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Shurgard is the largest owner and
operator of self‑storage facilities in
Europe by both number of stores and
rentable space. We operate 1.7 million
sqm of space across 335 stores
in seven countries where more than
220,000 customers lease our storage
units every year.
The consolidated financial statements presented in pdf format is only a supplementary document.
The official ESEF (European Single Electronic Format) version prevails.
Table of contents
03 Chairman’s letter
04 ChiefExecutiveOfficer’sletter
06 Keyfinancials
07 Highlights of an
exceptional 2024
10 A remarkable year of change
through operational platform
efficiency,massiveportfolio
growthandfinancialstrength
11 Operationalefficienciesand
digital customer journey
12 Lok’nStore – A milestone
acquisition
14 Germany – accelerated growth
16 Financing strengths
17 Sustainability momentum
20 Management report
23 Group overview
28 Property portfolio
31 Operational and
financialreview
47 Sustainability report
187 Remuneration report
198 Principal risks
and uncertainties
211 Consolidatedfinancial
statements
217 Notes to the consolidated
financialstatements
273 Auditor’s report
280 Stand‑alone accounts
292 Appendix
293 APM
Chairman’s letter
In my inaugural Chairman‘s statement last
year, I commented that 2023 was the most
transformational year since the company’s
Initial Public Offering in 2018. Without fear of
hyperbole, 2024 has surpassed last year with
the company experiencing the most significant
change over its 30 year history.
Although our substantial acquisition activity and organic
growth is often opportunistic, it is based on stable and
strong pillars of financial discipline and operational
efficiency. Ambitions to grow our business, particularly
in existing key locations including London, Paris and the
“Big seven“ cities of Germany, has been a real focus for us
throughout the year.
The acquisition of listed UK company, Lok’nStore, enabled us
to double our UK presence and opened up the opportunity
for growth in the South‑East and Manchester. In Germany,
four acquisitions of private platforms, performed over the
last two years, combined with our development pipeline,
will double the size of our portfolio in Europe’s largest
economy by 2026. In Paris, an innovative transaction with
France’s largest car park owner/operator has enabled us
to expand our presence in the City Center. Organic growth
across the rest of the portfolio has reinforced our position
as the largest owner and operator of self‑storage facilities
in Europe by both number of stores and rentable space.
This expansion has been feasible because of the
enhancement and improvement in our operations, with
greater use of technology to the benefit of both our
management and our customers. Our e‑rental service
and the Shurgard app have become increasingly used and
valued by our 220,000 customers. We have been able to
significantly improve our financial margins by utilizing
remotely managed stores more frequently across the
portfolio with an increasing use of digital solutions.
We are very proud to be the first European self‑storage
company to obtain an investment grade bond rating which
enabled us to access the market with our initial issue which
was well received by investors, resulting in very attractive
pricing. The introduction of an optional scrip dividend,
which was also very well supported by our shareholders,
offered another opportunity for them to invest in our
exceptional platform.
Despite an outstanding year financially and operationally,
and the unprecedented commitment of our exceptional
executive team, the challenging and volatile geopolitical
and economic backdrop has meant that all the significant
positivity and improvement made in our business and
consequently our financial results, has not been reflected
in our share price. This is obviously disappointing for all
our stakeholders, but we will continue to focus on the
deliverability of the long‑term growth plan while ensuring
financial prudence.
We continue to rotate board members while ensuring
we retain continuity. This year we will see the departure
of Frank and Muriel who have been valuable members
since our IPO. We are thrilled to welcome to the board
Candace Krol, who has significant knowledge of the self‑
storage sector while having a track record of decades of
HR and remuneration leadership experience. Additionally,
up for shareholders consideration at the Company’s
next Annual Meeting of Shareholders is Charley Webb,
who has over two decades of global experience, across
diverse industries, with a proven track record in strategic
leadership, customer‑center initiatives, and driving
business growth through technology and innovation.
I would like to express my sincere thanks and gratitude
on behalf of the Board and all our shareholders to
Jean Kreusch, Chief Financial Officer, who has retired from
the company after over 20 years of dedicated and selfless
service. Throughout his tenure, Jean played a pivotal
role in the Company’s journey, guiding it through key
milestones such as its acquisition, flotation, and expansion.
At times stepping in as interim CEO, he has consistently
been at the core of the business, shaping its culture,
philosophy, and financial stability.
On behalf of the Board, may I also express my sincere thanks
to Marc Oursin and the executive team for their continued
outstanding efforts and achievements throughout a very
active 2024. This momentum will, no doubt, continue as
we look to further strengthen our leading market position.
Ian Marcus OBE, Chairman of the Board
03
SHURGARD ANNUAL REPORT 2024
Chief Executive Officer’s letter
This year has been remarkable for Shurgard,
showcasing the successful execution of our
comprehensive strategy. In 2024, we saw the
convergence of our operational excellence,
development success through acquisitions as
well as organic growth, and the efficient
financing required to support this progress.
This strategic alignment has resulted in
significant positive changes for the company.
The data below is presented at constant exchange
rate (CER).
OPERATIONAL PLATFORM EFFICIENCY
Over many years of refining and improving our processes
and systems, we have built the most efficient platform for
our business in Europe. From operational and development
systems to sales and customer management, we used this
platform to accelerate growth in 2024.
Part of this efficiency has been the introduction of a new
cluster store management model, which we tested in
2023, and rolled out at scale during 2024. This model uses
the proximity of stores to improve operational efficiency,
allowing a staffed service store to manage one or more
“remotely managed” stores. These stores are managed by
a single store manager, allowing labor cost reduction and
improved efficiencies across our markets.
We now have an impressive c. 55% of our 300+ store
portfolio as part of a cluster, with c. 100 “remotely
managed” stores. This means c. 170 stores have changed
the way they work in 2024, which is a major shift and
one which was expertly managed. We have been able to
further develop our store managers’ responsibilities to
deliver increased performance and motivation.
The cluster rollout has helped to mitigate same store
labor cost increases which have shrunk from 10.3% of our
revenues in 2021 to 7.5% in 2024 (or ‑27%). This allowed
us to not only offset inflationary increases but to continue
improving our margins. We have utilized the rollout to
enhance the professional development of the managers
who have transitioned to the new model.
This has provided them with the opportunity to assume
greater responsibilities, manage more properties, and
benefit from increased remuneration. Consequently, we
are able to cultivate and retain our top store managers.
During this major innovation in our business model, we
have continued to increase overall performance in terms
of revenue and maintain high same store occupancy at
c. 90%. The customer response to the cluster model has
been positive. At the same time, the penetration of our
e‑rental service has increased to 50% of all new contracts.
Additionally, the use of the Shurgard’s App is now at a
similar level. Our customers want a seamless experience
and the digital solutions that Shurgard’s offer provides,
across our platform, in “remotely managed” service stores
and stand‑alone stores.
PORTFOLIO EXPANSION
Shurgard’s operational platform efficiencies paved the way
for the substantial expansion of our portfolio in 2024.
We doubled our size in the UK with the acquisition of
Lok’nStore, and within a one‑year period we executed four
deals in Germany, propelling the Group to number two in the
market. These major acquisitions were supplemented with
new developments, the pace of which has been ramping
up for the past four years. We did not stop there but also
significantly boosted our footprint in the Netherlands and
France. In total, across the acquired, developed or pipeline
assets, we will add more than 400,000 sqm between 2024
and 2026, almost 30% more than the portfolio size in 2023.
This represents approximately €1.2 billion of investment,
which is expected to deliver 8‑9% return at maturity,
or c. €100 million NOI annually.
FINANCIAL STRENGTH
The final pillar that supported our major portfolio
investment in 2024 was effective financial structures.
Shurgard’s policy of financial prudence has always
played a key role in the investments we make to grow
the business. The accelerated growth rate over the past
four years has been backed by a robust balance sheet and
modest gearing. This enabled Shurgard to obtain a BBB+
investment grade rating from S&P, the first European self‑
storage company to achieve this milestone.
04
SHURGARD ANNUAL REPORT 2024
Our first bond issuance with the BBB+ rating was a great
success, and we used the proceeds of this bond issue to
finance the Lok’nStore acquisition. We have also offered
our first optional scrip dividend in 2024, and the take‑up of
80% indicates very strong support from shareholders for
our long‑term strategy.
We have reiterated our target for both loan‑to‑value (LTV)
ratio of around 25% and 4.0x to 5.0x Net debt/Underlying
EBITDA, with a short‑ to mid‑term maximum of 35% or
above 5.0x Net debt/Underlying EBITDA. We ended 2024
at 23.3% LTV and 6.2x Net debt/Underlying EBITDA.
Shurgard’s strong financial position has enabled us to
leverage our platform to add around 30% of additional
square meters (400,000 sqm) to our current and pipeline
portfolio for 2024‑2026.
REVENUE GROWTH AND MARGIN EXPANSION
Underpinned by both organic and acquisitive growth, all
store property operating revenue grew by 13.0% in 2024.
Within this growth, same‑store revenue rose by 4.8% as we
continued to deliver strong occupancy and rate increases.
Our new cluster model has been a key driver of margin
expansion and same store margins rose to 67.8% in 2024,
from 67.4% in 2023 (+0.4pp), supported by our digital
services and efficiencies across the platform as well as the
store count growth.
ESG
In 2024, we made further progress towards our
sustainability goals, building on past improvements to
ensure we remain on track to achieve Operational Net‑
Zero carbon (scope 1 and 2) by 2030, and Material Net‑
Zero carbon (scope 3) by 2040. I encourage you to read the
Sustainability section of this report to find out how we are
putting our plan into action.
The report includes details of our main drivers for energy
consumption reduction. This includes the LED lighting
program which is complete in our existing portfolio but
will also be incorporated into the acquired properties. 2024
was also an important year for the progress of our solar
energy program. This requires substantial preparation at
each site, including suitability and cost‑benefit analysis.
We plan to equip 74 stores (in the UK, Netherlands and
Belgium) and our European Support Center with solar
panels in the coming year.
Meanwhile our heat‑pump project included a rollout of
heat pumps in all heated properties by 2029 or a third of
our total portfolio, and we are 36% of the way through the
project.
Alongside the social and community programs that
Shurgard is involved in, we have also continued to practice
strong governance as evidenced by the smooth succession
of incoming CFO Thomas Oversberg, who took the reins
from Jean Kreusch in January 2025. We are very grateful
for Jean’s 20‑year contribution to the excellent direction of
the business.
We are continually evaluating the appropriate mix
of competencies necessary for our Board. Shurgard
maintains a strong board structure that incorporates skills
from across various industries and disciplines and we
are very pleased to have a broad range of expertise that
helps to guide the company to shareholder value growth.
Additionally, after the rotation referred to by our Chairman
in his letter, five of our nine board members will be women
and 67% of our Directors are independent.
OUTLOOK
Shurgard expects all store revenue growth for 2025 of
c. 11% and for our all store NOI to grow in line with revenue.
We plan to increase our underlying EBITDA margin by
0.5pp. Cost of debt is expected to be c. €50 million for the
year 2025 and our corporate income tax level is forecasted
to be c. 18.5% of our adjusted EPRA earnings before tax.
We will propose a dividend of €1.17 and will again be
offering an optional scrip dividend to shareholders.
Shurgard has been on a very strong growth trajectory for
some years, but 2024 really stands out as exceptional;
bringing together an operational, financial and
development strategy that has and will continue to deliver
value to its shareholders.
I would like to take the opportunity to thank and recognize
the work and results from our organization and the support
from our Board of Directors.
Marc Oursin, Chief Executive Officer
05
SHURGARD ANNUAL REPORT 2024
Key financials
Shurgard has delivered a very strong financial performance in 2024, 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 2025 through 2026.
Property operating revenue
€ million (at CER)
+13.0%
2024202320222021
359.8
330.1
295.4
406.7
Adjusted EPRA Earnings
€ million
+5.7%
2024202320222021
158.4
143.6
131.0
167.4
NOI margin (Same store)
1
%
+0.2pp
2024202320222021
67.6
67.2
66.1
67.8
Adjusted EPRA Earnings per share
€
-2.4%
2024202320222021
1.76
1.61
1.48
1.71
Notes: See page 22 for notes to Key Financials.
1. Changing same store pool at the end of each fiscal year.
Number of shares (basic)
million
+8.2%
2024202320222021
90.2
89.1
88.8
97.6
Portfolio expansion investments
€ million
Equivalent to 4 years of yearly
portfolio expansion
2024202320222021
44.1
40.7
34.6
48.4
2024202320222021
2024202320222021
143.5
142.6
139.5
769.3
Income from property (NOI)
€ million (at CER)
+12.2%
2024202320222021
238.6
217.1
190.9
267.7
Underlying EBITDA
€ million (at CER)
+12.2%
2024202320222021
214.3
197.7
171.5
240.4
EPRA net tangible assets (NTA)
per share
€
+9.9%
Equity raise in
November 2023
Equity raise in
November 2023
06
SHURGARD ANNUAL REPORT 2024
Highlights of an exceptional 2024
Clusterization of the portfolio:
55% of Shurgard’s stores are now managed within clusters (service store and “remotely managed” store).
Four countries already have 80% to 90% of their properties in clusters.
Digitalization in motion: Full e-rental (from search to paid move-in) reaching 50% of
total new contracts;
50% of customers using bluetooth access applications.
OPERATIONAL EFFICIENCY: EVOLUTION OF OUR NETWORK MANAGEMENT
DELIVERING THE
DIGITAL CUSTOMER
EXPERIENCE
20 FTE
2.5
FTE
1 SM
+
1-2 ASM
District District
c. 14 FTE (-30%)
1 SM
+
1-2 ASM
Stand alone
Service
store
RM Store 2
RM Store 1
Remotely managed store (RM)
SM: Store Manager
ASM: Assistant Store Manager
Service store and Stand alone store
Cluster
Pre-clusterization Post-clusterization
REAL ESTATE GROWTH (SQM)
Future platform expansion secured: c. 416,700 sqm pipeline,
equivalent to
30% of 2023 net rentable sqm and
€1.2 billion of investment value with 8-9% yield on cost
at maturity: equivalent to c. €100 million p.a. of NOI that is a
“self-feeding model”.
0
50
100
150
200
250
F 2026F 2025A 2024A 2023A 2022A 2021A 2020
Largest sqm expansion p.a. in the industry
% of 2023
rentable sqm
105.5
74.4
64.6
65.4
55.3
47.1
236.7
In thousands sqm
Sqm total
Pipeline as % of 2023
net rentable sqm
18
16
14
12
10
8
6
4
2
0
3.4%
4.0%
7.6%
17.0
%
5.4%
4.6%
4.7%
A = Actuals F = Forecast (excluding future M&A)
07
SHURGARD ANNUAL REPORT 2024
Very solid balance sheet: first self-storage company
with strong investment-grade rating
(S&P BBB+),
successful first €500 million 10-year fixed rate bond
issuance, strong take up (80%) of first optional scrip
dividend, and doubling our revolving credit facility
capacity to €500 million
€700m
USPP indebtedness (fixed interest
rate). No encumbered assets
€290m
Drawn on a €450m floating
interest committed bank loan
facility (120bps margin on
EURIBOR, down to 100bps
with BBB+)
€500m
Rated EUR bond at an attractive
interest rate of 3.625%
for 10 years, in 2024
3.16%
Weighted average interest rate
(including new rated Bond)
€142.6m
Available cash
(at end of December 2024)
6.2x/23.3%
Net Debt to underlying EBITDA /
LTV at end of December 2024
5.4 years
Weighted average maturity
(at end of December 2024)
5.1%
Exit Capitalization rate
-10bps YoY at end of
December 2024
Debt maturity (€m)
Average tenure on the governance body
Board gender diversity
4.7
YEARS
On track to achieve operational (scope 1&2)
net-zero carbon by 2030
ESG ratings at top of the sector
STRONG RATINGS
STRENGTHENING
GOVERNANCE
1
13.7Low Risk
Female Male
50%
1. Board as of December 31, 2024.
2025
130
2027
110
2030
60
2026
390
2031
300
2034
500
50%50%
Highlights of an exceptional 2024 CONTINUED
91/100
GRESB Rating
09
SHURGARD ANNUAL REPORT 2024
2024 has been a transformative year for
Shurgard. Our platform is built to deliver
efficiencies as we grow, and we have used that
operational excellence to execute major
acquisitions that have accelerated the
expansion of our footprint in two key
geographies – the UK and Germany. At the
same time we continued to grow organically
and deliver strong revenue performance from
our same stores, which generate c. 90% of the
revenues across our portfolio.
Our proven track record of efficient and effective
integration means we are delivering value across our
expanded portfolio. Newly acquired stores enjoy the same
digital efficiencies (e‑rental penetration and Shurgard app
usage) in place across our seven geographies, and we are
well on our way to ramping up occupancy and revenue
across the new portfolio.
Throughout this period of unprecedented growth,
Shurgard has delivered excellent performance.
Buoyed by the acquisitions in Germany and the
UK, property operating revenue jumped 13.7%
to €406.7m in 2024, while our existing portfolio
of same stores also delivered a 5.4% rise in revenue.
At the same time, same store NOI margin increased by
0.4 pp to 67.8%.
THE NATURE OF GROWTH
Transformational years like 2024 demonstrate our long‑
term strategic thinking. Shurgard has been preparing the
groundwork for expansion for many years. We have the
right people – investment, development, and acquisition
experts – the right financial structures, and the right
platform to deliver service at scale, generating shareholder
value as we grow.
We now onboard 50% of customers through our full
e‑rental platform. This digitalization better meets our
customers’ needs (40% of these contracts are signed
outside of office hours, giving customers more flexibility),
while it also provides Shurgard with margin expansion
opportunities.
The Lok’nStore acquisition is a prime example of our
transformational strategy in action, and it adds new
capacity in some of the strongest self‑storage areas in
the UK.
We achieved operational integration within two days of the
deal completing, and we successfully issued our first rated
bond, utilizing the first investment‑grade rating (BBB+) of
a self‑storage company in Europe. These two factors mean
the acquisition was earnings neutral in 2024 rather than
the mid‑single digit negative originally forecasted.
STABLE GROWTH
Shurgard has set ambitious growth targets to ramp up to
90,000 sqm of additional storage annually, and we will
maintain that trajectory with a greatly enhanced portfolio.
Our platform is strong and our integration of acquisitions
and new developments is fast. This gives us the agility to
ramp up quickly, increase occupancy and reach our 8‑9%
yield target at maturity.
We operate with the trust of two strong and supportive
shareholders, both of which opted for our optional
scrip dividend offer at the half year. In total, 80% of our
shareholders opted for the scrip dividend, demonstrating
conviction in Shurgard’s strategy. The new financial
leverage from this opportunity and the strong debt rating
has given Shurgard the freedom to explore additional
value‑added expansion opportunities. We will continue to
use our agile and well‑proven strategy to achieve further
stable growth.
A remarkable year of change through
operational platform efficiency, massive
portfolio growth and financial strength
10
SHURGARD ANNUAL REPORT 2024
OPERATIONAL EFFICIENCIES:
CLUSTER MANAGEMENT
The self-storage industry continues to grow in
Europe, and Shurgard is in a unique position to
capitalize on increasing demand. Specifically,
we target urban centres and areas with high
population density and limited residential
storage options, factors that drive the demand
for self-storage solutions, leveraging both
accessibility and customer convenience to
attract long-term customers.
The proximity of our stores in these key urban areas has
had another significant advantage – the ability to operate
the remotely managed stores within a close knit cluster
from a hub store (‘service store’). The operational efficiency
and cost optimization of this new model have been proven
in this first year of operation, and we now operate around
55% of our store portfolio in clusters with remote stores.
The acquisitions we have made in 2024, as well as the
new developments completed this year, have enabled
Shurgard to add to or create new clusters, compounding
the efficiencies that come with integration. Shurgard will
continue to look for opportunities to expand this new
model while remaining focused on offering our customers
the best service across our portfolio.
CUSTOMER DIGITAL JOURNEY
Digitalization has underpinned Shurgard’s operational
efficiency for more than a decade. We recognized early
that customer behavior was moving online and then onto
mobile, and our systems have kept pace with this change
in the self-storage market. Today, our comprehensive
digital platform improves both the customer experience
and operational efficiency.
This includes an optimized website with transparent
pricing ( `the price you see, is the price you pay’) and tools
for customers to select storage sizes, contributing to an
enhanced transaction experience. Approximately 50% of
Shurgard’s contracts are now signed and paid for through
our e-rental platform, offering flexibility for customers to
complete contracts outside of business hours. This platform
reduces the need for in-person staffing, streamlining
operations while catering to customer preferences.
Our technology also underpins Shurgard’s data-driven
pricing system which uses a proprietary algorithm. This
allows the company to adjust prices dynamically based on
occupancy trends and market demand, which maximizes
revenue potential. Integration with digital access systems
and mobile apps has further enhanced operational
efficiency and security, as these tools enable customers
to manage their accounts and access units independently,
thereby fostering a more seamless and automated
experience.
In summary, our digitalized urban cluster model is
delivering economies of scale and cost savings. In addition,
our strategy enhances scalability, operational efficiency,
and customer satisfaction allowing Shurgard to be the
clear leader in the resilient European self-storage market.
Operational efficiencies and digital
customer journey
DELIVERING THE DIGITAL
CUSTOMER JOURNEY
Finding a space Lease execution Account management Daily property use
Website Digital Rental
Agreement
Comprehensive
Mobile App
Digital Property
Access
Industry-leading platform
Mobile centric
Pricing transparency
Size help
High customer utilization
and growing…
Enabling customer access and
data on property utilization
~50%
of our customers use the application
100%
of properties
E-rental penetration
(as of December 31)
60
50
40
30
20
10
0
%
‘20 ‘21 ‘22 ‘23 ‘24
11
SHURGARD ANNUAL REPORT 2024
OPERATIONAL ADVANTAGES
By integrating Lok’nStore into Shurgard’s platform, the
company expects to achieve operating, administrative
and tax synergies of €4‑5 million in the first full year,
unlock operational efficiencies, and achieve a targeted
Net Operating Income (NOI) yield of c. 8% within five to six
years. We will do this by leveraging Shurgard’s advanced
digital tools, centralized pricing model, and established
marketing strategies, all of which are targeted to improve
Lok’nStore’s operational efficiency.
Shurgard has a track record of strong NOI growth which
we achieve by managing costs while maximizing revenues.
We will use this experience to reduce operating expenses
and increase revenue through enhanced pricing strategies
and the use of our scalable operational infrastructure.
At acquisition, the Lok’nStore portfolio (owned stores)
achieved occupancy of 67%, compared with Shurgard’s
average of 90%. We aim to ramp up these stores and the
new developments in the pipeline to our existing 90%
occupancy level in two years (by December 2026).
FINANCING STRATEGY
The Lok’nStore portfolio was acquired for a total
consideration of €613 million including a secured
development pipeline cost of €83 million to be spent over
the next three years, refurbishment capex of €13 million,
and €32 million of transaction costs.
Shurgard financed the acquisition with a 10‑year €500
million Eurobond issuance in October 2024, made possible
by our recent BBB+ rating from S&P.
This had a positive impact on expected earnings, and we
were able to raise our guidance for the acquisition to be
neutral to earnings in 2024. Initially, the acquisition was
forecast to be mid‑single digit dilutive in 2024, neutral in
2025 and accretive in 2026.
INTEGRATION
Lok’nStore has been integrated into Shurgard’s UK REIT,
and the process of operational integration has been highly
successful already. We integrated data from Lok’nStore’s
customer relationship management system from day one
of the acquisition, and the store portfolio was operational
on our website from the start too. Customers at former
Lok’nStore sites were able to complete their customer
move‑ins and contracts via our e‑rental system within
two days of the deal completion. We have also integrated
our pricing model and promotions strategy as part of the
occupancy and rental ramp up process.
Shurgard’s UK operations have played an important role in
our expansion strategy for several years. Prior to the major
acquisition this year, we made a concerted effort to add
bolt‑on acquisitions where opportunities arose, increasing
our London focus where living space is at a premium and
the self‑storage market is growing. This acquisition is a
major leap forward for this strategy. We can use the new
store portfolio to expand our remotely managed strategy
where our existing stores and the acquired ones form a
cluster in close proximity. And we now have a strong
foothold in the South East and in the Greater Manchester
area, the second‑largest metropolitan area in the UK after
London.
The acquisition is a transformative move for Shurgard,
enabling rapid expansion in the UK, increasing our market
share, and driving efficiency gains. In one transaction we
have doubled our UK footprint and will use our operational
leverage to increase occupancy and rental levels.
This acquisition not only accelerates Shurgard’s growth
trajectory but also aligns well with our long‑term strategy
of market consolidation and maximizing returns through
strategic, high‑yield investments.
Revenue increase targets
Occupancy
Occupancy
Rate (CAGR to
stabilization)
Rate (CAGR to
stabilization)
67%
0%
90%
90%
2%
2%
in 2 years
in 2 years
(post store
opening)
in 5-6 years
in 5-6 years
Open
portfolio
Pipeline
Proven growth in Shurgard UK
400
380
360
340
320
300
280
260
240
275.9
297.6
366.1
396.8
336.6
2020 2022 20242021 2023
Same store portfolio of each year (in-place rent €/sqm/year)
CAGR +10%
13
SHURGARD ANNUAL REPORT 2024
ACQUISITION OF COMPETITORS
In Germany, Shurgard made three acquisitions in 2024,
which, along with the 7‑store TopBox acquisition in October
2023, added a total of 19 stores to our German portfolio.
The first acquisition of Pickens in February 2024
expanded our portfolio by six stores, three each in Berlin
and Hamburg, and 31,300 sqm for a total investment of
€131.8 million. Pickens added to our portfolio density,
increased operating efficiencies, and propelled Shurgard
to a leadership position in these areas.
We then acquired one store in Bonn with the purchase
of MietLager 365 in August 2024, complementing our
existing property in the neighborhood, from which it will be
remotely managed. The MietLager purchase is an example
of our strategy to build or acquire properties in clusters
and remotely manage nearby stores from a central
store hub.
The final German acquisition of Prime in September 2024
included five operating stores, three in the Frankfurt
region and two in Hamburg, adding 25,000 sqm for a total
investment of €108.6 million. The high‑quality freehold and
purpose‑built portfolio cemented Shurgard as the second‑
largest self‑storage provider in the country, a position of
strength from which we will continue to grow.
REDEVELOPMENTS AND NEW DEVELOPMENTS
Shurgard’s main lever of organic growth is new
developments – purpose built self‑storage facilities
located in areas with strong market economies. Between
2024 to 2026, Shurgard had 13 new development projects
planned in Germany, all within the “Big Seven” core cities
and covering about 84,000 sqm, with an estimated total
investment of €223.1 million. These new facilities are
projected to deliver an 8% yield at maturity.
Re‑developments also play a supportive role in Shurgard’s
expansion, allowing the company to maximize the use
of existing properties, particularly those with freehold
ownership. Between 2018 and 2026, Shurgard has been
engaged in six re‑development projects across Germany.
These projects add approximately 13,000 sqm to our
existing footprint, and importantly, aim to yield returns
above 10%.
DIGITAL CUSTOMER JOURNEY
AND OPERATIONAL EFFICIENCY
Germany is both a continuation of our effective growth
strategy and a proof case of its effectiveness. We are using
the increased number of acquisitions to roll out operational
efficiencies that will deliver long term shareholder growth.
We are doing this by rationalizing operations through
district‑based management, using the additional stores in
our portfolio to increase remote management capabilities.
Previously, where our stores were clustered in a district,
all would have been managed on site. The successful
trial and roll out of our remotely managed stores in other
markets is allowing Shurgard to complement this new
network management concept in our expanded German
market. For example, in cases where we have eight stores
in a district, 20 full time equivalent employees have been
reduced to 14 without a decline in service, saving 30% of
costs through natural attrition.
Dusseldorf is a prime example of acquisitions and cluster
management coming together. There we have four clusters
that include both a serviced store and a remotely managed
store, increasing efficiency and reducing cost. We have
been able to develop this strategy through the addition of
new developments as well as via the TopBox acquisition,
which added two additional stores, both of which became
the service store for two existing, now remote, stores.
Shurgard aims to improve efficiencies by increasing remote
management capabilities where applicable. We always
take a measured approach to this new model, determining
customer demand and staffing requirements to optimize
rental and occupancy while delivering the service our
customers expect.
Shurgard’s operational strategy is built around scalability,
operational efficiency, digital transformation, and
customer focus. In Germany, the outcome of this strategy
for shareholders is that we expect to triple our NOI in eight
years from €19 million in 2022 to €67 million in 2030.
The €564 million invested in that period will generate
€40 million of additional NOI with a yield of around 8%.
With 80% of our portfolio in the “Big Seven” cities where
strong demographics and high urban density generate
self‑storage demand, Shurgard will continue to execute
on our three levers of growth to deliver consistent
shareholder returns.
15
SHURGARD ANNUAL REPORT 2024
Shurgard’s significant expansion of its portfolio
in 2024 presents a unique opportunity to
elevate our sustainability efforts. With more
properties, we have a greater platform to
implement ESG-focused practices.
Shurgard’s sustainability strategy is driven by our
commitment to operational Net-Zero carbon (scope 1&2)
by 2030 and material Net-Zero carbon by 2040 (scope
1-3). Solar energy, LED lighting, heat pump installation and
a building management system are the four structural
initiatives that are the driving force behind our operational
Net-Zero targets.
GREEN AMBITIONS
In 2024 we took a big step forward in our solar power
ambitions. Shurgard has completed a full inventory of
the solar installations already in place at 33 properties
in the UK. This includes a metering system and a central
dashboard from which to monitor production, internal use,
and exporting to the grid.
We also completed a survey of our portfolio in the UK
and the Netherlands to determine the business case
and feasibility of solar installation at each property.
This includes roof bearing capacity, electricity generation,
consumption and storage.
At the end of 2024, including the Lok’nStore acquisition,
we had solar generation at 33 properties in the UK (c. 46%).
We expect to install solar panels at a further 36 stores in
the UK and 23 stores in the Netherlands where we have
already undertaken full audits and tenders. Shurgard
is also working towards around 16 solar installations at
properties in Belgium.
The total investment in 2025 to install solar power
generation in the UK will be approximately €2.5 million,
€0.6 million in the Netherlands and €1.4 million in Belgium.
The return on investment is expected to be inline with our
target yield (8-9%).
Shurgard will utilize up to half the electricity generation
at the property, while the remainder will, where possible,
be sold back into the grid based on site requirements,
quantity of power and storage capacity. We expect to save
380 tons of CO
2
annually from the solar power generated
at Shurgard’s properties, equivalent to 18% of the CO
2
generated by electricity consumption in these three
countries.
Meanwhile, all our properties are equipped with LED
lighting, and the recent acquisitions provide an opportunity
to expand that initiative into our new portfolio. We also
completed 47 heat pump installations by the end of 2024,
and expect this number to increase to 78 by the end of
2025. By 2029, all our properties will be equipped with heat
pumps, reducing gas consumption by 100% (scope 1).
GOVERNANCE
Shurgard is equally focused on the social and governance
aspects of ESG, and to this end we welcomed independent
directors Paula Hay-Plumb and Candace Krol onto our
Board in 2024. Both new Board members will strengthen
Shurgard’s governance and diversity.
Our ESG report, incorporated into this integrated report,
describes the extensive programs, processes and
achievements that underpin Shurgard’s commitment
to sustainability. We have once again been recognized
for these efforts by organizations like GRESB, EPRA,
Sustainalytics and MSCI, and continue to lead by example
in our sector. Our targets are aimed at supporting global
efforts to reduce carbon, achieve carbon neutrality, improve
environmental outcomes and encourage social cohesion.
We will continue to build on these solid foundations.
Sustainability
momentum
sector leader 2024
17
SHURGARD ANNUAL REPORT 2024
SHURGARD ANNUAL REPORT 2024
18
THE SHURGARD SHARE
Stock performance
1
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).
BASIC SHARE DATA
ISIN / common code GG00BQZCBZ44
CFI code ESVUFR
Ticker SHUR
Stock exchange Euronext Brussels
Shares issued / outstanding as of December 31, 2024 98,486,798
Subscribed capital €70,287,010
Share price as of December 31, 2024
1
€35.85
52-week high / low
2
€43.73 / €34.65
Market capitalization as of December 31, 2024 €3,531 million
Average daily trading volume
3
159,554 shares
1 Closing price on last trading day of the month.
2 In each case from start of trading on January 1, 2024 to December 31, 2024, 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 full fiscal year. For the first half of 2024, our
Board of Directors approved a half-year dividend of €0.58 per share or €56.5 million, paid September 16, 2024.
For the half-year dividend, the Board also decided to offer shareholders, by way of an optional scrip dividend,
the possibility of contributing their claim arising from the distribution of profits, into the capital of the Company
against the issue of new shares, in addition to the option of receiving the dividend in cash, and the option of
opting for a combination of the two preceding options. More than 80% of our shareholders opted for a optional
scrip dividend for the half-year dividend.
The Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2024 of
€0.59 per share or €58.1 million, based on the number of shares outstanding as of December 31, 2024.
Shurgard;
84.0%
EURO STOXX
600;
72.6%
FTSE EPRA Nareit;
-3.9%
-60%
-30%
0%
30%
60%
90%
120%
150%
180%
210%
30/09/2018
30/11/2018
31/01/2019
31/03/2019
31/05/2019
31/07/2019
30/09/2019
30/11/2019
31/01/2020
31/03/2020
31/05/2020
31/07/2020
30/09/2020
30/11/2020
31/01/2021
31/03/2021
31/05/2021
31/07/2021
30/09/2021
30/11/2021
31/01/2022
31/03/2022
31/05/2022
31/07/2022
30/09/2022
30/11/2022
31/01/2023
31/03/2023
31/05/2023
31/07/2023
30/09/2023
30/11/2023
31/01/2024
31/03/2024
31/05/2024
31/07/2024
30/09/2024
30/11/2024
SHURGARD ANNUAL REPORT 2024
19
The Board further decided to continue offering shareholders the possibility of an optional scrip dividend. A press
release detailing the optional scrip dividend modalities for this second and final dividend will be issued in May
2025, for a dividend payment in June 2025.
As it has in the past, Shurgard will continue to review its dividend policy to ensure it remains competitive.
SHARE TRADING
KBC Securities was appointed as liquidity provider 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, 2024:
Shareholder Number %
Public Storage Group 34,286,303 34.8
New York State Common Retirement Fund (together with
its subsidiary Shurgard European Holdings LLC)
1
33,343,077 33.9
Resolution Capital Ltd 3,361,146 3.4
Free float 27,496,272 27.9
Total 98,486,798 100.0
1 An agreement to act in concert exists between Public Storage group, New York State Common Retirement Fund and Shurgard European Holdings LLC.
SHURGARD 2018
20
MANAGEMENT REPORT
SHURGARD ANNUAL REPORT 2024
21
TABLE OF CONTENTS
Key financials ...................................................................................................................................................................................... 22
Introductory remarks.........................................................................................................................................................................23
Group overview ...................................................................................................................................................................................23
Market overview ................................................................................................................................................................................ 26
Growth strategy .................................................................................................................................................................................. 27
Property portfolio .............................................................................................................................................................................. 28
Operational and financial review ................................................................................................................................................... 31
Group results ............................................................................................................................................................................. 31
EPRA KPIs .................................................................................................................................................................................. 40
EPRA NAV METRICS ................................................................................................................................................................. 42
Liquidity ...................................................................................................................................................................................... 42
Cash Flow overview ................................................................................................................................................................. 43
Financial position ..................................................................................................................................................................... 44
Dividend ...................................................................................................................................................................................... 45
Employees .................................................................................................................................................................................. 46
Risks ............................................................................................................................................................................................. 46
Events after the reporting period ........................................................................................................................................ 46
Sustainability report .......................................................................................................................................................................... 47
Shurgard’s ESG highlights..................................................................................................................................................... 48
Shurgard Self Storage ............................................................................................................................................................. 51
Sustainability Report General information ...................................................................................................................... 52
Environmental information ................................................................................................................................................... 71
Social information .................................................................................................................................................................. 122
Governance information ....................................................................................................................................................... 149
Assurance & ESRS Index ...................................................................................................................................................... 172
Remuneration report ....................................................................................................................................................................... 187
Principal risks and uncertainties ................................................................................................................................................ 198
Related Party Transactions .......................................................................................................................................................... 210
Responsibility Statement .............................................................................................................................................................. 210
SHURGARD ANNUAL REPORT 2024
22
KEY FINANCIALS
(in € million - except where indicated
otherwise - excluding property under
management contract)
Q4 2024 Q4 2023
+/-
(CER)
1
FY 2024 FY 2023 +/-
+/-
(CER)
1
Property KPIs at period end
Number of properties 318 275 318 275 15.6%
Closing rentable sqm
2
1,626 1,391 1,626 1,391 16.9%
Closing rented sqm
3
1,384 1,207 1,384 1,207 14.7%
Closing occupancy rate
4
85.2% 86.8% 85.2% 86.8% -1.6pp
Property KPIs for the period
Average rented sqm
5
1,388 1,212 14.5% 1,296 1,196 8.3%
Average occupancy rate
6
85.9% 88.2% -2.3pp 86.6% 88.3% -1.7pp
Average in-place rent (in € per sqm)
7
282.7 267.9 4.7% 276.1 261.3 5.7% 5.0%
Average revPAM (in € per sqm)
8
275.9 270.0 1.4% 271.9 264.1 3.0% 2.4%
Financial KPIs for the period
Property operating revenue
9
111.5 92.7 19.3% 406.7 357.7 13.7% 13.0%
Income from property (NOI)
10
76.1 64.1 17.8% 267.7 237.2 12.9% 12.2%
NOI margin
11
68.2% 69.1% -0.8pp 65.8% 66.3% -0.5pp -0.5pp
Underlying EBITDA
12
68.9 56.2 21.8% 240.4 213.0 12.9% 12.2%
Adjusted EPRA earnings
13
43.9 43.9 -0.9% 167.4 158.4 5.7% 5.0%
Adjusted EPRA earnings per share
(basic) (in €)
14
0.45 0.47 -6.0% 1.71 1.76 -2.4% -3.0%
Average number of shares
(in millions - basic)
98.5 93.4 5.4% 97.6 90.2 8.2%
Total dividend per share (in €) 1.17 1.17 0.0%
Financial KPIs for the period FY 2024 FY 2023 +/-
EPRA net tangible assets (NTA)
15
4,781.6 4,307.8 11.0%
Loan-to-value (LTV)
16
23.3% 13.0% 10.3pp
Financial KPIs for the period
FY 2024
FY 2023
+/-
Interest coverage ratio (ICR)
17
8.0x 10.6x -2.6x
Net debt/Underlying EBITDA
18
6.2x 3.1x 3.1x
1 In the constant exchange rate (CER) comparison, 2023 financials are recalculated using 2024 exchange rates.
2 Closing rentable sqm is calculated as the sum of available sqm (in thousands) for customer storage use at our stores, as of the reporting date.
3 Closing rented sqm is calculated as the sum of sqm (in thousands) 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 calculated as the sum of sqm (in thousands) 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 2024
23
INTRODUCTORY 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.
1
We started our operations in 1995 and are one of
the pioneers of the self-storage concept in Europe. As of December 31, 2024, we operate 335 self-storage stores
(including 17 stores under management contract) in France, the Netherlands, the United Kingdom, 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 coverage 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 2024 compared
with 2023.
(in € million) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Property operating revenue 111.5 92.7 20.2%
406.7 357.7 13.7%
NOI 76.1 64.1 18.7% 267.7 237.2 12.9%
NOI margin 68.2% 69.1% -0.9pp 65.8% 66.3% -0.5pp
1 FEDESSA “European Self Storage Annual Survey” 2024.
SHURGARD ANNUAL REPORT 2024
24
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 European support center. This centralization of skills and management,
together with our new cluster operating model, enables us to run a lean organization and provide significant
operational leverage. The resulting economies of scale have a direct positive impact on our same store NOI margin,
which we managed to increase to 67.8% in 2024 compared with 67.4% in 2023 despite significant pressure from
inflation and
increased real estate taxes.
Our platform approach relies on consistency in our performance measures and key support functions across the
portfolio. This means managing the yield achieved by 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, 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 Luxembourg, France, the Netherlands, the United Kingdom,
Sweden, Germany, Belgium and Denmark.
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, 2024, the Board of
Directors comprised the following 10 members. They are appointed for one year, with their mandate expiring at the
2025 annual shareholders’ meeting.
SHURGARD ANNUAL REPORT 2024
25
Name Position Age
Ian Marcus Independent Chairman 66
Marc Oursin Director/Chief Executive Officer 62
Z. Jamie Behar
1
Director 67
Tom Boyle
2
Director 41
Lorna Brown Independent Director 49
Muriel De Lathouwer Independent Director 52
Frank Fiskers Independent Director 63
Paula Hay-Plumb Independent Director 64
Candace Krol
3
Independent Director 63
Padraig McCarthy Independent Director 64
1 Director elected on the designation of New York State Common Retirement Fund (NYSCRF).
2 Director elected on the designation of Public Storage.
3 Candace Krol was appointed as additional Board member in November 2024. She will hold office until the annual general meeting of 2025 and will then be eligible
for re-election
The biographies of the Directors are available in our Sustainability Report 2024.
As of December 31, 2024, the Senior Management of the Group was made up of the following five members:
Name Responsibilities Age Initial appointment
Marc Oursin Chief Executive Officer 62 January 9, 2012
Jean Kreusch Chief Financial Officer 60 November 1, 2003
Duncan Bell Chief Operating Officer 61 April 14, 2009
Ammar Kharouf Director Legal/HR 54 March 17, 2014
Isabel Neumann Chief Investment Officer 49 August 30, 2021
SHURGARD ANNUAL REPORT 2024
26
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 70%) and business users (approximately 30%)
1
.
Individuals primarily use self storage as a “remote attic or basement” to store household goods, while businesses
often store for example 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 9,600 facilities across Europe, providing 16.5 million sqm of space.
1
In the seven
countries where we operate, there are c. 12.4 million sqm of rentable area across approximately 7,000 self-storage
properties (including containers).
1
The largest self-storage market in Europe is the United Kingdom, accounting for 35% of total facilities. Over 68%
of the facilities are located in four countries within Europe (UK, France, Germany and Spain).
1
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
fragmented. We have a market share of around 28% in the capital cities where we operate.
2
Industry growth has been driven by rising customer demand, supported by demographic and macroeconomic trends,
increasing customer awareness of self storage, and the continued development of 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 self-storage 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 Fedessa report 2024.
2 Internal estimate.
SHURGARD ANNUAL REPORT 2024
27
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, South-East UK, Paris, the “Big Seven” cities in Germany (such as Berlin and Hamburg), 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
Through our 92% freehold
1
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 the rentable area.
FOOTPRINT EXPANSION
With our strong development team of dedicated development, acquisition and construction specialists, we are
seeking to add 90,000 sqm per year 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 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.
1 Including long-term lease agreements of at least 80 years remaining life (“long leasehold properties”).
SHURGARD ANNUAL REPORT 2024
28
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 17 stores under management contract added through the
acquisition of Lok’nStore) has grown to a network of 335 properties comprising 1,687,621 net rentable sqm as of
December 31, 2024, representing a growth of 20.7% compared with prior year. While Shurgard does not own the
above-mentioned properties under management contract, we receive a management fee in return for operating
them under our operating model.
We focus the operation of our owned properties in urban areas across Europe, with 94% of our properties located
in capital and major cities. At the end of December 2024, 92% 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 86.6% in 2024. The average
in-place rent per sqm was €276.1 during the period.
The following table shows our owned portfolio by country (excluding stores under management contract), as of
December 31, 2024:
Total
number of
properties
Net rentable
sqm (in
thousands)
Freehold
and long
leasehold
1
Average
occupancy
rate
2
Average in-
place rent (in
€ per sqm)
3
France
66
329
96.9%
87.8%
268.8
The Netherlands 68 364 83.9% 88.3% 242.6
The United Kingdom
72
350
88.3%
79.9%
377.7
Sweden 39 197 96.8% 90.0% 235.7
Germany
42
215
97.3%
83.4%
280.8
Belgium 21 118 100.0% 91.3% 236.2
Denmark
10
54
100.0%
90.9%
303.4
Total 318 1,626 92.5% 86.6% 276.1
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 2024
29
PORTFOLIO EXPANSION
Property
(In € thousands)
Region Country
Project
status
1
Completion
date
Net
sqm
Direct
project cost
/
purchase
price
2
Opened in 2024 236,725 769,277
Major redevelopments
Top Box major
redevelopments
NRW/Frankfurt Germany C Dec-24 3,686 1,642
Hayes London UK C Dec-24 4,194 10,175
Direct access units
3
- - C Oct-24 2,898 2,932
New developments
Tottenham London UK C Apr-24 8,168 22,304
Nieuwegein Randstad Netherlands C Jul-24 4,533 8,687
Almere Veluwsekant Randstad Netherlands C Oct-24 3,800 8,071
Charlottenburg Berlin Germany C Oct-24 4,923 15,480
M&A / Asset Acquisitions
Box a la Carte (Combs-la-
Ville)
Paris France C Apr-24 4,062 9,273
Pickens (6 properties) Berlin/Hamburg Germany C Feb-24 31,300 120,000
Bonn Mietlager NRW Germany C Aug-24 1,200 3,800
Lok'nStore
4
UK UK C Aug-24 127,561 427,000
Opslagman Amsterdam Netherlands C Aug-24 10,300 20,000
Prime (5 properties)
Hamburg/Frankfurt
area
Germany C Sep-24 25,000 100,000
Aldershot (Lok'nStore) London – South-East UK C Nov-24 5,100 19,913
Scheduled to open in 2025 74,426 175,349
Major redevelopments
Heerenveen Randstad Netherlands C Jan-25 561 771
Waterloo Brussels Belgium UC 2025 870 2,636
Forest Brussels Belgium UC 2025 319 1,627
Mannheim (Top Box) Frankfurt area Germany UC 2025 1,410 886
Handen Stockholm Sweden UC 2025 1,582 4,448
Peterborough (Lok'nStore) East of England UK UC 2025 2,453 858
Southwark London UK UC 2025 2,644 8,063
New developments
Cité Internationale Lyon France UC 2025 2,321 3,505
Bercy Saint Emilion Paris France UC 2025 2,764 4,460
Haussman Printemps Paris France UC 2025 3,827 6,416
Roedelheim Frankfurt Germany UC 2025 7,329 21,012
1 property NRW Germany CPA 2025 6,174 16,178
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
Beverwijk Randstad Netherlands UC 2025 4,353 9,260
Den Haag Kerketuinen Randstad Netherlands UC 2025 4,363 11,095
SHURGARD ANNUAL REPORT 2024
30
Zaandam Randstad Netherlands UC 2025 5,352 11,703
Rotterdam Oostzeedijk Randstad Netherlands UC 2025 3,272 9,097
Bolton (Lok'nStore) Greater Manchester UK UC 2025 5,349 9,436
Scheduled to open in 2026 105,547 267,635
Major redevelopments
Montigny-le-Bretonneux Paris France UC 2026 4,722 7,276
Epinay Paris France UC 2026 1,279 3,986
Porte de Clignancourt Paris France UC 2026 1,390 12,243
New developments
Marché Saint Honoré Paris France UC 2026 1,382 2,788
1 property Paris France PS 2026 2,381 3,672
1 property Berlin Germany PS 2026 10,321 27,915
1 property Berlin Germany PS 2026 6,734 17,250
1 property Frankfurt Germany PS 2026 5,865 13,254
1 property (Top Box) Frankfurt Germany PS 2026 5,151 11,724
1 property (Top Box) NRW Germany PS 2026 4,068 9,990
1 property NRW Germany PS 2026 7,219 16,634
Bad Cannstatt Stuttgart Germany UC 2026 6,748 19,715
1 property London UK PS 2026 6,065 22,137
1 property London UK PS 2026 5,704 21,036
1 property London UK PS 2026 5,340 18,874
Cheshunt (Lok'nStore) East of England UK UC 2026 5,602 8,870
Altrincham (Lok'nStore) Greater Manchester UK UC 2026 5,937 10,280
Barking - Dagenham
(Lok'nStore)
London UK UC 2026 7,822 13,625
Eastbourne - Lottbridge
Drove (Lok'nStore)
South-East UK UC 2026 5,351 7,877
Milton Keynes - Crownhill
(Lok'nStore)
South-East UK UC 2026 6,466 18,487
Total portfolio expansion 416,698 1,212,261
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 but excluding absorption costs.
3 Direct access units in France, Germany and the Netherlands.
4 Price excludes transaction costs and development pipeline. Number of stores includes one development opened in April (Staines).
In 2024, our total expansion pipeline grew significantly, with 30.0% (or 416,698 sqm) of our rentable sqm realized,
being developed, acquired, under construction and secured, compared with 17.2% (or 231,389 sqm) in 2023. Our
pipeline represents a direct project cost of c. €1,212.3 million for the period 2024-2026 and will deliver an additional
NOI return of 8% to 9% at maturity (c. €100 million per year).
PROPERTY LAYOUT
Although the size of our properties varies, most consist of multi-story buildings. The rental units typically range
from one to 20 sqm in size. The average unit size is approximately six sqm, although unit sizes are typically smaller
in major metropolitan areas. As of December 31, 2024, we had approximately 800 units on average at each property,
and our properties had an average rentable area of over 5,100 sqm.
