are now in

of our 108 gas-heated stores, and we have adopted LED lighting, a Building Management Systems (BMS), and smart

water meters for centralized tracking. These accomplishments demonstrate our dedication to addressing climate

change.

The acceleration of our ESG

program has been recognized by the awards and ratings we have received from reputable

ESG frameworks. We improved our score in S&P Global’s Corporate Sustainability Assessment by a further 4 points,

placing us in the world’s top 9% of scores achieved by real estate companies this year. We were awarded an

outstanding 5

-star rating (the top banding) and a score of 91 out of 100 in the GRESB 2023 results. We have reaffirmed

the MSCI ESG Rating of AA, only one grade away from their h

ighest level. Achieving recognition through these ESG

ratings inspires Shurgard to reach even greater heights in sustainability. It sends a powerful message to our employees,

partners, and stakeholders that their collective efforts are

making a difference.

As Chief Executive Officer, I, alongside my colleagues, work to develop and implement our ESG strategy. To do that, we

set up an efficient governance structure which

consists of the ESG Committee at Board level and a formal, cross-

departmental ESG Management Group entrusted to implement the ESG goals of the

company. This level of ESG

oversight

reflects the importance of sustainability across our organization. We also demonstrate our commitment to

uphold

ing good governance practices by continually striving to improve our corporate governance. In 2023, we reduced

the board size from 11 to 9 directors and

increased diversity by nominating Tom Boyle and Lorna Brown to the Board.

To monitor our ESG progress, we prioritize transparent reporting. This 2023 report demonstrates our commitment to

accountability. It features enhanced transparency with a double materiality matrix, risk analysis, and our refined

net

ero carbon strategy. These steps align us with CSRD compliance, preparing us for expanded reporting and assurance

requirements.

Our employees have been instrumental in driving

Shurgard’s sustainability initiatives. Our dedication to the workforce

has been recognized through our accreditation by Investors in People, where we have earned a prestigious Silver medal.

This recognition stems from a thorough assessment of our employees' needs an

d valuable feedback. Furthermore, our

rating of 4.

7 on Glassdoor, a testament to our employees' experiences, supports our commitment to aligning with their

needs and aspirations.

Shurgard’s

commitment to sustainability extends beyond our corporate walls. Through our community outreach

programs, we have positively impacted the lives of communities where we operate. This year, we have continued our

charity programs and provided support to the

most vulnerable groups in all of our seven countries.

While our sustainability progress has been remarkable, we recognize the challenges

of the rapidly changing world. The

main challenge is to maintain our sector leadership while upholding our high performance.

We also face the challenge

navigating the complexities of implementing solar solutions across seven countries. However, we view these

challenges not as obstacles but as opportunities for innovation and growth, moving us further towards

achieving our

sustainability goals.

Today, the ESG trajectory of the

Company is clear. We have an effective formula designed to achieve our objectives by

2030 and 2040 through the combination of talented people,

a resilient financial framework, and a supportive Board.

SHURGARD ANNUAL REPORT 2023

2. SHURGARD SELF STORAGE

Shurgard is the largest owner and operator of self-storage properties (“stores”) in Europe.

Our network of 276 stores (including one store under management contract) comprises approximately 1.4 million

rentable square meters and serves c. 190,000 customers in France, the Netherlands, the United Kingdom (UK),

Sweden, Germany, Belgium, and Denmark.

At the date of report compilation, we employ 715 personnel (57.6% men, 42.4% women), with a range of about 40

nationalities (top three: 24.6% French, 17.4% Dutch and 13.5% Belgian).

GRI 2-6 / 2-7

2.1 HOW WE OPERATE

Shurgard commenced operations in 1995 and is one of the pioneers of the self-storage concept in Europe.

generate revenue through the lease of storage units and related activities.

Our real estate operating revenue and income from property have increased steadily in recent years, as we

increased occupancy and rental rates, while growing our footprint through redevelopments, new developments and

acquisitions.

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.

2.2 OUR DEVELOPMENT STRATEGY

Shurgard has an established track record of redeveloping, developing, and acquiring stores.

Between December 31, 2014 and December 31, 2023, we developed 32 new stores, completed redevelopment

projects at 33 stores, and acquired 64 stores from competitors, a total of 129 stores.

Our investment criteria are focused on acquiring and developing high-quality properties that are easily accessible

by our customers in markets we believe have strong growth potential.

SHURGARD ANNUAL REPORT 2023

3. RISK ASSESSEMENT AND DOUBLE MATERIALITY

We aim to address the ESG topics that materially affect Shurgard and our stakeholders. We seek to identify both

the risks and opportunities that will impact our ability to operate successfully and create long-term value, as well

as the topics that matter for our stakeholders, to drive continual positive and transformational change.

To achieve this, we first identified and engaged with our stakeholders. We drew up a list of potentially relevant

sustainability topics and defined the related impacts, risks, and opportunities. We assessed the importance of each

topic, through impact and financial materiality assessments, as prescribed by the European Financial Reporting

Advisory Group (EFRAG), and this informed our double materiality matrix.

3.1 OUR STAKEHOLDERS

We define stakeholders as individuals, groups or organizations that may benefit or be affected by our business

activities. Our key stakeholders have been identified and prioritized according to the level of sustainability impact

we believe our operations might have on their activities, and, in turn, their potential sustainability impact on our

activities.

We place great importance on building lasting relationships with our stakeholders. Our success depends on

the quality of the interactions we build inside and outside Shurgard, and this requires an understanding of

their expectations.

SHURGARD ANNUAL REPORT 2023

We are committed to:

• Maintaining a strong corporate governance structure to manage risks and take advantage of

opportunities;

• Providing first rate services to advance the environment and society;

• Engaging with stakeholders in an ethical and socially responsible manner;

• Requiring all our suppliers to comply with the Suppliers’ Code of Conduct by including a clause in all

our contracts;

• Pursuing efforts to reduce carbon emissions and protect biodiversity;

• Adhering to no deforestation considerations as directed by local regulations and incorporating this

into the design process of our buildings;

• 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 to continuously improve our performance.

GRI 2-29

3.2 RISKS AND OPPORTUNITIES

Stakeholders are increasingly concerned by how companies operate, and the impact of their activities on society.

Such trends give rise to specific risks and opportunities. Understanding them and their potential impact on the

commitments we make is at the heart of 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.

The risks and opportunities highlighted below are detailed and scored according to the importance of the topics

for our stakeholders (impact materiality), or for our business and operations (financial materiality). They have been

considered as part of our double materiality exercise, detailed in Chapter “3.3 Double materiality matrix”. For more

details on all financial risks and uncertainties, please refer to the “Principal Risks and Uncertainties” chapter of our

2023 Annual Report.

SHURGARD ANNUAL REPORT 2023

3.3 DOUBLE MATERIALITY MATRIX

Our initial double materiality assessment, covering both financial as well as environmental and social materiality,

was conducted in 2023 to ensure that we are addressing the most important sustainability issues. This exercise

incorporates both an internal assessment and the feedback received from our various stakeholders (customer

feedback, supplier surveys, investor days, employees’ feedback, etc.) on various topics. The outcome is reflected in

the objectives defined in our updated Environmental Management System (EMS). Every year, the ESG Management

Group identifies and assesses the relative importance of specific ESG and sustainability topics for Shurgard,

considering the feedback received from our stakeholders. 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 the below matrix, i.e. how sustainability topics

interrelate with our business strategy and developing sustainability materiality processes that link with the wider

risk management process.

GRI 3-1 / 3-2 / 3-3

SHURGARD ANNUAL REPORT 2023

3.4 OUR MATERIAL TOPICS

The table below summarizes the topics that have been assessed to be material and provides a reference where the

topic will be discussed further in this report:

Material topics Where to read more

GHG emissions

4.1 – Transition to low carbon-economy

Climate change adaptation & resilience 4.2 – Resilience of properties to climate risks

Pollution

4.1 – Transition to low carbon-economy

4.4 – Responsible waste management

Resources use & circular economy 4.4 – Responsible waste management

Employee diversity, equality & inclusion

5.1 – Safe and inclusive workplace

Employee health and safety 5.1 – Safe and inclusive workplace

Employee development, attraction & retention

5.2 – Invest in the development of our people

5.3 – Share and live the Shurgard Culture

Customers’ welfare and safety

6.1 – Best-in class customer service

6.2 – Customers’ privacy & safety

Customers’ privacy

6.2 – Customers’ privacy & safety

Local communities’ wellbeing 6.3 – Positive impact on local communities

Workers in the value chain

6.4 – Encouraging ESG best-practices in our supply chain

Corporate governance 7.1 – High governance standards

Business ethics

7.2 – Business ethics and Code of Conduct

Data and cyber security 7.3 – Data and cyber security

Product lifecycle management

4.1 – Transition to low carbon-economy

4.4 – Responsible waste management

6.4 – Encouraging ESG best-practices in our supply chain

Compliance with regulatory framework

3.6 – Recognition from external agencies and benchmarks

7.1 – High governance standards

8 – GRI, EPRA and EU Taxonomy

GRI 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 topics of double materiality impact 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 ANNUAL REPORT 2023

3.5 SUSTAINABILITY AIMS

We have translated our sustainability topics into concrete sustainability goals, grouped into four pillars:

“Sustainable self storage”, “Employer of choice”, “Positive impact on society” and “Ethics and Governance”.

Whether serving our customers, developing our employees, growing in a sustainable manner, or building

relationships with communities, we focus on what is good for business and for a sustainable future. This leads to

responsible investment solutions and decisions, with enhanced value for all our stakeholders. We look forward to

continuing to work to make positive changes, relentlessly advancing self-storage solutions for every move in life.

Each of these sustainability goals will be discussed separately in further detail in this report.

GRI 2-23 / 2-24

SHURGARD ANNUAL REPORT 2023

4. SUSTAINABLE SELF STORAGE

As an owner and operator of real estate, we understand our impact on the built environment and the importance

of managing that impact in a sustainable manner. Storage assets generally have low operational environmental

impacts due to minimal utility use, given the nature of our business. Nonetheless, we continue to explore and,

where feasible, implement solutions designed to mitigate climate change risk, reduce our carbon emissions, and

limit our overall impact on the environment.

At the heart of our environmental commitment lies our robust Environmental Management System (EMS). This

systematic framework integrates our sustainability objectives with comprehensive strategies for environmental

conservation and risk mitigation. The EMS guides our actions, enabling us to measure, monitor, and continuously

improve our environmental performance across our operations. Through structured processes, data-driven insights,

and stakeholder engagement, our EMS empowers us to proactively address challenges, optimize resource

utilization, and uphold compliance with environmental regulations. We believe that using EMS supports continuous

improvement in our ESG results. Shurgard’s EMS is aligned with the International Standards Organization (ISO)

14001 standard.

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 ensure proper land use,

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 plans detail our management and operational approach in hazardous

situations. In case remedy actions are required, we seek expert advice and, always 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. Further, we have initiated work to quantify our most material categories of Scope 3 emissions. See

chapter 4.1 for further details.

GRI 2-22 / 2-23 / 2-24

SHURGARD ANNUAL REPORT 2023

4.1 TRANSITION TO LOW-CARBON ECONOMY

The general consensus is that there is a need to substantially reduce carbon emissions, to keep global warming

below 1.5°C and reduce the impact of climate change on human society and nature.

The topic has risen in prominence, as countries, cities, companies, and others are increasingly committed to

decarbonizing their operations. Regulations have been introduced to direct the real estate sector towards energy

efficiency and emissions reduction, and Shurgard is required to adhere to them.

According to the International Energy Agency, the real estate industry produces c. 40% of the world's annual

greenhouse gas emissions. This statistic does not depict the significant variances between the industry’s

subsectors, as evidenced by a study performed by KPMG on 88 European listed real estate companies that were

member of the EPRA organization as of December 31, 2020

. The average GHG intensity (expressed as emissions

of kgCO

2, by year and by sqm) of the self-storage industry is already c. 70% below the EU real estate average, and

the lowest of the real estate subsectors included in the study.

1 https://assets.kpmg.com/content/dam/kpmg/ie/pdf/2021/10/ie-overview-of-real-estate-companies-environmental-performance.pdf

SHURGARD ANNUAL REPORT 2023

Nevertheless, our Company is dedicated to contributing to the decarbonization of our industry. To keep up with the

decarbonization requirements, Shurgard has taken a step closer to conceptualizing its net zero carbon goals.

OUR NET ZERO CARBON (“NZC") STRATEGY

Our strategy can be split into two phases: (i) addressing operational emissions (i.e., so-called Scope 1 & 2 emissions

as classified in the GHG Protocol) and (ii) achieving Material NZC by 2040, or sooner, which also addresses Scope

3 emissions, including business travel, employee and client commuting and embodied carbon from our properties.

We define Operational NZC for our properties as when the greenhouse gas emissions associated with their

operation each year are zero or negative. This is achieved through a decrease in energy consumption, powering

the property with renewable energy sources on-site and/or off-site, and balancing any remaining emissions by

high quality offset projects.

Material NZC includes the emissions from indirect sources, with the most material source being embodied carbon.

With our NZC strategy, we aim to describe our plans to achieve the 2030 Operational NZC goal, including the targets

we have set and the metrics we will be using to track our progress.

PHASE ONE – SCOPE 1 & 2 EMISSIONS – OPERATIONAL NET ZERO CARBON

Our Phase One net zero carbon target, which we aim to achieve

by 2030, applies to the Scope 1 & 2 emissions of our stores. This

is where we have operational control and therefore a direct

ability to impact energy use and their associated emissions.

Our Scope 1 emissions include direct GHG emissions that result

from sources that are owned or controlled by Shurgard. In 2023,

we have emitted 760 tCO

2 (location-based

) Scope 1 emissions,

mainly resulting from the consumption of gas to heat our

stores.

Our Scope 2 emissions include indirect emissions from the use of purchased electricity and district heating. In 2023,

we have emitted 3,200 tCO

2 (location-based, extrapolated for the entire portfolio) Scope 2 emissions. This covers

the heating of our properties, as well as all electricity used to operate the store (lighting, lifts, ventilation, etc.).

Today, already 100% of our electricity and more than 70% of our gas is sourced from Renewable Energy

Guarantees of Origin (REGO) backed sources.

1 A location-based emission reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data).

This contrasts to a market-based emission that reflects emissions from electricity that companies have purposefully chosen, including the impact of contractual

instruments, such as energy from renewable sources.

Shurgard has committed to decarbonizing its business to be net zero carbon in its operations by 2030

(Operational NZC) and to reach net zero carbon across the value chain by 2040 (Material NZC).

SHURGARD ANNUAL REPORT 2023

PHASE TWO – SCOPE 3 EMISSIONS – MATERIAL NET ZERO CARBON

Our commitment to sustainability extends beyond our direct operational impacts to encompass a broader

understanding of our environmental footprint. Our 2040 Phase Two net zero carbon target 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 have identified six “Scope 3” categories that are relevant to our business activities:

Scope 3-managed emissions, i.e. those under Shurgard’s operational control:

• capital goods,

• fuel- and energy-related activities,

• waste generated in operations,

• business travel,

• employee commuting, and;

Scope 3-related emissions, i.e. those we can influence but do not directly control or manage:

• downstream transportation and distribution.

Currently, we have collected data and insights in

three Scope 3 emission categories: business travel

(360 tCO

2), employee commute (330 tCO2) and

emissions resulting from customers visiting their

rented units (7,560 tCO

2), enabling us to quantify

the emissions arising from these activities. We are

working on expanding our reporting to all Scope 3

emissions, including embodied carbon, to provide

a comprehensive view of their environmental

impact and be in position to establish a clear path

to carbon neutrality.

SHURGARD ANNUAL REPORT 2023

NET ZERO CARBON DELIVERY STRATEGY

We follow the greenhouse gas management hierarchy when planning to deliver our net zero carbon 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 emission 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. Today, already

100% of our electricity and more than 70% of our gas is sourced from Renewable Energy Guarantees of Origin

(REGO) backed sources. We want to go further and achieve net zero carbon on a location-based basis, taking into

account the simultaneousness of our purchased or produced renewable electricity and the related consumption.

The above strategy is embedded in all core stages of our business, when acquiring, developing, refurbishing, and

operating the assets.

LIKE-FOR-LIKE ENERGY EMISSIONS

In the framework of our Operational NZC commitment, we have set a like-for-like emission target reduction of 10%

in 2023, compared to a 2017 base line. Thanks to our efforts, we have achieved a 53% reduction in our emissions,

surpassing our plans.

EMISSIONS INTENSITY

Our Scope 1 & 2 GHG intensity has already decreased by 57% compared to 2017 and we are on the right trajectory

to achieve our ambitious Operational NZC target by 2030.

SHURGARD ANNUAL REPORT 2023

EMISSIONS PROJECTIONS

We are developing a coherent energy supply strategy, with the aim of making our operations as neutral as possible

for the environment. Our initiatives are strategically rolled out, considering their financial return and the

specificities of all the countries in which we operate. In order to support our decision process, we have projected

our Scope 1 and 2 GHG emissions from 2023 to 2030, at store level, taking into consideration our current GHG

emissions, the impact of our initiatives on our utility consumption, the growth of our portfolio and the expected

evolution of the national grid carbon intensities.

Our initiatives have already delivered great results from 2018 to 2023. Despite the growth of our portfolio, we have

cut absolute location based GHG emissions by c. 40%. With our current ongoing initiatives (such as LED retrofits,

heat pump rollout and implementation of a building management system), as well as the national efforts to

decrease the carbon intensity of the electricity produced and injected into the grid, our GHG emissions, at constant

perimeter, are expected to decrease from c. 4,250 tCO

2 in 2023 to c. 2,200 tCO2 in 2030 (-50%). Notwithstanding

a continuous reduction in our consumption and emission intensity, expressed by sqm, emissions will be impacted

by our projected growth, as we plan to increase our footprint by more than 50% by 2030.

We are now looking at the next steps in our efforts to reduce our

carbon footprint. For example, based on our experience from the 23

properties that are already equipped with solar panel installations,

we are performing a technical assessment of our full portfolio in the

Netherlands, a country where electricity production has a high

carbon intensity. This includes studying roof structure and

capacities, electrical connections, permit requirements, and

reinjection possibilities. With the learnings in this specific market,

including the analysis of business cases and different scenarios, we

aim to develop a coherent solar strategy for our entire portfolio.

While solar can help us decrease our daily consumption, this will

only be a partial answer to our NZC journey. We are therefore also

engaging with carbon transition experts to evaluate alternative on-

site and off-site renewable energy production options and potential

power purchase agreements (“PPA”).

Shurgard Stadionweg store in Rotterdam. a new

building (certified with BREEAM “Very Good”) of

a total of c. 13,000 sqm, has been equipped with

420 sqm of PV panels placed on the roof.

SHURGARD ANNUAL REPORT 2023

SCIENCE-BASED TARGETS INITIATIVE (SBTI) ALIGNMENT

SBTI is an internationally recognized standard that supports companies in setting up carbon reduction targets. It

probes the alignment of these targets, by sector, with the science-based decarbonization pathways required to

achieve the commitments of the Paris Agreement. New guidance for the buildings sector was released in 2023,

aligned with the CRREM tool (Carbon Risk Real Estate Monitor), developed by the EU. Shurgard aims to align its

current GHG trajectory and targets with scientifically recognized pathways.

As of today, no specific SBTI guidance has been set up for the self-storage real estate subsector. We therefore

used the one that is the closest to our activity, namely the “distribution warehouse (warm)”. It is important to

recognize that our 2023 carbon intensity is c. 80% lower than the closest real estate SBTI subsector.

Shurgard’s ambitious targets are significantly ahead of the SBTI decarbonization pathways:

• As targets are set up at country level, we used a weighted average based on the portfolio sqm in

each of the countries in which we operate.

• With our already confirmed decarbonization initiatives, i.e. not considering the above-mentioned

additional initiatives under investigation, such as solar and PPA, we will already largely meet the

2030 and 2040 carbon intensity expectations set by SBTI.

• While the science-based targets expect a 52% reduction in carbon intensity, our 2030 pathway to

NZC will achieve a carbon intensity reduction target of 100%, i.e. significantly outperforming the SBTI

requirements.

SHURGARD ANNUAL REPORT 2023

LIKE-FOR-LIKE ENERGY CONSUMPTION

In the framework of our net zero carbon commitment, we have set a like-for-like consumption reduction target of

10% in 2023, compared to a 2017 base line. We are very proud to confirm that we have surpassed our commitment,

with a reduction of 40%.

This was achieved through various investments, such as the roll out of our LED retrofit program, the implementation

of smart building management systems, and the continuous focus on increasing the share of our portfolio with

excellent building ratings (EPC or BREEAM certificates for instance).

LED RETROFIT PROGRAM

In 2015, we started a major retrofit program of our stores, investing more than €11 million to make our stores more

energy efficient. The key element of that program was the installation of motion sensors in our stores, and the

replacement of our traditional lighting with energy-efficient LED lights. This covers not only the lighting of the

storage area, but also the parking, offices, and internal drives.

The lighting of the stores represents a significant portion of the electricity consumed (c. 50%) and the LED lights

are expected to deliver a consumption saving of c. 60% compared to traditional bulb lights.

Last year, we announced an acceleration of the roll-out of the program, and we are proud to announce that we

achieved 100% coverage in all seven markets, with the installation of more than 100,000 LEDs across our entire

portfolio.

SMART BUILDING MANAGEMENT SYSTEM

To optimize our energy consumption control and avoid wasted energy, we have subscribed to a state-to-the-art

building management system. We have completed the installation in our two test markets, in Belgium and the

Netherlands. This system will help us to operate our stores in an optimal way, through online centralized

monitoring, metering and control of utilities and devices to lower consumption. It comes with alerts on unusual

consumptions, allowing us to take immediate remediation actions. We will take the learnings from this test and

will consider further expansion in the coming years.

EPC AND BREEAM CERTIFICATIONS

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, 65% of

our floor area is associated with an EPC label A or A+ and 24% of our portfolio holds a BREEAM certification

(BREEAM New Construction or BREEAM in use), and we are committed to certifying developing assets in our

pipeline where relevant.

We recently conducted a comprehensive review of our EPC labels and aligned our reporting to the different national

methodologies applied by EU countries to our reported EPC labels and coverage. We also chose to consistently

consider EPC across the entire site, rather than previously allowing for EPC in certain areas, for example where the

property is heated. This review impacted our EPC scores and coverage negatively. Looking ahead, we anticipate an

updated European Energy Performance of Buildings Directive that is expected to provide clearer guidelines and

recommendations on harmonizing EPC labels across member states. We are actively monitoring these

developments to ensure our practices align with forthcoming industry standards.

SHURGARD ANNUAL REPORT 2023

Shurgard Alperton Park Royal, BREEAM "Outstanding”

SOLAR PANELS

We are developing a coherent energy supply strategy, with the aim of making it as neutral as possible for the

environment. Today, already 100% of our electricity and more than 70% of our gas is sourced from Renewable

Energy Guarantees of Origin (REGO) backed sources.

We are now preparing the next step in our efforts to reduce our carbon footprint. Based on the experience gained

from our 23 properties that are already equipped with solar panel installations, we are embarking on a full technical

assessment of our properties in the Netherlands, a country where electricity production has a high carbon intensity.

Not only are we studying roof structure and capacities, but also electrical connections, permit requirements,

reinjection possibilities, as well as a gap analysis to achieve full carbon neutrality. This will allow us to make sure

that resources and funding can be planned and committed effectively.

GREEN BOND

On July 23, 2021, the Group issued new ten years Senior Notes for €300.0 million. The proceeds of the issue were

used to repay Tranche A (€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, 2023, the proceeds allocated to Eligible Green Projects amounted to €259.7 million, representing

an increase of €34.0 million compared to June 30, 2023. A portion – €89.2 million – was used to refinance existing

projects at issuance, whereas €170.5 million was used to finance new projects. A total of €40.3 million unallocated

proceeds of the Green Bond remain available and is expected to be used before the Bond maturity.

SHURGARD ANNUAL REPORT 2023

Store Name Certification date Rating Address

Total ('000€)

31/12/2023

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

Rotterdam Stadionweg (*) July 25, 2023 Very Good Rotterdam 16,113

Lagny October 20, 2023 Very Good Paris 10,155

Projects with BREEAM certificate "Very Good or Higher"

114,415

Croydon Purley Way Upcoming certification

London 9,044

Bow Upcoming certification

London 25,401

Satrouville Upcoming certification

Paris 9,814

Versailles Upcoming certification

Paris 11,111

Chiswick Upcoming certification

London 23,782

Chadwell Heath Upcoming certification

London 17,900

Tottenham Upcoming certification

London 16,071

Berlin Charlottenburg-Nord Upcoming certification

Berlin 13,028

Hayes Upcoming certification

London 1,333

Wangen Upcoming certification

Stuttgart 3,131

Neuss Upcoming certification

Dusseldorf 6,132

Leinfelden Upcoming certification

Stuttgart 8,086

Southwark Upcoming certification

London 494

Other Eligible Green Projects (upcoming certification)

145,327

Total Eligible Green Projects

259,741

Shurgard’s Green Bond Committee is held annually and took place on July 10, 2023 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 have been reviewed by an independent external audit firm

and the reports and auditor’s limited 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 2023

4.2 RESILIENCE OF PROPERTIES TO CLIMATE RISKS

Climate change is a growing concern for businesses around the world, and the self-storage industry is no exception.

As extreme weather events become more frequent and severe, Shurgard recognizes the need to assess its

vulnerability to climate change risks and take proactive steps to mitigate them. Climate change risks are

represented by transition and physical climate risks.

We assess climate change-related risks using state-of-the-art technological tools and comprehensive practices

every year. To this end, we follow our risk management policy:

1. We identify potential climate-related risks, whether physical risks (e.g., flooding or extreme weather

events) or transition risks (changes in policy, regulation, and market conditions).

2. We evaluate exposure to these risks, whether direct or indirect.

3. We assess likelihood and impact (potential financial, operational, and reputational consequences).

4. We prioritize risks.

5. We develop risk management strategies to mitigate, transfer, or accept the risks. These strategies may

include physical adaptation measures, such as building resilience to extreme weather events, as well as

transition strategies, such as reducing greenhouse gas emissions and transitioning to low-carbon energy

sources.

6. We monitor and review the risk management strategies on an ongoing basis to ensure that we remain

effective in the face of changing climate conditions and emerging risks.

PHYSICAL CLIMATE RISK

We identify physical climate risk as a risk 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.

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.

The Intergovernmental Panel on Climate Change (IPCC), a UN body, laid the foundation for the 2015 Paris

Agreement. Our climate change assessment relies on the latest 6

release of the IPCC assessment report, where

the Panel redefined what “cutting edge” climate change modelling means. Previously, climate change scenarios

had only considered the development of concentrations of greenhouse gases, characterized in a set of

Representative Concentration Pathways (RCPs), which we used in our 2022 sustainability reporting.

In 2023, we performed a physical climate risk assessment of our entire portfolio of 276 stores. We partnered

with Munich RE, one of the most recognized providers of reinsurance, primary insurance, and insurance-

risk solutions in the world, having 40 years of climate experience and systematic recording of global hazard

data over the past decades.

SHURGARD ANNUAL REPORT 2023

Now the IPCC has adopted a more holistic approach to expected developments in the 21

century. They now endorse

using Shared Socioeconomic Pathways (SSPs) in the modelling of future scenarios. The SSPs are used to derive

greenhouse gas emissions scenarios with different climate policies

. The SSPs provide narratives describing

alternative socio-economic developments.

The existing five SSPs scenarios are

• SSP1: Sustainability ("Taking the Green Road")

• SSP2: "Middle of the Road"

• SSP3: Regional Rivalry ("A Rocky Road")

• SSP4: Inequality ("A Road Divided")

• SSP5: Fossil-fueled Development ("Taking the Highway")

For our 2023 reporting, we have opted for the SSP2 (or SSP2-4.5) “Middle of the road” scenario.

In this scenario, global and national institutions work towards sustainable development but make slow progress.

Development and income growth proceed unevenly, with some countries making relatively good progress while

others fall short of expectations. The environment experiences degradation, but the overall intensity of resource

and energy use declines. This scenario would be expected to lead to a warming by end of the 21st century of

between 2.1 and 3.5°C relative to the pre-industrial period (1850–1900). The SSP2 scenario is comparable to the

RCP 4.5 scenario

, which was previously used in our 2022 reporting. This scenario is deemed appropriate by the EU

Taxonomy for projections up to 2060, whereas scenario SSP5 (or RCP 8.5) is largely considered as a ‘worst-case

scenario’ that is possible but unlikely to happen.

Including the SSP into our physical climate risk analysis helps us to tailor our climate strategy. By supplementing

the degree-based RCP scenarios with socio-economic considerations, we can see a more realistic picture of how

climate change will impact our portfolio and make more informed, tailored sustainability strategies for Shurgard

and its stakeholders.

1 United Nations Economic Commission for Europe (UNECE), "SSP2 Overview," May 14-15, 2019, Pathways to Sustainable Energy Workshop Consultation

https://unece.org/fileadmin/DAM/energy/se/pdfs/CSE/PATHWAYS/2019/ws_Consult_14_15.May.2019/supp_doc/SSP2_Overview.pdf.

2 Carbon Brief, "Explainer: How shared socioeconomic pathways explore future climate change," https://www.carbonbrief.org/explainer-how-shared-

socioeconomic-pathways-explore-future-climate-change/.

3 Munich Re, "Climate Change Edition," Location Risk Intelligence, https://www.munichre.com/rmp/en/products/location-risk-intelligence/climate-change-

edition.html.

SHURGARD ANNUAL REPORT 2023

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:

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.

Based on this detailed analysis, river floods and sea level rise are currently the most relevant climate related risks

for Shurgard that could have an 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 the total building, which in

Shurgard’s case are typically multi-level properties.

In total for 2023, we have identified 81 stores that were associated with at least one “high” physical climate risk,

with 57 stores for the sea level rise risk and 24 stores for the river flood risk.

SHURGARD ANNUAL REPORT 2023

The rentable sqm at high physical climate risk represents 10% 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 UK, France and Sweden.

TRANSITION RISKS

Transition risks are defined as risks associated with transitioning to a lower-carbon economy. As part of Shurgard’s

risk management system, our various departments that are part of the ESG Management Group are responsible for

identifying, assessing, managing, and monitoring climate risks associated with their business area. Risks are

assessed in line with Shurgard’s risk management policy.

We have identified the following transition risk drivers for our business and operations:

1. Regulatory risks: The implementation of new policies and regulations to reduce greenhouse gas

emissions could lead to increased compliance costs, such as the need to invest in new equipment or

technology, or the need to purchase carbon offsetting credits. This could result in increased capex and

opex, which could affect the profitability of the company.

2. Energy and resource risks: Higher energy prices or scarcity of resources could result in increased

operating costs, such as increased electricity bills or higher costs for raw materials. This could lead to

lower profitability or decreased competitiveness in the market. Poor energy management may lead to a

loss of market share, longer term.

3. Technology risks: The adoption of new technologies or changes in the market demand for storage

solutions could lead to the need for new investments in technology or infrastructure. Failure to adapt to

these changes could result in decreased revenue or increased costs.

4. Reputation risks: Negative public perception or association with unsustainable practices could lead to

decreased demand for Shurgard’s products and services, which could result in lower revenue.

5. Financial risks: Increased borrowing costs or difficulty accessing capital could result in decreased

investment in new technologies or infrastructure, which could affect Shurgard’s ability to adapt to the

transition to a low-carbon economy.

SHURGARD ANNUAL REPORT 2023

Decarbonization pathways offer a valuable measure of transition risk, especially concerning real estate portfolios

and assets. These pathways employ a metric, GHG intensity (measured in kgCO

2e/sqm/year), applicable to the

entire real estate asset category. The Carbon Risk Real Estate Monitor (CRREM) has established science-based

decarbonization pathways for numerous developed real estate markets globally, aligning with climate goals set by

the Paris Agreement. These pathways serve as practical benchmarks for assessing individual assets in light of high-

level global commitments, like NZC targets and the Paris Agreement.

These pathways serve two main purposes: NZC alignment and transition risk assessment. Organizations like the

NZC Asset Owner Alliance and the Institutional Investors Group on Climate Change recommend CRREM pathways

for real estate compliance with their criteria, even though the 1.5°C CRREM pathways do not precisely reach zero

2e/sqm by 2050, they are considered ambitious enough for NZC alignment.

“Stranded assets” are properties that will not meet future energy efficiency standards and market expectations

and might be increasingly exposed to the risk of early economic obsolescence. The highest risk for the real estate

sector is that assets would lose their economic value due to, for instance, the loss of their license to operate or the

inability to resell them because of their inability to comply with increasingly stringent regulatory requirements.

Although decarbonization pathways do not directly reflect the evolution of the local regulatory environment, they

might be used as an indication of an increasing risk of stranded assets.

The risk of asset stranding is a concern across sectors, including real estate. It can arise due to various factors

associated with transition risk, such as policy, legal, technological, market, or reputational factors. While

decarbonization pathways reflect regulatory ambition, they are not precise indicators of regulatory requirements

in each jurisdiction. Instead, they serve as a proxy for regulatory or policy transition risk. An asset's GHG intensity

exceeding its decarbonization pathway does not guarantee license loss but suggests an elevated risk of stranding

if regulatory alignment with national commitments is anticipated, even if it is currently lagging.

Today, we have not identified any asset that would be stranded or at risk of becoming stranded in the near future.

We refer to the section 4.1 Transition to low-carbon economy, where we demonstrate that our ambitions of being

NZC in our operations by 2030 should prevent any material risk related to asset stranding, as our carbon intensity

trajectory will remain largely below scientifically recognized decarbonization pathways.

OUR REPONSE TO CLIMATE RISK

Climate change risks mentioned above are one of the risks that Shurgard considers in its risk assessment

framework.

Firstly, we strive to rely solely on green electricity and green gas. We are reducing our consumption year by year.

We invest in renewable energy sources to reduce our dependence on fossil fuels. By installing solar panels on our

facilities, we not only plan to generate energy and reduce our exposure to rising energy costs and potential carbon

taxes, but also contribute to the overall resilience of our operations. The power created with solar installations can

be invested back into the grid, enhancing our ability to adapt to changing energy dynamics influenced by physical

climate risks. Additionally, we prioritize energy-efficient measures such as LED lighting to further reduce our carbon

footprint and minimize the strain on resources in the face of climate-related challenges.

Secondly, we implement comprehensive measures to enhance the resilience of our infrastructure and operations

against physical climate risks. This includes upgrading lighting (to LED) and HVAC systems to improve energy

efficiency, as well as implementing strategies to reduce waste, manage water resources efficiently, and prevent

water and energy leakage and spilling. By taking these proactive steps, we not only reduce our environmental

impact but also strengthen our ability to withstand and adapt to the physical risks posed by climate change, such

as extreme weather events and changing hydrological patterns.

SHURGARD ANNUAL REPORT 2023

Thirdly, our company actively explores new business models that align with a low-carbon economy and address

physical climate risks. We also seek partnerships with companies and suppliers that offer sustainable solutions,

further minimizing our environmental impact and helping to mitigate physical climate risks. These initiatives

demonstrate our commitment to resilience and adaptation in the face of climate change.

Lastly, Shurgard engages with stakeholders, such as suppliers, investors, customers, and employees, to

communicate our commitment to sustainability and seek their input on ways to reduce the company's carbon

footprint and address physical climate risks. By actively involving stakeholders in our sustainability efforts, we

foster trust, credibility, and collaboration, which ultimately enhances our reputation and strengthens our ability to

manage potential reputational risks arising from both transition and physical climate risks.

4.3 SAVE WATER

Ensuring sustainable water withdrawal and supply of fresh water to address water scarcity and reduce the number

of people suffering from water scarcity was identified as another important risk. Having said that, water use for

self-storage properties is typically very low compared to sites of a similar size in the real estate sector. 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 maintaining specific protocols in the design and

operations of our storage properties to ensure low water consumption.

Over the past few years, we have rolled out water efficiency measures at portfolio level, such as low flow taps and

other fittings. In 2023, we equipped 100% of our stores with smart water metering facilities, which allows live

monitoring of water consumption by store. The system can detect abnormal water consumption, such as water

leaks, and sends an alert to our facility teams that can take immediate remediation actions. Considering the very

low water consumption overall in our business, water leaks have a major impact on our consumption. Installing

these smart water systems helps us to act in a timely manner and prevent abnormal peaks in consumption.

In 2023, we outperformed our target to decrease our like-for-like water consumption by 5% (vs. 2017 baseline),

achieving an actual reduction of 46%.

4.4 RESPONSIBLE WASTE MANAGEMENT

Environmental pollution has been sub-divided for the purpose of this report into (i) reduction of carbon emissions

(see our discussions in chapter 4 on this) and (ii) responsible waste management, which is discussed further below.

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 their 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.

SHURGARD ANNUAL REPORT 2023

In addressing other environmental concerns in the area of pollution, Shurgard is committed to utilizing sustainable

materials in its packaging for customers' moving needs. We diligently require that our suppliers of wood fiber-

based products used in packaging source their wood fibers exclusively from certified forests, ensuring sustainable

management practices and providing comprehensive traceability. All forestry-based products obtained by Shurgard

for packaging solutions adhere to certification standards, including the Forest Stewardship Council (FSC) and PEFC,

along with other certifications recognized by PEFC. These certifications are prominently highlighted on our

packaging materials for sale, emphasizing our dedication to eco-friendly sourcing. Moreover, any additional

documentation provided to customers is presented on paper that carries the FSC certification, reinforcing our

commitment to responsible environmental practices.

In 2023, we maintained our achievement of 100% diversion from landfill as well as our protocols for low waste

consumption in design and operations of our stores.

4.5 OUR “SUSTAINABLE SELF STORAGE” FUTURE COMMITMENTS

SHURGARD ANNUAL REPORT 2023

5. EMPLOYER OF CHOICE

Human capital is a key pillar in our sustainability strategy. Our commitment to the development of our human

capital is based on common values such as collective effort, a strict sense of ethics and the search for excellence.

Our ambition is to embed Shurgard‘s culture in everyday practices in order to forge positive relationships, improve

the employee experience and create a united internal environment. This also means ensuring that our employees

are working in a safe and inclusive environment. We invest in our talents, through training, feedback, internal

mobility, promotion opportunities as well as a dynamic and fair remuneration policy.

5.1 SAFE AND INCLUSIVE WORKPLACE

HEALTH AND SAFETY

The safety of our employees and our customers is a key 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 for 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); and

• By the District Managers three times per year (self-assessments).

SHURGARD ANNUAL REPORT 2023

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.

GRI 403-5

DIVERSITY, EQUITY, AND INCLUSION

Shurgard is committed to an inclusive workplace that embraces and promotes diversity, pay equity and equal

opportunity. The principle of non-discrimination (see our policy on non-discrimination and anti-harassment)

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; and

• Development programs.