SHURGARD ANNUAL REPORT 2024
31
OPERATIONAL AND FINANCIAL REVIEW
GROUP RESULTS
(in € thousands, except where indicated
otherwise)
Q4
2024
Q4
2023
+/-
CER
FY 2024 FY 2023 +/- +/- CER
Real estate operating revenue 111,309 92,805 19.0% 406,503 357,923 13.6% 12.9%
Real estate operating expense (35,422) (28,644) 22.5% (138,943) (120,470) 15.3% 14.6%
Net income from real estate operations 75,887 64,161 N/A 267,560 237,453 12.7% 12.0%
General, administrative and other expenses (6,956) (8,190) -15.2% (27,568) (25,961) 6.2% 6.1%
of which depreciation and amortization
expense
(1,111) (893) 24.3%
(4,121) (3,377)
22.0%
22.0%
Royalty fee expense (1,098) (916) 19.0% (4,008) (3,531) 13.5% 12.8%
Other expenses (3,877) (921) N/A (6,932) (921) N/A N/A
Operating profit before property related
adjustments
63,956 54,134 17.2% 229,052 207,040 10.6% 9.9%
Valuation gain from investment property and
investment property under construction and
gain on disposal
182,220 170,340 5.8% 331,073 294,350 12.5% 11.5%
Operating profit 246,176 224,474 8.5% 560,125 501,390 11.7% 10.8%
Finance costs (15,277) (7,554) 100.7% (40,647) (23,390) 73.8% 72.5%
Finance income 1,252 2,127 -41.1% 6,018 3,120 92.9% 92.9%
Profit before tax 232,151 219,047 4.9% 525,496 481,120 9.2% 8.4%
Income tax income/(expense) (53,567) (40,611) 32.0% (121,818) 53,283 N/A N/A
Attributable profit for the period 178,584 178,436 -1.2% 403,678 534,403 -24.5% -25.6%
Profit attributable to non-controlling interests (245) (461) -46.9% (827) (1,090) -24.1% -24.1%
Profit attributable to ordinary equity
holders of the parent
178,339 177,975 -1.1% 402,851 533,313 -24.5% -25.6%
Earnings per share attributable to ordinary
equity holders of the parent:
Basic, profit for the period (in €) 1.98 1.91 2.6% 4.13 5.91 -30.1% -31.3%
Diluted, profit for the period (in €) 1.97 1.90 2.6% 4.11 5.89 -30.2% -31.3%
Adjusted EPRA earnings per share
(basic - in €)
0.45 0.47 -6.0% 1.71 1.76 -2.4% -3.0%
Average number of shares
(basic - in millions)
98.5 93.4 5.4% 97.6 90.2 8.2% 8.2%
The following discussion of Group revenue and expenses down to underlying EBITDA is on a constant exchange rate
(CER) basis, where 2023 actual exchange rate (AER) numbers are recalculated using 2024 exchange rates.
SHURGARD ANNUAL REPORT 2024
32
REAL ESTATE OPERATING REVENUE
Our real estate operating revenue is comprised of property operating revenue, which includes rental revenue, fee
income from customer goods coverage, ancillary revenue, and other revenue.
(in € thousands) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Rental revenue 98,101 81,846 19.9%
357,757 314,386 13.8%
Fee income from customer goods insurance
1
10,462 8,709 20.1% 37,961 33,858 12.1%
Ancillary revenue
2
2,930 2,922 0.3% 10,963 11,538 -5.0%
Property operating revenue (CER) 111,493 93,477 19.3% 406,681 359,782 13.0%
Other revenue - net
3
(184) 56 N/A (178) 222 -180.2%
Real estate operating revenue (CER) 111,309 93,533 19.0% 406,503 360,004 12.9%
Foreign exchange - (728) -100.0% - (2,081) -100.0%
Real estate operating revenue (AER) 111,309 92,805 19.9% 406,503 357,923 13.6%
1 Fee income from providing customer goods coverage is in scope of IFRS 15, except for UK, to which IFRS 17 applies.
2 Ancillary revenue consists of merchandise sales and other revenue from real estate operations.
3 Other revenue – net is negative as costs incurred exceeded management fees earned, resulting in a net loss.
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 2024, rental revenue increased by 13.8% to €357.8 million, from €314.4 million in 2023. This was driven by an
increase in rental rates (up 5.0% compared with 2023) combined with an 8.3% growth in average rented sqm.
Across our expanded network, our closing rented sqm increased by 14.7% to 1,384 thousand sqm as of
December 31, 2024 from 1,207 thousand sqm on December 31, 2023.
Fee income from customer goods coverage
Customers renting storage from Shurgard are required to have coverage for their stored goods. They can use their
own insurance provider or Shurgard can offer customer goods protection. Any advice and claims regarding customer
goods coverage 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 January 1, 2024, the Company had implemented “SHURprotect”
for its UK tenants, a program whereby UK
tenants are compensated for damages to their goods directly by the Group’s UK subsidiary. In essence, Shurgard UK
is subject to claims up to GBP 15,000 from tenants via this program, in exchange for a fee. An insurance
intermediary indemnifies the UK subsidiary via a contractual arrangement and, similar to the situation in 2023,
cedes
the claims to the Company via a quota share reinsurance agreement.
As of December 31, 2024, fee income from customer goods coverage increased by 12.1% to €38.0 million (2023:
€33.9 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.
SHURGARD ANNUAL REPORT 2024
33
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 decreased from €11.5 million to €11.0 million
between 2023 and 2024, driven by lower merchandise sales as a result of a more focused key-assortment offering.
REAL ESTATE OPERATING EXPENSE
(in € thousands) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Payroll expense 12,950 10,871 19.1%
47,067 42,308 11.2%
Real estate and other taxes 4,068 2,837 43.4% 22,936 19,536 17.4%
Repairs and maintenance 3,559 3,348 6.3% 13,944 13,355 4.4%
Marketing expense 3,530 2,590 36.3% 11,888 9,960 19.4%
Utility expense 1,928 1,023 88.5% 6,083 3,957 53.7%
Doubtful debt expense 2,023 1,378 46.8% 6,962 5,506 26.4%
Cost of insurance and merchandise sales 1,188 891 33.3% 4,592 4,582 0.2%
Other operating expenses
1
6,176 5,973 3.4% 25,471 22,000 15.8%
Real estate operating expense (CER) 35,422 28,911 22.5% 138,943 121,204 14.6%
Foreign exchange - (267) -100.0% - (734) -100.0%
Real estate operating expense (AER) 35,422 28,644 23.7% 138,943 120,470 15.3%
1 Other operating expenses mainly include travel expenses, legal and consultancy fees, insurance expenses, non-deductible VAT, information system expenses
and property lease expenses.
During 2024, our real estate operating expenses went up by 14.6% at CER. This is mainly attributable to an increase
in payroll expenses (€4.8 million) as we have added more stores, mainly through acquisitions. Furthermore, other
operating expenses (up €3.5 million) increased due to (i) the addition of stores, (ii) higher card processing fees
following the transition to a new integrated and standardized payment platform and (iii) a one-off positive impact
in irrecoverable VAT in the prior year. Shurgard also experienced in UK the second year of real estate tax increase
announced by the authorities for 2023, 2024 and 2025. In total, real estate taxes went up by €3.4 million. Despite
the increases in costs over the last two years, the Group continued to improve its same store NOI margin by 0.4pp
in 2024. Utility expenses increased by €2.1 million following price increases in all markets and the addition of stores.
Doubtful debt expenses, which went up by €1.5 million mainly following the addition of stores, remain consistently
below 2% of revenue. Finally, marketing expenses increased by €1.9 million, reflecting the higher costs of online
advertising and our larger portfolio.
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 12.0%, to
€267.6 million in 2024, from €238.8 million in 2023. The growth highlights the strong and unique 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 2024
34
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 2024 Q4 2023 +/-
FY 2024 FY 2023 +/-
Same stores 244 244 -
244 244 -
Non-same stores 74 31 43 74 31 43
All store 318 275 43 318 275 43
Same store property operating revenue in €
thousands
91,038 86,574 5.2% 353,703 337,416 4.8%
Non-same store property operating revenue in €
thousands
20,455 6,903 196.3% 52,978 22,366 136.9%
All store property operating revenue in €
thousands
111,493 93,477 19.3% 406,681 359,782 13.0%
Same stores
The same store facilities segment for a given year comprises stores in operations for more than three full years as
of January 1 of that year in the case of self-developed properties, or stores in operation for one full year as of
January 1 of that year in the case of properties that have been acquired. The non-same store facilities segment
comprises any other self-storage facilities that we operate. The following table shows certain performance
measures across our same store portfolio.
(at CER ) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Property KPIs at period end
Number of properties 244 244 - 244 244 -
Closing rentable sqm
1
1,239 1,228 0.9% 1,239 1,228 0.9%
Closing rented sqm
2
1,105 1,097 0.7% 1,105 1,097 0.7%
Closing occupancy rate
3
89.2% 89.3% -0.2pp 89.2% 89.3% -0.2pp
Property KPIs for the period
Average rented sqm
4
1,115 1,107 0.7% 1,112 1,107 0.4%
Average occupancy rate
5
89.9% 90.1% -0.2pp 89.8% 90.2% -0.4pp
Average in-place rent (in € per sqm)
6
289.1 275.1 5.1% 281.3 267.2 5.2%
Average revPAM (in € per sqm)
7
293.8 282.0 4.2% 285.7 274.8 4.0%
Financial KPIs for the period
Property operating revenue
8
in € thousands 91,038 86,574 5.2% 353,703 337,416 4.8%
Income from property (NOI)
9
in € thousands 64,458 60,754 6.1% 239,802 227,437 5.4%
NOI margin
10
70.8% 70.2% 0.6pp 67.8% 67.4% 0.4pp
1 Closing rentable sqm is calculated as the sum of available sqm (in thousands) for customer storage use at our stores, as of the reporting date.
2 Closing rented sqm is calculated as the sum of sqm (in thousands) rented by customers, as of the reporting date.
3 Closing occupancy rate is presented in % and calculated as the closing rented sqm divided by closing rentable sqm 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
coverage 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 2024
35
Our average rented sqm increased slightly in 2024, to 1,112 thousand sqm, 0.4% higher than the same period last
year. The average in-place rent per sqm for our same store facilities grew by 5.2% to €281.3 in 2024 from €267.2
in 2023.
Property operating revenue generated by our same store facilities increased by €16.3 million or 4.8% to
€353.7 million in 2024, driven by improvements in average in-place rental rates and the aforementioned increase
in average rented sqm.
Income from property (NOI) for our same stores rose from €227.4 million in 2023 to €239.8 million in 2024, with
the same store NOI margin increasing from 67.4% in 2023 to 67.8% in 2024. We achieved this against a strong
inflationary background, reflecting our ability to control operating expenses and leverage our strong sales.
Non-same stores
Occupancy, in-place rent and margin contribution can vary greatly between these properties depending on their
maturity.
Non-same store property operating revenue increased by €30.6 million versus the prior year (€53.0 million in 2024).
This increase was due to the continued “ramp-up” at our new properties and the net addition of 43 non-same
stores.
SHURGARD ANNUAL REPORT 2024
36
OPERATIONS BY COUNTRY
All store
Property operating revenue
(in € thousands at CER)
Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
France 23,126 21,891 5.6%
89,242 85,377 4.5%
The Netherlands 22,481 20,125 11.7% 84,866 77,403 9.6%
The United Kingdom 28,420 19,289 47.3% 91,693 73,122 25.4%
Sweden 11,891 11,460 3.8% 46,920 46,255 1.4%
Germany 13,998 9,740 43.7% 48,709 34,963 39.3%
Belgium 7,352 6,935 6.0% 28,626 26,890 6.5%
Denmark 4,225 4,037 4.7% 16,625 15,772 5.4%
Total 111,493 93,477 19.3% 406,681 359,782 13.0%
Same store
Property operating revenue
(in € thousands at CER)
Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
France 21,212 20,351 4.2%
82,294 80,033 2.8%
The Netherlands 19,587 18,152 7.9% 75,454 70,304 7.3%
The United Kingdom 18,745 18,182 3.1% 72,510 69,282 4.7%
Sweden 11,381 11,055 3.0% 45,002 44,780 0.5%
Germany 8,536 7,862 8.6% 33,192 30,355 9.3%
Belgium 7,352 6,935 6.0% 28,626 26,890 6.5%
Denmark 4,225 4,037 4.7% 16,625 15,772 5.4%
Total 91,038 86,574 5.2% 353,703 337,416 4.8%
Same store
Average occupancy rate
1
Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
France 89.5% 88.8% 0.7pp
89.2% 88.9% 0.4pp
The Netherlands 91.0% 91.9% -0.9pp 91.0% 91.4% -0.4pp
The United Kingdom 87.7% 86.9% 0.9pp 87.3% 87.6% -0.2pp
Sweden 91.4% 90.7% 0.7pp 90.8% 91.1% -0.3pp
Germany 87.7% 90.1% -2.3pp 88.5% 90.2% -1.7pp
Belgium 91.2% 92.6% -1.4pp 91.3% 92.4% -1.1pp
Denmark 90.7% 92.2% -1.5pp 90.8% 91.7% -0.9pp
Total 89.9% 90.1% -0.2pp 89.8% 90.2% -0.4pp
Same store
Average in-place rent
2
(at CER)
Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
France 283.7 272.9 4.0%
276.0 267.9 3.0%
The Netherlands 259.5 239.6 8.3% 250.0 232.3 7.6%
The United Kingdom 410.9 394.8 4.1% 396.8 373.6 6.2%
Sweden 241.1 238.3 1.2% 239.9 240.0 0.0%
Germany 305.2 284.3 7.3% 297.0 272.9 8.8%
Belgium 243.2 226.7 7.3% 236.2 217.3 8.7%
Denmark 306.4 293.9 4.3% 303.4 288.2 5.3%
Total 289.1 275.1 5.1% 281.3 267.2 5.2%
SHURGARD ANNUAL REPORT 2024
37
Same store
NOI margin
3
(at CER)
Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
France 69.5% 70.0% -0.5pp
62.9% 63.4% -0.5pp
The Netherlands 73.3% 73.3% -0.1pp 71.8% 71.5% 0.3pp
The United Kingdom 64.4% 63.9% 0.5pp 63.3% 62.9% 0.5pp
Sweden 74.1% 72.3% 1.7pp 72.3% 71.7% 0.6pp
Germany 72.6% 72.2% 0.4pp 70.6% 70.1% 0.5pp
Belgium 75.8% 72.5% 3.3pp 70.0% 67.8% 2.3pp
Denmark 73.6% 71.6% 2.0pp 71.9% 71.6% 0.3pp
Total 70.8% 70.2% 0.6pp 67.8% 67.4% 0.4pp
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.
2 Average in-place rent is presented in euros per sqm per year and calculated as rental revenue divided by the average rented sqm.
3 NOI margin is calculated as income from property (NOI) divided by property operating revenue.
All store revenue grew by 13.0% in 2024 (vs. prior year), to €406.7 million, with growth in Q4 accelerating compared
with prior quarters. This was achieved through the robust performance of existing stores as well as 43 new stores
offering 16.9% additional rentable sqm versus 2023.
Same store revenue growth for Q4 2024 (+5.2%) was in line with the prior quarter and continued to show an
acceleration versus the first half year of 2024 (+4.5%). Same store revenue for the full year 2024 grew by 4.8%
compared with the prior year, fueled mainly by an average in-place rent increase of 5.2%.
• France saw higher revenue growth in Q4 2024 versus the same quarter last year (+4.2%), and compared
with the previous quarters of 2024. Full year same store revenue grew by 2.8% in 2024 compared with
2023, driven by a 3.0% rise in average in-place rent combined with an occupancy gain of 0.4pp (to 89.2%);
• The Netherlands continued to deliver strong same store revenue growth in Q4 2024, increasing by an
impressive +7.9%. The full year revenue growth of +7.3% was driven by increased in-place rent (+7.6%)
coupled with strong average occupancy (91.0%);
• The United Kingdom performance continued to be mainly driven by higher in-place rent (+6.2% versus
prior year) combined with nearly stable occupancy (-0.2pp). Average occupancy grew in the last quarter
of the year (+0.9pp), reflecting a positive evolution compared with the previous quarters. Higher in-place
rent was the key driver behind the solid +4.7% revenue growth for the year;
• In Q4 2024, Sweden’s revenue increased by 3.0%, confirming a recovery compared with the trend of prior
quarters and resulting in full year revenue growth of +0.5%. In the last quarter, occupancy delivered a
particularly strong performance, increasing +0.7pp versus the same period prior year (to 90.8%);
• Germany’s strong final quarter cemented an exceptional 2024 performance, with revenue growth of 8.6%
in Q4 contributing to a 9.3% rise in full year revenue. This was driven mainly by an 8.8% increase in in-
place rent in 2024 compared with the prior year. Occupancy in Germany ended at 88.5% in 2024, while
rented sqm increased 2.4% in that period;
• Belgium continues to perform well with revenue growth of 6.0% in Q4 contributing to full year 2024
revenue growth of 6.5% supported by a significant increase in rental rates (+8.7%) and strong occupancy
of 91.3%;
• In Denmark (Copenhagen), rental rates rose by 5.3% in 2024. This was partly offset by a 0.9pp occupancy
decline (although occupancy remained good at 90.8%) versus the prior year, resulting in revenue growth
of 5.4%.
SHURGARD ANNUAL REPORT 2024
38
GENERAL, ADMINISTRATIVE AND OTHER EXPENSES
(in € thousands, at CER) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Payroll expense 4,244 3,354 26.5% 14,018 12,252 14.4%
Share-based compensation expense 891 1,053 -15.4% 4,426 4,181 5.9%
Capitalization of internal time spent on
development
(1,160) (1,154) 0.5% (4,646) (4,264) 9.0%
Depreciation and amortization expense 1,111 894 24.3% 4,121 3,379 22.0%
Other general and administrative expenses
1
1,870 4,056 -53.9% 9,649 10,448 -7.6%
Total 6,956 8,203 -15.2% 27,568 25,995 6.1%
1 Other general and administrative expenses mainly include legal, consultancy, audit fees and non-deductible VAT.
On the back of a 13.0% increase in operating revenue, general, administrative and other expenses increased
moderately by 6.1%, from €26.0 million in 2023 to €27.6 million in 2024. Our payroll expenses went up by
€1.8 million versus the prior year, mainly as a result of the new hires made to support our development plans, while
the capitalization of internal time spent went up by €0.4 million, reflecting our increased development pipeline.
Depreciation and amortization ended up €0.7 million higher, following our continued investment in IT improvement
and digitalization projects. Other general and administrative expenses decreased by €0.8 million, reflecting lower
advisory and other consulting fees compared with the prior year.
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 2024, we incurred royalty fees of
€4.0 million.
OTHER EXPENSES
Other expenses for the year 2024 amount to a total of €6.9 million and consisted mainly of €3.7 million of costs
related to the integration of the Lok’nStore portfolio and a €3.2 million non-recurring cost for the
implementation
of
our new ERP system.
OPERATING PROFIT BEFORE PROPERTY RELATED ADJUSTMENTS
Operating profit before property related adjustments increased by 9.9%, from €207.0 million in 2023 to
€229.1 million in 2024, reflecting the operational strength of the core business (before non-cash adjustments and
exceptional items).
UNDERLYING EBITDA
(in € thousands) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Operating profit before property
related adjustments
63,956 54,134 18.1%
229,052 207,040 10.6%
Depreciation and amortization expense 1,111 893 24.4% 4,121 3,377 22.0%
Other
1
3,876 1,141 N/A 7,272 2,552 185.0%
Underlying EBITDA (AER) 68,943 56,168 22.7% 240,445 212,969 12.9%
Foreign exchange - 441 -100.0% - 1,297 -100.0%
Underlying EBITDA (CER) 68,943 56,609 21.8% 240,445 214,266 12.2%
1 “Other” includes in 2024 (i) Lok’nStore integration costs €3.7 million, (ii) ERP implementation fees €3.2 million. In 2023, the €2.6 million pertained to (i) dead
deals costs €1.6 million and (ii) ERP implementation fees and costs of capital raise €0.9 million.
SHURGARD ANNUAL REPORT 2024
39
At constant exchange rates, underlying EBITDA rose by 12.2% in 2024, from €214.3 million the previous year to
€240.4 million this year, mainly supported by an increase in property operating revenue of 13.0%.
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 €331.1 million for the year ended December 31, 2024, which
compares to a valuation gain of €294.4 million for the previous 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 5.22% in December 2023 to 5.11% in December 2024).
The valuation gain of €331.1 million, combined with the material acquisitions for the year (€788.5 million), capital
expenditure, and favorable exchange rate fluctuations, resulted in an increase in total investment property value of
€1,374.8 million to €6,410.5 million (increase of 27.3%), compared with December 31, 2023.
OPERATING PROFIT
Operating profit increased from €501.4 million in 2023 to €536.6 million in 2024, largely driven by a €48.6 million
increase in real estate operating revenue.
FINANCE COSTS, NET
(in € thousands) FY 2024 FY 2023 +/-
Finance costs 36,257 23,247 56.0%
Finance income (6,018) (3,120) 92.9%
Foreign exchange loss 4,390 143 N/A
Finance cost, net 34,629 20,270 70.8%
Net finance costs increased by 70.8% (or €14.4 million) to €34.6 million in 2024 from €20.3 million in 2023, reflecting
an increase in interest expenses due to higher leverage, in particular the issuance of our €500 million rated
Euro bond and €290 million draw down on the term loan facility. These were used to finance the acquisition of the
Lok’nStore entities and the properties we acquired in Germany. This was partly compensated for by higher interest
income on short-term deposits.
FOREIGN EXCHANGE LOSS ON DERIVATIVES
In connection with the acquisition of Lok’nStore, we entered into a €500 million bridge loan facility agreement. To
avoid foreign exchange rate risk, the Company entered into a Deal Contingent Forward (“DCF”) of a notional amount
of £430 million in exchange for an amount in euros that is equal to the notional amount. On the settlement date
of August 7, 2024, Shurgard recognized a foreign exchange loss of €4.2 million as finance cost. The foreign exchange
loss has been adjusted in the computation of adjusted EPRA earnings as a “one-off” item.
SHURGARD ANNUAL REPORT 2024
40
INCOME TAX EXPENSE
(in € thousands) FY 2024 FY 2023 +/-
Current tax expense 34,869 29,419 18.5%
Deferred tax expense (income) 86,949 (82,702) N/A
Income tax expense (income) 121,818 (53,283) N/A
Adjusted EPRA earnings effective tax rate
1
17.2% 15.7% 1.6pp
1 Adjusted EPRA earnings effective tax rate is current tax expenses divided by adjusted EPRA earnings before tax.
Current tax expense increased by €5.5 million from €29.4 million in 2023 to €34.9 million in 2024. The adjusted
EPRA earnings effective tax rate for 2024 ended at 17.2%, compared with 15.7% in 2023, reflecting a foreseen
increase in income tax compared with the prior year.
ATTRIBUTABLE PROFIT AND ATTRIBUTABLE PROFIT PER SHARE
For 2024, €402.9 million (2023: €533.3 million) profit was attributable to the shareholders of Shurgard
Self Storage Ltd, and €0.8 million (2023: €1.1 million) was attributable to non-controlling interests. Based on the
average number of shares (2024: 97.6 million), this translates to basic earnings of €4.13 per share.
EPRA KPIS
(in € thousands, except where indicated) FY 2024 FY 2023 +/-
EPRA Earnings 158,715 156,186 1.6%
Adjusted EPRA Earnings 167,386 158,401 5.7%
Capital Expenditure 976,129 181,154 N/A
EPRA Vacancy Rate 14.8% 13.2% 1.6pp
EPRA LFL Rental Growth 5.7% 6.4% -0.7pp
EPRA Cost ratio (including direct vacancy costs) 46.2% 46.7% -0.5pp
EPRA Cost ratio (excluding direct vacancy costs) 46.2% 46.7% -0.5pp
EPRA Net Initial Yield (NIY) 4.8% 5.4% -0.6pp
EPRA Net Initial Yield 'topped-up' NIY 4.8% 5.4% -0.6pp
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 September 2024. 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
(Alternative Performance Measures).
SHURGARD ANNUAL REPORT 2024
41
EPRA EARNINGS
(in € thousands, except for EPRA EPS) FY 2024 FY 2023 +/-
Profit attributable to ordinary equity holders of the parent 402,851 533,313 -24.5%
Adjustments:
Gain on revaluation of investment properties
1
(331,073) (294,350) 12.5%
Current and deferred tax in respect of EPRA adjustments 86,511 (83,489) N/A
Non-controlling interests in respect of the above 426 712 -40.1%
EPRA earnings 158,715 156,186 1.6%
EPRA earnings per share (basic - in €) 1.63 1.73 -6.1%
EPRA earnings per share (diluted - in €) 1.62 1.73 -6.1%
1 Including investment property under construction and right-of-use investment property assets.
EPRA earnings exclude acquisition costs and the gains or losses on the revaluation of investment property.
ADJUSTED EPRA EARNINGS
(in € thousands, except for Adjusted EPRA EPS) FY 2024 FY 2023 +/-
EPRA earnings 158,715 156,186 1.6%
Company specific adjustments:
Non-recurring expenses
1
11,201 1,062 N/A
Tax adjustments
2
(2,530) 1,153 N/A
Adjusted EPRA earnings 167,386 158,401 5.7%
Adjusted EPRA earnings per share (basic - in €) 1.71 1.76 -2.4%
Adjusted EPRA earnings per share (diluted - in €) 1.71 1.75 -2.3%
1 Non-recurring expenses consist mainly of (i) Lok’nStore integration costs €3.7 million, (ii) ERP implementation fees €3.2 million and (iii) exchange loss in
connection with a deal contingent forward €4.3 million.
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 2024, adjusted EPRA earnings were €167.4 million, 5.7% higher than the €158.4 million in 2023.
SHURGARD ANNUAL REPORT 2024
42
RECONCILIATION OF UNDERLYING EBITDA TO ADJUSTED EPRA EARNINGS
(in € thousands, at AER) FY 2024 FY 2023 +/-
Underlying EBITDA 240,445 212,969 12.9%
Net attributable profit adjustments:
Abandoned project costs and other (339) (3,434) -90.1%
Other expenses (6,932) 882 N/A
Depreciation and amortization expense (4,121) (3,377) 22.0%
Finance costs (40,647) (23,390) 73.8%
Finance income 6,018 3,120 92.9%
Current tax expense (34,869) (29,419) 18.5%
Non-controlling interests, net of EPRA adjustments (840) (1,165) -27.8%
Company specific EPRA adjustments:
Non-recurring expenses
1
11,201 1,062 N/A
Tax adjustments
2
(2,530) 1,153 N/A
Adjusted EPRA earnings 167,386 158,401 5.7%
1 Non-recurring expenses consist mainly of (i) Lok’nStore integration costs €3.7 million, (ii) ERP implementation fees €3.2 million and (iii) foreign exchange rate losses
related to the bridge loan €4.3 million.
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 5.7% mainly due to a 12.9% increase in underlying EBITDA, partly offset by
higher net finance costs (€14.2 million) and higher current tax expense (€5.4 million).
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 2024 FY 2023 +/-
Net Asset Value (NAV) 4,011,115 3,614,217 11.0%
EPRA Net Restatement Value (NRV) 5,372,358 4,708,381 14.1%
EPRA Net Tangible Assets (NTA) 4,781,617 4,307,807 11.0%
EPRA Net Disposal Value (NDV) 4,035,142 3,667,931 10.0%
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.
SHURGARD ANNUAL REPORT 2024
43
Our loan-to-value ratio on December 31, 2024, was 23.3% (13.0% as of December 31, 2023). The increase was due
to the rise in our net debt that proportionally increased more than our 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 of the countries in
which 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 2024 FY 2023 +/-
Cash flows from operating activities 208,595 187,361 11.3%
Cash flows from investing activities (903,221) (180,371) N/A
Cash flows from financing activities 568,250 162,377 N/A
Net increase (decrease) in cash and cash equivalents (126,376) 169,367 -174.6%
Effect of exchange rate fluctuation 10,833 1,406 N/A
Cash and cash equivalents as of January 1 258,118 87,345 195.5%
Cash and cash equivalents as of December 31 142,575 258,118 -44.8%
CASH FLOWS FROM OPERATING ACTIVITIES
Operating cash inflow increased by 11.3% from €187.4 million in 2023 to €208.6 million in 2024. This was mainly
due to €22.5 million increased cash flows from operations and €0.3 million decreased income tax payments, partially
offset by €1.6 million of unfavorable movements in working capital.
(in € thousands) FY 2024 FY 2023 +/-
Cash flows from operating activities 208,595 187,361 11.3%
Cash flows from investing activities (903,221) (180,371) N/A
Cash flows from financing activities 568,250 162,377 N/A
Net increase (decrease) in cash and cash equivalents (126,376) 169,367 -174.6%
Effect of exchange rate fluctuation 10,833 1,406 N/A
The movement in working capital consists of €16.1 million of decreased movements in accrued expenses, VAT
payable and accounts payable, €14.5 million increased movement in trade and other receivables and €0.3 million
increased movement in deferred revenue.
Our cash outflow from investing activities increased by €722.9 million, from €180.4 million in 2023, to €903.2 million
in 2024. This was primarily due to €698.6 million increased investment in acquisitions, €35.4 million increased
capital expenditure for our investment property and investment property under construction, €0.8 million increased
investments in intangible assets and €0.6 million increased spending on property, plant and equipment, partially
offset by €9.6 million proceeds from the sale of investment property and €2.9 million increased income from our
cash deposits.
Cash outflows in relation to capital expenditure on investment property under construction and completed
investment property increased from €111.9 million in 2023 to €147.2 million in 2024.
These cash flows fluctuate over years, as construction expenditures depend on the stage of the various development
projects at that time. In 2024, we opened four new properties, and we acquired 42 new properties. In 2023, we
opened two properties, and we acquired five new properties. We refer to the section Portfolio Expansion.
SHURGARD ANNUAL REPORT 2024
44
CASH FLOWS FROM FINANCING ACTIVITIES
The increase in net cash inflow was mainly the result of our €690.0 million net debt issuance and €33.8 million
decrease in dividends distributed. These positive fluctuations were partially offset by €299.0 million decreased
proceeds from equity issuance, €7.8 million increased interest payments, €6.4 million increased equity issuance and
financing related costs, €4.3 million foreign exchange rate loss, driven by the settlement of a Deal Contingent
Forward (“DCF”) settled in the framework of the Lok’nStore acquisition.
EFFECT FROM EXCHANGE RATE FLUCTUATIONS
During 2024 and 2023 respectively, we had a €10.8 million and a €1.4 million positive effect of exchange rate
fluctuations on our cash flow movements.
FINANCIAL POSITION
TOTAL ASSETS
During 2024, the Company’s total assets increased by 23.7% from €5,353.9 million on December 31, 2023, to
€6,623.2 million on December 31, 2024, mainly due to the €1,374.8 million increase in investment property and
investment property under construction (''IPUC''), partially offset by a decrease in cash of €115.5 million.
As of December 31, 2024, approximately 97.2% of the Company’s total assets consisted of non-current assets.
Investment property (including right-of-use investment property) and IPUC represent 96.8% of total assets.
Investment property
Investment property (including IPUC but excluding IP ROU assets recognized under IFRS 16) increased by 27.2%
(or €1,340.1 million) in the year ended December 31, 2024 to €6,269.5 million. The main reasons for this increase
are incremental expenditure of €187.6 million, predominantly for developments and redevelopments, acquisitions
of €738.4 million, and €45.5 million favourable exchange rate fluctuations. In addition, the Company recognized
€335.1 million of favourable fair value revaluation gain on its investment property and investment property under
construction.
Cash and cash equivalents
The Company had cash and cash equivalents of €142.6 million as of December 31, 2024, compared with
€258.1 million cash and cash equivalents as of December 31, 2023, a decrease of €115.5 million.
CAPITAL RESOURCES AND FINANCING STRUCTURE
Shurgard’ s financial resources comprise the Company’s total equity as well as certain debt financing instruments.
The Company’s total equity increased by €397.7 million from €3,622.1 million on December 31, 2023, to
€4,019.8 million on December 31, 2024, mainly due to €403.7 million of net profit realized during the period, a €59.2
million revaluation gain on consolidation of our Swedish, Danish and British operations because of favorable
currency movements, a €4.1 million increase in share-based compensation reserves and €44.7 million of net
proceeds from the issuance of equity. These increases were partially offset by a €113.9 million dividend distribution
in 2024.
As of December 31, 2024, the equity ratio was 60.7% (December 31, 2023: 67.7%).
SHURGARD ANNUAL REPORT 2024
45
(in € thousands) FY 2024 FY 2023
Total equity 4,019,847 3,622,122
Total equity and liabilities 6,623,155 5,353,877
Equity ratio 60.7% 67.7%
Shurgard has outstanding senior guaranteed notes, issued in the years 2014, 2015 and 2021, for a total nominal
amount of €700 million and maturities varying between 2025 and 2031. Effective interest rates vary from 1.28% to
3.38%.
On April 10, 2024, the Group increased total commitments of its committed term loan facility, maturing in April 2026
with an optional one-year extension by €160 million to €450 million, and extended the availability period to April
28, 2025. During 2024, the Group drew €290 million on the facility.
The facility bears interest at Euribor plus a margin of 100bps and the commitment fee on the undrawn amount of
€160 million is 0.35%.
In October 2024, the Company issued a corporate bond with a nominal value of €500 million, with an effective
interest rate of 3.83% and 10-years maturity.
In November 2024, Shurgard replaced its €250 million revolving credit facility with a new facility of €500 million,
maturing in November 2029. As of December 31, 2024, the commitment fee on the undrawn amounts was equal to
35% of the applicable margins, or 0.16% per annum.
DIVIDEND
It is the Company’s objective to pay dividends twice a year in May/June and September/October. The amount of
any half year 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.
Shurgard intends to declare a dividend of €1.17 per share for the full fiscal year. For the first half of 2024, our Board
of Directors approved a half-year dividend of €0.58 per share or €56.5 million paid September 16, 2024.
At this time, the Board also decided to offer shareholders, by way of an optional scrip dividend, the possibility of
contributing their claim arising from the distribution of profits, into the capital of the Company against the issue of
new shares, in addition to the option of receiving the dividend in cash, and the option of opting for a combination
of the two preceding options. More than 80% of our shareholders opted for a scrip dividend for the half-year
dividend.
The Board of Directors recommended, subject to shareholders’ approval, a final dividend for the year 2024 of €0.59
per share or €58.1 million, based on the number of shares outstanding as of December 31, 2024. The Board further
decided to continue offering shareholders the possibility of an optional scrip dividend. A press release detailing the
optional scrip dividend modalities for this second and final dividend will be issued in May 2025, after the
Shareholder’s meeting, for a dividend payment in June 2025.
As in the past, Shurgard will continue to review its dividend policy to ensure it remains competitive.
SHURGARD ANNUAL REPORT 2024
46
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.
Our workforce increased in 2024 compared with the prior year mainly due to Lok’nStore and other acquisitions plus
reinforcement of our support centers, mitigated by our store cluster management rolled out across our markets.
The cluster rollout has helped to mitigate same store labor cost increases which have shrunk from 10.3% of our
revenues in 2021 to 7.5% in 2024 (or -27%). The following table shows the number of full-time equivalent
employees by category of activity as of December 31, 2024 and 2023, respectively:
FY 2024
FY 2023
+/-
Store personnel 640 538 102
Operational management 51 50 1
Support functions 145 121 24
Total 836 709 127
RISKS
Shurgard is exposed to several risks that are described in detail in the "Principal Risks and Uncertainties” section
of the 2024 Annual Report.
EVENTS AFTER THE REPORTING PERIOD
Please refer to Note 38 in the Notes to the consolidated financial statements of this report.
SHURGARD ANNUAL REPORT 2024
47
SUSTAINABILITY REPORT
2024
SHURGARD ANNUAL REPORT 2024
48
1. SHURGARD’S ESG HIGHLIGHTS
1.1 ENVIRONMENTAL HIGHLIGHTS
1.2 SOCIAL HIGHLIGHTS
1.3 GOVERNANCE HIGHLIGHTS
SHURGARD ANNUAL REPORT 2024
49
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
1 Learn more about MSCI ESG ratings here.
2 Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com ). Such
information 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 2024
50
1.5 MESSAGE FROM OUR CEO
GRI 2-14 / 2-22
Message from Marc Oursin
Chief Executive Officer
Welcome to our annual sustainability report 202
4.
This report provides an in
-depth review of Shurgard’s sustainability initiatives, social impact efforts, and governance
practices. It reflects the company’s dedication to ethical business operations and long
-term value creation for stakeholders
and the bro
ader community.
Environmental
stewardship – the road to Net-Zero Carbon
With the L
ok’nStore acquisition, we added a portfolio that came with a robust ESG framework, including solar energy
initiatives and
strong energy performance certificates, while strengthening our position as a leader in sustainable
self
storage.
Our program to reduce energy consumption and carbon emissions continues apace, with four key actions
– LED lighting,
heat pumps, solar panels and a building management system
– all contributing to the 60% like-for-like reduction in
emissions in 2024.
Our solar strategy has been in the spotlight this year. We completed a full inventory of solar installations in UK, which at
the
end of 2024 stood at 39 properties including the Lok’nStore acquisition. We have also completed a survey of our portfolio in
th
e United Kingdom and the Netherlands, including roof bearing capacity, electricity generation, consumption and storage,
to determine the business case and feasibility of solar installation at each property. We are determined to lower our emissio
ns
while ensuring the comme
rcial feasibility of the strategy. As part of this program, we are excited to highlight the successful
installation of EV chargers and solar panels at our
European Support Center (ESC) in Belgium, enhancing the sustainability
of our operations and providin
g energy-efficient solutions for our employees.
All these emission
-reducing projects are part of Shurgard’s commitment to achieving operational Net-Zero Carbon by 2030
and material
Net-Zero Carbon by 2040. We will continue to implement the strategic initiatives required to remain on track
to achieve these ambitious targets.
Award
recognition
Our initiatives were once again
recognized by a range of awards and ratings which lends credence to our ESG strategy. For
the fourth year in a row, we were awarded an outstanding 5
-star rating (the top banding) by GRESB, again achieving 91 out
of 100 and being recognized as a leader in our sector.
In addition, we achieved an AA rating on the MSCI ESG rating scale
and continue to strive to improve on this already impressive score. The recognition from external ESG rating
organizations is
a point of pride for
all of Shurgard’s stakeholders. It is a visible reminder to staff, customers and shareholders that we are
making a difference.
Social impact
Our employees continue to play a crucial role in driving Shurgard’s sustainability initiatives.
Shurgard’s new store cluster
model is providing new opportunities for ambitious store managers to take on more responsibility and enhance their personal
development in new ways.
Our strong rating of 4.7 on Glassdoor serves as a testament to the positive experience of our
employees.
Governance and reporting
As part of our ongoing commitment to responsible corporate governance and sustainability, we have successfully
implemented the requirements of the Corporate Sustainability Reporting Directive (CSRD). By engaging with key stakeholders
and developing our dou
ble materiality matrix, we have expanded our disclosures, particularly around Scope 3 emissions. This
effort has strengthened our ESG reporting framework, ensuring we meet evolving regulatory standards while maintaining
the highest levels of accountability
.
The full range of initiatives and achievements can be found in the following pages
, and I encourage you to read more about
how Shurgard is making a positive impact on the people and environment around us.
Marc Oursin
CEO
SHURGARD ANNUAL REPORT 2024
51
2. SHURGARD SELF STORAGE
Shurgard is the largest owner and operator of self-storage properties (“stores”) in Europe.
Our owned portfolio of 318 stores comprises approximately 1.6 million rentable square meters and serves
c. 220,000 customers in France, the Netherlands, the United Kingdom (UK), Sweden, Germany, Belgium, and
Denmark.
At the date of report compilation, we employ 883 personnel (55.7% men, 44.3% women), with a range of about
45 nationalities (top three: 32.3% British, 19.1% French and 14.6% Dutch).
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. We
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 94% 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, 2024, we developed 36 new stores, completed redevelopment
projects at 38 stores, and acquired 106 stores from competitors, a total of 180 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 2024
52
3. SUSTAINABILITY REPORT GENERAL INFORMATION
3.1 BASIS OF PREPARATION OF THE SUSTAINABILITY STATEMENT
Shurgard prepares its Sustainability Report following international regulations, guidelines and references.
Amongst others, specific reporting is prepared according to:
• the European Sustainability Reporting Standards (ESRS).
Additional frameworks:
• the Global Reporting Initiative (GRI); and
• the European Public Real Estate Best Practice Recommendations on Sustainability Reporting (EPRA
SBPR).
EUROPEAN SUSTAINABILITY REPORTING STANDARDS (ESRS)
For the reporting year ended December 31, 2024, the company reports its sustainability information for the first
time in accordance with article 3:32/2 of the Companies’ and Associations’ Code, including compliance with the
applicable European Sustainability Reporting Standards (“ESRS”). This includes: compliance of the process carried
out by the Company to identify the information reported in the sustainability statement (the “Process”) is in
accordance with the description set out in note ESRS 2 IRO-1; and compliance of the disclosures in subsection
4.7 within the directors’ report relating to environmental matters of the sustainability statement with Article 8
of EU Regulation 2020/852 (the “Taxonomy Regulation”).
The contents of the sustainability statement are subject to a limited assurance report in accordance with ISAE
3000 (Revised). The Independent Auditor’s Report on a Limited Assurance Engagement can be found on section
“7. Assurance”.
The consolidated sustainability statements are part of the Company's consolidated directors report, which was
authorized for issue by the Board of Directors on February 27, 2025.
Some sections of this ESRS report are not required and are presented voluntarily. When this is the case, the
following clarification has been added to the relevant sections or tables, respectively: “This section is a voluntary
disclosure, which is not required by ESRS considering the outcome of our materiality assessment.” and “ESRS
non-material voluntary disclosure”.
CONSOLIDATED BASIS AND SCOPE
The sustainability statement was prepared on a consolidated basis and covers the same reporting scope as the
financial statements. All statements on strategies, policies, actions, metrics and targets refer to the consolidated
group. The report covers the consolidated group ’s entire value chain and, where material, provides information
on upstream and downstream activities in accordance with ESRS 1.
Consolidation of all quantitative ESG data follows the principles above, unless otherwise specified in the
accounting policy placed next to each reported data point in the tables in the following sections of this report:
“4. Environmental information”, “5. Social information” and “6. Governance information”.
GRI 2-1 / GRI 2-3
CHANGES IN PREPARATION AND PRESENTATION OF SUSTAINABILITY INFORMATION COMPARED TO
PREVIOUS REPORTING PERIOD
As it is the first year of reporting based on ESRS, the Company does not report any changes in preparation or
presentation of the sustainability statement, and no errors in prior periods.
PRESENTING COMPARATIVE INFORMATION
Where metrics have been reported previously, comparative information is presented. The comparative
information in the sustainability statement and thereto related disclosures are presented on a voluntary basis
and have not been subject to reasonable or limited assurance procedures, unless stated otherwise in the relevant
SHURGARD ANNUAL REPORT 2024
53
sections of the sustainability statement. For newly introduced metrics, the company makes use of the transitional
provisions for the first year in accordance with ESRS 1.
USE OF PHASE-IN PROVISIONS
In this sustainability statement, the Company used the option to omit information required by ESRS E1-9, E5-6,
S1-7, S1-11, S1-12, S1-14 DR 88 (d), (e) and DR 89, as well as S1-15, in accordance with Appendix C of ESRS 1.
MATERIAL ERRORS IN PRIOR PERIOD
The Company identified no material errors in the sustainability information reported in the annual report for the
year ended December 31, 2023.
REFERENCES TO OTHER PARTS OF THE ANNUAL REPORT
Where information has been published in other parts of the annual report, the company has made use of the
incorporation by reference concept. Cross references have been inserted where relevant.
ESTIMATIONS AND UNCERTAINTIES
The use of reasonable assumptions and estimates, including scenario or sensitivity analysis, is an essential part
of preparing sustainability-related information. It does not undermine the usefulness of that information,
provided that the assumptions and estimates are accurately described and explained.
In case estimations have been used or in case there are outcome uncertainties related to the metrics disclosed
in the statement, this is disclosed along with the respective metrics within each topical chapter.
Data and assumptions used in preparing the sustainability statement are consistent, to the extent possible, with
the corresponding financial data and assumptions used in the undertaking’s financial statements. For example,
calculations to determine Scope 3 GHG emissions (see “4.1 Transition to low-carbon economy”) as included in
the sustainability statement are mostly based on assumptions and sources from third parties which includes
information about value chain and information collected from actors in the value chain, when appropriate. The
assumptions and sources used, are explained in each topical section of the sustainability statement.
Significant proportion of environmental data under measured indicators has been estimated for the last month
of 2024, i.e., December 1, 2024 to December 31, 2024.
FORWARD-LOOKING INFORMATION
In reporting forward-looking information in accordance with the ESRS, the management of the Company is
required to prepare the forward-looking information based on disclosed assumptions about events that may
occur in the future and possible future actions by the company. The actual outcome is likely to be different since
anticipated events frequently do not occur as expected. Forward-looking information relates to events and
actions that have not yet occurred and may never occur.
OTHER GENERALLY ACCEPTED SUSTAINABILITY REPORTING STANDARDS OR FRAMEWORKS INCLUDED IN
THIS SUTAINABILITY REPORT
We use other generally accepted sustainability reporting standards and frameworks in this sustainability report
as listed below.
Global Reporting Initiative (“GRI”)
Our sustainability reporting has been prepared with reference to the guidelines developed by the 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 double materiality review in 2024.
Shurgard Self Storage Ltd has reported the information cited in this GRI content index for the period
January 1, 2024 to December 31, 2024 with reference to the GRI Standards.
The index is attached as an appendix, and is available on our investor relations website or upon request.
GRI 1-7
SHURGARD ANNUAL REPORT 2024
54
European Real estate Association Sustainability Best Practices Recommendations (“EPRA sBPR”)
Shurgard reports the Company’s sustainability indicators based on EPRA’s (European Public Real Estate
Association) latest recommendations: Best Practice Recommendations on Sustainability Reporting, fourth
edition, released in April 2024.
Shurgard aligns its report to the following overarching recommendations from EPRA:
• 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
by Shurgard. Data is reported for our storage center portfolio and separately for our own occupied office(s).
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 month of 2024, i.e., December 1, 2024 to
December 31, 2024. There are also a number of data gaps outside this period in 2023 and 2024 which
needed to be estimated. To fill these data gaps, we have used the following estimation methodology:
(i) 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; (ii)
trend adjusted consumption: in instances where complete data was available for the previous year (2023),
we calculated the year-on-year percentage change between periods of known data in both 2024 and 2023.
This percentage change was then applied to the data we needed to estimate in 2024, utilizing the
corresponding period of data in 2023; (iii) Industry benchmarks averages where both 2024 and 2023 have
major gaps. 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. The assurance statements
can be found at the end of this report.
• Changes since last year's report: data has been disaggregated according to the latest guidance from EPRA
and GRI.
• 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 two building types – self-storage properties and own office(s). Shurgard
has a European Support Center office where it is the landlord, located in Brussels, next to our Groot-
Bijgaarden store. The performance metrics are allocated based on the floor area of the store compared to
the European Support Center office. We operate in seven different countries – all located in the European
Union and UK. We have all performance metrics segmented by geography. Considering the number of
countries, and the quantity of information, these were not disclosed in this report but are available upon
demand. We do report on the split of our energy labels (EPCs) and green building certifications (BREEAM)
by rating.
• Location of EPRA Sustainability Performance in companies’ reports: this document is a supplement within
the Annual Report and Sustainability Report, available on Shurgard’s official website.
SHURGARD ANNUAL REPORT 2024
55
• 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, 2024 to December 31, 2024.
GRI 2-3
CONTACT
For any question or comment on the published content of this report, please contact:
investor.relations@shurgard.co.uk
GRI 2-1
3.2 GOVERNANCE
BOARD OF DIRECTORS AND COMMITTEES
Shurgard's governance framework is structured to ensure effective management and oversight of the company’s
operations. The Board of Directors is responsible for setting strategic direction, supervising senior management,
and overseeing business activities. To support the Board, three committees have been established: the Audit
Committee, the ESG Committee, and the Real Estate Investment Committee. These committees play a key role in
ensuring robust governance, risk management, and strategic decision-making across the company.
The Board of Directors maintains the authority to amend or revoke the powers delegated to these committees
and adjust internal regulations as necessary. A diverse composition of the Board ensures a broad range of
expertise that contributes to the effective supervision and implementation of company strategies and policies.
BOARD OF DIRECTORS
The General Shareholders’ Meeting appoints Directors for a one-year term and determines their remuneration.
Directors may be reelected and can be removed at any time by the General Shareholders’ Meeting. In case of a
vacancy, the Board has the authority to appoint a replacement until the next General Shareholders’ Meeting.
As of December 31, 2024, the Board of Directors comprises ten members: one Executive Director and nine Non-
Executive Directors, with seven members considered independent. During the Annual General Shareholders’
Meeting on May 22, 2024, eight members were reappointed, and Paula Hay-Plumb joined the Board, replacing
Olivier Faujour. Additionally, Candace Krol was appointed to replace Frank Fiskers, who will step down at the next
Annual General Shareholders’ Meeting on May 14, 2025. There are no employee representatives present on the
Board of Directors.
Shurgard’s Board holds high standards of corporate governance, financial transparency, and compliance. Board
members contribute expertise across governance, risk management, sustainability, and industry-specific
knowledge to support business objectives effectively. This ensures we are able to address all impacts, risks and
opportunities identified. For more information on the Board of Directors, please refer to the chapter 6.1 High
governance standards.
BOARD RESPONSIBILITIES
The Board of Directors retains responsibility for:
• Corporate Governance: convening general shareholder meetings, defining governance policies, and
appointing key management and committee members.
• Strategy and Policies: approving corporate and sustainability strategies, as well as diversity, equity,
and inclusion policies.
SHURGARD ANNUAL REPORT 2024
56
• Financial Oversight: approving annual budgets, financial statements, and strategic investments
exceeding €50 million.
• Governance Framework: overseeing risk management, compliance, and corporate ethics.
The Board meets at least four times annually, with additional meetings convened as required. Meetings are led
by the Chairperson, and decisions are made by a majority vote with at least half the members present.
COMMITTEES OF THE BOARD
Audit Committee. The Audit Committee ensures financial integrity, risk management, and compliance with legal
requirements. It oversees financial and sustainability reporting, internal controls, and external audits. As of
December 31, 2024, the committee comprises four members, with three considered independent. Meetings are
held quarterly, with all members in attendance.
ESG Committee. The ESG Committee oversees sustainability initiatives, executive compensation, and governance
policies. It ensures alignment with ESG objectives and monitors related risks. As of December 31, 2024, the
committee consists of five members, with four considered independent. It met four times in 2024.
Real Estate Investment Committee. This committee evaluates real estate acquisitions, disposals, and
investments up to €50 million. As of December 31, 2024, it comprises four members, with two classified as
independent. It met six times in 2024.
SENIOR MANAGEMENT
Shurgard’s Senior Management team consists of five members: four men (80%) and one woman (20%). The
Chief Executive Officer (CEO) is responsible for daily management, supported by the Chief Financial Officer (CFO),
Chief Operating Officer (COO), Chief Investment Officer (CIO), and Director of HR/Legal. The CEO holds the
authority to approve real estate developments and all operational decisions.
BOARD AND MANAGEMENT SHARE OWNERSHIP
As of December 31, 2024, Board members collectively held 187,276 shares (0.19% of total share capital), while
Senior Management owned 325,455 shares (0.33% of total share capital). Shareholding requirements mandate
that the CEO holds shares equivalent to 3.0x his fixed compensation, while other executives must hold 2.0x their
compensation within five years from the initial appointment.
EXECUTIVE COMPENSATION AND INCENTIVES
Shurgard integrates sustainability performance metrics into executive remuneration. The ESG Committee sets
incentive targets based on financial and sustainability-related goals. The Remuneration Report provides details
on compensation structures and performance-based incentives.
RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING
Shurgard has established a risk management and internal control system to ensure the accuracy and reliability
of sustainability reporting. Key features of this system include:
• Scope and Components: Shurgard's risk management and internal control processes include data
collection, validation, and reporting mechanisms aligned with sustainability disclosure requirements.
These processes integrate into the company’s overall governance framework.
• Risk Assessment Approach: The company follows a structured risk assessment methodology, prioritizing
risks based on materiality, likelihood, and potential impact. This approach ensures that sustainability-
related risks are effectively identified and managed.
• Main Risks and Mitigation Strategies: Key risks in sustainability reporting include data accuracy,
regulatory compliance, and operational integration. Mitigation measures include internal audits and
internal reviews.
SHURGARD ANNUAL REPORT 2024
57
• Integration into Internal Processes: Findings from risk assessments and internal control evaluations are
incorporated into strategic decision-making and operational functions. Shurgard ensures continuous
improvement in sustainability reporting through cross-departmental collaboration.
• Periodic Reporting to Governance Bodies: The Audit Committee and ESG Committee receive regular
updates on risk management efforts related to sustainability reporting. These findings are reviewed,
and necessary corrective actions are taken to enhance transparency and compliance.
For more details on our Risk Management System, please refer to Remuneration Report, Risk Management
System.
3.3 DOUBLE MATERIALITY ASSESSMENT
CONTEXT, SCOPE & OBJECTIVES
The purpose of our double materiality assessment is to define and prioritize the sustainability topics that have
an impact on the Company and the topics through which the Company has an impact on society and/or the
environment. Our assessment has been prepared in accordance with the CSRD requirements, specifically ESRS 1.
This approach considers both Shurgard’s impact on the external world and external factors that affect the
company. The scope of Shurgard’s double materiality assessment includes external and internal materiality for
the Company's entire value chain and scope of activities, whether direct or indirect.
It covers all countries we operate in (France, the Netherlands, UK, Sweden, Germany, Belgium, Denmark,
Guernsey, Luxembourg), all our stores, legal entities and workforce.
In our assessment, we already considered the impact of recent acquisitions, which have introduced a significant
number of assets to our operations in 2024, specifically the acquisition of the former Lok'nStore portfolio in UK.
These acquisitions align closely with our existing business in terms of operations and content, meaning the ESG
impacts, risks and opportunities we encounter are and remain consistent across our portfolio. We will continue
to ensure that our materiality assessment reflects the expanded footprint and specificities of these newly
acquired assets.
Within the external materiality assessment, we have:
• Evaluated the organization's impact on the external environment, including social, environmental, and
economic aspects.
• Assessed the external risks and opportunities that may affect the organization's ability to create value
over the long term.
Within the internal materiality assessment, we have:
• Examined the organization's financial performance, operational efficiency, and internal processes.
• Identified the internal risks and opportunities that may impact the organization's ability to meet its
strategic objectives
SHURGARD ANNUAL REPORT 2024
58
GOVERNANCE AND RESPONSIBILITIES
The identification of our material topics and impacts is part of our day-to-day activities and is integrated in our
governance framework and Environmental Management System (EMS). The EMS is overseen by a formal cross-
departmental and multidisciplinary ESG Management Group (chaired by our Chief Executive Officer). The ESG
Management Group is striving to continuously develop the EMS, report on the progress of our ESG objectives,
and maintain transparent ESG reporting. Our EMS evolves over time to deliver continual improvement.
On a monthly basis, the ESG Management Group reports to members of Senior Management at Executive
Committee meetings. Ultimately, the oversight of ESG matters, including double materiality assessment, is
entrusted to the ESG Committee of the Board of Directors, ensuring that material topics and impacts are
supervised, reviewed and approved at the highest level of the Company.
Our CEO holds the most senior role within our company and has operational responsibility for ensuring that
stakeholder engagement occurs effectively within our workforce, value chain workers, as well as our clients and
local communities at least annually. The CEO oversees the implementation of engagement activities and ensures
that the results directly inform the company’s strategic decisions and operational approaches.
This responsibility includes guiding the identification of key stakeholders, setting priorities for engagement
processes, and integrating stakeholder feedback into the company’s policies and practices. By maintaining direct
oversight, the CEO ensures that stakeholder engagement aligns with our company’s goals and values.
In addition, the CEO is the most senior individual accountable for the implementation of the policy within
Shurgard. The CEO oversees its execution, ensures alignment with the company's strategic objectives, and is
responsible for integrating the policy into Shurgard’s operational and governance framework.
GRI 3-1 / 3-2 / 3-3
OUR VALUE CHAIN
Our value chain is made up of activities for our own operations, as well as upstream and downstream activities.
Upstream activities
Our upstream activities involve the acquisition of land or existing buildings that meet strategic needs for
development or conversion. This stage includes the search, planning, design, and construction of new properties,
or the conversion and renovation of existing buildings for self-storage use. Our upstream activities also entail
selecting building and construction materials, as well as materials for the merchandise we sell in our stores
(boxes, locks, etc.) with an emphasis on sustainability, durability, and regulatory compliance.
Own activities
Our own activities relate to the ongoing operation of our self-storage properties. This involves day-to-day
operations such as properties staffing, customer service, inventory management, administration, central office
support, operational standards, or service quality to enhance client satisfaction and retention. Our own activities
also cover the maintenance and repair of our assets and properties, ensuring they remain in good shape and
compliant with safety standards.
The direct environmental consumption of properties owned by a third party that Shurgard operates is excluded
from our Scope 1 and Scope 2 emissions reporting. The environmental data for these stores, including energy
usage and emissions, is considered the responsibility of the actual property owners. As tenants, our role is limited
to operational management, and therefore, the environmental impact associated with these stores should be
reported by the asset owners in alignment with their own sustainability frameworks.
SHURGARD ANNUAL REPORT 2024
59
Nevertheless, we recognize our operational role and, therefore, we include emissions related to employees at
third-party managed stores within our Scope 3 reporting:
• Scope 3, Category 6 (Business Travel): emissions from business travel undertaken by these employees
are included.
• Scope 3, Category 7 (Employee Commuting): emissions related to the commuting of these employees
are included.
Downstream activities
Finally, our downstream activities refer to our customer engagement, through the renting of self-storage units,
sale of merchandise and insurance, and provision of value-added services that enhance the customer experience
and meet their storage and moving requirements.
Overall, 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 positive and transformational change.
DOUBLE MATERIALITY ASSESSMENT PROCESS
We conducted our first double materiality assessment in 2023. In 2024, we updated this assessment, following
the requirements of the European Sustainability Reporting Standards (ESRS 1 & 2), through a 6-step process.
Identify & engage with stakeholders
We define stakeholders as individuals, groups or organizations that may benefit or be affected, directly or
indirectly, by our business activities, or may be interested or have an impact on our strategy and achievement of
goals. 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 used its value chain mapping to assess the impact of its activities and operations on society and / or
the environment, focusing on direct and indirect Impacts, Risks and Opportunities (IRO's).
Our stakeholders can be divided into two groups:
• the affected stakeholders (“AS”), namely individuals or groups whose interests are (or could be)
affected by us, whether positively or negatively. These impacts can be caused directly by our own
operations, or indirectly, through our value chain, including through business relationships or through
our products and services
• the users of our sustainability reporting (“USR”) that could use the reported information to make
informed decisions.
1
Identify and
engage with
stakeholders
2
List relevant
sustainability
matters
3
Define impacts
,
risks and
opportunities
4
Assess impact
and financial
materiality
5
Prepare the
double
materiality matrix
6
Evaluate
strategic
implications
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We engaged with our stakeholders using a combination of direct and indirect methods. Typically:
• Direct: surveys, interviews, workshops, meetings, etc. For instance, we reviewed
feedback from our
employees and customers and launched targeted surveys; we questioned our critical suppliers on their
ESG practices; we met and discussed with our existing or potential investors (both debt and equity) at
several roadshows and conferences; we participated in several third-party benchmarks, etc.
• Indirect: media reports, peers’ analysis, sector-specific benchmarks and publications, regulatory
environment, etc.
By engaging with our stakeholders, we strive for completeness of topics considered in the framework of our
double materiality matrix.
List relevant sustainability matters
To identify the relevant topics to be considered for our double materiality matrix, we started from a
comprehensive list, using ESRS guidance, specifically applicable benchmarks for the real estate sector (e.g.,
GRESB, GRI), peers, topics identified during previous double materiality assessments and topics that arose from
our stakeholder engagement process.
Considering Shurgard's activities, value chain, sector and geographies, as well as the outcome of our stakeholder
engagement, we retained a short list of 20 topics for further assessment.
Topic Sub-topic Shurgard topic reference Sub-sub-topic included
Environment
Climate
change
Climate change adaptation &
resilience
Climate change adaptation
Environment
Climate
change
GHG emissions
Climate change mitigation (GHG emissions, embodied
carbon, etc.); Energy (energy consumption, renewable
energy, etc.)
Environment Pollution Pollution Pollution of air; Pollution of water; Pollution of soil
Environment
Water and
marine
resources
Water usage Water discharges; Water consumption / withdrawals
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Environment
Biodiversity
and
ecosystems
Biodiversity
Direct impact drivers of biodiversity loss (climate
change, land-use change, …); Impacts on the extent
and condition of ecosystems (desertification, etc.)
Environment
Circular
economy
Resources use & circular economy
Resources inflows, including resource use; Resource
outflows related to products and services; Waste &
recycling
Social
Own
workforce
Employee development, attraction
and retention
Working conditions; Secure employment, work-life
balance, training and skills development, etc.
Social
Own
workforce
Employee health & safety
Working conditions: Health & Safety, measures against
violence, etc.
Social
Own
workforce
Employee diversity, equity and
inclusion
Equal treatment and opportunities for all (equality,
diversity, training, inclusion, etc.)
Social
Own
workforce
Human rights
Other work-related rights (child/forced labor, privacy,
etc.)
Social
Workers in
the value
chain
Workers in the value chain
Supplier environmental assessment; Working
conditions (Secure employment, work-life balance,
H&S, freedom of association, etc.); Equal treatment
and opportunities for all (DE&I, etc.); Other work-
related rights (child/forced labor, privacy, etc.)
Social
Affected
communities
Local communities’ wellbeing
Communities’ economic, social and cultural rights;
Communities’ civil and political rights (freedom of
expression, assembly, etc.)
Social
Consumers
and end-
users
Customer privacy
Information-related impacts for consumers and/or
end-users (Privacy, quality of information, etc.)
Social
Consumers
and end-
users
Customers welfare and safety
Personal safety of consumers and/or end-users health
and safety
Social
Consumers
and end-
users
Customers access and affordability
Social inclusion of consumers and/or end-users
(affordability, non-discrimination, access to product,
responsible brand)
Social
Consumers
and end-
users
Product quality & safety
Product or service quality & safety (cleanness,
convenience, security, etc.)
Governance
Business
conduct
Corporate culture & governance
Corporate culture & governance (board independence,
internal controls, whistle-blowers, etc.)
Governance
Business
conduct
Business ethics
Business ethics; Political engagement and lobbying
activities; Management of fair relationships with
suppliers; Corruption and bribery
Governance
Business
conduct
Compliance with regulatory
frameworks
Compliance with regulatory framework
Governance
Business
conduct
Data and cyber security Data & cyber security
In doing so, we excluded some sustainability matters that were in the comprehensive initial list, because they
were not raised as a key matter for our stakeholders during our engagement process, and because they were
not applicable to our activities.
Define impacts, risks and opportunities (IRO’s)
Based on the identified relevant sustainability matters, we assessed the impacts, risks and opportunities
affecting our business model and our stakeholders. We identified more than 140 IRO’s, based on their inherent
nature to our business model along the value chain, the input of our stakeholders, our ESG Management group,
our internal audit department, and our Senior Management.
We analyzed:
• whether each impact has a positive or negative effect on Shurgard, or whether it involves a risk or
opportunity;
• whether the IRO is a direct or indirect impact resulting from our business model;
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• whether the impact is actual (present) or potential (future);
• the IRO trend over time, assessing whether it is stable, increasing or decreasing;
• where the IRO is located along our value chain, including whether the IRO originates from the company's
own operations, its value chain or its business relationships; and
• what the time horizon for a potential materialization of the IRO might be.
For the risks and opportunities, we also assessed their primary origin (value chain, operations or business
relationships) and their dependency (on resources or relationships). The list of IRO's is reviewed on an ongoing
basis throughout the year.
Shurgard
topic
Impacts, risks and opportunities
Climate
change
adaptation &
resilience
Damages to customer goods stored in our properties (e.g., floods, earthquake); Safety risk for our customers or
local communities in case of unadapted assets; Waste of resources when assets are damaged due to
inappropriate resilience to extreme events; Damages to our properties resulting in business interruptions and
repair costs; Increase of customer goods and property damage insurance costs; Increase in customer claims;
Stranded assets, loss of operating license; Decrease in portfolio value.
GHG
emissions
Impact of emissions of GHG through direct (on-site) or indirect (non-renewable energy consumption) combustion
of fossil fuels for building heating, cooling, lighting, hot water generation, fans/pumps, company cars, travel,
etc.; Impact of Scope 3 embodied GHG emissions from purchases, services, acquisitions, development and
renovation projects, etc.; Ownership and acquisition of buildings with low energy efficiency (bad EPC/PED,
absence of BMS, outdated lighting or heating technologies, poor building insulation, unnecessary consumption
due to operating process (lights at nights, doors opened with air-conditioning on, etc.); High energy consumption
due to low energy efficiency; Stranded assets, loss of operating license for properties with low energy
performance; Decrease in portfolio value for low energy performance assets; Exposure to increasing energy costs;
Strengthening of energy related regulations, resulting in significant investments needs; Implementing energy-
efficient solutions can reduce operational costs, dependency on carbon resources and give a competitive
advantage. Including for acquisitions, when acquired assets present opportunities for green retrofit solutions
(LED lighting, renewable energy sources, insulation), this can reduce operational costs and enhance sustainability
performance of older buildings in the portfolio; On-site or offsite production of renewable energy can reduce
operating costs, dependency on carbon resources and have a positive impact on reputation.
Pollution
Non-compliance with air pollution norms (dust, exhaust gas, transportation) during construction or operation;
Water or soil pollution from uncollected oil, paints, chemicals or wastewater; Dust, noise (cooling towers, fans,
water pumps, etc.) or light disturbance from construction or properties operations, impacting direct neighbors;
Increased pollution norms and regulations resulting in higher construction and compliance costs (additional
waste recycling requirements) or materials (e.g., silent pumps); Activist actions can result in increased pressure
to apply stricter norms and can cause reputational damage to a company; Soil or water contamination can result
in significant depollution costs; Noise pollution can result in claims from neighbors that can have a financial or
operational impact.
Water usage
Inadequate water discharge design could be prejudicial to the capacity of sewerage systems to absorb all liquids;
High water consumption, in certain areas or months, could contribute to a temporary decrease of available water
levels and could lead to temporary water usage restrictions; Water leaks, issues with plumbing or accidental
discharge of sprinkler systems could damage goods stored by customers; Increasing water costs due to resource
scarcity, regulations or increasing water treatment and distribution costs; Water leaks could result in property or
customer goods damages; Low flow taps, rainwater collection systems and water leak detection systems can
decrease water consumption and associated costs.
Biodiversity
Development and construction can have a direct negative impact on biodiversity, in case of land-use change or
construction on protected / green areas; Development and construction decreases the extent and condition of
ecosystem (desertification, destruction of species’ natural habitat, etc.);
Development and construction
contributes to resources overexploitation; Available unbuilt space on our sites can be used to maintain or develop
biodiversity (e.g., plants, bird boxes, etc.); Reduced development opportunities due to biodiversity preservation
rules; Additional requirements to obtain building permits (e.g., green roofs).
Resource use
& circular
economy
Lack of maintenance of assets reducing their lifetime; Underutilized space and areas at properties; Unadaptable
buildings for alternative uses, non-modular construction techniques; General procurement of (raw) materials
from non-reusable / refurbishable/ recyclable sources; Strengthening of regulations concerning construction
materials, that includes the possibility to lay down requirements for the proportion of recycled materials, digital
prints for buildings or the use of the Level(s) assessment framework aimed at analyzing materials’ life cycle in
public markets; Increase in sourcing costs for construction and developments, due to unavailable resources or
alternative (more ecological) raw materials use; Using eco-friendly / sustainable materials for merchandise sold
to customers.
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Employee
development,
attraction
and
retention
In this section you will find risks and opportunities arising from impacts and dependencies on own workforce.
The following are widespread individual negative impacts: Lack of staff training and mentoring; Lack of
development opportunities, unclear goals & objectives; Unfair / uncompetitive rewards; Low collaboration and
connection between staff; Absence of a culture of feedback, recognition and appreciation; Absence of collective
representation; Unsecured employment; Poor work/life balance, inflexible work hours or workplace.
Lack of employee engagement and low performance can have a negative impact on the company's operational
success (e.g., bad customer experience); Staff turnover and difficulty attracting talented employees can lead to
operational discontinuity, loss of critical organizational knowledge and higher recruitment costs; Lack of training
and mentoring can affect the ability of our staff to perform their expected tasks and can cause reputational
damage or lack of compliance with regulations ; Poor working conditions (work-life balance, flexibility, ...),
company culture (ongoing feedback, clear goals & objectives, …) or employee perspective can lead to
demotivation, difficulties attracting talented people and higher turnover; Long-term retention plans, such as long
and short term incentive plans can contribute to critical staff retention.
Employee
health &
safety
The following are widespread individual negative impacts: Inadequate working conditions or environment
impacting physical, mental and social wellbeing (e.g., overworking employees, pressure, inadequate chairs, desk
position, tools, lights, poor maintenance, etc.); Lack of training, compliance culture, and protocols on health and
safety prevention; Inadequate personal protective equipment; Lack of emergency procedures or site signage
could result in serious injuries.
Increased absenteeism and staff turnover resulting from poor working conditions; Serious staff injuries resulting
in long term sickness, claims and reputational damages; Higher staff-related insurance premiums.
Employee
diversity,
equity and
inclusion
Different treatment of employees based on age, race, ethnicity, cultural background, gender, sexual orientation,
religion, educational background, etc., resulting in lack of diversity in the leadership team and among employees;
Absence of policies, internal communication and training on DE&I, resulting in a lack of corporate culture and
support on DE&I topics; Lack of attractiveness on the labor market due to poor DE&I corporate culture; Employee
turnover or absenteeism; Employee or customer claims for unequal treatment and opportunities, with
reputational impact
Human
rights
Lack of freedom of association and the right to collective bargaining, barriers to unions; Forced, compulsory or
unpaid labor; Inadequate pressure on employees; Staff harassment or threatening; Reputational damages,
mediatization of cases of non-respect of human rights; Prosecution and legal claims for disrespect of employees
work-related rights; Fines for non-respect of the social law.
Workers in
the value
chain
Engaging with suppliers or contractors that do not respect standards on health and safety, DE&I or human rights;
Engaging with suppliers or contractors that have poor ESG practices, contributing to climate change or violating
laws; Reputational damages, mediatization of cases of non-respect of human rights in the value chain or poor
ESG practices in Shurgard's value chain; Dependency on suppliers or contractors whose activity could be
disrupted due to failure to comply with regulations or laws; Increasing regulations, standards and expectations
of the company's value chain practices, leading to more expensive purchases or services; Dependencies in third-
party asset management contracts: third-party owners may choose to terminate their management contracts,
especially if business expectations and performance are not met.
Local
communities
wellbeing
Shurgard's development could negatively affect available land and related prices for alternative applications
(housing, gardens, etc.); Shurgard's hybrid operating model, with remotely managed stores, could reduce the
local employment opportunities; Stores construction and operation could generate local nuisance (noise, lights,
visual pollution, mobility impact, etc.) and have an impact on the local environment; Shurgard's properties
generate sources of income for local communities, through taxes and employment, and offer services that might
be useful; Claims from neighbors against nuisances generated when developing or operating stores could delay
store openings or impact store operations; More stringent local regulations and local land management could
increase the complexity or impact the likelihood/frequency of obtaining building permits; Local authorities could
require specific conditions to provide a permit, that could affect the expected construction or operating costs
(e.g., minimum employment, specific investments, etc.); Local communities characteristics or perception of the
company could impact our ability to find adequate staffing for our properties.
Customer
privacy
Misuse of customer data for marketing purposes; Leakage of personal customer data held by the company,
leading to risk of identity theft, financial fraud or other crimes; Sharing customer data with third parties without
prior consent; Misleading or incomplete information to customers about products, pricing, or contracts; Penalties
or fines for GDPR regulation infringement; Customer claims for market practice abuse or misleading / poor
quality of information on products and services; Reputational damage in case of customer data leak, that could
negatively affect customers' and investors' trust in the company; Risk of hacking, whereby Shurgard would be
blackmailed to prevent customer data leak.
Customers
welfare and
safety
Health & safety hazards for customers visiting our stores: store ventilation, fall hazards, fire prevention, security
warnings & signage, asbestos, etc; Robberies, burglaries or threat to customers, specifically for remotely
managed stores or stores opened 24/7; Criminal offence of breaching customers health and safety; Fines and
claims in case of customer serious injury; Loss of operating license for stores that would not meet the
requirements on health & safety; Implementing preventative measures on robberies and theft could be perceived
positively by clients and provide a competitive advantage (e.g., alarms, limitation of access with personal digits
or codes, etc.)
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Customers
access and
affordability
Discrimination in terms of accessing products and services for disabled customers, or customers with difficult
physical or mental conditions (lifts, parking spaces, accessibility for clients in wheelchair, etc.); Lack of
accessibility of the products and services through various engagement channels (web, app, walk-in, call, access
hours, etc.); Non-affordable products and services for the target customers, with a price that does not justify the
perceived or actual value of these; Loss of customers or potential customers due to unaffordable products or
services; Loss of customers or potential customers due to inaccessible products or services; Mediatized claims
from customers with difficult physical condition on the lack of efforts on the accessibility of the stores; Claims
from customers on potential discrimination towards products or services.
Product
quality &
safety
Poor product quality, cheap materials, unsafe products that do not meet the customers’ expectations; Poor
service, renting out space that does not meet cleanliness or security requirements; Customer dissatisfaction
leading to lower sales and loyalty; Increased product liability claims and legal fees; Using eco-friendly /
sustainable materials for merchandise sold to customers.
Corporate
culture &
governance
Non-independent or unqualified boards and audit committee, or intentional misleading information from the
senior management, leading to decision-making which does not balance the interests of all stakeholders, with
biased decisions; Lack of internal controls, weak risk management, inefficient internal control, leading to risks of
fraud, breaches of laws, lack of integrity or corruption; Executive remuneration: Lack of independence of
Remuneration Committee, non-compliance with transparency and disclosure regulations, unfair rewards,
conflicting interests; Insider dealing; Influencing and pressuring external audit could lead to misstated financial
statements; Loss of shareholder trust and confidence, with as a consequence, difficulty to raise capital; Increased
government oversight in cases of non-compliance or lack of transparency on disclosures; Bad strategic decisions
and company underperformance resulting from a lack of governance; Penalties, fines or claims resulting from
non-compliance with laws and regulations; Poor attractiveness or retention of Directors, bad leavers or bad
decisions for long-term value creation, resulting from inadequate executive remuneration.
Business
ethics
Unethical commercial practices (overbilling clients, misleading product information or marketing communication,
etc.); Collusion on prices with suppliers or competition; Unfair/imbalanced relationship with suppliers, non-
respect of contractual obligations, including payment terms; Corruption and bribery, including political
engagement or contributions; Claims, fine or prosecution for law violation (corruption, bribery, non-respect of
contractual obligations, anti-trust, etc.); Loss of reputation due to mediatized unethical commercial practices.
Compliance
with
regulatory
frameworks
Non-compliance with regulations (building permits, social law, CSRD, EU taxonomy, GDPR, etc.); Regulatory
compliance for acquisitions, specifically when older buildings enter existing portfolios. Such buildings may need
upgrades to meet current environmental and safety standards, increasing the risk of penalties or reputational
damage if compliance issues arise post-acquisition; Penalties, fines or claims resulting from non-compliance
with local laws and regulations; Loss of reputation, business disruption, loss of revenue or loss of license to
operate resulting from non-compliance with laws and regulations.
Data and
cyber
security
Unprotected or unencrypted IT assets, leading to data breaches; Lack of awareness by end-users in an
organization of cyber security risks (training, policies, awareness campaigns, etc.); Lack of intrusion/penetration
detection systems, weak password management, lack of access controls; No incident response plan in case of
security breach; Misuse of QR-codes in remotely managed stores for phishing attempts; Reputational damage in
case of data breach; Loss of strategic or operational data, intellectual property theft; Financial losses, fines,
claims or blackmailing in case of breach of data.
Assess impact and financial materiality
The impact materiality perspective focuses on the impact that a company's activities have on society and the
environment. It considers how a company's operations affect external ESG issues. For each impact identified, we
assessed its materiality based on several criteria defined below. This assessment is qualitative, and where
appropriate and possible, integrates quantitative data.
• Scale/gravity: the scale/gravity criterion assesses the level of seriousness of negative impacts. The
scale of impact is a relative measure depending on the context in which the impact takes place.
• Scope: the scope of the impact is related to how widespread the impact is. In the case of environmental
impacts, the scope may be understood as the extent of environmental damage or a geographical
perimeter. In the case of impact on people, the scope may be understood as the number of people
adversely affected.
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• Remediability: (irremediable character) concerns whether and to what extent the negative impacts
could be remediated, restoring the environment or affected people to their prior state.
• Likelihood/frequency: the likelihood/frequency of the impact considers the current state as well as the
projected development of the likelihood/frequency of the underlying impacts materialization in all time
horizons relevant to the impact.
Each criterion has been assessed through a grid of 6 levels (scores 0 to 5) defined as below. The final score is
expressed on a scale from 0-10, taking into account the average of scale/gravity, scope and remediability,
multiplied by the likelihood/frequency of the impact. The ranges are aligned with our Enterprise Risk
Management.
The formula applies different prorated weightings depending on whether the impact is actual and positive or
subject to specific conditions (i.e. severe human rights impacts where severity,
defined by the scope, scale, and
remediability, takes precedence over likelihood).
The financial materiality perspective assesses topics from a financial perspective, considering the ERM insights.
A topic is financially material if it triggers financial effects on undertakings, i.e., generates risks or opportunities
that influence or are likely to influence future cash flows and therefore the enterprise value of the undertaking
in the short, medium or long term but are not captured by financial reporting on the reporting date. These risks
and opportunities may derive from past events or future events and may have effects on future cash flows in
relation (i) to assets and liabilities already recognized in financial reporting or that may be recognized as a result
of future events or (ii) to factors of enterprise value creation that do not meet the accounting definition of assets
(liabilities) and/or the related recognition criteria but contribute to the creation/maintenance of enterprise
value.
• Actual/potential risk: a risk will be considered actual if it is not a one-off event but a recurring or
systemic issue. If the risk was significant some years ago and remains relevant (through repeated
incidents or the risk of recurrence), it is classified as "actual" risk. However, if the past issue is resolved
and unlikely to occur again, but still represents a future risk, it is classified as "potential".
• Magnitude: assesses the extent of the financial effects, possibly expressed in monetary units, over the
short, medium and long term. Typically, it refers to cash flows or enterprise value impacts.
• Likelihood/frequency: the likelihood/frequency of the topic considers the current state as well as of
the projected development of the likelihood/frequency of the materialization of the underlying impacts
in all time horizons relevant to the topic.
To determine our impact and financial materiality threshold, we performed a sensitivity analysis (a review of
scenarios based on likelihood and impact, and the cash flow impact on our financial situation, etc.). We also
made a peers’ comparison and applied our own judgment on topics that would be included or excluded based
on the stakeholder engagement process. Based on the above, we have determined that topics with an impact or
financial materiality higher than four are material.
Prepare the double materiality matrix
Our double materiality assessment is translated into a matrix, where the "x" axis represents the financial
materiality (importance of the topic on Shurgard) and the "y" axis represents the impact materiality (importance
of the topic on our stakeholders). The chart is based on a scale from 0 - 10, based on the scoring mechanisms
described previously.
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Based on the above double materiality assessment, we previously mentioned a short list of 20 topics that are
relevant for our stakeholders or for Shurgard. Our scoring exercise resulted in 14 topics being material, whether
from an impact perspective, a financial perspective, or both. One topic stands out in terms of double materiality:
GHG emissions.
On the contrary, the assessment concluded that six topics can be considered as immaterial both from an impact
and a financial materiality perspective, as they were associated with a score lower or equal to four (4), for both
materialities.
• Product quality & safety: Shurgard does not manufacture products. In our value chain, we considered the
limited number and type of products sold: merchandise (boxes, locks, etc.) and storage space. Based on our
materiality assessment, it is deemed that quality and safety risk on our merchandise is not material for our
customers, considering the product type and its usage. Unlike businesses that provide physical goods,
Shurgard’s service is rooted in property rental, where customer safety and service quality are primarily
addressed through facility maintenance and safety protocols rather than product standards. The limited
product sales (merchandise) do not constitute a core component of our customer interaction and do not
present material risk in terms of quality or safety. The risk in our store space was considered as a topic
related to our customers, when physically visiting their units in our buildings (see "Customer welfare and
safety").
• Biodiversity: real estate companies typically have an impact on biodiversity. However, during our materiality
assessment, we concluded that Shurgard does not directly or indirectly (through its value chain)
significantly exploit scarce natural resources. It was also concluded that the risk of affecting the extent and
condition of ecosystems was low, considering that Shurgard typically does not change any land allocation
(e.g., converting a greenfield into a commercial area) to develop. Shurgard also only develops in large and
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urbanized cities where the risks of affecting natural habitats and living spaces for species or deforestation
are very limited.
• Customers’ access and affordability: The double materiality assessment revealed that, although many
customers consider access and affordability as an important topic, the impact is considered as very limited,
due to the nature of the services we render. Compared with, for instance, public transport companies (where
e.g., access to disabled people is crucial) or energy providers (an essential utility), clients that are using self
storage are typically sufficiently serviced by our parking spots for disabled people, our lifts, etc. The nature
of our contracts (short-term contracts, breakable on a monthly basis), and the non-essential characteristics
of our activities (in contrast to housing for instance) makes this topic less material for our business.
• Water usage: our operations generally require minimal water consumption. Most of the water use would
be limited to restrooms, basic facility maintenance and water for sprinklers, which does not have a
significant impact on overall consumption or local water resources.
• Pollution: our facilities typically have low pollution-related impacts. They do not involve manufacturing or
significant industrial processes, which means there is minimal risk of contributing to air, soil, or water
pollution. Additionally, our buildings are often low traffic, reducing the need to address issues like vehicle
emissions or chemical pollution.
Evaluate strategic implications
Based on the material topics identified, Shurgard has put in place several strategic mitigation actions to address
the impacts, risks and opportunities identified. These actions are subject to detailed disclosures and KPI's in our
Sustainability report.
GRI 2-29
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:
Double 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
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
Workers in the value chain
6.4 – Encouraging ESG best-practices in our supply chain
Human Rights
5.1 – Safe and inclusive workplace
6.4 – Encouraging ESG best-practices in our supply chain
Corporate culture & governance
6.1 – High governance standards
Business ethics 6.2 – Business ethics and Code of Conduct
Data and cyber security
6.3 – Data and cyber security
Compliance with regulatory framework
1.4 –External agencies and benchmarks
6.1 – High governance standards
3 – Sustainability Report General information
GRI 3-2 / 3-3
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
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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.
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 January 2022.
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.
GENDER EQUALITY
Gender equality is closely linked to our sustainable development and is crucial to the
realization of human rights for all. We strive to ensure that women and men enjoy the
same opportunities, rights and obligations in our entire value chain.
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3.4 OUR SUSTAINABILITY AIMS, POLICIES & GOALS
We have translated our sustainability topics into concrete goals, grouped into four pillars:
a) Sustainable self storage,
b) Employer of choice,
c) Positive impact on society, and
d) 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.
Each of these sustainability goals will be discussed separately in further detail in this report.
GRI 2-23 / 2-24
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4. ENVIRONMENTAL INFORMATION
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 Environmental Management System (EMS). This
framework integrates our sustainability objectives with comprehensive strategies for environmental conservation
and risk mitigation. The EMS enables us to measure, monitor, and continuously improve our environmental
performance across our operations. Through its structured processes, using data-driven insights, and stakeholder
engagement, we are able 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.
Sustainable design in our buildings is of crucial importance, therefore we consider appropriate measures in 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. To ensure proper land use, we seek expert advice and endeavor to conduct work 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, where possible, we conduct work in
a sustainable manner.
We follow the Greenhouse Gas Protocol standards to measure and report greenhouse gas (GHG) emissions under
Scope 1 and 2. Further, we have now quantified all our Scope 3 emissions. See chapter 4.1 for further details.
GRI 2-22 / 2-23 / 2-24
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GREENHOUSE GAS EMISSIONS
Retrospective
Milestones and target years
Tonnes CO2 equivalent 2024 2023
∆ %
2023 2024
Baseline
2017
Dev 2025 2030 2040
Annual %
target / Base
year
Scope 1 1,376
771
78%
2,045
-33%
% of Scope 1 from regulated emissions trading schemes
0
0
-
0
-
Scope 2 (location-based)
4,385
3,526
24%
5,603
-22%
Scope 2 (market-based)
752
639
18%
-
-
Scope 1 + 2 (location-based)
5,761
4,297
34%
7,649
-25%
-100%
-25%
Scope 1 + 2 (market-based)
2,129
1,409
51%
-
-
-100%
-
Scope 3
399,060
-
-
-
-
Net Zero
Cat.1 Purchased goods and services
36,058
-
-
-
-
Cat.2 Capital goods
341,534
-
-
-
-
Cat.3 Fuel- and energy-related activities (not included in Scope 1 or Scope 2)
537
-
-
-
-
Cat.5 Waste generated in operations
6
-
-
-
-
Cat.6 Business travel
462
360
28%
-
-
Cat.7 Employee commute
494
330
50%
-
-
Cat.9 Downstream transportation and distribution
12,494
7,560
65%
-
-
Cat.12 End-of-life treatment of sold products
7,475
-
-
-
-
Total emissions (location-based)
404,821
-
-
-
-
Total emissions (market-based)
401,189
-
-
-
-
Emissions intensity per net revenue (location-based), tCO2e/EUR*
0.000996
-
-
-
-
Emissions intensity per net revenue (market-based), tCO2e/EUR*
0.000987
-
-
-
-
* Revenue used in the calculation is as reported in Note 5 of the Financial Statements
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72
Energy consumption and mix
2024
2023
Fuel consumption from coal and coal products
-
-
Fuel consumption from crude old and petroleum products
-
-
Fuel consumption from natural gas
1,060
1,863
Fuel consumption from other fossil sources
-
-
Consumption of purchased or acquired electricity, heat, steam, and cooling
from fossil sources
2,999
2,546
Total fossil energy consumption
4,059
4,409
Share of fossil sources in total energy consumption (%)
13.7
18.3
Consumption from nuclear sources
5,676
5,653
Share of consumption from nuclear sources in total energy consumption
(%)
19.2
23.5
Fuel consumption for renewable sources, including biomass (also comprising
industrial and municipal waste of biologic origin, biogas, renewable
hydrogen, etc.)
19,810
13,988
Consumption of purchased or acquired electricity, heat, steam, and cooling
from renewable sources
-
-
The consumption of self-generated non-fuel renewable energy
-
-
Total renewable energy consumption
19,810
13,988
Share of renewable sources in total energy consumption (%)
67.1
58.2
Total energy consumption
29,545
24,050
All values are in MWh
For methodologies used to report this data, please refer to the paragraph "Estimations of data" of the sustainability statement.
Energy intensity based on net revenue
2024
2023
Total energy consumption from activities in high climate impact sectors per
net revenue from activities in high climate impact sectors* (MWh/EUR)
0.00007
0.00007
*High climate impact sectors are those listed in NACE Sections A to H and Section L (as defined in Commission Delegated Regulation (EU) 2022/1288). Real
Estate has been listed as a high climate impact sector.
* Revenue used in the calculation is as reported in Note 5 of the Financial Statements
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4.1 TRANSITION TO LOW-CARBON ECONOMY
Shurgard has established measurable, outcome-oriented, and time-bound targets on material sustainability
matters to assess progress effectively. Each target is directly linked to our sustainability policy objectives,
ensuring alignment with our broader ESG commitments. These targets guide our efforts in areas such as GHG
emissions reduction, energy efficiency improvements, and portfolio sustainability certifications, enabling
transparent tracking of progress. Through these commitments, we aim to drive continuous improvement and
accountability in our environmental and social impact.
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.
OUR NET-ZERO CARBON GOALS
Our strategy can be split into two phases: (i) addressing operational emissions (i.e., so-called Scope 1 and 2
emissions as classified in the GHG Protocol) and (ii) achieving Material Net-Zero Carbon by 2040, or sooner,
which also addresses Scope 3 emissions (that includes embodied carbon).
We define Operational Net-Zero Carbon for our properties as when the greenhouse gas emissions associated
with their operation each year are zero or negative (Scope 1 and 2). 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
residual emissions by high quality offset projects or carbon credits.
Material Net-Zero Carbon includes emissions from indirect sources (Scope 3).
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74
Our Net-Zero Carbon goals are the foundation of our transition plan. They have been approved by the Board of
Directors. Shurgard does not currently apply internal carbon pricing schemes. The Board of Directors is, however,
regularly tracking the implementation progress through its various administrative bodies against the set targets.
PHASE ONE – SCOPE 1 AND 2 – OPERATIONAL NET-ZERO CARBON
Self storage vs. Real estate
According to the International Energy Agency, the operations of buildings account for 30% of global final energy
consumption and 26% of global energy-related emissions. This statistic does not depict the significant variances
between the industry’s subsectors, as evidenced by a study performed by KPMG on 103 European listed real
estate companies that were members of the EPRA organization as of December 31, 2023
1 2
. The average GHG
intensity (expressed as emissions of kgCO
2, by year and by sqm) of the self-storage industry is already c.90%
below real estate players active in office, healthcare of retail businesses, and by far the lowest of the real estate
subsectors included in the study.
Notwithstanding the above, we are dedicated to contributing to the continued decarbonization of our industry
operating the assets.
Our Scope 1 and 2 emissions
Our Phase One Net-Zero Carbon target, which we aim to
achieve by 2030, applies to the Scope 1 and 2 emissions
of our operations. 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 2024, we emitted 1,376 tCO
2 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
2024, we have emitted 4,385 tCO
2 (location-based
2
) 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, 100% of our electricity
1
1340150_4900146__EPRA_2024__Etude_32_18__241107_KR.pdf
2
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 ANNUAL REPORT 2024
75
and more than c. 85% of our gas is
already sourced from Renewable Energy Guarantees of Origin (REGO) backed
sources.
Despite the significant growth of our portfolio of +44%, in terms of Gross Internal Area sqm (“GIA”) from 2017
to 2024, we have been able to significantly reduce our location-based absolute Scope 1 and 2 emissions, from
7,649 tCO
2 in 2017 to 5,761 tC02 in 2024 (-25%).
Operational Net-Zero Carbon delivery strategy
We intend to follow the GHG Protocol, as well as sector-specific guidance when available, 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 actions. As stated earlier, 100% of
our electricity and more than 85% of our gas is
already sourced from Renewable Energy Guarantees of Origin
(REGO) backed sources. We decided to go further and achieve Net-Zero Carbon on a location-based basis,
ensuring the alignment of our purchased or produced renewable electricity with our consumption in real-time.
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76
Our initiatives are strategically rolled out, considering their financial return and the specificities of all the
countries in which we operate. To support our decision-making process, we have projected our Scope 1 and 2
GHG emissions from 2017 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 2017 to 2024. Despite the growth of our portfolio,
specifically in 2024, we have cut absolute location-based GHG emissions by c. 25%. With our current ongoing
initiatives described thereafter, 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
7,649 tCO
2 in 2017 to c. 2,760 tCO2 in 2030 (c. -64%). Notwithstanding a continuous reduction in our consumption
and emission intensity, expressed in sqm, emissions will be impacted by our projected growth, as we plan to
increase our footprint by more than 50% by 2030. We are continuously looking for additional initiatives to
manage GHG emissions. We are currently focused on further expanding our solar roll out, analyzing the economic
feasibility of equipping stores with batteries and looking for Power Purchase Agreement contracts.
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
covered not only the lighting of the storage area, but also the parking, offices,
and internal drives.
Lighting the stores represents a significant portion of the electricity consumed
(c. 50%), and the LED lights deliver an estimated consumption saving of c. 60% compared to traditional bulb
lights.
Last year we achieved 100% coverage in our seven markets, with the installation of more than 100,000 LEDs
across our entire portfolio, and we are keeping this standard for all new openings.
Smart Building Management System
To optimize our energy consumption control and avoid wasted energy, we have selected a state-of-the-art
building management system (BMS). Last year we finalized the installation in our two test markets, in Belgium
and the Netherlands. This system helps us 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
consumption patterns, allowing us to take immediate remediation actions.
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Based on what we have learned and the positive impact it has had on the consumption at our stores in these
markets, we have decided to roll out this BMS in all our markets. We have already equipped more than 100 stores
and expect to complete the roll out to our entire portfolio in the first half of 2025.
EPC and BREEAM certifications
Shurgard strives to achieve and maintain 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. It 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, 70% of our floor area
is associated with an EPC label A or A+ and 23% of our portfolio holds a BREEAM certification (BREEAM New
Construction or BREEAM In Use), and we are committed to certifying assets in our pipeline where relevant.
Heat pumps
In order to both reduce our energy consumption and shift it towards less carbon-intense energy sources, in 2021
we started a program to replace our gas heating with energy-efficient alternatives like heat pumps. This program
is on track, with 36% of all heated stores completed. We are also planning additional installations on buildings
recently acquired, to remain on track to achieve the objective of zero gas consumption by 2029.
Solar panels
We are developing a coherent energy supply strategy, with the aim of making it as neutral as possible for the
environment. Today, 100% of our electricity and more than 70% of our gas is
already sourced from Renewable
Energy Guarantees of Origin (REGO) backed sources.
We are now implementing the next steps in our efforts to reduce our carbon footprint.
Firstly, with the acquisitions made this year, we almost doubled our number of sites equipped with solar panels.
We went from 23 stores generating free and renewable energy, to 40 in 2024.
Secondly, we performed a full technical assessment of our properties in the Netherlands, the United Kingdom
and Belgium and we have kicked off the roll out of our solar panel project. We selected the most suitable sites
and sized the installation on each roof to maximize the financial and sustainable returns. By the end of 2025, 74
stores and our European Support Center will be equipped with more than 10,000 solar panels. These will generate
4,070 MWh of renewable electricity each year (around 15% of our annual electricity consumption, with an
estimated own use of c. 45%). This will allow us to further decrease our annual emissions by approximately 380
tCO
2. We expect these investments to be in line with our target yield (8-9%).
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78
Part of this project includes the centralizing of our solar production data into a single platform. The platform will
facilitate effective reporting on the production of renewable energy and enable us to obtain relevant insights
(such as the portion of energy consumed vs. reinjected to the grid).
We will expand our analysis to new markets, focusing next on France and Germany.
Batteries
The price of batteries has gone significantly down lately, while their capacity is increasing. We are analyzing the
potentiality of equipping stores (those with solar panels) with batteries. This would allow us to maximize the
own use of the renewable energy produced.
Green Bond
On July 23, 2021, the Group issued new 10-year Senior notes for €300.0 million. The proceeds of the issuance
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, 2024, we were able to allocate all proceeds to Eligible Green Projects, for a total
amount of €300.0 million. A portion – €89.2 million – was used to refinance existing projects at issuance,
whereas €210.8 million was used to finance new projects. We are still expecting to receive the pending
certificates in 2025 and 2026 to complete the requirements of the Green Bond Framework.
Store Name Certification date Rating Location
Total ('000€)
December 31, 2024
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
City Airport April 1, 2021 Excellent London 6,044
Barking December 23, 2024 Excellent London 12,697
Chiswick December 24, 2024 Excellent London 24,584
Morangis October 11, 2022 Very Good Paris 10,278
Rotterdam Stadionweg July 25, 2023 Very Good Rotterdam 16,479
Lagny October 20, 2023 Very Good Paris 10,155
Satrouville April 22, 2024 Very Good Paris 9,814
Versailles April 22, 2024 Very Good Paris 11,111
Projects with BREEAM certificate "Very Good” or higher
157,349
Bow
Upcoming certification
London
25,401
Chadwell Heath Upcoming certification
London 17,900
Tottenham Upcoming certification
London 20,766
Wangen Upcoming certification
Stuttgart 16,135
Berlin Charlottenburg-Nord Upcoming certification
Berlin 14,710
Neuss Upcoming certification
Dusseldorf 14,254
Leinfelden Upcoming certification
Stuttgart 9,283
Croydon Purley Way Upcoming certification
London 9,044
Hayes Upcoming certification
London 7,772
Southwark Upcoming certification
London 4,445
Camden Upcoming certification
London 2,941
Other Eligible Green Projects (upcoming certification)
142,651
Total Eligible Green Projects 300,000
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79
Shurgard’s Green Bond Committee, which reviews the Green Bond Framework and the amounts of the net
proceeds allocated to the Eligible Projects, is held annually and took place in July 2024.
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.
Science-based targets initiative (SBTi) alignment and decarbonization pathways
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) and Science Based Targets
initiative (SBTi) have established science-based decarbonization pathways for numerous developed real estate
markets globally, aligning with the 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 Net-Zero Carbon
targets and the Paris Agreement.
These pathways serve two main purposes: Net-Zero Carbon alignment and transition risk assessment.
Organizations like the Net-Zero Carbon 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 tCO
2e/sqm by 2050, they are considered ambitious enough for Net-Zero
Carbon 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. Guidance for the buildings sector has been released which
is aligned with the CRREM tool 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
use the one that is the closest to our activity, namely the “distribution warehouse (warm)”. Although our 2017
carbon intensity was c. 70% lower than the closest real estate SBTi subsector, this is factored in the company
specific SBTi pathway. 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.
First of all, Shurgard’s targets are significantly ahead of the SBTi decarbonization pathways. Should we not take
any additional initiatives other than the
ones we have already committed to
implement, we would expect to decrease
our emission intensity by 78%, while SBTi
would expect us to reduce our 2030 carbon
intensity by 68%. However, we aim to reach
Operational Net-Zero Carbon (i.e., -100%),
i.e., meaningfully outperforming the SBTi
requirements.
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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.
Based on the review of our value chain, we identified nine Scope 3 categories that are relevant to our business
activities.