Our support and operation teams are located in eight countries, representing 40 different nationalities. We

therefore benefit from a naturally diverse and high-quality employee base. Our diversity of thinking and experiences

foster innovation and long-term relationships. We strive to increase the diversity of gender, culture, age, origin,

and training within our workforce. We believe that this encourages innovative solutions and exceptional customer

service to an equally diverse community. Our pledge 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. In 2023, we launched a new employee training program on diversity, equity, and inclusion.

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.

SHURGARD ANNUAL REPORT 2023

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 83% of the total Shurgard personnel. Within

stores across our seven operating countries, the total gender split is 58% male and 42% female. In 2022, the

gender split was 58% male and 42% female.

The gender split for our European Support Center employees was 57% male and 43% female in 2023, against 53%

male and 47% female in 2022.

The gender pay difference for store personnel is marginal across our different operating countries. The total

difference is 3.3% (in favor of male personnel) across all geographies which reflects a range between 10.4.% and

0.2%.

SHURGARD ANNUAL REPORT 2023

5.2 INVEST IN THE DEVELOPMENT OF OUR PEOPLE

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.

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 new support center 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 develop both professional skills as well as soft skills, such as communication, problem-

solving and time management.

In pursuit of organizational excellence, Shurgard has embarked on

a transformative journey by adopting and implementing the

renowned "7 Habits of Highly Effective People" training framework

developed by FranklinCovey.

The 7 Habits framework has become an integral part of our

employee development program. Through this program, our

employees of all levels have learned to cultivate habits that

prioritize and balance personal and professional goals. Teams

routinely engage in feedback sessions and 7 habits-themed

lunches, identifying areas for growth and implementing positive

changes in their everyday work and life.

To streamline various aspects of talent management and

development, Shurgard uses a cloud-based talent management platform. It allows us to establish a structured

performance management process and manage all training offered at Shurgard. It helps us to create better

onboarding processes and follow-up of new hires to make sure they are well integrated into the company from

day one. The platform provides a central hub for organizing and delivering training and development programs. It

offers a learning management system (LMS) that allows us to create, manage, and track training courses. Our

employees can access training materials, complete courses, and monitor their progress through the platform. On

top of that, the platform facilitates 360-degree feedback processes, where

employees receive feedback from managers and subordinates. To support the

feedback process, we also have a 360-degree assessment for managers via

the FranklinCovey training platform.

SHURGARD ANNUAL REPORT 2023

The comprehensive feedback helps our employees gain insights into their strengths and areas for improvement,

enabling them to grow and develop in their roles.

To retain and attract top talent within our stores, we launched the Shurgard Academy in 2018. 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.

In 2023, 100% of our employees underwent a performance appraisal process. Shurgard’s large training program

resulted in a total amount of approximately 23 training hours completed per full-time employee, representing a

100% ratio of our workforce that followed at least one training this year. Our total training hours for 2023

amounted to over 15,900 hours, including first aid and fire emergency training in addition to all the new joiners’

induction training and some other externally provided training deemed important for the development of our

employees.

As we continue our progress, we are modernizing our learning by collaborating with a new partner who specializes

in game-based learning and virtual reality learning. Starting in 2024, we are planning to create customized game-

based training courses for the stores, and this will be added to the Shurgard Academy.

INTERNAL MOBILITY AND PROMOTION

Shurgard‘s priority is to develop support for employees in

their career development, 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 include the:

• 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. Calibration meetings are conducted annually among the executive team to ensure that all

remuneration decisions are fair across the entire employee population. Thus, people with similar roles,

responsibilities, and experience receive comparable salaries. Moreover, executive remuneration policies are

reviewed each year by the ESG Committee and a dedicated survey was conducted on executive salaries (we refer

to the Remuneration Report). We ensure our alignment with best practices and our compliance with the various

legislation in force. We regularly organize remuneration calibration meetings to assess our conditions within the

business and align the salaries of all our employees according to the market.

GRI 2-19, GRI 2-20

Fabrice Gaude, Store Manager/District Trainer for France, has

been awarded the prestigious

FEDESSA (federation of

European self-storage associations) Manager of the Year

Award

at the 2023 FEDESSA Conference and Trade Show.

SHURGARD ANNUAL REPORT 2023

5.3 SHARE AND LIVE THE SHURGARD CULTURE

EMPLOYEE HAPPINESS AND ENGAGEMENT

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 of large corporations, such

as ours. Our current ranking is higher

than average (4.7/5 vs. an average of

3.7/5, and 97% CEO approval vs.

average rating of 73%). The results

prove that our mission is well reflected

in the employees’ experience.

INVESTORS IN PEOPLE

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. We have gone through the assessment by Investors in People in 2022 and have been

recognized as a “Silver Investors in People organization” in 2023 as a result of this evaluation. The Investors in

People assessment contributes to UN Sustainable Development Goal #8 – ‘Decent Work and Economic Growth’.

The survey was available to all employees at Shurgard and has enabled us to see and address our highs and lows

when it comes to employee engagement and happiness. We have improved our results compared to the previous

assessment of 2020 and are planning to continue the process of empowering our employees and enriching the

company culture.

EMPLOYEE WELL-BEING INITIATIVES

In a commitment to prioritizing the health and happiness of our employees, we have recently initiated a

comprehensive array of well-being initiatives. At the heart of these endeavors lies a sincere focus on both mental

and physical well-being, recognizing that a harmonious balance between the two is indispensable for overall

wellness and peak performance.

Among the initiatives introduced is the approach to monitor and assess the well-being of our dedicated operations

and support center staff. We use different techniques for assessing the well-being of employees, which includes

online surveys and screenings. This pursuit of well-being is by no means novel within Shurgard. In 2023, in

partnership with Attentia, a rapidly growing Belgian professional services organization that offers a broad range

of HR, well-being and payroll solutions, we performed a well-being assessment survey aimed at checking the needs

of employees during homeworking.

SHURGARD ANNUAL REPORT 2023

Further, we have a “Direct employee participation on welfare form”, which is aimed at addressing immediate

concerns and feedback of employees on the road to creating a workplace that promotes employees’ health,

happiness, and productivity. The insights gained from the answers on various surveys launched in 2023 allowed us

to delve into the most important elements that contribute to the vitality of our workforce, such as condition of the

office, appreciation at work, inclusive culture and work-life balance.

The culmination of these well-being assessments is not merely confined

to data collection. As we are working towards a more enriched employee

experience, we have processes in place to address the issues identified

with the invaluable data we receive. This process signifies our dedication

to not only identifying areas of concern but also taking tangible steps to

effect positive change. In 2023, we have implemented bi-monthly stress

relief workshops for our support center staff, invested in teleworking and

ergonomics training to facilitate the experience of comfortable and

effective homeworking for our employees. We have equally addressed

such office space issues as indoor air quality and lighting control. We

promote physical well-being by encouraging our support center and

store employees where possible to use the office bicycles during the lunch breaks. To promote social interaction,

connection and inclusion, our employees have an opportunity to connect as a team during get-together events –

both occasional, quarterly and yearly corporate gatherings. There are recognition events to build the team and

keep spirits high. Performance rewards and “Employee of the Month” are used to emphasize the value of employees

and their efforts at work. Each country has a range of recognition events and an annual awards event. Each action

undertaken is a testament to our commitment to fostering a workplace that prioritizes the holistic well-being of

our workforce.

It is our duty to assess and monitor the physical and mental well-being of our employees and create a workplace

that thrives on the principles of care, support, and empowerment. Through these initiatives, we aim not only to

enhance the well-being of our employees but also to cultivate a culture where wellness is a shared journey

embraced by all.

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 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. By fostering a culture centered around these pillars,

we aim to have engaged people, knowing that their commitment and enthusiasm are crucial drivers for our

collective success.

Bicycle used by our employees of the

Zoetermeer store in the Netherlands

Happiness –

Training

– Team Spirit –

Perspective

SHURGARD ANNUAL REPORT 2023

In 2023, we launched the pillars training, an e-learning module that all new hires will follow during their onboarding

period to help to integrate them into the working culture of Shurgard.

These pillars stand as a testament to our unwavering commitment to fostering an environment where every

employee thrives, grows, collaborates, and gains a well-rounded outlook on both professional and personal aspects

of life. Each year, we celebrate and recognize the outstanding contributions of our Shurgard support center

employees who exemplify excellence in these core values. These awards not only acknowledge individual

achievements but also serve as a collective celebration of the shared values that define our unique culture.

Happiness:

At the core of our corporate culture lies a belief that happiness is not just an outcome, but a journey. We have

diligently integrated happiness into every facet of our organization, ensuring that our employees experience joy

and fulfillment in their daily endeavors. Our initiatives, from well-being programs and flexible work arrangements

(e.g., homeworking) to recognition and celebration of achievements, reflect our dedication to cultivating a

workplace where positivity and well-being are not only encouraged but are integral to our identity.

Training:

The value of continuous learning and growth is deeply ingrained in our organization's DNA. Our commitment to

training is not just a standalone activity; it's a dynamic process that fuels our employees' professional development.

From structured training programs to mentorship opportunities and access to cutting-edge resources, we empower

our workforce to evolve and excel. By fostering a culture of curiosity and skill enhancement, by continuously offering

trainings and opportunities for professional growth internally, we ensure that our employees remain at the

forefront of their respective fields.

Team Spirit:

Collaboration and unity are the cornerstones of our success. The spirit of teamwork resonates in every department,

project, and interaction. We have nurtured an environment where diverse talents converge, fostering a rich

exchange of ideas and perspectives. Our open communication channels, cross-functional projects, and team-

building activities bolster a sense of belonging that transcends roles and hierarchies, ultimately driving us towards

collective achievements.

Perspective:

We recognize that a broad perspective is essential for innovation and adaptability. Our commitment to cultivating

a diverse and inclusive workforce ensures that varied viewpoints enrich our decision-making processes. Beyond

diversity, our focus on perspective also extends to nurturing a culture of empathy and understanding. Through

initiatives that promote cross-cultural awareness and community engagement, we broaden our employees'

horizons, enabling them to appreciate the interconnectedness of our global society.

Our sustainability report proudly reflects the journey of integration of our cultural pillars into our corporate identity.

Through our commitment to happiness, training, team spirit, and perspective, we have not only set a benchmark

for excellence but are on the way to fostering an environment where employees are empowered, valued, and

inspired to contribute their best. As we look ahead, these pillars will continue to serve as guiding lights, illuminating

the path toward sustained growth, innovation, and a workplace that is a true embodiment of our core values.

SHURGARD ANNUAL REPORT 2023

5.4 OUR “EMPLOYER OF CHOICE” FUTURE COMMITMENTS

SHURGARD ANNUAL REPORT 2023

6. POSITIVE IMPACT ON SOCIETY

Shurgard wants to have a positive impact on society. This means building lasting and equal relationships with our

stakeholders. We want to deliver best-in-class services to our customers, and make sure that they can use our

services.

6.1 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.

A vast majority 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 2023, we conducted a move-out survey in our seven countries to better understand our customers’ feedback

and Net Promoter Score (NPS). The survey was conducted by a third party. The feedback collected is used to improve

the quality of our services towards our customers. The key findings of the NPS survey include:

• Overall satisfaction: most respondents expressed high levels of satisfaction with our

products/services, indicating a strong foundation of customer contentment.

• Loyalty indicators: the NPS revealed a significant number of promoters who are highly likely to

recommend our offerings to others, underscoring the strength of our client relationships.

• Areas for improvement: constructive feedback from detractors has been carefully analyzed, and we

are committed to addressing specific concerns to enhance the overall client experience.

This survey is part of our ongoing commitment to continuous improvement. As the next steps, we will dive into the

survey responses to identify actionable insights and opportunities for improvement.

SHURGARD ANNUAL REPORT 2023

Throughout the year, we collected no fewer than c. 14,800 Google reviews, adding to our all-time total of 98,000

reviews, of which 89% are 5-star. Our overall all-time rating stands at 4.8 out of 5 stars, collated from over 350

reviews per property – a result seen consistently across our stores and countries. Overall, in 2023, we have

managed to obtain 4.6 reviews per store per month, even more than we set out as our aim in our 2023 Customer

Service actions. Our strategy is not only to obtain customer feedback, but we also look to receive qualitative

responses we can act upon. As of December 2023, 84% of our Google reviews contained written feedback. As of

December 2023, our Trustpilot rating was 4.7 out of 5 stars.

6.2 CUSTOMER PRIVACY AND SAFETY

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 countries in which we operate, and 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 purpose 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 monitors security and privacy risks, improving our ability to mitigate them through:

• Company-wide programs;

• Established industry practices;

• Assessments and responses to threats and vulnerabilities.

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 in the collection, the processing, 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,

SHURGARD ANNUAL REPORT 2023

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.

Our employees from the HR, Marketing and IT departments participate in regular data privacy training, specifically

designed for their area of business.

CUSTOMER SAFETY

Shurgard is fully committed to providing safe storage facilities to our customers. 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 three-year cycle (more than one third of the properties are audited each

year).

• By the District Managers three times per year (self-assessments).

All our locations have:

• strategically placed digital CCTV camera;

• alarms monitored by an external security team;

• sensor lighting;

• perimeter fencing;

• PIN coded electronic gates;

• individual storage units with specifically designed secure locks.

On top of these security measures, we also make sure all our stores are fully insured for such things as natural

disasters, and our customers are all insured for stored items against loss or damage.

In 2024, we will roll out a significant improvement of our security systems, using the latest available technologies

to maintain and enhance the best security standards for our clients.

6.3 POSITIVE IMPACT ON LOCAL COMMUNITIES

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 support centers, 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

In 2023, we have implemented and made publicly available a Community and Charity Policy.

GRI 413-1

SHURGARD ANNUAL REPORT 2023

OUR CHARITY SUPPORT

We have a 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. Shurgard France

continues to support this association financially. In

2023 we helped and participated in the organization

of the big clearance sale of Le Rire Médecin 2023.

After a very positive result in 2022, 14,300 euros were

raised which made it possible to offer 477 clown visits

to hospitalized children in 2023. Shurgard’s aim for

2023 was to bring as many smiles and laughter as

possible to hospitalized children by supporting Le Rire

Médecin.

We also have a 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.

Through our charity partnership with the Mayor's Fund for London, an

independent pan-London charity offering support to young Londoners from

low-income backgrounds, Shurgard regularly facilitates CV writing workshops,

interview workshops and on the job experience for young adults through the

Access Aspiration Program. We recently completed another successful CV and

interview workshop, this time at the Walthamstow Academy. Our District

Managers collaborated with the students, guiding them through the process of

preparing for CVs and interviews.

We are organizing fund raising activities at Shurgard for the Mayor’s Fund for

London and we held two in 2023. One was a fancy dress event in the East

District and one was a fancy dress event in the South District for Halloween.

Shurgard is donating £10,000, which will be invested in food, education and

job support.

On top of that, our Shurgard UK team is organizing game-based math

workshops that give the students the opportunity to understand why math is

important for the future. Since launch, a total of over 300 students have

benefited from the Shurgard workshops.

Our Swedish and Danish market teams will continue their strong support and

relationship with Team Rynkeby, a Nordic charity cycling team raising money

for organizations that support children with critical diseases across Europe into

2024. Shurgard is providing free storage space at three locations in Denmark and eight locations in Sweden.

Throughout the year, not only must the members make preparations to cycle the 1,200km trip to Paris, they also

do what they can to raise money for children with critical illnesses. In 2022, all the stores in Denmark and Sweden

collected money as part of the Team Rynkeby fundraising for the Childrens Cancer Fund in Sweden and in 2023,

we continued our support of Team Rynkeby. Team Rynkeby donated €9.1 million to organizations that help children

with critical illnesses in 2023 and Shurgard is proud to have contributed to this goal.

Initiative from our UK team to support

our charity partner the Mayor's Fund in

London in raising funds. The event not

only raised money for the charity but

engaged the team and the customers

in a fun way. It supported our goal to

drive engagement, team spirit and

happiness among employees.

Group photo of the students of Walthamstow Academy and

our UK district managers (DMs): Monir (DM North), Zak (DM

South) and Danny (DM West).

SHURGARD ANNUAL REPORT 2023

We support 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.

In Belgium, we have a charity partnership with Pelicano,

a foundation that fights to end child poverty. 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 seven different self-storage locations.

PHILANTHROPIC CONTRIBUTIONS

For 2023, 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 2023

Cash Contributions

€19,833

€20,707

Time: employee volunteering during paid working hours

€16,214

€16,260

In-kind giving: product or service donations, projects/partnerships or similar €83,924 €95,636

Total Charitable Contributions €119,972

€132,603

6.4 ENCOURAGING ESG BEST-PRACTICES IN OUR 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 wide 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 employees and suppliers with knowledge and resources about sustainable procurement

principles;

• Proactively implements compliance provisions in contract templates;

• Reviews human rights, modern slavery and bribery risks throughout the supply chain through the

ESG questionnaire and due diligence processes.

In March 2023, Shurgard Scandinavian team (Sweden and

Denmark) made all their way to meet at three different gyms

in Malmö, Gothenburg and Stockholm to spin together with

Team Rynkeby for the Children's Cancer Foundation.

SHURGARD ANNUAL REPORT 2023

SUPPLIER CODE OF CONDUCT

We continually look for opportunities to increase the dialogue around sustainable sourcing and improve

understanding, both internally and externally. 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. In addition to that,

in 2023, we made the Suppliers’ Code of Conduct publicly available on our website. This Code clarifies the guiding

principles Shurgard applies to our suppliers to create a mutual understanding of our core values. It is a commitment

we have towards our customers, employees, and investors to ensure sustainable sourcing of services and aims to

ensure that suppliers adhere to high standards of safe working conditions, fair and respectful treatment of

employees, and ethical and environmental practices. Suppliers’ obligations to comply with the Suppliers’ Code of

Conduct is also now part of all our contract templates.

SUPPLIER SURVEY

To ensure ongoing compliance with ethical and environmental standards, we survey our critical tier-one suppliers

every three years regarding their ESG performance. In 2022 we have identified these suppliers 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 on 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.

In 2023, we have invited our suppliers to participate in the SMEs sustainability training, provided by the UN Global

Compact. By encouraging our suppliers to participate in this learning journey, we can enhance sustainability

performance across our operations and ensure our supply chain is well-prepared for market changes, climate-

related challenges, and evolving regulations.

WORKERS IN THE SUPPLY CHAIN

In our commitment to maintaining a sustainable supply chain, we conduct rigorous sample-based audits of our

vendors and suppliers on new development sites on a yearly basis. These audits serve as a comprehensive

evaluation of various aspects, ensuring the well-being and compliance of supply chain employees with health and

safety, as well as human rights standards.

A crucial aspect of our audit process involves an examination of the working conditions for third-party employees.

We go beyond confirming adherence to local laws and standards and require all suppliers to adhere to the Shurgard

safety charter, a robust framework that regulates vital health and safety issues within the working environment.

Recognizing the importance of well-being of our supply chain employees, we ensure that each new worker or

contractor undergoes a thorough safety induction training. This training, which encompasses essential components

such as the prevention and health plan and the general safety plan, equips employees with the knowledge and

awareness necessary to maintain a secure environment on a construction site.

Moreover, we take a proactive approach to enforcing working procedures that uphold the rights and welfare of all

employees on site, e.g., identification and formal registration of all visitors and workers, verification of legal papers.

This also ensures that child labor is not involved on site. Through these on-site checks and comprehensive audits,

we not only fulfill our regulatory obligations but also reinforce our dedication to maintaining an ethical and

sustainable supply chain. By prioritizing the well-being of employees in the supply chain, adhering to local

standards and laws, and eliminating any potential ethical concerns, we strive to create a supply chain that reflects

our commitment to corporate responsibility and sustainable business practices.

SHURGARD ANNUAL REPORT 2023

SUPPLY CHAIN STRATEGY

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.

6.5 OUR “POSITIVE IMPACT ON SOCIETY” FUTURE COMMITMENTS

SHURGARD ANNUAL REPORT 2023

7. ETHICS & GOVERNANCE

Ethics and governance are foundational 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 applicable regulations.

As a company whose shares are listed on Euronext Brussels, 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. Shurgard follows a clear code of conduct, guiding

our employees and other stakeholders. Our Board of Directors make significant business decisions based on

thorough analysis to ensure well-informed choices. Regular audits are conducted to ensure that all business

activities adhere to relevant laws, regulations, and internal policies. Our KPIs are tracked and reviewed regularly to

assess the overall effectiveness of Shurgard and identify areas for improvement. 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

February 17, 2023. For the latest updates on our structure, please refer to the chapter “Group Structure” of our

Annual Report.

The governing bodies of our Company are the Board of Directors and the General Shareholders’ Meeting. The Board

together with the Senior Management manages the Company in accordance with applicable laws.

SHURGARD ANNUAL REPORT 2023

7.1 HIGH GOVERNANCE STANDARDS

MANAGEMENT AND SUPERVISION OF THE COMPANY

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.

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 committees are held at the place 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 committees 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 committees do not require

separate notice. Members of the committees 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 the 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.

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 provides 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 2-14 / 2-9

SHURGARD ANNUAL REPORT 2023

BOARD OF DIRECTORS

According to our Articles of Incorporation, 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 before the next

General Shareholders’ Meeting.

The Board of Directors is currently composed of nine members - one Executive Director and eight Non-Executive

Directors. We consider a majority (six) of the members of our Board of Directors to be independent. At the Annual

General Shareholders’ Meeting of May 10, 2023, seven members of the Board were re-appointed and two new

members of the Board were appointed for a term of one year ending at the Company’s Annual General

Shareholders’ Meeting to be held in 2024.

Since the last Annual General Meeting of shareholders held May 10, 2023, Ronald L. Havner, Jr. and Daniel C. Staton

have resigned from the Board. Mr. Havner has retained the honorary title of Chairman Emeritus. This is currently a

non-voting position wherein Mr. Havner provides advisory services to the Board as needed. Ian Marcus has been

appointed as Independent Chairman. Everett B. Miller III and Isabelle Moins have also resigned from the Board. Tom

Boyle and Lorna Brown have joined the Board of Directors.

Responsibilities

The Board of Directors retains sole responsibility for the following matters:

Topics Responsibilities

Corporate

governance

• Convene the general meeting of shareholders of the Company;

• Establish the internal regulations of governance of the Company;

• Elect the members of the Audit Committee, the ESG Committee and the Real Estate

Investment Committee;

• Appoint and remove the Chief Executive Officer of the Company;

• Delegate the day-to-day management of the Company to the Chief Executive Officer;

• Appoint and remove the other executive Board members when their appointment or

removal is proposed by the Chief Executive Officer.

Strategy and

policies

• Approve the overall Company strategy;

• Approve the sustainability strategy of the Company;

• Approve the Diversity, Equity and Inclusion policy.

Financial

information,

budget,

investments and

pensions schemes.

• Approve the annual overall Company budget;

• Approve the annual balance sheet and profit and loss accounts and propose an

allocation of the annual profits;

• Approve any acquisition or disposal of assets, properties or subsidiaries worth more

than €50.0 million;

• 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.

SHURGARD ANNUAL REPORT 2023

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.

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 2023, the Board of Directors held five meetings. All members of the Board were present

at these meetings with the exception of one meeting where one member was not present due to personal reasons.

GRI 2-10 / 2-11

Directorships and Shurgard shares held by Board members

As of December 31, 2023, our Board members held directorship mandates in the following companies:

As of December 31, 2023, the members of the Board of Directors owned 157,181 shares or 0.16% of the total share

capital of the Company.

Name Mandates

Shurgard

shares owned

Ian Marcus

Town Centre Securities plc, Anschutz Entertainment, Work-Life, Elysian

Residences, the Wharton Business School Real Estate Faculty, Eastdil

Secured LLP, Redevco NV, Cambridge Land Economy Dept Advisory Board

BCP Futures

2,515

Marc Oursin CAG23 Capital 137,092

Z. Jamie Behar

Armour Residential REIT, Inc., Sila Realty Trust, Benefit Street Partners

Multifamily Trust

1,901

Tom Boyle None 0

Lorna Brown

BREC 1 UK Limited, Birchwood Real Estate Capital UK Limited, Birchwood

Real

Estate Capital Limited, BREC Fund I Jersey Limited, BREC Fund I CIP

GP Limited

Olivier Faujour

Wegrow SaaS, Neosilver Silver Economy, Alpange Pianos Company

, Bon

Vivant Food

4,347

Frank Fiskers Whitbread PLC, Rak Hospitality Holding LLC 5,347

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)

2,979

Padraig McCarthy Eutelsat Communications 2,000

SHURGARD ANNUAL REPORT 2023

Independence

Six of the non-executive directors – Ian Marcus (Chairman), Lorna Brown, Olivier Faujour, Frank Fiskers, Muriel De

Lathouwer and Padraig McCarthy – 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:

• is not an executive or managing director of the Company or an associated company;

• is not an employee of the Company or an associated company;

• does not receive significant additional remuneration from the Company or an associated company

apart from a fee received as Non-Executive Director;

• 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% or larger holding);

• 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;

• is not a partner or employee of the external auditor of the Company or an associated company;

• 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

• is not a close family member of an executive or managing director, or of persons in the situations

referred to in points above.

Skills matrix and Biographies

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. 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

Board member Role

International

Management

Real Estate

Finance

Risk

anagement

and c

ompliance

Retail and

consumer

goods

Digital, IT

and

technology

Ian Marcus

Independent Chairman



Marc Oursin

Executive Director/CEO



Z. Jamie Behar

Director



Tom Boyle

Director



Lorna Brown

Independent Director



Olivier Faujour

Independent Director



Frank Fiskers

Independent Director



Muriel De Lathouwer

Independent Director



Padraig McCarthy

Independent Director



Total

100%

63%

44%

22%

SHURGARD ANNUAL REPORT 2023

100

SHURGARD ANNUAL REPORT 2023

101

At the Annual General Meeting of Shareholders to be held on May 22, 2024, Olivier Faujour will resign and Paula

Hay-Plumb, whose biography is below, shall be proposed as a new Director.

All other current Directors’ mandates will be up for renewal.

Director and management conflicts of interest

Members of 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 team 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.

As of December 31, 2023, the following member of the Board of Directors is partner, director, representative and/or

employee of Public Storage or an affiliate thereof: Tom Boyle. Another member of the Board of Directors elected

on the designation of our shareholder New York State Common Retirement Fund is Z. Jamie Behar. 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 Senior Management are related to one another by blood or marriage.

We have not granted any Board members or members of Senior Management any loans, nor have we assumed any

guarantees or sureties on their behalf.

Pursuant to the Company’s Articles of Incorporation and Corporate Governance Charter, if 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 members 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.

GRI 2-15

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, 33% of Board members are women, and the Company aims to increase that

ratio. Also, six nationalities are represented on the Board which allows for an enriching cultural exchange.

SHURGARD ANNUAL REPORT 2023

102

Furthermore, the Board members have different skills backgrounds: all of them have management experience,

three quarters have finance experience, and seven directors have a strong background in real-estate, including self

storage (for four directors). 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

AUDIT COMMITTEE

The Audit Committee is responsible for all matters set forth in its internal rules and regulations as adopted by the

Board. The Audit Committee should, in particular, perform the following activities:

• 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;

• monitor the financial reporting drawing-up process and submit recommendations or proposals to

ensure its integrity;

• 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;

• monitor the statutory audit of the annual and consolidated financial statements, in particular its

performance;

• review and monitor the independence of the approved statutory auditor(s);

• be responsible for the selection of the approved statutory auditor(s) and ensure that they are duly

qualified for appointment pursuant to the Companies (Guernsey) law, 2008 as amended regarding

commercial companies (the Guernsey Company Law).

During their meeting held on November 2, 2023, the Audit Committee members approved a revised version of its

internal rules and regulations reflecting on the reporting framework for sustainability and ESG as provided for

under

the Corporate Sustainability Reporting Directive :

• monitor the ESG reporting drawing-up process and submit recommendations or proposals to ensure

its integrity;

• monitor the effectiveness of the Company’s internal quality control and risk management systems

and, where applicable, its internal audit, regarding the sustainability reporting of the Company,

without breaching its independence;

• review the consolidated sustainability reporting carried out according to the relevant sustainability

reporting standards;

• monitor the assurance of the annual and consolidated sustainability reporting.

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, 2023, the Audit Committee consisted of four members: Padraig McCarthy (chairperson), Muriel

De Lathouwer, Lorna Brown and Z. Jamie Behar. Padraig McCarthy, Muriel De Lathouwer and Lorna Brown are

considered independent Board members. Padraig McCarthy, Muriel De Lathouwer, Lorna Brown and Z. Jamie Behar

have a special competence in accounting and/or auditing in listed companies. Three out of the four members of

SHURGARD ANNUAL REPORT 2023

103

the Audit Committee are independent, which ensures good governance and nonpartisan decision-making. Z. Jamie

Behar, non-independent director, has been appointed to the Audit Committee due to her renowned academic

knowledge in finance and 25 years of senior experience in both public and private market real-estate investment.

Over the year, the Audit Committee members assessed the way the Committee operates, the effective fulfilment

of its role, its rules and policies and tools available. They consider it adequate to perform their role and to ensure

good governance of the Company. During their meeting held on November 2, 2023, no change was requested.

During the financial year 2023, the Audit Committee held six meetings, where all committee members were present,

except for one meeting during which one member was absent due to personal reasons.

ESG COMMITTEE

GRI 2-14

The ESG Committee is responsible for the following matters:

• 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;

• making recommendations to the Board on incentive compensation plans and equity-based plans;

• submitting proposals to the Board on the remuneration of members of the Senior Management;

• 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;

• identifying candidates qualified to serve as members of the Board and executive officers;

• recommending candidates to the Board for appointment by the General Meeting or for appointment

by the Board to fill interim vacancies on the Board;

• facilitating the evaluation of the Board and reporting to the Board on all matters relating to

remuneration (including, for example, on internal pay disparity);

• 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;

• overseeing the Environment, Social and Governance (ESG) strategy of the Company and monitoring

the completion of the ESG objectives;

• reviewing any sustainability report filed by the Company;

• assisting the Board in reviewing and assessing the Company’s ESG risks;

• submitting a list of candidates to the Board on the appointment of new directors and Senior

Management;

• 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;

• making an assessment about the independence of candidate directors; and,

• 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 operate. The committee is

composed of independent non-executive directors.

SHURGARD ANNUAL REPORT 2023

104

As of December 31, 2023, the ESG Committee consisted of four members: Frank Fiskers (chairperson), Padraig

McCarthy, Olivier Faujour and Muriel De Lathouwer, and all of whom are considered independent Board members.

During the financial year 2023, the ESG Committee held six meetings where all committee members were present,

except for one meeting during which one member was absent due to personal reasons.

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, 2023, the Real Estate Investment Committee consisted of four members: Z. Jamie Behar

(chairperson), Frank Fiskers, Olivier Faujour, and Tom Boyle. Olivier Faujour and Frank Fiskers are considered

independent Board members.

During the financial year 2023, the Real Estate Investment Committee held five meetings, where all committee

members were present, except for one meeting during which one member was not present due to personal reasons.

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.

Directorships and Shurgard shares held by Board members

As of December 31, 2023, Senior Management owned the following numbers of shares, adding up to 283,134 shares

or 0.29% of the total share capital.

Name

Position

Mandates

Shurgard shares owned

Marc Oursin Chief Executive Officer CAG23 Capital 137,092

Jean Kreusch Chief Financial Office Transforming Talent sprl, Sports Abroad asbl 86,521

Duncan Bell Chief Operating Officer No other directorship 15,173

Ammar Kharouf

General Counsel and VP

Human resources

No other directorship 44,348

Isabel Neumann Chief Investment Officer Belfius Bank & Insurance 0

SHURGARD ANNUAL REPORT 2023

105

The members of the Senior Management team must 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 Isabel Neuman, this five-year period began at the time of the Company’s IPO in

2018. These requirements were satisfied by the members who were present in 2018 well before the five-year

period. For Isabel Neuman, this period began when she started in 2022 and therefore she has until 2027 to comply

with this requirement.

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 Companies (Guernsey) Law,

2008 (as amended) and the Company’s Corporate Governance Charter, 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 on the 14th day before the General

Meeting of Shareholders at 24 hours London 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 2023, the Annual General Meeting of Shareholders took place on May 10, 2023 (further information can be found

on 2023 Annual General Assembly | Shurgard Investor Relations).

STATUTORY AUDITOR

During the financial year 2023 up to May 10, 2023, 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 and with

registered office at 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). As a result

of the migration to Guernsey, at the AGM on May 10, 2023, shareholders resolved to appoint Ernst & Young LLP,

of Royal Chambers, St Julian’s Avenue, St Peter Port, Guernsey as independent auditor of the Company.

Audit fees in 2023 were €906,667 for the audits of consolidated and statutory financial statements of the Company

and its subsidiaries.

SHURGARD ANNUAL REPORT 2023

106

7.2 BUSINESS ETHICS AND 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.

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 (see our group-wide

non-discrimination and anti-harassment policy).

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, and 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

SHURGARD ANNUAL REPORT 2023

107

ADVOCACY AND STAKEHOLDER ENGAGEMENT

The group is part of local trade associations for self storage. In 2023 the total amount of the membership fees

across the group was around €32,000.

Association expenditures

2023

CISS (France) €6,600

NSSA (The Netherlands) €6,760

Self Storage Association UK (UK) £8,550

Self Storage Association (Sweden) SEK16,000

VDSU (Germany) €3,300

Belgian Self Storage association (Belgium) €2,100

Self Storage Association Denmark (Denmark) DKK12,500

GRI 2-14 / 2-28

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 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 make an annual

declaration relating to conflicts of interest. In addition, in 2023, our employees participated in online training about

anti-bribery as part of our Code of conduct refreshment training.

In 2023, no cases of corruption or bribery were reported. There were no legal proceedings against Shurgard or its

employees and no confirmed incidents of contracts with business partners being terminated.

GRI 205-1 / 205-2 / 205-3

SHURGARD ANNUAL REPORT 2023

108

COMMUNITY CONTRIBUTION

Shurgard encourages employees’ participation in supporting the community and charity organizations. Shurgard

realizes employee giving is 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 INTEREST

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.

POLITICAL CONTRIBUTIONS

Shurgard did not make any contributions to or expenditures for political campaigns or organizations, lobbying, tax-

exempt entities, or other groups whose role is to influence political campaigns or public policy and legislation in

the reporting year.

(GRI 415-1)

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 closed 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 2023, 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. As of 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

SHURGARD ANNUAL REPORT 2023

109

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 2023, all employees participated in an online training course about whistleblowing as part of our code of conduct

refreshment training.

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 2023, Shurgard knows of no cases in which freedom of association or the right to collective bargaining have

been jeopardized or even breached. As of December 31, 2023, 69% of our employees are covered by the collective

bargaining agreement.

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 6.4 Encouraging ESG best-practices in our supply chain.

GRI 2-30 / 407

7.3 DATA AND CYBER SECURITY

In an era characterized by increased reliance on digital technologies and data, cybersecurity has become a

paramount concern for organizations worldwide. As cyber threats continue to evolve in sophistication and

frequency, safeguarding sensitive information and ensuring the resilience of digital infrastructure have never been

more critical. For us at Shurgard, cybersecurity is not merely an IT concern but a collective responsibility that spans

across all levels of the organization.

To protect its information and systems, Shurgard takes a defense-in-depth approach described below.

RISK ASSESSMENT AND MANAGEMENT

Shurgard conducts comprehensive risk assessments to identify potential vulnerabilities and threats. By

understanding the specific risks we face, Shurgard can prioritize efforts and allocate resources effectively.

SECURITY POLICIES AND TRAINING

Establishing clear and robust cybersecurity policies is essential. Equally important is ensuring that employees are

well-informed and trained to adhere to these policies. Regular cybersecurity training and awareness programs

conducted yearly help reduce human error, which is a common entry point for cyberattacks. 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. In the financial year 2023, all employees participated in online

cybersecurity training, and phishing simulation exercises were designed to securely test user behavior and increase

employees’ awareness.

SHURGARD ANNUAL REPORT 2023

110

REGULAR SOFTWARE UPDATES AND PATCH MANAGEMENT

We make sure to execute regular software updates and patch management. Cybercriminals often exploit

vulnerabilities in outdated software. We have a systematic process for applying security patches and updates to all

software and systems promptly.

FIREWALLS

Our firewall in place acts as a barrier that monitors and filters incoming and outgoing network traffic. This helps

identify and block suspicious activities, providing an additional layer of defense.

INCIDENT RESPONSE PLAN

Having a well-defined incident response plan in place enables us to react swiftly and effectively in the event of a

cybersecurity breach. We have a plan in place that outlines steps for detection, containment, investigation,

communication, and recovery. 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 when dealing with incidents to continuously improve our

activities. We look to increase stability through a better understanding and proactive management of our cyber

security risks.

Regular Security Audits and Testing

Shurgard regularly conducts security audits, vulnerability assessments, and penetration testing that help us

proactively identify weaknesses and vulnerabilities that need attention.

CLOUD SECURITY

Our transition to cloud-based services and ensuring cloud security has become paramount. Employing strong

encryption, access controls, and monitoring in the cloud environment is essential for our organization and we have

steps in place to guarantee security on that front.

BUSINESS CONTINUITY AND DISASTER RECOVERY

Preparing for cyber incidents involves not only preventing them but also planning for their aftermath. Robust

business continuity and disaster recovery plans ensure that critical operations can continue in the face of a cyber

incident.

In today's digital landscape, cybersecurity is a dynamic and ongoing effort. By implementing these fundamental

cybersecurity practices, we significantly reduce our risk exposure, protect our data, and maintain the trust of our

stakeholders. Moreover, staying vigilant and adaptable in the face of evolving threats is essential to achieving the

long-term cybersecurity resilience we are striving for. In 2023, we have performed a cyber incident simulation

facilitated by Marsh. It allowed us to practice making swift decisions with incomplete information against time

constraints and testing the knowledge of existing security incident responses. As takeaways of this exercise, we

concluded that : (i) communications to take place via messengers for cyber incidents; (ii) cyber-crime awareness

to be done via simulation emails (Phishing) every quarter; (iii) cyber security to be included in project management

processes; (iv) agreements were reached on key decisions; (v) business impact was minimal. The Board of Directors

have been informed of the simulation and agreed on the procedure, which would trigger notification to the Board.

This way, our governing body stays informed on the most important security issues.

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7.4 OUR “ETHICS & GOVERNANCE” FUTURE COMMITMENTS

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8. CSRD, EU TAXONOMY, GRI AND EPRA

Shurgard prepares its Sustainability Report following international regulations, guidelines and references.

Amongst others, a specific reporting is prepared according to the Global Reporting Initiative (GRI), the European

Public Real Estate (EPRA) Best Practice Recommendations on Sustainability Reporting and the EU taxonomy. In

addition, Shurgard is committed to delivering transparent and qualitative reporting, and will apply the Corporate

Sustainability Reporting Directive (CSRD) rules for the first time in the 2024 financial year, for its reports

published in 2025.

8.1 CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD)

On January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new EU

directive modernizes and strengthens the rules concerning the social and environmental information that

companies have to report. The new rules will ensure that investors and other stakeholders have access to the

information they need to assess the impact of companies on people and the environment, and for investors to

assess financial risks and opportunities arising from climate change and other sustainability issues.