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81
Material Net-Zero Carbon delivery
The embodied carbon coming from our store development and acquisitions is particularly important, as it
accounts for a substantial proportion of our overall carbon footprint. We are working on increasing the reliability
and completeness of our Scope 3 data, specifically for developed and acquired properties, through life-cycle
assessments. The guidance around Scope 3 accounting is evolving, with different existing frameworks (GHG
Protocol, SBTi, GRI, etc.), and limited sectoral guidance, at this stage. We are currently reporting according to the
GHG Protocol, with the assumptions detailed in the next paragraph. These assumptions might evolve as further
guidance becomes available. Once a clearer view on the Scope 3 data is available, we will be able to define a
robust roadmap for our Material Net-Zero Carbon engagement.
Assumptions & methodologies
• Category 1 Purchased goods and services: we used the “average spend-based method”, which
involves estimating emissions for goods and services by collecting data on the economic value of goods
and services purchased and multiplying it by the relevant secondary (e.g., industry average) emission
factors (e.g., average emissions per monetary value of goods). Emissions factors for different types of
goods and services in real estate are not readily available, therefore a general real estate service
emission factor was used, in kgCO
2/euros as most applicable for European countries. For
refurbishments and new development, the CapEx items associated with materials and construction
actions (such as demolition) were excluded from the spend-based calculations as they are already
counted in the LCA calculations and category 2 reporting (Capital goods).
• Category 2 Capital goods: we used the average-product method from the GHG Protocol, which involves
estimating emissions for goods by collecting data on the mass or other relevant units of goods
purchased and multiplying it by the relevant secondary (e.g., industry average) emission factors (e.g.,
average emissions per unit of goods). The relevant unit used here is surface in sqm (GIA), and the
industry average emissions factors used are based on benchmarked values. Where available, the specific
property LCA data point was used. Elsewhere, we used an industry benchmark of relevant locations and
asset types. For refurbishments or extensions, new construction benchmarks were used. Average for
major refurbishment is typically 50-70% of benchmark for new build - to stay conservative, 70% has
been used. For acquisitions, as they related to older buildings and with no data available, we used a
conservative benchmark based on industry benchmarks of relevant locations and asset types.
• Category 3 Fuel- and energy-related activities: we included upstream emissions from the production,
refining, and transportation of fuels and energy used in our operations. This category covers emissions
associated with electricity generation, transmission and distribution losses, natural gas consumption,
and district heating. We also included upstream emissions arising from the usage of fuel and electric
company cars. Emissions were calculated using activity data from our operations, company cars and
recognized emission factors.
• Category 5 Waste generated: our waste emissions calculation follows a waste-type-specific
methodology, applying emission factors based on waste types and treatment methods. Data is based
on invoices from waste management facilities or suppliers.
• Category 6 Business travel: we collected information on the number of kilometers and amount of tCO
2
resulting from the travel of employees by company cars, trains and planes for business-related activities
directly from our travel agencies. We also surveyed our employees benefiting from a company car to
estimate the proportion of use of their car dedicated to business travel.
• Category 7 Employee commuting: the mode of transport and distance of employee commute is
collected based on reimbursements schemes, supplemented by statistical averages from national
databases. Emission factors are collected mainly from national databases based on the type of vehicle.
Where no data was available, national average distance of employee commute per market and average
modes of transportation were used.
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82
• Category 9 Downstream transport and distribution: emissions resulting from customer visits to our
stores is based on the total amount of customer visits (registered through the digital access or our
gates and doors), the average % of customers in various catchment areas and a mean emission factor
of a vehicle (we assume that our customers are mainly visiting us with their own or rented vehicle).
• Category 12 End-of-life treatment of sold products: we calculated the emissions from the end-of-
life treatment of sold products by assessing the material composition and weight of each product type
we sell at our stores. Using assumptions based on EU waste treatment statistics and average disposal
scenarios, we estimated the proportion of materials recycled, incinerated, or sent to landfill. Emission
factors were applied for each treatment method and final emissions were calculated.
LOCKED-IN GHG EMISSIONS
As a real estate investment trust (REIT) striving to reach high sustainability standards for its assets, Shurgard
recognizes that the operational emissions of our facilities are largely influenced by energy consumption,
particularly from lighting, heating, ventilation, and security systems. While our buildings have long life cycles,
their associated locked-in GHG emissions primarily stem from embodied carbon in construction materials and
energy use over time.
QUALITATIVE ASSESSMENT OF LOCKED-IN GHG EMISSIONS
Our key assets, including newly constructed and acquired assets, may contribute to locked-in GHG emissions due
to:
• Embodied carbon in materials: the initial carbon footprint from construction materials, including
concrete and steel, represents a significant proportion of the life-cycle emissions.
• Operational energy consumption: while self-storage facilities typically have lower energy demand than
other real estate asset classes, the reliance on grid electricity, particularly in regions with a carbon-
intensive energy mix, can contribute to emissions over time.
Without effective mitigation strategies, these emissions could jeopardize the achievement of our company’s GHG
reduction targets, particularly as we expand our portfolio through acquisitions and new developments.
For our plans to manage the locked-in GHG emissions, please refer to our numerous initiatives throughout
chapter 4 (e.g., LED light, heat pumps, solar panels, etc.)
CLIMATE-RELATED TRANSITION RISKS AND OUR RESPONSE
Transition risks are defined as risks associated with transitioning to a lower-carbon economy. As part of
Shurgard’s risk management system, departments that are part of the ESG Management Group are responsible
for identifying, assessing, managing, and monitoring transition risks associated with their business area. Risks
are assessed in line with Shurgard’s risk management policy.
We have identified the following short-, medium- and long-term transition risk drivers for our business and
operations across our entire portfolio:
Short-term
• 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.
• 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.
• Financial risks: increased borrowing costs and access to capital can change quickly due to market
sentiment, regulatory shifts, or investor expectations.
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83
Medium-term
• Regulatory risks: certain regulatory changes, such as stricter energy efficiency requirements or new
carbon pricing mechanisms, could be introduced within this timeframe, increasing 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 value of our properties
and the profitability of the company.
• 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.
Long-term
• Regulatory risks: the risk of stranded assets due to non-compliance with future energy efficiency
standards and decarbonization pathways is a long-term concern. “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, including for alternative businesses’ use. 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.
At the time of reporting, Shurgard has not identified any asset that would be stranded or at risk of
becoming stranded in the near future. Our ambitions of being Net-Zero Carbon 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.
• Financial risks: if transition planning is inadequate, long-term financial stability could be threatened by
increasing regulatory pressures and market shifts.
We respond to climate-related transition risks through including the considerations below in our business
strategy.
Firstly, we strive to rely solely on green electricity. 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.
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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.
Through our response to climate-related transition risks, we decrease overall the impact and financial risk of our
material topics.
ANTICIPATED FINANCIAL EFFECTS FROM MATERIAL TRANSITION RISKS
As detailed in this section, we believe that Shurgard is currently not exposed to material financial risks related
to short-, medium- and long-term transition risks:
• The self-storage sector emits c. 90% less than all other real estate subsectors and is therefore less
likely to be targeted or severely impacted by strict regulations;
• 70% of our current portfolio, without considering our ongoing initiatives to become greener, have an
EPC A or A+ rating, and 98% have an EPC D or better;
• We are consistently increasing the number of certified assets with internationally recognized
frameworks like BREEAM, whose cost is not material compared to the value of our stores.
• With our current initiatives and transition plan, Shurgard is already expected to respect the SBTi and
CRREM decarbonization pathways for Scope 1 & 2 emissions, and as such the Paris Agreement;
• Our targets are ahead of current regulations, being committed to becoming operational Net-Zero
Carbon by 2030 and material Net-Zero Carbon by 2040;
• Our business is not largely dependent on utilities or energy prices, and our stores and sustainability
practices do not rely on complex or scarce technologies.
• The investments that are required to decrease our overall carbon emissions are typically delivering a
positive yield or are part of our normal maintenance activities.
Our transition plan currently involves the following investments, that will support our transition plans, but also
make economic sense: €11.4 million for the heat pump program over the next five years and €4.5 million for the
solar project in UK, the Netherlands and Belgium, with an expected yield in line with our guidance (8-9%). See
Notes 14 and 15 of the financial statements for the details of the above mentioned.
While in our discussion so far, we have focused on climate-related risk, our double materiality assessment also
identified several climate-related opportunities. These are mainly linked to a reduction in our dependence on
energy and water through lower utilities consumption, as well as generation of our own renewable energy. While
these opportunities are considered positive both from an ecological and economical perspective, considering the
limited importance of utilities in our industry, they are currently not expected to result in material financial gains.
EU PARIS-ALIGNED BENCHMARKS
Shurgard has not been assessed for inclusion in EU Paris-Aligned Benchmarks (PABs). However, we monitor
climate-related benchmarks and investment indices as part of our ESG strategy.
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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.
In 2024, we performed a location-specific physical climate risk assessment of our entire portfolio of 318 stores.
We partnered again with Munich RE, one of the most recognized providers of reinsurance, primary insurance,
and insurance-related risk solutions in the world, having 40 years of climate experience and systematic recording
of global hazard data over the past decades.
The Intergovernmental Panel on Climate Change (IPCC), a UN body, laid the foundation for the 2015 Paris
Agreement. Our climate change assessment relies on the latest 6
th
release of the IPCC assessment report, where
the Panel redefined what “cutting edge” climate change modelling means.
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• The IPCC 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
3
. The
SSPs provide narratives describing alternative socio-economic developments.
We have opted for the SSP2 (or S
SP2-4.5) as the most realistic scenario for Shurgard, as it reflects a balance
between transition and physical risks while capturing plausible regulatory, economic, and environmental trends.
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 the 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
4
, 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. 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:
The assessment considers short-, medium-, and long-term horizons to evaluate business risks and opportunities.
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 chart below
summarizes the number of own stores affected by climate related risks and the associated risk assessment, as
defined in the above table.
3 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.
4 Munich RE, "Climate Change Edition," Location Risk Intelligence, https://www.munichre.com/rmp/en/products/location-risk-intelligence/climate-change-
edition.html.
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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.
For 2024, we identified in total 79 distinct stores that were associated with at least one “high” physical climate
risk, with 62 stores at risk of sea level rise, 12 stores at risk of storm surge and 13 stores at risk of river flood.
These material risks (sea level rise, storm surge and river flood) are considered climate-related physical risks.
The physical climate-related risks are impacting several sides of our value chain, whether upstream
(construction/acquisition), operations (maintenance, retrofit, safety, evacuation protocols, etc.), or downstream
(customer goods coverage).
CLIMATE-RELATED PHYSICAL RISKS AND OUR RESPONSE
It is important to note that physical climate-related risks mainly arise from the long-term effects of rising GHG
emissions. Consequently, our main response to climate-related physical risks is our ambitious plan to contribute
to the overall transition of the real estate sector to a low-carbon economy, as described in 4.1 Transition to low-
carbon economy, that should partly address or mitigate the physical climate risks described previously.
Some adaptation measures for physical climate can be implemented locally, at asset level, to enhance resilience
to sea level rise, river flooding, and storm surges, the main physical climate-related risks that could affect our
portfolio. For example:
• Adaptation to sea level rise: reducing our ground floor footprint and favoriting the elevation of our
buildings; increasing the height of critical infrastructure like mechanical and electrical systems;
constructing seawalls, levees, or revetments to protect properties from encroaching water; creating
natural buffer zones to absorb wave energy; using water-resistant materials in construction (e.g.,
concrete, treated wood, or steel) and installing flood barriers or deployable flood gates around
entrances.
• Adaptation to river floods: implementing green roofs and rain gardens; constructing retention basins
temporarily storing excess water; installing sump pumps in basements; elevating entrances or
constructing floodproof foundations; improving stormwater systems and partnering with local
authorities to improve upstream water management.
Acute
Chronic
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• Adaptation to storm surges: strengthening our building’s structural resilience (reinforce roofs, windows,
and walls); implementing urban forestry programs to stabilize soil and reduce erosion.
• General adaptation measures: developing and communicating evacuation and response plans for our
store staff and customers; adjusting insurance coverage to align with current risk levels; retrofitting
properties to avoid developing in high-risk flood zones or areas projected to be affected by rising sea
levels.
Currently, we have not implemented an adaptation plan to address all current physical climate risks in our existing
portfolio, as we are closely monitoring and controlling or accepting these risks at this stage. However, in our
commitment to addressing physical climate risks, we proactively incorporate adaptation measures during the
planning phase of our projects. By evaluating site-specific vulnerabilities, such as exposure to sea level rise, river
flooding, or storm surges, we design buildings and infrastructure with resilience in mind. This includes elevating
structures, optimizing drainage systems, and using flood-resistant materials. For example: we avoid building
basements; we use mainly resilient building materials such as concrete and steel; in UK and Germany, our new
buildings have water retention areas, either through underground tank systems or open ditches to store excess
storm water; we strictly adhere to the ratio of buildable area (footprint) vs. land area following planning policies;
etc. Furthermore, we actively collaborate with local authorities during the permitting process to ensure
compliance with zoning regulations and to integrate broader community resilience initiatives. This partnership
enables us to align our developments with local climate adaptation strategies, contributing to safer and more
sustainable urban environments.
ANTICIPATED FINANCIAL EFFECTS FROM MATERIAL CLIMATE-RELATED PHYSICAL RISKS
The rentable sqm at high physical climate risk represents 7% of our total rentable area. Most of these properties
are in the Netherlands (4% of our total rentable sqm), due to its geographic situation and low elevation against
sea levels, followed by UK, Belgium and Sweden.
We present below the fair value of the rentable area that could be affected, up to 2100, by physical climate risks.
Brown roof on our new store in Germany: Charlottenburg.
The vegetation absorbs rainwater to lower quantities
reaching the sewer.
Water retention area created on our plot of land in
Wandsbek.
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89
At this stage, there are no additional investments foreseen, other than the ones integrated at the planning and
design phase of our building developments, to increase resilience to physical climate risks.
Our properties and the goods of our customers are also insured against events such as river floods. The increase
of scope or occurrences of such events could increase the cost of our insurance premiums.
We have so far not identified opportunities related to physical climate risks that could have a material positive
financial impact.
4.3 SAVE WATER
This section is a voluntary disclosure, which is not required by ESRS considering the outcome of our materiality
assessment.
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, some stores are equipped with fire sprinklers and our employees have access to a small kitchen. We are
maintaining specific protocols in the design and operation 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 2022, we started to equip 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 facilities teams who can take immediate remediation action. 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. We have already equipped 245 stores with these meters.
In 2024, our like-for-like water consumption decreased by -59% (against a 2017 baseline).
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4.4 RESPONSIBLE RESOURCE USE & WASTE MANAGEMENT
Responsible resource use and the promotion of a circular economy model is a key topic for Shurgard. It involves
strategies and practices that focus on the efficient use of resources, reducing waste, and promoting the reuse
or recycling of materials throughout our operations and facilities.
Shurgard does not directly source building materials, as we primarily acquire existing properties. However, when
we develop new buildings, we follow BREEAM New Construction standards, which incorporate sustainability
principles, including efficient resource use.
SUSTAINABLE BUILDING MATERIALS AND DESIGNS
Constructing self-storage buildings does not require significantly scarce or limited resources. Our building
designs are simple, with a long expected lifetime, and require limited resources for maintenance. Our facilities
are designed to be durable and modular, allowing for easy upgrades, conversion or remix of our units, rather
than full-scale demolition and rebuilding.
In addressing other environmental concerns around 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.
RESPONSIBLE WASTE MANAGEMENT
We have equipped our properties with waste bins for general waste and recycling, and we have special collection
arrangements for waste electronic and electrical equipment and lightbulbs. We provide guidance on 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.
We generated the following waste in our operations in 2023 and 2024, including the recycled portion:
Total portfolio waste
Category 2023 2024
Total weight of waste
generated (tonnes)
Hazardous or radioactive waste - -
Non-hazardous waste 860 962
Total weight of waste
generated via disposal and
diversion route (tonnes)
Recycled 200 223
Landfill - -
Incinerator 660 738
Composting
Preparation for reuse
-
-
-
-
Composition of total
weight of waste generated
(tonnes)
Paper 186 185
Metals 14 38
Glass - -
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Mixed municipal 660 738
Food waste - -
Proportion of total weight
of waste generated (%)
Hazardous or radioactive waste - -
Non-hazardous waste 100% 100%
Proportion of waste
generated via disposal and
diversion route (%)
Recycled 23% 23%
Landfill - -
Incinerator 77% 77%
Composting
Preparation for re-use
-
-
-
-
Composition of total
waste generated (%)
Paper 21% 19%
Metals 2% 4%
Glass - -
Mixed municipal 77% 77%
Food waste - -
In 2024, we also maintained our achievement of 100% diversion from landfills as well as our protocols for low
waste consumption in the design and operation of our stores.
Waste data is gathered for all properties in the portfolio where Shurgard has waste management contracts (322
in 2024 vs. 276 in 2023). Absolute waste has increased by 12%, explained by the larger portfolio. On a LfL basis
(270 stores), the increase is 5%, largely driven by recycled plastics and metals. Overall, the portion of waste being
recycled remained stable at 23%.
RESOURCE INFLOWS
Resource use identified in the operations and upstream value chain include materials related to construction of
self-storage buildings for which the construction was finished in 2024 and materials sold in the Shurgard stores
during the 2024 reporting year.
The estimation of construction materials is based on average material intensity values for commercial buildings
and the total gross area of new developments done by Shurgard in 2024.
We estimate that the main materials used in the buildings, for which the construction was finished in the
reporting year 2024, are concrete, steel and insulation.
Estimated construction materials used,
tonnes
Concrete
29,481
Steel
187
Insulation
193
As a next step, we plan to make improvements in refining these estimates using third-party feedback (checking
the exact usage of recycled materials) and adjusting for regional variations (to consider for local factors that may
affect material intensity). While the construction of our facilities is managed by third-party developers, we plan
to better understand the resource inflows used during construction in future reporting cycles.
For merchandise sold in our stores, we have gathered data on material composition and sustainability
information from suppliers. For example, 100% of our boxes sold in our stores are made from recycled cardboard
certified by FSC, and efforts are ongoing to encourage the use of sustainable materials in locks and tape
dispensers. Our paper packaging solutions partner uses recycled or virgin paper from a certified chain of custody,
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92
and their corrugated cardboard packaging is both recyclable and biodegradable. They prioritize sustainability by
using responsible sources, recycled or virgin paper, and recyclable and biodegradable materials.
Product
Material
composition
Quantity sold
Weight per unit,
tonnes
Total weight of
sold, tonnes
Moving boxes Recycled carton 435,345 0.0004 174
Locks Steel 115,337 0.0003 35
Tape Recycled paper 19,789 0.0002 3
Manual tape dispenser Plastic 14,259 0.0004 6
Total 218
The boxes are made from 100% recyclable corrugated board made from recycled fibers, while the paper tape is
made from recycled materials and is biodegradable As such, the paper-based materials in our merchandise
qualify as secondary reused or recycled components rather than primary biological materials, which typically
refer to raw materials derived directly from natural sources (e.g., virgin wood, bio-based plastics). While some of
our construction materials may contain biological components, we currently lack comprehensive supplier data
to verify their exact composition, which remains a common industry challenge. We aim to enhance data collection
on material sourcing in future reporting cycles.
Weight of biological components, tonnes -
Biological components, % -
1
Secondary reused or recycled components, tonnes
178
Secondary reused or recycled components, %
0.0006
1
1 of total weight of estimated construction materials and merchandise sold materials
RESOURCE OUTFLOWS
Shurgard supports circular economy principles through the design and sourcing of the merchandise sold in our
stores, focusing on sustainability and minimizing environmental impact. Specific contributions include:
• Recycled and certified materials: 100% of the boxes sold in our stores are made from recycled cardboard
certified by FSC. By utilizing recycled materials, we reduce demand for virgin resources and contribute
to waste reduction.
• Sustainability partnerships: We partner with a sustainability-oriented supplier of packaging solutions,
whose products prioritize sustainability. The supplier uses recycled or virgin paper sourced from a
certified chain of custody, ensuring responsible forestry practices. Their corrugated cardboard
packaging is designed to be recyclable and biodegradable, promoting end-of-life circularity.
• Consumer-friendly eco-design: Our products, such as boxes and packaging materials, are designed to
be lightweight, durable, and recyclable, catering to the growing consumer demand for sustainable
packaging solutions.
These efforts align with circular economy principles by embedding sustainability into product design, reducing
raw material extraction, and enhancing product recyclability.
Further, we actively contribute to maximizing recirculation and minimizing waste:
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• Recyclable merchandise: our packaging products, including boxes and tape, are designed to be
recyclable. The corrugated cardboard we use can re-enter the supply chain as raw material for new
products.
• Biodegradable materials: products like our corrugated cardboard packaging are biodegradable, ensuring
that even if they do not get recycled, their environmental footprint is minimized.
• Supplier practices: our supplier integrates circular economy principles into their operations by using
recycled inputs and ensuring their packaging can be fully recycled or biodegraded, further promoting
material recirculation.
Through these actions, we not only enhance the recirculation of materials used in our merchandise but also
contribute to reducing overall waste and supporting the broader transition to a circular economy.
As part of our efforts to know how the pre-consumed waste is managed, we prognosed an estimated scenario
based on the latest available average waste treatment in the European Union.
Weight,
tonnes
Recycling,
tonnes
Incineration,
tonnes
Landfill,
tonnes
Paper 178 124 27 27
Steel 35 24 5 5
Plastic 6 4 1 1
DIG
ITALIZATION
Shurgard is engaged in numerous digitalization initiatives that impact the
consumption of natural resources.
We are using e-rental contracts, electronic billing, and we are offering online customer portals and apps to
minimize the use of paper in daily operations. We are also controlling the access to our stores with an app or
code, reducing the need for physical locks and keys.
The introduction of our new operating model, working with remotely managed stores, allows us to minimize
waste, resource use and commuting to the store.
Finally, Shurgard has implemented a homeworking policy, reducing employee commuting to the offices.
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4.5 OUR “SUSTAINABLE SELF STORAGE” FUTURE COMMITMENTS
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4.6 EU TAXONOMY
EU TAXONOMY PERFORMANCE SUMMARY
Compared to the previous year, we were able to increase our aligned EU taxonomy turnover. This is mainly driven
by the increasing number of our stores meeting the technical screening criteria of the climate change mitigation
objective. This was supported by a higher proportion of stores with EPC A or A+ (70%), the green investments
(c. €6 million) such as heat pumps, LED or solar panels, and the roll out of our building management system
(BMS) in Belgium and France.
By contrast, our EU Taxonomy CapEx alignment has been negatively affected by our major acquisitions in UK.
While the portfolio is recent and purpose-built, with strong EPC’s, most of the assets are large non-residential
buildings (>5,000sqm) that need to be operated through a BMS which has not been rolled out (yet) in these
stores.
Our EU Taxonomy OpEx alignment also increased slightly, reaching 27.3% for the year 2024. This is 2.8pp higher
than the prior year, mainly driven by the higher proportion of our stores that are considered as “green” by the
taxonomy and the higher proportion of eligible expenses (from 73.0% in 2023 to 75.3% in 2024) related to the
repair and maintenance.
EU TAXONOMY OBJECTIVES
The European Union (“EU”) is aiming to address the sustainability-related challenges through ambitious
environmental objectives. As part of these activities, the EU Taxonomy has been issued. This establishes a
common understanding of green economic activities that make a substantial contribution to the environmental
goals of the EU, by providing consistent and objective criteria to classify and list activities that are
environmentally sustainable. The EU Taxonomy aims to provide companies, investors, and policymakers with
appropriate definitions to objectively measure how sustainable a company is, enabling comparability and helping
direct investments towards sustainable projects.
The EU Taxonomy defined six environmental objectives:
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.
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
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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 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
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.
SHURGARD ANNUAL REPORT 2024
97
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 some cases, we cannot reliably obtain the required evidence at the time of this report that a specific activity
is meeting the TSC’s. 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 2024, 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 2024, Shurgard continued to replace old lighting bulbs with energy efficient
LEDs in its recently acquired stores and further invested 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, regulating and
controlling energy performance of buildings:
During 2024, Shurgard incurred costs for the installation or maintenance of its building management
system in Belgium and France, in order 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 consumption. These investments are
aligned with climate change mitigation TSC’s.
• 7.6 Installation, maintenance and repair of renewable energy technologies:
Throughout 2024, Shurgard invested in the installation of renewable energy technologies, usually through
the roll out of 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 requires 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
SHURGARD ANNUAL REPORT 2024
98
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 2024, 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 KPIs
aligned
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.
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
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 to ensure 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 2024 that would comply with the
definition and applicable requirements for major renovations, we concluded that no alignment is expected on
these new environmental objectives.
SHURGARD ANNUAL REPORT 2024
99
Do No 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 2024, 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 were 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
Considering the nature of the self-storage industry, along with the countries we are active in and our key clients
and suppliers, the likelihood of Shurgard violating fundamental human and labor rights as outlined by the United
Nations, the International Labor Organization, and the OECD is assessed to be low. Shurgard has established
policies and implemented processes to ensure high ethical standards in its business practices, including an
effective whistleblowing system and existing communication channels with both internal and external
stakeholders.
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. To strengthen the oversight of Shurgard over the minimum social safeguards and human rights, we
updated our Human Rights Policy in 2024.
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.
As a signee of the UN Global Compact since January 2022, we align our ESG strategy with the universal principles
on human rights, labor, environment, and anti-corruption. We monitor our existing policies for updates and make
sure that our ESG agenda tackles these topics.
Additionally, we participate in the Global Reporting Initiative (“GRI”), making annual disclosures on our business
practices, where an organization's most significant impacts on the economy, environment, and people, including
impacts on their human rights are represented.
We have established adequate due diligence processes that allow us to monitor that all third-party agreements
have clauses relating to anti-bribery, human rights, and modern slavery, among other topics. In addition, we
inquire about the business practices of our suppliers on a regular basis, to ensure they align with our principles.
Finally, Shurgard also developed strong policies related to fair competition and taxation and promotes employee
awareness as well as training covering the importance of compliance with all applicable competition and tax
laws.
Based on the above, we concluded that the Company has adequate processes in place as required by the
minimum safeguards, and that no instances of non-compliance were identified or reported. Our business
activities are aligned with the minimum safeguard requirements stated in the EU Taxonomy.
SHURGARD ANNUAL REPORT 2024
100
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 eligible, as currently covered by the first Delegated Act. The EU Taxonomy turnover corresponds to
the real estate operating revenue, as per IFRS 4. The turnover increased from €357.9 million in 2023 to
€406.5 million, mainly as result of higher rental and insurance revenue resulting from the portfolio expansion
and rate increases.
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 turnover 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.
SHURGARD ANNUAL REPORT 2024
101
Total EU taxonomy turnover is €406.5 million, of which €155.9 million is aligned (38.5%), €25.4 million is eligible
but not aligned and €45.3 million is not eligible. All of the EU Taxonomy-aligned revenue is coming from its
substantial contribution to Climate Change Mitigation. The aligned proportion strongly increased compared to
last year (from 29.5% in 2023 to 38.3% in 2024), resulting from the higher proportion of stores with strong
energy performance, our green investments, such as LED, heat pump or solar, and the roll out of a BMS in Belgium
and the Netherlands.
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. We did not include any
CapEx Plan in the 2023 or 2024 CapEx figures.
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 2024, the
total CapEx considered for EU Taxonomy amounts to €1,005.9 million and consists of the 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 98.9% of the EU Taxonomy CapEx is eligible. The non-eligible activities relate to the
acquisition of intangible assets (mainly software capitalized costs and IT developments) and the PP&E additions
related to equipment and other assets.
Financial year 2024
Economic activities
Code
Turnover ('000€)
Proportion of Turnover, year
2024 (%)
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Minimum safeguards
Proportion
of
Taxonomy-
aligned or
eligible
Turnover,
year 2023
Category enabling activity
Category transitional activity
A. Taxonomy Eligible activities 361,225 88.9% 88.1%
Acquisition and ownership of buildings 7.7 155,853 38.3% Y N N N N N N Y Y
N/A
N/A
N/A
N/A
N/A
Y 29.6%
A.1 Taxonomy Aligned activities 155,853 38.3% 38.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 29.6%
of which enabling 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 0.0% E
of which transitional 0 0.0% Y Y Y Y Y Y Y Y 0.0% T
Acquisition and ownership of buildings 7.7 205,372 50.5% N N N N N N N 58.5%
A.2 Taxonomy non-Aligned activities 205,372 50.5% 58.5%
B. Taxonomy non-Eligible activities 45,278 11.1%
Insurance revenue 37,961 9.3% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
Ancillary revenue, excl. other real
estate revenue
7,494 1.8% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
Other revenue -177 0.0% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
A+B Total Turnover 406,503 100.0%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
2024
Substantial contribution
Do not significant harm
SHURGARD ANNUAL REPORT 2024
102
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”. 2.9% of our CapEx was
assessed to be aligned with the Climate Change Mitigation objective.
Despite the €6.0 million invested in the installation and maintenance of energy efficient equipment, charging
stations for electric vehicles and renewable energy, our aligned CapEx percentage decreased significantly. This
is due to our major acquisitions in UK. While the portfolio is recent and purpose-built, with strong EPC’s, most
of the assets are large non-residential buildings (>5,000sqm) that need to be operated through a building
management system, that has not been rolled out (yet) in these stores.
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:
Financial year 2024
Economic activities
Code
CapEx ('000€)
Proportion of CapEx, year
2024 (%)
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Minimum safeguards
Proportion
of
Taxonomy-
aligned or
eligible
CapEx,
year 2023
Category enabling activity
Category transitional activity
A. Taxonomy Eligible activities 994,944 98.9% 97.8%
Installation, maintenance and repair of
energy efficiency equipment
7.3 2,454 0.2% Y N N N N N N Y Y Y 3.0% E
Installation, maintenance and repair of
charging stations for electric vehicles
7.4 289 0.0% Y N N N N N N Y Y 0.0% E
Installation, maintenance and repair of
renewable energy technologies
7.6 3,284 0.3% Y N N N N N N Y Y 0.1% E
Acquisition and ownership of buildings 7.7 22,917 2.3% Y N N N N N N Y Y Y 12.5%
A.1 Taxonomy Aligned activities 28,942 2.9% 2.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 15.6%
of which enabling 6,026 0.6% 0.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 3.1% E
of which transitional 0 0.0% Y Y Y Y Y Y Y Y 0.0% T
Acquisition and ownership of buildings 7.7 966,001 96.0% N N N N N N N 82.2%
A.2 Taxonomy non-Aligned activities 966,001 96.0% 82.2%
B. Taxonomy non-Eligible activities 10,925 1.1%
Additions of intangible assets related
to IT software and IT development
8,945 0.9% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
Additions of PP&E related to
equipment & company cars
1,980 0.2% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
A+B Total CapEx 1,005,869 100.0%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
2024
Do not significant harm
Substantial contribution
SHURGARD ANNUAL REPORT 2024
103
Our EU Taxonomy OpEx increased slightly, from €17.5 million in 2023 to €19.8 million in 2024. This is driven by
higher payroll expenses (+€0.2 million), higher repair and maintenance expenses on our stores (+€0.8 million)
and other operating expenses meeting the EU taxonomy OpEX definition (+€1.2 million, driven by larger
information system and legal and consultant expenses).
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
compensation, 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 for 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.
Financial year 2024
Economic activities
Code
OpEx ('000€)
Proportion of OpEx, year
2024 (%)
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Climate change mitigation
Climate change adaptation
Water
Circular economy
Pollution
Circular Economy
Biodiveristy
Minimum safeguards
Proportion
of
Taxonomy-
aligned or
eligible
OpEx, year
2023
Category enabling activity
Category transitional activity
A. Taxonomy Eligible activities 14,896 75.3% 73.0%
Acquisition and ownership of buildings 7.7 5,408 27.3% Y N N N N N N Y Y 24.7%
A.1 Taxonomy Aligned activities 5,408 27.3% 27.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 24.7%
of which enabling 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y Y 0.0% E
of which transitional 0 0.0% Y Y Y Y Y Y Y Y 0.0% T
Acquisition and ownership of buildings 7.7 9,488 47.9% N N N N N N N 48.3%
A.2 Taxonomy non-Aligned activities 9,488 47.9% 48.3%
B. Taxonomy non-Eligible activities 4,894 24.7%
OpEx related to miscellaneous
activities
1,366 6.9% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
OpEx related to our intangible assets,
IT equipment and datacenter
3,528 17.8% N/EL N/EL N/EL N/EL N/EL N/EL N/EL
A+B Total OpEx 19,790 100.0%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
2024
Substantial contribution
Do not significant harm
SHURGARD ANNUAL REPORT 2024
104
Based on the above, we concluded that 75.3% 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. 27.3% of our OpEx was assessed as aligned with the
Climate Change Mitigation objective. This is 2.8pp higher than the prior year, mainly driven by the higher
proportion of our stores that are considered as “green” by the taxonomy and the higher proportion of eligible
expenses (from 73.0% in 2023 to 75.3% in 2024) related to their repair and maintenance.
NUCLEAR AND FOSSIL GAS ACTIVITIES
Shurgard does not engage in, fund, or have exposures to activities related to nuclear energy or fossil gas, as
outlined in Appendix XII of the EU Taxonomy Delegated Acts. As a self storage REIT, these activities are not
relevant to our business operations. Therefore, we report no eligible or aligned activities under these categories.
RESOURCE AVAILABILITY AND FINANCIAL CONSIDERATIONS FOR IMPLEMENTATION
Our ability to implement sustainability actions, including energy efficiency improvements and renewable energy
investments, depends on the availability of financial resources and access to affordable capital. Financing
mechanisms, such as sustainability-linked loans, support our transition efforts, while macroeconomic conditions
and interest rates influence the timing of investments. Additionally, acquisitions of existing storage facilities may
require further capital allocation to align with our ESG goals. Balancing financial performance with sustainability
commitments remains a key priority in our investment strategy.
OBJECTIVES OR PLANS TO INCREASE THE ALIGNMENT WITH EU TAXONOMY
Shurgard does not have specific targets or objectives in terms of EU taxonomy CapEx, OpEx or Revenues KPI’s.
However, we are committed to maximizing the alignment of our economic activities with the various EU
Taxonomy objectives.
We expect the following plans and actions to increase the alignment with EU Taxonomy:
EU taxonomy
KPI
Plans / Actions to increase alignment Reference
CapEx
• We are committed to replace gas-heating in our stores with energy
efficient alternatives like heat pumps, with a pace of at least 15 stores
per year up to 2029. These investments are expected to be aligned.
• We launched our solar project and plan to equip 75 stores and our
European Support Center (in UK, the Netherlands and Belgium) with
solar panels, mainly in 2025. This CapEx is expected to be aligned.
• We are increasing the pace of the roll out of our Building Management
System. We have already equipped more than 100 stores and target a
completion of our entire portfolio in the first half of 2025. The related
CapEx is expected to be aligned.
4.1 Transition
to low-carbon
economy
OpEx &
Revenue
We are committed to replace gas-
heating in our stores with energy
efficient alternatives and to roll out a BMS. This should allow us to align
more stores with the EU taxonomy technical screening criteria on the
climate change mitigation objective and hence increasing OpEx and
Revenue KPI’s.
4.1 Transition
to low-carbon
economy
SHURGARD ANNUAL REPORT 2024
105
4.7 ESRS, EPRA & GRI ENVIRONMENTAL 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
Standar
d
EPRA sBPR
Measure
ESRS ENVIRONMENTAL PERFORMANCE MEASURES
Storage
assets
Own
offices
Pages
302
Elec-Abs
E1
Total electricity consumption
V
V
107, 108
302
Elec-LfL
E1
Like-for-like total electricity consumption
V
V
107, 108
302
DH&C-Abs
E1
Total district heating & cooling consumption
V
N/A
109, 110
302 DH&C-LfL E1
Like-for-like total district heating & cooling
consumption
V N/A 109, 110
302
Fuels-Abs
E1
Total fuel consumption
V
N/A
109, 110
302
Fuels-LfL
E1
Like-for-like total fuel consumption
V
N/A
109, 110
302
Energy-Int
E1
Building energy intensity
V
111
305
GHG-Dir-
Abs
E1 Total direct greenhouse gas (GHG) emissions V N/A 112, 113
305
GHG-Indir-
Abs
E1
Total indirect greenhouse gas (GHG)
emissions
V V 112, 113
305 GHG-Int E1
Greenhouse gas (GHG) intensity from
building energy consumption
V V 114
303
Water-Abs
/
Total water consumption
V
V
115, 116
303
Water-LfL
/
Like-for-like total water consumption
V
V
115, 116
303
Water-Int
/
Building water intensity
V
V
115, 116
306
Waste-Abs
E5
Total weight of waste by disposal route
V
V
117, 118, 119
306 Waste-LfL E5
Like-for-like total weight of waste by
disposal route
V V 117, 118, 119
N/A Cert-Tot E1
Type and number of sustainably certified
assets
V
120, 121
Fully reported: “V”
ESRS non-material voluntary disclosure: “/”
Not reported: “X”
Not applicable: “N/A”
SHURGARD ANNUAL REPORT 2024
106
Methodology
ESRS non-material voluntary disclosure
We have reported on all EPRA Sustainability Performance Measures, using the EPRA Best Practices
Recommendations on Sustainability Reporting 4th 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 UK Government’s Conversion Factors for Company Reporting.
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 tonnes 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, 2023 to
December 31, 2024, for which we have at least two full quarters of actual data in each year. 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 2024 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.
SHURGARD ANNUAL REPORT 2024
107
ENVIRONMENTAL PERFORMANCE MEASURES
Electricity - own assets
Third-
party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance
(Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024
%
change
302-1
Elec-Abs,
Elec-LfL
MWh Electricity
for landlord shared services
Yes,
AA1000
&
ISAE3000
0 0
0 0 0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained electricity 17,253 18,989 17,099 16,064 -6%
Total tenant-obtained electricity
0
0
0
0
0%
Total electricity 17,253 18,989 17,099 16,064 -6%
Proportion of landlord obtained
electricity from renewable sources
100% 100%
Quantity of landlord obtained
electricity from renewable sources
17,253 18,989
%
Proportion of landlord
obtained electricity by source:
Solar Photovoltaic 16% 16%
Wind turbine
37%
42%
Nuclear
33%
30%
Hydroelectric technology
14%
12%
Coal
0%
0%
MWh
Quantity of landlord obtained
electricity by source:
Solar Photovoltaic
2,703
3,051
Wind turbine
6,451
7,920
Nuclear
5,632
5,656
Hydroelectric technology
2,468
2,362
Coal
0
0
No. applicable properties
Energy disclosure coverage
285
319
279
sqm of applicable properties
2,163,194
2,415,547
2,131,958
%
Proportion of electricity estimated
5%
31%
SHURGARD ANNUAL REPORT 2024
108
Electricity - own office
Third-
party
assured?
Own offices
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance
(Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024
%
change
302-1
Elec-
Abs,
Elec-LfL
MWh Electricity
for landlord shared services
Yes,
AA1000 &
ISAE3000
0 0
0 0 0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained electricity
85
34
85
34
-60%
Total tenant-obtained electricity
0
0
0
0
0%
Total electricity
85
34
85
34
-60%
Proportion of landlord obtained
electricity from renewable sources
100% 100%
Quantity of landlord obtained
electricity from renewable sources
85 34
%
Proportion of landlord
obtained electricity by
source:
Solar Photovoltaic 27% 27%
Wind turbine
13%
13%
Nuclear
57%
57%
Hydroelectric technology 4% 4%
Coal
0%
0%
MWh
Quantity of landlord
obtained electricity by
source:
5
Solar Photovoltaic 23 9
Wind turbine
11
4
Nuclear
48
19
Hydroelectric technology
3
1
Coal
0
0
No. applicable properties
Energy disclosure coverage
1 1 1
sqm of applicable properties 5,529 5,529 5,529
%
Proportion of electricity estimated
0%
0%
Data notes for electricity: All reported energy totals are in MWh. We have been able to report electricity consumption for 286 assets (2023) ad 320 assets (2024) for absolute
data, whereas LfL consumption covers 280 assets. Please note that Shurgard does not have any tenants, so tenant consumption is zero. Narrative on performance for electricity:
Total Shurgard obtained electricity for stores has decreased by 6%, reflecting the effect of our roll-out of energy efficiency measures such as our LED program, and the BMS
installed in our stores in Belgium and the Netherlands. The LfL decrease is mainly marked France (-10%), the Netherlands (-10%) and Sweden. 100% of our electricity comes from
renewable sources.
5
*Our company procures 100% of its landlord-obtained electricity from renewable sources, as verified by Renewable Energy Guarantees of Origin (REGOs). This ensures that our electricity consumption is matched with renewable energy production. The
presence of nuclear energy in the mix does not imply that our company directly purchases nuclear-generated electricity. It reflects the general composition of the electricity grid in our region, independent of our renewable energy procurement efforts.
SHURGARD ANNUAL REPORT 2024
109
District Heating and Fuels - own assets
Third-
party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance
(Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024
%
change
302-1
DH&C-
Abs,
DH&C-
LfL
MWh District heating and cooling
for landlord shared services
Yes,
AA1000 &
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained district heating and
cooling
2,546 2,999 2,546 2,999 18%
Total tenant-obtained district heating and
cooling
0 0 0 0 0%
Total heating and cooling
2,546
2,999
2,546
2,999
18%
Proportion of landlord obtained district
heating and cooling from renewable sources
0% 0%
%
Proportion of landlord obtained
heating and cooling by source
Geothermal
-
-
Bioenergy: Biogas
-
-
MWh
Quantity of landlord obtained
heating and cooling by source
Geothermal
-
-
Bioenergy: Biogas
-
-
No. applicable properties
Heating and cooling disclosure coverage
42
42
36
sqm of applicable properties
329,718
329,718
281,574
%
Proportion of heating and cooling estimated
0.00%
55.74%
302-1
Fuels-
Abs,
Fuels-
LfL
MWh Fuels
for landlord shared services
Yes,
AA1000 &
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained fuels
4,213
7,524
3,916
5,196
33%
Total tenant-obtained fuels
0
0
0
0
0%
Total fuel
4,213
7,524
3,916
5,196
33%
Proportion of landlord-obtained fuels from
renewable sources
56% 86%
%
Proportion of landlord obtained
fuel by source
Natural Gas
44%
14%
Bioenergy
0.0%
0.0%
MWh
Quantities of landlord obtained
fuels by source
Natural Gas
1,863
1,060
Bioenergy
2,350
6,463
No. applicable properties
Fuel disclosure coverage
170
204
164
sqm of applicable properties
1,288,701
1,545,281
1,261,692
%
Proportion of fuel estimated
29%
87%
SHURGARD ANNUAL REPORT 2024
110
District Heating and Fuels - own office
Third-
party
assured?
Own offices
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
302-1
DH&C-
Abs,
DH&C-
LfL
MWh District heating and cooling
for landlord shared services
Yes,
AA1000 &
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained district
heating and cooling
0 0 0 0 0%
Total tenant-obtained district
heating and cooling
0 0 0 0 0%
Total heating and cooling
0
0
0
0
0%
Proportion of landlord obtained
district heating and cooling from
renewable sources
- -
%
Proportion of landlord obtained
heating and cooling by source
Geothermal
-
-
Bioenergy: Biogas
-
-
MWh
Quantity of landlord obtained
heating and cooling by source
Geothermal
-
-
Bioenergy: Biogas
-
-
No. applicable properties
Heating and cooling disclosure
coverage
0
0
0
sqm of applicable properties
0
0
0
%
Proportion of heating and cooling
estimated
- -
302-1
Fuels-
Abs,
Fuels-
LfL
MWh Fuels
for landlord shared services
Yes,
AA1000 &
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained fuels
0
0
0
0
0%
Total tenant-obtained fuels
0
0
0
0
0%
Total fuel
0
0
0
0
0%
Proportion of landlord-obtained fuels
from renewable sources
- -
%
Proportion of landlord obtained
fuel by source
Natural Gas
-
-
Bioenergy
0.0%
0.0%
MWh
Quantities of landlord obtained
fuels by source
Natural Gas
0
0
Bioenergy
0.00
0.00
No. applicable properties
Fuel disclosure coverage
0
0
0
sqm of applicable properties
0
0
0
%
Proportion of fuel estimated
-
-
SHURGARD ANNUAL REPORT 2024
111
Data notes for district heating and fuels: All reported energy totals are in MWh. We have been able to report district heating consumption for 42 assets (both 2023 and 2024)
and gas consumption for 170 and 204 assets respectively in 2023 and 2024 for absolute data. In terms of Lfl, we covered 36 assets for district heating and 164 for gas. Please note
that Shurgard does not have any tenants, so tenant consumption is zero.
Narrative on district heating and fuels: Our LfL total district heating and fuel consumption increased by 18% and 33%
respectively, mainly driven by a colder winter than previous
year and conservative gas consumption estimates in Germany. The proportion of fuels from renewable sources increased from 56% in 2023 to 86% in 2024, mainly driven by the
higher consumption mix in Germany and the Netherlands where we obtain fuels backed by green certificates.
Energy intensity – own assets & own office
Third-party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of measure
Indicator
Category
Absolute performance (Abs)
2023 2024
302-3 Energy-Int
kWh/ sqm/
year
Energy Intensity Landlord-obtained energy
Yes, AA1000
& ISAE3000
11.1 12.2
kWh/ revenue
(€)/year
0.07 0.07
Third-party
assured?
Own offices
GRI
Code
EPRA
Code
Unites of measure
Indicator
Category
Absolute performance (Abs)
2023 2024
302-3
Energy-
Int
kWh/ sqm/
year
Energy Intensity Landlord-obtained energy
Yes, AA1000
& ISAE3000
15.5 6.2
kWh/ revenue
(€)/year
0.09 0.03
Data notes for energy intensity: Energy intensity is measured as Kwh/sqm GIA/year and Kwh/revenue in EUR/year. Please note that Shurgard does not have any tenants, so
tenant energy intensity is zero.
Narrative on energy intensity: Our energy intensity increased slightly in 2024, from 11.1 Kwh/sqm/year to 12.2 Kwh/sqm/year in 2024. This is mainly driven by the gas
consumption for recently acquired stores, mainly in Germany, partly offset by our energy consumption reduction initiatives.
SHURGARD ANNUAL REPORT 2024
112
GHG direct and indirect emissions – own assets
Third-party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance (Abs)
2023 2024
305-1
GHG-Dir-
Abs
tCO
2e
Direct
Total Direct Scope 1
Yes, AA1000
& ISAE3000
771 1,376
Natural Gas
341
194
Bioenergy 430 1,182
305-2
GHG-
Indir-Abs
Indirect (Scope 2)
Total Indirect Scope 2 Market based
639
752
Scope 2 Electricity 0 0
Bioenergy 0 0
Local District Heating 639 752
Total Indirect Scope 2 Location based
3,520
4,380
Scope 2 Electricity 2,881 3,627
Local District Heating
639
752
305-3
GHG-
Indir-Abs
Indirect (Scope 3)
Total Scope 3 (*) - 399,060
Electricity sub-metered to occupiers
0
0
Outside
of scopes
Direct Bioenergy: Wood pellets - -
Direct
Bioenergy: Biopropane
-
-
Indirect Bioenergy: Biogas - -
Total
Scope 1 + Scope 2 (location based)
4,291
5,756
Scope 1 + Scope 2 (market based) 1,409 2,129
Scope 1 + Scope 2 (location based) + Scope 3 (*)
4,291
404,816
Scope 1 + Scope 2 (market based) + Scope 3 (*) 1,409 401,189
%
Proportion of Scope 1 + Scope 2 (location based) estimated
11%
55%
(*) note that Scope 3 information has only been calculated from 2024. As such, 2023 and 2024 are not fully comparable when looking at total Scope 1-2-3 emissions. All Scope 3
emissions have been allocated to our own assets.
SHURGARD ANNUAL REPORT 2024
113
GHG direct and indirect emissions – own office
Own offices
GRI
Code
EPRA Code
Unites of
measure
Indicator
Category
Third-party
assured?
Absolute performance (Abs)
305-
1
GHG-Dir-
Abs
tCO
2e
Direct
Total Direct Scope 1
Yes, AA1000
& ISAE3000
0 0
Natural Gas
0
0
Bioenergy
0
0
305-
2
GHG-Indir-
Abs
Indirect (Scope 2)
Total Indirect Scope 2 Market based 0 0
Scope 2 Electricity 0 0
Bioenergy: biogas
Local District Heating
0
0
Total Indirect Scope 2 Location based
6
5
Scope 2 Electricity 13 5
Local District Heating
0
0
305-
3
GHG-Indir-
Abs
Indirect (Scope 3)
Total Scope 3 (*) 0 0
Electricity sub-metered to occupiers
0
0
Outside of
scopes
Direct Bioenergy: Wood pellets - -
Direct Bioenergy: Biopropane - -
Indirect
Bioenergy: Biogas
-
-
Total
Scope 1 + Scope 2 (location based)
6
5
Scope 1 + Scope 2 (market based)
0
0
Scope 1 + Scope 2 (location based) + Scope 3 (*) 6 5
Scope 1 + Scope 2 (market based) + Scope 3 (*)
0
0
% Proportion of Scope 1 + Scope 2 (location based) estimated 0% 0%
(*) note that Scope 3 information has only been calculated from 2024. As such, 2023 and 2024 are not fully comparable when looking at total Scope 1-2-3 emissions. All Scope 3
emissions have been allocated to our own assets.
Data notes for GHG emissions: GHG emissions are measured in tonnes of CO
2 equivalents. Note that Shurgard does not have any tenants, so Scope 3 emissions linked to
tenants is zero.
Narrative on performance for GHG emissions: Our location-based Scope 1 and 2 emissions increased from 4,297 tCO2e e in 2023 to 5,761 tCO2e in 2024. This is mainly driven by
the growth of our portfolio. By contrast, and despite the opening of new stores, our market-based emissions decreased by 3% thanks to the lower gas and district heating
consumption in France, UK, and Belgium, where gas and district heating is not generated from renewable sources.
SHURGARD ANNUAL REPORT 2024
114
GHG intensity and coverage – own assets
Third-
party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
305-
4
GHG-Int
kgCO2e/ sqm/year
GHG emission
intensity
Scope 1 and 2 emissions (location
based)
Yes,
AA1000 &
ISAE3000
1.98 2.38
kgCO2e/ revenue/year 12.03 16.13
kgCO2e/ sqm/year
Scope 1 and 2 emissions (market
based)
0.65 0.88
kgCO2e/ revenue/year 3.95 5.24
No. applicable properties
GHG disclosure coverage
285
319
279
sqm of applicable properties
2,163,194
2,415,547
2,131,958
GHG intensity and coverage – own office
Third-
party
assured?
Own offices
GRI
Code
EPRA
Code
Unites of measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
305-
4
GHG-
Int
kgCO
2e/ sqm/year
GHG emission
intensity
Scope 1 and 2 emissions (location
based)
Yes,
AA1000 &
ISAE3000
1.03 0.91
kgCO2e/ revenue/year 6.03 5.36
kgCO2e/ sqm/year
Scope 1 and 2 emissions (market
based)
- -
kgCO
2
e/ revenue/year
-
-
No. applicable properties
GHG disclosure coverage
1
1
1
sqm of applicable properties
5,529
5,529
5,529
Data notes for GHG intensity: GHG intensity is expressed in kilos of CO2 equivalents per sqm GIA per year and kilos of CO2 equivalents per revenue in EUR per year. Note that
Shurgard does not have any tenants, so emissions are nil.
Narrative on performance for GHG intensity: Our location-based GHG intensity increased from 1.98 kgCO2e/sqm/year in 2023 to 2.38 kgCO2e /sqm/year in 2024. This was mainly
driven by the new assets acquired in Germany and UK, where we consumed and estimated more fuels and district heating consumption than for our existing portfolio. With the
support of our purchased fuels from renewable sources, we have been able to actually lower our Scope 1 & 2 intensity from 0.45 kgCO
2e/sqm/year in 2023 to 0.39 kgCO2e/sqm/year
in 2024.
SHURGARD ANNUAL REPORT 2024
115
Water Measures – own assets
ESRS non-material voluntary disclosure
Third-
party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
303-
5
Water-
Abs
Water-
LfL
m3/year Water
for landlord shared services
Yes,
AA1000
&
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained water
23,851
21,149
21,642
15,178
-30%
Total tenant-obtained water
0
0
0
0
0%
Total water
23,851
21,149
21,642
15,178
-30%
m3/year
Total volume
of water
withdrawn by
source
Surface water, sourced from
wetlands, rivers, lakes, and oceans
0 0
Ground Water
0
0
Rainwater collected directly and
stored by the reporting organization
0 0
Waste water from another
organization
0 0
Municipal water supplies or other
public or private utilities
23,851 21,149
303-
5
Water-
Int
m3/
revenue/
year
Water intensity Landlord obtained water
0 0
m3/ sqm/
year
0 0
0 0 -30%
No. applicable properties
Water disclosure coverage
285
319
279
sqm of applicable properties
2,163,194
2,415,547
2,131,958
%
Proportion of water estimated
30%
50%
29%
42%
48%
SHURGARD ANNUAL REPORT 2024
116
Water Measures – own office
ESRS non-material voluntary disclosure
Third-
party
assured?
Own offices
GRI Code
EPRA
Code
Unites of measure
Indicator
Category
Absolute performance
(Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
303-5
Water-
Abs
Water-
LfL
m3/year Water
for landlord shared services
Yes,
AA1000 &
ISAE3000
0
0
0
0
0%
(sub)metered exclusively to tenants
0
0
0
0
0%
Total landlord-obtained water
60
61
60
61
1%
Total tenant-obtained water
0
0
0
0
0%
Total water
60
61
60
61
1%
m3/year
Total volume of water
withdrawn by source
Surface water, sourced from
wetlands, rivers, lakes, and oceans
0 0
Ground Water
0
0
Rainwater collected directly and
stored by the reporting organization
0 0
Waste water from another
organization
0 0
Municipal water supplies or other
public or private utilities
60 61
303-5
Water-
Int
m3/ revenue/ year
Water intensity Landlord obtained water
0 0
m3/ sqm/ year 0 0 0 0 1%
No. applicable properties
Water disclosure coverage
1
1
1
sqm of applicable properties
5,529
5,529
5,529
%
Proportion of water estimated
0%
0%
0%
0%
0%
Data notes for 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 320
properties (all) for absolute measures and 280 on a LfL basis. 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 2024 (-30% on a LfL basis), which is partly explained by the lower proportion of assets that are staffed as well
as the water leak detection system that we implemented across a very large portion of our assets in 2023 and 2024.
SHURGARD ANNUAL REPORT 2024
117
Waste Measures – Own assets
EPRA Sustainability Performance Measures (Environment)
Third-
party
assured?
Own assets
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023 2024 2023 2024 % change
306-
3
306-
4
306-
5
Waste-
Abs,
Waste-
LfL
Tonnes
Total weight of waste generated
Hazardous or radioactive waste
Yes,
AA
1000 &
ISAE3000
0 0
0 0 0%
Non-hazardous waste 850 955 850 892 5%
Total weight of waste generated
via disposal and diversion route
Recycled
195
219
195
197
1%
Landfill
0
0
0
0
0%
Incinerator
656
736
655
695
6%
Composting
0
0
0
0
0%
Composition of total weight of
waste generated
Paper
182
182
185
184
-1%
Metals & Plastics
13
37
9
13
41%
Glass
0
0
0
0
0%
Mixed municipal 656 736 655 695 6%
Food waste 0 0 0 0 0%
%
Proportion of total weight of waste
generated
Hazardous or radioactive waste 0% 0% 0% 0% 0%
Non-hazardous waste
100%
100%
100%
100%
Proportion waste generated via
disposal and diversion route
Recycled
23%
23%
23%
22%
Landfill
0%
0%
0%
0%
Incinerator
77%
77%
77%
78%
Composting
0%
0%
0%
0%
Composition of total waste
generated
Paper
21%
19%
22%
21%
Metals & Plastics
2%
4%
1%
1%
Glass 0% 0% 0% 0%
Mixed municipal 77% 77% 77% 78%
Food waste 0% 0% 0% 0%
No. of applicable properties
Waste disclosure coverage
274
320
270
sqm. of applicable properties
2,029,470
2,274,267
2,018,169
%
Proportion of waste estimated
0%
25%
SHURGARD ANNUAL REPORT 2024
118
Waste Measures – Own offices
Third-party
assured?
Own offices
GRI
Code
EPRA
Code
Unites of
measure
Indicator
Category
Absolute performance (Abs)
Like-for-Like performance (LfL)
2023
2024
2023
2024
% change
306-
3
306-
4
306-
5
Waste-
Abs,
Waste-
LfL
Tonnes
Total weight of waste
generated
Hazardous or radioactive waste
Yes, AA1000 &
ISAE3000
0
0
0
0
0%
Non-hazardous waste
9
6
7
6
-13%
Total weight of waste
generated via disposal
and diversion route
Recycled 5 4 5 4 -21%
Landfill
0
0
0
0
0%
Incinerator
4
3
3
3
0%
Composting 0 0 0 0 0%
Composition of total
weight of waste
generated
Paper 4 3 4 3 -14%
Metals & Plastics
1
1
1
1
-43%
Glass
0
0
0
0
0%
Mixed municipal 4 3 3 3 0%
Food waste
0
0
0
0
0%
%
Proportion of total
weight of waste
generated
Hazardous or radioactive waste
0%
0%
0%
0%
0%
Non-hazardous waste 100% 100% 100% 100%
Proportion waste
generated via disposal
and diversion route
Recycled
57%
57%
62%
57%
Landfill 0% 0% 0% 0%
Incinerator
43%
43%
38%
43%
Composting
0%
0%
0%
0%
Composition of total
waste generated
Paper 42% 47% 48% 47%
Metals & Plastics 15% 9% 14% 9%
Glass
0%
0%
0%
0%
Mixed municipal
43%
43%
38%
43%
Food waste 0% 0% 0% 0%
No. of applicable properties
Waste disclosure coverage
2
2
1
sqm. of applicable properties
1,652
1,652
1,652
% Proportion of waste estimated 0% 24%
Data notes for waste: All waste totals are reported in tonnes. Please note that Shurgard does not have any tenants, so tenant waste is zero.
SHURGARD ANNUAL REPORT 2024
119
Narrative on performance for absolute waste: Waste data is gathered for all properties in the portfolio (320 in 2024 vs. 274 in 2023) where Shurgard has waste management
contracts. Absolute waste has increased by 12%, explained by the larger portfolio. On a LfL basis (270 stores), the increase is 5%, largely driven by recycled plastics & metals.
Overall the portion of waste being recycled remained stable at 23%.
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Type and number of sustainably Certified Assets
2024
2023
GRI Topic
Standard
EPRA
sBPR Code
Certification Level
No. of Certified
Stores
Percentage of portfolio
certified (by floor area)
No. of Certified
Sto
res
Percentage of
portfolio certified (by
floor area)
N/A Cert-Tot
EU Energy Performance Certificate
309 97.3 253 90.7%
BREEAM - In Use
Pass
13 4.5% 13 5.1%
Acceptable
1 0.3% 1 0.3%
Good
29 9.0% 29 10.2%
Very Good
7 2.4% 6 2.4%
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
6 2.5% 4 1.6%
Excellent
8 3.6% 7 3.5%
Outstanding
1 0.4% 1 0.5%
EU ENERGY PERFORMANCE CERTIFICATES 2024
EPC Score A B C D E F G
N/A
Number of Assets 221 30 37 16 6 1 0
7
% of portfolio (by floor
area)
70.3% 10.0% 11.3% 4.4% 1.6% 0.2% 0.0% 2.1%
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 a 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.
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121
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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5. SOCIAL INFORMATION
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 talent through training, feedback, internal
mobility, promotion opportunities as well as a dynamic and fair remuneration policy.
Shurgard sets annual targets for employee engagement, diversity, training, and well-being as part of our strategic
workforce planning. These targets are informed by our materiality assessment, employee surveys, and
benchmarking against industry. Progress is tracked through key performance indicators, internal audits, and
feedback mechanisms, ensuring continuous improvement. Insights from employee engagement surveys and
external benchmarking guide adjustments to our policies and initiatives, reinforcing our commitment to being
an employer of choice.
OUR SOCIAL POLICIES
Shurgard is committed to aligning its social policies with internationally recognized principles, including the UN
Guiding Principles on Business and Human Rights (UNGPs). These principles guide our approach to respecting
human rights and fostering a fair, inclusive, and safe workplace. The policies and principles in this chapter cover
employees, value chain workers, contractors, customers, and the communities in which we operate.
The international standards include:
• UNGPs emphasize the "Protect, Respect, Remedy" framework: ensuring respect for human rights and
providing mechanisms for remediation.
• International Labour Organization (ILO) Core Labour Standards prioritize freedom of association, the
elimination of forced labor, the abolition of child labor, and equality.
• OECD Guidelines encourage due diligence, transparency, and addressing adverse impacts related to
labor practices.
Key workforce policies that reflect this alignment include:
• Code of Conduct and Human Rights Policy (covering employees, value chain workers, contractors,
customers, and the communities in which we operate): outlines our commitment to non-discrimination,
equal opportunity, and respect for human rights, including trafficking in human beings, forced labor or
compulsory labor and child labor.
• Health and Safety principles: ensure a safe and supportive working environment for all employees,
aligned with international safety standards.
• Grievance mechanisms and whistleblowing online platform: provide channels for employees to raise
concerns, consistent with the UNGP’s emphasis on access to remedy.
• Fair compensation and equal treatment: aligns with the principles of fair and adequate remuneration,
reflecting appropriate benchmarks.
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We regularly review and update our policies to ensure continued alignment with international standards. Internal
audits and stakeholder consultations are conducted to reinforce awareness and compliance across our workforce.
In 2024, we had no severe human rights incidents and no fines, penalties or compensation for damages for such
incidents.
As part of our materiality assessment, we analyzed the potential risks and opportunities related to our workforce.
This assessment involved identifying how individuals, working in specific contexts, or performing particular
activities may be at greater risk of harm. The assessment included consultations with internal stakeholders, an
evaluation of workforce demographics, and a review of operations and working conditions across all locations.
Our assessment results indicate that there are no groups within our workforce identified as being at an increased
risk of negative impacts. Our workforce operates within the context of a non-residential real estate company
with a focus on self-storage services. The nature of our operations and work environment does not expose any
specific group to unique risks. Additionally, our policies, such as our Code of Conduct, health and safety
procedures, and equal opportunity practices, ensure a consistent and fair approach to managing workforce risks
across all demographics and activities. As no specific groups within our workforce were identified as being at
heightened risk, all material risks and opportunities are managed at the organizational level.
OUR EMPLOYEES
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Shurgard’s workforce includes employees and non-employees impacted by its operations:
• Employees: store personnel, operational management and support function employees.
• Third-party workers: cleaning and maintenance staff from employment agencies.
• Self-employed and contractors: consultants.
Shurgard includes all materially impacted workers in its disclosures, considering risks from its operations, value
chain, and business relationships.
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).
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, 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, ensuring that all individuals are treated with fairness, dignity, and respect. While we do not
specifically identify any groups as being at particular risk of vulnerability within our workforce, we maintain a
strong commitment to equal treatment and non-discrimination across all aspects of employment. The principle
of non-discrimination (see our policy on Human Rights) 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 45 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 of creating and ensuring a diverse
work environment contributes to Shurgard’s corporate objectives and embeds the importance and value of
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125
diversity within the culture of our organization. In line with our commitment to inclusivity, we expanded our
employee training program on diversity, equity, and inclusion in 2024. The program aims to embed these values
across our workforce, ensuring they are integral to Shurgard’s corporate culture.
We have policies and processes in place to ensure all employees operate in an environment free from harassment,
discrimination, and other barriers to equity. Training on sexual harassment and discrimination is mandatory for
all employees during onboarding and is refreshed regularly to reflect evolving best practices. These efforts are
monitored for effectiveness through employee feedback and regular assessments.
We also promote equal opportunities by embedding fairness in recruitment, selection, and promotion processes.
Decisions are based solely on professional and personal merit, ensuring that all employees are treated equitably
regardless of their individual characteristics.
Within our stores, we foster an inclusive culture which engages all potential candidates. The outcome of this
culture is a good gender balance at our properties, which employ 77% of the total Shurgard personnel. Within
stores across our seven operating countries, the total gender split is 56% male and 44% female. In 2023, the
gender split was 57% male and 43% female.
The gender split for our support function employees was 60% male and 40% female in 2024, against 57% male
and 43% female in 2023.
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The gender pay difference was 5.6% (in favor of male personnel) across all geographies, which reflects a range
between 9.7.% and -2.0%.
COLLECTIVE BARGAINING, FREEDOM OF ASSOCIATION AND SOCIAL DIALOGUE
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.
Shurgard is also 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 chapter 6.4 Encouraging ESG best-practices in our supply chain.
GRI 2-30 / 407
In 2024, Shurgard is not aware of any cases in which freedom of association or the right to collective bargaining
have been jeopardized or even breached. As of December 31, 2024, 14% of our employees are covered by
collective bargaining agreements.
% of total employees covered by collective bargaining agreements
All countries: 14%
% of employees within the EEA covered by Collective Bargaining Agreements in each
country where we have significant employment (defined as at least 50 employees,
representing at least 10% of the total workforce)
Belgium: 100%
France: 0%
Germany: 0%
Netherlands: 0%
Sweden: 0%
% of employees outside the EEA covered by Collective Bargaining Agreements in
each country where we have significant employment (defined as at least 50
employees, representing at least 10% of the total workforce)
UK: 0%
As of December 31, 2024, 23% of our employees are covered by workers’ representatives.
% of total employees covered by workers’ representatives
All countries: 23%
% of employees within the EEA covered by workers’ representatives in each
country where we have significant employment (defined as at least 50 employees,
representing at least 10% of the total workforce)
Belgium: 31%
France: 100%
Germany: 0%
Netherlands: 0%
Sweden: 0%
% of employees outside the EEA covered by workers’ representatives in each
country where we have significant employment (defined as at least 50 employees,
representing at least 10% of the total workforce)
UK: 0%
As of December 31, 2024, 31% of our employees are represented by an independent trade union.
% of total employees covered by an independent trade union
All countries: 31%
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127
% of employees within the EEA covered by workers’ representatives in each
country where we have significant employment (defined as at least 50 employees,
representing at least 10% of the total workforce)
Belgium: 31%
France: 100%
Germany: 0%
Netherlands: 0%
Sweden: 100%
% of employees outside the EEA covered by workers’ representatives in each
country where we have significant employment (defined as at least 50 employees,
representing at least 10% of the total workforce)
UK: 0%
Or, in summary:
Collective Bargaining Coverage
Social dialogue
Coverage
Rate
Employees - EEA
(for countries with >50 empl.
Representing >10% total empl.)
Employees - Non-EEA
(for countries with >50
empl. Representing >10%
total empl.)
Workplace representation (EEA
only)
(for countries with >50 empl.
representing >10% total empl.
0-19%
France, Germany, Netherlands, Sweden
United Kingdom
Germany, Netherlands
20-39%
Belgium
40-59%
60-79%
80-100%
Belgium
France, Sweden
There is no existing agreement with our employees for representation by a European Works Council (EWC), a
Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council.
RAISING, HANDLING AND REMEDIATING CONCERNS
Our company provides multiple channels for employees to raise concerns or report negative impacts, including
confidential whistleblowing hotlines and open-door culture with line managers. Employees can also submit
complaints anonymously through our online grievance portal. The whistleblowing platform is accessible to
external stakeholders, including value chain workers, our clients and local communities.
In 2024, we registered 2 incidents related to discrimination topics, including harassment, and 6 complaints
through the whistleblowing platform, among our own workforce. There were no fines, penalties, or compensation
for damages as a result of these incidents and complaints.
All concerns raised are reviewed by the HR department or the appropriate personnel. Depending on the nature
of the concern, investigations may be initiated, and outcomes are communicated back to the employee or any
external stakeholder (if contact information is provided). Regular reporting on grievances is conducted to identify
patterns and address systemic issues.
When negative impacts on employees are identified, Shurgard takes immediate steps to remediate the situation.
This may involve mediation, changes to workplace practices, or financial compensation where appropriate. We
are committed to ensuring fair and timely resolutions for all cases, including work-related accidents.
We actively promote the availability of these channels through employee onboarding sessions, internal audit
reviews, regular internal communications, and our intranet, where details about grievance mechanisms are
accessible. Information about accessing our whistleblowing platform is available on our website.
REPORTING TO GOVERNANCE BODIES
The outcomes of reported concerns, along with trends and remediation measures, are periodically reviewed and
presented to the Executive Committee. These updates are included in internal reports and compliance briefings
presented to the said Committee to ensure oversight and informed decision-making.
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128
Significant cases or systemic issues are escalated as necessary to the Audit Committee or the Board of Directors
for further review and action.
THE IMPACT OF OUR TRANSITION ON EMPLOYMENT
In line with our transition to reducing emissions, we have not observed significant workforce restructuring or
employment loss. However, we anticipate potential job role optimization in areas such as energy management
and sustainability compliance as we implement energy-efficient technologies across our portfolio. We are
integrating smart energy monitoring systems, solar panels and electric chargers, and our employees will adapt
to these operational improvements in due course.
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.
In 2024, we enhanced our training offering to address emerging trends, technological advancements, and
evolving stakeholder expectations. This includes a focus on sustainability and compliance training, equipping
employees with the skills to contribute to Shurgard’s corporate objectives and sustainability commitments.
We believe the quality of customers’ interactions with our employees is critical to our long-term success.
Accordingly, we emphasize customer service and teamwork in our employee training programs. Each 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.
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129
EMPLOYEE TRAINING AND DEVELOPMENT
We continue to invest in a wide range of training initiatives to
enhance both professional and soft skills, including
communication, problem-solving, and time management. To
further support organizational excellence, Shurgard’s employee
development program incorporates the "7 Habits of Highly
Effective People" framework by FranklinCovey.
The 7 Habits framework has become an integral part of our
employee development program. Through this program, our
employees 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.
Comprehensive feedback helps our employees gain insights into their strengths and areas for improvement,
enabling them to grow and develop in their roles.
SHURGARD ACADEMY
Since its launch in 2018, the Shurgard Academy has offered employees a
transparent career progression framework, from Junior Assistant Store
Manager to Senior Store Manager and District Trainer. This structured
approach empowers employees to develop professionally and grow their
careers within the organization.
In 2024, we modernized our learning approach by collaborating with a new partner specializing in game-based
learning and virtual reality training. Shurgard Academy will keep enhancing our training portfolio and engaging
employees in innovative ways.
TRAINING METRICS
Shurgard’s training efforts in 2024 included over 49,000 total hours of training completed by our workforce. This
represents an average of approximately 56.5 training hours per employee. These hours include first aid, fire
emergency, new joiner induction, and externally provided training relevant to employee development.
Additionally, in 2024, 97.6% of our employees participated in a structured performance appraisal process, with
98.2% participation for men and 97.2% for women, ensuring alignment between individual development goals
and organizational objectives.
INTERNAL MOBILITY AND PROMOTION
Shurgard‘s priority is to support 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.
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130
We view mobility as a testament to an employee’s dedication to their career growth. By aligning personal
aspirations with organizational needs, we aim to retain top talent, prepare for strategic shifts, and promote
employee engagement. To achieve this, we implement several measures, including:
• The systematic publication of all open positions on our corporate website.
• Giving priority consideration to internal candidates for available roles.
DYNAMIC REMUNERATION POLICY AND FAIR COMPENSATION
The philosophy of Shurgard‘s remuneration policy is to reward long-term performance, attracting and retaining
talent through competitive, fair and discrimination-free 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.
Each year, we review our compensation structures to provide an equitable balance for all employees, aligning
with our values and legal obligations. Based on our annual salary review process and benchmarking analysis, all
our employees are paid an adequate wage.
To ensure fairness and equity:
• Calibration meetings are held annually among the executive team to ensure remuneration decisions are
equitable across the organization. Employees in similar roles with comparable responsibilities and
experience receive consistent compensation.
• Pay equity is a continuous focus, with ongoing reviews of salary structures to align with market trends
and address any disparities.
Executive remuneration policies are reviewed annually by the ESG Committee, ensuring alignment with best
practices and compliance with relevant regulations. In 2023 we conducted a comprehensive salary benchmarking
survey for executive roles (see Remuneration Report for more details).
GRI 2-19, GRI 2-20
5.3 SHARE AND LIVE THE SHURGARD CULTURE
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131
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.
As a result of these initiatives, Shurgard
maintained its strong performance on external
benchmarks such as Glassdoor, a platform that
gathers anonymous reviews from employees of
large corporations. This is our year-round
engagement channel, through which employees
leave feedback at different stages (before and
after ending their contractual obligations with
Shurgard) and it reflects our commitment to
employee happiness and engagement. As of 2024,
our company continues to rank significantly above
average, with a 4.7/5 overall rating compared to
the platform average of 3.7/5. Additionally, our CEO has a 94% approval rating, surpassing the average rating of
72%. These results demonstrate that our mission and values resonate strongly with our employees, and our
workplace culture supports their satisfaction and loyalty.
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 in 2020 and are planning to continue the process of empowering our employees and enriching the
company culture.
EMPLOYEE WELL-BEING INITIATIVES
At Shurgard, we prioritize the health, happiness, and productivity of our workforce. We believe that a thriving
workplace stems from the active engagement and well-being of our employees, supported by policies, surveys,
and initiatives tailored to their needs. We engage with our workforce through direct interactions and structured
feedback mechanisms, ensuring that their insights contribute to workplace improvements and policy
developments.
In 2024, our annual well-being initiatives were guided by insights gathered from various surveys and feedback
mechanisms, including:
• Well-Being survey for support center employees;
• Feedback surveys for operations employees, enabling personalized insights into their workplace
experiences;
• Direct employee survey on welfare, aimed at addressing immediate concerns and feedback to foster a
healthier and more productive workplace.
These tools provided us with a deeper understanding of the most critical factors contributing to employee vitality,
such as office conditions, workplace appreciation, inclusive culture, and work-life balance.
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132
These assessments drive Shurgard to make tangible changes. In response to feedback collected, we implemented
several key initiatives that continued into 2024:
• Stress relief workshops: bi-monthly sessions for support center staff to manage workplace stress
effectively. Two of our UK Human Resources employees completed the
Mental Health First Aider
course
run by the British Red Cross and are now fully accredited. This step highlights our commitment to
addressing mental health in the workplace and providing support to employees in need.
• Teleworking and ergonomics training: enhanced training
to create comfortable and effective homeworking
environments.
• Office space improvements: addressing indoor air quality
and lighting control for better workplace comfort.
• Physical well-being promotion: encouraging employees to
use office bicycles during lunch breaks, fostering activity
and wellness (e.g., organizing padel and hockey
tournaments).
• Social and team-building events: regular gatherings,
including quarterly and annual corporate events, team-
building sessions, and recognition initiatives such as
“Employee of the Month”.
• Recognition is a core part of our engagement strategy, with each country organizing events and an
annual awards ceremony to celebrate employee achievements and foster team spirit.
In addition to our established training programs, in 2025, we will be introducing a series of new micro-learning
courses focused on “Vitality at Work”. These courses will cover practical and impactful topics such as ergonomics,
stretching, and stress management, providing employees with tools to enhance their physical and mental well-
being.
As such, employee feedback is systematically collected through surveys, direct engagement, and structured
feedback mechanisms. The insights gathered are reviewed by the HR and leadership teams and directly inform
policy updates, workplace improvements, and new well-being initiatives. Employees are informed about how
their feedback has influenced decisions through internal communications, team meetings, and company-wide
updates. Key outcomes, such as office improvements, training enhancements, and well-being initiatives, are
shared through newsletters, intranet updates, and dedicated feedback sessions to ensure transparency and
continuous engagement. Shurgard dedicates both financial and human resources to workforce engagement. Our
HR team, alongside department heads, ensures that engagement strategies are effectively implemented and
continuously refined. Resources allocated include funding for well-being programs, mental health support,
employee surveys, team-building events, and professional development opportunities. Additionally, time and
personnel are specifically assigned to the design and execution of engagement initiatives, ensuring a sustained
commitment to improving employee experience and satisfaction.
OUR FOUR CULTURAL PILLARS
To create a united and engaged internal environment, Shurgard has anchored its culture in four pillars recognized
across all levels of the organization:
1. Happiness: ensuring employees feel valued and appreciated.
2. Training: providing continuous learning opportunities to develop skills and careers.
3. Team Spirit: building strong, collaborative relationships across teams.
4. Perspective: offering clear career paths and opportunities for professional growth.
German team recognized as “Country of the
year” during the Annual Sales Conference
2024 (Shurgard event).
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133
These pillars shape our identity as Shurgard employees and lay the foundation for a successful career within the
company. In 2024, we continued the “4 pillars training”, an e-learning module that all new hires follow during
their onboarding period to help integrate them into the working culture of Shurgard.
5.4 OUR “EMPLOYER OF CHOICE” FUTURE COMMITMENTS
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5.5 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 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.
The 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 2024, we conducted move-in and move-out surveys in our seven countries to better understand our customers’
feedback and the Net Promoter Score (NPS). The surveys were conducted by a third party. The feedback collected
is used to improve the quality of our services for our customers. Key findings from this year’s NPS survey include:
• Overall satisfaction: the majority of respondents reported high levels of satisfaction with our products
and services, reinforcing the strength of our customer offering.
• Loyalty indicators: NPS showed a significant proportion of promoters, reflecting strong client
relationships and a high likelihood of recommendation.
• Opportunities for improvement: feedback is being thoroughly reviewed to identify specific areas where
we can enhance the customer experience.
Moving forward, we will analyze the results to transform customer feedback into actionable improvements and
further strengthen our commitment to customer satisfaction.
INTENDED POSITIVE OUTCOMES FOR CONSUMERS AND END-USERS
Shurgard currently does not track specific positive or negative outcomes for consumers and end-users. While we
track customer satisfaction and service improvements, we do not measure direct behavioral or well-being
outcomes. For material risks related to customers’ welfare and safety, as well as customers’ privacy, please refer
to the chapter 3.2 Double materiality assessment.
We remain committed to enhancing the customer experience through secure, accessible, and well-managed
storage solutions. If material impacts are identified in the future, we will assess appropriate metrics to distinguish
between activities undertaken and actual outcomes for consumers and end-users.
ACTIONS TO MITIGATE MATERIAL RISKS RELATED TO CONSUMERS AND END-USERS
Shurgard proactively manages customer-related operational risks through the following actions:
• Customer data protection and security: implementing robust cybersecurity measures and data
protection protocols to safeguard customer information.
• Service quality and customer experience: regular customer satisfaction surveys and service
improvements to maintain high standards in security, accessibility, and convenience.
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• Transparent pricing and fair practices: ensuring clear communication of pricing, contract terms, and
policies to prevent customer disputes.
Effectiveness is monitored through:
• Customer satisfaction metrics and feedback (e.g., Net Promoter Score, surveys).
• Compliance with data protection regulations (e.g., audits).
• Customer feedback analysis and trends (e.g., volume and nature of complaints).
CUSTOMER REVIEWS
Throughout the year, we collected no fewer than c. 18,139 Google reviews, adding to our all-time total of 123,866
reviews, of which 90% are 5-star. Our overall all-time rating stands at 4.8 out of 5 stars, collated from over 371
reviews per property – a result seen consistently across our stores and countries. Overall, in 2024, we obtained
4.6 reviews per store per month, more than we set out to obtain in our 2024 Customer Service actions. Our
strategy is not only to obtain customer feedback, but also to receive qualitative responses we can act upon. As
of December 2024, 84% of our Google reviews contained written feedback. As of December 2024, our Trustpilot
rating was 4.6 out of 5 stars.
5.6 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 website, available in all languages in the
countries in which we operate. 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.
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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 purpose 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 confidentiality, integrity, and availability of data. This is essential to maintain the trust placed in us
by our customers, employees, and other stakeholders. Since the spread of teleworking for our corporate
employees, we have further strengthened our security capabilities. We can thus monitor the increasing number
of threats involving phishing and social engineering.
We also focused on improving the user experience. To do this, we have simplified the processes and controls and
consolidated security. We are continually and exponentially adapting all our systems.
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 proceeded with a proof of concept for significant improvement of our security systems, using the
latest available technologies to maintain and enhance the best security standards for our clients.
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137
5.7 POSITIVE IMPACT ON LOCAL COMMUNITIES
This section is a voluntary disclosure, which is not required by ESRS considering the outcome of our materiality
assessment
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 have time and financial budgets to provide in-kind support and sponsorship to our community
partners and during 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
.
Our Community and Charity Policy outlines the scope of engagement between Shurgard and several initiatives
we are supporting.
GRI 413-1
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, our employees
helped organize a major clearance sale that raised €14,300, funding 477 clown visits. Building on this success,
we set a new record in 2024, raising €23,257 and enabling 775 clown visits. Shurgard’s aim for 2024 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. Shurgard provides free storage space for
Stichting Babyspullen at 23 of our locations in the Netherlands.
Additionally, we’ve extended our support to Stichting Jarige
Job, which helps children in poverty celebrate their birthdays.
A team of Shurgard employees recently packed 427 birthday
boxes filled with treats, gifts, and party essentials, contributing
to the foundation’s mission of delivering over 165,000 birthday
boxes annually.
Shurgard employees in the Netherlands lend a
hand to the Jarige Job Foundation in Rotterdam
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138
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. In 2023, we hosted successful CV and interview
workshops at Walthamstow Academy, with our District Managers guiding
students through career preparation. In 2024, we supported students with
face-to-face mock interviews and quality feedback. As part of another project,
the United Kingdom team collaborated with two out-of-term school clubs
through local council-led initiatives in a Kitchen Social event. These clubs are
part of the council's volunteer group supporting children outside the regular
school term. To participate, all team members underwent enhanced checks
(Disclosure and Barring Service), ensuring their eligibility to work with
children. Activities included engaging in teamwork games, art sessions, and
math challenges, boosting creativity and collaboration among the children. Additionally, store teams across UK
supported a charity initiative by organizing a Xmas Jumper Day. This effort saw widespread participation, with
team members contributing through donations, making a positive impact during the 2024 holiday season.
In 2024, our Swedish and Danish market teams continued 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. Shurgard provides free storage space at three locations in Denmark and eight locations
in Sweden. Throughout the year, the members not only 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 2024, 35 of our employees
undertook spinning sessions to support the cause. Team Rynkeby donated €8.7 million to organizations that help
children with critical illnesses in 2024 and Shurgard is proud to have contributed to this goal.
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.
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.
For the second year in a row, the European Support
Center (ESC) organized a charity bake-off where
employees donated money for the pies and pastries
deliciously prepared by their colleagues
. The money
gathered from the sale of baked products were donated
to
"De Warmste Week" a Belgian initiative that supports
various charitable projects aimed at fostering solidarity
and assisting vulnerable groups in society.
In addition to the bake-off, Shurgard supported
TWERK, a Belgian organization that empowers individuals with
autism by providing them with meaningful employment opportunities. We proudly contributed by purchasing
their chocolates for the St Nicholas celebration in December, helping to sustain their mission and positively
impacting society.
UK Shurgard employees raised
donations on “Xmas Jumper Day”
.
In March 2024, 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.
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139
Through initiatives like this, Shurgard fosters a sense of community and shared purpose among employees while
contributing to meaningful causes.
PHILANTHROPIC CONTRIBUTIONS
For 2024, we have estimated the total monetary value (at cost) of Shurgard's corporate citizenship/philanthropic
contributions in cash, time and in-kind donations. 100% of our corporate citizenship and/or philanthropic
activities are comprised of charitable donations, and a breakdown is provided in the table below:
Type of contribution
2023 2024
Cash contributions
€20,707
€21,233
Time: employee volunteering during paid working hours
€16,260
€20,070
In-kind giving: product or service donations, projects/partnerships or similar
€95,636
€115,538
Total charitable contributions
€132,603
€
156,841
5.8 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.
SUPPLIER CODE OF CONDUCT
We continually look for opportunities to increase the dialogue around, and improve understanding of, sustainable
sourcing both internally and externally. Strategies include addressing sustainability-specific requirements in our
standard procurement agreements. Within all our contracts we have clauses related to human rights, as we
intend to partner with suppliers who share the same values. Our Suppliers’ Code of Conduct clarifies the guiding
principles Shurgard applies to our suppliers to create a mutual understanding of our core values. It is a
commitment we make to our customers, employees, and investors to ensure sustainable sourcing of services
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140
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 acknowledge the Code
of Conduct is a part of all our contract templates.
We survey our critical tier-one suppliers every three years regarding their ESG performance. In 2022 we 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 invited to complete our ESG questionnaire, which
evaluates the presence of policies, systems, and resources to manage potential ESG risks and impacts. The results
indicate that participating suppliers respect internationally recognized norms on ethics, diversity, and
environmental sustainability.
While the ESG questionnaire provides valuable insights into suppliers’ sustainability practices, it is primarily a
tool for engagement and awareness-building rather than a sole determinant in supplier relationship decisions.
We view this exercise as an opportunity to promote shared learning and incremental improvements rather than
as a compliance-based mechanism.
At Shurgard, we are committed to promoting sustainability across our supply chain. In 2023, we invited our
suppliers to participate in the SMEs sustainability training offered by the UN Global Compact. This effort aimed
to raise awareness among suppliers about the availability of resources to enhance their sustainability practices.
TIMELY PAYMENT TO SUPPLIERS
We commit to a strong relationship with our suppliers and to timely payments in accordance with established
accounting policies. Shurgard’s accounts payable policy is approved annually and targets all suppliers, including
SME suppliers. Ensuring timely payments helps create stronger, more reliable partnerships with suppliers and,
for example, may lead to enhanced service levels.
To ensure timely payments, we follow a specific accounts payable policy, reviewed and approved annually by the
Executive Committee. Invoices submitted by suppliers are processed using an automated system that ensures
accurate allocation and streamlined approvals in compliance with our Delegation of Authority (DOA) framework.
Payments are executed through a secure weekly cycle, which uses an online payment tool, where dual
authorization by authorized personnel guarantees compliance and accountability.
Payment Terms and Calculation Methodology
The average time Shurgard takes to pay an invoice from invoice date to pay date is 34 days. This calculation is
based on the total number of days between the invoice issue date and the payment completion date, averaged
across all supplier invoices processed within the reporting period.
Shurgard's standard contract payment terms are payment on receipt of invoice within 30 days for building and
construction-related suppliers (including construction, maintenance, repair, rent, and utilities). These suppliers
account for approximately 47% of our annual invoice value. The supplier invoices are paid within an average of
34 days from the invoice date. Please note that direct debit payments are excluded from this calculation. This
limitation is under consideration for improvements in future reporting cycles.
There are no legal proceedings against Shurgard related to late payments, and there have been no confirmed
incidents of contract termination with business partners due to delayed payments.
WORKERS IN THE VALUE CHAIN
Shurgard recognizes that workers within our value chain may be subject to material impacts due to our
operations, business relationships, products, or services. The following groups of value chain workers have been
identified:
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141
Workers not part of own workforce
• Facility maintenance, cleaning, and IT staff: employed by third parties to maintain our sites;
• Contracted construction workers: engaged for store expansions and renovations;
• Potential impacts: occupational safety risks, fair wage concerns, and job security issues due to
outsourced employment.
Workers in the upstream value chain
• Suppliers of materials: involved in producing construction materials, office equipment;
• Potential impacts: compliance with fair labor standards and safe working conditions in supplier regions.
Workers in the downstream value chain
• Logistics and transport workers: deliver merchandise sold by Shurgard;
• Potential impacts: fair wages and employment stability in logistics roles.
While we do not identify specific vulnerable worker groups, Shurgard maintains strong due diligence in supplier
engagement and labor practices to ensure ethical treatment across our value chain.
In our commitment to maintaining a sustainable supply chain, Shurgard undertakes several measures to prevent
and mitigate potential negative impacts on value chain workers.
We have established a Code of Conduct for Suppliers, requiring compliance with fair labor practices, non-
discrimination, and safe working conditions. This Code is made publicly available on our website (see
Environment Social and Governance Policy | Shurgard Investor Relations).
We partner with suppliers who work on a contractual basis with us. Our contracts feature a clause stipulating
that suppliers acknowledge our Code of Conduct.
Our operations are not inherently exposed to significant risks of forced or child labor. However, we acknowledge
potential risks in our supply chain, particularly in the procurement of construction materials. To mitigate these
risks, we require suppliers to adhere to our Supplier Code of Conduct, which includes explicit prohibitions against
forced and compulsory labor, as well as child labor. Based on our due diligence and risk mapping, we have
assessed the risk of forced or compulsory labor in our current operations. This assessment considers The Global
Slavery Index by Walk Free to identify high-risk countries or regions. No countries or geographic areas where we
operate have been classified as high-risk based on these criteria.Our due diligence process and contractual
documentation include background checks of partners suppliers for any previous human rights violations or risks
associated with forced labor, child labor, or unsafe working conditions.
We conduct rigorous sample-based audits of our vendors and suppliers on a yearly basis, with a specific focus
on new development sites. 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.
Our audit process involves physical site inspections, document reviews, and 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 the well-being of our supply chain employees, we ensure that each new worker
or contractor undergoes thorough safety induction training for every construction site. 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 support 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.
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142
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.
We engage with value chain entities to develop corrective action plans, such as ensuring timely resolution of
labor grievances raised by subcontractors. In 2024, no actual negative impact have been identified.. We are
committed to fostering positive impacts on value chain workers by improving existing processes.
Building on our recent ESG survey for suppliers, we plan to enhance ESG supplier survey mechanisms in 2025.
Our aim by the end of 2025 is to analyze the sustainability practices of all tier-one suppliers via the ESG Supplier
Survey.
In addition, we recognize the importance of addressing this area and are committed to:
• Reducing negative impacts: exploring measurable targets to mitigate risks in our value chain, including
improving supplier engagement and monitoring practices;
• Advancing positive impacts or opportunities: enhancing feedback mechanisms and developing training
initiatives for SME suppliers to promote sustainable and fair labor practices;
• Managing material risks and opportunities: identifying key risks and opportunities through our ongoing
ESG survey process and integrating these insights into our operational strategies. Enhancing ESG
engagement with suppliers creates opportunities for more sustainable and ethical partnerships,
strengthening supplier relationships and reducing risk exposure.
Currently, we track our engagement effectiveness with value chain workers by getting insights from key
performance indicators (KPIs), such as feedback from audits. We ensure effective remedy processes by
maintaining grievance mechanisms accessible to value chain workers and tracking resolution outcomes when
issues are raised.
No severe human rights issues or incidents have been reported in our upstream or downstream value chain.
Allocated resources include dedicated budgets for supplier audits and grievance mechanisms.
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 cardbo
ard in the packaging sold to customers to aid their moving needs. We impose
that all our suppliers of wood fiber-based products for packaging applications only use wood fibers from certified
forests, which are managed sustainably and provide appropriate traceability. All forestry-based products
Shurgard procures are used for our packaging solutions and are either Forest Stewardship Council (FSC) or PEFC
(and other certifications recognized by PEFC) certified. We promote these credentials alongside the packing
materials for sale. Other documentation given to customers is on FSC certified paper.
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143
5.9 OUR “POSITIVE IMPACT ON CLIENTS AND SOCIETY” FUTURE COMMITMENTS
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144
5.10 ESRS, EPRA & GRI SOCIAL PERFORMANCE MEASURES
SOCIAL 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
ESRS
SOCIAL PERFORMANCE MEASURES
Storage
assets
Corporate
Own office
occupation
Pages
405 Diversity-Emp S1 Employee gender diversity N/A V N/A
145,
146
405 Diversity-Pay S1 Gender pay ratio N/A V N/A
145,
146
405
Diversity-Pay
S1
Equal pay analysis
N/A
V
N/A
145
404 Emp-Training S1 Employee training and development N/A V N/A
146,
147
404 Emp-Dev S1 Employee performance appraisals N/A V N/A
146,
147
401
Emp-Turnover
S1
New hires and turnover
N/A
V
N/A
147
403 H&S-Emp S1 Employee health and safety N/A V N/A 147
416
H&S-Asset
S1
Asset health and safety assessments
V
N/A
V
148
416
H&S-Comp
S1
Asset health and safety compliance
V
N/A
V
148
413 Comty-Eng /
Community engagement, impact
assessments and development programs
V N/A V 148
Fully reported: “V”
ESRS non-material voluntary disclosure: “/”
Not reported: “X”
Not applicable: “N/A”
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145
SOCIAL PERFORMANCE MEASURES
Note that our CEO has two functions: one as Board member and one as Senior
Management. In order to avoid a double count, the CEO has been excluded from the
Senior Management social performance measures.
Employee Gender Diversity
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2024
2023
Female
Male
Female
Male
405-1
Diversity-
Emp
Employees in
the
organization’s
Board
of Directors
50% 50% 33.3% 67.7%
Employees in
the
organization’s
senior
management
25.0% 75.0% 25.0% 75.0%
All employees 44.3% 55.7% 42.4% 57.6%
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 50.0%, as well as overall in the
company, which is now 47%.
GRI 405-1
Gender Pay Ratio
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2024
2023
Mean
Mean
405-2 Diversity-Pay
Gender pay gap, expressed as
a percentage of the average
pay level of male employees
5.6% 3.2%
Narrative on performance:
For all in-store employees, Shurgard discloses the percentage pay gap between
average female and average male pay.
The gender pay ratio has slightly increased compared to our 2023 disclosures and
now represents 5.6% in 2024. We are dedicated to promoting equity and maintaining
a workplace free from discrimination.
GRI 405-2
Equal Pay Analysis
ESRS non-material voluntary disclosure
Employee Level
2024
2023
Female Male Female Male
Executive level (base salary
only)
€ 400,000 € 352,381 € 320,000 € 301,067
Executive level (base salary +
other cash incentives)
€ 688,000 € 651,587 € 640,000 € 600,274
Management level (base salary
only)
€ 88,091 € 91,971 € 91,418 € 89,847
Management level (base salary
+ other cash incentives)
€ 106,187 € 114,963 € 110,564 € 113,653
Data notes for equal pay analysis 2024: Executive level functions include all Senior
Management, except for the CEO position. Management level functions include all
positions with people management responsibilities. Salary levels refer to average
salaries divided per gender.
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146
Narrative on performance for equal pay analysis 2024:
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
Gender pay ratio for directors and employees
GRI
Topic
Stand
ard
EPRA
sBPR
Meas
ure
Indicator
Gender pay gap, expressed as a
percentage of the average pay
level of male employees.
2024
2023
405-2
Diversity
-Pay
The organization’s Board of
Directors
19.4% 17.9%
Employees in the organization’s
Senior Management
-12.9% -7.5%
All employees
15.7% 14.9%
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.
A positive result means that average male pay is higher than average female pay. A
negative result means average male pay is lower than average female pay.
GRI 405-2
Employee Training & Development
GRI
Topic
Standard
EPRA
sBPR
Measure
Indicator
2024
2023
Female
Male
Female
Male
404-1
Emp-
Training
Average hours of training
undertaken by employees in
the reporting period (per
employee)
56.5 22.7
Average hours of training
undertaken by employees in
the reporting period
56.5 56.5 22.7 22.7
404-3
Emp-
Dev
% of total employees who
received regular performance
and career development
reviews during the reporting
period
97.6 97.8
% of employees who received
regular performance and
career development reviews
during the reporting period
97.2 98.2 95.9 99.0
N/A
Average spent on training per
employee in the reporting
period
€ 497.0 € 472 .9
N/A
Total of hours of training
undertaken by all employees
in the reporting period
(overall)
49,897 15,986
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147
Narrative on performance:
Total training hours for 2024 amounted to over 49,000 hours, including newly rolled
out game-based training, first aid and fire emergency training in addition to all the
new joiners’ induction training and some other externally provided upskilling training
deemed important for the development of our workforce. Training hours and
upskilling opportunities are distributed evenly among our employees. For the overall
numbers of employees, we took into consideration the total headcount at the
reporting year end.
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 489 new employees over 2024 who all went through induction training.
GRI 404-1 / 404-3
New Hires and Turnover
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2024
2023
Female Male Female Male
401-1
Emp-
Turnover
Total
employee
headcount
492
391 419 299
Indicator
Number
Rate Number Rate
New
employee
hires
489
55.5% 242 33.8%
Employee
turnover
321 36.4% 267 37.3%
Narrative on performance: There have been more new hires because of the
increasing asset portfolio, along with lower turnover compared to last year
Please note that 205 new employee joined Shurgard as a result of the recent
acquisitions, reflecting 41.9% of the total new employee hire figure. In addition, 64
employees left the company as a result of the recent acquisitions, representing 19.9%
of total employee turnover.
In 2024, the total number of employees was 883, with 55.7% male and 44.3% female
employees. This represents a slight increase in gender diversity compared to 2023,
when the company had 718 employees, with 58.4% male and 41.6% female
employees.
GRI 401
Employee Health and Safety
GRI
Topic
Standard
EPRA
sBPR
Measure
Indicator 2024 2023
403-2
H&S-
Emp
Injury rate
0.0% 0.0%
Injury number 44 38
Lost day rate 0.1% 0.3%
Absentee rate
7.5%
6.3%
Fatalities own workforce 0 0
Fatalities value chain workers 0 0
Employees covered by health
and safety management system
77.5% 74.4%
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 2024, our injury and absentee rates increased slightly, while our lost day rate
decreased.
GRI 403-1/ 403-2
SHURGARD ANNUAL REPORT 2024
148
Asset Health and Safety Assessments and Compliance
GRI Topic
Standard
EPRA sBPR
Measure
Indicator 2024 2023
416-1 H&S-Assets
% of assets for which
H&S impacts are
assessed or reviewed
40.2% 35.5%
416-2 H&S-Comp
Number of incidents of
non-compliance
with regulations and/or
voluntary standards
1 1
Narrative on performance:
Shurgard is fully committed to providing safe storage facilities to our customers and
our staff. Health and safety criteria are regularly assessed in our properties to ensure
that applicable health and safety rules are respected. All the properties are audited
with respect to health and safety criteria:
• By Internal Audit within a 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
Community Engagement, Impact Assessments and Development Programs
(Non-ESRS disclosure)
GRI Topic
Standard
EPRA
sBPR
Measure
Indicator 2024 2023
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 company-level community program that applies across all
activities. Further details of which are included in the “Positive impact on local
communities” section mentioned earlier.
All our community initiatives are based on an assessment of local community 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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149
6. GOVERNANCE INFORMATION
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 our own Corporate Governance Charter that meets the specific needs and
interests of our Company. 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 manage the Company in accordance with applicable laws.