Shurgard is committed to delivering transparent and qualitative reporting and will apply the new rules for the

first time in the 2024 financial year, for its reports published in 2025.

To ensure we are ready for the new regulation, we have mandated a consulting firm to perform a readiness

assessment, bridging our actual disclosures to the CSRD requirements. We are working closely with all

departments to enhance our data collection to meet the new disclosure requirements.

8.2 EU TAXONOMY

EU TAXONOMY PERFORMANCE SUMMARY

Compared to prior year, we were able to increase our enabling green investments (e.g., LED, solar panels, BMS)

to c. €6 million in 2023 (from c. €2 million the previous year), while the updated proportion of assets in our

portfolio associated with an EPC “A or A+” and the higher non-eligible expenses related to our IT infrastructure,

intangibles and IT equipment impacted the EU Taxonomy KPI’s negatively.

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.

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The EU Taxonomy defined six environmental objectives:

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 concluded that

Shurgard should also not be considered to be a professional developer or construction company for the purpose

of the EU Taxonomy.

As such, 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 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 or solar panels, 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 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

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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.

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.

In these cases, we cannot reliably obtain the required evidence at the time of this report that a specific activity

is complied with. This is the case for instance for assets recently acquired. When this occurs, we 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 2023, Shurgard incurred capital expenditure 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 energy efficiency equipment:

The substantial criteria are met when the activity respects nationally defined measures implementing the

EU Directive 2010/31/EU. In 2023, Shurgard finalized its project to replace old lighting bulbs with energy

efficient LEDs and continued investing in the installation of heat pumps in several buildings, replacing e.g.,

gas heating. This program is aligned with the requirements outlined in the TSC.

• 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and

controlling energy performance of buildings:

During 2023, Shurgard invested in a building management system to operate its stores in an optimal way,

through online centralized monitoring, metering and control of utilities and devices to lower consumption

(heating, ventilation, etc.). It also comes with consumption analytics and alerts on unusual consumptions.

These investments are aligned with climate change mitigation TSC’s.

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• 7.6 Installation, maintenance and repair of renewable energy technologies:

Throughout 2023, Shurgard invested in the installation of renewable energy technologies, usually taking

the form solar panels, which is an enabling activity contributing 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 requires 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.

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 already been 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 2023, we performed a physical climate risk assessment of our entire portfolio of stores. We refer to the section

4.2 Resilience of properties to climate risk. 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 is in a 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 makes 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 types of CapEx, both can be reported under

CCM.

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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.

Other delegated acts: water, circular economy, pollution, and biodiversity – substantial criteria

In June 2023, the European Commission published the Taxonomy Delegated Acts with criteria for the remaining

four environmental objectives (circular economy, water and marine resources, pollution prevention and control,

and biodiversity and ecosystems), and additional criteria for climate. We reviewed Shurgard’s economic activities

and noted that the only activity carried out by Shurgard, in the real estate sector, that would be contributing

significantly to these new objectives was 7.2 “Renovation of existing buildings”, for its contribution to the circular

economy objective. The TSC’s of the circular economy objective aims at ensuring that (i) construction and

demolition waste generated by the renovation is treated in accordance with Union waste legislation and the full

checklist of the EU Construction and Demolition Waste Management Protocol, (ii) the life cycle Global Warming

Potential (“GWP”) of the building’s renovation works has been calculated for each stage in the life cycle, (iii)

construction designs and techniques support circularity via the incorporation of concepts for design for

adaptability and deconstruction, (iv) at least 50% of the original building is retained and (v) the use of primary

raw material in the renovation of the building is minimized through the use of secondary raw materials. As we

did not renovate existing buildings in 2023, that would comply with the definition and applicable requirements

for major renovations, we concluded that no alignment is expected on these new environmental objectives.

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 2023, 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 properties 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.

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.

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117

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

inquire about the business practices of our suppliers on a regular basis, to ensure they align 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 three 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.

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.

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.

EU Taxonomy turnover APM (€ thousands) Notes

31/12/2023 31/12/2022

Rental revenue 5,12 312,550 289,380

Other real estate revenue 5,12 2,769 2,383

Ancillary revenue, excl. other real estate revenue 5,12 8,699 9,211

Insurance revenue 5,12 33,683 32,075

Other revenue 5,12 222 2,241

Turnover considered for EU Taxonomy denominator 357,923 335,290

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Total EU taxonomy turnover is €357.9 million, of which €105.4 million is aligned (29.5%), €209.9 million is eligible

but not aligned and €42.6 million is not eligible. All of the EU Taxonomy-aligned revenue is coming from its

substantial contribution to Climate Change Mitigation. The aligned proportion remained relatively stable

compared to last year (from 32.5% in 2022 to 29.5% in 2023).

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 2023,

the total CapEx considered for EU Taxonomy amounts to €186.0 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):

In total, we concluded that 97.8% 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.

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

FY2023

Taxonomy-

aligned

proportion

FY2022

Enabling (E)

Transitional

(T) activity

A. Taxonomy Eligible activities

315,319

88.1%

29.5% 32.5%

A.1 Taxonomy Aligned activities 105,421

29.5%

29.5% 32.5%

7.7 - Acquisition and ownership of

buildings

105,421

29.5%

0.0%

0.0% 0.0%

0.0% Y

29.5% 32.5%

A.2 Taxonomy non-Aligned activities

209,898

58.6%

7.7 - Acquisition and ownership of

buildings

209,898

58.6%

B. Taxonomy non-Eligible activities 42,604

11.9%

Insurance revenue

33,683

9.4%

Ancillary revenue, excl. other real

estate revenue

8,699

2.4%

Other revenue

222 0.1%

A+B Total Turnover 357,923

100.0%

29.5% 32.5%

Substantial contribution

Do not significant harm

EU Taxonomy CapEx APM (€ thousands) Notes

31/12/2023 31/12/2022

Acquisition of investment property

15 67,336 76,310

Capital expenditure on investment property 15 113,817

112,577

Addition of investment property ROU assets 15

833 12,001

Investment property subtotal 181,986 200,888

Additions of PP&E (IAS 16, IFRS 16) 17 740 577

Additions of intangible assets (IAS 38) 17

3,304 2,654

PP&E and intangible assets subtotal 4,044 3,231

CapEx considered for EU Taxonomy denominator 186,030

204,119

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119

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”. 15.6% of our CapEx

was assessed to be aligned with the Climate Change Mitigation objective.

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:

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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, ERP)”.

• 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.

Based on the above, we concluded that 73.0% 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 including ERP, 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. 24.5% of our OpEx was assessed as aligned with the

Climate Change Mitigation objective.

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The decrease compared to the prior year (-5.9pp) is mainly a result of the revised proportion of buildings with

an EPC below “A” in our portfolio, as well as higher non-eligible expenses related to intangible assets, IT

equipment and datacenter.

8.3 BASIS OF THE SUSTAINABILITY REPORT

This Sustainability Report of Shurgard Self Storage Ltd presents the quantitative and qualitative information

needed to understand its material sustainability issues for the calendar year 2023. 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 of 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 cooperated with Evora Global Ltd who 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 chapter 8.7 “Assurance Summary Statement” in

this document.

GRI 2-5

MATERIALITY ASSESSMENT

In 2023, Shurgard conducted an internal double materiality assessment to identify and select the most significant

social, environmental and governance issues. Further information can be found in the chapter “3. Materiality and

risk assessment” in this document.

GRI 3-1

CONTACT

For any question or comment on the published content of this report, please contact:

investor.relations@shurgard.co.uk

GRI 2-1

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8.4 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 2023.

STATEMENT OF USE

Shurgard Self Storage Ltd has reported the information cited in this GRI content index for the period January 1,

2023 to December 31, 2023 with reference to the GRI Standards.

The index is attached as an appendix, available on our investor relations website or upon request.

GRI 1-7

8.5 EPRA SUSTAINABILITY REPORTING

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

Organization 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 operates. 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, a significant proportion of environmental data under measured

indicators has been estimated for the last three months in 2023 i.e., October 1, 2023 to December 31, 2023. There

are also a number of data gaps outside this period in 2022 and 2023 which needed to be estimated. To fill these

data gaps, we have used the following estimation methodology:

1. Short gap estimation: where data is absent for 15 days or less in a given month, we use the average

daily consumption from the available actual data for the remaining portion of that month to bridge the

gap.

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2. Trend adjusted consumption: in instances where complete data was available for the previous year

(2022), we calculated the year-on-year percentage change between periods of known data in both

2022 and 2023. This percentage change was then applied to the data we needed to estimate in 2023,

utilizing the corresponding period of data in 2022.

3. Average monthly consumption with no previous year: if there was insufficient previous data for the

above methods, we used the average consumption per day from 2022 or 2023 to fill in the remaining

gaps within each respective year.

This three-step methodology to estimate data is used to ensure that any estimates produced are in line with the

trends observed in the proportion of actual data on which they are based.

.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 of 2022. Shurgard now possesses the data for the entire calendar year. As

such, there is a difference between 2022 figures reported in last year’s report and 2022 figures reported

hereafter.

In addition, there has been a change in our methodology for classifying data as estimated, which we have applied

retrospectively to the previous year’s 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 the in-scope buildings’ gross internal floor area

into the relevant total consumption figure. 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.

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 100 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.

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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 does 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, 2023 to

December 31, 2023.

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8.6 EPRA AND GRI PERFORMANCE MEASURES

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

128

302

Elec-LfL

Like-for-like total electricity consumption

135

302

DH&C-Abs

Total district heating & cooling consumption

N/A

128

302

DH&C-LfL

Like-for-like total district heating & cooling consumption

N/A

135

302

Fuels-Abs

Total fuel consumption

N/A

129

302 Fuels-LfL Like-for-like total fuel consumption

N/A 135

302

Energy-Int

Building energy intensity

128, 135

305

GHG-Dir-

Abs

Total direct greenhouse gas (GHG) emissions

N/A 130, 137

305

GHG-Indir-

Abs

Total indirect greenhouse gas (GHG) emissions

127, 137

305 GHG-Int

Greenhouse gas (GHG) intensity from building energy

consumption

130, 137

303

Water-Abs

Total water consumption

132

303

Water-LfL

Like-for-like total water consumption

138

303

Water-Int

Building water intensity

132, 138

306

Waste-Abs

Total weight of waste by disposal route

133

306

Waste-LfL

Like-for-like total weight of waste by disposal route

138

N/A

Cert-Tot

Type and number of sustainably certified assets

140

Key:

Fully reported Partially reported –

Not reported × Not applicable N/A

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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 2022 and 2023. At

the time of report production, the International Energy Agency conversion factors relating to 2019 have been

applied to both 2022 and 2023 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, 2022 to December 31,

2023, 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 temporarily 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 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 Shurgard reports 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

142, 143

405

Diversity-Pay

Gender pay ratio

N/A

142, 143

405

Diversity-Pay

Equal pay analysis

N/A

142, 143

404

Emp-Training

Employee training and development

N/A

142, 143

404

Emp-Dev

Employee performance appraisals

N/A

142, 143

401

Emp-Turnover

New hires and turnover

N/A

144

403 H&S-Emp Employee health and safety N/A

N/A 144

416

H&S-Asset

Asset health and safety assessments

N/A

144, 145

416

H&S-Comp

Asset health and safety compliance

N/A

144, 145

413

Comty-Eng

Community engagement, impact assessments and development programs

N/A

145

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

146

2-10

Gov-Selec

Process for nominating and selecting the highest governance body

N/A

147

2-15

Gov-CoI

Process for managing conflicts of interest

N/A

148

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128

ENVIRONMENTAL PERFORMANCE MEASURES

Absolute Energy measures

2023 2022

GRI Topic

Standard

EPRA sBPR

Code

Metric Absolute Value % Estimated Coverage YoY Trend Absolute Value % Estimated Coverage

Own Offices

302-1 Elec-Abs

Consumption

39.1 17.4% 1 of 1 -16.1% 46.6 0.0% 1 of 1

% Renewable 100% 1 of 1 0.0% 100% 1 of 1

(Sub)metered exclusively to

tenants

0.0 0.0% O of O 0.0 0.0% O of O

302-1 Energy Total energy consumption 39.1 17.4% 1 of 1 -16.1% 46.6 0.0% 1 of 1

302-3 Energy-Int Energy intensity 23.7 1 of 1 -16.0% 28.2 1 of 1

Owned Assets

302-1 Elec-Abs

Consumption

15,949.1 18.0% 248 of 276 -7.3% 17,205.9 2.9% 249 of 266

% Renewable 100% 248 of 276 0.0% 100% 249 of 266

(Sub)metered exclusively to

tenants

0.0 0.0% O of O 0.0 0.0% O of O

302-1 DH&C-Abs

Consumption

2,425.7 28.7% 34 of 34 9.2% 2,220.8 0.0% 34 of 34

% Renewable 0% 34 of 34 0.0% 0% 34 of 34

(Sub)metered exclusively to

tenants

0.0 0.0% O of O 0.0 0.0% O of O

302-1 Fuels-Abs

Consumption

4,175.0 22.6% 68 of 68 -10.7% 4,674.2 3.2% 89 of 89

% Renewable 54% 68 of 68 -3.6% 56% 89 of 89

(Sub)metered exclusively to

tenants

0.0 0.0% O of O 0.0 0.0% O of O

302-1 Energy Total energy consumption 22,549.8 20.0% 248 of 276 -6.4% 24,100.9 2.7% 249 of 266

302-3 Energy-Int Energy intensity 12.0 248 of 276 -7.0% 12.9 249 of 266

Data notes for absolute energy: All reported energy totals are in MWh, and energy intensity is reported in kWh/sqm Gross Internal Area (“GIA”). We have been able to report fuel

consumption for all 68 properties for which we purchase fuels and 34 properties for which we purchase district heating. We have also been able to report electricity data for all

248 out of a total 276 properties. Please note that Shurgard does not have any tenants, so tenant consumption is zero.

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Narrative on performance for OT absolute energy: Total Shurgard obtained electricity for stores has decreased by 7.3%, reflecting the effect of our roll-out of energy efficiency

measures such as our LED program. Shurgard obtained consumption of district heating has increased by 9.2%. This can be attributed to a handful of assets that have shown an

increase in consumption, and as District Heating represents a small percentage of consumption across the portfolio, any increase can have an outsized impact on performance,

which represents a reversion to 2020 consumption levels after an increase in consumption last year. Consumption of gas decreased by 10.7% due to the ongoing success of our

scheme to replace gas-fired boilers with electric heat pumps across the portfolio 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

2023 2022

GRI Topic

Standard

EPRA sBPR Code Metric

Absolute Value Coverage YoY Trend Absolute Value Coverage

Own Offices

305-2 GHG-Indir-Abs

Scope 2 Emissions

(Location Based)

5.7 1 of 1 -16.0% 6.8 1 of 1

Scope 2 Emissions

(Market Based)

0.0 1 of 1 0.0% 0.0 1 of 1

305-4 GHG-Int Scope 1+2 intensity 3.5 1 of 1 -16.0% 4.1 1 of 1

Owned Assets

305-1 GHG-Dir-Abs

Scope 1 Emissions

(Location Based)

763.7 68 of 68 -10.5% 853.2 89 of 89

Scope 1 Emissions

(Market Based)

350.3 68 of 68 -7.1% 377.1 89 of 89

305-2 GHG-Indir-Abs

Scope 2 Emissions

(Location Based)

2,874.1 248 of 276 -1.6% 2,920.4 249 of 266

Scope 2 Emissions

(Market Based)

608.6 248 of 276 11.0% 548.5 249 of 266

N/A GHG

Scope 1+2 Emissions

(Location Based)

3,637.8 251 of 276 -3.6% 3,773.6 249 of 266

Scope 1+2 Emissions

(Market Based)

958.9 251 of 276 3.6% 925.7 249 of 266

305-4 GHG-Int

Scope 1+2 intensity

(Location Based)

1.94 251 of 276 -4.4% 2.03 249 of 266

Scope 1+2 intensity

(Market Based)

0.51 251 of 276 2.7% 0.50 249 of 266

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 68 properties for which we purchase fuels. We have also been able to report Scope 2 GHG emissions data for 248 of 276 properties, which includes

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131

the 34 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.

Narrative on performance for absolute GHG emissions: Total Shurgard obtained Scope 1 GHG emissions have decreased by 10.5%, as we continue 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

7.1%. Shurgard obtained Scope 2 (location-based) emissions have reduced by 1.6%, 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

2023 2022

GRI Topic

Standard

EPRA sBPR

Code

Metric Absolute Value % Estimated Coverage YoY Trend Absolute Value % Estimated Coverage

Own Offices

303-5 Water-Abs

Shurgard -obtained water

60.3 0.1 1 of 1 6.1% 56.9 0.9 1 of 1

Tenant-obtained

water

0.0 0% 0 of 0 0.0 0% 0 of 0

Total-obtained water 60.3 0.1 1 of 1 6.1% 56.9 0.9 1 of 1

303-5 Water-Int

Water intensity for total-

obtained water

0.0 1 of 1 -5.8% 0.0 1 of 1

Owned Assets

303-5 Water-Abs

Shurgard obtained water

15,880.1 0.2 221 of 276 -43.9% 28,307.3 0.1 218 of 266

Tenant-obtained water 0.0 0% 0 of 0 0.0 0% 0 of 0

Total-obtained water 15,880.1 0.2 221 of 276 -43.9% 28,307.3 0.1 218 of 266

303-5 Water-Int

Water intensity for total-

obtained water

0.0 221 of 276 -44.0% 0.0 218 of 266

Data notes for absolute water: Water consumption is reported in cbm (“cubic meter”) and water intensity is reported in cbm/sqm GIA. We have been able to report water usage

for 221 of 276 properties. Please note that Shurgard does not have any tenants, so tenant consumption is zero.

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 consumption has shown a significant reduction in 2023, which may be linked to a number of water leaks over the 2022 period and subsequent installation of leak

detection equipment in 2023 to mitigate this problem moving forwards.

GRI 303-5

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Absolute Waste Measures

2023 2022

GRI Topic

Standard

EPRA sBPR

Code

Metric

Absolute Value Absolute Proportion YoY Trend Absolute Value

Absolute

Proportion

Own Offices

306-4

Waste-Abs

Recycled 3.1 56.1% 90.4% 1.6 63.9%

306-5 Incinerated (with and without energy recovery) 2.4 43.9% 163.8% 0.9 36.1%

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% 0.0 0.0%

Total tenant-obtained waste 0.0 0.0% 0.0 0.0%

306-3 Total 5.5 1.0 117% 2.5 100%

Coverage of applicable properties 1 of 1 1 of 1

Owned Assets

306-4

Waste-Abs

Recycled 725.8 37.7% -19.4% 900.7 47.4%

306-5 Incinerated (with and without energy recovery) 1,197.7 62.3% 19.9% 999.3 52.6%

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% 0.0 0.0%

Total tenant-obtained waste 0.0 0.0% 0.0 0.0%

306-3 Total 1,923.5 100% 1.2% 1,900.0 100%

Coverage of applicable properties 251 of 251 259 of 259

Data notes for absolute waste: All waste totals are reported in tons. Waste for the final quarter, October 1, 2023 to December 31, 2023, has been estimated. Please note that

Shurgard does not have any tenants, so tenant waste is zero.

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134

Narrative on performance for absolute waste: Waste data is gathered for 251 of 276 properties in the portfolio where Shurgard has waste management contracts. Absolute

waste has increased slightly by 1.2%. The increase in overall waste volumes is due to an increase in general waste seen at a number of our properties. Total volumes of absolute

recycled waste have decreased significantly by 19.4%, as minimum standards are in place to ensure that all cardboard at stores is recycled, and plastic use 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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Like-for-Like Energy Measures

2023 2022

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

15,164.6 17.1% 236 of 236 -10.2% 16,892.5 0.1% 236 of 236

% Renewable 100% 236 of 236 0.0% 100% 236 of 236

(Sub)metered exclusively to

tenants

0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0

302-1 DH&C-Abs

Consumption

2,382.1 29.0% 33 of 33 8.1% 2,202.9 0.0% 33 of 33

% Renewable 0.0% 33 of 33 0.0% 0.0% 33 of 33

(Sub)metered exclusively to

tenants

0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0

302-1 Fuels-Abs

Consumption

4,089.6 21.0% 106 of 106 -9.1% 4,497.2 1.8% 106 of 106

% Renewable 55% 106 of 106 0.2% 55% 106 of 106

(Sub)metered exclusively to

tenants

0.0% 0.0% 0 of 0 0.0% 0.0% 0 of 0

302-1 Energy Total energy consumption 21,636.3 19.2% 239 of 239 -8.3% 23,592.5 0.4% 239 of 239

302-3 Energy-Int Energy intensity 12.0 239 of 239 -8.3% 13.1 239 of 239

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 239 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 reporting period and for which the majority is classified as actual data. We therefore include electricity data from 236 of these properties, gas data for 106

properties, and district heating data for 33 properties.

Note that here and throughout the like-for-like performance measures we do not include our support center 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.

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Narrative on performance for like-for-like energy and energy intensity: Like-for-like electricity has fallen by 10.2%. This is a relatively similar percentage to the trend observed

across the whole portfolio, which is mainly attributed to the continuing installation of efficiency measures. Gas consumption has decreased by 9.1% within the like-for-like portfolio,

reflecting the impact of our efficiency measures and gas replacement program as mentioned previously. Almost all our stores with district heating systems fall into the like-for-

like group, so the trend displayed here is very similar to that displayed in the absolute data table.

We have used the floor area of in-scope like-for-like assets for the relevant utility under our 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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Like-for-Like GHG Emissions Measures

2023 2022

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)

413.3 106 of 106 -8.7% 452.5 106 of 106

Scope 1 Emissions (Market Based) 334.8 106 of 106 -9.1% 368.4 106 of 106

305-2 GHG-Indir-Abs

Scope 2 Emissions (Location Based)

2,165.8 236 of 236 -6.5% 2,316.6 236 of 236

Scope 2 Emissions (Market Based) 597.7 236 of 236 9.8% 544.1 236 of 236

N/A GHG

Scope 1+2 Emissions (Location Based)

2,579.1 239 of 239 -6.9% 2,769.1 239 of 239

Scope 1+2 Emissions (Market Based) 932.5 239 of 239 2.2% 912.5 239 of 239

305-4 GHG-Int

Scope 1+2 intensity (Location Based)

1.4 239 of 239 -6.9% 1.5 239 of 239

Scope 1+2 intensity (Market Based) 0.5 239 of 239 2.2% 0.5 239 of 239

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 239

properties included in our like-for-like reporting for energy, 106 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 in-scope like-for-like assets for the relevant utility under our management as our intensity

normalization measure. 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

2023 2022

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

15,544.6 20.3% 212 of 212 -44.7% 28,132.4 7.3% 212 of 212

Tenant-obtained

water

0.0 0.0% 0 of 0 0.0 0.0% 0 of 0

Total-obtained

water

15,544.6 20.3% 212 of 212 -44.7% 28,132.4 7.3% 212 of 212

303-5 Water-Int

Water intensity for

Shurgard-obtained

water

0.010 212 of 212 -44.7% 0.018 212 of 212

Data notes for like-for-like water: Water consumption is reported in cbm, and water intensity is reported in cbm/sqm GIA. The 212 assets included are those properties which

have been owned and operated by Shurgard for the complete 24-month reporting period and for which the majority is classified as actual data. We will continue to expand the

coverage of this measure in 2024 with the ongoing 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 significant

decrease in water consumption shown in this subset is like that displayed in the absolute totals table. As previously stated, this decrease is largely linked to a number of water

leaks over the 2022 period and subsequent installation of leak detection equipment in 2023 to mitigate this problem moving forwards.

GRI 303-5

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Like-for-Like Waste Measures

2023 2022

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 700.6 38.2% -21.1% 887.8 47.7%

306-5

Incinerated (with and without energy

recovery)

1134.2 61.8% 16.4% 974.3 52.3%

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% 0.0 0.0%

Tenant-obtained waste 0.0 0.0% 0.0 0.0%

306-3 Total 1834.8 100% -1.5% 1862.1 100%

Coverage of applicable properties 241 of 241 241 of 241

Data notes for like-for-like waste: All waste totals are reported in tons. Waste for the final quarter, October 1, 2023 to December 31, 2023, 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 241 properties in the portfolio where Shurgard has waste management contracts for

the complete 24-month reporting period. This subset of assets has been slightly reduced since 2021 due to more stringent data quality thresholds for inclusion. Like-for-like waste

has decreased by 1.5% in total across this subset of properties due to the large reduction in recycled waste. 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

SHURGARD ANNUAL REPORT 2023

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Type and number of sustainably Certified Assets

2023

2022

GRI Topic

Standard

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)

N/A Cert-Tot

EU Energy Performance Certificate

253 90.7% 248 93.1%

BREEAM - In Use

Pass

13 5.1% 13 5.3%

Acceptable

1 0.3% 0 0.0%

Good

29 10.2% 27 9.8%

Very Good

6 2.4% 7 3.0%

Excellent

1 0.3% 1 0.3%

Outstanding

0 0.0% 0 0.0%

BREEAM – New Construction

Pass

0 0.0% 0 0.0%

Good

0 0.0% 0 0.0%

Very Good

4 1.6% 2 0.9%

Excellent

7 3.5% 7 3.7%

Outstanding

1 0.5% 1 0.5%

EU ENERGY PERFORMANCE CERTIFICATES 2023

EPC Score A B C D E F G

N/A

Number of Assets 180 14 34 16 2 0 7

% of portfolio (by floor

area)

64.8% 5.6% 11.5% 5.4% 0.9% 0.0% 2.5% 9.3%

Narrative on performance for green building certificates: EU energy performance certificates are not mandatory for all Shurgard's properties, but we make sure that all new

developed and acquired stores obtain EPC's. We plan not to have any stores with rating lower than E by 2027 and lower than D by 2030. 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 where feasible.

SHURGARD ANNUAL REPORT 2023

141

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.

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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 social performance measures.

Employee Gender Diversity

GRI Topic

Standard

EPRA sBPR

Measure

Indicator

2023

2022

Female

Male

Female

Male

405-1

Diversity-

Emp

Employees in

the

organization’s

Board

of Directors

33.3% 67.7% 27.3% 72.7%

Employees in

the

organization’s

senior

management

25.0% 75.0% 25.0% 75.0%

All employees 42.4% 57.6% 42.3% 57.7%

Narrative on performance:

Shurgard believes that a diverse perspective is key to success. We have increased our

female representation on the Board, which stands at 33.3%.

GRI 405-1

Gender Pay Ratio

GRI Topic

Standard

EPRA sBPR

Measure

Indicator

2023

2022

Mean

405-2 Diversity-Pay

Mean (average) percentage by

which female pay is lower than

male pay.

-3.3% -5.0%

Narrative on performance:

For all in-store employees, Shurgard discloses the mean percentage pay gap between

female and male pay.

The gender pay ration has improved compared to our 2022 disclosures and now

represents -3.3% in 2023. We believe that this is reflective of our continual

commitment to maintaining a workplace that is free from discrimination.

GRI 405-2

Equal Pay Analysis 2023

Employee Level

Average Salary Female Average Salary Male

Executive level (base salary only) €320,000 €301,067

Executive level (base salary + other

cash incentives)

€640,000 €600,274

Management level (base salary only) €91,418 €89,847

Management level (base salary +

other cash incentives)

€110,564 €113,653

Data notes for equal pay analysis 2023: 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 2023:

We believe that our salary paid is reflective of our continued commitment to maintain

a workplace that is free from discrimination. Every year, we strive to provide an equal

balance for all employees.

GRI 405-2

SHURGARD ANNUAL REPORT 2023

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Gender Pay ratio for directors and employees

GRI

Topic

Stand

ard

EPRA

sBPR

Meas

ure

Indicator

Mean (average) percentage by

which female pay is lower than

male pay

2023

2022

405-2

Diversity

-Pay

The organization’s Board of

Directors

-13.6% -8.3%

Employees in the organization’s

Senior Management

6.3% 6.3%

All employees

-17.6% -15.1%

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 differentiation

between female and male functions, therefore, all differences are mandate specific.

GRI 405-2

Employee Training & Development

GRI

Topic

Standard

EPRA

sBPR

Measure

Indicator 2023 2022

404-1

Emp-

Training

Average hours of training

undertaken by employees

in the reporting period

(per FTE)

22.7 30.2

404-3

Emp-

Dev

% of total employees who

received regular

performance and career

development reviews

during the reporting

period

100.0% 100.0%

N/A

Average spent on training

per FTE in the reporting

period

€ 472.9 € 470.3

N/A

Total of hours of training

undertaken by all

employees in the

reporting period (overall)

15,986 21,641

Narrative on performance:

Participation in the Company’s learning and development program remained high

with 100% participation across the year. Our total training hours for 2023 amounted

to 15,986h, including first aid and fire emergency training in addition to all the new

joiners’ induction training and any other externally provided training deemed

important for the development of our employees.

Each in-store employee is required to complete a rigorous training program over the

course of their first four months employment. This 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 242 new employees over 2023 who all went through induction training.

SHURGARD ANNUAL REPORT 2023

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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

2023

2022

Number Rate Number Rate

401-1

Emp-

Turnover

New

employee

hires

242

33.8% 300 40.4%

Employee

turnover

267 37.3% 331 44.6%

Narrative on performance: There have been fewer new hires because an increasing

number of stores are partially or remotely managed, along with lower turnover

compared to last year.

GRI 401

Employee Health and Safety

GRI Topic

Standard

EPRA sBPR

Measure

Indicator 2023 2022

403-2 H&S-Emp

Injury rate 0.0% 0.0%

Lost day rate 0.3% 0.3%

Absentee rate 6.3% 5.8%

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 2023, we maintained our record of 0.0% injury rate for our employees. Our

absentee rate increased slightly in 2023.

GRI 403-1/ 403-2

Asset Health and Safety Assessments and Compliance

GRI Topic

Standard

EPRA sBPR

Measure

Indicator 2023 2022

416-1 H&S-Assets

% of assets for which

H&S impacts are

assessed or reviewed

35.5% 34.0%

416-2 H&S-Comp

Number of incidents of

non-compliance

with regulations and/or

voluntary standards

1 0

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 three-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 identified one instance of non-compliance with regulations

and/or voluntary codes.

GRI 416-1 / 416-2

SHURGARD ANNUAL REPORT 2023

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Community Engagement, Impact Assessments and Development Programs

GRI Topic

Standard

EPRA

sBPR

Measure

Indicator 2023 2022

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

mentioned earlier.

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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GOVERNANCE PERFORMANCE MEASURES

Composition of the Highest Governing Body

GRI Topic

Standard

EPRA sBPR

Measure

Indicator

2023 2022

2-9 Gov-Board

Number of executive board members

Number of independent board

members

6 6

Number of non-executive board

members

8 10

Average tenure on the governance body

3.7 years

4.1 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 nine members, one executive director

and eight 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 Independent Chairman, Ian

Marcus, leads the Board. The 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

2023 2022

2-10 Gov-Select

Composition of

the Board of

Directors

(Relevant for the reporting rules and did not change between 2022 and 2023 in

relation to the nomination and selection of the Directors; rules last reviewed

February 2023 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 six 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

SHURGARD ANNUAL REPORT 2023

148

Process for managing Conflicts of Interest

GRI Topic

Standard

EPRA sBPR

Measure

Indicator 2023

2-15 Gov-Col

Board of

Directors’

composition

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 interest, 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

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8.7 ASSURANCE SUMMARY STATEMENT ON SUSTAINABILITY PERFORMANCE MEASURES

ASSURANCE STATEMENT: AA1000

EVORA Global Limited (“EVORA”) was engaged by Shurgard Self

Storage Ltd (“Shurgard” or the “Company”) to provide

assurance of the Environmental sustainability performance

measures of their 2023 Sustainability Report (the “Report”) for the reporting period of January 1, 2023 to

December 31, 2023 for their owned assets.

This assured data is intended to be reported to GRESB 2024 assessment as well.

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 as well as GRESB criteria. The assurance was conducted via independent third party Markit Group Limited

(“IHS Markit”), engaged by EVORA.

Responsibilities

The Company has responsibility for ensuring the preparation of the Report. The EVORA Consultancy Team has

been appointed by the Company to support them in the data collection and analysis of the Report.

The EVORA Assurance Team (‘We’ / ‘Our’) engaged IHS Markit to conduct independent assurance on their behalf

and provide an opinion on the Report’s alignment with the Criteria for the defined reporting period, in all material

respects. The procedures selected depend on our judgment, including an assessment of the risks of material

misstatement or material non-compliance of the matter being audited. We conducted our engagement in

accordance with the AA1000AS.

Intended users

The intended users of this assurance statement are the Management of the Company, their stakeholders and

GRESB B.V.

Assurance standard and criteria

The assurance was conducted in accordance with AccountAbility’s AA1000 Assurance Standard 2020 v3

(AA1000AS), Type 2 at a moderate level of assurance.

The Report has been prepared by the Company in accordance with the EPRA Best Practice Recommendations for

Sustainability Reporting (sBPR) 2017 3rd Edition and GRESB (the “Criteria”).

Assurance scope

The scope of assurance covered the indicators outlined below pertaining to the owned assets for the reporting

period of January 1, 2023 to December 31, 2023 (collectively the ‘Subject Matter’):

Landlord managed and procured:

• Electricity Consumption (kWh)

• District Heating (kWh)

• Fuels Consumption (kWh)

• Water Consumption (m3)

• Greenhouse Gas (GHG) Emissions (tCO

2e) – Scope 1 and Scope 2 (location based)

• Waste (tonnes)

Intensity Calculations:

• Energy (kWh / m2)

• GHG (kgCO

2e/m2) – Scope 1 and Scope 2 (location based)

• Water (m3/m2)

SHURGARD ANNUAL REPORT 2023

150

Alignment check of the Company’s reporting against EPRA Best Practice Recommendations for Sustainability

Reporting (sBPR) 2017 3rd Edition.

Disclosures covered

This assurance report covers the Subject Matter relating to the underlying assets, as defined above which forms

part of the Company’s Report and will be reported to the GRESB 2024 assessment as well.

Methodology

The procedures conducted in performing our moderate assurance included:

• Performing a risk assessment, including considering internal controls relevant to the Company’s

preparation of the Report and associated data to inform further procedures

• Making inquiries, primarily of persons responsible for the preparation of the Report

• Understanding the Company’s activities covered within the scope of the Report.

• Applying analytical and other review procedures including assessing relationships between energy

and emissions data and other information under our scope

• Examination of source evidence including invoices, meter records, third-party reports for a select

sample of data

• Analyzing and inspecting on a sample basis, the key systems, processes and procedures and

controls relating to the collation, validation, presentation, and approval process of the information

included in the Report.

Use of our assurance statement

This report has been prepared for the management of the Company for the sole purpose for reporting on the

matters being assured in accordance with the defined Criteria. We agree that a copy of the report may be

provided to the Company’s stakeholders for this purpose.

We and IHS Markit disclaim any assumption of responsibility for any reliance on this report to any person or

users other than the Company, or for any purpose other than that for which it has agreed in writing and for

which it was prepared. Any reliance any third party may place on the report is entirely at its own risk.

Limitations

There are inherent limitations in performing assurance - for example, assurance engagements are based on

selective testing of the information being examined - it is possible that fraud, error or non-compliance may occur

and not be detected. An assurance engagement is not designed to detect all instances of non-compliance with

the established Criteria, as an assurance engagement is not performed continuously throughout the year and

the procedures performed are undertaken on a test basis. The conclusion expressed in this report has been

formed on the above basis.

Additionally, non-financial data may be subject to more inherent limitations than financial data, given both its

nature and the methods used for determining, calculating, and sampling or estimating such data.

A moderate or limited level assurance engagement is restricted primarily to inquiries and analytical procedures

and the work is substantially less detailed than undertaken for a high level or reasonable assurance engagement.

As such the level of assurance is lower than would be the case for a reasonable assurance engagement.

Note:

• GRESB has not yet released its 2024 assessment criteria but has confirmed that there are no

changes to the assurance requirements. This assurance would thus be valid for the Company’s

GRESB 2024 reporting as well.

• Shurgard reports actual environmental data for nine months (January 1, 2023 to September 30,

2023), and estimated data for the last three months of the year which is in line with the Criteria.

For GRESB reporting, Shurgard updates the last quarter's data to the actual data. This is in line

with the accepted procedures.

SHURGARD ANNUAL REPORT 2023

151

Independence and Competence

The assurance was conducted via IHS Markit independently. IHS Markit (now part of S&P Global) is a global

diversified provider of critical information, analytics, and solutions and has been working in the ESG space for

many years. IHS Markit’s ESG team has relevant assurance competencies and is highly experienced in

sustainability matters covering environmental, social, and economic aspects and is led by Certified Sustainability

Assurance Practitioner (CSAP) as certified by AccountAbility. IHS Markit has conducted this assurance

independently and impartially and in compliance with IHS Markit’s policies and procedures, including its Code of

Business Ethics that provide a framework relating to ethical conduct, conflict of interest and compliance with

law.

Findings conclusions and recommendations

Comments on AA1000 Accountability Principles:

Principle Observations, Findings & Recommendations

Inclusivity: actively identifying stakeholders

and enabling their participation in establishing

an organization’s material sustainability topics

and developing a strategic response to them.

An inclusive organization

accepts its

accountability to those on whom it has an

impact and to those who have an impact on it.

Shurgard has identified its priority stakeholders and actively engages

with them. The key stakeholder groups include employees, customers,

suppliers, investors, communities, regulatory bodies, communities.

Some of the engagement activities conducted in 2023 include:

- Employees: Satisfaction survey conducted in 2023

- Customers: Regular monitoring of feedback through various channels

including google reviews, Trustpilot etc.

Investors: Regular engagement through various modes including

investors days which happen at least once a month

- Suppliers: Supplier survey conducted in 2022 – where questions

pertaining to ESG policies are raised Communities – Community

program in place in countries across seven markets. Regulators:

Reports publications as required and feedback if there are any

questions.

Materiality: identifying and prioritizing the

most relevant sustainability topics, taking into

account the effect each topic has on an

organisation and its stakeholders.

A material topic is a topic that will substantively

influence and impact the assessments,

decisions, actions and performance of an

organiz

ation and/or its stakeholders in the

short, medium and/or long term

Shurgard has undertaken a comprehensive double materiality

assessment in 2023. Every year executive ESG committee meets to

discuss all the important and upcoming ESG trends from the

sector/business and stakeholders. In addition, a continual review is also

undertaken and is considered to determine any changes to the material

topics.

The assessment identified, refined, and assessed the various ESG factors

that affect the Shurgard business and/or stakeholders. The identified

issues span across the dimensions of Environment, social and

governance.

The process of determining materiality and relevance is documented

within the annual Sustainability report.

Responsiveness: an organization’s timely and

relevant reaction to material sustainability

topics and their related impacts.

Responsiveness is realized through decisions,

actions and performance, as well as

communication with stakeholders

Shurgard remains responsive to all the upcoming ESG demands as well

as to the stakeholders. The communication modes with the stakeholders

remain the same as described above.

Shurgard has an ESG Management Group which has multi-functional

expertise and includes representatives from HR, finance, ESG amongst

others to ensure a wide range of involvement from stakeholders across

the business. The ESG Management Group is positioned so that it can

respond as required to changing ESG demands. Above this group sits the

Executive Committee who are responsible for the sign-

off of ESG

objectives and the overarching ESG strategy.

Action plans are developed based on the result of the surveys and

engagement activities conducted and implemented to progress areas

which scored lower than desired.

To keep in line with the changing ESG demands and trends, Shurgard

has included many new frameworks and KPIs to monitor as part of their

SHURGARD ANNUAL REPORT 2023

152

Our unqualified opinion

Nothing has come to our attention that causes us to believe that:

• The company does not adhere to the principles of inclusivity, materiality, responsiveness and

impact as per the AA1000 Accountability Principles (2018).

• The Subject matter is not prepared in accordance with the EPRA Best Practice Recommendations

for Sustainability Reporting (sBPR) 2017 3rd Edition in all material respects, for the reporting period

Jan 2023 to 31

Dec 2023.

• The Subject matter is not prepared in accordance with the GRESB criteria by the Company in all

material respects, for the reporting period 1

Jan 2023 to 31

Dec 2023.

EVORA Global Limited, London, UK

Date: 26 February 2024

ESG performance. These include turnover, business travel, working on

the EU taxonomy, physical climate risk assessment to identify risks

amongst others

Impact: the effect of behavior, performance

and/or outcomes, on the part of individuals or

an organisation, on the economy, the

environment, society, stakeholders or the

organisation itself.

Material topics have potential direct and

indirect impacts — which may be positive or

negative, intended or unintended, expected or

realized, and short, medium or long term

Shurgard has defined ESG objectives, based on their impacts and

outlined within their ESG policy. These are reported within their annual

Sustainability report as well as other reporting including GRESB, EPRA,

ratings reporting like CSA, MSCI etc.

Metrics for measuring impact have been developed through various

mechanisms including advice from external sector specific consultants

and via the review of publicly available information i.e., from industry

bodies / and via GRESB where relevant.

Shurgard has been working very closely with the communities to

increase their positive social impact and included enhanced programs

and initiatives in 2023. These include offering storage space to social

communities in some markets, launched Shurgard academy last year for

increased training for the employees, increased monetary contribution

for their charity programs and many others.

SHURGARD ANNUAL REPORT 2023

153

REMUNERATION REPORT

PRELIMINARY NOTE

This Remuneration Report has been prepared in accordance with the principles provided for under the Company’s

Remuneration Policy. The Remuneration Policy can be found on the Company’s website (

Governance Documents

| Shurgard Investor Relations). There has been no derogation from the Remuneration Policy.

2023 PERFORMANCE HIGHLIGHTS

In 2023, the Company delivered another year of solid results and is well-positioned to deliver long-term value.

Under the leadership of our Senior Management, and with our Board’s oversight, the Company achieved

significant performance successes, including:

Record Property operating revenue

€357.7million

(+9.0% at CER)

EPRA NTA per share

€44.07

Dividend Per Share Growth

Record NOI

€237.2million

EPRA NTA per share growth

+8.4%

Same store NOI margin

67.6%

(+0.9pp at CER)

Total Investment property value (incl. IPUC)

€5.0billion (+11.3%)

Underlying EBITDA growth (at CER)

+8.4%

+65K SQM

Added through acquisitions, developments, and

redevelopments

Record Adjusted EPRA earnings

€158.4million

(+12.3% at CER)

ESG

Record Adjusted EPRA earnings per share

€1.76

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 2023

154

In addition, the Company’s stock and total return has consistently traded significantly higher than various indices

for the last five years.

Stock performance vs indices since IPO (Oct 2018)

Total performance, assuming reinvestment of dividends.

2023 COMPENSATION FRAMEWORK AND TARGETS FOR SENIOR MANAGEMENT

Senior Management compensation is a balance of fixed and variable compensation components and fringe

benefits aligned with market practice, such as company cars or allowances, as well as standard pension benefits.

We believe that the 2023 executive compensation is aligned with the Company’s strong performance, while also

recognizing the impact of significant macro-economic challenges the Company faced in the regions in which it

operates, and the individual contributions of each Senior Manager. The following is a summary of the ESG

Committee’s decision on the key components (fixed and variable) of the 2023 Senior Management compensation

program.

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. The ESG Committee sets annual incentive award targets, and these may

be increased or decreased in the future.

The actual awards approved by the ESG Committee are based on whether the targeted corporate performance

metrics described below have been achieved. The ESG Committee considers the recommendations of the Chief

Executive Officer in deciding whether other members of Senior Management have achieved individual and

Company goals. In addition, the ESG Committee will solicit the views of the Chairman and the Board, particularly

in relation to the performance of the Chief Executive Officer.

For the year ended December 31, 2023, compensation targets (and their respective weighting) determined by the

ESG Committee for all executives are described below. They ranged from 0% to 125% of an individual’s base

salary based on the performance of the Company and the performance of each respective individual (taking into

account both financial and non-financial criteria).

Shurgard; 123.6%

EURO STOXX 600; 57.4%

FTSE EPRA Nareit;

-1.0%

-40%

-10%

20%

50%

80%

110%

140%

170%

15/10/2018

15/12/2018

15/02/2019

15/04/2019

15/06/2019

15/08/2019

15/10/2019

15/12/2019

15/02/2020

15/04/2020

15/06/2020

15/08/2020

15/10/2020

15/12/2020

15/02/2021

15/04/2021

15/06/2021

15/08/2021

15/10/2021

15/12/2021

15/02/2022

15/04/2022

15/06/2022

15/08/2022

15/10/2022

15/12/2022

15/02/2023

15/04/2023

15/06/2023

15/08/2023

15/10/2023

15/12/2023

SHURGARD ANNUAL REPORT 2023

155

Executive position CEO All other executives

Amount of potential target 0%-125% of base salary 0%-125% of base salary

Revenue performance

All store 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.

2 More information about ESG targets is in our Sustainability Report available at

https://corporate.shurgard.eu/corporate-responsibility/reports-and-

publications.

2023 COMPENSATION DECISIONS

After considering the individual performances of each member of Senior Management, the solid results achieved

by the Company in 2023, the achievement of the short-term performance objectives described above, and the

individual contributions of each Senior Manager, the decisions made by the ESG Committee are as follows:

2023 CEO Compensation

The annual base salary for Mr. Oursin in 2023 was €500,000. This has remained unchanged since 2012.

Additionally, as indicated above, an annual cash bonus incentive award ranging from 0%-125% of his base salary

was set assuming the achievement of performance criteria, including individual performance. In recognition of

the performance of the Company in 2023 and his individual contribution, the ESG Committee approved in

accordance with the short term performance-based bonus program a cash bonus of €500,000, to be paid in

2024.

2023 Compensation for executives other than our Chief Executive Officer

2023 base salaries for Mr. Kreusch, Mr. Bell, Mr. Kharouf, and Ms. Neumann were €355,584, £250,000, €250,000,

and €320,000, respectively.

After considering the achievement of each of the 2023 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 2024, to the following executives: Mr. Kreusch, €350,000; Mr. Bell, £250,000;

Mr. Kharouf €250,000 and Ms. Neumann €288,000.

SHURGARD ANNUAL REPORT 2023

156

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

Short-term

performance-

based bonus

Option

awards

Marc Oursin

CEO

2023 500,000 52,000 500,000 938,325 1,990,325

1 : 2.61

2022 500,000 52,000 500,000 956,816 2,008,816

1 : 2.64

Jean Kreusch

CFO

2023 355,584 32,796 350,000 586,453 1,324,833

1 : 2.41

2022 355,584 32,796 350,000 598,010 1,336,390

1 : 2.44

Duncan Bell

COO

2023 287,448 26,100 287,448 469,163 1,070,159

1 : 2.41

2022 287,448

26,100 287,448 478,408 1,079,404

1 : 2.44

Ammar Kharouf 2023 250,000 13,099 250,000 469,163 982,262 1 : 2.73

General Counsel

2022 250,000 13,099 250,000 478,408 991,507 1 : 2.77

Isabel Neumann 2023 320,000 23,868 320,000 469,163 1,133,031 1 : 2.29

CIO

2022 320,000 36,841 107,000 478,408 942,249 1 : 1.64

1 The amounts for Mr. Bell are converted from pound Sterling. The original Sterling value was £250,000 for 2023. As a constant exchange rate, we took the

average exchange rate of 2023.

2 The amounts shown in this column for all named executives reflect contributions to their group insurance. It also includes 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 2023. As a constant exchange rate, we took the

average exchange rate of 2023.

4 The total value of the option award 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 in Note 32 “Share-based Compensation Expense” to the consolidated financial statements.

The total aggregate compensation for the members of the Senior Management team in the year ended

December 31, 2023 amounted to €6,500,610.

2024 COMPENSATION AND TARGETS

Historically, the base salaries of our Senior Managers have been relatively flat over the years with very infrequent

adjustments. For example, the salary of the CEO has not been adjusted since he took over the position in 2012.

Therefore, in 2023, the ESG Committee retained Willis Towers Watson to conduct an extensive compensation

review of our Senior Managers’ overall compensation package, and benchmark them with peer groups. Following

this review, the ESG Committee recommended to the Board that Senior Management base salaries be increased.

This decision will ensure the Company remunerates Senior Managers competitively compared to their peers and

is able to retain and recruit talent. The base salaries of the Senior Managers will be adjusted as follows, effective

as of January 1, 2024: Mr. Oursin €750,000, Mr. Kreusch €400,000, Ms. Neumann €400,000, Mr. Bell £300,000,

Mr. Kharouf €300,000.

In addition to the base salary increase, the ESG Committee determined that annual cash incentives can range

from 0% to 150% of a Senior Manager's annual salary for the year ending December 31, 2024. The awards will

be based on various Company-wide performance metrics and each Senior Manager’s individual performance as

described in the following table:

SHURGARD ANNUAL REPORT 2023

157

Executive position CEO All other executives

Amount of potential target 0%-150% of base salary 0%-150% of base salary

Revenue performance

All store growth 2024 vs 2023 above 7.5%

Same store growth 2023 vs 2022

0%-20% 0%-30%

NOI growth & Adj. EPRA earnings growth

Adj. EPRA earnings growth

All stores NOI margin % growth

0%-20% 0%-15%

Development & M&A (all new sqm)

2024 total added new sqm above 90,000 sqm

2025 total potential above 90,000 sqm (pipeline incl. M&A)

0%-15% 0%-50%

Other KPIs

Other projects

ESG

(based on GRESB rating)

Shurgard share, TSR benchmark vs peers

0%-45% 0%-55%

1 Weight per section varies per executive.

2 More information about ESG targets is in our Sustainability Report available at

https://corporate.shurgard.eu/corporate-responsibility/reports-and-

publications.

EQUITY COMPENSATION PLANS

The Company did not grant any equity compensation awards in 2022 and elected again not to grant any equity

compensation awards in 2023. Below is a summary of all outstanding equity compensation plans.

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.

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.

SHURGARD ANNUAL REPORT 2023

158

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;

• The stock options vesting were subject to customary service rules; and

• The exercise price of each stock option is €23.00.

Equity Compensation plan (2021)

The Company approved an equity compensation plan in 2021, which replaced all prior equity compensation plans.

Initial grants took place on August 2, 2021. The grant was intended to incentivize certain members of 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 60% of the stock options vesting three years after the date of grant, and

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, 2021, 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 23 and 32 “Share-

based payment reserve” and “Share-based compensation expense” in the Notes to the consolidated financial

statements.

The following table shows the grant of stock options held by each member of Senior Management for all

outstanding stock option plans, as of December 31, 2023.

SHURGARD ANNUAL REPORT 2023

159

Position Main conditions Financial year 2023

Plan Award date Vesting

date(s)

Expiration

date

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

690,000 - - 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

440,000

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

345,000 - - 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 330,000 - - 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 2023

160

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

2019 2020 2021 2022 2023

Senior Management remuneration

CEO 1,193,32 1,262,797 1,672,360 2,008,816 1,990,325

CFO 811,565 858,034 1,114,380 1,336,390 1,324,833

COO² 630,815 632,319 837,150 1,091,575 1,070,159

General Counsel 446,449 505,089 731,419 991,507 982,262

CIO N/A N/A 562,761 942,249 1,133,031

Company Performance

Property operating revenue growth

5.0% 5.5% 10.7% 11.0% 7.4%

Adj. EPRA earnings growth

8.1% 9.9% 11.0% 9.5% 10.3%

Average share price per year (€)

29.88 33.30 44.62 48.17 42.63

Directors

690,000 700,000 700,000 797,500 790,000

Employees Average remuneration

(full-time equivalent basis)

40,732 41,537 44,598 48,059 51,932

1 For a detailed breakdown of Senior Management remuneration see the comparative table 2022-2023 above. The total value of the option awards included in

the remuneration is spread over the vesting period and earned in the respective years as opposed to attributing the full value of the stock options to the grant

year.

2 The amounts for the Chief Operating Officer are converted from pound Sterling at constant exchange rates.

3 At actual exchange rates.

REMUNERATION PAID OUT BY OTHER GROUP COMPANIES

For the year ended December 31, 2023, 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, 2023, 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 joins the Board or a

committee, or changes his or her position on a committee, or no longer serves on the Board. The ESG Committee

evaluates directors’ compensation and recommends any changes. If there are any changes to non-executive

directors’ compensation, the proposed changes are presented for approval at the Annual General Meeting of

Shareholders.

SHURGARD ANNUAL REPORT 2023

161

COMPENSATION OF MEMBERS OF THE BOARD OF DIRECTORS IN 2023

From the time of their appointment, each non-executive Director of the Company receives €60,000 per year.

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 €15,000 per year. The Chairman of the Board of

Directors receives a flat fee of €140,000. An executive director of the Company will not receive any additional

compensation for their mandate as director. Compensation is paid prorata based on attendance.

The total compensation of the Board of Directors in fiscal year 2023 amounted to €790,000.

Name Position Committee membership Year Compensation in €

Ian Marcus Chairman

ESG, Real Estate

2023 120,000

2022 90,000

Marc Oursin Chief Executive Officer N/A

Z. Jamie Behar Director Real Estate (Chair), Audit

2023 95,000

2022 85,000

Muriel De Lathouwer Independent Director Audit, ESG

2023 80,000

2022 75,000

Olivier Faujour Independent Director Real Estate, ESG

2023 60,000

2022 75,000

Frank Fiskers Independent Director

ESG (Chair),

Real Estate

2023 95,000

2022 85,000

Padraig McCarthy Independent Director Audit (Chair), ESG

2023 95,000

2022 85,000

Lorna Brown Independent Director Audit

2023 35,000

2022 0

Tom Boyle Director Real Estate

2023 35,000

2022 0

Ronald L. Havner, Jr. Former Chairman

2023 70,000

2022 107,500

Isabelle Moins

Former Independent

Director

Audit

2023 35,000

2022 65,000

Daniel C. Staton Former Director Real Estate

2023 35,000

2022 65,000

Everett B. Miller Former Director Real Estate

2023 35,000

2022

65,000

Total 2023 790,000

2022

797,500

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.

SHURGARD ANNUAL REPORT 2023

162

PRINCIPAL RISKS AND UNCERTAINTIES

OVERALL STATEMENT ON THE RISK POSITIONS

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.

Similarly, Shurgard also impacts its various stakeholders through its operations and faces risks related to ESG

topics that matter for them. We refer to Chapter 3. Risk Assessment and Double Materiality of our Sustainability

Report.

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, climate 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 identify 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).

With the rise of ESG awareness, we have enlarged the process to identify and assess also any ESG related risks

and opportunities, similar to our Enterprise Risk Management (“ERM”) process, playing a key role in the Group’s

risk management and the double materiality assessment for CSRD purposes.

SHURGARD ANNUAL REPORT 2023

163

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 as 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 34 to the consolidated financial statements.

SHURGARD ANNUAL REPORT 2023

164

Risk & Impact

Risk Mitigating Activities

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 availability 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 t

erms (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 restrained 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 to access the capital markets and generate sufficient

financing due to cautious investor attitudes.

We also face risks related to the outstanding debt, which

might have customary covenant rules, which could affect,

limit, or prohibit our ability to undertake 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 underlying 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

equate funds for its ongoing needs.

Our LTV is low and our debts could be mostly repaid with

cash flow.

Financial covenants are either tested quarterly or semi-

annually. We do not currently believe there is a risk of

breaching any of the covenants contained in those

financings.

The

directors assess the ability of the

Group to continue as

a going concern for a period of twelve months from when

the financial statements are approved for issue, based on a

forecast of the Group’s future cash flows and forecast

future loan covenant compliance. In making this

assessment, changes to the principal risks are evaluated, as

well as events and conditions which may warrant the

extension of the going concern period beyond twelve

months if they may have an impact on the Groups cash

flows, loan covenants and borrowing facilities.

SHURGARD ANNUAL REPORT 2023

165

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 rates of acquired

properties that differ 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 claims 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 liabilities, 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 from 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 experts

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 requirements, warranties, escrow and external

insurance, if necessary. Projects are not pursued when they

fai

l 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.

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, monitors completion of ESG objectives, reviews

the

Sustainability

report, and assists the Board in reviewing

and assessing the Company’s ESG risks.

The A

udit

Committee

is responsible to monitor the ESG

reporting

process and the effectiveness of ESG controls

seek 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 integra

ESG processes, train personnel, review efficiency and report

on outcomes of environmental commitments.

We plan to be

operational net zero carbon by 2030 and material net zero

by 2040.

also actively seek out external advice

to ensure

compliance with the applicable ESG framework.

SHURGARD ANNUAL REPORT 2023

166

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

and remotely managed stores, 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 s

afety

regulations, labor codes, building codes, data privacy and

other regulatory requirements. Failure 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 wi

th 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 restrict the operation of our business.

As we are a publicly listed

ompany, 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 c

ode of conduct is a

guidebook for putting these values into practice. This

ode

applies to every Shurgard employee in all countries where

Shurgard is

present.

We continuously communicate, train and review

compliance with our

health and s

afety 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

afety, fire, building permits, consumer protection and

data privacy.

SHURGARD ANNUAL REPORT 2023

167

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 conditions,

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 increases 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 contractors, 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 result

from any unfamiliarity 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

environmental 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.

work with established professional advisers and sub

contractors who have worked with us for many years to our

specifications.

We obtain environmental assessment reports on the

properties we acquire, develop, and operate to evaluate

their environmental condition and potential environmental

liability associated with them.

Internal Audit regularly reviews controls of new

development projects to assess control effectiveness of

new development business cases, tendering & contracting,

construction sites and budgeting & invoicing.

SHURGARD ANNUAL REPORT 2023

168

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 ou

r customers and employees.

Our information 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 disclosed,

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

assessments 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 crisis management,

business continuity and disaster recovery plans. Our

environment is regularly 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 minimize the retention of customer and employee data

in accordance with GDPR best practice.

Pandemic Diseases

Our business may be impacted by pandemic outbreaks and

such impact

could be materially adverse.

The COVID

-19 pandemic forced us to adapt our way

operat

ing our business and our self-

storage properties, both

from an employee as from a customer point of view.

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,

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 organizations across our

markets to ensure the security of our employees and

customers.

SHURGARD ANNUAL REPORT 2023

169

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

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

properties. Also, increased pricing transparency because of the

increasing prevalence of online pricing, may increase pricing

pressure in o

ur 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

dynamic

versus local

market conditions. Shurgard also actively monitors prices

of competitors. Price fluctuations are continuously

reviewed, discussed, and reported

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 se

vere 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 property. 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 result 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

can and

cannot do with their unit. Additionally, every 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

All our stores are equipped and monitored by fire alarms,

instruction alarms and CCTV. Store access is secured by a

new

access system fully implemented in our stores.

We have a

Crisis Management Plan

designed to be used if

necessary.

SHURGARD ANNUAL REPORT 2023

170

Public Relations (“PR”)

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 PR, in case of any event.

Our company is exposed to risks of serious 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, public communication

and response plan, monitoring of news media, negative press

on/from competitors affecting the Company’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 non

deal

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 and

the Group set up a communication plan to address the

main risks it is facing. The management team follows

regular media

and crisis management 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.

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 s

afety and environmental

compliance, numerous 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 costs, 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 effect

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

updates and employees are regularly

trained. When needed, specific projects are set up to

address the implementation of new regulatory

requirements.

SHURGARD ANNUAL REPORT 2023

171

Real Estate 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 future.

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

downturn 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 space 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 trading 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

Performance of individual properties

once opened is benchmarked against target returns and

post

-investment reviews are performed.

Recruitment and Personnel Leakage

We depend significantly 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

anagement

team’s knowledge and expertise in the

real estate and self

storage

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 operation 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 recent years

has been approximate

ly 40%

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 including for

our executive team

and in our Operations.

Long

term incentive plans are in place

to incentivize

employees to continue working for Shurgard

SHURGARD ANNUAL REPORT 2023

172

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 will 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 condition, and results of operations.

Our customer lease contract terms prohibit the storage of

illegal and certain other goods on our premises.

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

awareness sessions around safety and security are

provided regularly to all our employees. We review

the

effectiveness of operational procedures on a continuous

basis through regular store audits.

In 202

a new access control system was implemented in

all our properties

strengthening

control through a more

centralized managed and digitalized system.

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 trademarks for the Shurgard name and the Shurgard

log

os, which are held by Public Storage.

If we fail to

keep or

protect 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 the

results of operations.

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 gross revenues for the right to use the trademarks.

Although we do not own the Shurgard brand, we have

signed

a license agreement with Public Storage

(the

“Relationship Agreement”)

. Under this agreement,

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.

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

have the possibility to purchase

the

ownership rights to the trademarks in the jurisdictions

covered by the license.

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 advisers for the review of all

applicable taxes. We regularly monitor actual changes in

tax legislation with the support of our advisers to

understand and mitigate the impact. We evaluate tax

changes against the projected demand in the relevant

market

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.

RELATED PARTY TRANSACTIONS

We are engaged in certain commercial and financial transactions with related parties. Please refer to Note 33 to

the consolidated financial statements for further details.

SHURGARD ANNUAL REPORT 2023

173

DIRECTORS’ REPORT

The Directors present their annual report and audited consolidated financial statements for the year ended

December 31, 2023.

Principal Activities

Our principal business activities are the acquisition, development and operation of self-storage facilities

providing month-to-month leases for business and personal use. We also provide ancillary services at our self-

storage properties consisting primarily of sales of storage products (merchandise) and protection of customers’

stored goods.

The financial and non-financial performance of the Group has been included under the respective sections in the

annual report.

Going Concern

The consolidated financial statements are prepared on a going concern basis as described in note 1 ‘Going

concern’ section.

Results and dividends

The results of the Group for the year ended December 31, 2023 are shown in the consolidated statement of profit

and loss for the year ended on page 176.

The Directors recommend the payment of a dividend amounting to €0.59.

Directors

Details of the Directors who served during the financial year are set out on page 98 in the Ethics & Governance

section of the Annual Report.

Subsequent events

The directors refer to note 39 of the consolidated financial statements.

Statement of Directors’ Responsibilities

The Directors are responsible for the preparation of consolidated financial statements in accordance with The

Companies (Guernsey) Law, 2008, generally accepted accounting principles and other applicable laws and

regulations. The Companies (Guernsey) Law, 2008 requires the Directors to prepare consolidated financial

statements for each financial year which give a true and fair view of the state of affairs of the Group as at the

end of the year and profit or loss for that year.

The Directors are also responsible for ensuring that the annual report includes information required by the

Financial Services and Markets Authority (FSMA) guidelines. The Directors ensure that the Group complies with

the provisions of the guidelines including corporate governance which require the Group to disclose how it has

applied the principles and complied with the provisions.

SHURGARD ANNUAL REPORT 2023

174

In preparing those consolidated financial statements, the Directors are required to:

• Select suitable accounting policies and then apply them on a consistent basis;

• Make judgements and estimates that are reasonable;

• State whether applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the Financial Statements; and

• Prepare the Financial Statements on the going concern basis unless it is not appropriate to presume

that the Group will continue in business.

The Directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at

any time the financial position of the Group and to enable them to ensure that the financial statements comply

with The Companies (Guernsey) Law, 2008. They are also responsible for the system of internal controls for

safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

Disclosure of information to the auditor

Each of the person who are Directors at the time when this Directors’ report is approved has confirmed that:

• so far as each of the Directors is aware, there is no relevant audit information of which the Group’s

auditor is unaware, and

• the Directors have taken all reasonable steps that ought to have taken as Directors in order to be

aware of any relevant audit information and to establish that the Group’s auditor is aware of that

information.

Responsibility Statement of the Directors in respect of the Annual Report and consolidated financial

statements:

Each of the Directors confirm to the best of their knowledge:

• the consolidated financial statements, prepared in accordance with IFRS as adopted by the

European Union, give a true and fair view of the assets, liabilities, financial position and profit or

loss of the Group and the undertakings included in the consolidation taken as a whole;

• that the management report presented in this Annual Report contains a fair account of the

development of the business, the results and the position of the Group and the undertakings

included in the consolidation and a description of the main risks and uncertainties faced by them.

By order of the Board, 28 February 2024,

Ian Marcus Marc Oursin

Chairman Director / CEO

SHURGARD ANNUAL REPORT 2018

175

CONSOLIDATED FINANCIAL

STATEMENTS AS OF AND

FOR THE YEARS ENDED

DECEMBER 31, 2023 AND

DECEMBER 31, 2022

SHURGARD ANNUAL REPORT 2023

176

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED DECEMBER 31

(in € thousands)	Notes	December 31, 2023	December 31, 2022
Real estate operating revenue	5,11	357,923	335,290
Real estate operating expense	6,11	(120,4 70)	(113,821)
Net income from real estate operations		237,453	221,469
General, administrative and other expenses	7	(25,961)	(22,51 5)
Of which depreciation and amortization	16	(3,377)	(2,866)
Acquisition benefit of business combinations		5	775
Royalty fee expense	33	(3,531)	(3,289)
Other expenses	8	(926)	-
Operating profit before property related		207,040	1 96,440
adjustments
Valuation gain from investment property and investment property under construction and gain	14	294,350	586,181
on disposal
Operating profit		501,390	78 2,621
Finance costs	9	(23,39 0)	(21,407)
Finance income		3,120	6 22
Profit before tax		481,120	761,836
Income tax income / (expense)	10	53,283	(186,235)
Attributable profit for the period		534,403	575,601
Profit attributable to non-controlling interests	25	1,090	1,317
Profit attributable to ordinary equity holders of the parent		533,313	57 4,284
Earnings per share in €, attributable to ordinary
equity holders of the parent:
Basic, profit for the period	13	5.9 1	6.45
Diluted, profit for the period	13	5.8 9	6 .40

SHURGARD ANNUAL REPORT 2023

177

CON

SOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31

(in € thousands)	December 31, 2023	December 31, 2022
Profit for the period	534,403	575,601
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Foreign currency translation reserve 1	22,298	(85,6 40)
Net other comprehensive income (loss), net of tax, that may be reclassified to profit or loss in subsequent periods	22,298	(85,6 40)
Net other comprehensive (loss) income, net of tax, not to be reclassified	(23)	251
to profit or loss in subsequent periods
Total comprehensive income for the period, net of tax	556,678	490,212
Attributable to non-controlling interests	(1 ,090)	(1,317)
Attributable to ordinary equity holders of the parent	555,588	488,895

1 The mo

vement in the foreign currency translation reserve for the year ended December 31, 2023 mainly consists of translation gains recognized on translation

of assets and liabilities and statements of profit and loss of our UK (€21.0 million) and Swedish (€1.9 million) operations, marginally offset by translation loss

for our Danish (€0.6 million) operations.

he movement in the foreign currency translation reserve for the year ended December 31, 2022 mainly consisted 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.

SHURGARD ANNUAL REPORT 2023

178

ONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31

(in € thousands)	Notes	December 31, 2023	December 31, 2022
Assets
Non-current assets:
Investment property	14	4,929 ,819	4,469,572
Investment property under construction	14	105,951	54,217
Property, plant and equipment	16	2,482	2 ,737
Intangible assets	16	7,657	6,729
Deferred tax assets	10	891	972
Other non-current assets	17	8,977	11,326
Total non-current assets		5,055,777	4,545,553
Current assets:
Trade and other receivables	18	19 ,730	18,671
Other current assets	19	19,722	8,262
Cash and cash equivalents	20	258,118	87,345
Current assets, excluding assets held for sale		297,570	114,278
Assets held for sale		530	-
Total current assets, including assets held for sale		298,100	114,278
Total assets		5,353,877	4,659,831
Equity and liabilities
Equity
Issued share capital	21	69,449	63,610
Share premium	22	831,940	540,08 7
Share-based payment reserve	23	12,798	8,562
Distributable reserves	24	472,835	146,277
Other comprehensive loss		(116,147)	(138,422)
Retained earnings		2,343,342	2,24 0,879
Total equity attributable to equity holders of the parent		3,614,217	2,860, 993
Non-controlling interests	25	7,905	6,815
Total equity		3,622,122	2,867, 808
Non-current liabilities:
Interest-bearing loans and borrowings	26,28	698,441	797,980
Deferred tax liabilities	10	698,836	781 ,094
Lease obligations	27,28	106,389	95,665
Total non-current liabilities		1,503,666	1,674,739
Current liabilities:
Interest-bearing loans and borrowings	26,28	99,950	-
Lease obligations	27,28	4,427	4,157
Trade and other payables and deferred revenue	30	118,174	1 06,531
Income tax payable		5,538	6,596
Total current liabilities		228,089	1 17,284
Total liabilities		1,731,755	1,792,023
Total equity and liabilities		5,353,877	4,659,831

he financial statements on pages 176 to 178 were approved at a meeting of the Board of Directors held on

February 28, 2024 and signed on its behalf by

Ian Marcus Marc Oursin

Chair Director

he accompanying notes 1 to 39 form an integral part of the financial statements.

SHURGARD ANNUAL REPORT 2023

179

CON

SOLIDATED STATEMENT OF CHANGES IN EQUITY

									Total
							Other		attributable
					Share-		Compre-		to	Non-
		Issued			based	Distri-	hensive		shareholders	con-
		share	Treasury	Share	payment	butable	(loss)	Retained	of the	trolling	Total
(in € thousands)	Notes	capital 1	shares	premium1	reserve	reserves1	gain2	Earnings1	Company	interests	equity
On January 1, 2022		63,592	(2,209)	539,712	4,691	253,195	(53,033)	1,666, 595	2,472,543	5,498	2,478, 041
Proceeds from issuance of equity		18	-	398	-	-	-	-	416	-	416
Transaction costs incurred in connection with issuance of equity		-	-	(23)	-	-	-	-	(23)	-	(2 3)
Cash dividends on ordinary shares declared and paid		-	-	-	-	(106, 918)	-	-	(106,918)	-	(106,918)
Share based compensation expense 3		-	-	-	4,501	-	-	-	4,501	-	4,501
Sale of treasury shares to option holders		-	2,209	-	(630)	-	-	-	1,579	-	1,579
Net profit		-	-	-	-	-	-	574,284	574,284	1,317	575,601
Other comprehensive loss		-	-	-	-	-	(85,389)	-	(85,389)	-	(85,389)
On January 1, 2023		63,610	-	540,087	8,562	146,277	(138,422)	2,240,879	2,860, 993	6,815	2,867, 808
Proceeds from issuance of equity	21,22	5,839	-	294,565	-	-	-	-	300,404	-	300,404
Transaction costs incurred in connection with issuance of equity	22	-	-	(2,712)	-	-	-	-	(2,712)	-	(2,712)
Allocation to distributable reserves	24	-	-	-	-	430,850	-	(430, 850)	-	-	-
Cash dividends on ordinary shares declared and paid	24	-	-	-	-	(104,292)	-	-	(104,292)	-	(104,292)
Share based compensation expense 3	23,32	-	-	-	4,236	-	-	-	4,236	-	4,236
Net profit		-	-	-	-	-	-	533,313	533,313	1,090	534,403
Other comprehensive gain		-	-	-	-	-	22,275	-	22,275	-	22,275
On December 31, 2023		69,449	-	831,940	12,798	472,835	(116,147)	2,343,342	3,614,217	7,905	3,622,122

1 On M

ay 10, 2023, the Annual Shareholders Meeting of Shurgard Self Storage Ltd approved the reallocation of €430,850,000 retained profits to distributable reserves.

As per the Companies (Guernsey) law, 2008, dividends can be distributed from any account that is part of equity attributable to shareholders of the Company.

2 Other comprehensive loss as of January 1, 2023 and December 31, 2023 consists only of the foreign currency translation reserve except for a net investment hedge reserve amounting to €4.9 million and the accumulated result from remeasurement

on defined benefit plans (comprehensive income of €0.1 million and €0.2 million as of December 31, 2023 and December 31, 2022, respectively).

3 Share-based compensation expense for the year ended December 31, 2023 included €4 9,800 deferred tax liabilities (€70,795 in deferred tax assets as of December 31, 2022).

SHURGARD ANNUAL REPORT 2023

180

ONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31

(in € thousands)	Notes	December 31, 2023	December 31, 2022
Operating activities
Profit for the period before tax		481,120	761,836
Adjustments to reconcile profit before tax to net cash flows:
Valuation gain on investment property and investment	14	(29 4,350)	(586,181)
property under construction and gain on disposal
Depreciation and amortization expense	16	3,377	2,866
Share-based compensation expense	23,32	4,286	4,4 30
Finance costs, net	9	20,270	20,785
Working capital movements:
Change in trade receivables, other current and non- current assets	17,18,19	(6,280)	(5,081)
Change in other current and non-current liabilities and deferred revenue	29,30	11,344	16,7 40
Income tax paid		(32,406)	(28,861)
Cash flows from operating activities		187,361	186 ,534
Investing activities
Capital expenditures on investment property under construction and completed investment property	14	(111,901)	(111,261)
Capital expenditures on property, plant and equipment	16	(117)	(254)
Acquisition of investment properties and other assets, net	14	(68, 169)	(76,533)
Proceeds from disposal of investment property, property, plant and equipment and insurance recovery proceeds		-	4,697
Proceeds from the termination of lease agreements	5,11	-	2,000
Acquisition of intangible assets	16	(3,304)	(2,654)
Interest received		3,120	622
Cash flows from investing activities		(180,37 1)	(1 83,383)
Financing activities
Proceeds from the issuance of equity	21,22	300, 402	416
Payment for equity issuance costs	22	(2,712)	(23)
Proceeds from debt issuance	26,28	1 60,000	-
Payment for debt issuance costs	17,26	(2,584)	-
Repayment of loan notes	26,28	(160, 000)	-
Repayment of principal amount of lease obligations	28	(4,341)	(4,591)
Cash dividends on ordinary shares paid to company’s	24	(104,292)	(106,918)
shareholders
Proceeds from the sales of treasury shares		-	1,580
Interest paid	28	(24,096)	(22,466)
Cash flows from financing activities		162,377	(132,002)
Net increase (decrease) in cash and cash equivalents		169,367	(128,851)
Effect of exchange rate fluctuation		1,406	(2,974)
Cash and cash equivalents on January 1		87,345	219,170
Cash and cash equivalents at the end of the year		258,118	87 ,345

SHURGARD ANNUAL REPORT 2018

181

NOTES TO THE

CONSOLIDATED

FINANCIAL STATEMENTS

SHURGARD ANNUAL REPORT 2023

182

TABLE OF CONTENTS

1. Corporate information ......................................................................................................................................................... 183

2. Changes in accounting policies and disclosures .......................................................................................................... 185

3. Summary of material accounting policy information .................................................................................................. 187

4. Significant accounting judgements, estimates and assumptions ........................................................................... 197

5. Real estate operating revenue .......................................................................................................................................... 198

6. Real estate operating expense ...........................................................................................................................................199

7. General, administrative and other expenses ..................................................................................................................199

8. Other expenses .......................................................................................................................................................................199

9. Finance costs ......................................................................................................................................................................... 200

10. Income tax .............................................................................................................................................................................. 200

11. Segment information ........................................................................................................................................................... 206

12. Acquisition of properties ..................................................................................................................................................... 209

13. Earnings per share (“EPS”) ................................................................................................................................................. 209

14. Investment property and investment property under construction ........................................................................ 211

15. Fair value measurement – investment property .......................................................................................................... 212

16. Property, plant and equipment and intangible assets ................................................................................................ 216

17. Other non-current assets..................................................................................................................................................... 216

18. Trade and other receivables ................................................................................................................................................ 217

19. Other current assets .............................................................................................................................................................. 217

20. Cash and cash equivalents .................................................................................................................................................. 217

21. Issued share capital ...............................................................................................................................................................218

22. Share premium .......................................................................................................................................................................218

23. Share-based payment reserve ...........................................................................................................................................218

24. Distributable reserves and distributions made .............................................................................................................. 219

25. Non-controlling interests ..................................................................................................................................................... 219

26. Interest-bearing loans and borrowings .......................................................................................................................... 220

27. Leases ....................................................................................................................................................................................... 222

28. Analysis of movements in interest-bearing loans and borrowings ........................................................................ 223

29. Other non-current liabilities .............................................................................................................................................. 223

30. Trade and other payables and deferred revenue ......................................................................................................... 224

31. Pensions ................................................................................................................................................................................... 224

32. Share-based compensation expense .............................................................................................................................. 225

33. Related party disclosures .................................................................................................................................................... 227

34. Financial risk management objectives and policies .................................................................................................... 228

35. Capital management ............................................................................................................................................................ 232

36. Insurance and loss exposure .............................................................................................................................................. 233

37. Contingencies and commitments ..................................................................................................................................... 236

38. List of consolidated entities ............................................................................................................................................... 237

39. Events after the reporting period ..................................................................................................................................... 238

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183

1. CORPORATE INFORMATION

Shurgard Self Storage Ltd. (referred to collectively with its consolidated subsidiaries, as the “Group”, “Company”,

“we”, “our”, or “us”) is incorporated in Guernsey, is resident in the UK for tax purposes and has its registered

office and principal place of business at 1st and 2nd floors, Elizabeth House, Les Ruettes Brayes, Guernsey, GY1,

4LX.

he Group has been listed on Euronext Brussels since October 15, 2018 (ticker “SHUR”).

ur principal business activities are the acquisition, development and operation of self-storage facilities

providing month-to-month leases for business and personal use. We also provide ancillary services at our

self-storage properties consisting primarily of sales of storage products (merchandise) and protection of

customers’ stored goods.

s of December 31, 2023, we operate 276 self-storage stores including one under management contract (267

self-storage facilities as of December 31, 2022) in France, the Netherlands, the United Kingdom (UK), Sweden,

Germany, Belgium, and Denmark.

ASIS OF PREPARATION

The consolidated financial statements of the Company have been prepared in accordance with International

Financial Reporting Standards (“IFRS”) as adopted by the European Union.