SHURGARD ANNUAL REPORT 2024
150
6.1 HIGH GOVERNANCE STANDARDS
COMPLIANCE WITH REGULATORY FRAMEWORKS
Ensuring compliance with regulatory frameworks is a material topic for our operations. Our goal is to comply
fully with all applicable laws and regulations across all regions where we operate. We are committed to
maintaining the trust of our stakeholders and operating responsibly in every jurisdiction. Shurgard annually
reviews its compliance with applicable laws, regulations, and voluntary standards. For the full list of our
formalized policies, you can refer to our existing policies on the website.
Shurgard’s compliance practices extend beyond governance and social issues to include adherence to critical
environmental regulations and standards. As a self-storage company operating in multiple European countries,
our compliance narrative includes several EU- and country-level environmental standards and regulations, such
as the EU Taxonomy for Sustainable Activities, EPB Directive, Décret Tertiaire (France), sustainability
requirements for employee commutes (Netherlands), SER reporting initiative (Netherlands), BREEAM
certifications, GRESB-related standards and others.
We remain informed about evolving regulatory expectations through various channels, including updates from
professional networks, engagement with industry bodies, participation in training sessions, and leveraging
insights from external advisors. The compliance efforts in this Sustainability Report show our dedication to
meeting regulations, and we remain committed to following all rules wherever and whenever needed.
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.
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 ANNUAL REPORT 2024
151
Shurgard is committed to respecting the rules of governance. To this end, it 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
BOARD OF DIRECTORS
According to our Articles of Incorporation, the Directors are appointed by the General Shareholders’ Meeting for
a one-year term. The General Shareholders’ Meeting also determines the number of Directors and their
remuneration. 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 ten members - one Executive Director and nine Non-Executive
Directors. We consider the majority (seven) of the members of our Board of Directors to be independent. At the
Annual General Shareholders’ Meeting of May 22, 2024, eight members of the Board were re-appointed. One
new member, Paula Hay-Plumb, was appointed, for a term of one year ending at the Company’s Annual General
Shareholders’ Meeting to be held in 2025, to replace Olivier Faujour who stepped down from the Board.
At their meeting on November 4, 2024, the Board of Directors approved the appointment of Candace Krol as an
additional Board member, replacing Frank Fiskers, who will step down at the next Annual General Shareholders’
Meeting on May 14, 2025. Mrs. Krol will hold office until this meeting, at which point she will be eligible for re-
election.
There are no employee representatives present on 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,
• Approve the annual overall Company budget;
• Approve the annual balance sheet and profit and loss accounts and propose the
allocation of the annual profits;
SHURGARD ANNUAL REPORT 2024
152
investments and
pensions schemes.
• Approve any acquisition or disposal of assets, properties or subsidiaries worth more
than €50 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 related schemes.
Meetings
According to their internal rules and regulations, each of the committees convenes at appropriate times and
whenever required. 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. Except in urgent cases or
with the prior consent of all the Directors, at least 48 hours’ written notice must be given for Board and
committee meetings. This notice can be waived if each member of the committee provides documented consent.
Meetings previously scheduled by the committees do not require a 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.
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.
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 2024, the Board of Directors held seven meetings. All members of the Board were
present at these meetings except for one meeting where two members were not present due to personal reasons.
GRI 2-10 / 2-11
Directorships and Shurgard shares held by Board members
As of December 31, 2024, our Board members held directorship mandates in the following companies:
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,
Green Mountain Global
2,551
Marc Oursin CAG23 Capital 172,429
SHURGARD ANNUAL REPORT 2024
153
As of December 31, 2024, the members of the Board of Directors owned 187,276 shares or 0.19% of the total
share capital of the Company.
Independence
Seven of the Non-Executive directors – Ian Marcus (Chairman), Lorna Brown, Paula Hay-Plumb, Frank Fiskers,
Muriel De Lathouwer, Padraig McCarthy and Candace Krol – 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
Z. Jamie Behar
Armour Residential REIT, Inc., Sila Realty Trust, Benefit Street Partners
Multifamily Trust
1,928
Muriel De Lathouwer Etex, Euronext Group, IBA, ImpacTheo, Solvay Institutes 3,021
Frank Fiskers Whitbread PLC 5,347
Padraig McCarthy Eutelsat Communications 2,000
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
0
Paula Hay-Plumb
Calthorpe Estates, Oenoke Settlement, Mineworkers’ Pension Scheme
,
Michelmersh Brick Holdings plc
0
Candace Krol None 0
SHURGARD ANNUAL REPORT 2024
154
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
Management
Environmental
and Social
Finance
Real Estate
Risk
m
anagement
and c
ompliance
Digital, IT
and
t
echnology
Retail and
consumer
goods
Ian Marcus
Independent Chairman
Marc Oursin
Executive
Director
1
/CEO
Z. Jamie Behar
Director
Muriel De
Lathouwer
Independent Director
Frank Fiskers
Independent Director
Padraig McCarthy
Independent Director
Tom Boyle
Director
Lorna Brown
Independent Director
Paula Hay-Plumb
Independent Director
Candace Krol
Independent Director
Total
100%
100%
90%
80%
50%
30%
20%
1
In addition to being a director in the Company, Marc Oursin is also a director in Shurgard Luxembourg S.à r.l., Shurgard Holding Luxembourg
S.à r.l., Shurgard France SAS, Shurgard Nederland B.V., Shurgard UK Ltd, Shurgard Sweden AB, Shurgard Germany GmbH, First Shurgard
Deutschland GmbH, Second Shurgard Deutschland GmbH, Shurgard Europe VOF/SNC, and Shurgard Denmark ApS.
SHURGARD ANNUAL REPORT 2024
155
SHURGARD ANNUAL REPORT 2024
156
SHURGARD ANNUAL REPORT 2024
157
Frank Fiskers and Muriel De Lathouwer will retire from the Board of Directors in 2025. At the Annual General
Meeting of Shareholders to be held on May 14, 2025, Charley Webb will be proposed as a new Director, in
replacement of Muriel De Lathouwer.
All other current Directors’ mandates will be up for renewal.
Director conflicts of interest
Pursuant to the Company’s Articles of Incorporation and Corporate Governance Charter, if a member of the Board
of Directors has a direct or indirect financial interest conflicting with that of the Company, in any Company
transaction submitted to the approval of the Board of Directors, such member must inform the Board of Directors
at that meeting and include a record of its statement in the minutes of the meeting. Such member of the Board
of Directors may not take part in the deliberations relating to that transaction and may not vote on the resolutions
relating to that transaction.
As of December 31, 2024, 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.
GRI 2-15
Diversity of Board members
Female directors hold 50% of the Board seats. Also, six nationalities are represented on the Board which allows
for an enriching cultural exchange.
Furthermore, the Board members have different skills backgrounds: all of them have management experience,
eight directors have finance experience, and seven directors have a strong background in real-estate, including
self storage (four directors). All directors have environmental and social expertise on the board through current
and previous professional experiences, academic background and/or charity work. The Board members’ profile
is further complemented by experience in marketing, engineering, and insurance, as well as in digitalization,
transformation, and technology. To enhance the self-storage and corporate governance skills of the members of
the Board, ongoing training is provided by the Company.
GRI 405-1
SHURGARD ANNUAL REPORT 2024
158
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 and sustainability 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).
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, 2024, the Audit Committee consisted of four members: Padraig McCarthy (Chairperson),
Muriel De Lathouwer, Paula Hay-Plumb and Z. Jamie Behar. Padraig McCarthy, Muriel De Lathouwer and Paula
Hay-Plumb are considered independent Board members. The four members Padraig McCarthy, Muriel De
Lathouwer, Paula Hay-Plumb and Z. Jamie Behar have special competence in accounting and/or auditing in
listed companies. Three out of the four members of the Audit Committee are independent, which ensures good
governance and non-partisan decision-making. Z. Jamie Behar, non-independent director, has been appointed
to the Audit Committee due to her renowned academic knowledge in finance and more than 25 years of senior
experience in both public and private market real-estate investment.
During the financial year 2024, the Audit Committee held four meetings, where all committee members were
present.
ESG COMMITTEE
GRI 2-14
The ESG Committee is responsible for the following matters:
SHURGARD ANNUAL REPORT 2024
159
• 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 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.
As of December 31, 2024, the ESG Committee consisted of five members: Z. Jamie Behar (Chairperson), Frank
Fiskers, Padraig McCarthy, Muriel De Lathouwer, and Candace Krol. Four members of the ESG Committee are
considered independent Board members, while Z. Jamie Behar is a non-independent director.
During the financial year 2024, the ESG Committee held four meetings where all committee members were
present.
GRI 2-12
REAL ESTATE INVESTMENT COMMITTEE
The Real Estate Investment Committee is authorized by the Board to review and approve all acquisitions or
disposal of assets, properties, or subsidiaries under €50 million.
As of December 31, 2024, the Real Estate Investment Committee consisted of four members: Lorna Brown
(Chairperson), Frank Fiskers, Z. Jamie Behar, and Tom Boyle. Lorna Brown and Frank Fiskers are considered
independent Board members, while Z. Jamie Behar and Tom Boyle are considered non-independent.
During the financial year 2024, the Real Estate Investment Committee held six meetings, where all committee
members were present.
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160
SENIOR MANAGEMENT
The Senior Management of the Group is made up of five members, four men (80%) and one woman (20%).
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 Senior Management
As of December 31, 2024, Senior Management owned the following numbers of shares, adding up to 325,455
shares or 0.33% of the total share capital.
The members of the Senior Management team must meet share ownership requirements proportional to their
fixed compensation over five years. This shareholding requirement was increased to 3.0 times the fixed
compensation for the Chief Executive Officer (previously 2.5x) and 2.0 times for all other Senior Management
members (previously 1.5x for the other Senior Mangement members, except the CFO who was already at 2.0x).
For all members except Isabel Neumann, 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 Neumann, this period began when she started in 2022 and therefore, she has until 2027 to comply
with this requirement.
Board Fees, Executive Remuneration, and Incentive Schemes
As part of our commitment to transparency and alignment with the CSRD requirements, we disclose information
on the fees of the Board members and the remuneration provided to our executive management. This includes
the integration of sustainability-related performance metrics in incentive schemes. The ESG Committee sets
annual incentive award targets for Senior Management through a performance-based cash bonus program,
rewarding their contributions to both financial and sustainability-related goals during the fiscal year.
Detailed information on the structure and amount of board fees, the sustainability-related performance criteria
for executive committee members, and incentive schemes is included in our Remuneration Report. This report
provides a comprehensive overview of how our remuneration practices align with our long-term strategy and
sustainability objectives. For more information, please refer to the Remuneration Report in the Annual Report.
1
Ammar Kharouf is a director of Shurgard Europe SNC/VOF, Shurgard Germany GmbH, Shurgard France SAS, Shurgard Luxembourg S.à r.l.,
Shurgard Nederland BV, Shurgard UK Ltd, and Shurgard Sweden AB.
Name Position Mandates Shurgard shares owned
Marc Oursin
Director /Chief Executive
Officer
CAG23 Capital 172,429
Jean Kreusch Chief Financial Officer Transforming Talent sprl, Sports Abroad asbl 87,756
Duncan Bell Chief Operating Officer No other directorship 15,389
Ammar Kharouf Director HR/Legal
1
No other directorship 44,981
Isabel Neumann Chief Investment Officer Belfius Bank & Insurance 4,900
SHURGARD ANNUAL REPORT 2024
161
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 14
th
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 2024, the Annual General Meeting of Shareholders took place on May 22 (further information can be found on
2024 Annual General Assembly | Shurgard Investor Relations).
STATUTORY AUDITOR (NON-ESRS DISCLOSURE)
During the financial year 2024 up to May 22, 2024, the Company’s independent statutory auditor (réviseur
d’entreprise agréé) was Ernst & Young LLP, of Royal Chambers, St Julian’s Avenue, St Peter Port, Guernsey. The
Annual General Meeting of Shareholders of 2024 has appointed PricewaterhouseCoopers CI LLP, P.O. Box 321,
Royal Bank Place, 1 Glategny Esplanade, St Peter Port, Guernsey, GY1 4ND as auditors for a term ending at the
Company’s annual general meeting of shareholders to be held in 2025.
The audit fees in 2024 were €849,921 for the audits of the consolidated and statutory financial statements of
the Company and its subsidiaries. Considering the audit-related assurance and other services, including the
limited review of the sustainability information, the total auditor’s remuneration was €1,153,243.
SHURGARD ANNUAL REPORT 2024
162
6.2 BUSINESS ETICS & 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
Human Rights 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
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ADVOCACY AND STAKEHOLDER ENGAGEMENT
The group is part of local trade associations for self storage. In 2024, the total amount of membership fees across
the group was around €58,675.
Association expenditures
2024
CISS (France) €6,700
Self Storage Association UK (UK) £10,962
NSSA (The Netherlands) €8,410
VDSU (Germany) €24,562
Self Storage Association (Sweden) SEK18,750
Belgian Self Storage association (Belgium) €2,470
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 2024, our employees participated in online training
about anti-bribery as part of our Code of Conduct refreshment training.
As part of its commitment to ethical business conduct and compliance with applicable laws, Shurgard has
established policies and procedures related to anti-bribery and anti-corruption. These policies apply to all
employees, including senior management and the Board of Directors.
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In the current reporting period, no specific bribery and corruption training was provided to members of the Board
of Directors or Executive Management. However, these individuals are expected to comply with the company’s
Code of Conduct, which includes provisions on ethical business practices, conflicts of interest, and anti-corruption
measures.
Shurgard recognizes the importance of continuous awareness and education on these topics and will periodically
assess the need for tailored training for senior leadership in alignment with best practices and regulatory
expectations.
Shurgard does not identify specific functions as being at heightened risk for corruption and bribery. Instead, we
recognize that all functions within the organization may be susceptible to such risks. As a result, we have
implemented company-wide policies, training, and controls to mitigate corruption and bribery risks across all
areas of our operations.
In 2024, 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. There were also
no convictions or fines imposed on Shurgard or its employees for violations of anti-corruption and anti-bribery
laws.
GRI 205-1 / 205-2 / 205-3
COMMUNITY CONTRIBUTION
Shurgard actively encourages employees to support their communities and participate in charitable initiatives.
Recognizing that employee giving is a vital part of engagement, we support staff contributions to organizing
activities for non-profit organizations we are involved with.
CONFLICT OF INTEREST
Shurgard wants its employees to remain neutral and independent when acting for the Company. Hence, conflicts
of interest are to be avoided by employees. If a conflict of interest is unavoidable, it must be disclosed at the
earliest opportunity.
All employees and Directors of the Board are required to annually complete a declaration relating to conflicts of
interest. This declaration serves as both a preventive measure and an awareness initiative, ensuring employees
and directors understand their responsibilities in identifying and managing potential conflicts.
Training programs on anti-corruption and anti-bribery are incorporated into onboarding processes for relevant
roles, emphasizing the importance of ethical behavior and compliance with legal and regulatory standards.
The annual conflict-of-interest declaration ensures 100% coverage of employees and board members, targeting
all functions identified as having potential exposure to corruption risks.
POLITICAL INFLUENCE AND LOBBYING ACTIVITIES
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)
Shurgard is not registered in the EU Transparency Register or in any equivalent transparency register in a Member
State.
In the current reporting period, none of the members of the Executive Committee or the Board of Directors of
Shurgard held positions in public administration, including regulatory bodies, in the two years prior to their
appointment.
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
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165
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 2024, employees completed their annual Code of Conduct refresher training, which includes guidance on
insider dealing to ensure compliance with regulations and company policies.
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
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 of this policy.
In 2024, employees completed their annual Code of Conduct refresher training, which includes guidance on
whistleblowing.
6.3 DATA AND CYBER SECURITY
In an era characterized by increased reliance on digital technologies and data, cybersecurity has become a great
concern. As cyber threats continue to evolve, 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 which all levels of the organization take seriously.
To address the challenges, we have implemented a robust cybersecurity program backed by clear key
performance indicators (KPIs). These KPIs provide a structured framework to monitor, assess, and continuously
improve our cybersecurity efforts. Beginning in 2025, more precise and targeted phishing simulations will be
conducted continuously, with the legal framework for these activities finalized in 2024. The insights gained will
inform an ad hoc cybersecurity training program, replacing the current annual training approach.
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We conduct annual security audits to evaluate our systems, while our cloud security initiatives are managed
through continuous monitoring and improvements. Additionally, an external attack surface analysis performed
in 2024 revealed no severe or critical vulnerabilities. This analysis has since evolved into a continuous monitoring
process in 2024, replacing traditional penetration testing.
The table below summarizes these KPIs, illustrating our commitment to proactive risk management and ensuring
that cybersecurity remains a priority across 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 in the risk of cyber-attacks and
the importance of data protection. In the financial year 2024, our employees were trained on cybersecurity issues,
and phishing simulation exercises were designed to securely test user behavior and increase employees’
awareness.
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 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.
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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 2024, we performed an external attack surface
analysis. It allowed us to practice making swift decisions with incomplete information against time constraints
and testing the knowledge of existing security incident responses.
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6.4 OUR “ETHICS & GOVERNANCE” FUTURE COMMITMENTS
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6.5 ESRS, EPRA & GRI GOVERNANCE PERFORMANCE MEASURES
GOVERNANCE PERFORMANCE MEASURES
GRI
Topic
Standard
EPRA
sBPR
Measure
ESRS
GOVERNANCE PERFORMANCE MEASURES
Storage
assets
Corporate
Own office
occupation
Pages
2-9
Gov-
Board
G1
Composition of the highest governance body N/A V N/A 169
2-10 Gov-Selec
G1
Process for nominating and selecting the highest
governance body
N/A V N/A 170
2-15
Gov-CoI
G1
Process for managing conflicts of interest
N/A
V
N/A
171
GOVERNANCE PERFORMANCE MEASURES
Composition of the Highest Governing Body
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2024
2023
Female
Male
Female
Male
2-9 Gov-Board
Number of executive board
members
0 1 0 1
Number of independent board
members
4 3 2 4
Number of non-executive board
members
5 4 3 5
Average tenure on the
governance body
4.3 years 3.7 years
Number of independent / non-
executive board members with
competencies relating to
environmental and social topics
7 6
Narrative on performance:
The Board of Directors (highest governance body) is currently composed of ten members, consisting of one
executive director and nine 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 plays a key role in overseeing the company’s ESG strategy and monitoring progress on ESG
objectives, ensuring sustainability-related matters are effectively integrated into the company’s governance
framework.
It is considered that all board members possess competencies related to environmental and social topics, as
evidenced by their biographies, professional mandates, and prior experience, including academic backgrounds,
industry expertise, and engagement in charitable or sustainability-focused activities. Additionally, through the
ESG Committee’s oversight, certain sustainability-related aspects are actively reviewed and discussed,
reinforcing the Board’s collective knowledge and commitment to ESG topics.
GRI 2-9
Fully reported: “V”
ESRS non-material voluntary disclosure: “/”
Not reported: “X”
Not applicable: “N/A”
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Process for Nominating and Selecting the Highest Governing Body
GRI Topic
Standard
EPRA sBPR
Measure
Indicator
2024 2023
2-10 Gov-Select
Composition of
the Board of
Directors
(Relevant for the reporting rules and did not change between 2023 and 2024 in
relation to the nomination and selection of the Directors; rules last reviewed
February 2024 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.
For more information on independence criteria of the Board of Directors please
refer to the part “Independence” in chapter 6.1.
Narrative on performance:
The rules for the nomination and selection of members of the Board of Directors have not changed since 2018.
The ESG Committee makes recommendations to the Board about the renewal of the directors’ mandates and the
nomination of new directors when requested. It is then the prerogative of the shareholders of the Company to
approve the mandates of the directors.
GRI 2-10
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171
Process for managing Conflicts of Interest
GRI Topic
Standard
EPRA sBPR
Measure
Indicator 2024
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. For more information on the conflict
of interest, please refer to the part “Conflict of Interest” in chapter 6.2.
GRI 2-15
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7. ASSURANCE & ESRS INDEX
7.1 ASSURANCE ON SUSTAINABILITY PERFORMANCE MEASURES
GRI 2-5
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7.2 LIMITED ASSURANCE ON NON-FINANCIAL INFORMATION
LIMITED ASSURANCE REPORT OF THE REGISTERED AUDITOR TO THE GENERAL SHAREHOLDERS’ MEETING
ON THE CONSOLIDATED SUSTAINABILITY STATEMENT OF SHURGARD SELF STORAGE LTD FOR THE
ACCOUNTING YEAR ENDED ON 31 DECEMBER 2024
We present to you our registered auditor’s report in the context of our limited assurance engagement on the
consolidated sustainability statement of Shurgard Self Storage Ltd. (the “Company”) and its subsidiaries (jointly
“the Group”) as foreseen by the Belgian Companies' and Associations' Code. The consolidated sustainability
statement of the Group is included in section “Sustainability Report 2024” of the “Annual Report 2024” on 31
December 2024 and for the year then ended (hereafter “the consolidated sustainability statement”).
Following the proposal formulated by the board of directors and following the recommendation by the audit
committee, we have been appointed by the board of directors by virtue of the engagement letter dated 26
February 2025 to perform a limited assurance engagement on the consolidated sustainability statement of the
Group.
Our mandate will expire on the date of the general meeting which will deliberate on the annual accounts for
the year ending 31 December 2024. This is the first year that we have performed our assurance engagement on
the consolidated sustainability statement.
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of the
Group.
Based on the procedures we have performed and the assurance evidence we have obtained, nothing has come
to our attention that causes us to believe that the consolidated sustainability statement of the Group, in all
material respects:
● has not been prepared in accordance with the requirements of article 3:32/2 of the Companies’ and
As
sociations’ Code, including compliance with the applicable European Sustainability Reporting Standards
(ESRS);
● is not in accordance with the process (the “Process”) carried out by the Group, as disclosed in note “3.2
Double Materiality Assessment”, to identify the information reported in the consolidated sustainability
statement on the basis of ESRS.
● does not comply with the requirements of article 8 of EU Regulation 2020/852 (the “Taxonomy
Regulation”) disclosed in note “4.7 EU Taxonomy” within the environmental information of the
sustainability report 2024.
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Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised),
Assurance engagements other than audits or reviews of historical
financial information
(“ISAE 3000 (Revised)”),
as applicable in Belgium.
Our responsibilities under this standard are further described in the “Registered auditor’s responsibilities for
the limited assurance of the consolidated sustainability statement”
section of our report.
We have complied with all ethical requirements that are relevant to limited assurance engagements of
sustainability statements in Belgium, including those related to independence.
We apply International Standard on Quality Management 1 (ISQM 1), which requires the registered audit firm to
design, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We have obtained from the board of directors and Company officials the explanations and information
necessary for performing our limited assurance engagement.
We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for
our conclusion.
Other matter
The scope of our work is limited to our limited assurance engagement regarding the consolidated sustainability
information of the Group. Our limited assurance engagement does not extend to information related to the
comparative figures included in the consolidated sustainability information.
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Responsibilities of the board of directors relating to the preparation of the consolidated sustainability
statement
The board of directors is responsible for designing and implementing a Process and for disclosing this Process
in note “3.2 Double Materiality Assessment” of the consolidated sustainability statement. This responsibility
includes:
● understanding the context in which the activities and business relationships of the Group take place
and developing an understanding of its affected stakeholders;
● the identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected
to affect the Group’s financial position, financial performance, cash flows, access to finance or cost of
capital over the short-, medium-, or long-term;
● the assessment of the materiality of the identified impacts, risks and opportunities related to
sustainability matters by selecting and applying appropriate thresholds; and
●
making assumptions that are reasonable in the circumstances.
The board of directors is further responsible for the preparation of the consolidated sustainability statement,
which includes the information established by the Process:
● in accordance with the requirements referred to in article 3:32/2 of the Companies’ and Associations’
Code, including the applicable European Sustainability Reporting Standards (ESRS);
● in compliance with the requirements of article 8 of EU Regulation 2020/852 (the “Taxonomy
Regulation”) disclosed in note “4.7 EU Taxonomy” of the “Annual Report 2024” related to the
environmental section.
This responsibility comprises:
● des
igning, implementing and maintaining such internal control that the board of directors determines
is necessary to enable the preparation of the consolidated sustainability statement that is free from
material misstatement, whether due to fraud or error; and
● the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the Group’s sustainability reporting process.
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Inherent limitations in preparing the consolidated sustainability statement
In reporting forward-looking information in accordance with ESRS, the board of directors is required to prepare
the forward-looking information on the basis of disclosed assumptions about events that may occur in the
future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated
events frequently do not occur as expected and the deviation from that can be of material importance.
Responsibilities of the registered auditor on the limited assurance engagement on the consolidated
sustainability statement
Our responsibility is to plan and perform the assurance engagement with the aim of obtaining a limited level of
assurance about whether the consolidated sustainability statement contains no material misstatements,
whether due to fraud or error, and to issue a limited assurance report that includes our conclusion.
Misstatements can arise from fraud or errors and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the decisions of users taken on the basis of the consolidated
sustainability statement.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we apply professional
judgment and maintain professional scepticism throughout the engagement. The work performed in an
engagement aimed at obtaining a limited level of assurance, for which we refer to the section "Summary of
Work Performed," is less in scope than in an engagement aimed at obtaining a reasonable level of assurance.
Therefore, we do not express an opinion with a reasonable level of assurance as part of this engagement.
As the forward-looking information in the consolidated sustainability statement and the assumptions on which
it is based, are future related, they may be affected by events that may occur in the future and possible future
actions by the Group. Actual outcomes are likely to be different from the assumptions, as the anticipated
events frequently do not occur as expected, and the deviation from that can be of material importance.
Therefore, our conclusion does not provide assurance that the reported actual outcomes will correspond with
those included in the forward-looking information in the consolidated sustainability statement.
Our responsibilities regarding the consolidated sustainability statement, with respect to the Process, include:
● Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
● Designing and performing work to evaluate whether the Process is consistent with the description of
the Process by the Group, “3.2 Double Materiality Assessment”.
Our other responsibilities regarding the consolidated sustainability statement include:
● Acquiring an understanding of the Group's control environment, the relevant processes, and
information systems for preparing the sustainability information, but without assessing the design of
specific control activities, obtaining supporting information about their implementation, or testing the
effective operation of the established internal control measures;
● Identifying where material misstatements are likely to arise, whether due to fraud or error, in the
consolidated sustainability statement; and
● Designing and performing procedures responsive to where material misstatements are likely to arise
in the consolidated sustainability statement. 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.
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Summary of work performed
A limited assurance engagement involves performing procedures to obtain evidence about the consolidated
sustainability statement. The procedures carried out in a limited assurance engagement vary in nature and
timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed.
The nature, timing, and extent of procedures selected depend on professional judgment, including the
identification of areas where material misstatements are likely to arise in the consolidated sustainability
statement, whether due to fraud or errors.
In conducting our limited assurance engagement with respect to the Process, we have:
● Obtained an understanding of the Process by:
○ performing inquiries to understand the sources of the information used by management
(e.g., stakeholder engagement, business plans and strategy documents); and
○ reviewing the Group’s internal documentation relating to its Process.
● Evaluated whether the evidence obtained from our procedures with respect to the Process
implemented by the Group was consistent with the description of the Process set out in note “3.2
Double Materiality Assessment”.
In conducting our limited assurance engagement, with respect to the consolidated sustainability statement, we
have:
● Obtained an understanding of the Group’s reporting processes relevant to the preparation of its
consolidated sustainability statement by obtaining an understanding of the Group’s control
environment, processes and information system relevant to the preparation of the consolidated
sustainability statement, but not for the purpose of providing a conclusion on the effectiveness of the
Group’s internal control.
● Evaluated whether the information identified by the Process is included in the consolidated
sustainability statement;
● Evaluated whether the structure and the presentation of the consolidated sustainability statement is
in accordance with the ESRS;
● Performed inquiries of relevant personnel and analytical procedures on selected information in the
consolidated sustainability statement;
● Performed substantive assurance procedures on selected information in the consolidated
sustainability statement;
● Evaluated the methods/assumptions for developing estimates and forward-looking information as
described in the section 'Responsibilities of the registered auditor on the limited assurance
engagement on the consolidated sustainability statement';
● Obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the consolidated
sustainability
statement
.
SHURGARD ANNUAL REPORT 2024
182
Statement related to independence
● Our registered audit firm and our network did not provide services which are incompatible with the
limited assurance engagement, and our registered audit firm remained independent of the Group in the
course of our mandate.
Diegem, 27 February 2025
The registered auditor
PwC Bedrijfsrevisoren BV/PwC Reviseurs d'Entreprises SRL
Represented by
Jeroen Bockaert*
Bedrijfsrevisor/Réviseur d'entreprises
*Acting on behalf of Jeroen Bockaert BV
SHURGARD ANNUAL REPORT 2024
183
7.3 ESRS CONTENT INDEX
ESRS CONTENT INDEX
Disclosure
Material
Link to disclosure
ESRS 2 – General disclosures
ESRS 2 BP-1:
General basis for preparation of sustainability
statements
N/A
3.1. Basis of preparation of the sustainability
statement
ESRS 2 BP-2: Disclosures in relation to specific
circumstances
N/A 3.1 Scope, context and objectives
ESRS 2 GOV-1:
The role of the administrative, management
and supervisory bodies
N/A
3.2 Governance
3.3 Governance and responsibilities
7.1 High governance standards
ESRS 2 GOV-2: Information provided to and sustainability
matters addressed by the undertaking’s administrative,
management and supervisory bodies
N/A
3.2 Governance
3.3 Governance and responsibilities
7.1 High governance standards
ESRS 2 GOV-3: Integration of sustainability-
related
performance in incentive schemes
N/A
3.2 Governance
3.3 Governance and responsibilities
7.1 High governance standards
ESRS 2 GOV-4: Statement on due diligence N/A
3.2 Governance
3.3 Governance and responsibilities
7.1 High governance standards
ESRS 2 GOV-5:
Risk management and internal controls over
sustainability reporting
N/A
3.2 Governance
3.3 Governance and responsibilities
7.1 High governance standards
ESRS 2 SBM-1: Strategy, business model and value chain N/A 3.2 Double materiality assessment
ESRS 2 SBM-2: Interests and views of stakeholders N/A 3.4 Double materiality assessment process
ESRS 2 SBM-3: Material impacts, risks and opportunities
and their interaction with strategy and business model
N/A 3.4 Double materiality assessment process
ESRS 2 IRO-1: Description of the processes to identify and
assess material impacts, risks and opportunities
N/A 3.4 Double materiality assessment process
ESRS 2 IRO-2: Disclosure requirements in ESRS covered by
the undertaking’s sustainability statement
N/A 3.4 Double materiality assessment process
ESRS E1 – Climate change
ESRS E1-1: Transition plan for climate change mitigation Yes
4.1 Transition to low carbon economy
4.6 EU Taxonomy
ESRS E1-2: Policies related to climate change mitigation
and adaptation
Yes
4.1 Transition to low carbon economy
4.2 Resilience of properties to climate risks
ESRS E1-3: Actions and resources in relation to climate
change policies
Yes
4.1 Transition to low carbon economy
4.2 Resilience of properties to climate risks
ESRS E1-4: Targets related to climate change mitigation
and adaptation
Yes
4.1 Transition to low carbon economy
4.2 Resilience of properties to climate risks
ESRS E1-5: Energy consumption and mix Yes
4. Environmental Information
4.1 Transition to low carbon economy
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E1-6: Gross Scope 1, 2, 3 and Total GHG emissions Yes
4. Environmental Information
4.1 Transition to low carbon economy
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E1-7: GHG removals and GHG mitigation projects
financed through carbon credits
Yes 4.1 Transition to low carbon economy
ESRS E1-8: Internal carbon pricing Yes 4.1 Transition to low carbon economy
ESRS E1-9: Potential financial effects from material
physical and transition risks and potential climate-
related
opportunities
Yes
4.1 Transition to low carbon economy
4.2 Resilience of properties to climate risks
ESRS E2– Pollution
ESRS E2-1: Policies related to pollution No Not applicable for Shurgard
ESRS E2-2: Actions and resources related to pollution No Not applicable for Shurgard
ESRS E2-3: Targets No Not applicable for Shurgard
SHURGARD ANNUAL REPORT 2024
184
ESRS E2-4: Pollution of air, water and soil No Not applicable for Shurgard
ESRS E2-5: Substances of concern and substances of very
high concern
No Not applicable for Shurgard
ESRS E2-6: Anticipated financial effects from pollution-
related impacts, risks and opportunities
No Not applicable for Shurgard
ESRS E3 – Water and marine resources
ESRS E3-1: Policies related to water and marine resources No 4.3 Save Water
ESRS E3-2:
Actions and resources related to water and
marine resources
No 4.3 Save Water
ESRS E3-3: Targets related to water and marine resources No 4.3 Save Water
ESRS E3-4: Water consumption No
4.3 Save Water
4.6 ESRS, EPRA & GRI environmental
performance measures
ESRS E3-5: Anticipated financial effects from water and
marine resources-related impacts, risks and opportunities
No 4.3 Save Water
ESRS E4 – Biodiversity and ecosystems
ESRS E4-1: Transition plan and consideration of biodiversity
and ecosystems in strategy and business model
No
Not applicable for Shurgard
ESRS E4-2: Policies related to biodiversity and ecosystems No
Not applicable for Shurgard
ESRS E4-
3: Actions and resources related to biodiversity
and ecosystems
No
Not applicable for Shurgard
ESRS E4-4: Targets related to biodiversity and ecosystems No
Not applicable for Shurgard
ESRS E4-5: Impact metrics related to biodiversity and
ecosystems change
No
Not applicable for Shurgard
ESRS E4-6: Anticipated financial effects from biodiversity
and ecosystem-related risks and opportunities
No Not applicable for Shurgard
ESRS E5 – Resource use and circular economy
ESRS E5-1:
Policies related to resource use and circular
economy
Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E5-
2: Actions and resources related to resource use
and circular economy
Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E5-3:
Targets related to resource use and circular
economy
Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E5-4: Resource inflows Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E5-5: Resource outflows Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS E5-6:
Anticipated financial effects from resource use
and circular economy-
related impacts, risks and
opportunities
Yes
4.4 Responsible resource use & waste
management
4.7 ESRS, EPRA & GRI environmental
performance measures
ESRS S1 – Own workforce
ESRS S1-1: Policies related to own workforce Yes Social Information
ESRS S1-2: Processes for engaging with own workers and
workers’ representatives about impacts
Yes 5.1 Safe and inclusive workplace
ESRS S1-3: Processes to remediate negative impacts and
channels for own workers to raise concerns
Yes 5.1 Safe and inclusive workplace
SHURGARD ANNUAL REPORT 2024
185
ESRS S1-4: Taking action on material impacts on own
workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce,
and effectiveness of those actions
Yes 5 Social Information
ESRS S1-5: Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Yes 5 Social Information
ESRS S1-6: Characteristics of the undertaking’s employees Yes 5 Social Information
ESRS S1-7: Characteristics of non-employee workers in the
undertaking’s own workforce
Yes 5 Social Information
ESRS S1-8:
Collective bargaining coverage and social
dialogue
Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-9: Diversity indicators Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-10: Adequate wages Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-11: Social protection Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-12: Persons with disabilities Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-13: Training and skills development indicators Yes 5.2 Invest in the development of our people
ESRS S1-14: Health and safety indicators Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-15: Work-life balance indicators Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-16:
Compensation indicators (pay gap and total
compensation)
Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S1-17:
Incidents, complaints and severe human rights
impacts and incidents
Yes
5.1 Safe and inclusive workplace
5.10 ESRS, EPRA & GRI social performance
measures
ESRS S2 – Workers in the value chain
ESRS S2-1: Policies related to value chain workers Yes
5.8 Encouraging ESG best-practices in our
supply chain
ESRS S2-2: Processes for engaging with value chain
workers about impacts
Yes
5.8 Encouraging ESG best-practices in our
supply chain
ESRS S2-3: Processes to remediate negative impacts and
channels for value chain workers to raise concerns
Yes
5.8 Encouraging ESG best-practices in our
supply chain
ESRS S2-4: Taking action on material impacts on value
chain workers, and approaches to mitigating material risks
and pursuing material opportunities related to value chain
workers, and effectiveness of those actions
Yes
5.8 Encouraging ESG best-practices in our
supply chain
ESRS S2-5: Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Yes
5.8 Encouraging ESG best-practices in our
supply chain
ESRS S3 – Affected communities
ESRS S3-1: Policies related to affected communities No 5.7 Positive impact on local communities
ESRS S3-2: Processes for engaging with affected
communities about impacts
No 5.7 Positive impact on local communities
ESRS S3-3: Processes to remediate negative impacts and
channels for affected communities to raise concerns
No 5.7 Positive impact on local communities
ESRS S3-4: Taking action on material impacts on affected
communities, and approaches to mitigating material risks
No 5.7 Positive impact on local communities
SHURGARD ANNUAL REPORT 2024
186
and pursuing material opportunities related to affected
communities, and effectiveness of those actions
ESRS S3-5: Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
No 5.7 Positive impact on local communities
ESRS S4 – Consumers and end-users
ESRS S4-1: Policies related to consumers and end-users Yes
5.5 Best-in class customer service
5.6 Customer privacy and safety
ESRS S4-2: Processes for engaging with consumers and end
users about impacts
Yes
5.5 Best-in class customer service
5.6 Customer privacy and safety
ESRS S4-3: Processes to remediate negative impacts and
channels for consumers and end-users to raise concerns
Yes
5.5 Best-in class customer service
5.6 Customer privacy and safety
ESRS S4-4: Taking action on material impacts on
consumers and end-
users and approaches to mitigating
material risks and pursuing material opportunities related
to consumers and end-
users, and effectiveness of those
actions
Yes
5.5 Best-in class customer service
5.6 Customer privacy and safety
ESRS S4-
5: Targets related to managing material impacts
on consumers and end-users
Yes
5.5 Best-in class customer service
5.6 Customer privacy and safety
ESRS G1 – Business conduct
ESRS G1-1: Corporate culture and business conduct policies
Yes
5.8 Encouraging ESG best-practices in our
supply chain
6.2 Business ethics and code of conduct
ESRS G1-2: Management of relationships with suppliers Yes
5.8 Encouraging ESG best practices in our supply
chain
ESRS G1-3: Prevention and detection of corruption or
bribery
Yes
6.2 Business ethics and code of conduct →
Anti-corruption and bribery
ESRS G1-4: Confirmed incidents of corruption or bribery Yes
6.2 Business ethics and code of conduct →
Anti-corruption and bribery
5.1 Safe and inclusive workplace
6.5 ESRS, EPRA & GRI governance performance
measures
ESRS G1-5: Political influence and lobbying activities Yes
6.2 Business ethics and code of conduct →
Political contributions
5.1 Safe and inclusive workplace
6.5 ESRS, EPRA & GRI governance performance
measures
ESRS G1-6: Payment practices Yes
5.8 Encouraging ESG best-practices in our
supply chain → Timely payment to suppliers
SHURGARD ANNUAL REPORT 2024
187
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.
2024 PERFORMANCE HIGHLIGHTS
As demonstrated throughout this annual report, 2024 has been an exceptional year for Shurgard, demonstrating
the successful execution of every part of the Company’s strategy with alignment of operational excellence,
development acumen through M&A and organic growth underpinned by efficient financing. Under the leadership
of our Senior Management, and with our Board’s oversight, the Company achieved significant performance
successes, including:
Record Property operating revenue
€406.7million
(+13.0% at CER)
EPRA NTA per share
€48.43
Dividend Per Share Growth
Record NOI
€267.7million
(+12.2% at CER)
EPRA NTA per share growth
+9.9%
Same store NOI margin
67.8%
(+0.4pp at CER)
Total Investment property value (incl. IPUC)
€6.4 billion (+26.8%)
Underlying EBITDA growth (at CER)
+12.2%
+
237K SQM
Added through acquisitions, developments, and
redevelopments
Record Adjusted EPRA earnings
€167.4 million
(+5.0% at CER)
ESG
Adjusted EPRA earnings per share
€1.71
(-3.0% at CER, due to c. 8% more
shares equity raise in 2023)
ESG
A GOLD MEDAL
at the EPRA Sustainability Best
Practices Recommendations (sBPR)
awards
Achieved 5-STAR GRESB
rating out of a maximum of
five stars.
Fourth year in a row
Sector Leader
SHURGARD ANNUAL REPORT 2024
188
In addition, the Company’s stock and total return have traded higher than various indices since IPO.
Stock performance
1
vs indices since IPO (Oct 2018)
Total performance, assuming reinvestment of dividends. The performance for Shurgard is based on the price at IPO (€23.00).
2024 COMPENSATION FRAMEWORK AND TARGETS FOR SENIOR MANAGEMENT
Senior Management compensation is structured with a balance of fixed and variable components, as well as
fringe benefits aligned with market practice, such as company cars or allowances and standard pension benefits.
In determining appropriate compensation levels, the Company also considers market benchmarks and
compensation studies to ensure competitiveness.
Given this framework, we firmly believe that the 2024 executive compensation is not only equitable but essential
in recognizing the Company’s strong performance amid significant macro-economic challenges. This carefully
structured compensation framework also reflects the invaluable contributions of each Senior Manager while
ensuring alignment with market best practices and competitive benchmarks, as validated by Willis Towers
Watson. By balancing performance-driven rewards with external market insights, the Company has upheld a fair,
strategic, and responsible approach to executive compensation. Therefore, the following is a summary of the ESG
Committee’s decision on the key components (fixed and variable) of the 2024 Senior Management compensation
program:
Framework of Short-Term Performance-Based Bonus Awards for all Senior Management
The annual performance-based cash bonus program is a critical component of the Company’s executive
compensation strategy, ensuring that Senior Management is directly incentivized to drive exceptional
performance and deliver long-term value. This program is designed to align leadership efforts with the
Company’s financial, operational, and strategic goals, reinforcing a high-performance culture that rewards
results. By tying compensation to measurable achievements, the program fosters accountability and motivates
senior managers to navigate challenges and seize opportunities that benefit the Company and its stakeholders.
The ESG Committee evaluates and sets annual incentive award targets, ensuring they remain competitive and
reflective of evolving business priorities, market conditions, and industry best practices. These targets may be
adjusted in the future to maintain a dynamic and results-driven approach to executive compensation.
Shurgard; 84
.0%
EURO STOXX
600;
72.6%
FTSE EPRA Nareit
;
-3.9%
-60%
-30%
0%
30%
60%
90%
120%
150%
180%
210%
30/09/2018
30/11/2018
31/01/2019
31/03/2019
31/05/2019
31/07/2019
30/09/2019
30/11/2019
31/01/2020
31/03/2020
31/05/2020
31/07/2020
30/09/2020
30/11/2020
31/01/2021
31/03/2021
31/05/2021
31/07/2021
30/09/2021
30/11/2021
31/01/2022
31/03/2022
31/05/2022
31/07/2022
30/09/2022
30/11/2022
31/01/2023
31/03/2023
31/05/2023
31/07/2023
30/09/2023
30/11/2023
31/01/2024
31/03/2024
31/05/2024
31/07/2024
30/09/2024
30/11/2024
SHURGARD ANNUAL REPORT 2024
189
The ESG Committee applies the highest level of diligence, scrutiny, and accountability in determining annual
performance-based cash bonuses, ensuring that Senior Manager compensation is both well-earned and aligned
with the Company’s strategic objectives. The ESG Committee carefully evaluates recommendations from the Chief
Executive Officer regarding the performance of other Senior Management members, conducting a rigorous review
to ensure that both individual and Company-wide achievements warrant the awards. Additionally, to uphold the
integrity and fairness of the process, the ESG Committee actively engages with the Chairman and the Board,
particularly when assessing the Chief Executive Officer’s performance. This disciplined and comprehensive
approach underscores the Company’s unwavering commitment to a compensation structure that rewards
excellence, drives sustained success, and reinforces a culture of accountability at the highest levels of leadership.
For the year ended December 31, 2024, our ESG Committee crafted clear Senior Manager compensation targets
that demanded excellence. These meticulously designed metrics, weighted for maximum impact, directly tied
rewards to both Company and individual achievements. With potential payouts spanning from 0% to 150% of
base salary, we are emphasizing our pay-for-performance culture. The ESG Committee’s process blended
financial and critical non-financial factors to ensure that our Senior Managers focus on true value creation for
our shareholders. These metrics and their respective weighting are noted below:
Executive position CEO All other executives
Amount of potential target 0%-150% of base salary 0%-150% of base salary
1
Revenue performance
All store growth 2024 vs 2023 above 7.5%
Same store growth 2024 vs 2023
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
2
(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.
2024 COMPENSATION DECISIONS
Our company achieved remarkable results across all key performance indicators, surpassing ambitious targets in
every category. Details of the financial and non-financial metrics used to assess performance for the annual
incentive plan can be found in the financial section of this Annual Report. Revenue performance soared, with all-
store growth exceeding 2023. Profitability metrics were equally impressive, as evidenced by substantial NOI same
store growth and an increase in adjusted EPRA earnings. The development and M&A initiatives were nothing
short of transformative, with new square footage additions surpassing 90,000 sqm in 2024 and an equally
impressive pipeline to date for 2025 and 2026.
SHURGARD ANNUAL REPORT 2024
190
Furthermore, our executives excelled in other critical areas, including the successful completion of strategic
projects, such as being the first European self-storage company to obtain an investment grade rating (BBB+
from S&P) which enabled us to access the market with our initial issue which was very well received by investors,
resulting in very attractive pricing, achieving top-tier ESG ratings, and outperforming industry peers in total
shareholder return. The Senior Management's bold and comprehensive approach, simultaneously accelerating
strategic implementation across operational, financial, and real estate development fronts, not only
demonstrates exceptional leadership but illustrates the benefits of the ESG Committee’s compensation
framework that directly incentivizes our Senior Managers to drive exceptional performance and deliver long-term
value, reinforcing a high-performance culture that rewards results. Therefore, the ESG Committee decided that
it warranted the allocation of the maximum short-term bonuses to reward and incentivize the remarkable efforts
driving this multifaceted transformation.
2024 CEO Compensation
This comprehensive outperformance across financial, operational, and strategic metrics demonstrates the major
value created by our leadership team. Therefore, in recognition of Mr. Oursin’s performance in 2024 and his
individual contribution, the ESG Committee approved, in accordance with the short-term performance-based
bonus program as indicated above, a cash bonus of €1,050,000, representing 150% of the base salary and the
maximum amount of the potential target to be paid in 2025. Mr. Oursin’s annual base salary for 2025 will remain
at €750,000.
2024 Compensation for executives other than our Chief Executive Officer
2024 base salaries for Mr. Kreusch
1
, Mrs. Neumann, Mr. Bell and Mr. Kharouf were €400,000, €400,000,
£300,000, and €300,000, respectively.
As indicated above, the company's bold and comprehensive approach, simultaneously accelerating strategy
implementation across operational, financial, and real estate development fronts, not only demonstrates
exceptional leadership but also warrants the allocation of maximum short-term bonuses to reward and
incentivize the remarkable efforts driving this multifaceted transformation. Therefore, the ESG Committee
awarded the following 2024 annual incentive bonuses, which will be paid in 2025, to the following executives:
Mr. Kreusch, €600,000; Mrs. Neumann €600,000; Mr. Bell, £450,000 and Mr. Kharouf €450,000.
1 As announced in October 2024 by the Company, following Jean Kreusch’s retirement, Thomas Oversberg has been appointed as the new Chief Financial
Officer, effective January 1, 2025.
SHURGARD ANNUAL REPORT 2024
191
For comparative purposes, the following summarizes Senior Management compensation over the last two years:
Name
and
position
Year
Fixed remuneration Variable remuneration
Total
Proportion of
fixed and
variable
remuneration
Base salary
All other
compensation
2
Short-term
performance- based
bonus
3
Equity
awards
4
Marc Oursin
Director/
CEO
2024 750,000 52,000 500,000 764,522 2,066,522
1 : 1.58
2023 500,000 52,000 500,000 938,325 1,990,325 1 : 2.61
Jean Kreusch
CFO
2024 400,000 32,796 350,000 464,826 1,247,622
1 : 1.88
2023 355,584 32,796 350,000 586,453 1,324,833 1 : 2.41
Duncan Bell
COO
2024 354,368
1
59,298 295,307 377,536 1,086,509
1 : 1.63
2023 295,307 26,814 295,307 469,163 1,086,591 1 : 2.37
Ammar
Kharouf
2024 300,000 104,157 250,000 377,536 1,031,693 1 : 1.55
Director
HR/Legal
2023 250,000 13,099 250,000 469,163 982,262 1 : 2.73
Isabel
Neumann
2024 400,000 5,225 288,000 405,890 1,099,115 1 : 1.71
CIO
2023 320,000 23,868 320,000 469,163 1,133,031 1 : 2.29
1 The amounts for Mr. Bell are converted from pound Sterling. The original Sterling value was £300,000 for 2024. As a constant exchange rate, we took the
average exchange rate of 2024.
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 2024. As a constant exchange rate, we took the
average exchange rate of 2024.
4 The total value of the equity award is spread over the vesting period and earned in the respective years as opposed to the full value of the stock options
and/or RSU attributed to the grant year. Additional information is available in Note 31 “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, 2024 amounted to €6,531,461.