The Company’s financial statements have been prepared on a historical cost basis, except for the following:

• Investment property and investment property under construction, which are measured at fair value;

• Equity-settled share-based compensations plans, being measured at fair value on the grant date

using the Black-Scholes model, with the cost being recognized over the period in which the service

conditions are fulfilled; and

• D

efined benefit pension plans, for which the assets are measured at fair value. Pension plan

liabilities are measured according to the projected unit credit method.

he consolidated financial statements are presented in euros and all values are rounded to the nearest thousand,

except where otherwise indicated.

Certain comparative amounts have been reclassified to conform with the current year’s presentation.

IMPACT OF CLIMATE CHANGE

In preparing the consolidated financial statements, we considered the possible impact of climate change (both

physical and transition risks) on our financial statements, in connection with a potential impact on estimates

and assumptions applied. For example:

• Climate change, including associated regulations, could impact the useful life, residual value

and/or repair and maintenance expectations relating to our assets, or require additional

investments in connection with climate change adaption or mitigation.

• The fair value of our investment properties may at one point be affected by climate events, th

osts involved by the transition to a low carbon economy or changes to legislation and regulation.

• Our customer goods protection contract liabilities include assumptions on the frequency of claims

and loss ratios.

• Climate risk, and specifically floods, can affect the frequency or magnitude of insured events an

ve in turn an impact on the claim charges or such liabilities.

SHURGARD ANNUAL REPORT 2023

184

• Go

vernments in the countries we operate may enact climate-related changes to tax legislations

(e.g., restriction on cost deductibility or penalties), which might negatively impact our ability to

generate profits.

• Our short-term incentive plans of the management team incorporate sustainability targets, which

might impact strategic decisions taken by the company.

hurgard’s ESG strategy and internal processes aim at considering and addressing the impact climate change

might have on our financial statements. Currently, we have not identified any material impact that would require

specific disclosure beyond what has been disclosed in our Sustainability Report or in Note 37 as commitments.

s an example, Shurgard targets the replacement of any existing gas heating in 108 stores, with heat-pumps by

2029. In doing so, the Group will incur future capital expenditures. However, currently, these replacements are

expected - for a not insignificant part – to be replacements of defective or outdated existing heating systems,

and as such compensate repair and maintenance or replacement cash outflows that would have been incurred

anyway. The Group further intends to roll out comprehensive solar panel strategies by markets, which will result

on the one hand in future capital investments, while on the other hand reducing utility costs. Once firm capital

expenditure commitments have been identified, they will be included in Note 37.

OING CONCERN

The directors have assessed the ability of the Group to continue as a going concern for a period of twelve months

from when the financial statements were approved for issuance (the “going concern period”). This assessment

is based on a forecast of the Group’s future cash flows and forecast future loan covenant compliance. In making

this assessment, the Group considered changes to the principal risks, as disclosed in the Annual Report 2023,

and considered events and conditions which may warrant the extension of the going concern period beyond

twelve months if they may have an impact on the Groups cash flows, loan covenants and borrowing facilities. In

doing so, the directors referred to the Group’s activities, and the review of the business, which are included in

this Annual Report, as well as the financial position of the Group, discussed in the Financial Review, summarized

below.

he assessment included a stress test, which assumed a plausible reduction in future cash flows and the fair

value of investment properties, (“plausible Severe Downside scenario”). The outcome of the stress test showed

that the Group is expected to continue to comply with all of its loan covenants through the going concern period,

it has sufficient liquidity to meet its day-to-day cash flows, and loans that mature during the going concern

period can be repaid with existing committed finance facilities and cash at hand.

he Group also performed a reverse stress test, which showed that property values could decrease even more

than considered in the stress test, before our covenants would approach the maximum short-term level that is

within the Group’s financial policy and well below the level permitted under debt covenants.

inally, the directors took comfort in the fact that the Group has not granted any assets as security for any

financing.

Based on the above, the directors have not identified any material uncertainties which may cast significant doubt

on the Group’s ability to continue as a going concern for the duration of the going concern period. Accordingly,

the directors believe it is appropriate to adopt the going concern basis in preparing these financial statements.

SHURGARD ANNUAL REPORT 2023

185

IGNIFICANT EVENTS AND TRANSACTIONS

Events and/or transactions significant to an understanding of the changes since December 31, 2022, have been

included in the Notes of these consolidated financial statements and mainly relate to:

• On February 17, 2023, Shurgard Self Storage S.A. migrated to Guernsey and was incorporated as

Shurgard Self Storage Limited pursuant to Guernsey law and became a UK REIT on March 1, 2023

ince then, central management and control of the Group is exercised through the Board of

Directors of Shurgard Self Storage Limited located in the United Kingdom.

The legal migration from Luxembourg to Guernsey had no impact on the Group’s listing at Euronext

in Brussels, nor on its financial reporting, which continues to be done under International Financial

Reporting Standards (“IFRS”), as adopted by the European Union, and in euros. This was achieved

through legal continuity of the entity, meaning that all rights and obligations of Shurgard Self

Storage S.A. were maintained.

In connection with the Group becoming a REIT, the Group income tax expense is in principle

reduced as UK REITs are exempt from UK corporation tax on rental profits arising from their UK

property business. In addition, upon REIT conversion, the income tax expense for 2023 is impacted

by an income of €161.2 million, consisting of the reversal of deferred tax liabilities relating to the

investment properties, measured at fair value for IFRS purposes.

• On April 28, 2023, the Group entered into a committed €450 million term loan facility agreement

with BNP Paribas Fortis Bank NV/SA (also acting as the agent), Belfius Bank SA/NV, ABN Amro

Bank NV, KBC Bank NV/SA and Banque International à Luxembourg SA, with a maturity of three

years and an option for the Company to extend by an additional period of up to two years (Note

26).

• On October 9, 2023, the Group acquired five self-storage properties in Germany adding 17,146 net

rentable sqm of storage space in total to its existing owned portfolio.

• On November 14, 2023, the Group issued 8,163,265 new ordinary shares settled in cash at a

subscription price of €36.75 per share

2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

The accounting policies adopted in the preparation of the 2023 consolidated financial statements are consistent

with those followed in the preparation of the Company’s annual consolidated financial statements for the year

ended December 31, 2022, except for the adoption of amended standards effective as of January 1, 2023. The

Group has not early adopted any other standard, interpretation or amendment that has been issued but is not

yet effective.

IFRS 17 - INSURANCE CONTRACTS

IFRS 17 - Insurance contracts was issued in May 2017 as replacement for IFRS 4 - Insurance Contracts. It applies

to all insurance and reinsurance contracts which fall into its scope. The standard obliges that insurance contracts

are accounted for separately from reinsurance contracts held.

RS 17 main measurement model requires contracts to be measured using the building blocks of discounted

probability-weighted cash flows, an explicit risk adjustment, and a “contractual service margin” representing the

expected unearned profit of the contract which is recognized as revenue over the coverage period.

n optional Premium Allocation Approach (“PAA”) is permitted for the liability/asset for the (remaining) coverage

of short-duration contracts. A group of (re)insurance contracts is eligible for the PAA if:

SHURGARD ANNUAL REPORT 2023

186

• e

ach contract in the group has a coverage period of one year or less;

• m

easurement of the liability/(asset) for remaining coverage for the group using the premium

allocation approach is reasonably expected to produce a measurement of the liability for remaining

coverage which is not materially different from using the general model.

he Group concluded that all its reinsurance contracts are eligible for the simplified PAA method.

Scope

Shurgard, through its captive re-insurance entity, entered into a re-insurance agreement with an external

insurance company. Through this agreement, the external insurance company cedes to our captive certain

insurance risk in lieu for a re-insurance premium.

evel of aggregation

The level of aggregation is a key requirement under IFRS 17. The level of aggregation is determined firstly by

dividing the business written into portfolios. Portfolios comprise groups of contracts with similar risks which are

managed together. Portfolios are further divided into groups based on expected profitability at inception. Under

the PAA method, a contract is deemed profitable, unless facts and circumstances indicate otherwise, which was

not the case. The Group has one annual (accepted reinsurance) contract with an external insurance company

and the cohort duration is set to one financial year. Consequently, the one re-insurance contract is the

appropriate level of aggregation for the Group.

easurement

• Applying the PAA method requires that an interest on the liability for remaining coverage shoul

e accreted, at the rate determined at inception of the group of (re)insurance contracts if contracts

in the group have a significant financing component. However, accretion of interest is not required

if, at the inception of the group of contracts, it is expected that the time between provision of

services and the related premium due date is not more than a year. As there is no significant

financing component for the (re)insurance contracts of the Group, Shurgard has elected not to

accrete interest on the liability for remaining coverage.

• The expected premium is reflected as insurance revenue in profit or loss on the basis of passage

of time, over the duration of the coverage period.

• Equally, when measuring the liability for incurred claims under the premium allocation approach,

the Group elected, as permitted by IFRS 17, not to adjust future cash flows for the time value of

money and other financial risks as those cash flows are expected to be paid or received in one year

or less from the date when the claims are incurred.

• The Group further noted that no risk adjustment is necessary, due to the expected low volatility in

claims outcome and overall immateriality of the incurred claims as a whole.

• The Company has chosen not to recognize insurance acquisition cash flows as an expense whe

ncurred, but to amortize the cost over the duration of the one-year contract.

Transition to IFRS 17

IFRS 17 has been first applied as of January 1, 2023, with retrospective restatements for the comparative periods.

Based on the above, the Group concluded that implementing IFRS 17 had no material impact on the results of

the Group, given that the requirements of the PAA method under IFRS 17 do not result in a materially different

measurement of the contracts in scope compared to IFRS 4. As such, no restatement of comparative performance

information was necessary.

SHURGARD ANNUAL REPORT 2023

187

MMENDMENTS TO IAS 12 – PILLAR TWO MODEL RULES

The amendments to IAS 12 have been introduced in response to the OECD’s BEPS Pillar Two rules and include:

• A

mandatory temporary exception to the recognition and disclosure of deferred taxes arising from

the jurisdictional implementation of the Pillar Two model rules; and

• Disclosure requirements for affected entities to help users of the financial statements better

understand an entity’s exposure to Pillar Two income taxes arising from that legislation,

particularly before its effective date.

Pillar Two related disclosures have been included in Note 10.

3. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

BASIS OF CONSOLIDATION

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as

of and for the years ended December 31, 2023 and 2022. Specifically, the Group controls an investee if, and only

if, it has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevan

activities of the investee);

• Exposure, or rights, to variable returns from its involvement with the investee; and

• The ability to use its power over the investee to affect its returns.

The Company re-assesses whether it controls an investee if facts and circumstances indicate that there are

changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company

obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets,

liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the

consolidated financial statements from the date the Company gains control until the date the Company ceases

to control the subsidiary.

rofit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of

the parent of the Company and to the non-controlling interests. When necessary, adjustments are made to the

financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting

policies. All intra-company assets and liabilities, equity, income, expenses and cash flows relating to transactions

between members of the Company are eliminated in consolidation.

change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity

transaction.

the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities,

non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit

or loss. Any investment retained is recognized at fair value.

ROPERTY ACQUISITIONS

Where property is acquired, via corporate acquisitions or otherwise, management considers the substance of the

assets and activities of the acquired entity in determining whether the acquisition represents the acquisition of

a business.

SHURGARD ANNUAL REPORT 2023

188

here such acquisitions are not judged to be an acquisition of a business, they are not treated as business

combinations. Rather, the cost to acquire the corporate entity or assets and liabilities, as well as directly

attributable acquisition costs, are allocated between the identifiable assets and liabilities (of the entity) based

on their relative values at the acquisition date.

USINESS COMBINATIONS AND GOODWILL

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured

as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any

non-controlling interests in the acquiree. For each business combination, the Company elects whether to

measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s

identifiable net assets. Acquisition-related costs are expensed as incurred.

Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date.

Contingent consideration classified as an asset or liability is measured at fair value with the changes in fair value

recognized in the statement of profit or loss .

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the

amount recognized for non-controlling interests), and any previous interest held over the net identifiable assets

acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate

consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired

and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at

the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over

the aggregate consideration transferred, then the gain is recognized in profit or loss.

OREIGN CURRENCIES

The Company’s consolidated financial statements are presented in euros, which is also the parent company’s

functional currency. For each entity, the Company determines the functional currency and items included in the

financial statements of each entity are measured using that functional currency. The functional currencies used

by the Company’s main subsidiaries are the euro, UK Pound Sterling, the Swedish krona and the Danish krone.

The Company uses the direct method of consolidation and on disposal of a foreign operation the gain or loss

that is reclassified to profit or loss reflects the amount that arises from using this method.

TRANSACTIONS AND BALANCES

Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional

currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities

denominated in foreign currencies are translated at the functional currency spot rates of exchange at the

reporting date.

ifferences arising on settlement or translation of monetary items are recognized in finance cost on our

consolidated statement of profit or loss, except for monetary items that are considered to be part of the

Company’s net investment of a foreign operation. These are recognized in OCI until the net investment is disposed

of, at which time, the cumulative amount is reclassified to finance cost. Tax charges and credits attributable to

exchange differences on those monetary items are also recorded in OCI.

n-monetary items that are measured in terms of historical cost in a foreign currency by the Company’s entities

are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured,

by the Company’s entities, at fair value in a foreign currency (e.g. , investment properties) are translated using

the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of such

SHURGARD ANNUAL REPORT 2023

189

on-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in

fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or

profit or loss are also recognized in OCI or profit or loss, respectively).

SUBSIDIARIES

On consolidation, the assets and liabilities of foreign operations are translated into euros at the rate of exchange

prevailing at the reporting date and their statements of profit or loss are translated at average exchange rates

prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are

recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign

operation is recognized in profit or loss.

EGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the chief

operating decision maker (“CODM”). The CODM is the Executive Committee and consists of Chief Executive Officer,

Chief Finance Officer, Chief Operating Officer, Chief Investment Officer and General Counsel (“the Executive

Committee”).

NVESTMENT PROPERTY AND INVESTMENT PROPERTY UNDER CONSTRUCTION

Investment property comprises completed property and property under construction or re-development that is

held to earn rentals. Property held under a lease is classified as investment property when it is held to earn

rentals, rather for use in production or administrative functions.

Investment property is recognized as an asset when, and only when, it is probable that future economic benefits

that are associated with the property will flow to the entity, and the cost of the property can be measured

reliably. This is typically the case when the entity has legal ownership and control over the property and can

establish the value of the property through a purchase or contractual agreement.

Investment property is initially measured at cost, including transaction costs. Transaction costs include transfer

taxes, professional fees for legal services and initial leasing commissions to bring the property to the condition

necessary for it to be capable of operating.

Subsequent to initial recognition, investment property is measured at fair value, which reflects market conditions

at the reporting date. Gains or losses arising from changes in the fair values of investment property are included

in valuation gain and loss from investment property and investment property under construction on our

consolidated statement of profit and loss in the period in which they arise.

Transfers are made to (or from) investment property only when there is a change in use which can be evidenced,

for example with the commencement or end of owner-occupation.

vestment property is derecognized either when it has been disposed of or when it is permanently withdrawn

from use and no future economic benefit is expected from its disposal. The difference between the net disposal

proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

EASES

A lease is a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a

period of time in exchange for consideration.

he determination of whether an arrangement is (or contains) a lease is based on the substance of the

arrangement at the inception of the lease.

SHURGARD ANNUAL REPORT 2023

190

OMPANY AS A LESSEE

The Company leases various plots of land, self-storage facilities, equipment and company cars. Certain contracts

may contain both lease and non-lease components. The Group elected to apply the practical expedient of IFRS 16

to not separate lease and non-lease components and thus accounts for these as a single lease component.

Leases are recognized as a right-of-use asset, being classified as investment property given the leased land is

held solely for the purposes of holding the underlying asset. A corresponding liability is recognized related to the

obligation to make lease payments at the date at which the leased asset is available for use by the Group.

Assets and liabilities arising from a lease are initially measured at the present value of the lease payments to be

made over the lease term.

Lease liabilities include the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• Variable lease payments: the Company is exposed in all countries it operates to potential future

increases in variable lease payments based on an index or rate which are not included in the lease

liability until they take effect; when adjustments to lease payments based on an index or rate take

effect, the lease liability is reassessed and adjusted against the right-of-use asset;

• Amounts expected to be payable by the Company under residual value guarantees;

• The exercise price of a purchase option if the group is reasonably certain to exercise that option;

and

• Payments of penalties for terminating the lease, if the lease term reflects the Company exercising

that option.

ease payments to be made under reasonably certain extension options are also included in the measurement

of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily

determined, which is generally the case, the lessee’s incremental borrowing rate (“IBR”) is used, being the rate

that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to

the right-of-use asset in a similar economic environment with similar terms, security and conditions. To

determine IBR for leases denominated in the various functional currencies, we are using relevant swap rates

increased by a credit spread to reflect the incremental borrowing rate for such an asset, taking into account the

payment pattern applicable under the leases. This credit spread is based on the credit spreads observed on the

retail mortgage market and is adjusted for LTV and non-commercial character of the underlying asset.

ease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss

over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability

for each period.

ght-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of lease liability;

• Any lease payments made at or before the commencement date less any lease incentives received;

• Any initial direct costs; and

• Restoration costs.

SHURGARD ANNUAL REPORT 2023

191

xcept for investment property held by the Company as a right-of-use asset, right-of-use assets are generally

depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Company

is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying

asset’s useful life.

In determining the carrying amount of investment property under the fair value model, the Group does not double

count assets or liabilities that are recognized as separate assets or liabilities. The fair value of investment

property reflects expected cash flows (including variable lease payments that are expected to become payable)

Accordingly, where a valuation is obtained for a property net of all payments expected to be made, any recognized

lease liability is added back to arrive at the carrying amount of the investment property.

Payments associated with short term leases and all leases of low value assets are recognized on a straight-line

basis as an expense in profit or loss. Short term leases are leases with a lease term of 12 months or less.

COMPANY AS A LESSOR

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset

are classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease

are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as

rental income. Contingent rents are recognized as revenue in the period in which they are earned. We refer to

the accounting policy on revenue recognition for further information on the accounting policies on rental income.

ROPERTY, PLANT AND EQUIPMENT

Our property, plant and equipment mainly consist of building improvements and office equipment in use at the

local head offices in the countries in which we operate. Historical cost includes expenditure that is directly

attributable to the acquisition of the items.

ubsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,

only when it is probable that future economic benefits associated with the item will flow to the Company and

the cost of the item can be measured reliably. The carrying amount of any asset is derecognized when replaced.

All other repairs and maintenance are charged to profit or loss during the reporting period in which they are

incurred.

roperty, plant and equipment is depreciated on a straight-line basis over its estimated economic useful life. The

assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting

period .

hen there is an impairment indicator, an asset’s carrying amount is written down immediately to its recoverable

amount if the asset’s carrying amount is greater than its estimated recoverable amount.

ains and losses on disposals are determined by comparing proceeds with carrying amount. These are included

in profit or loss.

NTANGIBLE ASSETS

The Company’s intangible assets consist of internally developed computer software. Software development costs

that are directly attributable to the design and testing of identifiable and unique software products controlled

by the Company are recognized as intangible assets when the criteria, as defined in IAS 38, are met.

SHURGARD ANNUAL REPORT 2023

192

C a

pitalized software development costs are recorded as intangible assets and amortized on a straight-line basis

over their economic useful lives (of three to five years) from the moment at which the asset is ready for use.

Costs associated with maintaining software programs are recognized as an expense as incurred.

esearch expenditure and development expenditure that do not meet the criteria for capitalization above are

recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized

as an asset in a subsequent period.

Software-as-a-service (“SaaS”) arrangements provide the user with the right to access the provider’s application

software in the cloud over the contract period. In response to this, the IFRS Interpretation Committee issued an

agenda decision explaining how IFRS should be applied to these types of arrangements. While the general IAS 38

guidance applies, the Interpretation Committee noted that the license agreements typically limit the ability to

meet the requirements of the standards to capitalize most of the implementation costs of such a SaaS solution.

As such, costs incurred to implement, configure or customize, and the ongoing fees to obtain access to the

application are recognized as expenses when the services are received.

ORROWINGS

All borrowings are initially recognized at fair value less directly attributable transaction costs. After initial

recognition, borrowings are subsequently measured at amortized cost using the effective interest method.

Borrowings are derecognized when the obligation specified in the contract is discharged, canceled or expired.

The difference between the carrying amount of a financial liability that has been extinguished or transferred to

another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is

recognized in profit or loss as other income or finance costs.

orrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement

of the liability for at least 12 months after the reporting period.

ORROWING COSTS

General borrowing costs attributable to the acquisition or construction of an asset that necessarily takes a

substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset.

All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and

other costs that an entity incurs in connection with the borrowing of funds.

he interest capitalized is calculated using the Group’s weighted average cost of borrowings. Interest is

capitalized as from the commencement of the development work until the date of practical completion, i.e., when

substantially all the development work is completed. The capitalization of finance costs is suspended if there are

prolonged periods when development activity is interrupted. Interest is also capitalized on the purchase cost of

a property acquired specifically for redevelopment, but only where activities necessary to prepare the asset for

redevelopment are in progress .

ASH AND CASH EQUIVALENTS

Cash and cash equivalents in the statement of financial position comprise cash at bank and cash equivalents

with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

or the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash

equivalents, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the

Company’s cash management.

SHURGARD ANNUAL REPORT 2023

193

ENT AND OTHER RECEIVABLES

Rent and other receivables are recognized at their original invoiced value except where the time value of money

is material, in which case receivables are recognized at fair value and subsequently measured at amortized cost

and are subject to impairment. For rent and other receivables, the Group applies a simplified approach in

calculating expected credit losses. Therefore, the Company does not track changes in credit risk, but instead

recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Group has

established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking

factors specific to the debtors and the economic environment.

RADE AND OTHER PAYABLES

These amounts represent liabilities for goods and services provided to the Company prior to the end of the

financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Trade and other payables are presented as current liabilities unless payment is not due within 12 months after

the reporting period.

EVENUE RECOGNITION

Shurgard is in the business of operating self-storage facilities providing month-to-month rental agreements for

business and personal use in scope of IFRS 16. We also provide ancillary services at our self-storage facilities

consisting primarily of sales of storage products (such as storage boxes or locks, included in “Ancillary revenue”)

and protection of customers’ stored goods (referred to as “Fee income from customer goods insurance”).

This fee income from providing coverage for customer goods has been assessed to be outside the scope of

IFRS 17 and inside the scope of IFRS 15 because the contracts between Shurgard and the tenant do not transfer

significant insurance risk between these two parties.

evenue from contracts with customers is recognized when control of the goods or services are transferred to

the customer at an amount that reflects the consideration to which the Company expects to be entitled in

exchange for those goods or services. The Group concluded that it is the principal in all of its revenue

arrangements, because it controls the goods or services before transferring them to the customer.

RENTAL INCOME

In the rental agreements with its customers, the Company is acting as the lessor in operating lease agreement.

Rental income arising from such operating leases on investment property is accounted for on a straight-line

basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature,

except for contingent rental income which is recognized when it arises. Generally, the Group requires advance

payments from new contracts (customers), and the proceeds received are deferred on the balance sheet under

the caption “Deferred rent”.

Initial direct costs incurred in negotiating and arranging an operating lease are recognized as an expense over

the lease term on the same basis as the lease income.

SHURGARD ANNUAL REPORT 2023

194

enant lease incentives are recognized as a reduction of rental revenue on a straight-line basis over the term of

the lease. The lease term is the non-cancelable period of the lease together with any further term for which the

tenant has the option to continue the lease, where, at the inception of the lease, management is reasonably

certain that the tenant will exercise that option. Typically, this has been assessed to be one month.

mounts received from tenants to terminate leases or to compensate for dilapidations are recognized in the

statement of profit or loss when the right to receive them arises.

FEE INCOME FROM CUSTOMER GOODS COVERAGE

Fee income from providing coverage for customer goods is recognized on a straight-line basis over the period

that a customer occupies its storage unit.

SERVICE CHARGES, MANAGEMENT CHARGES AND OTHER EXPENSES RECOVERABLE FROM TENANTS

Income arising from expenses recharged to tenants is recognized in the period in which the compensation

becomes receivable. Service and management charges and other such receipts are included in real estate

operating revenue gross of the related costs, as management considers that the Company acts as principal in

this respect.

PLOYEE BENEFITS

SHORT TERM EMPLOYEE BENEFITS

Liabilities for wages and salaries that are expected to be settled wholly within 12 months after the end of the

period in which the employees render the related service are recognized in respect of employees’ services up to

the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are

settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

onuses received by company employees and management are based on pre-defined Company and individual

target achievements. The estimated amount of the bonus is recognized as an expense over the period the bonus

is earned.

PENSION BENEFITS

A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions

and has no legal or constructive obligation to pay further contributions regardless of the performance of the

funds held to satisfy future benefit payments. A defined benefit plan is a post-employment benefit plan other

than a defined contribution plan.

The Company has defined contribution plans in various countries in which it operates, whereby contributions by

the Company are charged to real estate operating expense and general, administrative and other expenses in

our consolidated statement of profit and loss in the period in which services are rendered by the covered

employees.

The defined contribution plans in Belgium include a legally guaranteed minimum return, which must be provided

by the Group (based on the so-called “Law Vandenbroucke”). The external insurance company that receives and

manages all plan contributions does also provide a different return guarantee, which may be higher or lower

than the one that must be provided by the Group. Therefore, these plans also have defined benefit plan features,

as the Group is exposed to the investment and funding risk relating to the difference in returns, if any.

For these plans, the projected unit credit method has been used as the actuarial technique to measure the

defined benefit obligation, calculated by independent actuaries .

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195

TER

MINATION BENEFITS

Termination benefits are payable when employment is terminated by the Company before the normal retirement

date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes

termination benefits at the earlier of the following dates: (i) when it can no longer withdraw the offer of those

benefits; and (ii) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 and

involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy,

the termination benefits are measured based on the number of employees expected to accept the offer. Benefits

falling due more than 12 months after the end of the reporting period are discounted to present value.

HARE-BASED COMPENSATION

The Group operates various equity-settled share-based compensation plans, under which the Company receives

services from employees and senior executives as consideration for equity instruments (options) of the Group.

he cost of equity-settled compensation plans is determined by the fair value at the grant date of the awards

using the Black-Scholes model. The cost is recognized, together with a corresponding increase in retained

earnings in equity, over the period in which the service conditions are fulfilled (the vesting period).

The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date

reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity

instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period

represents the movement in cumulative expense recognized as of the beginning and end of that period and is

recognized in general administrative and other expenses. No expense is recognized for awards that do not

ultimately vest because non-market performance and/or service conditions have not been met .

COME TAX

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that

it relates to a business combination, or items recognized directly in equity or in OCI. Interest and penalties related

to income taxes, including uncertain tax treatments, can be accounted for under IAS 12 Income taxes or under

IAS 37 Provisions, Contingent Liabilities and Contingent Assets depending on the specific nature of the particular

interest and penalties and whether the relevant law considered these interest and penalties as income taxes.

CURRENT INCOME TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in

the consolidated statement of profit or loss and other comprehensive income because it excludes items of income

or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax

deductible.

he Group’s liability for current tax is calculated using tax rates (and tax laws) that have been enacted or

substantively enacted by the end of the reporting period.

DEFERRED TAX

Deferred tax is recognized for temporary differences between the carrying amounts of assets and liabilities in

the consolidated financial statements and their corresponding tax basis used in the computation of taxable

profit.

eferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are

recognized to the extent that it is probable that taxable profit will be available against which deductible

temporary differences and tax losses carried forward can be utilized.

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196

eferred tax assets and liabilities are not recognized when the temporary difference arises from the initial

recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the

time of the transaction, affects neither accounting profit nor taxable profit or loss.

or taxable temporary differences associated with investments in subsidiaries and interests in joint

arrangements:

• Deferred tax liabilities are not recognized when the timing of the reversal of the temporary

differences can be controlled and it is probable that the temporary differences will not reverse in

the foreseeable future; and

• Deferred tax assets are recognized only to the extent that it is probable that the temporary

differences will reverse in the foreseeable future and taxable profit will be available against which

the temporary differences can be utilized.

he measurement of deferred tax reflects the tax consequences that would follow from the manner, in which

the Group expects, at the reporting date, to recover or settle the carrying amount of assets and liabilities, at the

tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax

rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

he Group concluded that its investment properties are held with the objective to consume substantially all of

the economic benefits embodied in the investment properties over time, rather than through sale, which is

reflected in the measurement of deferred tax assets and liabilities.

ARNINGS PER SHARE

BASIC EARNINGS PER SHARE

Basic earnings per share is calculated by dividing:

• T

he profit attributable to equity holders of the Company by;

• The weighted average number of ordinary shares outstanding during the financial year, excluding

treasury shares.

DILUTED EARNINGS PER SHARE

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into

account:

• Th

e after-tax effect of interest and other financing costs associated with dilutive potential ordinary

shares, and

• The weighted average number of additional ordinary shares that would have been outstanding

assuming the conversion of all dilutive potential ordinary shares (including outstanding share

options).

AIR VALUE MEASUREMENTS

The Group measures investment property and investment property under construction at fair value. Fair value

related disclosures for items measured at fair value or where fair values are disclosed, are summarized in

Notes 14 and 15: Investment property and investment property under construction.

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197

air value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The fair value measurement is based on the presumption

that the transaction to sell the asset or transfer, the liability takes place either:

• I

n the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The Company must be able to access the principal or the most advantageous market at the measurement date.

he fair value of an asset or a liability is measured using the assumptions that market participants would use

when pricing the asset or liability, assuming that market participants act in their economic best interest.

fair value measurement of a non-financial asset takes into account a market participant's ability to generate

economic benefits by using the asset in its highest and best use or by selling it to another market participant

that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate

in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of

relevant observable inputs and minimizing the use of unobservable inputs.

ll assets and liabilities, for which fair value is measured or disclosed in the financial statements are categorized

within the fair value hierarchy (described as follows), based on the lowest level input that is significant to the

fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable;

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is unobservable.

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND

ASSUMPTIONS

The preparation of the Group’s consolidated financial statements in conformity with IFRS requires us to make

judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and

liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these

assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount

of assets or liabilities affected in future periods .

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198

Est

imates and assumptions

The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at

the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets

and liabilities within the next financial year, are described below. The Group based its assumptions and estimates

on parameters available when the consolidated financial statements were prepared. Existing circumstances and

assumptions about future developments, however, may change due to market changes or circumstances arising

that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

• Valuation of Investment Property

The fair value of investment property and investment property under construction is determined

by external real estate valuation experts using recognized valuation techniques and the principles

of IFRS 13 Fair Value Measurement. The significant methods and assumptions used by valuers in

estimating the fair value of investment property are set out in Note 15.

• Share-based payments

Estimating the fair value of share-based payment transactions requires determination of most

appropriate inputs to the valuation model, including the expected life of the share option, volatility,

etc. The significant assumptions applied are included in Note 23.

Jud

gements

In the process of applying the Group’s accounting policies, management has made the following judgements,

which have the most significant effect on the amounts recognised in the consolidated financial statements:

termination regarding accounting treatment of acquisitions

From time to time, the Group acquires entities that own real estate. At the time of acquisition, the Company

considers whether such a transaction represents the acquisition of a business or the acquisition of an asset (a

group of assets) for IFRS purposes. The Company accounts for an acquisition as a business combination when

the integrated set which includes the property contains processes that have the ability to create output (mainly

in the form of rental income). Judgement is required to make this determination and the Group applies the

guidance included in IFRS 3 (as amendment) to supports its judgement. When the acquisition does not represent

a business combination, it is accounted for as an acquisition of assets and liabilities. The cost of the acquisition

is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred

tax (see Note 3) is recognized.

5. REAL ESTATE OPERATING REVENUE

(in € thousands)	December 31, 2023	December 31, 2022
Rental revenue 1	312,550	289,380
Fee income from customer goods insurance 2	33,683	32,075
Ancillary revenue 3	11,468	11,594
Property operating revenue	357,701	333,049
Other revenue 4	222	2,241
Real estate operating revenue	357,923	335,290

1 There were no contingent rentals with customers recognized during the year.

2 Fee income from providing customer goods coverage is in scope of IFRS 15 (Note 36).

3 Ancillary revenue consists of merchandise sales and other revenue from real estate operations.

4 Other revenue mainly consists of management fee revenue and other, non-recurring, income resulting from operations. For the year ended December 31, 2022,

other revenue includes €2.0 million compensation we received from the landlord of one of our German properties under leasehold that we abandoned .

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199

6. REAL ESTATE OPERATING EXPENSE

Real estate operating expense of investment property which generates property operating revenue consists of

the following:

(in € thousands)	December 31, 2023	December 31, 2022
Payroll expense	42,138	42,151
Real estate and other taxes	19,313	16,834
Repairs and maintenance	13,280	10,913
Marketing expense	9,887	9,162
Utility expense	3,939	3,574
Doubtful debt expense 1	5,465	5,088
Cost of insurance and merchandise sales 2	4,556	5,289
Other operating expenses 2,3	21,892	20,810
Real estate operating expense	120,470	113,821

1 Doubtful debt expense for the year ended December 31, 2023 includes €4.6 million loss on debtors and €1.0 million collection fees and other expense. For the

year ended December 31, 2022, doubtful debt expense included €4.1 million loss on debtors and €1.0 million collection fees and other expense.

2 For the year ended December 31, 2023, the aggregate of cost of insurance and merchandise sales and other operating expense included €2.8 million captive

re-insurance revenue and €2.0 million captive re-insurance service expense in scope of IFRS 17.

For the year ended December 31, 2022, the aggregate of cost of insurance and merchandise sales and other operating expense included €2.8 million captive

re-insurance revenue and €2.2 million captive re-insurance service expense in scope of IFRS 17.

3 Other operating expenses mainly include travel expenses, legal and consultancy fees, insurance expenses, non-deductible VAT, information system expenses

and property lease expenses.

7. GENERAL, ADMINISTRATIVE AND OTHER EXPENSES

General, administrative and other expenses for the periods concerned consists of the following:

(in € thousands)	December 31, 2023	December 31, 2022
Payroll expense	12,211	11,982
Share-based compensation expense	4,183	3,899
Capitalization of internal time spent on development of investment property	(4,233)	(3,831)
Depreciation and amortization expense	3,377	2,866
Other general and administrative expenses, net 1	10,423	7,599
General, administrative and other expenses	25,961	22,515

1 Other general and administrative expenses, net, mainly include legal, consultancy and audit fees and non-deductible VAT. The year-on-year increase in other

general and administrative expense is mainly attributable to €3.1 million increased consultancy fee expense and €0.6 million increased abandoned project

cost (to €1.6 million in 2023), partially offset by reductions in irrecoverable VAT, office tax and IS expense that on aggregate are a decrease of €0.9 million.

8. OTHER EXPENSES

Other expenses for the year ended December 31, 2023 consists of €0.7 million non-recurring implementation

cost for our new ERP system, which in line with recently issued guidance by the IFRS Interpretation Committee

on implementation of SaaS solutions, has been fully expensed, and €0.2 million cost incurred in the November

2023 equity issuance (Note 21).

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200

9. FINANCE COSTS

Finance costs comprises the following:

(in € thousands)	December 31, 2023	December 31, 2022
Interest on revolving syndicated loan facility	498	500
Interest on term loan facility	2,570	-
Interest on senior guaranteed notes	18,724	18,714
Interest on lease obligations	3,585	2,852
Capitalized borrowing costs 1	(2,157)	(1,316)
Other interest expense	27	569
Interest expense	23,247	21,319
Foreign exchange loss	143	88
Finance costs	23,390	21,407

1 The

capitalization rate of the borrowing costs was on average 2.53% and 2.34% in 2023 and 2022, respectively. We primarily capitalize these borrowing costs

as investment property under construction (Note 14) .

10. INCOME TAX

INCOME TAX EXPENSE

(in € thousands)	December 31, 2023	December 31, 2022
Current tax expense	29,419	30,311
Deferred tax income	(82,702)	155,924
Income tax (income) / expense	(53,283)	186,235
Profit before tax	481,120	761,836
Effective tax rate 1	N/A 2	24.4%

1 The a

verage effective current income tax rates based on adjusted EPRA earnings before tax are disclosed in the Appendix on Alternative Performance Measures.

2 The effective tax rate is impacted by the Group's entry to the UK REIT regime as per March 1, 2023. Excluding the tax adjustment on entry to the UK REIT

regime, the effective tax rate would have been 22.4%.

Tax e

xpenses have been calculated in accordance with local and international tax laws. The tax expense on the

Group’s consolidated profit (loss) before tax differs from the theoretical amount that would arise using the

domestic rate in each individual jurisdiction (on the pretax profits/losses) of the consolidated companies as

follows:

SHURGARD ANNUAL REPORT 2023

201

(in € thousands)	December 31, 2023	%	December 31, 2022	%
Profit before tax	481,120		761,836
Expected tax based on local tax rates	124,329	25.8	179,231	23.5
Disallowed expenses	452	0.0	1,255	0.2
Non-taxable income	(17,097)	(3.5)	(84)	0.0
Non recognition of deferred tax assets on current	(4,245)	(0.9)	4,285	0.6
year tax losses
Prior year adjustments and other changes to the deferred tax balances	4,637	1.0	(10,043)	-1.3
Impact of changes to substantively enacted tax rates	(262)	0.0	11,581	1.5
Other (excluding the tax adjustment on entry to the UK REIT regime)	54	0.0	10	0.0
Tax expense for the year	107,868	22.4	186,235	24.4
Tax adjustment on entry to the UK REIT regime	(161,151)		0	0.0
Tax expense for the year	(53,283)		186,235	24.4

“

Prior year adjustments and other changes to the deferred tax balances” relate to events in the current reporting

period and reflects the effect of changes in rules, facts or other factors compared with those used in establishing

the current or deferred tax position in prior periods. For 2023, these adjustments mainly relate to Luxembourg

(€9.1 million), Germany (-€4.7 million), the Netherlands (€1.0 million) and the United Kingdom (-€0.7 million). For

2022, they mainly were located in the United Kingdom (€8.7 million) and France (€1.1 million) .

SHURGARD ANNUAL REPORT 2023

202

DEFE

RRED TAXES

The movement in deferred tax assets and liabilities during the year ended December 31, 2022 is as follows:

		(Charged)/	Charged to
		credited to the	other
		statement of	comprehensive	Credited
(in € thousands)	January 1, 2022	profit or loss	income	to equity	December 31, 2022
Deferred tax assets:
Tax loss carry-forwards	6,760	(2,311)	(40)	-	4,409
Deductible temporary	817	3,029	(10)	-	3,836
differences
Total Deferred tax assets	7,577	718	(50)	-	8,245
Deferred tax liabilities:
Investment property	(647,070)	(155,879)	16,232	-	(786,717)
Other taxable temporary	(958)	(763)	-	71	(1,650)
differences 1
Total Deferred tax liabilities	(648,028)	(156,642)	16,232	71	(788,367)
Total Deferred Tax	(640,451)	(155,924)	16,182	71	(780,122)
Asset/(Liabilities)
Reflected in our statement of financial position as follows:
Deferred tax assets	1,723	-	-	-	972
Deferred tax liabilities	(642,174)	-	-	-	(781,094)

1 The amount recognized in equity relates to the share-based payment transaction which reflects the excess of the tax deductibility above the cumulative

expense recognized in accordance with IFRS 2.