2025 COMPENSATION AND TARGETS
In today's dynamic business landscape, our Company's success hinges on the caliber of our leadership. However,
our Senior Managers' base salaries have remained relatively stagnant for an extended period. This continuation
potentially could erode our competitive edge in attracting and retaining top-tier talent. Recognizing this critical
issue, our ESG Committee took decisive action by previously engaging Willis Towers Watson, a renowned
compensation expert, to conduct a comprehensive review of our Senior Managers' compensation packages. This
thorough analysis revealed a need to adjust base compensation. The proposed increase in Senior Management
base salaries is not merely a cost, but a strategic investment in our Company's future. By aligning our
compensation with market standards, we: (i) demonstrate our commitment to valuing and retaining our
exceptional leadership team, (ii) enhance our ability to attract high-caliber executives in a fiercely competitive
talent market, (iii) motivate our Senior Managers to drive innovation and growth, knowing their contributions are
fairly rewarded, and (iv) mitigate the risk of losing key leaders to competitors offering more competitive packages.
It sends a powerful message to stakeholders about our commitment to fair compensation and long-term value
creation. Salary increases are a crucial step in safeguarding our Company's competitive position, ensuring we
have the leadership talent necessary to navigate challenges and seize opportunities in an ever-evolving business
landscape.
SHURGARD ANNUAL REPORT 2024
192
Therefore, it was determined that the base salaries of the Senior Managers for 2025 will be adjusted as follows:
Mrs. Neuman will be increased from €400,000 to €450,000; Mr. Bell will be increased from £300,000 to
£350,000; and Mr. Kharouf will be increased from €300,000 to €350,000. Mr Oversberg, who was promoted to
CFO as of January 1, 2025, will have a base salary of €300,000.
For the year ending December 31, 2025, the ESG Committee determined that annual cash incentives can range
from 0% to 150% of a Senior Manager's annual salary. The awards will be based on various Company-wide
performance metrics and each Senior Manager’s individual performance as described in the following table:
Executive positions
CEO
All other executives
Amount of potential target
0 - 150% of base salary
0 - 150% of base salary
1
KPIs
Revenue performance
0 - 20%
0 - 20%
All Stores revenue growth 2025 vs 2024
Same Store revenue growth 2025 vs 2024
Adj. EPRA earnings per share growth & Same Store NOI
margin growth
0 - 35%
0 -30%
Adj. EPRA earnings per share growth 2025 vs 2024
Same Stores NOI margin % 2025 vs 2024
Development & M&A (all new sqm)
0 - 15%
0 - 25%
2025 total added new sqm above 90,000 sqm
2026 total potential added (inc. M&A) above 90,000 sqm
Other KPIs
0 - 30%
0 - 45%
Ex-Lok'nstore portfolio performance
Other projects
ESG (based on GRESB rating)
Shurgard share, TSR benchmark vs EPRA-
NAREIT EUR (50%)
and European Self Storage peers (50%)
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
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, of which
195,000 stock options were granted to Senior Management.
The key features of the stock options outstanding under the 2017 plan are as follows:
• Upon exercise, each stock option gives the right to one ordinary share;
• The stock options were granted for free;
• The stock options were exercisable in tranches of 25% per year from the first anniversary of the
date of the grant, so that the grant was fully vested after four years;
• The stock options have a term of 10 years;
• The stock options vest subject to customary service rules; and
• The exercise price of each stock option is €21.51.
SHURGARD ANNUAL REPORT 2024
193
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
905,000, of which 680,000 stock options were granted to Senior Management.
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 31 “Share-
based payment reserve” and “Share-based compensation expense” in the Notes to the consolidated financial
statements.
Equity Compensation Plan (2024)
The Company approved an equity compensation plan in May 2024 (the 2024 Plan). This plan enables the Company
to grant restricted stock units (RSUs) in 2024 and following years. The RSUs have a three-year “cliff” vesting
period. The Company may determine for future grants that the vesting is subject to the achievement of a
performance test as defined under the 2024 Plan.
The maximum number of RSU intended to be granted under the 2024 Plan is 2,000,000.
SHURGARD ANNUAL REPORT 2024
194
Initial grants took place on May 21, 2024 for a total of 129,105 RSUs, of which 59,480 were granted to the Senior
Management. 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.
A second grant took place on November 5, 2024 representing a total of 130,980 RSUs, of which 59,480 RSUs
were granted to Senior Management.
For additional information regarding the Company’s equity compensation plans please refer to Notes 23 and 31
“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 and restricted stock units held by each member of Senior
Management for all outstanding equity compensation plans, as of December 31, 2024.
Position Main conditions Financial year 2024
Plan Award date Vesting
date(s)
Expiration
date
Shares
awarded
originally
Awarded Vested Shares awarded
but still unvested
at year end
Director/
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 - 240,000 160,000
2024 plan 21/05/2024
05/11/2024
21/05/2027
05/11/2027
-
-
18,983
18,983
-
-
18,983
18,983
Total
690,000 37,966 240,000 197,966
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 - 150,000 100,000
2024 plan 21/05/2024
05/11/2024
21/05/2027
05/11/2027
-
-
12,124
12,124
-
-
12,124
12,124
Total 440,000 20,248 150,000 120,248
SHURGARD ANNUAL REPORT 2024
195
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 - 120,000 80,000
2024 plan 21/05/2024
05/11/2024
21/05/2027
05/11/2027
-
-
8,859
8,859
-
-
8,859
8,859
Total
345,000 17,718 120,000 97,718
Director
HR/Legal
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 - 120,000 80,000
2024 plan 21/05/2024
05/11/2024
21/05/2027
05/11/2027
-
-
8,859
8,859
-
-
8,859
8,859
Total 330,000 17,718 120,000 97,718
CIO
2021 plan 01/09/2021 01/09/2024
01/09/2026
31/08/2031 200,000 - 120,000 80,000
2024 plan 21/05/2024
05/11/2024
21/05/2027
05/11/2027
-
-
12,655
12,655
-
-
12,655
12,655
Total
200,000 25,310 120,000 105,310
SHURGARD ANNUAL REPORT 2024
196
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
2020 2021 2022 2023 2024
Senior Management remuneration
1
Director/CEO 1,262,797 1,672,360 2,008,816 1,990,325 2,066,522
CFO 858,034 1,114,380 1,336,390 1,324,833 1,247,622
COO² 632,319 837,150 1,091,575 1,086,591 1,086,509
Director HR/Legal 505,089 731,419 991,507 982,262 1,031,693
CIO N/A 562,761 942,249 1,133,031 1,099,115
Company Performance
Property operating revenue growth
3
5.5% 10.7% 11.0% 7.4% 13.7%
Adj. EPRA earnings growth
3
9.9% 11.0% 9.5% 10.3% 5.7%
Average share price per year (€)
33.30 44.62 48.17 42.63 40.56
Directors
700,000 700,000 797,500 790,000 742,500
Employees Average remuneration
(full-time equivalent basis)
41,537 44,598 48,059 51,932 50,757
4
1 For a detailed breakdown of Senior Management remuneration see the comparative table 2023-2024 above. The total value of the option/RSU 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/RSU 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.
4 The average remuneration in 2024 decreased as the Lokn’Store acquisition included many new employees with salaries below the average. Additionally,
turnover of more senior store employees contributed to the decrease.
MALUS AND CLAWBACK MECHANISMS
All outstanding equity compensation plans contain malus and claw back provisions.
EXCEPTION TO THE REMUNERATION POLICY
For the year ended December 31, 2024, 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 2024
197
COMPENSATION OF MEMBERS OF THE BOARD OF DIRECTORS IN 2024
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 2024 amounted to €742,500.
Name Position Committee membership Year Compensation in €
1
Ian Marcus Chairman
2024 140,000
2023 120,000
Marc Oursin Director/Chief
Executive Officer
N/A
N/A
Z. Jamie Behar Director
ESG (Chair), Real Estate ,
Audit
2024 100,000
2023 95,000
Muriel De Lathouwer Independent Director Audit, ESG
2024 80,000
2023 80,000
Olivier Faujour Independent Director Real Estate, ESG
2024 40,000
2023 60,000
Frank Fiskers Independent Director
ESG ,
Real Estate
2024 87,500
2023 95,000
Padraig McCarthy Independent Director Audit (Chair), ESG
2024 95,000
2023 95,000
Tom Boyle Director Real Estate
2024 70,000
2023 35,000
Lorna Brown Independent Director Real Estate (Chair), Audit
2024 77,500
2023 35,000
Paula Hay-Plumb Independent Director Audit
2024 35,000
2023 N/A
Candace Krol Independent Director ESG
2024 17,500
2023 N/A
Total 2024 742,500
2023 790,000
2
1 The compensation amounts listed above are gross amounts and do not include any applicable VAT or the deduction of any applicable withholding tax.
2 The total for the 2023 board remuneration includes the fees for board members who left the board in 2023 and who are not on the detailed compensation
table anymore as they received no board fees in 2024.
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 2024
198
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. We refer to the chapter on Double Materiality Assessment Process of our Sustainability Report.
Finally, Note 4 “Significant accounting judgements, estimates and assumptions” of our consolidated financial
statements forms an integral part of this 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, market 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, Director HR and Legal, 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 on a periodic basis.
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. 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 periodically,
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 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.
SHURGARD ANNUAL REPORT 2024
199
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 33 of the consolidated financial statements.
We also refer to the impacts, risks and opportunities identified in the framework of our double materiality
assessment in our Sustainability Report.
SHURGARD ANNUAL REPORT 2024
200
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
financing
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 unf
avorable terms (i.e.,
only expensive
lending options available), this could have a significant impact
on our interest expense
s
, 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
acquisitions
, 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 capital market conditions, i.e.,
should enable Shurgard to have access to funding at any
point in time. Funding requirements for investments and
timing for commitments are reviewed regularly. Shurgard
manages liquidity in accordance with Board approved
policies designed to ensure that the Group has adequate
funds for its ongoing needs.
We
have a financial policy
to maintain a low level of
indebtedness
(loan-to value at c. 25% with a short- to mid
-
term maximum of 35%
and
Net debt/ Underlying EBITDA
below 5.0x with a short
- to mid-term above 5.0x).
Financial covenants are tested
periodica
lly. We do not
currently believe there is a risk of breaching any of the
covenants contained in those financings.
The
d
irectors 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 2024
201
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 an
d development.
This
includes
all aspects of
risks potentially impacting our
revenue
, costs, capital expenses and legal
compliance
requirement
that might impact our investment criteria.
Projects are not pursued when they fail to meet the
required investment
criteria.
Integration of acquired properties follows a standard
process with the involvement of cross
-
departmental
specialists.
Performance of individual properties is benchmarked
against target returns and post
-
investment reviews are
undertaken.
Climate risk
We are exposed to climate 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.
Transition risks can be related to changes in regulations (e.g.
,
stranded assets, stricter energy efficiency requirements or
new carbon pricing mechanisms), technology (e.g.
, adoption
of new technologies or changes in the market demand),
reputation or resources scarcity.
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 Audit
Committee is responsible
for monitoring
the ESG reporting
process and the effectiveness of ESG controls
.
We
seek to obtain BREEAM certificates for
our new store
developments
, where relevant.
Additionally, our stores are
regularly inspected and maintained
while
following
sustainable principles where possible.
Climate related risk
assessments are performed on all our properties to identify
and register the applicable risks to the property (flood,
hurricane, earthquake, etc.). As a result, we deploy risk
mitigation
measures where necessary. We implemented an
Environmental Management System (
“EMS”
) to integrate
ESG processes, train personnel, review efficiency and report
on outcomes of environmental commitments.
We plan to be
O
perational Net-Zero Carbon by 2030 and Material Net
-
Z
ero by 2040.
We
also actively seek out external advice
to ensure
compliance with the applicable ESG framework.
SHURGARD ANNUAL REPORT 2024
202
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 available 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 a large and experienced development team
dispersed across our markets and
a flexible
development
strategy. Thanks to our efficient and scalable operating
platform, as well as the limited building requirements
needed
to operate self-storage properties
and remotely
managed stores, we can consider a wide range of
opportunities, including buildings requiring conversion or
buildings that might appear too small for
our competitors.
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
term
s that restrict the operation of our business.
As we are a publicly listed company, we also must comply with
a large amount of ongoing reporting and disclosure
requirements. Any failure
to
meet these requirements could
result in significant penalty fees.
Shurgard is committed to conducting business with respect
to laws and its values. Our
business Code of c
onduct is a
guidebook for putting these values into practice. This
c
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
advis
ers. 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
s
afety, fire, building permits, consumer protection and
data privacy.
SHURGARD ANNUAL REPORT 2024
203
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.
We 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 and
contracting, construction sites and budgeting
and
invoicing.
SHURGARD ANNUAL REPORT 2024
204
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, pu
blicly 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
s could be materially adverse.
The COVID
-19 pandemic forced us to adapt our way
of
operat
ing our business and our self-
storage properties, both
from an employee a
nd 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
most recent pandemic, we
did not
identify any uncertainties that would cast any doubt on
Shurgard’s ability to continue as a going concern
.
Our
performance during the Covid pandemic
was 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 2024
205
Price War
Competitors may offer lower prices, better locations, better
services, or other attractive features in any given property’s
catchment area, which may heighten competition for
customers. Local market conditions have a significant impact
on our business. This impacts the prices we can set, and from
time
to
time additional competition has lowered occupancy
levels and rental revenue of our properties in specific markets.
Aggressive price discounting measures by our competitors
(i.e.
,
a price war) can have a significantly negative impact on
our property operating revenue from activities at affected
properties. Also, increased pricing transparency because of the
increasing prevalence of online pricing, may increase pricing
pressure in our markets.
The self-storage industry is very fragmented across Europe.
The presence of Shurgard in seven different markets
dilutes the price risk.
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 severe weather events.
Property damage
could also be caused by catastrophic events
inside a store, such as power outages, fires, flooding, plumbing
problems, or other issues, such as infestation.
Moreover, our properties can be damaged or destroyed by acts
of violence, civil unrest or terrorist attacks or accidents,
including accidents linked to the goods stored.
We are also subject to potential liability relating to damage to
customer goods. Such damage can arise from a variety of
factors, such as fire, flooding, pest infestations and moisture
infiltration, which can result in mold or other damage to our
customers
’ property, as well as potential health concerns.
Although we maintain reasonable liability cover where
possible, certain types of losses may be either uninsurable or
not economically insurable in some countries, such as losses
due to hurricanes, tornadoes, riots, acts of war or terrorism. In
such circumstances, we would remain liable for any debt or
other financial obligation related to that 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 customers can and
cannot do with their unit. Additionally, every customer
must sign an insurance contract or prove that the
customer’s goods are adequately covered by personal
insurance. Staff training on all operational procedures,
including health and safety, and fire is continuously
updated.
The Group manages its insurable risks relating to property
damage, business interruption (“PDBI”) and customer
goods
-related claims through a combination of self
-
insurance and commercial insurance coverage. For this, the
Group uses a reinsurance undertakin
g.
All our stores are equipped and monitored by fire alarms,
instruction alarms and CCTV. Store access is secured by a
new access system fully implemented in our stores.
We have a
Crisis Management Plan
designed to be used if
necessary.
SHURGARD ANNUAL REPORT 2024
206
Public Relations (“PR”)
As a listed company, Shurgard maintains transparency for its
investors. This is a legal requirement and can significantly
impact the share price and the placing of Shurgard's shares
on the market. Additionally, the group must remain
responsive in its public relations efforts in the event of any
developments.
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
include: failure to quickly respond
to PR issues,
inadequate public communication and response plan,
inadequate monitoring of news media, negative press
on/from competitors affecting the Company’s image.
Our Investors Relations function is supported by external
advis
e
rs to communicate with investors and the market.
Investor Relations and the executive team conduct
non-
deal
roadshow
s every year
to meet investors and to promote good
communication
with
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
s
up a communication plan to address the main
risks it
may face. The management team undertakes
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
understanding
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
legislative updates and employees are regularly trained.
When needed, specific
projects are set up to address the
implementation of new regulatory requirements.
SHURGARD ANNUAL REPORT 2024
207
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 c
ontrols 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 risk profile
s
.
Investments are not pursued when they fail to meet our
set return targets.
The p
erformance 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
the
knowledge and
expertise
of the management team 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 approximately 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
supports
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 2024
208
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 o
ur 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.
As part of our ongoing commitment to safeguarding our
properties and customer goods, we have implemented a
comprehensive security enhancement program, aiming to
further strengthen the security at all our properties.
The program includes different initiatives such as
personalized access control, continuous CCTV monitoring,
and real
-
time access detection, reinforced fencing, and
improved online customer identification.
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
logos, 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
in certain specific situations.
Public Storage and Shurgard management are in regular
contact regarding the use of the
trademarks.
The
Relationship Agreement will terminate 75 years after its
commencement date, 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 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
markets, in order to anticipate the effect on our earnings
and decide on whether we
can and should
adjust our prices
accordingly.
When changes apply, our policies and procedures are
updated accordingly, and training is provided to relevant
employees.
SHURGARD ANNUAL REPORT 2024
209
Valuation
The valuation of our portfolio has continued to grow over the
year
s, resulting from the portfolio expansion
, operational
performance of the assets
and tightening of the cap rates
.
Investment property valuation is inherently subject to
judgment and
volatility,
leading to a degree of uncertainty.
The value of our properties might decline resulting from the
evolution of the local real estate markets in which we operate.
Independent valuations are conducted regularly by
experienced, independent and qualified valuers, who have
significant experience in the self
-storage industry.
Internal controls are implemented effectively to mitigate
key risks related to valuation.
We refer to the section
Fair
Value Measurement
Valuation of Notes to the
consolidated
financial statements,
for more information about the
valuation process and risks.
Fraud
Fraud poses a potential risk in the self
-
storage industry,
increasing exposure to regulatory and reputational risks.
Customers may attempt to rent units using false information
or for illegal activities, while payment fraud, such as
chargebacks, can impact revenue. Internal fraud, including
employee misconduct or mismanagement of assets, also
presents a risk.
As fraud tactics evolve, we remain vigilant to the financial,
operational, and compliance
-
related impacts of fraudulent
activities.
We strive to maintain operational integrity and protect the
interests of our customers and stakeholders.
Our approach to fraud risk includes stringent internal
controls, regular audits, and enhanced security measures
such as digital access and identity verification for all
customers and employees.
We also invest in employee training to identify and mitigate
potential fraud risks. We continuously monitor transactions
for compliance with operating procedures.
Our Whistleblowing policy has procedures for disclosing
malpractice and, together with our Code of Conduct, is
intended to act as a deterrent to fraud or other corruption
or serious malpractice.
Material Misstatement
Risk of financial misstatement due to complex accounting
estimates and judgments in areas such as asset valuations,
provisions, impairments, and accruals which require
management discretion,
Market pressures, regulatory requirements, and evolving
accounting standards further heighten the risk
The company maintains a strong control framework to
mitigate the risk of material misstatement in financial
reporting.
Our Code of Conduct, policies, and tone at the top reinforce
integrity and accountability. Key internal controls include
invoice and payment reviews, order approvals, and IT-
automated checks, supported by controlling functions for
second
-line oversight.
Senior management reviews financial data, ensuring
accuracy and compliance.
SHURGARD ANNUAL REPORT 2024
210
RELATED PARTY TRANSACTIONS
We are engaged in certain commercial and financial transactions with related parties. Please refer to Note 32 of
the consolidated financial statements for further details.
RESPONSIBILITY STATEMENT
By order of the Board, we confirm to the best of our knowledge that:
• the consolidated financial statements of Shurgard presented in this annual report
1
and established
in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets,
liabilities, financial position and results of Shurgard and its subsidiaries included within the
consolidation taken as a whole;
• and the management report presented in this annual report includes a fair review of the position
and performance, business model and strategy of Shurgard and the subsidiaries included within
the consolidation taken as a whole, together with a description of the principal risks and
uncertainties they face.
London, February 27, 2025
Marc Oursin Thomas Oversberg
Director / CEO CFO
1 This report is also a Directors' report for the purposes of section 248 et seq. of the Companies (Guernsey) Law, 2008 (as amended).
SHURGARD ANNUAL REPORT 2018
211
CONSOLIDATED FINANCIAL
STATEMENTS AS OF AND FOR
THE YEAR ENDED DECEMBER
31, 2024
SHURGARD ANNUAL REPORT 2024
212
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED DECEMBER 31, 2024
(in € thousands)
Notes
December 31, 2024
December 31, 2023
Real estate operating revenue
5
406,5 03
357,92 3
Real estate operating expense
6
(138,9 43)
(12 0,470)
Net income from real estate operations
267 ,560
237 ,453
General, administrative and other expenses
7
(27,568)
(25,961)
Of which depreciation and amortization expense
(4,121)
(3,377)
Royalty fee expense
32
(4, 008)
(3,531)
Other expenses
8
(6 ,932)
(9 21)
Operating profit before property related adjustments
229 ,052
207,040
Net valuation gain from investment property and investment
14,15
331,073
29 4,350
property under construction and gain on disposal
Operating profit
560,125
501,390
Finance costs
9
(40 ,647)
(23,390)
Finance income
6,018
3,120
Profit before tax
525,496
481,120
Income tax (expense) / income
10
(121,81 8)
53,283
Attributable profit for the year
403,678
534,403
Profit attributable to non-controlling interests
25
827
1, 090
Profit attributable to ordinary equity holders of the parent
4 02,851
533,313
Earnings per share in €, attributable to ordinary equity
holders of the parent:
Basic, profit for the year
13
4.13
5. 91
Diluted, profit for the year
13
4.11
5.89
SHURGARD ANNUAL REPORT 2024
213
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2024
(in € thousands)
December 31, 2024
December 31, 2023
Profit for the year
403,678
534,403
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Foreign currency translation reserve
1
59,08 7
22,298
Net other comprehensive income, net of tax, that may be reclassified to
profit or loss in subsequent periods
59,08 7
22,298
Net other comprehensive income / (loss), net of tax, not to be
reclassified to profit or loss in subsequent periods
122
(23)
Total comprehensive income for the year, net of tax
462,887
556,678
Attributable to non-controlling interests
(827)
(1,09 0)
Attributable to ordinary equity holders of the parent
462,060
555,588
1 The movement in the foreign currency translation reserve for the year ended December 31, 2024 mainly consists of translation gains recognized on translation
of assets and liabilities and statements of profit and loss of our UK operations €74.9 million, partially offset by translation loss for our Swedish €15.7 million
and Danish operations €0.1 million.
The movement in the foreign currency translation reserve for the year ended December 31, 2023 mainly consisted of translation gains realized on translation
of assets and liabilities and statements of profit and loss of our UK €21.0 million and Swedish €1.9 million operations partially offset by translation losses for
our Danish operations €0.6 million.
SHURGARD ANNUAL REPORT 2024
214
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2024
(in € thousands)
Notes
December 31, 2024
December 31, 2023
Assets
Non-current assets:
Investment property
14
6,249,911
4 ,929,819
Investment property under construction
14
160,629
105,9 51
Property, plant and equipment
16
3,434
2,482
Intangible assets
16
13,839
7,657
Deferred tax assets
10
147
891
Other non-current assets
17
6,690
8,977
Total non-current assets
6,434,650
5,055,7 77
Current assets:
Trade and other receivables
18
29,566
1 9,730
Other current assets
19
1 5,707
19,722
Cash and cash equivalents
20
142,575
258,118
Current assets, excluding assets held for sale
187,848
29 7,570
Assets held for sale
657
530
Total current assets, including assets held for sale
188,50 5
298,100
Total assets
6,623,155
5,353,877
Equity and liabilities
Equity
Issued share capital
21
70,287
69,449
Share premium
22
875,758
831,94 0
Share-based payment reserve
23
16 ,877
12,798
Distributable reserves
24
358,938
472,835
Other comprehensive loss
(56,9 38)
(116,147)
Retained earnings
2,746,19 3
2 ,343,342
Total equity attributable to equity holders of the parent
4,011,115
3,6 14,217
Non-controlling interests
8 ,732
7,905
Total equity
4,019 ,847
3,622,122
Non-current liabilities:
Interest-bearing loans and borrowings
26,28
1,350,563
698,441
Deferred tax liabilities
10
781,898
698,836
Lease obligations
26,27
140,021
106,389
Total non-current liabilities
2,272,482
1,503,666
Current liabilities:
Interest-bearing loans and borrowings
26,28
129,9 66
99,950
Lease obligations
26,27
6,009
4,427
Trade and other payables and deferred revenue
29
183,997
118,174
Income tax payable
10, 854
5,538
Total current liabilities
330,8 26
228,08 9
Total liabilities
2,603,308
1,731,755
Total equity and liabilities
6,623,155
5,353,877
SHURGARD ANNUAL REPORT 2024
215
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2024
Other
Total
Share-Compre-attributable Non-
Issued based hensive to shareholders con-
share Share payment Distributable (loss) Retained of the trolling Total
(in € thousands)
Notes
capital
1
premium
1
reserve
reserves
1
gain
2
Earnings
1
Company
interests
equity
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
5,839
294,565
-
 - - -
300,404
-
300,404
Transaction costs incurred in connection with issuance
-
(2,712)
-
 - - -
(2,712)
-
(2,712)
of equity
Allocation to distributable reserves
-
-
 -
430,850
-
(430, 850)
-
 - -
Cash dividends on ordinary shares declared and paid
-
-
-
(104,292)
-
 -
(104,292)
-
(104,292)
Share based compensation expense
-
-
4,236
-
 - -
4,236
-
4,236
Net profit
-
-
-
 - -
533,313
533,31 3
1,090
534,403
Other comprehensive gain
-
-
-
 -
22,275
-
22,275
-
22,275
On December 31, 2023
69,449
831,940
12,79 8
472,835
(116,147)
2,343,342
3,614,217
7,905
3,622,122
On January 1, 2024
69,449
831,940
12,798
472,835
(116,147)
2,343,342
3,6 14,217
7 ,905
3,622,122
Proceeds from issuance of equity
21,22
43
1,292
-
 - - -
1,335
-
1,335
Transaction costs incurred in connection with issuance
22
-
(62)
-
 - - -
(62)
-
(62)
of equity
Cash dividends on ordinary shares declared and paid
21,22,24
795
42 ,588
-
(113,897)
-
 -
(70,5 14)
-
(70,5 14)
Share based compensation expense
-
-
4,079
-
 - -
4,079
-
4,079
Net profit
-
-
 - - -
402,8 51
402,851
827
4 03,678
Other comprehensive gain
-
-
 - -
59,209
-
59,209
-
59,209
On December 31, 2024
70,287
875,758
16,877
358,938
(56,938)
2,746,1 93
4,011,115
8 ,732
4, 019,847
1 On May 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 for all years presented 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 as of December 31, 2024, and December 31, 2023, respectively) and a gain of €0.3 million and €0.2 million, respectively, for our Belgian pension plans.
SHURGARD ANNUAL REPORT 2024
216
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024
(in € thousands)
Notes
December 31, 2024
December 31, 2023
Operating activities
Profit for the year before tax
525,4 96
481,120
Adjustments to reconcile profit before tax to net cash flows:
Net valuation gain on investment property and investment
14,15
(331,073)
(294,350)
property under construction and gain on disposal
Depreciation and amortization expense
16
4,121
3,377
Share-based compensation expense
23
4,079
4,286
Finance cost, net
9
34,629
20,270
Working capital movements:
Change in trade receivables, other current and non-current
17,18,19
8,229
(6,28 0)
assets
Change in other current and non-current liabilities and
deferred revenue
29
(4,76 0)
11,344
Income tax paid
(32 ,126)
(32,406)
Cash flows from operating activities
208,595
18 7,361
Investing activities
Capital expenditures on investment property under
construction and completed investment property
14
(147,167)
(111,901)
Capital expenditures on property, plant and equipment
16
(722)
(117)
Acquisition of investment properties and other assets, net
12,14
(766,796)
(68,16 9)
Proceeds from disposal of investment property
19
9,569
-
Acquisition of intangible assets
16
(4,123)
(3,304)
Interest received
6,018
3,120
Cash flows from investing activities
(903,221)
(1 80,371)
Financing activities
Proceeds from the issuance of equity
21,22
1,335
300,402
Payment for equity issuance costs
22
(62)
(2,712)
Proceeds from debt issuance and drawings on credit facilities
26,28
1,315,000
160, 000
Repayment of debt issued and drawings on credit facilities
26,28
(625, 000)
(1 60,000)
Payment for debt issuance costs
26,28
(11,662)
(2,584)
FX premium paid on forward contract
26,28
(4,269)
-
Repayment of principal amount of lease obligations
27
(4 ,709)
(4,341)
Cash dividends on ordinary shares paid to company’s
24
(70,514)
(104,292)
shareholders
Interest paid
28
(31,869)
(24,096)
Cash flows from financing activities
568,250
16 2,377
Net decrease in cash and cash equivalents
(126,376)
169,367
Effect of exchange rate fluctuation
10,833
1,406
Cash and cash equivalents on January 1
258,118
87,345
Cash and cash equivalents at the end of the year
142,575
258,118
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NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
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TABLE OF CONTENTS
1. Corporate information .......................................................................................................................................................... 219
2. Changes in accounting policies and disclosures ........................................................................................................... 221
3. Summary of material accounting policy information ................................................................................................. 222
4. Significant accounting judgements, estimates and assumptions .......................................................................... 232
5. Real estate operating revenue .......................................................................................................................................... 233
6. Real estate operating expense .......................................................................................................................................... 234
7. General, administrative and other expenses ................................................................................................................. 234
8. Other expenses ...................................................................................................................................................................... 234
9. Finance costs .......................................................................................................................................................................... 235
10. Income tax ............................................................................................................................................................................... 235
11. Segment information ........................................................................................................................................................... 240
12. Acquisition of properties ..................................................................................................................................................... 244
13. Earnings per share (“EPS”) ................................................................................................................................................. 244
14. Investment property and investment property under construction ....................................................................... 246
15. Fair value measurement – investment property ......................................................................................................... 247
16. Property, plant and equipment and intangible assets ................................................................................................ 251
17. Other non-current assets..................................................................................................................................................... 251
18. Trade and other receivables ................................................................................................................................................ 251
19. Other current assets ............................................................................................................................................................. 252
20. Cash and cash equivalents ................................................................................................................................................. 252
21. Issued share capital .............................................................................................................................................................. 253
22. Share premium ...................................................................................................................................................................... 253
23. Share-based payment reserve .......................................................................................................................................... 253
24. Distributable reserves and distributions made ............................................................................................................. 254
25. Non-controlling interests .................................................................................................................................................... 254
26. Interest-bearing loans and borrowings .......................................................................................................................... 254
27. Leases ....................................................................................................................................................................................... 257
28. Analysis of movements in interest-bearing loans and borrowings ........................................................................ 257
29. Trade and other payables and deferred r evenue ........................................................................................................ 258
30. Pensions ................................................................................................................................................................................... 258
31. Share-based compensation expense .............................................................................................................................. 259
32. Related party disclosures ..................................................................................................................................................... 261
33. Financial risk management objectives and policies .................................................................................................... 262
34. Capital management ............................................................................................................................................................ 266
35. Insurance and loss exposure .............................................................................................................................................. 267
36. Contingencies and commitments ..................................................................................................................................... 270
37. List of consolidated entities ................................................................................................................................................ 271
38. Events after the reporting period ..................................................................................................................................... 272
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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.
The Group has been listed on Euronext Brussels since October 15, 2018 (ticker “SHUR”).
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
selfstorage properties consisting primarily of sales of storage products (merchandise) and protection of
customers’ stored goods.
As of December 31, 2024, we operate 335 self-storage stores including 17 stores under management contract
(276 self-storage facilities as of December 31, 2023, including one store under management contract) in France,
the Netherlands, the United Kingdom (UK), Sweden, Germany, Belgium, and Denmark.
BAS
IS 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 and have been properly prepared in
accordance with the requirement of the Companies (Guernsey) Law, 2008.
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
• Defined benefit pension plans, for which the assets are measured at fair value. Pension plan
liabilities are measured according to the projected unit credit method.
The consolidated financial statements are presented in euros and all values are rounded to the nearest thousand,
except where otherwise indicated.
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, the
costs involved by the transition to a low carbon economy or changes to legislation and regulation;
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• 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 and
have in turn an impact on the claim charges or such liabilities;
• Governments 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.
Shurgard’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 36 as commitments.
As an example, Shurgard targets the replacement of its existing gas heating in all its heated stores, with heat-
pumps by 2029. In doing so, the Group will incur future capital expenditures. However, currently, these
replacements are expected - for a significant 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.
GOING CONCERN
The financial statements are prepared based on the going concern assumptions. This is based on a forecast of
the Group’s future cash flows. In doing so, the Group considered changes to the principal risks, considering
information for at least, but not limited to, twelve months from the date of approval of the financial statements
(going concern period), that might have an impact on the Group’s cash flows and in place covenants and existing
committed borrowing facilities.
The 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 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.
The Group also performed a reverse stress test, which showed that property values could largely more decrease
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.
Finally, 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 a going concern basis in preparing these financial statements.
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SIGNIFICANT EVENTS AND TRANSACTIONS
Events and/or transactions significant to an understanding of the changes since December 31, 2023, have been
included in the Notes of these consolidated financial statements and mainly relate to:
• In 2024, Shurgard completed several acquisitions of self-storage and development properties
across Germany, France, the Netherlands, and the United Kingdom. The most significant
transactions are outlined below:
- February 2024: acquired six Pickens Self-Storage properties in Germany for a total cash
consideration of €120 million, expanding our footprint by 31,300 net sqm.
- August 2024: acquired Lok’nStore for £378 million (equivalent to €439.9 million) and assumed
liabilities of £47.8 million (equivalent to €55.3) (immediately paid after acquisition), adding
171,000 sqm to our UK portfolio (including pipeline). The acquisition was initially funded
through a bridge financing arrangement, which was subsequently settled using proceeds from
the Eurobonds issuance in October 2024.
• In August 2024, a half-year dividend of €0.58 per share (gross) was issued, offering shareholders
the choice to receive the dividend in cash or shares (optional scrip dividend). A total of 80% of
shareholders elected to receive shares, resulting in the issuance of 1,114,194 new shares. These
newly issued shares carry the same rights and benefits as the existing shares, including eligibility
for future dividends.
• On 16 October 2024, Shurgard issued €500 million in Eurobonds, maturing in October 2034. The
bonds carry a fixed coupon rate of 3.625%. Rated BBB+ by S&P, the proceeds from this issuance
were utilized to fully repay the bridge financing arranged in connection with the acquisition of
Lok’nStore.
2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
The accounting policies adopted in the preparation of the 2024 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, 2023, except for the adoption of amended standards effective as of January 1, 2024. The
Group has not early adopted any other standard, interpretation or amendment that has been issued but is not
yet effective.
AMENDMENTS TO IAS 1 “PRESENTATION OF FINANCIAL STATEMENTS: CLASSIFICATION OF LIABILITIES AS
CURRENT OR NON-CURRENT”
The amendments affect only the presentation of liabilities in the statement of financial position — not the
amount or timing of recognition of any asset, liability income or expenses, or the information that entities
disclose about those items.
AMENDMENTS TO IAS 7 “STATEMENT OF CASH FLOWS” AND IFRS 7 “FINANCIAL INSTRUMENTS”
The amendment describes the characteristics for which reporters will have to provide additional disclosures
regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
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AMENDMENTS TO IFRS 16 “LEASES”: LEASE LIABILITY IN A SALE AND LEASEBACK
The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction,
specifically where some or all the lease payments are variable lease payments that do not depend on an index
or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines ‘lease
payments’ and ‘revised lease payments’ in a way that does not result in the seller-lessee recognizing any amount
of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial
termination of a lease continue to be recognized when they occur as these relate to the right of use terminated
and not the right of use retained.
The adoption of these new standards and amendments did not have an impact on the presentation of our
consolidated financial statements.
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
at December 31, 2024. 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 relevant
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.
Profit 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.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction.
If 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.
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PROPERTY 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.
Where 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.
BUSINESS 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.
FOREIGN 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 EUR, 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.
Differences 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 .
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Non-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
non-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.
SEGMENT 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 (“the Executive Committee”).
INVESTMENT 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 than 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.
Investment 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.
Cash outflows related to the acquisition of investment property and property under construction are classified
as an investing activity in the consolidated statement of cash flows.
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LEASES
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.
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease.
COMPANY 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.
Lease 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 Loan to Value (LTV) and non-commercial character of the underlying
asset.
Lease 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 .
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Right-of-use assets are initially 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.
Except 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 future 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.
PROPERTY, 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.
Subsequent 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.
Property, 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.
When 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.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included
in profit or loss.
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INTANGIBLE 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.
Capitalized 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.
Research 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.
BORROWINGS
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.
Borrowings 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.
Covenants that the Group is required to comply with, on or before the end of the reporting period, are considered
in classifying loan arrangements with covenants as current or non-current. Covenants that the Group is required
to comply with after the reporting period do not affect the classification in the current and prior year.
BORROWING 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.
The 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 .
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CASH 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.
For 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.
RENT 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 .
TRADE 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.
REVENUE 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 coverage”).
This fee income from customer goods coverage 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.
Revenue 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”.
SHURGARD ANNUAL REPORT 2024
229
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.
Tenant 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.
Amounts 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.
EMPLOYEE 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.
Bonuses 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.
SHURGARD ANNUAL REPORT 2024
230
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 .
TERMINATION 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 their present value.
SHARE-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.
The 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 share based
payment reserve 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.
INCOME 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.
The 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.
SHURGARD ANNUAL REPORT 2024
231
Deferred 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.
Deferred 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.
For 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.
The 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.
The 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.
EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing:
• The 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:
• The 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).
FAIR 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.
SHURGARD ANNUAL REPORT 2024
232
Fair 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 :
• In 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.
The 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.
A 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.
All 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.
DIVIDEND
The company recognizes a liability to pay a dividend when the distribution is authorized, and the distribution is
no longer at the discretion of the Company. A distribution is authorized when it is approved by shareholders. A
corresponding amount is recognized directly in equity.
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 .
ESTIMATES 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.
SHURGARD ANNUAL REPORT 2024
233
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.
JUDGEMENTS
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.
DETERMINATION 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, 2024
December 31, 2023
Rental revenue
1
357,757
312,550
Fee income from customer goods coverage
2
37,961
33,683
Ancillary revenue
3
10,963
11,468
Property operating revenue
406,681
357,701
Other revenue – net
4
(178)
222
Real estate operating revenue
406,503
357,923
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, except for UK, to which IFRS 17 applies (Note 35).
3 Ancillary revenue consists of merchandise sales and other revenue from real estate operations.
4 Other revenue – net is negative as costs incurred exceeded management fees earned, resulting in a net loss.
SHURGARD ANNUAL REPORT 2024
234
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, 2024
December 31, 2023
Payroll expense
47,067
42,138
Real estate and other taxes
22,936
19,313
Repairs and maintenance
13,944
13,280
Marketing expense
11,888
9,887
Utility expense
6,083
3,939
Impairment losses on receivables
1
6,962
5,465
Cost of insurance and merchandise sales
2
4,592
4,556
Other operating expenses
2,3
25,471
21,892
Real estate operating expense
138,943
120,470
1 Impairment losses on receivables for the year ended December 31, 2024 includes €5.9 million loss on debtors and €1.1 million collection fees and other
expense. For the year ended December 31, 2023, it included €4.6 million loss on debtors and €0.9 million collection fees and other expense.
2 For the year ended December 31, 2024, the aggregate of cost of insurance and merchandise sales and other operating expense included €3.1 million captive
re-insurance revenue and €2.8 million captive re-insurance service expense in scope of IFRS 17.
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.
3 The increase is driven by €1.1 million in non-deductible VAT, €0.9 million in IS and €1.2 million in bank charges.
7. GENERAL, ADMINISTRATIVE AND OTHER EXPENSES
General, administrative and other expenses for the years concerned consists of the following:
(in € thousands)
December 31, 2024
December 31, 2023
Payroll expense
14,018
12,211
Share-based compensation expense
4,426
4,183
Capitalization of internal time spent on development of
investment property
(4,646)
(4,233)
Depreciation and amortization expense
4,121
3,377
Other general and administrative expenses
1
9,649
10,423
General, administrative and other expenses
27,568
25,961
1 Other general and administrative expenses mainly include legal, consultancy and audit fees and non-deductible VAT. The year-on-year decrease in other
general and administrative expense is mainly attributable to €1.3 million decreased abandoned project cost and €0.5 million decreased consultancy fee
expense, partially offset by €0.4 million increased irrecoverable VAT .
8. OTHER EXPENSES
Other expenses for the year ended December 31, 2024 consists of €3.2 million implementation cost for our new
ERP system, and €3.7 million integration cost regarding the Lok’nStore acquisition.
For the year ended December 31, 2023, other expenses consisted of €0.7 million non-recurring implementation
cost for our new ERP system and €0.2 million cost incurred for equity issuance.
SHURGARD ANNUAL REPORT 2024
235
9. FINANCE COSTS
Finance costs comprise the following:
(in € thousands)
December 31, 2024
December 31, 2023
Interest on debts and borrowings
34,165
21,819
Interest on lease obligations
4,700
3,585
Capitalized borrowing costs
1
(2,608)
(2,157)
Interest expense
36,257
23,247
Foreign exchange loss
2
4,390
143
Finance costs
40,647
23,390
1 The capitalization rate of the borrowing costs was on average 2.92% and 2.53% in 2024 and 2023, respectively. We primarily capitalize these borrowing costs
as investment property under construction (Note 14).
2 Foreign exchange loss for the year ended December 31, 2024 mainly includes the exchange loss we incurred in connection with the deal contingent forward
(Note 26).
10. INCOME TAX
INCOME TAX EXPENSE
(in € thousands)
December 31, 2024
December 31, 2023
Current tax expense
34,869
29,419
Deferred tax expense / (income)
86,949
(82,702)
Income tax expense / (income)
121,818
(53,283)
Profit before tax
525,496
481,120
Effective tax rate
1
23.2%
N/A
2
1 The average effective current income tax rates based on adjusted EPRA earnings before tax for the year ended December 31, 2024 is 17.2% (15.7% last year).
2 The December 31, 2023 effective tax rate is impacted by the Company’s entry to the UK REIT regime as per March 1, 2023. In connection with the Group
becoming a REIT, the ETR for the first half of 2023 was impacted by an income of €158.7 million, mainly consisting of the reversal of deferred tax liabilities.
Tax expenses 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:
(in € thousands)
December 31, 2024
%
December 31, 2023
%
Profit before tax
525,496
481,120
Expected tax based on local tax rates
127,391
24.2
124,329
25.8
Disallowed expenses
2,646
0.5
452
0.0
Non-taxable income (including UK REIT exemption)
(27,290)
(5.2)
(17,097)
(3.5)
Non recognition of DTA on current year tax losses
4,133
0.8
(4,245)
(0.9)
Prior year adjustments and other changes to the
deferred tax balances
15,155
2.9
4,637
1.0
Impact of changes to substantively enacted tax rates
(158)
(0.0)
(262)
0.0
Other (excluding the tax adjustment on entry to the
UK REIT regime)
(59)
(0.0)
54
0.0
Tax expense for the year
121,818
23.2
107,868
22.4
Tax adjustment on entry to the UK REIT regime
-
(161,151)
Tax expense for the year
121,818
23.2
(53,283)
N/A
SHURGARD ANNUAL REPORT 2024
236
“ Prior year adjustments and other changes to the deferred tax balances” relate to events in the current reporting
yea
r 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 2024, these adjustments mainly relate to Germany (€9.3
million), Luxembourg (€3.2 million), the Netherlands (€1.6 million) and France (€0.8 million).
DEFERRED TAXES
The movement in deferred tax assets and liabilities during the year ended December 31, 2023 is as follows:
(Charged)/ Charged to
credited to the other
January 1, statement of comprehensive Credited
December 31,
(in € thousands)
2023
profit or loss
income
to equity
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)
Deferred Tax
(780,122)
82,702
(475)
(50)
(697,945)
Asset/(Liabilities), net
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 14 and 15); and
• A de
crease of deferred tax liabilities related to the UK REIT conversion in March 2023 .
SHURGARD ANNUAL REPORT 2024
237
The movement in deferred tax assets and liabilities during the year ended December 31, 2024 is as follows:
(Charged)/
credited to Charged to
the statement other
January 1, of profit or comprehensive Credited
December 31,
(in € thousands)
2024
loss
income
to equity
2024
Deferred tax assets:
Tax loss carry-forwards
6,261
(107)
(9)
-
6,145
Deductible temporary
2,391
370
(3)
-
2,758
differences
Total Deferred tax assets
8,652
263
(12)
-
8,903
Deferred tax liabilities:
Investment property
(703,746)
(86,512)
3,157
-
(787,103)
Other taxable temporary
(2,851)
(702)
-
-
(3,553)
differences
Total Deferred tax liabilities
(706,597)
(87,214)
3,157
-
(790,654)
Deferred Tax
(697,945)
(86,951)
3,145
-
(781,751)
Asset/(Liabilities), net
Reflected in our statement of
financial position as follows:
Deferred tax assets
891
-
-
-
147
Deferred tax liabilities
(698,836)
-
-
-
(781,898)
Net deferred tax liabilities as of December 31, 2024 amount to €781.8 million, of which €6.1 million relates to
recognized tax losses carried forward and €787.1 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 14 and 15).
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.
The 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
€6.1 million as of December 31, 2024.
For the year ended December 31, 2024, the Group has tax losses carried forward of €271.0 million (prior year:
€253.9 million), of which €48.1 million (prior year: €42.2 million) are subject to recapture rules. In total,
€222.9 million (prior year: €211.7 million) tax losses are available indefinitely for offsetting against future taxable
profits of the entities in which the losses arose.
No deferred tax assets have been recognized in respect of these losses, as currently it is not probable that
su
fficient 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 €54.8 million
(prior year: €51.3 million).
SHURGARD ANNUAL REPORT 2024
238
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 €1.0 million for the year ended December 31, 2024,
would be payable (€0.9 million for the year ended December 31, 2023).
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.
The 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 impacted the effective tax rate per December
31, 2023. Excluding this impact, the effective tax rate would have been 22.4%. For the year ended December
31, 2024 the benefit resulting from the UK REIT status amounted to €27.2 million. Excluding this impact, the
effective tax rate would have been 29.7%.
The 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 a 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”:
• Pillar 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.
SHURGARD ANNUAL REPORT 2024
239
The 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.
During 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 is effective for the Group as of
January 1, 2024. Subsequently, several amendments were enacted into law.
UK, Belgium, 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.
The Group is closely monitoring the legislative and administrative progress in the countries it is currently present,
to ensure it is able to comply with the legislation as enacted and the guidance issued by the OECD and the local
tax administrations in the jurisdictions in which the Group operates.
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 for Pillar Two purposes 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 2024, considering only adjustments that would have been required or allowed applying the enacted
legislation.
Based 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 harbor 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, 2024, the Group had unrecognized deferred tax assets,
mainly in connection with tax losses carried forward, for a total amount of approximately €54.8 million.
In 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 2024
240
11. SEGMENT INFORMATION
For earnings from investment property, discrete financial information is provided on an operating segment basis
to 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 self-developed properties stores operating for more
than three full years as of January 1 and acquired properties’ stores operating for one full years as of January 1.
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, 2024, and excluding the properties we operate under management contract, the Company
operated 318 self-storage properties (compared to 276 self-storage facilities as of December 31, 2023), excluding
any stores under management contract. Based on these criteria, 244 self-storage stores met the same store
definition.
The non-same store facilities segment comprises any other self-storage facilities (74) that we have acquired or
self-developed.
Ro
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.
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.
The below table sets forth segment data for the years ended December 31, 2024 and 2023 based on the 2024
same store/non-same store definition:
(in € thousands)
December 31, 2024
December 31, 2023
Same store facilities
353,703
335,445
Non-same store facilities
52,978
22,256
Property operating revenue
406,681
357,701
Same store facilities
239,802
226,152
Non-same store facilities
27,936
11,079
Income from property (NOI)
267,738
237,231
SHURGARD ANNUAL REPORT 2024
241
The 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, 2024
December 31, 2023
Income from property (NOI)
267,738
237,231
Add: Other revenue-net
(178)
222
Net income from real estate operations
267,560
237,453
Other income and expenses
257,936
243,667
Profit before tax
525,496
481,120
Management believes that Real estate operating expense is the only material item to be disclosed at a segmental
level.
(in € thousands)
December 31, 2024
December 31, 2023
Same store facilities 113,901 109,293
Non-same store facilities 25,042 11,177
Real estate operating expense
138,943
120,470
SHURGARD ANNUAL REPORT 2024
242
SEGMENT INFORMATION BY COUNTRY FOR THE YEAR ENDED DECEMBER 31, 2024
(in € thousands)
France
The
UK
Sweden
Germany
Belgium
Denmark
Total
Netherlands
Same store facilities
82,
294
75,454
72,510
45,002
33,192
28,626
16,625
353,703
Non-same store facilities
6,948
9,412
19,183
1,918
15,517
-
 - 52,978
Property operating revenue
89,242
84,866
91,693
46,920
48,709
28,626
16,625
406,681
Same store facilities
51,724
54,176
45,922
32,532
23,441
20,051
11,956
239,802
Non-same store facilities
3,083
6,234
9,200
1,157
8,262
-
 - 27,936
Income from property
54,807
60,410
55,122
33,689
31,703
20,051
11,956
267,738
Investment property
1,229,822
1,147,306
1,834,264
653,314
819,609
326,308
239,288
6,249,911
Investment property under
construction
2,729
18,193
61,219
-
78,488
-
 - 160,629
Property, plant and equipment
731
321
4,584
126
109
11,383
19
17,273
and intangible assets
Deferred tax assets
-
66
79
2
-
 - - 147
Other non-current assets
895
277
809
37
675
3,979
18
6,690
Non-current assets
1,234,177
1,166,163
1,900,955
653,479
898,881
341,670
239,325
6,434,650
SHURGARD ANNUAL REPORT 2024
243
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
80,
033
70,304
67,433
44,642
30,355
26,890
15,788
335,445
Non-same store facilities
5,344
7,099
3,736
1,469
4,608
-
 - 22,256
Property operating revenue
85,377
77,403
71,169
46,111
34,963
26,890
15,788
357,701
Same store facilities
50,748
50,268
42,344
31,978
21,278
18,232
11,304
226,152
Non-same store facilities
1,559
4,793
2,005
667
2,055
-
 - 11,079
Income from property
52,307
55,061
44,349
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
 -
3,673
53,548
-
48,730
-
 - 105,951
construction
Property, plant and equipment
413
127
110
95
149
9,245
-
10,139
and intangible assets
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 finalized in the first half of 2024.