Net d

eferred tax liabilities as of December 31, 2022 amount to €780.1 million, of which €4.4 million relates to

recognized tax losses carried forward and €786.7 million relates to deferred tax liabilities arisen from investment

property.

Main changes impacting the deferred tax liabilities on investment property are a substantial increase of deferred

tax liabilities related to our investment property, due to changes in their fair values (see Notes 14 and 15) .

SHURGARD ANNUAL REPORT 2023

203

e movement in deferred tax assets and liabilities during the period ended December 31, 2023 is as follows:

		(Charged)/
		credited to
		the	Charged to
		statement	other	Credited
		of profit or	comprehensive	to
(in € thousands)	January 1, 2023	loss	income	equity	December 31, 2023
Deferred tax assets:
Tax loss carry-forwards	4,409	1,850	2	-	6,261
Deductible temporary	3,836	(1,481)	36	-	2,391
differences
Total Deferred tax assets	8,245	369	38	-	8,652
Deferred tax liabilities:
Investment property	(786,717)	83,484	(513)	-	(703,746)
Other taxable temporary	(1,650)	(1,151)	-	(50)	(2,851)
differences 1
Total Deferred tax liabilities	(788,367)	82,333	(513)	(50)	(706,597)
Total Deferred Tax	(780,122)	82,702	(475)	(50)	(697,945)
Asset/(Liabilities)
Reflected in our statement of financial position as follows:
Deferred tax assets	972	-	-	-	891
Deferred tax liabilities	(781,094)	-	-	-	(698,836)

1 The amount recognized in equity relates to the share-based payment transaction which reflects the excess of the tax deductibility above the cumulative

expense recognized in accordance with IFRS 2.

Net deferred tax liabilities as of December 31, 2023 amount to €697.9 million, of which €6.3 million relates to

recognized tax losses carried forward and €703.7 million relates to deferred tax liabilities arisen from investment

property.

Main changes impacting the deferred tax liabilities on investment property are:

• An increase of deferred tax liabilities related to our investment property, due to changes in their

fair values (see Notes 15 and 16); and

• A decrease of deferred tax liabilities related to the UK REIT conversion in March 2023.

Def

erred tax assets and liabilities expressed in euros were also influenced by the exchange rate variations for

the EUR/GBP, EUR/DKK and EUR/SEK conversion rates.

e Group recognized deferred tax assets arising from unused tax losses only to the extent that it is probable

that future taxable profit will be available or there are sufficient amounts of deferred tax liabilities against which

the tax losses can be utilized. The recognized deferred tax assets relating to unused tax losses amounted to

€6.3 million as of December 31, 2023.

For the period ended December 31, 2023, the Group has tax losses carried forward of €253.9 million (prior year:

€276.7 million), of which €42.2 million (prior year: €53.4 million) are subject to recapture rules. In total,

€211.7 million (prior year: €212.3 million) tax losses are available indefinitely for offsetting against future taxable

profits of the entities in which the losses arose.

SHURGARD ANNUAL REPORT 2023

204

o deferred tax assets have been recognized in respect of these losses, as currently it is not probable that

sufficient recurring future taxable profits will be available in the near future against which the Group can utilize

the losses.

If the Group were to recognize all unrecognized deferred tax assets, the profit would increase by €51.3 million

(prior year: €56.4 million).

No deferred tax liability was recognized on the unremitted earnings of subsidiaries. Management had no

intention to pay dividends or repatriate from its subsidiaries, and no tax is expected to be payable on them in

the foreseeable future. If all earnings were remitted, tax of €0.9 million for the period ended December 31, 2023

would be payable (€0.8 million for the year ended December 31, 2022).

As explained in Note 2, deferred tax assets and liabilities are measured at the tax rates that are expected to apply

to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have

been enacted or substantively enacted by the end of the reporting period.

UK REIT

During the first quarter of 2023, Shurgard Self Storage S.A. migrated to Guernsey and was incorporated as

Shurgard Self Storage Ltd pursuant to Guernsey law and became a UK REIT on March 1, 2023. Since then, central

management and control of the Group is exercised through the Board of Directors of Shurgard Self Storage Ltd

located in the United Kingdom.

UK REITs are exempt from UK corporation tax on rental profits and capital gains arising from their UK property

business. As a result, there are no temporary differences and deferred tax liabilities within the REIT rules

recognized per December 31, 2023.

he change to a UK REIT is considered as a change of tax status, in which case IFRS requires that current and

deferred tax consequences are recognized in profit and loss for the period. Consequently, the Group recognized

a tax benefit of €161.2 million during 2023, which significantly impacts the effective tax rate per December 31,

2023. Excluding this impact, the effective tax rate would have been 22.4%.

e directors are closely monitoring the requirements of being a UK REIT and Shurgard has complied with all

requirements to date. As a UK REIT, Shurgard is required to distribute 90% of its tax-exempt UK rental profits

(i.e., rental income from the UK property business). These profits form part of the total dividend the Group intends

to distribute to its shareholders.

Any other income and gains generated in the UK, which are not specifically derived from Shurgard’s UK property

rental activities, are part of the “residual business” and are subject to UK corporation tax rate of 25% (19% up

until April 1, 2023).

INTERNATIONAL TAX REFORM – PILLAR TWO MODEL RULES

The OECD/G20 Inclusive Framework on “Base Erosion and Profit Shifting” (“BEPS”) aims at addressing the

challenges arising from the digitalization of the global economy. To ensure that profits are taxed where economic

activities take place and value is created, the Inclusive Framework on BEPS proposes two so-called “pillars”:

SHURGARD ANNUAL REPORT 2023

205

• P

illar One applies to Multinational enterprises (“MNEs”) with global turnover above €20 billion and

profitability above 10% (i.e., profit before tax/revenue); while

• Pillar Two applies to MNEs with revenue in excess of €750 million per their consolidated financial

statements.

he Pillar Two “Global anti-Base Erosion” rules (“GloBE Rules”) in substance result in a system of top-up taxes

to ensure that the total amount of taxes paid by a MNE in a jurisdiction on its “Excess Profit” is at a minimum

rate.

uring July 2023, the government of the UK, being the country where the parent company of the Group is a tax

resident, enacted the implementation of the provisions of Pillar Two, which would be effective for the Group as

of January 1, 2024. Subsequently, several proposed amendments were published, which are subject to change

while passing through the parliamentary process and there is some uncertainty as to when the current draft bill

will be enacted into law.

elgium, Luxembourg, France, the Netherlands, Germany, Denmark and Sweden have all transposed the Pillar

Two rules in their local legislation per December 31, 2023, being effective for the Group as of January 1, 2024.

he Group is closely monitoring the legislative and administrative progress in the countries it is currently present,

to ensure it will be able to comply with the final legislation, with the uncertainties surrounding the Pillar Two

rules such as for example the basis on how revenue is determined in different jurisdictions.

Nonetheless, the Group has performed an assessment as regards (a) the transitional CbCR safe harbor relief rules

and (b) more detailed Pillar Two effective tax rate calculations of its potential exposure to Pillar Two, assuming

that it would surpass the revenue threshold of €750 million. This assessment is based on the most recent

financial information of the Group entities such as the latest available tax filings and the latest IFRS financial

information, determined as part of the preparation of the Group’s consolidated financial statements, for 2023,

considering only adjustments that would have been required or allowed applying the enacted legislation.

ased on an impact assessment performed, the following conclusions were drawn:

• No Top-Up tax should arise in the UK, because (i) Shurgard Self-Storage Ltd. should qualify as an

excluded entity as it is the ultimate parent of the Shurgard group and is the principal member of a

group UK REIT and (ii) each of Shurgard Self-Storage Ltd.’s UK subsidiaries should be regarded as

an investment entity as each is member of the Group UK REIT.

• The transitional CbCR safe harbour relief rules should be available for all jurisdictions outside the

UK.

• Furthermore, the Pillar Two effective tax rates in the jurisdictions in which the Group operates,

outside of the UK, are above 15%, where relevant.

Consequently, and based on the current legislator environment, the Group does not expect any material exposure

to Pillar Two top-up taxes. Note that as of December 31, 2023, the Group had unrecognized deferred tax assets,

mainly in connection with tax losses carried forward, for a total amount of approximately €53.8 million.

line with the amended IAS 12, Shurgard did not recognize or disclose any deferred tax assets or liabilities

related to Pillar Two.

SHURGARD ANNUAL REPORT 2023

206

11. SEGMENT INFORMATION

For earnings from investment property, discrete financial information is provided on an operating segment basis

to the CODM. The individual properties are aggregated into operating segments which are defined as the

individual countries where Shurgard owns or leases properties.

The same store facilities segment for a given year comprises stores in operations since more than three full years

as of January 1 of that year in case of self-developed properties or stores in operations for one full year as of

January 1 of that year in case the properties have been acquired. The non-same store facilities segment

comprises any other self-storage facilities that we operate.

The

operating segments (individual countries where the Group operates properties, split between same store

facilities and non-same store facilities) have been aggregated into two reportable segments which reflect the

significant components of our operations. Therefore, we present our self-storage operations in two reportable

segments: “the same store facilities” and “the non-same store facilities” because we believe that the individual

countries exhibit similar economic characteristics and the operations are similar with respect to their main

elements (e.g.: nature of products and services offered, the class of customers, the distribution method). On an

annual basis, the composition of the ‘same stores’ and ‘non-same stores’ changes based on the reclassification

of the stores from non-same stores to same stores in line with the period of operation. Following the change in

composition of its reportable segments, the Group presents comparative information consistent with the current

year classification as “same store” or “non-same” stores.

As of December 31, 2023, the Company operated 276 self-storage properties (267 self-storage facilities as of

December 31, 2022). Based on these criteria, 240 self-storage stores met the same store definition.

The non-same store facilities segment comprises any other self-storage facilities (36) that we have acquired or

self-developed.

yalty fee expense, valuation gain and loss from investment property and investment property under

construction, depreciation expense, acquisition costs on business combinations, general, administrative and

other expenses, gain/loss on disposal of investment property and assets held for sale, finance costs and income

tax expense are not reported to the CODM on a segment basis.

The CODM does not receive or review assets or liabilities on a segment basis. However, a breakdown of non-

current assets by country is nevertheless presented.

e below table sets forth segment data for the year ended December 31, 2023 and 2022 based on the 2023

same store/non-same store definition:

(in € thousands)	December 31, 2023	December 31, 2022
Same store facilities	329,595	316,574
Non-same store facilities	28,106	16,475
Property operating revenue	357,701	333,049
Same store facilities	222,829	211,512
Non-same store facilities	14,402	7,716
Income from property (NOI)	237,231	219,228

e following table sets forth the reconciliation of income from property (“NOI”) as presented in the above

segment table and Net income from real estate operations presented in consolidated statement of profit and

loss:

(in € thousands)	December 31, 2023	December 31, 2022
Income from property (NOI)	237,231	219,228
Add: Other revenue 1	222	2,241
Net income from real estate operations	237,453	221,469

1 Other revenue comprises management fee revenue from self storage and other income resulting from operations. For the year ended December 31, 2022, other revenue

included a €2.0 million compensation we received from the landlord of one of our German properties under leasehold that we abandoned at the end of November 2022 .

SHURGARD ANNUAL REPORT 2023

207

SEGMENT INFORMATION BY COUNTRY FOR THE YEAR ENDED DECEMBER 31, 2023

(in € thousands)	France	The	UK	Sweden	Germany	Belgium	Denmark	Total
		Netherlands
Same store facilities	78,241	71,362	64,332	44,642	28,340	26,890	15,788	329,595
Non-same store facilities	7,137	6,040	6,837	1,469	6,623	-	-	28,106
Property operating revenue	85,378	77,402	71,169	46,111	34,963	26,890	15,788	357,701
Same store facilities	50,000	50,858	40,395	31,978	20,062	18,232	11,304	222,829
Non-same store facilities	2,307	4,204	3,953	667	3,271	-	-	14,402
Income from property	52,307	55,062	44,348	32,645	23,333	18,232	11,304	237,231
Investment property	1,107,360	1,020,525	1,092,438	649,847	547,025	292,279	220,345	4,929,819
Investment property under construction	-	3,673	53,548	-	48,730	-	-	105,951
Property, plant and equipment and intangible assets	413	127	110	95	149	9,245	-	10,139
Deferred tax assets	-	-	74	2	760	55	-	891
Other non-current assets 1	849	279	122	37	5,082	2,591	17	8,977
Non-current assets	1,108,622	1,024,604	1,146,292	649,981	601,746	304,170	220,362	5,055,777

1 Other non-current assets for Germany as of December 31, 2023 includes €5.0 million that we paid in escrow for an acquisition we plan to finalize in the first half of 2024. The reduction in Other non-current assets for the Netherlands compared to

December 2022 is due to the reclassification during FY 2023 of €9.6 million receivable from the sale of one of our Dutch properties to Other current assets. We will recover the amount when we vacate the building, which is estimated to occur in the

first half of 2024.

SHURGARD ANNUAL REPORT 2023

208

SEGMENT INFORMATION BY COUNTRY FOR THE YEAR ENDED DECEMBER 31, 2022

(in € thousands)	France	The	UK	Sweden	Germany	Belgium	Denmark	Total
		Netherlands
Same store facilities	75,327	65,820	61,207	48,327	25,471	25,033	15,389	316,574
Non-same store facilities	4,268	2,899	4,686	112	4,510	-	-	16,475
Property operating revenue	79,595	68,719	65,893	48,439	29,981	25,033	15,389	333,049
Same store facilities	47,552	46,149	38,685	34,983	17,167	16,346	10,630	211,512
Non-same store facilities	1,212	2,064	2,525	48	1,867	-	-	7,716
Income from property	48,764	48,213	41,210	35,031	19,034	16,346	10,630	219,228

Non-current assets as of December 31, 2022

Investment property	1,040,689	894,516	980,742	641,609	426,466	277,131	208,419	4,469,572
Investment property under	12,164	8,630	26,104	-	7,319	-	-	54,217
construction
Property, plant and equipment and intangible assets	480	253	78	162	234	8,251	8	9,466
Deferred tax assets	-	384	-	28	-	560	-	972
Other non-current assets	705	9,819	161	33	8	584	16	11,326
Non-current assets	1,054,038	913,602	1,007,085	641,832	434,027	286,526	208,443	4,545,553

SHURGARD ANNUAL REPORT 2023

209

12. ACQUISITION OF PROPERTIES

2022 ACQUISITIONS

In the first six months of 2022, the Group acquired a self-storage property in the UK.

In the second half of 2022, the Group acquired two self-storage properties in the Netherlands, one property in

France, and three properties in Sweden. As part of the transaction the Group acquired other net current assets

for €0.2 million.

These acquisitions have been accounted for as acquisitions of assets, with the acquisition cost (total of

€80.3 million, including €3.8 million of capitalized transaction costs) being allocated to the individual identifiable

assets and liabilities (if any) based on their relative fair values at the date of purchase.

2023 ACQUISITIONS

In the second half of 2023, the Group acquired in Germany five operating self-storage properties, two properties

under development and a parcel of land held for sale. As part of the transaction the Group acquired other net

current assets for €0.3 million.

This acquisition has been accounted for as acquisitions of assets, with the acquisition cost (total of €69.1 million,

including €1.1 million of capitalized transaction costs, €0.5 million assets subsequently classified as held for sale

and €0.3 million other assets and liabilities) being allocated to the individual identifiable assets and liabilities (if

any) based on their relative fair values at the date of purchase.

13. EARNINGS PER SHARE (“EPS”)

The table below provides a summarized overview of the Company’s Earnings per share:

(in € thousands, except for earnings per share)	December 31, 2023	December 31, 2022
Earnings per share (basic) €	5.91	6.45
Earnings per share (diluted) €	5.89	6.40

The basis of calculation of each of the above measures set out above, are illustrated below.

ARNINGS PER SHARE

The following tables reflect the income and share data used in the basic and diluted EPS computations:

(in € thousands, except for shares and earnings per share)	December 31, 2023	December 31, 2022
Profit attributable to ordinary equity holders of the parent	533,313	574,284
for basic earnings
Weighted average number of ordinary shares for basic EPS	90,213,362	89,096,132
Earnings per share (basic) €	5.91	6.45

SHURGARD ANNUAL REPORT 2023

210

ffect of dilution:

(in € thousands, except for shares and earnings per share)	December 31, 2023	December 31, 2022
Profit attributable to ordinary equity holders of the parent	533,313	574,284
for dilutive earnings
Weighted average number of ordinary shares for basic EPS	90,213,362	89,096,132
Dilutive effect from share options	317,682	610,056
Weighted average number of ordinary shares adjusted for the effect of dilution	90,531,043	89,706,188
Earnings per share (diluted) €	5.89	6.40

here have been no other transactions involving ordinary shares or potential ordinary shares between the

reporting date and the date of authorization of these financial statements.

SHURGARD ANNUAL REPORT 2023

211

14. INVESTMENT PROPERTY AND INVESTMENT PROPERTY UNDER

CONSTRUCTION

The table below sets forth the movement in completed investment property and investment property under

construction.

		Investment	Total	Investment
	Completed	property	completed	property		Total
	investment	ROU	investment	under		investment
	property	assets	property	construction		property
(in € thousands)	Level 3	Level 3	Level 3	Level 3 ( 2 )		Level 3
December 31, 2022
As of January 1, 2022	3,734,195	83,040	3,817,235	29,832		3,847,067
Exchange rate differences	(98,947)	(1,726)	(100,673)	(862)		(101,535)
Addition of ROU assets 1	-	12,001	12,001	-		12,001
Remeasurement of ROU assets 1	-	5,455	5,455	-		5,455
Transfers for new development	51,654	-	51,654	(51,654)		-
Capital expenditure 3	37,105	-	37,105	75,472		112,577
Acquisition of investment property 4	76,310	-	76,310	-		76,310
Disposals	(14,267)	-	(14,267)	-		(14,267)
Net gain (loss) of fair value adjustment	588,311	(3,559)	584,752	1,429		586,181
As of December 31, 2022	4,374,361	95,211	4,469,572	54,217		4,523,789
December 31, 2023
As of January 1, 2023	4,374,361	95,211	4,469,572	54,217		4,523,789
Exchange rate differences	21,125	205	21,330	643		21,973
Addition of ROU assets 1	-	833	833	-		833
Remeasurement of ROU assets 1	-	13,671	13,671	-		13,671
Transfers for new development	43,081	-	43,081	(43,081)		-
Capital expenditure	49,888	-	49,888	63,930		113,818
Acquisition of investment property 4	57,900	-	57,900	9,436		67,336
Net gain (loss) of fair value adjustment	277,087	(3,543)	273,544	20,806	294,350(	5 )
As of December 31, 2023	4,823,442	106,377	4,929,819	105,951		5,035,770

1 At initi

al recognition, the Right of Use (ROU) assets are recognized for an equal amount as the related lease liabilities. Remeasurements of ROU assets mainly

consist of the effect of yearly indexations of our lease agreements.

2 The Group measures its investment property under construction at cost where cost is deemed to be a reasonable approximation of fair value.

As of December 31, 2023, investment property under construction includes €89.9 million that are measured at fair value and €16.0 million that are measured

at cost, as a reasonable approximation of fair value.

3 For the year ended December 31, 2023, capital expenditure includes €4.2 million capitalized internal time spent and €2.2 million capitalized interest and €1.1

million capitalized transaction costs we incurred on our acquisition.

For the year ended December 31, 2022, capital expenditure included €3.8 million capitalized internal time spent, €1.3 million capitalized interest and €2.8

million capitalized transaction costs we incurred on our acquisitions.

4 In 2023, we acquired five self-storage facilities and two facilities under development located in Germany, with an IP and IPUC value of €67.1 million. This

acquisition has been accounted for as acquisition of assets, whereby the cost of the acquisition has been allocated to the individual identifiable assets and

liabilities based on their relative fair values at the date of purchase (See Note 1 and Note 12)

In accordance with the agreed terms and conditions, the Company paid in 2023 a €0.2 million supplement on the purchase price it paid for properties that it

acquired in Sweden in the last quarter of 2022.

5 Valuation gain from investment property and investment property under construction and gain on disposal of €294,350 for 2023 presented in our consolidated

statement of profit and loss includes €1 gain on disposal of ROU assets.

SHURGARD ANNUAL REPORT 2023

212

Recon

ciliation of completed investment property and investment property under construction values calculated

by our external valuer with value of completed investment property and investment property under construction

disclosed for financial reporting purposes:

(in € thousands)	December 31, 2023	December 31, 2022
Market value of completed investment property and investment	4,910,375	4,353,121
property under construction estimated by the external valuer
Properties acquired valued at their acquisition cost	-	53,726
Projects under pre-development valued at historical cost	16,042	18,642
Addition of lease obligations recognized separately	2,976	3,089
Fair value for financial reporting purposes 1	4,929,393	4,428,578

1 Fair values for financial reporting purposes exclude Investment property ROU assets (€106.4 million in 2023 and €95.2 million in 2022).

Using the Discounted Cash Flows (“DCF”) method, fair value is estimated using assumptions regarding the

benefits and liabilities of ownership over the asset’s life including an exit or terminal value. This method involves

the projection of a series of cash flows on a real estate property interest. To this projected cash flow series, an

appropriate, market derived discount rate is applied to establish the present value of the income stream

associated with the asset. Finally, an exit yield is determined, which differs from the discount rate to determine

any terminal value, if any.

The du

ration of the cash flow and the specific timing of inflows and outflows are determined by events such as

rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is

typically driven by market behavior that is a characteristic of the class of real estate property. Periodic cash flow

is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives,

maintenance cost, agent and commission costs and other operating and management expenses. The series of

periodic net operating income, along with an estimate of the terminal value anticipated at the end of the

projection period, if any, is then discounted.

Except for the valuation of the Investment Property right-of-use asset, the valuations were performed by

Cushman and Wakefield (”C&W”), an accredited independent valuer with a recognized and relevant professional

qualification and with recent experience in the locations and categories of the investment property being valued.

The valuation models in accordance with those recommended by the International Valuation Standards

Committee have been applied and are consistent with the principles in IFRS 13 for the period ended December

31, 2023 as compared to the year ended December 31, 2022.

15. FAIR VALUE MEASUREMENT – INVESTMENT PROPERTY

C&W’s external valuation has been carried out in accordance with the RICS Valuation – Global Standards which

incorporate the International Valuation Standards (“IVS”), published by The Royal Institution of Chartered

Surveyors (“the RICS Red Book”). The valuation of each of the investment properties and the investment

properties under construction has been prepared on the basis of Fair Value as a fully equipped operational entity,

having regard to trading potential (as appropriate).

VALUE

R DISCLOSURE REQUIREMENTS

C&W’s valuation has been provided for reporting purposes and as such, is a Regulated Purpose Valuation as

defined in the Red Book. In compliance with the disclosure requirements of the Red Book, C&W has confirmed

that:

SHURGARD ANNUAL REPORT 2023

213

• C&W ha

s carried out bi-annual valuations for this purpose in an independent way since the

financial year ending December 31, 2015;

• In relation to the preceding financial year of C&W, the proportion of the total fees payable by the

Group to the total fee income of the firm is less than 5.0%; and

• The fee payable to C&W is a fixed amount per property and is not contingent on the appraised

value.

Outs

ide of the subject portfolio, C&W has, and may continue to do so going forward, provided Shurgard with

valuation advice in relation to potential acquisitions.

MARK

ET CONDITIONS AND UNCERTAINTY

Our valuation is not reported as being subject to “material valuation uncertainty” as defined by VPS 3 and VPGA

10 of the RICS Valuation – Global Standards.

CURRENCY AND AGGREGATE VALUES REPORTED

C&W’s valuation report confirms that each property has been valued individually in local currency. C&W’s

valuation report then converts each property valuation to a euro amount at the spot exchange rates provided by

the Company. The total value reported in euro is the aggregate amount for each individual value reported in euro.

VALUA

TION METHODOLOGY AND ASSUMPTIONS

C&W has adopted different approaches for the valuation of the leasehold and freehold assets as follows:

FREEHOLD AND LONG LEASEHOLD

The valuation is based on a discounted cash flow of the net operating income over a 10-year period and a

notional sale of the asset at the end of the tenth year.

Assump

tions:

The following assumptions have been applied by C&W for the valuation of our investment properties for the

periods concerned:

	December 31, 2023	December 31, 2022
Stabilized occupancy 1	91.39%	91.14%
Average time to stabilization 1 (months)	6.41	4.77
Weighted average exit capitalization rate 2	5.22%	5.19%
Weighted average annual discount rate 3	8.27%	8.21%
Average rental growth rate year 1 4	2.57%	2.57%

1 Stab

ilized occupancy is the projected occupancy level once stores reach maturity, weighted by rentable sqm and excluding IPUC.

2 The exit capitalization rate comprises prime cap rates based on observed market transactions, adjusted for property specific elements such as tenure, location,

condition of building, etc. The exit capitalization rate is applied to year 10 cash flows in determining the terminal value of each property.

3 Pre-tax discount rate used to discount the future cash flows of each property.

4 Average rental growth rate year 1 is the average projected rental growth of all properties for the year following the reporting period.

On December 31, 2023, the increase in fair value of investment properties was mainly driven by an increase of

our operating cash flows, combined with capital expenditures during the year of €113.8 million.

Purchaser’s costs in the range of approximately 6% to 12.5% have been assumed initially, reflecting the stamp

duty levels anticipated in each local market, and sales plus purchaser’s costs totaling approximately 6% to 12.5%

are assumed on the notional sales in the tenth year in relation to freehold and long leasehold stores. Both

assumptions are unchanged compared to December 31, 2022.

SHURGARD ANNUAL REPORT 2023

214

HORT LEASEHOLDS

The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is

assumed but the discounted cash flow continues until the expiry of the lease.

he Group operates a number of short leases where there is an assumption that the Group has the sole discretion

and will extend the current agreements for a significant number of years. These have been valued on the same

basis as the freehold and long leasehold assets due to their security of tenure arrangements and the potential

compensation provisions in the event of the landlord wishing to take possession at expiry. The capitalization

rates on these properties reflect the risk not extending the lease at expiration date.

NVESTMENT PROPERTIES UNDER CONSTRUCTION

C&W has valued the properties in development using the same methodology as set out above but based on the

cash flow projection expected for the property at opening and allowing for the outstanding costs to take each

property from its current state to completion and full fit out. C&W has allowed for carry costs and construction

contingency, as appropriate.

HANGES IN VALUATION TECHNIQUES

There were no other changes in valuation techniques during the periods concerned.

IGHEST AND BEST USE

For all investment property that is measured at fair value, the current use of the property is considered the

highest and best use.

FAIR VALUE HIERARCHY

Based on the significant unobservable inputs to the DCF method used for determining the fair value of all our

investment property and investment property under construction that we recognized in our statement of

financial position as of December 31, 2023 and 2022, our investment property is a Level 3 fair market value

measurement, and for the periods concerned, there have been no transfers to or from Level 3.

he geographical split of our investment property and investment property under construction is set forth in

Note 11.

Unrealized gains and (losses) for recurring fair value measurements relating to investment property and

investment property under construction held at the end of the reporting period categorized within Level 3 of the

fair value hierarchy amount to €294.4 million in 2023 and €586.2 million in 2022 and are presented in the

consolidated statement of profit and loss in the line-item “Valuation (loss) gain from investment property and

investment property under construction”.

SHURGARD ANNUAL REPORT 2023

215

ENSITIVITY OF THE VALUATION TO ASSUMPTIONS

All other factors being equal, higher net operating income would lead to an increase in the valuation of a property

and an increase in the capitalization rate or discount rate would result in a lower valuation, and vice versa. Higher

assumptions for stabilized occupancy, absorption rate, rental rate and other revenue, and a lower assumption

for operating costs, would result in an increase in projected net operating income, and thus an increase in

valuation.

or the year ended December 31, 2023, all other factors being equal, the effect of changes in the following key

variables on the valuation of our property portfolio is as follows:

(in € thousands)	Amount increase	% change
	(decrease) valuation
One hundred basis points increase in occupancy rates	80,556	1.6%
One hundred basis points decrease in occupancy rates	(72,228)	-1.5%
Twenty- five basis points increase (real) in both discount and capitalization rate	(213,052)	-4.3%
Twenty-five basis points decrease (real) in both discount and capitalization rate	236,095	4.8%
One hundred basis points increase in average rental growth rates	91,683	1.9%
One hundred basis points decrease in average rental growth rates	(125,774)	-2.6%

For the year ended December 31, 2022, all other factors being equal, the effect of changes in the following key

variables on the valuation of our property portfolio is as follows:

	Amount increase	% change
(in € thousands)	(decrease) valuation
One hundred basis points increase in occupancy rates	51,194	1.2%
One hundred basis points decrease in occupancy rates	(51,360)	-1.2%
Twenty- five basis points increase (real) in both discount and capitalization rate	(254,330)	-5.8%
Twenty-five basis points decrease (real) in both discount and capitalization rate	265,540	6.1%
One hundred basis points increase in average rental growth rates	103,940	2.4%
One hundred basis points decrease in average rental growth rates	(113,450)	-2.6%

SHURGARD ANNUAL REPORT 2023

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16. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Property, plant and equipment mainly consists of building improvements and office machinery and equipment

in use in the local head offices located in the countries in which we operate.

				Total
				property,
			ROU	plant and	Intangible
(in € thousands)	Building 1	Equipment 1	assets 2	equipment	assets 3
Historical cost
As of January 1, 2023	1,578	5,663	3,613	10,854	17,953
Additions	-	117	623	740	3,304
Remeasurements	-	-	22	22	-
Disposals	-	-	(206)	(206)	(3,385)
Exchange rate differences	-	1	2	3	-
As of December 31, 2023	1,578	5,781	4,054	11,413	17,872
Depreciation and impairment
As of January 1, 2023	(724)	(5,238)	(2,155)	(8,117)	(11,224)
Depreciation and amortization charge of the period	(57)	(257)	(687)	(1,001)	(2,376)
Disposals	-	-	190	190	3,385
Exchange rate differences	(1)	(1)	(1)	(3)	-
As of December 31, 2023	(782)	(5,496)	(2,653)	(8,931)	(10,215)
Net book value
As of December 31, 2023	796	285	1,401	2,482	7,657
As of January 1, 2023	854	425	1,458	2,737	6,729

1 Building and equipment mainly consists of building improvements and office machinery and equipment in use in the local head offices located in the countries in which

we operate.

2 Right-of-use assets mainly relates to company cars and offices we lease. These assets were recognized in exchange for an equal amount of additional lease liabilities.

3 Intangible assets consists of capitalized computer software .

17. OTHER NON-CURRENT ASSETS

Other non-current assets mainly consists of deposits paid to vendors, capitalized pre-acquisition expense and

the unamortized non-current portion of capitalized debt financing cost incurred in connection with the revolving

syndicated loan facility and the term loan facility (see Note 26).

of December 31, 2022, other non-current assets included a €9.6 million receivable resulting from the sale in

the first half of 2022 of one of our Dutch properties. During 2023, the receivable has been reclassified to other

current assets due to its maturity in the first half of 2024.

of December 31, 2023, other non-current assets includes €5.0 million we paid in escrow for an acquisition we

will complete in the first half of 2024 and €1.8 million of debt financing cost we incurred in connection with the

term loan facility we entered into in April 2023.

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18. TRADE AND OTHER RECEIVABLES

(in € thousands)	December 31, 2023	December 31, 2022
Gross amount	26,215	23,895
Provision for doubtful debt	(6,485)	(5,224)
Trade and other receivables	19,730	18,671

Rent and service charge receivables are non-interest-bearing and are typically due within thirty days (Note 34).

The receivables are due from local retail and business tenants.

e following table sets forth the movement of our provision for doubtful debt:

(in € thousands)	FY 2023	FY 2022
As of January 1	5,224	7,783
Movement provision in P&L	4,571	4,121
Write-off doubtful debt	(3,438)	(6,547)
Other	106	(3)
Exchange gain (loss)	22	(130)
As of December 31	6,485	5,224

19. OTHER CURRENT ASSETS

(in € thousands)	December 31, 2023	December 31, 2022
Prepayments 1	4,616	3,997
Receivables from tax authorities other than VAT	3,164	1,321
Other current assets 2	11,942	2,944
Other current assets	19,722	8,262

1 As of December 31, 2023 and 2022, Receivables from tax authorities other than VAT consists of prepaid income taxes for 2023 and 2022, respectively.

2 Other current assets includes inventories, recoverable VAT and other. The increase during the year ended December 31, 2023 is mainly attributable to the

reclassification of a €9.6 million receivable resulting from the sale of one of our Dutch properties formerly presented as other non-current assets (Note 17).

20. CASH AND CASH EQUIVALENTS

Cash and cash equivalents primarily consist of cash and cash on deposit. Short-term deposits are made for

varying periods of between one week and three months, depending on immediate cash requirements of the

Group, and earn interest at the respective short-term deposit rates.

(in € thousands)	December 31, 2023	December 31, 2022
Cash at banks and on hand	64,292	77,629
Short-term deposits	193,826	9,716
Cash and cash equivalents	258,118	87,345

ere are no cash and cash equivalents which are restricted from withdrawal or general corporate use as of

December 31, 2023 and December 31, 2022.

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21. ISSUED SHARE CAPITAL

As of December 31, 2022, the share capital of the Company as presented in the statement of financial position

of €63,610,156 was represented by 89,131,131 ordinary shares of no par value that all have been fully paid up.

On November 14, 2023, the Group issued 8,163,265 new ordinary shares settled in cash at a subscription price

per share of €36,75. Of the €299,999,989 subscription price, €5,825,872 has been allocated to share capital and

the remainder has been allocated to share premium.

During 2023, the Group issued 17,500 new shares to satisfy the exercise of stock options under the Group’s 2018

stock option plan. Of the €402,500 subscription price, €12,490 has been allocated to share capital and the

remainder has been allocated to share premium.

As of December 31, 2023, the share capital of the Company as presented in the statement of financial position

of €69,448,518 is represented by 97,311,896 ordinary shares that all have been fully paid up.

22. SHARE PREMIUM

As of December 31, 2022, the share premium of the Company amounts to €540,087,442.

On November 14, 2023, in connection with the issuance of 8,163,265 new ordinary shares, the share premium

was increased by €294,174,117, representing the part of the subscription price of the issuance of new shares that

has not been allocated to share capital and reduced by €2,709,648 for equity issuance costs incurred. In addition,

on the transaction we incurred €213,637 cost for listing the new shares that has been expensed.

During 2023, in connection with the issuance of 17,500 new ordinary shares, the share premium was increased

by €390,010, representing the part of the subscription price of the issuance of new shares that has not been

allocated to share capital and reduced by €2,403 for equity issuance costs incurred.

As of December 31, 2023, the share premium of the Company amounts to €831,939,518.

The share capital account and the share premium account taken together constitute the "share capital account"

under section 294 of the Companies (Guernsey) Law, 2008.

23. SHARE-BASED PAYMENT RESERVE

As of December 31, 2022, the share-based payment reserve of the Company amounts to €8,561,867.

During the year ended December 31, 2023, we recognized a share-based compensation expense of €4,286,359

for our 2021 equity-settled share-based compensation plan in share-based payment reserve, and we allocated

€49,800 in deferred income tax liabilities to our share-based payment reserve.

As of December 31, 2023, the share-based payment reserve of the Company amounts to €12,798,426.

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24. DISTRIBUTABLE RESERVES AND DISTRIBUTIONS MADE

As of December 31, 2022, the Company’s distributable reserves are €146,277,202.

On May 10, 2023, the Annual Shareholders Meeting of Shurgard Self Storage Ltd allocated €430,850,000 retained

profits to the distributable reserves.

On May 24, 2023, the Company paid €52,58 7,368 dividend in connection with the distribution of a final dividend

of 2022 of €0.59 per outstanding share.

On October 5, 2023, the Company paid €51,705,04 6 dividend in connection with the distribution of a half-year

dividend of 2023 of €0.58 per outstanding share.

As of December 31, 2023, the Company’s distributable reserves are €472,834,788.

25. NON-CONTROLLING INTERESTS

Non-controlling interests represent 5.2% ownership interests in our German subsidiaries First Shurgard

Deutschland GmbH and Second Shurgard Deutschland GmbH, which own in total 13 properties (13 properties at

the end of 2022) in Germany. We allocated €1.1 million and €1.3 million of net income to non-controlling interests

during the years ended December 31, 2023 and 2022, respectively, based upon their respective interests in the

net income of the subsidiaries.

uring the period starting January 1, 2022 and ending December 31, 2023, there were no transactions with non-

controlling interests.

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26. INTEREST-BEARING LOANS AND BORROWINGS

(in € thousands)	Effective	Maturity	December 31, 2023	December 31, 2022
	i nterest rate
Non-current
Senior guaranteed notes – issued July 2014	3.24%	July 24, 2024	100,000	100,000
Senior guaranteed notes – issued July 2014	3.38%	July 24, 2026	100,000	100,000
Senior guaranteed notes – issued June 2015	2.67%	June 25, 2025	130,000	130,000
Senior guaranteed notes – issued June 2015	2.86%	June 25, 2027	110,000	110,000
Senior guaranteed notes – issued June 2015	3.03%	June 25, 2030	60,000	60,000
Senior notes – issued July 2021	1.28%	July 23, 2031	300,000	300,000
Nominal values			800,000	800,000
Less:
Unamortized balance of debt issuance cost on notes issued			(1,609)	(2,020)
Borrowings as reported on statement of financial position			798,391	797,980

The reported borrowings are presented as follows in our statement of financial position:

(in € thousands)	December 31, 2023	December 31, 2022
Borrowings as reported on statement of financial position	798,391	797,980
Non-current portion	698,441	797,980
Current portion	99,950	-
Weighted average cost of debt	2.36%	2.36%

OTES ISSUED

On July 24, 2014, the Group, via its financing entity Shurgard Luxembourg S.à.r.l., issued to certain European and

U.S. investors three tranches of senior guaranteed notes. The Company paid €2.3 million of placement and legal

fees and other expenses that are being amortized as interest expense using the effective interest method. As of

December 31, 2023, and 2022, the unamortized balances of the debt financing costs on the 2014 Issuance were

€0.2 million and €0.4 million, respectively.

On June 25, 2015, the Group, via its financing entity Shurgard Luxembourg S.à.r.l., issued to certain European and

U.S. investors three tranches of senior guaranteed notes. The Company paid €1.4 million of placement and legal

fees and other expenses that are being amortized as interest expense using the effective interest method. As of

December 31, 2023, and December 31, 2022, the unamortized balances of the debt financing costs on the 2015

Issuance were €0.4 million and €0.6 million, respectively.

On July 23, 2021, the Group, via its financing entity Shurgard Luxembourg S.à.r.l., issued new ten years Green

Notes for €300.0 million bearing fixed interest of 1.24% per annum (effective interest rate of 1.28% per annum).

The Company paid €1.2 million of placement and legal fees and other expenses that are being amortized as

interest expense using the effective interest method.

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221

As of December 31, 2023, and December 31, 2022, the unamortized balances of the debt financing costs on the

2021 Senior Notes Issuance was €1.0 million and €1.1 million, respectively.

he senior guaranteed notes (both principal amount and interest payments) are denominated in euro.

REVOLVING SYNDICATED LOAN FACILITY

As of December 31, 2023 and December 31, 2022, the Company has access to 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) with maturity of October 16, 2025, bearing interest of Euribor plus a margin varying between 0.45%

and 0.95% per annum dependent on the most recent loan-to-value ratio (the “RCF”). There are no mandatory

repayments of principal debt due for this facility before its maturity and a commitment fee of 35% of the

applicable margin (or 0.16% per annum for the period ended December 31, 2023 and the year ended December

31, 2022) applies to undrawn amounts.

As of December 31, 2023 and December 31, 2022, the Company had no outstanding borrowings under this facility.

During the period ended December 31, 2023, the Company incurred commitment fees of €398,125 on the

revolving syndicated loan facility (€400,313 in the year ended December 31, 2022). See Note 9.

SHELF NOTES FACILITY

On February 23, 2021, the Group entered into an uncommitted Shelf Note Facility for an amount of up to €250

million, which can be drawn during a three-year period. As of December 31, 2023 and December 31, 2022, the

Company had no outstanding borrowings under this facility.

TERM LOAN FACILITY

On April 28, 2023 and effective the same date, the Company, through its subsidiary Shurgard Luxembourg S.à.r.l.

entered into a committed €450 million term loan facility agreement with BNP Paribas Fortis Bank NV/SA (acting

also as agent), Belfius Bank SA/NV, ABN Amro Bank NV, KBC Bank NV/SA and Banque International à

Luxembourg SA with a maturity of three years, which can be extended at the option of the Company by an

additional period of up to two years (resulting in a maximum tenor of five years) subject to certain conditions

being met (including agreement of the lenders).

The Term Loan Facility is bearing interest of Euribor plus a margin varying between 1.20% and 1.75% per annum

dependent on the most recent loan-to-value ratio, or external rating, if any.

The term loan facility under the Facility Agreement is available for drawing by the Company for a period of 12

months as from signing.

he terms and conditions of the Facility Agreement are substantially based on the existing revolving facility

agreement entered into by the Company on September 26, 2018 (as amended from time to time) and otherwise

contain terms and conditions which are consistent with market practice.

The financial covenants and baskets are substantially aligned with the financial covenants and baskets included

in the note purchase agreement entered into by the Company on February 23, 2021 in connection with the US

private placement of senior notes due July 23, 2031.

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222

On October 2, 2023, the Company has drawn €160 million on the facility. The loan has been repaid on December

18, 2023 with the proceeds of the equity issuance (Note 21). As of December 31, 2023, our borrowing capacity

under the term loan facility is €290 million. During the year ended December 31, 2023, we incurred €2.6 million

interest on the borrowed amount.

As of December 31, 2023, we had no outstanding borrowings under this facility, and the commitment fee on the

undrawn amount was equal to 35% of the applicable margin, or 0.42%.

During the year ended December 31, 2023, the Company incurred €2.6 million arrangement, commitment and

legal fees of which €0.8 million has been expensed in connection with the €160 million loan we early repaid, and

€1.8 million have been recorded as other non-current assets (Note 17), as the Group expects drawing on the

remainder of the facility in the foreseeable future.

ARENT GUARANTOR AND COVENANTS

The full and prompt performance and observance by Shurgard Luxembourg S.à.r.l. of all its obligations under the

2014, 2015 and 2021 note purchase agreements, the revolving syndicated loan facility and the term loan facility

is unconditionally guaranteed by Shurgard Self Storage Ltd as Parent Guarantor pursuant to the terms and

conditions provided for under the respective note purchase agreements.

The 2014, 2015 and 2021 Issuances, the revolving credit facility and the term loan facility are subject to certain

customary covenants, including senior leverage, fixed charge cover or fixed interest cover and unencumbered

asset value to total unsecured liabilities (2014 and 2015 Notes Issuances only) that we test for compliance on a

quarterly basis. As of December 31, 2023, and December 31, 2022, we are in compliance with all such covenants.

27. LEASES

Shurgard leases various investment properties with an aggregate fair value of €825.4 million as of December 31,

2023 (€703.2 million as of December 31, 2022).

The Company repaid in 2023 €4.3 million in lease liabilities, paid €3.6 million in interest expense on lease

liabilities and €0.4 million in lease amounts for contracts with maturity of less than one year and low-value

leases, representing a total cash outflow of €8.3 million (a total cash outflow of €7.8 million in 2022). The expense

relating to short-term leases, low value leases and variable lease payments not included in the measurement of

the lease liabilities is not material for 2023 or any future years for us. There are no material lease commitments

for leases not commenced at year-end.

he lease contracts where Shurgard is acting as lessor consist of month-to-month rental agreements that are

classified as operating leases. Rental revenues do not include material contingent rental income.

or the other relevant information regarding our leases, we refer to Notes 14 (for right-of-use assets classified

as investment property), 16 (for right-of-use assets classified as property, plant and equipment) and 27

(movement schedule of the lease liability).

SHURGARD ANNUAL REPORT 2023

223

28. ANALYSIS OF MOVEMENTS IN INTEREST-BEARING LOANS

AND BORROWINGS

The below tables provide an analysis of financial debt and movements in financial debt for each of the periods

presented.

	Interest-bearing loans and
(in € thousands)	borrowings	Lease obligations	Total financial debt
January 1, 2022	797,579	88,368	885,947
Repayments of debt	-	(4,591)	(4,591)
Interest payments	(18,757)	(2,852)	(21,609)
Addition of lease obligations (net)	-	17,778	17,778
Non-cash movements 1	19,158	1,119	20,277
December 31, 2022	797,980	99,822	897,802
	Interest-bearing loans and
(in € thousands)	borrowings	Lease obligations	Total financial debt
January 1, 2023	797,980	99,822	897,802
Draw down on term loan facility	160,000	-	160,000
Repayments of debt	(160,000)	(4,341)	(164,341)
Interest payments	(20,511)	(3,585)	(24,096)
Addition of lease obligations (net)	-	15,132	15,132
Non-cash movements 1	20,922	3,788	24,710
December 31, 2023	798,391	110,816	909,207

1 Non-cash movements for the years ended December 31, 2023 and December 31, 2022 mainly consist of accrued interest.

29. OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consist of VAT due after more than one year.

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224

30. TRADE AND OTHER PAYABLES AND DEFERRED REVENUE

Trade and other payables and deferred revenue:

(in € thousands)	December 31, 2023	December 31, 2022
Accrued compensation and employee benefits	10,461	9,955
Accrued share-based compensation expense 1	411	510
Accounts payable (including accrued expenses)	61,730	56,072
Payables to affiliated companies	1,122	1,144
Deferred revenue – contract liabilities	34,832	32,456
Accrued interest on notes issued and other external	2,033	1,820
borrowings
Other payables 2	7,585	4,574
Trade and other payables and deferred revenue	118,174	106,531

1 See Note 32.

2 Other payables consist of VAT payable and deposits received from customers.

31. PENSIONS

DEFINED CONTRIBUTION PLANS

For each of the years ended December 31, 2023 and December 31, 2022, the Group incurred €1.2 million pension

plan expense. These amounts are included in property operating expenses or general, administrative and other

expenses in our consolidated statements of profit and loss.

The

Company operates a Belgian pension plan that while structured as a defined contribution plan requires to

be accounted for as a defined benefit plan in accordance with IAS 19.

ring the years ended December 31, 2023 and December 31, 2022, we contributed €0.6 million and €0.5 million,

respectively, to a third-party insurance company. We expect to contribute in 2024 the same amount as in 2023.

The insurance company invests the majority of its funds in sovereign and corporate bonds and provides a

guaranteed investment return on these funds. Investment decisions are based on strategic asset allocation

studies and risk management best practices.

As of December 31, 2023, the defined benefit obligation amounted to €8.5 million (€6.8 million as of

December 31, 2022), offset by plan assets of €8.8 million as of December 31, 2023 (€7.0 million as of December

31, 2022).

For former plan participants with deferred pension rights, the defined benefit obligation equals plan assets. The

weighted average assumptions used to determine net benefit obligations for our pension plans were as follows :

(in € thousands) December 31, 2023 December 31, 2022

Discount rate 3.20% 3.70%

Inflation 2.20% 2.20%

Rate of salary increases 3.20% 3.20%

Mortality tables MR-5/FR-5 MR-5/FR-5

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225

32. SHARE-BASED COMPENSATION EXPENSE

Under various share option plans, the Group granted to a number of employees stock options of the parent entity.

The exercise prices equal the fair values of the share at the respective grant dates. The terms of these grants

were established by our Board of Directors:

• U

nder the 2017 long-term incentive plan, the stock options vested ratably over a four-year period

and expire ten years after the grant date.

• Stock options granted under the 2018 equity compensation plan had a three-year cliff vesting

period and expire ten years after the grant date.

• Stock options granted under the 2021 equity compensation plan have a two-stage vesting period

with (i) 60% of the stock options vesting after three years after the date they are being offered;

and (ii) the remaining 40% of the stock options will vest after a period of five years after the date

they are being offered. They expire ten years after the grant date.

one of the share-based compensation plans have performance conditions and all plans are accounted for as

equity-settled awards and do not contain any cash settlement alternatives. Further details are described in the

Remuneration Report on page 154 and following.

The following weighted average assumptions were used to determine the fair value of the options that are

outstanding as of December 31, 2023 for the options granted under the 2017 and 2018 plans:

	2017 grants	2018 grants
Estimated fair value of Shurgard shares	€23.00	€26.50
Expected volatility	20.00%	20.00%
Risk free interest rate	-0.08%	0.11%
Expected remaining term (in years)	6.0	7.0
Dividend yield	-	3.68%
Expected forfeiture rate per annum	5.00%	5.00%
Fair value per option	€2.35	€3.45

The following weighted average assumptions were used to determine the fair value of the options that are

outstanding as of December 31, 2023 for the options granted under the 2021 plan in August and September 2021:

	August 2021	August 2021	Sept. 2021	Sept. 2021
	3-yr vesting	5-yr vesting	3-yr vesting	5-yr vesting
Estimated fair value of Shurgard Europe shares	€50.80	€50.80	€53.00	€53.00
Expected volatility	20.00%	20.00%	20.00%	20.00%
Risk free interest rate	-0.58%	-0.05%	-0.23%	-0.02%
Expected remaining term (in years)	7.0	8.0	7.0	8.0
Dividend yield	2.30%	2.30%	2.21%	2.21%
Expected forfeiture rate per annum	5.00%	5.00%	5.00%	5.00%
Fair value per option	€8.42	€9.05	€8.33	€8.67

On July 18, 2022, the Company granted 19,000 options under the 2021 equity compensation plan at an exercise

price of €46.81 (the ‘’2022 option grants’’).

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226

e used the following weighted average assumptions to determine the fair value of the 2022 option grants as

of December 31, 2023:

	July 2022	July 2022
	3-yr vesting	5-yr vesting
Estimated fair value of Shurgard Europe shares	€42.90	€42.90
Expected volatility	20.00%	20.00%
Risk free interest rate	1.77%	1.79%
Expected remaining term (in years)	7.0	8.0
Dividend yield	2.73%	2.73%
Expected forfeiture rate per annum	5.00%	5.00%
Fair value per option	€5.39	€5.65

For all plans, we incurred €4.2 million and €3.9 million in share-based compensation expense, including social

security charges in the periods ended December 31, 2023 and 2022, respectively.

The year-on year increase is explained by €0.4 increased employers’ social security cost due to the increase of

the intrinsic value of the share options, partially offset by €0.1 million decreased gross share option expense.

The €0.4 million and €0.5 million liabilities, respectively, for share-based compensation as of December 31, 2023

and December 31, 2022 consists of an accrual for employers’ share in social security.

As of December 31, 2023, and December 31, 2022, we had €4.4 million, and €8.1 million, respectively, of

unrecognized share-based compensation expense, net of estimated pre-vesting forfeitures, related to unvested

option awards. For the periods ended December 31, 2023 and December 31, 2022, the weighted average

remaining vesting period of our share options was 1.1 and 2.3 years, respectively.

he following table sets forth the number of share options granted, forfeited, exercised and outstanding at

December 31, 2023 and December 31, 2022:

				2023 2022
	Number of	Weighted	Number of	Weighted
	options	average exercise	options	average exercise
		price		price (a)
Outstanding, January 1	2,641,800	€37.44	2,727,500	€36.81
Granted (a)	-	-	19,000	€46.81
Forfeited (b)	(29,000)	€43.05	(9,000)	€43.05
Exercised (c)	(17,500)	€23.00	(95,700)	€22.26
Outstanding, December 31	2,595,300	€37.48	2,641,800	€37.44
Exercisable, December 31	763,300	€22.78	780,800	€22.79

SHURGARD ANNUAL REPORT 2023

227

he following table summarizes information about our share options outstanding as of December 31, 2023 under

the 2017, 2018 and 2021 plans:

			As of December 31, 2023
		Options outstanding					Options exercisable
		Weighted		Weighted		Weighted	Weighted
	Fair value	Number of	average	average	Number	average	average
Year of grant	per option at	Options	exercise	remaining	of	exercise	remaining
	grant date		price	contractual	Options	price	contractual
				life			life
2017	€2.35	112,300	€21.51	3.5 years	112,300	€21.51	3.5 years
2018	€3.45	651,000	€23.00	4.9 years	651,000	€23.00	4.9 years
2021-August-3 yr.	€8.42	967,800	€43.05	7.6 years	-	-	-
2021-August-5 yr.	€9.05	645,200	€43.05	7.6 years	-	-	-
2021-September-3 yr.	€8.33	120,000	€47.75	7.7 years	-	-	-
2021-September-5 yr.	€8.67	80,000	€47.75	7.7 years	-	-	-
2022-July-3 yr.	€5.39	11,400	€46.81	8.6 years	-	-	-
2022-July-5 yr.	€5.65	7,600	€46.81	8.6 years	-	-	-
		2,595,300	€37.48	6.7 years	763,300	€22.78	4.7 years

33. RELATED PARTY DISCLOSURES

SUBSIDIARIES

Interests in subsidiaries are set out in Note 38.

EY MANAGEMENT PERSONNEL COMPENSATION

(in € thousands)	December 31, 2023	December 31, 2022
Short term employee benefits	3,484	3,273
Post-employment benefits	105	116
Share-based payments	2,825	2,833
Total	6,414	6,222

Key management personnel consists of the members of the Executive Committee.

In addition, the Company incurred in the year ended December 31, 2023 €0.8 million expense for the provision

of services by non-executive board members that were provided by separate management entities (€0.8 million

in the year ended December 31, 2022).

TRANSACTIONS WITH OTHER RELATED PARTIES

As of December 31, 2023, the Group had two significant shareholders: Public Storage (“PS”), which owned directly

and indirectly in total 35.1% of the interest in Shurgard and the New York State Common Retirement Fund

(“NYSCRF”), which held directly and indirectly 33.4%.

We pay PS a royalty fee equal to 1.0% of our pro rata equity share of revenues in exchange for the rights to use

the “Shurgard” trade name and other services. During the years ended December 31, 2023 and December 31,

2022, we incurred royalty fees of €3.5 million and €3.3 million, respectively.

SHURGARD ANNUAL REPORT 2023

228

uring the years ending December 31, 2023 and December 31, 2022 there were no transactions with NYSCRF.

e also refer to Note 25 in respect of the non-controlling interest held by the two main shareholders in certain

subsidiaries in Germany.

UTSTANDING BALANCES ARISING FROM TRANSACTIONS WITH RELATED PARTIES

As of December 31, 2023 and 2022, trade and other payables and deferred revenue include short-term cash

advances payable to Public Storage totaling €0.9 million and €0.9 million, respectively, comprised primarily of

royalty fees incurred during each of the three months ended December 31, 2023 and December 31, 2022.

e also refer to Note 25 in respect of the non-controlling interest held by the two main shareholders in certain

subsidiaries in Germany.

everal of the Group’s subsidiaries provide post-employment benefit plans for the benefit of employees of the

Group. Payments made to these plans and receivables from and payables to these plans have been disclosed, if

any, in Note 31.

34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

This note explains the Company’s exposure to financial risks and how these risks could affect the Company’s

future financial performance.

he Company has tenant and other receivables, trade and other payables, deferred revenue and cash and cash

equivalents that arise directly from its operations. The Company’s principal financial liabilities consist of loans

and borrowings, as well as trade and other payables. The main purpose of the Company’s loans and borrowings

is to finance the acquisition and development of the Company’s property portfolio.

he Group is exposed to market risk, credit risk and liquidity risks:

• M

arket risk is the risk that the fair value or future cash flows of a financial instrument fluctuates

due to change in market prices and can be broken down into interest rate, currency and other price

(e.g., equity or commodity) risks; Not all these risks are relevant to the Group, which is mainly

exposed to foreign currency risks. The Group is currently not exposed to significant interest rate

risk, as it does not have any long-term debt with variable interest rates;

• Credit risk is the risk that one party to an agreement will cause a financial loss to another party

by failing to discharge its obligation. For Shurgard, credit risk mainly covers its tenant receivables

and financing activities, which include cash and cash equivalents with banks and financial

institutions;

• Liquidity risks include the risk that the Group will encounter difficulties in raising financing and in

meeting payment obligations when they come due.

SHURGARD ANNUAL REPORT 2023

229

The

Company’s risk management is carried out by senior management, under policies approved by the Board of

Directors. The Board of Directors provides written principles for 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 Board of Directors reviews and

agrees policies for managing each of these risks which are summarized below.

FORE

IGN EXCHANGE RISK

We publish our financial statements in euros, however, we record revenue, expenses, assets and liabilities in

several different currencies other than the euro, more specifically, the UK Pound Sterling (GBP), the Swedish

Krona (SEK) and the Danish Krone (DKK). Assets and liabilities denominated 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. Consequently, variations in the exchange rate of the euro versus

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. We implement policies to protect against exchange rate

risk only when required to do so by covenants contained in our debt agreements. These translations have resulted

in the past and could result in the future in changes to our results of operations, balance sheet and cash flows

from period to period.

A breakdown of the foreign exchange related amounts recognized in profit or loss and comprehensive income

can be found in Note 9 and in the Consolidated statements of changes in equity, respectively.

The main statement of financial position items exposed to foreign exchange risk are cash and cash equivalents,

trade and other receivables, other current and non-current assets, trade and other payables and deferred

revenue, lease obligations and other non-current liabilities.

As of December 31, 2023 and December 31, 2022, the net assets (liabilities) exposure on our consolidated

statement of financial position is as follows:

(in € thousands)	EUR	GBP	SEK	DKK	Total
As of December 31, 2023	193,900	(65,488)	6,588	41,012	176,012
As of December 31, 2022	173,616	(57,122)	(342)	25,116	141,268

The following table presents the sensitivity analysis of the year end statement of financial position balances in

EUR in case the euro would weaken by 10% versus the GBP, SEK and DKK, respectively:

(in € thousands)	FY 2023	FY 2022
GBP denominated
Changes in carrying amount of monetary assets and liabilities 1	6,549	5712
SEK denominated
Changes in carrying amount of monetary assets and liabilities 1	(659)	34
DKK denominated
Changes in carrying amount of monetary assets and liabilities 1	(4,101)	(2,512)

1 These are increases in net liabilities.

SHURGARD ANNUAL REPORT 2023

230

REDIT RISK

Credit risk from balances with banks and financial institutions is managed by the Company’s senior management

in accordance with the Company’s policy. Investments of surplus funds are made only with approved

counterparties with a minimum investment grade credit rating. The Company’s maximum exposure to credit risk

for the balances with banks and financial institutions as of December 31, 2023 is the carrying value of the cash

and cash equivalents.

edit risk is managed by requiring tenants to pay rentals in advance. The maximum exposure to credit risk at

the reporting date is the carrying value of each class of financial asset. There are no significant concentrations

of credit risk, whether through exposure to individual customers or regions.

The Group applies the IFRS 9 simplified approach to measure its expected credit losses, which uses a lifetime

expected loss allowance for all lease receivables.

Loss allowances are recognized in profit or loss within real estate operating expense. Subsequent recoveries of

amounts previously provided for are offset against the previously recognized loss on debtors within real estate

operating expense.

et out below is the information about the credit risk exposure on our trade receivables using a provision matrix:

December 31, 2022
(in € thousands)	Outstanding < 60 days	Past due > 60 days	Total
Expected credit loss rate	6.0%	73.2%	21.9%
Carrying amount	18,256	5,639	23,895
Expected credit loss	(1,095)	(4,129)	(5,224)
Net amount	17,161	1,510	18,671

December 31, 2023
(in € thousands)	Outstanding < 60 days	Past due > 60 days	Total
Expected credit loss rate	6.0%	76.8%	24.7%
Carrying amount	19,274	6,941	26,215
Expected credit loss	(1,156)	(5,329)	(6,485)
Net amount	18,118	1,612	19,730

ease receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no

reasonable expectation of recovery include among others:

• Significant financial difficulties of the debtor; and

• Probability that the debtor will enter bankruptcy or financial reorganization.

he other classes within trade and other receivables and other current assets do not contain impaired assets

and are not past due. It is expected that these amounts will be received when due. The Company does not hold

any collateral in relation to these receivables.

SHURGARD ANNUAL REPORT 2023

231

LIQU

IDITY RISK

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the

availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

The Company maintains flexibility in funding by maintaining availability under committed credit lines.

The o

perating activities of our subsidiaries and the resulting cash inflows are the main source of liquidity. Our

cash pooling system enables us to benefit from surplus funds of certain subsidiaries to cover the financial

requirements of other subsidiaries. We invest surplus cash in current accounts and short-term cash equivalents,

selecting instruments with appropriate maturities or sufficient liquidity.

Man

agement monitors rolling forecasts of the Company’s liquidity reserve (comprising the undrawn credit

facilities listed below) and cash and cash equivalents (see Note 20) on the basis of expected cash flows.

The Company has access to the following undrawn borrowing facilities at the end of the reporting period:

(in € thousands)	December 31, 2023		December 31, 2022
Expiring within one year (floating rate)	540,000	( 1 )	-
Expiring beyond one year (floating rate)	250,000	( 2 )	500,000 (
Total	790,000		500,000

)

1 The amount consists of the undrawn amount on the TLF (€290 million) and the uncommitted Shelf Note Facility for an amount of up to €250 million.

2 The amount consists of the RCF.

3 The amount consists of the RCF (€250 million) and the uncommitted Shelf Note Facility for the same amount.

CON

TRACTUAL MATURITIES OF FINANCIAL LIABILITIES ON DECEMBER 31, 2022

The tables below analyze the Company’s financial liabilities based on their contractual maturities.

					Total
(in € thousands)	Less than one	Between one			contractual
	year	and five years	Over five years		cash flows
Interest-bearing loans and borrowings	18,707	488,892	380,190		887,789
Lease liabilities	7,203	27,086	740,574	774,863	( 1 )
Trade and other payables	106,531	-	-		106,531
Total	132,441	515,978	1,120,764		1,769,183

1 The

material variances between the lease liabilities the Company carries in its consolidated statement of financial position and the contractual maturities

presented in the above table are explained by the perpetual character of certain of our Dutch and Swedish real estate leases.

CON

TRACTUAL MATURITIES OF FINANCIAL LIABILITIES ON DECEMBER 31, 2023

					Total
(in € thousands)	Less than one	Between one			contractual
	year	and five years	Over five years		cash flows
Interest-bearing loans and borrowings	115,930	382,193	366,703		864,826
Lease liabilities	7,692	28,646	775,377	811,715	( 1 )
Trade and other payables	118,174	-	-	118,174
Total	241,796	410,839	1,142,080	1,794,715

1 The

material variances between the lease liabilities the Company carries in its consolidated statement of financial position and the contractual maturities

presented in the above table are explained by the perpetual character of certain of our Dutch and Swedish real estate leases.

The

amounts disclosed in the table are the contractual undiscounted cash flows (including interest payments) .

SHURGARD ANNUAL REPORT 2023

232

IR VALUES

Management has assessed that the fair values of cash and cash equivalents, trade and other receivables, trade

and other payables approximate their carrying amounts largely due to the short-term maturities of these

instruments.

t out below is a comparison of the carrying amounts and fair value of the Company’s guaranteed notes, which

have a fixed interest rate:

(in € thousands)	December 31, 2023	December 31, 2022
Carrying value	798,391	797,980
Fair values	744,677	684,878

The following methods and assumptions were used to estimate the fair values:

• The fair values of our senior guaranteed notes (level 2) consist of the discounted value of principal

amounts and any future interest payments;

• The discount rates used take into account the various maturities of the notes issued and are based

on risk-free interest rates plus spreads that are in line with market spreads for private placements

as of the respective reporting dates.

35. CAPITAL MANAGEMENT

The Group’s Executive Committee reviews the capital structure on an ongoing basis. The primary objective of the

Group’s capital management is to ensure that it complies with its covenants. The Group targets a loan-to-value

ratio of around 25% with the flexibility to go up to a short- to mid-term maximum amount up to 35%. The

Company reviews each reporting period the appropriateness of the loan-to-value ratio. The Company is currently

satisfied with its current loan-to-value ratio and the applicable covenants. For all periods disclosed, we are in

compliance with the covenants.

e table below provides an overview of the evolution of the loan-to-value ratio as of December 31, 2023 and

December 31, 2022.

(in € thousands)	December 31, 2023	December 31, 2022
Net financial debt	652,698	812,477
Investment property and investment property under construction (Note	5,035,770	4,523,789
14)
Loan-to-value ratio	13.0%	18.0%

Net financial debt is composed as follows:

(in € thousands)	December 31, 2023	December 31, 2022
Carrying value of interest-bearing loans and borrowings (Note 26)	798,391	797,980
Unamortized portion of debt financing cost (Note 26)	1,609	2,020
Carrying value of lease obligations (Note 28)	110,816	99,822
Cash and cash equivalents (Note 20)	(258,118)	(87,345)
Net financial debt	652,698	812,477

SHURGARD ANNUAL REPORT 2023

233

36. INSURANCE AND LOSS EXPOSURE

We have historically obtained third-party insurance coverage for property/business interruption and general

liability, through internationally recognized insurance carriers, subject to deductibles. Additionally, we bind

coverage for our cyber and terrorism risk, as well as any local compulsory insurances, such as workers

compensation or strict liability in Belgium.

xcept for the local insurance policies, coverage was searched for by means of international programs, insuring

all affiliates of the Company. When acquiring a new location, our aim is to integrate the cover as soon as possible

and economically justified in our insurance programs.

esides insurance policies covering our own risks, we carry coverage for the risk of our tenants, via a tenant

insurance program. This program provides insurance to certificate holders (tenants) against claims for property

losses due to perils to goods stored by tenants at our self-storage facilities. Any advice and claims regarding

customer insurance are handled directly by our insurance broker/insurer.

he 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 undertaking.

n line with this assumption, no division for profitability is necessary. Where required, Shurgard registered as an

insurance intermediary for regulatory purposes.

During the year ended December 31, 2023, the Company paid €0.2 million (€0.2 million during the year ended

December 31, 2022) insurance acquisition expense to a third-party insurance company in connection with its re-

insurance undertaking.

ENERAL LIABILITY INSURANCE

Our insurance deductible for general liability insurance is €2,500 per occurrence. Insurance carriers’ limit is

€5.0 million. In case claims exceed the policy limit, we benefit from excess coverage up to US$100.0 million, or

approximately €85.6 million at the December 31, 2023 exchange rate, under the Public Storage general liability

program. As such, our insurance limit is higher than estimates of maximum probable losses that could occur

from individual catastrophic events determined in recent engineering and actuarial studies; however, in case of

multiple catastrophic events, these limits could be exceeded.

USTOMER GOODS

The income Shurgard earns for extending to its tenants the insurance coverage of the umbrella agreement with

an external insurance company qualifies as revenue in the scope of IFRS 15. This is due to the fact that the

contracts between Shurgard and the tenant do not transfer significant insurance risk between these two parties,

rather the insurance risk is transferred from the tenant to the external insurance company.

For this, the Group has entered into an insurance contract with an external insurance company that provides full

insurance coverage for goods stored to our customers, except for a deductible of €250 for certain perils, which

are at charge of the tenant, and a deductible of €5.0 million per year at charge of Shurgard that is re-insured by

Shurgard’s captive entity. The remaining risks reside with the external insurer (with an annual limit of €7.5 million

in excess of the €5.0 million deductible).

SHURGARD ANNUAL REPORT 2023

234

For the years ended December 31, 2023 and 2022, fee income earned from customer goods insurance was €33. 7

million and €32.1 million, respectively.

Simultaneously, Shurgard, through its captive re-insurance entity, entered into a re-insurance agreement wit h

the external insurance company. This arrangement is in the scope of IFRS 17.

Through this agreement, the external insurance company cedes to our captive certain insurance risk in lieu for a

re-insurance premium of €2.8 million for each of the years ended December 31, 2023 and 2022. For the yea r

ended December 31, 2023, the Group accounted for re-insurance service expense of €2.0 million (€2.2 million fo r

the year ended December 31, 2022), consisting of claim charges of €1.6 million (€1.9 million for the year ende d

December 31, 2022), as well as fronting and handling fees of €0.4 million (€0.3 million for the year ende d

December 31, 2022).

Captive re-insurance revenue and captive insurance service expense are included in other operating expenses i n

real estate operating expense.

Relevant quantitative disclosures for our re-insurance activities are as follows for the year ende d

December 31, 2022:

(in € thousands)

	Liabilities remaining	Liabilities for
	coverage	incurred claims	Total
	-	-	-
Opening liabilities	-	644	644
Net opening balance	-	644	644
Changes in the statement of profit or loss and Insurance revenue 1	(2,836)	-	(2,836)
Insurance service expenses
Incurred claims and other insurance service	-	2,125	2,125
Amortization of insurance acquisition cash flows	105	-	105
Insurance service result	(2,731)	2,125	(606)
Total changes in the statement of profit and Cash flows	(2,731)	2,125	(606)
Premiums received	2,836		2,836
Insurance acquisition cash flows	(105)		(105)
Claims and other insurance service expenses paid	-	(1,207)	(1,207)
Total cash flows	2,731	(1,207)	1,524
Closing assets	-	-	-
Closing liabilities	-	1,562	1,562
Net closing balance	-	1,562	1,562

1 In

surance revenue relates revenue from accepted reinsurance contracts.

The expense we incurred during the year ended December 31, 2022 in connection with our reinsuranc e

undertaking consists of the following:

(in € thousands)	December 31, 2022
Incurred claims customer goods	1,911
Insurance service expenses	214
Amortization of insurance acquisition cash flow	105
Total expense	2,230

SHURGARD ANNUAL REPORT 2023

235

Relevant quantitative disclosures for our re-insurance activities are as follows for the period ended December

31, 2023:

(in € thousands)

	Liabilities remaining	Liabilities for
	coverage	incurred claims	Total
Opening assets	-	-	-
Opening liabilities	-	1,562	1,562
Net opening balance	-	1,562	1,562
Changes in the statement of profit or loss and OCI
Insurance revenue 1	(2,836)	-	(2,836)
Insurance service expenses
Incurred claims and other insurance service	-	1,889	1,889
Amortization of insurance acquisition cash flows	105	-	105
Insurance service result	(2,731)	1,889	(842)
Total changes in the statement of profit and Cash flows	(2,731)	1,889	(842)
Premiums received	2,836	-	2,836
Insurance acquisition cash flows	(105)	-	(105)
Claims and other insurance service expenses paid	-	(1,647)	(1,647)
Total cash flows	2,731	(1,647)	1,084
Closing assets	-	-	-
Closing liabilities	-	1,804	1,804
Net closing balance	-	1,804	1,804

1 In

surance revenue relates revenue from accepted reinsurance contracts.

The expense we incurred during the year ended December 31, 2023 in connection with our reinsurance

undertaking consists of the following:

(in € thousands)	December 31, 2023
Incurred claims customer goods	1,566
Insurance service expenses	323
Amortization of insurance acquisition cash flow	105
Total expense	1,994

SHURGARD ANNUAL REPORT 2023

236

ROPERTY DAMAGE AND BUSINESS INTERRUPTION

The Property Damage and Business Interruption (“PDBI”) insurance program consists of a combination of

reinsurance activities through the Company’s captive and insurance through a third-party insurer.

hrough our captive, we cover the damages to our properties up to €3.5 million per occurrence and €7.0 million

in annual aggregate. In the event of Dutch Flood we cover the damages to our properties located in the

Netherlands up to €5.0 million per occurrence and €5.0 million in annual aggregate. All claims exceeding these

amounts are covered by the external insurance provider up to € 25 million per occurrence. The deductible is

€100,000 per occurrence.

he ceding of property and business Interruption risk between Shurgard and its re-insurance captive qualifies as

self-insurance, hence it is not in scope of IFRS 17.

37. CONTINGENCIES AND COMMITMENTS

CAPITAL EXPENDITURE COMMITMENTS

As of December 31, 2023, we had €18.2 million (€18.6 million as of December 31, 2022) of outstanding capital

expenditure commitments under contract in regard to certain self-storage facilities under construction.

CONTINGENT LOSSES

We are a party to various legal proceedings and subject to various claims and complaints; however, we believe

that the likelihood of these contingencies resulting in a material loss to the Company, either individually or in

the aggregate, is remote.

COME TAX

The Group operates in multiple jurisdictions with often complex legal and tax regulatory environments. Shurgard

considers the income tax positions to be supportable and are intended to withstand challenge from tax

authorities. However, the Group continues to be subject to tax audits in the various jurisdictions it conducts

business and the outcome of these audits and the conclusions drawn by the tax authorities are not certain and

therefore it is inherent that some of the positions taken by the Group are uncertain and include interpretations

of complex tax laws which could be disputed by tax authorities.

Shurgard regularly assesses these positions individually on their technical merits with no offset or aggregation

between positions, using all the information available (legislation, case law, regulations, established practice and

authoritative tax guidance). The Group has established tax liabilities that it believes are adequate for the

exposures identified. These liabilities have been estimated by the Group as the best estimate of the current tax

it expects to pay using its best estimate of the likely outcomes of such examinations. These estimates are based

on facts and circumstances existing at the end of the reporting period and assume full access of the tax

authorities to all relevant facts and circumstances.

SHURGARD ANNUAL REPORT 2023

38. LIST OF CONSOLIDATED ENTITIES

			As of December 31, 2023		As of December 31, 2022
	Country of		%		%
	incorporation	Consolidated	Ownership	Consolidated	Ownership
Shurgard Self Storage Ltd 1	Luxembourg	Yes	100	Yes	100
Shurgard Luxembourg S.à.r.l. 1	Luxembourg	Yes	100	Yes	100
Shurgard Holding Luxembourg S.à.r.l. 1	Luxembourg	Yes	100	Yes	100
Eirene RE S.A. 2	Luxembourg	Yes	100	Yes	100
Shurgard Belgium NV	Belgium	Yes	100	Yes	100
Shurgard Europe VOF	Belgium	Yes	100	Yes	100
Second Shurgard Belgium BV	Belgium	Yes	100	Yes	100
Shurgard France SAS	France	Yes	100	Yes	100
Shurgard Nederland B.V.	The Netherlands	Yes	100	Yes	100
VMK5 BV	The Netherlands	Yes	100	Yes	100
Shurgard Germany GmbH	Germany	Yes	100	Yes	100
First Shurgard Deutschland GmbH 3	Germany	Yes	94.8	Yes	94.8
Second Shurgard Deutschland GmbH 3	Germany	Yes	94.8	Yes	94.8
Shurgard Germany ZL MU GmbH 3	Germany	Yes	100	Yes	100
Shurgard Germany ZL LH GmbH 3	Germany	Yes	100	Yes	100
Shurgard Germany ZL FER GmbH 3	Germany	Yes	100	Yes	100
Shurgard Denmark ApS	Denmark	Yes	100	Yes	100
Shurgard UK Ltd	UK	Yes	100	Yes	100
Second Shurgard UK Ltd	UK	Yes	100	Yes	100
Second Shurgard UK Camberley Ltd	UK	Yes	100	Yes	100
Shurgard UK West-London Ltd	UK	Yes	100	Yes	100
Shurgard Sweden AB	Sweden	Yes	100	Yes	100
Shurgard Storage Centers Sweden KB	Sweden	Yes	100	Yes	100
Shurgard Sweden Årstaberg KB	Sweden	Yes	100	Yes	100
First Shurgard Sweden Invest KB	Sweden	Yes	100	Yes	100
Second Shurgard Sweden Invest KB	Sweden	Yes	100	Yes	100
Shurgard Sweden Stockholm Invest AB	Sweden	Yes	100	Yes	100
Shurgard Sweden RE FUB AB 3	Sweden	Yes	100	Yes	100
Shurgard Sweden RE TF AB 3	Sweden	Yes	100	Yes	100
Shurgard Sweden RE LH AB 3	Sweden	Yes	100	Yes	100
Shurgard Sweden GC AB 3	Sweden	Yes	100	Yes	100
Shurgard Germany TBIH GmbH 3	Germany	Yes	100	No	-
Shurgard Germany SSMH GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBW GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBD GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBM GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBK GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBE GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TBL GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TB8F GmbH 3	Germany	Yes	100	No	-
Shurgard Germany TB7K GmbH 3	Germany	Yes	100	No	-

1 Holding an

d/or financing company with no operating activities.

2 Re-insurance entity incorporated in December 2020.

3 These German and Swedish entities make use of an exemption that is based on company size and ownership criteria, and consequently do not file stand-

alone annual accounts.

237

SHURGARD ANNUAL REPORT 2023

238

39. EVENTS AFTER THE REPORTING PERIOD

We have evaluated subsequent events through February 28, 2024, which is the date the financial statements

were available for issuance.

n February 6, 2024, the Company announced the extension of its existing German portfolio with the acquisition

of Pickens Self-storage for a total cash consideration of €120.0 million. The transaction consists of three freehold

properties located in Berlin, representing 17,600 net Sqm, and three freehold properties in Hamburg representing

13,700 net Sqm (a total of 31,300 Sqm) and improves Shurgard’s position in Germany to second, both in footprint

and number of properties.

hurgard signed this transaction at the end of December 2023, conditional to customary receipt of pre-emption

waivers for each of the properties. The Group expects to obtain all waivers by April 2024 at the latest.

239

INDEPENDENT AUDITOR’S

REPORT

SHURGARD ANNUAL REPORT 2023

240

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SHURGARD

SELF STORAGE LIMITED

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

OPINION

We have audited the consolidated financial statements of Shurgard Self Storage Limited and its subsidiaries (the

Group), which comprise the consolidated statement of financial position as at December 31, 2023, and the

consolidated statement of profit and loss, consolidated statement of comprehensive income, consolidated

statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to

the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements:

• give a true and fair view of the consolidated financial position of the Group as at December 31,

2023, and of its consolidated financial performance and its consolidated cash flows for the year

then ended;

• have been properly prepared in accordance with International Financial Reporting Standards (IFRSs)

as adopted by the European Union;

• have been prepared in accordance with the requirements of The Companies (Guernsey) Law, 2008.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs) and applicable law. Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the

ethical requirements that are relevant to our audit of the financial statements as required by the Crown

Dependencies’ Audit Rules and Guidance, as applied to Guernsey incorporated Market Traded Companies, and we

have fulfilled our other ethical responsibilities in accordance with these 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 our

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.

SHURGARD ANNUAL REPORT 2023

241

Risk

How the matter was addressed in the audit

Valuation of investment property and

investment property under

construction

(Investment property: 2023: €4,930

million, 2022: €4,470 million. Investment

property under construction: 2023: €106

million, 2022: €54 million.)

Refer to material accounting policy

information (note 3), significant

judgements and estimates (note 4) and

notes 14 and 15 of the consolidated

financial statements.

The valuation is assessed at each

balance sheet date by an independent

external valuation firm using a

discounted cash flow model for each

property. The valuer makes use of inputs

on each property provided by

management such as store occupancy,

net rent and operating expenses per

square metre based on historical data.

The valuation process requires

significant judgement and use of

estimates by the external valuer and

management. Any input inaccuracies or

unreasonable bases used in these

judgements could result in a material

misstatement of the valuation of

investment property and investment

property under construction.

• We obtained an understanding of the Group’s processes and

controls over property valuations by performing walkthrough

procedures and evaluating the implementation and design

effectiveness of controls;

• We evaluated the competence of the Group’s external valuers,

Cushman & Wakefield (C&W) which included consideration of

their qualifications and expertise;

• We met with C&W to challenge their valuation approach and the

judgements made in assessing the property valuations;

• We selected a sample of 27 properties (16% of the portfolio by

value) based on factors including value, risks, representation

across geographies and random selection. For this sample, EY

valuation specialists considered the property valuation to assess

whether the valuation was within a reasonable range relative to

available market evidence. The audit team tested the data (such

as rents and occupancy by property) provided by management to

the external valuers for consistency with other information gained

during the audit;

• We assessed and challenged how C&W determined the impact

of climate related factors on the underlying valuations and

compared this to management’s climate impact assessments and

commitments;

• We conducted analytical procedures with support from EY

valuation specialists on the remainder of the portfolio by

assessing the reasonableness of valuation movements by

reference to market data and other information gained during the

audit;

• We assessed the adequacy of the disclosures of estimates and

valuation assumptions in notes 14 and 15 in order to determine

that they were made in accordance with IFRS 13 – Fair Value

Measurement.

• We performed audit procedures specifically designed to address

the risk of management influence and the override of controls in

the valuation of investment property. This included making

inquiries of the external valuer, assessing the data used in the

valuation for consistency with other evidence gained during the

audit and performing journal entry testing on entries which

impact the valuation of investment property and investment

property under construction.

SHURGARD ANNUAL REPORT 2023

242

Risk of management override of

controls in revenue recognition:

(Rental revenue of €312m (2022:

€289m) included within real estate

operating revenue 2023: €358 million,

2022: €335 million)

Refer to material accounting policy

information (note 3) and note 5 of the

consolidated financial statements.

Auditing Standards include a

presumption that there will be a risk of

fraud in revenue recognition on all

audits. Market expectations and profit

based targets may place pressure on

management to distort revenue

recognition. This may result in

overstatement of revenues to assist in

meeting current or future targets or

expectations.

Given the extent to which IT supports

the flow of transactions, we have

assessed that the risk is focused on the

manual intervention/override by

management with respect to data input

and price changes impacting the correct

recognition of revenue at year-end.

• We obtained an understanding of the Group’s revenue

recognition processes and performed testing of controls linked to

rental income recognition including IT automated controls. We

evaluated the implementation and design effectiveness of these

controls;

• We selected a sample of customers’ rental contracts, agreeing

the key terms to the revenue recognised for the customer during

the year;

• We performed analytical procedures on 100% of rental income

recognised during the year, setting expectations based on number

of square metres rented out and average rental rate per square

metre;

• We selected a sample of revenue transactions to ensure that

revenue transactions are recorded in the correct accounting

period;

• We performed correlation analysis and cash anchor testing to

follow the flow of transactions between revenue being recognised

and cash being collected;

• We performed audit procedures specifically designed to address

the risk of management override of controls including journal

entry testing, which included a particular focus on journal entries

which impact revenue.

OTHER INFORMATION

The directors are responsible for the other information. The other information comprises the information included

in the annual report but does not include the consolidated financial statements and our auditor’s report 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 that fact.

We have nothing to report in this regard.

RESPONSIBILITIES OF DIRECTORS AND OF THOSE CHARGED WITH GOVERNANCE FOR THE CONSOLIDATED

FINANCIAL STATEMENTS

The directors are responsible for the preparation and fair presentation of the consolidated financial statements

in accordance with IFRSs, and for such internal control as the directors determine is necessary to enable the

preparation of consolidated financial statements that are free from material misstatement, whether due to fraud

or error.

SHURGARD ANNUAL REPORT 2023

243

In preparing the consolidated financial statements, the directors are responsible for assessing the Group’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 directors either intend to liquidate the Group or to cease operations, or

has no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Our objectives 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 an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these consolidated financial

statements.

As part of an audit in accordance with ISAs, 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 Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

• Conclude on the appropriateness of director’s 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 Group’s ability to continue as a going concern. If

we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report 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 auditor’s report. 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.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

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 to communicate with them all relationships and other matters that

SHURGARD ANNUAL REPORT 2023

244

may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats

or safeguards applied.

We are also responsible for directing, supervising and performing the audits of the subsidiaries. In this respect

we have determined the nature and extent of the audit procedures to be carried out for group entities.

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 auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be

communicated in our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

European single electronic format (“ESEF”)

The Board of Directors is responsible for the preparation of the consolidated financial statements in the form of

an electronic file in ESEF format (“the digital consolidated financial statements”), with the regulatory technical

standards set by the European Delegated Regulation 2019/815 (“Delegated Regulation”), included in the annual

financial report.

It is our responsibility to obtain sufficient and appropriate supporting evidence to conclude that the format and

markup language of the digital consolidated financial statements comply in all material respects with the

Delegated Regulation.

We have checked the compliance of the digital consolidated financial statements of the Group as at 31 December

2023 with the regulatory technical standards set out in the Delegated Regulation that are applicable to the

consolidated financial statements.

In our opinion, the consolidated financial statements of the Group as at 31 December 2023, have been prepared,

in all material respects, in compliance with the ESEF requirements under the Delegated Regulation.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Section 262 of The Companies

(Guernsey) Law 2008. Our audit work has been undertaken so that we might state to the company’s members

those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest

extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the

company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Saunders

For and behalf of Ernst & Young LLP

Guernsey, Channel Islands

28 February 2024

SHURGARD T 2018

245

STAND-ALONE ACCOUNTS OF

SHURGARD SELF STORAGE

LTD AND AUDITOR’S REPORT

The below annual accounts have been prepared in thousands euros.

SHURGARD ANNUAL REPORT 2023

246

The summarized annual accounts of Shurgard Self Storage Ltd. (the “Company”) presented below are prepared

in accordance with the accounting principles as approved by the Board of Directors.

The Independent Auditor has expressed an unqualified opinion on these annual accounts.

SUMMARY OF ACCOUNTING PRINCIPLES

FORMATION EXPENSES

Formation expenses related to the creation of the share capital are capitalized and amortized on a straight-line

basis over a period of five years.

FINANCIAL FIXED ASSETS

Shares in affiliated entities are valued at acquisition cost including the expenses incidental thereto. Impairment

loss is recorded to reflect long-term impairment of value. Impairment loss is reversed when it is no longer

justified due to a recovery in the asset value.

Loans to affiliated entities 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.

RECEIVABLES AND PAYABLES

Amounts receivable and payable are recorded at their nominal value, less allowance for any amount receivable

whose value is considered to be impaired on a long-term basis. Amounts receivable and payable in a currency,

other than the currency of the Company, that are not hedged by a derivative instrument, are valued at the

exchange rate prevailing on the closing date. The resulting translation difference is written off if it is a loss and

deferred if it is a gain.

Amounts receivable and payable in a currency other than the currency of the Company, and hedged by a

derivative instrument, are valued at the exchange rate fixed within the financial instrument with a consequence

that there is no resulting translation difference in the exchange rate.

SIGNIFICANT EVENTS

On February 17, 2023, Shurgard Self Storage S.A. migrated to Guernsey and was incorporated as Shurgard Self

Storage Limited pursuant to Guernsey law. This allowed legal continuity of the entity, meaning that all rights and

obligations of Shurgard Self Storage S.A. are maintained.

On the same day, the UK tax residence was established, with central management and control of the Company

being exercised through the Board of Directors of Shurgard Self Storage Limited, located in the United Kingdom.

On March 1, 2023, Shurgard Self Storage Limited elected to become a UK REIT.

SHURGARD ANNUAL REPORT 2023

247

BALANCE SHEET

(in € thousands)

ASSETS

Codes December 31, 2023

December 31, 2022

Formation expenses

2,640

3,221

Fixed assets

21/28

1,203,803

Financial fixed assets

1,203,803

Affiliated Companies

280/1

1,203,803

Participating interests

280

1,203,803

Current assets

29/58

190,777

849

Amounts receivable within one year

40/41

190,520

Cash at bank and in hand

54/58

257

755

Accruals and deferred charges

490/1

TOTAL ASSETS

20/58

1,397,284

1,207,926

LIABILITIES AND EQUITY

Codes December 31, 2023

December 31, 2022

Equity

10/15

1,396,187

1,207,126

Capital

69,449

63,610

Share premium account

1100/10

854,548

559,985

Reserves

479,196

146,277

Available reserves

133

479,196

146,277

Accumulated profits (losses)

(7,006)

437,254

Amounts payable within one year

42/48

1,097

800

Trade debts

1,092

588

Taxes, remuneration and social security

212

Taxes

450/3

Remuneration and social security

454/9

203

TOTAL LIABILITIES

10/49

1,397,284

1,207,926

SHURGARD ANNUAL REPORT 2023

248

INCOME STATEMENT

(in € thousands)

Codes December 31, 2023

December 31, 2022

Operating income and operating charges

159

Gross margin

9900

159

Remuneration, social security and

pensions

(755)

(1,706)

Amortization of formation expenses,

Intangible and tangible fixed assets

630

(3,293)

(5,364)

Other operating charges

640/8

(3,884)

(2,871)

Operating profit (loss)

9901

(7,773)

(9,919)

Financial income

75/76B

483,913

Non-recurring financial income

76B

483,913

Financial charges

65/66B

(112)

(731)

Recurring financial charges

(112)

(101)

Non-recurring financial charges

66B

(630)

Profit (loss) of the period before taxes

9903

(7,885)

473,263

Income taxes on the result

67/77

836

(14)

Profit (loss) for the period

9904

(7,049)

473,249

Transfer (-) to/release (+) from tax-

exempt reserves

Profit (Loss) of the period available for

appropriation

9905

(7,049)

473,249

APPROPRIATION OF RESULT

Codes December 31, 2023

December 31, 2022

Profit (Loss) to be appropriated.

9906

(7,006)

437,254

Profit (Loss) of the period available for

appropriation

(9905)

(7,049)

473,249

Profit (Loss) of the preceding period brought

forward

14P

(35,995)

Appropriations to equity

691/2

437,211

to legal reserve

6920

- -

to other reserves

6921

- 437,211

Profit (loss) to be carried forward

(14)

(7,006)

Profit to be distributed

694/7

SHURGARD ANNUAL REPORT 2023

249

NOTES ON THE ACCOUNTS

20 FORMATION EXPENSE

Formation expense consists of cost incurred with the Company’s capital increases.

The additions for the year consist of equity issuance cost incurred in connection with the November 14, 2023

issuance of 8,163,265 new ordinary shares issued at a subscription price of €36.75.

(in € thousands) December 31, 2023 December 31, 2022

Cost of capital increase

At the beginning of the year

19,898

19,875

Additions 2,712 23

At the end of the period 22,610 19,898

Accumulated amortization

At the beginning of the year 16,677 12,699

Amortization for the period 3,293 3,978

At the end of the period 19,970 16,677

Net book value

At the beginning of the year 3,221 7,176

At the end of the period

2,640

3,221

SHURGARD ANNUAL REPORT 2023

250

280 PARTICIPATING INTEREST

The Company holds participating interest as follows in affiliated entities:

(in € thousands)

Country

Portion of capital held

as of December 31,

2023

Net book value as

of December 31,

2022

Increases /

(decreases)

during the year

Net book value as

of December 31,

2023

Shareholders’

equity as of

December 31,

2023

Profit / (loss) for

the year ended

December 31,

2023

Shurgard Luxembourg S.à.r.l. Luxembourg 100% 345,816 -

345,816 338,743 (6,085)

Shurgard UK Ltd

UK 100% 857,987 -

857,987 905,457 115,573

1,203,803 -

1,203,803 1,244,200 109,488

1 Shareholders’ equity and profit and loss of Shurgard UK Ltd are derived from the 2022 annual accounts.

SHURGARD ANNUAL REPORT 2023

251

10 CAPITAL

December 31, 2023 (in thousands of €) Number of shares

Share capital

Shares in issue

At the end of the previous year 63,610 89,131,131

Issue of new shares - November 14, 2023 5,826 8,163,265

Issue of new shares - share option exercises of the year 13 17,500

At the end of the financial year 69,449 97,311,896

Analysis of share capital

Class of shares

Ordinary shares of no-par value.

97,311,896

40/41 AMOUNTS RECEIVABLE WITHIN ONE YEAR

Accounts receivable within one year of €190,520 thousands as of December 31, 2023 consists of a cash advance granted by

the Company to its affiliate Shurgard Luxembourg S.à.r.l. of €189,670 thousands and a receivable from the UK affiliates of

€837 thousands and a €13 thousands receivable from Shurgard Europe SNC. The receivables do not bear interest and have

no maturity date.

Accounts receivable within one year of €94 thousands as of December 31, 2022 consisted of a €88 thousands receivable

from Shurgard Europe SNC and trade receivables of €6 thousands.

44 TRADE DEBTS PAYABLE WITHIN ONE YEAR

Trade debt within one year consists of the following:

(in € thousands) December 31, 2023 December 31, 2022

Accrued consultancy fees 688 185

Accounts payable and invoices to receive 404 403

1,092 588

62 REMUNERATION, SOCIAL SECURITY AND PENSIONS

Up to February 16, 2023, the Company employed one full time employee (one full time employees in 2022) and five part-

time employees (five part-time employees in 2022) for whom it incurred the following staff costs:

(in € thousands) December 31, 2023 December 31, 2022

Gross payroll 59 337

Director's fees

826 840

External staff 31 150

Employers‘ social security (18) 41

Bonus expense (156) 279

Other staff costs

13 59

755 1,706

1 Gross directors’ fees paid to the non-executive members of the Company’s Board.

Other staff costs consist mainly of pension plan expenses and other social benefits.

After February 16, 2023, the Company no longer employed employees.

SHURGARD ANNUAL REPORT 2023

252

640/8 OTHER OPERATING CHARGES

Other operating charges consists of the following:

(in € thousands) December 31, 2023 December 31, 2022

Lawyers, tax and other consultancy fees 1,052 553

Travel expense, irrecoverable VAT and other expenses 415 680

Centralized support. service charges recharged by

affiliated undertakings

1,578 1,212

Auditor’s fees 264 71

Insurance expense – D&O 165 181

Public relations 20 24

Membership (association) fees 176 150

Cost incurred in connection with the equity issuance 214 -

3,884 2,871

67/77 INCOME TAXES ON THE RESULT

Until February 16, 2023, the Company was subject to the general tax regulations applicable to all commercial companies in

Luxembourg.

As from February 17, 2023, the Company is subject to the UK standard (main) corporation tax rate of 19%. UK REITs are

exempt from UK corporation tax on rental profits and capital gains arising from their UK property business. However, any

other income and gains generated in the UK, which are not specifically derived from Shurgard UK property rental activities,

are part of the “residual business” and are subject to the UK corporate tax rate of 25% (19% until April 1, 2023).

During the year ended December 31, 2023, the Company surrendered current year tax losses to other members of the UK

REIT Group and received payment for those tax losses at the rate of tax prevailing in the year, which resulted in income tax

benefit of €836 thousands.

253

EY Bedrijfsrevisoren

EY Réviseurs d’Entreprises

Kouterveldstraat 7B 001

B - 1831 Diegem

Tel: +32 (0) 2 774 91 11

ey.com

INDEPENDENT AUDITOR’S REPORT

Shurgard Self Storage Ltd

1st and 2nd Floors, Elizabeth House

Les Ruettes Brayes

St Peters Port

Guernsey, GY1 1EW

Independent auditor’s report

Unqualified opinion

We have audited the special purpose stand-alone financial

statements of Shurgard Self Storage Limited (the “Company”),

which comprise the balance sheet as at 31 December 2023, the

income statement for the year then ended, and notes to the

special purpose stand-alone, including a summary of significant

accounting policies.

In our opinion, the accompanying special purpose stand-alone

financial statements of Shurgard Self Storage Limited for the

year ended 31 December 2023 are prepared, in all material

respects, in accordance with the accounting principles as

approved by the board of directors in order to meet the

reporting requirements of the Financial Services and Markets

Authority (the “FSMA”).

Basis for the unqualified opinion

We conducted our audit in accordance with International

Standards on Auditing (“ISA’s”). Our responsibilities under those

standards are further described in the “Our responsibilities for

the audit of the special purpose stand-alone financial

statements” section of our report.

We have complied with all ethical requirements that are

relevant to our audit of the special purpose stand-alone

financial statements in Belgium, including those with respect to

independence.

We have obtained from the Audit Committee within the Board

of Directors and the officials of the Company the explanations

and information necessary for the performance our audit and

we believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter

We draw attention to the Summary of Accounting Principles to

the special purpose stand-alone financial statements which

describes the basis of accounting. The special purpose stand-

alone financial statements are prepared to assist the Company

in complying with the financial reporting provisions as required

by the FSMA. As a result, the special purpose stand-alone

financial statements may not be suitable for another purpose.

Our opinion is not modified in respect of this matter.

Responsibilities of the the Audit Committee within the Board

of Directors for the preparation of the special purpose

stand-alone financial statements

The Audit Committee within the Board of Directors is

responsible for the preparation of the special purpose stand-

alone financial statements in accordance with the accounting

principles as approved by the board of directors, and for such

internal control as the Audit Committee within the Board of

Directors determines is necessary to enable the preparation of

special purpose stand-alone financial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the special purpose stand-alone financial

statements, the Audit Committee within the Board of Directors

is responsible for assessing the Company’s ability to continue as

a going concern, disclosing, as applicable, matters relating 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.

Our responsibilities for the audit of the special purpose

stand-alone financial statements

Our objectives are to obtain reasonable assurance whether the

special purpose stand-alone financial statements as a whole are

free from material misstatement, whether due to fraud or error,

and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a

guarantee that an audit conducted in accordance with the ISA’s

will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and considered

material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of

users taken on the basis of these special purpose stand-alone

financial statements.

Independent Auditor’s report dated 28 February 2024

on the special purpose stand-alone financial statements of Shurgard

Self Storage Limited as of and for the year ended 31 December 2023

(continued)

254

As part of an audit in accordance with ISA’s, we exercise

professional judgment and we maintain professional skepticism

throughout the audit. We also perform the following tasks:

• Identification and assessment of the risks of material

misstatement of the special purpose stand-alone financial

statements, whether due to fraud or error, the planning

and execution of audit procedures to respond to these

risks and obtain audit evidence which is sufficient and

appropriate to provide a basis for our opinion. The risk of

not detecting material misstatements resulting from fraud

is higher than when such misstatements result from errors,

since fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of internal

control;

• Obtaining insight in the system of internal controls that

are relevant for the audit and with the objective 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;

• Evaluating the selected and applied accounting policies,

and evaluating the reasonability of the accounting

estimates and related disclosures made by the Board of

Directors as well as the underlying information given by

the Board of Directors;

• Conclude on the appropriateness of the Board of Director’s

use of the going-concern basis of accounting and, based

on the audit evidence obtained, whether or not 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

auditor’s report to the related disclosures in the special

purpose stand-alone financial statements or, if such

disclosures are inadequate, to modify our opinion. Our

conclusions are based on audit evidence obtained up to

the date of the auditor’s report. However, future events or

conditions may cause the Company to cease to continue as

a going-concern;

We communicate with the Audit Committee within the Board of

Directors 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 provide the Audit Committee within the Board of Directors

with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate

with 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 the Audit Committee

within the Board of Directors, we determine those matters that

were of most significance in the audit of the special purpose

stand-alone financial statements of the current period.

Diegem, 28 February 2024

EY Bedrijfsrevisoren BV

Independent auditor

Represented by

Ömer Turna*

Partner

*Acting on behalf of a BV/SRL

24OT0169

254

APPENDIX:

ALTERNATIVE PERFORMANCE

MEASURES (APM)

SHURGARD ANNUAL REPORT 2023

256

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 providing at the same time 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 12 of the 2023 FY report) and same store

information represents part of the remuneration for Senior Management.

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 financial statements as follow:

Income statement line item

Reference to 2023

FY report

FY 2023 FY 2022

Rental revenue

Note 5

312,550

289,380

Fee income from customer goods insurance

Note 5

33,683

32,075

Ancillary revenue

Note 5

11,468

11,594

Property operating revenue (A)

357,701

333,049

Other revenue

Note 6

222

2,241

Real estate operating revenue

Statement of

Profit and Loss

357,923

335,290

Income statement line item

Reference to 2023

FY report

FY 2023 FY 2022

Payroll expense Note 6 42,138 42,151

Real estate and other taxes Note 6 19,313 16,834

Repairs and maintenance Note 6 13,280 10,913

Marketing expense Note 6 9,887 9,162

Utility expense Note 6 3,939 3,574

Doubtful debt expense Note 6 5,465 5,088

Cost of insurance and merchandise sales Note 6 4,556 5,289

Other operating expenses Note 6 21,892 20,810

Real estate operating expenses (B)

Statement of

Profit and Loss

120,470

113,821

Income from property (NOI)

(A) - (B)

237,231

219,228

SHURGARD ANNUAL REPORT 2023

257

NOI measures the financial performance of our properties. It focusses 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.

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 2023 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 FY 2023 FY 2022

Income from property (NOI) 237,231 219,228

Property operating revenue ÷ 357,701 333,049

NOI Margin % = 66.3% 65.8%

OPERATING PROFIT BEFORE PROPERTY RELATED ADJUSTMENTS

This is a commonly reported KPI by real estate companies. We believe that this subtotal provides improved

structure to the profit and loss information and enables investors to better analyze and compare our earnings

with those of other companies.

UNDERLYING EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION (UNDERLYING EBITDA)

Underlying EBITDA is calculated as earnings before interest, tax, depreciation and amortization, excluding (i)

valuation gain from investment property and investment property under construction and gain on disposal, (ii)

acquisition and dead deals costs (iii) cease-use lease expense and (iv) other non-recurring items (such as cost

of equity raise or significant SaaS implementation costs).

(in € thousands) Q4 2023 Q4 2022 +/- FY 2023 FY 2022 +/-

Operating profit before property related

adjustments

54,134 54,212 -0.1% 207,040 196,440 5.4%

Depreciation and amortization expense 893 763 17.0% 3,377 2,866 17.8%

Other

1,141 362 214.9% 2,552 459 455.7%

Underlying EBITDA (AER) 56,168 55,337 1.5% 212,969 199,765 6.6%

1 Other includes (i) acquisition and dead deals costs (€1.6 million) (ii) cease-use lease expense (€0.0 million) and (iv) ERP implementation fees and costs of

capital raise (€0.9 million).

CONSTANT EXCHANGE RATE (“CER”)

Certain of the above-mentioned non-GAAP measures, such as underlying EBITDA, are also presented at constant

exchange rate (“CER”) versus actual exchange rate (“AER”), in order to highlight the underlying operating

performance versus the impact of changes in exchange rate on the particular KPI.

SHURGARD ANNUAL REPORT 2023

258

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.

(in € thousands) December 31, 2023 December 31, 2022

Carrying value of interest-bearing loans and borrowings 798,391 797,980

Unamortized portion of debt financing cost 1,609 2,020

Carrying value of lease obligations 110,816 99,822

Less Cash and cash equivalents -258,118 -87,345

Net financial debt 652,698 812,477

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 and investment properties under construction, expressed as a percentage and is a commonly used

leverage KPI in the real estate industry. The Group reviews its capital structure based on this metric with the

primary objective to ensure that it complies with its debt covenants and to maintain a target loan-to-value ratio

at c. 25%, short- to mid-term maximum of 35%.

(in € thousands) December 31, 2023 December 31, 2022

Net financial debt 652,698 812,477

Investment property and investment property under construction

(Note 14)

5,035,770 4,523,789

Loan-to-value ratio 13.0% 18.0%

NET DEBT TO UNDERLYING EBITDA RATIO

Net debt to underlying EBITDA ratio represents the Group’s net financial debt divided by trailing 12 months

earnings before interest, taxes, depreciation, and amortization (TTM EBITDA).

(in € thousands) FY 2023 FY 2022

Net financial debt 652,698 812,477

TTM Underlying EBITDA 212,969 199,765

Net debt/Underlying EBITDA 3.1x 4.1x

INTEREST COVERAGE RATIO (”ICR”)

ICR, which stands for interest coverage ratio, represents the Group’s underlying earnings before interest, taxes,

depreciation, and amortization (underlying EBITDA) divided by the total net finance costs, expressed as a ratio.

The ICR of 10.6x demonstrates Shurgard’s capacity to meet its outstanding debt obligations on time.

(in € thousands) FY 2023 FY 2022

Underlying EBITDA 212,969 199,765

Interest expense net

20,127 20,696

Interest coverage ratio 10.6x 9.7x

1 Excluding foreign exchange (gain)/loss

SHURGARD ANNUAL REPORT 2023

259

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 August 2022.

The table below provides a summarized overview of certain of the Company’s key earnings related APM,

consisting of (Adjusted) EPRA earnings and (Adjusted) EPRA earnings per share:

SUMMARY OF EPRA EARNINGS METRICS

(in € thousands, except for earnings per share for the year ended December 31)

2023 2022

EPRA earnings 156,186 144,225

EPRA earnings per share (basic - €) 1.73 1.62

EPRA earnings per share (diluted - €) 1.73 1.61

Adjusted EPRA earnings 158,401 143,556

Adjusted EPRA earnings per share (basic - €) 1.76 1.61

Adjusted EPRA earnings per share (diluted - €) 1.75 1.60

The bases of calculation of each of the measures set out above, are illustrated below:

EPRA EARNINGS AND EPRA EARNINGS PER SHARE

(in € thousands, except for earnings per share for year ended December 31)

2023 2022

Profit attributable to ordinary equity holders of the parent for basic

earnings

533,313 574,284

Adjustments:

Changes in value of investment properties, development properties held for

investment and other interests

(294,350) (586,181)

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 benefit of business combinations and non-controlling joint

venture interests and other

(5) (775)

Current and deferred tax in respect of EPRA adjustments (83,484) 155,878

Adjustments (i) to (viii) above in respect of joint ventures (unless already

included under proportional consolidation)

Non-controlling interest in respect to the above

712 1,019

EPRA earnings 156,186 144,225

EPRA earnings per share (basic - €) 1.73 1.62

EPRA earnings per share (diluted - €) 1.73 1.61

1 Non-controlling interests are presented net of deferred income taxes.

SHURGARD ANNUAL REPORT 2023

260

ADJUSTED EPRA EARNINGS AND ADJUSTED EPRA EARNINGS PER SHARE

(in € thousands, except for earnings per share for the year ended December 31) 2023 2022

EPRA earnings 156,186 144,225

Company specific adjustments:

Deferred tax (benefit) expense on items other than the revaluation of investment

property

782 45

Cost incurred in connection with capital raise and ERP implementation 926 -

Compensation received for termination lease agreement -

(2,000)

Net impact of tax assessments and non-recurring expenses 541 822

Current income tax adjustments in respect of the above (34) 464

Non-controlling interest in respect to the above -

Adjusted EPRA Earnings 158,401 143,556

Adjusted EPRA earnings per share (basic) € 1.76 1.61

Adjusted EPRA earnings per share (diluted) € 1.75 1.60

ADJUSTED EPRA EARNINGS EFFECTIVE TAX RATE

(in € thousands, for the year ended December 31)

2023 2022

Adjusted EPRA earnings 158,401 143,556

Current Tax Expense 29,419 30,311

Adjusted EPRA earnings before Current Tax Expense 187,821 173,867

Adjusted EPRA Earnings Effective Tax Rate 15.7% 17.4%

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) FY 2023 FY 2022

GBP/EUR exchange rate – increase 10% 3,626 2,852

SEK/EUR exchange rate – increase 10% 2,385 2,607

DKK/EUR exchange rate – increase 10% 997 887

Positive amounts represent an increase in adjusted EPRA earnings.

SHURGARD ANNUAL REPORT 2023

261

SUMMARY OF EPRA NAV METRICS

The table below provides a summarized overview of the Company’s key APM that are NAV related, consisting of

NAV, EPRA NRV, EPRA NTA, EPRA NDV and EPRA LTV:

(in € thousands, except for NAV per share)

December 31, 2023 December 31, 2022

NAV 3,614,217 2,860,993

NAV per share (basic) € 37.14 32.10

NAV per share (diluted) € 36.98 31.98

EPRA NRV 4,708,381 3,989,647

EPRA NRV per share (diluted) € 48.17 44.59

EPRA NTA (diluted) 4,307,807 3,638,892

EPRA NTA per share (diluted) € 44.07 40.67

EPRA NDV (diluted) 3,667,931 2,974,095

EPRA NDV per share (diluted) € 37.53 33.24

EPRA Group LTV % 12.5% 17.7%

EPRA Combined LTV % 12.5% 17.8%

The bases of calculation of each of the above measures set out above, are illustrated below.

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)

December 31, 2023

December 31, 2022

Equity attributable to ordinary equity holders of the parent 3,614,217 2,860,993

Number of ordinary shares at the reporting date 97,311,896 89,131,131

Number of diluted shares at the reporting date 427,052 333,315

NAV per share (basic) € 37.14 32.10

NAV per share (diluted) € 36.98 31.98

SHURGARD ANNUAL REPORT 2023

262

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)

December 31, 2023

December 31, 2022

Equity attributable to ordinary equity holders of the parent (diluted) 3,614,217 2,860,993

Include / Exclude:

Hybrid instruments - -

Diluted NAV 3,614,217 2,860,993

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 3,614,217 2,860,993

Exclude:

Deferred taxes on fair value adjustments of investment property 701,247 784,628

Fair value of financial instruments - -

Goodwill as a result of deferred tax - -

Include:

Real estate transfer tax

392,917

344,026

EPRA NRV 4,708,381 3,989,647

EPRA NRV per share (diluted) € 48.17 44.59

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 2023

263

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 NTA per share)

December 31, 2023

December 31, 2022

Equity attributable to ordinary equity holders of the parent (diluted) 3,614,217 2,860,993

Include / Exclude:

Hybrid instruments - -

Diluted NAV 3,614,217 2,860,993

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 3,614,217 2,860,993

Exclude:

Deferred taxes on fair value adjustments of investment property 701,247 784,628

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 (7,657) (6,729)

Include:

Real estate transfer tax

EPRA NTA 4,307,807 3,638,892

EPRA NTA per share (diluted) € 44.07 40.67

1 The Company did not opt for the “optimized 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 optimized 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 2023

264

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)

December 31, 2023

December 31, 2022

Equity attributable to ordinary equity holders of the parent (diluted) 3,614,217 2,860,993

Include / Exclude:

Hybrid instruments - -

Diluted NAV 3,614,217 2,860,993

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 3,614,217 2,860,993

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 (higher) than fair value (Note 26)

53,714 113,102

EPRA NDV 3,667,931 2,974,095

EPRA NDV per share (diluted) € 37.53 33.24

In the above EPRA NDV calculation, all our cumulative deferred tax expense is not considered.

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 2023

265

As of December 31, 2023, EPRA LTV is as follows:

Proportionate Consolidation

EPRA LTV Metric

(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 798,391 -

798,391

Foreign currency derivatives (futures,

swaps, options and forwards)

Net payables 75,283 -

1,611 76,894

Owner occupied property (debt) -

Current accounts (equity characteristic) -

Exclude:

Cash and cash equivalents (258,118) -

30 (258,088)

Net Debt (a) 615,556 -

1,641 617,197

Include:

Owner occupied property -

Investment properties at fair value 4,823,442 -

(10,676) 4,812,766

Properties held for sale 530 -

530

Properties under development 105,951 -

- 105,951

Intangibles 7,657 -

7,657

Net receivables -

Financial assets -

Total Property Value (b) 4,937,580 -

(10,676) 4,926,904

LTV (a/b) 12.5% N/A 12.5%

SHURGARD ANNUAL REPORT 2023

266

RECONCILIATION OF CERTAIN EPRA LTV COMPONENTS

Proportionate Consolidation

EPRA LTV Metric

(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 4,929,819 -

(10,676)

4,919,143

Less ROU IP (IFRS 16) (106,377) -

(106,377)

Investment property for EPRA LTV

calculation

4,823,442 -

(10,676)

4,812,766

Payables, net

Trade and other receivables (19,730) -

29 (19,701)

Other current assets (19,722) -

12 (19,710)

Other non-current assets (8,977) -

(8,977)

Other non-current liabilities -

Trade and other payables 83,342 -

1,694 85,036

Deferred revenue 34,832 -

(81) 34,751

Income tax payable 5,538 -

(43) 5,495

Net Payables 75,283 -

1,611 76,894

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267

As of December 31, 2022, EPRA LTV is as follows:

Proportionate Consolidation

EPRA LTV Metric

(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

LTV (a/b)

17.7%

N/A

17.8%

SHURGARD ANNUAL REPORT 2023

268

RECONCILIATION OF CERTAIN EPRA LTV COMPONENTS

Proportionate Consolidation

EPRA LTV Metric

(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 -

(9,521) 4,460,051

Less ROU IP (IFRS 16) (95,211) -

(95,211)

Investment property for EPRA LTV

calculation

4,374,361 -

(9,521) 4,364,840

Payables, net

Trade and other receivables (18,671) -

21 (18,650)

Other current assets (8,262) -

20 (8,242)

Other non-current assets (11,326) -

(11,326)

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

CAPITAL EXPENDITURE

(in € thousands) FY 2023 FY 2022 +/-

Acquisitions / Additions 67,336 76,310 -24.1%

Development 63,930 75,472 -15.3%

Other: completed properties 49,888 37,105 34.4%

Like-for-like portfolio - - N/A

Capital Expenditure 181,154 188,887 -4.1%

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 in 2023 relate to five stores acquired in Germany.

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269

EPRA VACANCY RATE

(in € thousands, at CER, except where indicated) 2023 2022 +/-

Estimated rental revenue of vacant space 47,664 42,872 11.2%

Estimated rental revenue of the whole portfolio 360,214 327,995 9.8%

EPRA Vacancy Rate 13.2% 13.1% 0.2pp

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 13.2% at the end of 2023

slightly up compared to 13.1% in 2022. A part of the vacancy rate is attributable to new stores opened and major

redevelopments that are still ramping up.

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 2023 Whole

portfolio

FY 2023 LFL portfolio

(in € thousands, at

CER, except where

indicated)

Total

market

value

Rental

revenue

2023

Total

market

value

Rental

revenue

2023

Rental

revenue

2022

Growth in LFL rental

revenue

€

France 1,092,900 73,260 958,050 67,293 64,505 2,788 4.3%

The Netherlands 964,860 67,492 837,070 62,347 56,944 5,403 9.5%

The United Kingdom 1,108,342 62,753 955,206 56,929 52,655 4,274 8.1%

Sweden 635,915 41,036 602,647 39,746 39,758 -12 0.0%

Germany 533,600 30,456 361,800 25,274 22,647 2,627 11.6%

Belgium 292,130 23,501 292,130 23,501 21,625 1,875 8.7%

Denmark 220,275 14,054 220,275 14,054 13,622 432 3.2%

Total portfolio 4,848,022 312,551 4,227,177 289,143 271,755 17,388 6.4%

SHURGARD ANNUAL REPORT 2023

270

2022 Whole portfolio

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 1,037,030 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%

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) FY 2023 FY 2022 %

Administrative/operating expense line per IFRS income

statement

(146,431) (136,336) 7.4%

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 (728) (923) -21.1%

Service charge costs recovered through rents but not

separately invoiced

- - N/A

EPRA costs (including direct vacancy costs) (145,703) (135,413) 7.6%

Direct vacancy costs - - N/A

EPRA costs (excluding direct vacancy costs) (145,703) (135,413) 7.6%

Gross Rental Income less ground rent costs - per IFRS 313,279 290,302 7.9%

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 313,279 290,302 7.9%

EPRA Cost ratio (including direct vacancy costs) 46.5% 46.6% -0.1pp

EPRA Cost ratio (excluding direct vacancy costs) 46.5% 46.6% -0.1pp

SHURGARD ANNUAL REPORT 2023

271

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)

FY 2023

FY 2022

Investment property

– wholly owned

4,910,375

4,353,121

12.8%

Investment property

– share of JVs/Funds

N/A

Trading property (including share of JVs)

N/A

Less: developments

89,909

72,907

23.3%

Completed property portfolio

4,820,466

4,280,214

12.6%

Allowance for estimated purchasers’ costs

286,995

259,64

10.5%

Gross up completed property portfolio valuation

5,107,461

4,539,858

12.5%

Annualized

cash passing rental income

312,551

289,379

8.0%

Property outgoings

(38,119)

(34,265)

11.2%

Annualized

net rents

274,431

255,114

7.6%

Add:

notional rent expiration of rent-

free periods or other

lease incentives

N/A

Topped

-up net annualized rent

274,431

255,114

7.6%

EPRA Net Initial Yield (NIY)

5.4%

5.6%

0.2pp

EPRA 'topped

-up' NIY

5.4%

5.6%

0.2pp

1 2022 restated to include real estate tax and cost of management rather than only leasehold expense in property outgoings.

2 No unexpired lease incentives such as rent-free periods, discounted rent periods and step rents applicable.

SHURGARD ANNUAL REPORT 2023

272

PUBLISHER

Shurgard Self Storage Ltd

1st and 2nd Floors, Elizabeth House

Les Ruettes Brayes

St Peters Port

Guernsey, GY1 1EW

www.shurgard.com

COPYWRITING AND DESIGN

Instinctif Partners

Berlin, Frankfurt, Cologne, Munich,

London

https://instinctif.com/

www.creative.instinctif.com

PHOTOS

Shurgard Self Storage Ltd