SHURGARD ANNUAL REPORT 2024
244
12. ACQUISITION OF PROPERTIES
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.
2024
ACQUISITIONS
Country
No. of properties acquired
United Kingdom
28
Germany
12
France
1
The Netherlands
1
These acquisitions have been accounted for as acquisitions of assets, with the acquisition cost (total of
€787.7 million, including €21.0 million capitalized transaction costs and €21.7 million net other 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, 2024
December 31, 2023
Earnings per share basic €
4.13
5.91
Earnings per share diluted €
4.11
5.89
The basis of calculation of each of the above measures set out above, are illustrated below.
SHURGARD ANNUAL REPORT 2024
245
EARNINGS 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, 2024
December 31, 2023
Profit attributable to ordinary equity holders of the parent
402,851
533,313
for basic earnings
Weighted average number of ordinary shares for basic EPS
97,641,112
90,213,362
Earnings per share basic €
4.13
5.91
Effect of dilution:
(in € thousands, except for shares and earnings per share)
December 31, 2024
December 31, 2023
Profit attributable to ordinary equity holders of the parent
402,851
533,313
for dilutive earnings
Weighted average number of ordinary shares for basic EPS
97,641,112
90,213,362
Dilutive effect from share options
297,314
317,682
Weighted average number of ordinary shares adjusted for the
effect of dilution
97,938,426
90,531,043
Earnings per share diluted €
4.11
5.89
There 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 2024
246
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, 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
3
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
As of December 31, 2023
4,823,442
106,377
4,929,819
105,951
5,035,770
December 31, 2024
As of January 1, 2024
4,823,442
106,377
4,929,819
105,951
5,035,770
Exchange rate differences
43,690
451
44,141
1,843
45,984
Addition of ROU assets
1
 -
18,816
18,816
-
18,816
Remeasurement of ROU assets
1
 -
2,771
2,771
-
2,771
Transfers for new development
78,541
-
78,541
(78,541)
-
Capital expenditure
3
84,176
-
84,176
103,435
187,611
Acquisition of investment property
4
738,434
16,628
755,062
33,453
788,515
Net gain (loss) of fair value adjustment
5
340,577
(3,992)
336,585
(5,512)
331,073
As of December 31, 2024
6,108,860
141,051
6,249,911
160,629
6,410,540
1 At initial 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,
2024, investment property includes €117.6 million (2023: €90 million) at fair value and €43.0 million (2023: €16 million) at cost, as a reasonable approximation
of fair value.
As of December 31, 2024, investment property under construction includes €94.0 million that are measured at fair value and €43.0 million that are measured
at cost, as 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, 2024, capital expenditure includes €4.6 million capitalized internal time spent, €2.6 million capitalized interest and
€21.0 million capitalized transaction costs we incurred on our acquisitions.
For the year ended December 31, 2023, capital expenditure includes €4.3 million capitalized internal time spent and €2.2 million capitalized interest and
€1.1 million capitalized transaction costs we incurred on our acquisitions.
4 In 2024, we acquired twenty-eight self-storage facilities and seven self-storage facilities under development in the UK, twelve self-storage facilities in
Germany and one self-storage facility in both France and the Netherlands, with an IP and IPUC and right of use IP value of €738.4 million, €33.5 million and
€16.6 million, respectively. These acquisitions have been accounted for as acquisition of assets, whereby the cost of the acquisitions 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 2024 a €0.2 million supplement on the purchase price it paid for properties that it
acquired in Germany in the last quarter of 2023.
5 Valuation gain from investment property and investment property under construction and gain on disposal of €307.5 million for the year ended December
31, 2024 (€294.4 million in 2023) .
SHURGARD ANNUAL REPORT 2024
247
Reconciliation 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, 2024
December 31, 2023
Market value of completed investment property and investment 6,202,599 4,910,375
property under construction estimated by the external valuer
Properties acquired valued at their acquisition cost
20,945
-
Projects under pre-development valued at historical cost
1
42,992
16,042
Addition of lease obligations recognized separately
2,953
2,976
Investment property ROU assets
141,051
106,377
Total fair value
6,410,540
5,035,770
1
Historical cost is the proxy for fair value.
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 duration 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 year ended
December 31, 2024 as compared to the year ended December 31, 2023.
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).
SHURGARD ANNUAL REPORT 2024
248
VALUER 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:
• C&W has 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.
Outside 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.
MARKET 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.
MACROECONOMIC ENVIRONMENT
In response to evolving climate risks, the Group has incorporated climate-related factors into the measurement
of fair values for their investment properties. These considerations include the potential impact of physical
climate risks (such as flooding, storms, and extreme weather events) and transition risks (such as regulatory
changes, energy efficiency requirements) on the cashflows from related properties, marketability, and long-term
sustainability.
Growing market demand for energy-efficient and sustainable buildings has influenced the projected occupancy
rates and rental income for some properties. The Group has considered potential changes in tenant preferences
for sustainable buildings, which may impact both cash flows and property values.
The Group’s property valuations have been prepared by independent external valuers who incorporate climate-
related factors where relevant. Climate-related assumptions, including expected increases in operational costs
and potential capital expenditures for climate resilience, have been factored into the discounted cash flow
models used to value properties. Outside 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.
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.
VALUATION 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 assets at the end of the tenth year.
SHURGARD ANNUAL REPORT 2024
249
Assumptions:
The following assumptions have been applied by C&W for the valuation of our investment properties for the
years concerned:
December 31, 2024
December 31, 2023
Stabilized occupancy
1
90.90%
91.39%
Average time to stabilization
1
(months)
7.29
6.41
Weighted average exit capitalization rate
2
5.11%
5.22%
Weighted average annual discount rate
3
8.15%
8.27%
Average rental growth rate year 1
4
2.57%
2.57%
1 Stabilized 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, 2024, 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 €162.7 million.
Purchaser’s costs in the range of approximately 0.6% 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 2.1 to 12.5%
are assumed on the notional sales in the tenth year in relation to freehold and long leasehold stores. Both
assumptions have changed by a non-material amount to capture legislative and taxation changes implemented
in local markets.
SHORT 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.
The 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 the expiration date.
INVESTMENT PROPERTIES UNDER CONSTRUCTION
C&W has valued the properties in development (except where Shurgard is in process of getting the permit) 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.
CHANGES IN VALUATION TECHNIQUES
There were no other changes in valuation techniques during the years concerned.
HIGHEST 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.
SHURGARD ANNUAL REPORT 2024
250
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, 2024 and 2023, our investment property is a Level 3 fair market value
measurement, and for the years concerned, there have been no transfers to or from Level 3.
The 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 €331.1 million in 2024 and €294.4 million in 2023 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”.
SENSITIVITY 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.
For the year ended December 31, 2024, 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
(in € thousands) (decrease) valuation % change
One hundred basis points increase in occupancy rates
22,255
0.36%
One hundred basis points decrease in occupancy rates
(23,474)
-0.38%
Twenty- five basis points increase (real) in both discount and capitalization rate
(268,571)
-4.35
Twenty-five basis points decrease (real) in both discount and capitalization rate
297,318
4.81%
One hundred basis points increase in average rental growth rates
162,485
2.85%
One hundred basis points decrease in average rental growth rates
173,805
-3.05%
For 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:
Amount increase
(in € thousands) (decrease) valuation % change
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%
SHURGARD ANNUAL REPORT 2024
251
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
Equipment
assets
1
equipment
assets
Historical cost
As of January 1, 2024
1,578
5,781
4,054
11,413
17,872
Additions
2
407
315
1,259
1,981
4,123
Acquisition of intangible assets
3
 - - - - 4,822
Remeasurements
-
 -
5
5
-
Disposals
-
 -
(1,169)
(1,169)
-
Exchange rate differences
3
(2)
3
4
322
As of December 31, 2024
1,988
6,094
4,152
12,234
27,139
Depreciation and impairment
On January 1, 2024
(782)
(5,496)
(2,653)
(8,931)
(10,215)
Depreciation and amortization charge for the year
(78)
(233)
(725)
(1,036)
(3,085)
Disposals
-
 -
1,159
1,159
-
Exchange rate differences
2
4
-
6
-
As of December 31, 2024
(856)
(5,725)
(2,219)
(8,800)
(13,300)
Net book value
As of December 31, 2024
1,132
369
1,933
3,434
13,839
As of January 1, 2024
796
285
1,401
2,482
7,657
1 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.
2 Additions to intangible assets consists of capitalized computer software.
3 Intangible assets acquired consists the Lok’nStore tradename (€1.2 million) and the value of the management contract business acquired from Lok’nStore
(€3.6 million).
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 issuance cost incurred in connection with the revolving
syndicated loan facility and the term loan facility (see Note 26).
As of December 31, 2024, other non-current assets includes €1.6 million unallocated transaction costs for future
acquisitions, €2.7 million of debt issuance cost was incurred in connection with the term loan facility we entered
into in April 2023 and the new revolving credit facility we entered into in November 2024.
As of December 31, 2023, other non-current assets included €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.
18. TRADE AND OTHER RECEIVABLES
(in € thousands)
December 31, 2024
December 31, 2023
Gross amount
37,655
26,215
Impairment for receivables
(8,089)
(6,485)
Trade and other receivables
29,566
19,730
SHURGARD ANNUAL REPORT 2024
252
Rent and service charge receivables are non-interest-bearing and are typically due within 30 days (Note 33). The
receivables are due from local retail and business tenants.
The following table sets forth the movement of our provision for credit loss:
(in € thousands)
December 31, 2024
December 31, 2023
As of January 1
6,485
5,224
Impairment provision expensed during the year - net
5,862
4,571
Write-off doubtful debt
(4,194)
(3,438)
Additions from investment property acquisitions
216
-
Other
(354)
106
Exchange gain
74
22
As of December 31
8,089
6,485
19. OTHER CURRENT ASSETS
(in € thousands)
December 31, 2024
December 31, 2023
Prepayments
7,579
4,616
Prepaid income taxes
1,419
3,164
Other current assets
1
6,709
11,942
Other current assets
15,707
19,722
1 Other current assets includes inventories, recoverable VAT and other. During 2024, other assets were decreased by €9.6 million in connection with the
settlement of a receivable resulting from the sale of one of our Dutch properties in 2022. The remaining increase for the year includes among other increases
for receivables from entities for which we operate properties under management contract (€1.2 million) and irrecoverable VAT (€0.7 million),
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 the immediate cash requirements of the
Group, and earn interest at the respective short-term deposit rates.
(in € thousands)
December 31, 2024
December 31, 2023
Cash at banks and on hand
131,205
64,292
Short-term deposits
11,370
193,826
Cash and cash equivalents
142,575
258,118
There are no cash and cash equivalents which are restricted from withdrawal or general corporate use as of
December 31, 2024 and December 31, 2023.
SHURGARD ANNUAL REPORT 2024
253
21. ISSUED SHARE CAPITAL
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.
In connection with the dividend distribution of September 16, 2024, the Group issued 1,114,194 new ordinary
shares at a subscription price of €38.94 per share to shareholders that had opted to contribute their dividend
rights of 80.12% of their shares into Shurgard in exchange for new shares. Of the €43,383,149 subscription price,
€795,166 has been allocated to share capital and the remainder has been allocated to share premium.
During the year ended December 31, 2024, the Group issued 60,708 new shares to satisfy the exercise of stock
options under the Group’s 2017 and 2018 stock option plans. Of the €1,335,493 subscription price, €43,326 has
been allocated to share capital and the remainder has been allocated to share premium.
As of December 31, 2024, the share capital of the Company as presented in the statement of financial position
of €70,287,010 is represented by 98,486,798 ordinary shares that all have been fully paid up.
22. SHARE PREMIUM
As of December 31, 2023, the share premium of the Company amounts to €831,939,518.
In connection with the dividend distribution of September 16, 2024, and the issuance of 1,114,194 new ordinary
shares (Note 21), the share premium was increased by €42,587,983, representing the part of the subscription
price of the issuance of new shares that has not been allocated to share capital.
During 2024, in connection with the issuance of 60,708 new ordinary shares, the share premium was increased
by €1,292,167, representing the part of the subscription price of the issuance of new shares that has not been
allocated to share capital.
During the year ended December 31, 2024, the share capital was reduced by €61,839 for equity issuance costs
incurred.
As of December 31, 2024, the share premium of the Company amounts to €875,757,828.
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, 2023, the share-based payment reserve of the Company amounts to €12,798,426.
During the year ended December 31, 2024, we recognized a share-based compensation expense of €4,078,769
for our 2021 and 2024 equity-settled share-based compensation plan in share-based payment reserve.
As of December 31, 2024, the share-based payment reserve of the Company amounts to €16,877,195.
SHURGARD ANNUAL REPORT 2024
254
24. DISTRIBUTABLE RESERVES AND DISTRIBUTIONS MADE
As of December 31, 2023, the Company’s distributable reserves were €472,834,788.
On May 29, 2024, the Company paid €57,43 3,434 dividend in connection with the distribution of a final dividend
of 2023 of €0.59 per outstanding share.
On September 26, 2024, the Company distributed €56,462,886 dividend in connection with the distribution of a
half-year dividend of 2024 of €0.58 per outstanding share. The half-year dividend has been settled partially in
new shares (€43,383,349) and partially in cash (€13,079,737).
As o
f December 31, 2024, the Company’s distributable reserves are €358,938,468.
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 at the end of 2023
and 2024 in Germany. We allocated €0.8 million and €1.2 million of net income to non-controlling interests during
the years ended December 31, 2024 and 2023, respectively, based upon their respective interests in the net
income of the subsidiaries.
During the year ending December 31, 2024, there were no transactions with non-controlling interests (2023:nil).
26. INTEREST-BEARING LOANS AND BORROWINGS
Effective
(in € thousands) interest rate Maturity December 31, 2024 December 31, 2023
Non-current
Senior guaranteed notes – issued July 2014
3.24%
July 24, 2024
- 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
Term loan facility – loan 1 – June 2024
4.77%
April 28, 2026
130,000 -
Term loan facility – loan 2 – August 2024
4.33%
April 28, 2026
160,000 -
Corporate bond – issued October 2024
3.83%
October 22, 2034
500,000 -
Nominal values 1,490,000 800,000
Less:
Unamortized balance of debt issuance cost (9,471) (1,609)
on notes issued
Borrowings as reported on statement of
financial position
1,480,529 798,391
SHURGARD ANNUAL REPORT 2024
255
The reported borrowings are presented as follows in our statement of financial position:
(in € thousands)
December 31, 2024
December 31, 2023
Borrowings as reported on statement of financial position
1,480,529
798,391
Non-current portion
1,350,563
698,441
Current portion
129,966
99,950
Weighted average cost of debt
3.16%
2.36%
NOTES 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 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, 2024, and December 31, 2023, the unamortized balances of the debt financing costs on the 2014
Issuance were €0.1 million and €0.2 million, respectively.
During the year ended December 31, 2024, the Company repaid Series B of the 2014 notes that had a nominal
amount of €100 million.
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, 2024, and December 31, 2023, the unamortized balances of the debt financing costs on the
2015 Issuance were €0.3 million and €0.4 million, respectively.
On
July 23, 2021, the Group, via its financing entity Shurgard Luxembourg S.à r.l., issued 10 years Green notes for
€300.0 million bearing fixed interest of 1.24% 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.
As of December 31, 2024, and December 31, 2023, the unamortized balances of the debt financing costs on the
2021 Senior notes issuance was €0.8 million and €1.0 million, respectively.
The
Senior guaranteed notes (both principal amount and interest payments) are denominated in euros.
TERM LOAN FACILITY
On April 28, 2023, Shurgard Luxembourg S.à r.l. entered into a €450 million committed term loan facility with a
consortium of lenders, maturing in three years with an optional two-year extension, at the option of the Company
and subject to certain conditions. The facility bears interest at Euribor plus a margin, initially 120bps, which
decreased to 100bps on August 13, 2024, following the Company's strong investment grade BBB+ rating upgrade.
In addition, the commitment fee on the undrawn amount of €290 million reduced from 0.42% to 0.35%.
On April 10, 2024, the Group increased total commitments by €160 million to €450 million and extended the
availability period to April 28, 2025.
During 2024, the Group drew €290 million, leaving €160 million available, and incurred €2.4 million in interest.
As of December 31, 2024, unamortized debt financing costs totaled €1.6 million, and the Group carried €1.3 million
(2023: €1.8 million) in other non-current assets for related fees, expecting to fully utilize the facility .
SHURGARD ANNUAL REPORT 2024
256
BRIDGE LOAN FACILITY
Shurgard Luxembourg S.à r.l. entered into a €500 million unsecured bridge loan on April 11, 2024, to finance
SSS's acquisition of Lok’nStore Self Storage. The loan was fully drawn on August 7, 2024, and repaid on
October 24, 2024, using proceeds from euro bond issuance. The Group incurred €4.6 million in interest and
amortized €1.6 million in arrangement fees, with no outstanding balance as of December 31, 2024.
Additionally, on August 7, 2024, the Company executed a “Deal Contingent Forward” (DCF) agreement with
JP Morgan SE, effective July 1, 2024, and terminating by October 11, 2024, based on the acquisition settlement
date. The agreement involved the bank paying £430 million in exchange for euros at a contract exchange rate.
For the DCF, the Company realized an exchange loss of €4.3 million.
CORPORATE BOND ISSUED
On October 22, 2024, the Company issued 10-year Corporate Bond for €500 million, bearing fixed interest of
3.625% per annum, to fund the repayment of the bridge loan facility. In the year ended December 31, 2024, the
Company incurred €3.5 million of interest on the Corporate Bond issued in 2024.
The Company paid €6.9 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, 2024, the unamortized portion of these
debt financing costs related to the 2024 issuance amounted to €6.8 million.
REVOLVING SYNDICATED LOAN FACILITY
As of December 31, 2023, the Company had access to €250 million syndicated revolving loan facility with
BNP Paribas Fortis bank, Société Générale bank and Belfius bank 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”). On May 22, 2024, the Company has drawn €25 million on the facility that was
repaid in full on June 28, 2024 and for which it incurred €0.1 million interest expense.
On November 29, 2024, the facility has been early terminated and replaced by a €500 million new facility
terminating on November 29, 2029. Lenders to the amended facility are BNP Fortis, KBC bank, ABN Amro bank,
Belfius bank and HSBC bank with BNP Paribas Fortis bank as agent. The amended facility bears interest of Euribor
plus a margin varying between 0.35% and 0.75% per annum dependent on the Shurgard Group's credit rating
(currently 0.45% based on BBB+ rating) and a commitment fee of 35% of the applicable margin (or 0.16% per
annum as of December 31, 2024) applied to undrawn amounts. The facility is subject to certain customary
covenants (senior leverage and fixed charge cover) that are tested on a semi-annual basis (Note 34).
As of December 31, 2024, and December 31, 2023, the Company had no outstanding borrowings under the
revolving credit facilities. During the year ended December 31, 2024, the Company incurred commitment fees of
€0.4 million (€0.4 million in the year ended December 31, 2023) on the initial and new revolving syndicated loan
facilities.
PARENT 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 Corporate Bond, 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, 2021 and 2024 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 periodic basis. As of December 31, 2024 and December 31, 2023, we are in compliance with all
such covenants .
SHURGARD ANNUAL REPORT 2024
257
27. LEASES
Shurgard leases various investment properties with an aggregate fair value of €961.1 million as of
December 31, 2024 (€825.4 million as of December 31, 2023).
The Company repaid in the year ended December 31, 2024, €4.7 million in lease liabilities, paid €4.7 million in
interest expense on lease liabilities and €0.1 million in lease amounts for contracts with maturity of less than
one year and low-value leases, representing a total cash outflow of €9.5 million (a total cash outflow of
€8.3 million in 2023). 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 2024 or any future years. There are
no material lease commitments for leases not commenced at year-end.
The 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.
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 years
presented.
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)
1
(4,341)
(164,341)
Interest payments
(20,511)
(3,585)
(24,096)
Addition of lease obligations (net)
-
15,132
15,132
Non-cash movements
2
20,922
3,788
24,710
December 31, 2023
798,391
110,816
909,207
Interest-bearing loans and
(in € thousands)
borrowings
Lease obligations
Total financial debt
January 1, 2024
798,391
110,816
909,207
Proceeds from debt issuance and drawings
1,315,000
-
1,315,000
on credit facilities
Repayments of debt
(625,000)
1
(4,709)
(629,709)
Payments of debt financing cost
3
(10,372)
-
(10,372)
Interest payments
(27,169)
(4,700)
(31,869)
Addition of lease obligations (net)
-
22,838
22,838
Leases assumed in acquisitions
-
16,604
16,604
Non-cash movements
2
29,679
5,181
34,860
December 31, 2024
1,480,529
146,030
1,626,559
1 Repayments of interest-bearings loans and borrowings for the year ended December 31, 2024, consist of the repayment of €25 million drawn on the revolving
credit facility, the repayment of series B of the senior guaranteed notes issued in 2024 (€100 million), and the repayment of the bridge loan (€500 million).
2 Non-cash movements for the years ended December 31, 2024, and December 31, 2023, mainly consist of accrued interest, currency translation adjustments
and amortization of the costs associated with the loans.
3 In 2024, we paid and capitalized €6.9 million debt issuance cost for the Corporate Bond, €1.6 million for the bridge loan facility and €1.9 million for the term
loan facility .
SHURGARD ANNUAL REPORT 2024
258
29. TRADE AND OTHER PAYABLES AND DEFERRED REVENUE
Trade and other payables and deferred revenue:
(in € thousands)
December 31, 2024
December 31, 2023
Accrued compensation and employee benefits
13,721
10,461
Accrued share-based compensation expense
544
411
Accounts payable (including accrued expenses)
1
114,996
61,730
Payables to affiliated companies
1,139
1,122
Deferred revenue – contract liabilities
40,306
34,832
Accrued interest on external borrowings
6,004
2,033
VAT payable and deposits received from customers
7,287
7,585
Trade and other payables and deferred revenue
183,997
118,174
1 Of the €53.3 million increase, €38.2 million is mainly due to increased construction accruals, €9.4 million to increased accounts payable and €3.3 million to
accrued personnel compensation expense.
30. PENSIONS
DEFINED CONTRIBUTION PLANS
For the year ended December 31, 2024 the Group incurred €1.4 million pension plan expense (€1.2 million for the
year ended December 31, 2023). These amounts are included in property operating expenses or general,
administrative and other expenses in our consolidated statement of profit and loss.
The Company operates a Belgian pension plan that while structured as a defined contribution plan (due to the
requirement of minimum guaranteed return) requires to be accounted for as a defined benefit plan in accordance
with IAS 19.
During the years ended December 31, 2024 and December 31, 2023, we contributed €0.7 million and €0.6 million,
respectively, to a third-party insurance company. We expect to contribute in 2024 the same amount as in 2023.
The insurance company invests most 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, 2024, the defined benefit obligation amounted to €10.3 million (€8.5 million as of
December 31, 2023), offset by plan assets of €10.8 million as of December 31, 2023 (€8.8 million as of
December 31, 2023).
Fo
r 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, 2024
December 31, 2023
Discount rate
3.40%
3.20%
Inflation
3.60%
2.20%
Rate of salary increases
4.60%
3.20%
Mortality tables
MR-5/FR-5
MR-5/FR-5
SHURGARD ANNUAL REPORT 2024
259
31. SHARE-BASED COMPENSATION EXPENSE
The Company’s share-based compensation program consists of grants of share options and restricted stock
units.
SHARE OPTIONS
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:
• Under 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.
None 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.
The following weighted average assumptions were used to determine the fair value of the options that are
outstanding as of December 31, 2024 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, at grant date,
that are outstanding as of December 31, 2024 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
SHURGARD ANNUAL REPORT 2024
260
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’’).
We used the following weighted average assumptions to determine the fair value of the 2022 option grants
(issued under 2021 plan):
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
The following table sets forth the number of share options granted, forfeited, exercised and outstanding at
December 31, 2024 and December 31, 2023:
2024
2023
Number of
Weighted
Number of Weighted
options
average exercise
options average exercise
price price (a)
Outstanding, January 1 2,595,300 €37.48
2,641,800
€37.44
Granted (a)
-
-
-
-
Forfeited (b)
(5,000)
€43.05
(29,000)
€43.05
Exercised (c)
(60,708)
€22.00
(17,500)
€23.00
Outstanding, December 31
2,529,592
€37.84
2,595,300
€37.48
Exercisable, December 31
1,787,392
€35.42
763,300
€22.78
The following table summarizes information about our share options outstanding as of December 31, 2024 under
the 2017, 2018 and 2021 plans:
As of December 31, 2024
Options outstanding
Options exercisable
Fair value Weighted Weighted Weighted Weighted
per option Number average Number average average average
Year of grant at grant of Options exercise of Options remaining exercise remaining
date price contractual price contractual
life life
2017
€2.35
71,500
€21.51
71,500
2.5 years
€21.51
2.5 years
2018
€3.45
631,092
€23.00
631,092
3.9 years
€23.00
3.9 years
2021-August-3 yr.
€8.42
964,800
€43.05
964,800
6.6 years
€43.05
6.6 years
2021-August-5 yr.
€9.05
643,200
€43.05
-
6.6 years
-
-
2021-September-3 yr.
€8.33
120,000
€47.75
120,000
6.7 years
€47.75
6.7 years
2021-September-5 yr.
€8.67
80,000
€47.75
-
6.7 years
-
-
2022-July-3 yr.
€5.39
11,400
€46.81
-
7.6 years
-
-
2022-July-5 yr.
€5.65
7,600
€46.81
-
7.6 years
-
-
2,529,592
€37.84
1,787,392
5.8 years
€35.42
5.5 years
SHURGARD ANNUAL REPORT 2024
261
RESTRICTED STOCK UNITS
In connection with a new equity compensation plan approved on May 21, 2024, the Group granted in May and
November 2024, 129,105 and 130,980 restricted stock units (‘’RSU’s’’), respectively, that give the participants the
right to receive Shurgard shares for no consideration but a cliff vesting period of three years, in accordance with
the Plan rules.
The following weighted average assumptions were used to determine the fair value of the options granted under
the 2024 plan that are all outstanding as of December 31, 2024:
May 2024 November 2024
3-yr vesting 3-yr vesting
Estimated fair value of Shurgard shares
€39.35
€39.35
Anticipated yearly dividend per share
€1.17
€1.17
Expected forfeiture rate per annum
3.00%
3.00%
Fair value per RSU
€36.00
€35.96
This RSU share-based compensation plan has no performance conditions, is accounted for as equity-settled
awards, and does not contain any cash settlement alternatives.
For all plans, we incurred €4.3 million and €4.2 million in share-based compensation expense, including social
security charges in the years ended December 31, 2024 and 2023, respectively. For the year ended
December 31, 2024, share-based compensation expense included €1.4 million for the new RSU plan.
The €0.5 million and €0.4 million liabilities, respectively, for share-based compensation as of December 31, 2024
and December 31, 2023 consists of an accrual for employers’ share in social security.
As of December 31, 2024, and December 31, 2023, we had €1.7 million, and €4.4 million, respectively, of
unrecognized share-based compensation expense, net of estimated pre-vesting forfeitures, related to unvested
option awards.
As
of December 31, 2024 we had €8.4 million of unrecognized share-based compensation expense, net of
estimated pre-vesting forfeitures, related to unvested RSU awards.
As of December 31, 2024 and December 31, 2023, the weighted average remaining vesting period of our share
options was 1.6 and 1.4 years, respectively.
As of December 31, 2024 the weighted average remaining vesting period of our RSU’s was 2.7 years.
32. RELATED PARTY DISCLOSURES
SUBSIDIARIES
Interests in subsidiaries are set out in Note 37.
SHURGARD ANNUAL REPORT 2024
262
KEY MANAGEMENT PERSONNEL COMPENSATION
(in € thousands)
December 31, 2024
December 31, 2023
Short-term employee benefits
3,930
3,484
Post-employment benefits
220
105
Share-based payments
2,585
2,825
Total
6,735
6,414
Key management personnel consists of the members of the Executive Committee.
In addition, the Company incurred in the year ended December 31, 2024, €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, 2023).
TRA
NSACTIONS WITH OTHER RELATED PARTIES
As of December 31, 2024, th
e Group had two significant shareholders: Public Storage (“PS”), which owned directly
and indirectly in total 35.2% of the interest in Shurgard and the New York State Common Retirement Fund
(“NYSCRF”), which held directly and indirectly 33.5%.
We pay PS a royalty fee equal to 1.0% of our revenues in exchange for the rights to use the “Shurgard” trade
nam
e and other services. During the year ended December 31, 2024 and 2023, we incurred royalty fees of
€4.0 million and €3.5 million, respectively.
For the years 2024 and 2023 there were no transactions with NYSCRF.
We also refer to Note 25 in respect of the non-controlling interest held by the two main shareholders in certain
subsidiaries in Germany.
OUTSTANDING BALANCES ARISING FROM TRANSACTIONS WITH RELATED PARTIES
As of December 31, 2024 and December 31, 2023, trade and other payables and deferred revenue include short-
term cash advances payable to PS totaling €1.1 million and €0.9 million, respectively, comprised primarily of
royalty fees incurred for three months ended December 31, 2024 and December 31, 2023, respectively.
We also refer to Note 25 in respect of the non-controlling interest held by the two main shareholders in certain
subsidiaries in Germany.
33. 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.
The 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.
SHURGARD ANNUAL REPORT 2024
263
The Group is exposed to market risk, credit risk and liquidity risks:
• Market 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 risk include the risk that the Group will encounter difficulties in raising financing and in
meeting payment obligations when they come due.
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 to policies for managing each of these risks which are summarized below.
FOREIGN 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. 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.
As of December 31, 2024 and December 31, 2023, the net (liabilities) / assets exposure on our consolidated
statement of financial position is as follows:
(in € thousands)
EUR
GBP
SEK
DKK
Total
As of December 31, 2024
99,723
(162,334)
3,475
50,567
(8,569)
As of December 31, 2023
193,900
(65,488)
6,588
41,012
176,012
The following table presents the sensitivity analysis of the year end statement of financial position balances in
euros in case the euro would weaken by 10% versus the GBP, SEK and DKK, respectively:
SHURGARD ANNUAL REPORT 2024
264
(in € thousands)
FY 2024
FY 2023
GBP denominated
Changes in carrying amount of monetary assets and liabilities
1
16,233
6,549
SEK denominated
Changes in carrying amount of monetary assets and liabilities
1
(348)
(659)
DKK denominated
Changes in carrying amount of monetary assets and liabilities
1
(5,057)
(4,101)
1 These are increases in net liabilities.
CREDIT 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, 2024 is the carrying value of the cash
and cash equivalents.
Credit 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 consolidated statement of profit or loss within real estate operating expense.
Subsequent recoveries of the amounts previously provided for are offset against the previously recognized loss
on debtors within real estate operating expense.
Set out below is the information about the credit risk exposure on our trade receivables using a provision matrix:
December 31, 2024
(in € thousands)
Outstanding < 60 days
Past due > 60 days
Total
Expected credit loss rate
6%
71.2%
21.5%
Carrying amount
28,716
8,939
37,655
Expected credit loss
(1,723)
(6,366)
(8,089)
Net amount
26,993
2,573
29,566
December 31, 2023
(in € thousands)
Outstanding < 60 days
Past due > 60 days
Total
Expected credit loss rate
6%
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
Lease 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.
The 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 2024
265
LIQUIDITY 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 operating 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.
Management 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 year:
(in € thousands)
December 31, 2024
December 31, 2023
Expiring within one year (floating rate)
160,000
1
540,000
3
Expiring beyond one year (floating rate)
500,000
2
250,000
4
Total
660,000
790,000
1 The amount consists of the undrawn amount on the “Term Loan Facility” (TLF).
2 The amount consists of the new RCF contracted in November 2024.
3 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.
4 The amount consists of the initial RCF (€250 million).
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES ON DECEMBER 31, 2023
The tables below analyze the Company’s financial liabilities based on their contractual maturities.
Total
Between one contractual
(in € thousands)
Less than one 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
1,79
4,715
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.
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES ON DECEMBER 31, 2024
Total
Between one contractual
(in € thousands)
Less than one year
and five years
Over five years
cash flows
Interest-bearing loans and borrowings
174,084
608,180
921,078
1,703,342
Lease liabilities
9,309
34,302
812,445
856,056
Trade and other payables
183,997
-
 - 183,997
Total
367,390
642,482
1,733,523
2,743,395
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 2024
266
FAIR 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.
Set 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, 2024
December 31, 2023
Carrying value
1,191,964
798,391
Fair values
1,167,937
744,677
The following methods and assumptions were used to estimate the fair values:
• The fair values of our senior guaranteed notes and corporate bond (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.
34. 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 during each reporting year the appropriateness of the loan-to-value ratio. The Company is
currently satisfied with its current loan-to-value ratio.
The following covenants apply to our rated debt, consisting of the Corporate Bond we issued in 2024 (outstanding
amount of €500 million as of December 31, 2024):
• Loan-to-value (total net debt to total assets) applicable should not exceed 0.60 (2024: 0.23);
• Interest coverage ratio (12 month fixed charges to EBITDA) should be higher than 1.25 (2024: 5.18).
The Group has complied with these covenants throughout the reporting year.
There are no indications that the entity may have difficulties complying with the covenants when they will be
tested on quarterly basis in the next 12 months.
The table below provides an overview of the evolution of the loan-to-value ratio as of December 31, 2024 and
December 31, 2023.
(in € thousands)
December 31, 2024
December 31, 2023
Net financial debt
1,493,455
652,698
Investment property and investment property under construction (Note 14
)
6,410,540
5,035,770
Loan-to-value ratio
23.3%
13.0%
SHURGARD ANNUAL REPORT 2024
267
Net financial debt is composed as follows:
(in € thousands)
December 31, 2024
December 31, 2023
Carrying value of interest-bearing loans and borrowings (Note 26)
1,480,529
798,391
Unamortized portion of debt financing cost (Note 26)
9,471
1,609
Carrying value of lease obligations (Note 27)
146,030
110,816
Cash and cash equivalents (Note 20)
(142,575)
(258,118)
Net financial debt
1,493,455
652,698
35. 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.
Except 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.
Besides 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.
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 undertaking.
In line with this assumption, no division for profitability is necessary. Where required, Shurgard registered as an
insurance intermediary for regulatory purposes.
During each of the years ended December 31, 2024 and 2023, the Company paid €0.1 million insurance acquisition
expense to a third-party insurance company in connection with its re-insurance undertaking.
GENERAL 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 $100.0 million, or
approximately €96.7 million at the December 31, 2024 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.
CUSTOMER GOODS
Except for our UK customer goods coverage earnings, 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.
SHURGARD ANNUAL REPORT 2024
268
As of January 1, 2024, the Company has implemented for its UK tenants SHURprotect, a program that changed
the overall contractual arrangement related to the customer goods coverage program. Rather than the insurance
intermediary providing insurance coverage to the customer, the UK tenants will via the SHURprotect program be
compensated for damages to their goods directly by the Group’s UK subsidiary. This scheme is accounted for
under IFRS 17, having no significant impact on our overall business and results, and the Group’s consolidated
financial statements. For the year ended December 31, 2024, Shurgard UK earned €7.7 million fee income and
incurred claims charges of €0.6 million under the SHURprotect program.
Overall, for the years ended December 31, 2024 and 2023, the Group fee income earned from customer goods
coverage, including UK, was €38.0 million and €33.7 million, respectively.
Simultaneously, Shurgard, through its captive reinsurance entity, entered into a reinsurance agreement with an
external insurance company. This arrangement is in the scope of IFRS 17. Through this agreement, an external
insurance company cedes to our captive certain insurance risk in lieu for a reinsurance premium of €3.1 million
for the year ended December 31, 2024 (€2.8 million for the year ended December 31, 2023). For the year ended
December 31, 2024, the Group accounted for reinsurance service expense of €2.8 million (€2.0 million for the
year ended December 31, 2023), consisting of claim charges of €2.5 million (€1.6 million for the year ended
December 31, 2023), as well as fronting and handling fees of €0.3 million (€0.4 million for the year ended
December 31, 2023).
Captive re-insurance revenue and captive insurance service expense are included in other operating expenses in
real estate operating expense.
Relevant quantitative disclosures for our re-in
surance activities are as follows for the year ended
December 31, 2023:
Liabilities remaining
Liabilities for
(in € thousands)
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
Changes in liabilities for incurred claims
(1,183)
(1,183)
Incurred claims and other insurance service expenses
-
3,072
3,072
Amortization of insurance acquisition cash flows
105
-
105
Insurance service result
(2,731)
1,889
(842)
Total changes in the statement of profit and loss
(2,731)
1,889
(842)
Cash flows
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 Insurance 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:
SHURGARD ANNUAL REPORT 2024
269
(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
Relevant quantitative disclosures for our re-insurance activities are as follows for the year ended December 31,
2024:
Liabilities remaining
Liabilities for
(in € thousands) coverage incurred claims Total
Opening assets
-
-
-
Opening liabilities
-
1,804 1,804
Net opening balance
-
1,804 1,804
Changes in the statement of profit or loss and
OCI
Insurance revenue
1
 (3,123) - (3,123)
Insurance service expenses
Changes in liabilities for incurred claims
-
789 789
Incurred claims and other insurance service - 1,860 1,860
Amortization of insurance acquisition cash flows
123
-
123
Insurance service result
Total changes in the statement of profit and
loss and OCI
(3,000) 2,649 (351)
Cash flows
Premiums received
3,123
- 3,123
Insurance acquisition cash flows
(123)
- (123)
Claims and other insurance service expenses paid - (2,075) (2,075)
Total cash flows
3,000
(2,075) 925
Closing assets
- - -
Closing liabilities
-
2,378
2,378
Net closing balance
-
2,378
2,378
1 Insurance revenue relates revenue from accepted reinsurance contracts.
The expense we incurred during the year ended December 31, 2024 in connection with our reinsurance
undertaking consists of the following:
(in € thousands)
December 31, 2024
Incurred claims customer goods
2,520
Insurance service expenses
129
Amortization of insurance acquisition cash flow
123
Total expense
2,772
PROPERTY 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.
SHURGARD ANNUAL REPORT 2024
270
Through 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.
The 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.
36. CONTINGENCIES AND COMMITMENTS
CAPITAL EXPENDITURE COMMITMENTS
As of December 31, 2024, we had €49.1 million (€18.2 million as of December 31, 2023) 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.
INCOME 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 2024
37. LIST OF CONSOLIDATED ENTITIES
As of December 31, 2024
As of December 31, 2023
Country of % %
incorporation
Consolidated
Ownership
Consolidated
Ownership
1
Shurgard Self Storage Ltd
Luxembourg
Yes
100
Yes
100
1
Shurgard Luxembourg S.à r.l.
Luxembourg
Yes
100
Yes
100
1
Shurgard Holding Luxembourg S.à r.l.
Luxembourg
Yes
100
Yes
100
2
Eirene RE S.A.
Luxembourg
Yes
100
Yes
100
Shurgard Belgium N.V.
Belgium
Yes
100
Yes
100
Shurgard Europe VOF
Belgium
Yes
100
Yes
100
Second Shurgard Belgium B.V.
Belgium
Yes
100
Yes
100
Shurgard France SAS
France
Yes
100
Yes
100
Shurgard Nederland B.V.
The Netherlands
Yes
100
Yes
100
VMK5 B.V.
The Netherlands
Yes
100
Yes
100
Shurgard Nederland OA B.V.
The Netherlands
Yes
100
4
N/A
 -
Shurgard Germany GmbH
Germany
Yes
100
Yes
100
3
First Shurgard Deutschland GmbH
Germany
Yes
94.8
Yes
94.8
3
Second Shurgard Deutschland GmbH
Germany
Yes
94.8
Yes
94.8
3
Shurgard Germany ZL MU GmbH
Germany
Yes
100
Yes
100
3
Shurgard Germany ZL LH GmbH
Germany
Yes
100
Yes
100
3
Shurgard Germany ZL FER GmbH
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 UK LNS Holding Ltd
UK
Yes
100
4
N/A
 -
Shurgard UK LNS Trading Ltd
UK
Yes
100
4
N/A
-
Shurgard UK LNS Semco Ltd
UK
Yes
100
4
N/A
-
Shurgard UK TBR Ltd
UK
Yes
100
4
N/A
-
Shurgard UK LNS Trustee Ltd
UK
Yes
100
4
N/A
-
Shurgard UK LNS Semco M Ltd
UK
Yes
100
4
N/A
-
Shurgard UK LNS Semco E Ltd
UK
Yes
100
4
N/A
-
Shurgard UK LNS PNC Ltd
UK
Yes
100
4
N/A
-
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
3
Shurgard Sweden RE FUB AB
Sweden
Yes
100
Yes
100
3
Shurgard Sweden RE TF AB
Sweden
Yes
100
Yes
100
3
Shurgard Sweden RE LH AB
Sweden
Yes
100
Yes
100
3
Shurgard Sweden GC AB
Sweden
Yes
100
Yes
100
3
Shurgard Germany TBIH GmbH
Germany
Yes
100
Yes
100
3
Shurgard Germany SSMH GmbH
Germany
Yes
100
Yes
100
3
Shurgard Germany TBW GmbH
Germany
Yes
100
Yes
100
3
Shurgard Germany TBD GmbH
Germany
Yes
100
Yes
100
271
SHURGARD ANNUAL REPORT 2024
272
1 Holding and/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.
4 Acquired during 2024.
38. EVENTS AFTER THE REPORTING PERIOD
We have evaluated subsequent events through February 27, 2025, which is the date the financial statements
were available for issuance.
As of December 31, 2024
As of December 31, 2023
Country of % %
incorporation
Consolidated
Ownership
Consolidated
Ownership
Shurgard Germany TBM GmbH
3
Germany
Yes
100
Yes
100
Shurgard Germany TBK GmbH
3
Germany
Yes
100
Yes
100
Shurgard Germany TBE GmbH
3
Germany
Yes
100
Yes
100
Shurgard Germany TBL GmbH
3
Germany
Yes
100
Yes
100
Shurgard Germany TB8F GmbH
3
Germany
Yes
100
Yes
100
Shurgard Germany TB7K GmbH
3
Germany
Yes
100
Yes
100
273
INDEPENDENT AUDITOR’S
REPORT
SHURGARD ANNUAL REPORT 2024
274
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SHURGARD
SELF STORAGE LIMITED
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our opinion
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial
position of Shurgard Self Storage Limited (the “company”) and its subsidiaries (together “the group”) as at 31
December 2024, and of their consolidated financial performance and their consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the European Union
and have been properly prepared in accordance with the requirements of the Companies (Guernsey) Law, 2008.
What we have audited
The group’s consolidated financial statements comprise:
• the consolidated statement of financial position as at 31 December 2024;
• the consolidated statement of profit and loss for the year then ended;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements, comprising material accounting policy information
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the group in accordance with the ethical requirements that are relevant to our audit of
the consolidated financial statements of the group, as required by the Crown Dependencies’ Audit Rules and
Guidance. We have fulfilled our other ethical responsibilities in accordance with these requirements.
Our audit approach
Overview
Audit scope
● We conducted a full scope audit of the consolidated financial statements of the group.
● The company is incorporated in Guernsey and its subsidiaries are incorporated in France, the
Netherlands, the United Kingdom, Sweden, Germany, Belgium, Denmark and Luxembourg.
● The audit was under the direction and supervision of PwC CI LLP. The centralisation of the accounting
function and preparation of the group financial statements are located in Belgium. We have therefore
determined the supporting firm (a separate PwC network firm) to be the only component auditor.
● Our approach is designed to address the risk of material misstatement and is tailored to consider the
investment objectives of the group.
SHURGARD ANNUAL REPORT 2024
275
Key audit matters
● Valuation of investment property and investment property under construction
● Accounting treatment of the Lok’nStore Acquisition
Materiality
● Overall group materiality: EUR 66 million based on 1% of total assets.
● Performance materiality: EUR 33 million.
● Specific group materiality: EUR 9.7 million based on 5% of the group’s adjusted profit before tax, which
equates to EPRA (‘European Public Real Estate Association’) earnings.
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
consolidated financial statements. In particular, we considered where the directors and management made
subjective judgements; for example, in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits, we also
addressed the risk of management override of internal controls, including among other matters, consideration
of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Key audit matters
Key audit matters are those matters that, in the auditor’s professional judgement, were of most significance in
the audit of the consolidated financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had
the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters, and any comments we make on the results of our procedures thereon,
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.
This is not a complete list of all risks identified by our audit.
Key audit matter
How our audit addressed the Key audit matter
Valuation of investment property and investment
property under construction (‘investment
properties’)
The investment property portfolio comprises of
investment properties and investment properties under
construction and are valued at €6,250 million and €161
million, respectively at year end as reflected in the
consolidated statement of financial position. Please
refer to note 3, note 14 and note 15.
The existence of significant estimation uncertainty,
coupled with the fact that only a small percentage
difference in individual property valuation assumptions,
when aggregated, could result in a material
misstatement. The valuations of all investment
properties, other than investment properties under pre-
development and properties acquired where historic
cost was deemed to be a reasonable proxy for fair
value, were carried out by managements external
valuer, Cushman & Wakefield (the external valuer), in
accordance with RICS Valuation – Professional
Standards and the group’s accounting policies.
The valuation process requires significant judgement
and use of estimates by the external valuer and
management. Any input inaccuracies or unreasonable
• We assessed the investment properties accounting
policy and disclosures for compliance with the
accounting framework.
• We have understood and evaluated the design,
implementation, and appropriateness of the
company’s controls related to the valuation of
investment properties.
• We have tested the operating effectiveness of
controls related to the accuracy and completeness
of the input data used by the external valuer.
• Together with our auditor’s valuation expert we
assessed the competency, qualifications, and
objectivity of the external valuer and read their
terms of engagement with the group to determine
whether there were any matters that might have
affected their objectivity or may have imposed
scope limitations upon their work.
• In addition, together with our auditor’s valuation
expert has assessed the appropriateness of the
methodology and assumptions used by the external
valuer and considered alternative metrics and
assumptions.
• For investment properties under pre-development,
we assessed the reasonableness of the historic
SHURGARD ANNUAL REPORT 2024
276
bases used in these judgements could result in a
material misstatement of the valuation of investment
property and investment property under construction.
Hence we consider this as a key audit matter.
We refer to note 14, which includes a reconciliation
between the value determined by the external valuer
and the fair value of investment properties per the
consolidated financial statements.
cost as a basis for the fair value in consultation with
our auditor’s valuation expert.
• Together with our auditor’s valuation expert we
have met with the external valuer and the group’s
management to discuss the valuation process,
including the model, challenge the significant
assumptions and the input data.
• We have agreed that the fair value as determined
by the external valuer agrees with the accounting
records and financial statements.
• For a sample of investment properties, we have
tested the accuracy of key input data by agreeing
the factual inputs to underlying property records
held by the group.
We have not identified any material matters based
on our audit procedures.
Accounting treatment for the Lok’nStore
Acquisition
During the year, the group acquired the entire share
capital of Lok’nStore Group Plc (“the transaction”) for
£378 million (equivalent to €439.9 million). Please refer
to note 1 and note 3.
The determination of whether the acquisition constitutes
an asset acquisition, or a business combination
involves complex judgement. This assessment is critical
as the differing accounting treatment would have a
material impact in the presentation and disclosure of the
consolidated financial statements, therefore this is
considered a key audit matter.
It was determined that this transaction was to be
classed as an asset acquisition rather than a business
combination under IFRS 3 - Business Combinations.
• We understood and evaluated the group’s
processes, internal controls and methodology
applied in determining the appropriate accounting
treatment for group acquisition.
• We obtained and read the accounting paper
prepared by management. We engaged our internal
accounting technical specialists to assist us in
assessing the appropriateness of the accounting
analysis in accordance with the requirements of the
accounting framework.
• We assessed the adequacy of the presentation and
disclosures in the financial statements regarding the
transaction.
We have not identified any material matters based
on our audit procedures.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on
the consolidated financial statements as a whole, taking into account the structure of the group, the accounting
processes and controls, and the industry in which the group operates and we considered the risk of climate
change and the potential impact thereof on our audit approach.
Scoping was performed at the group level with reference to the overall group materiality and the risks of material
misstatement identified, irrespective of whether the underlying transactions took place within the company or
within the subsidiaries.
The transactions relating to the company and the subsidiaries are all maintained and made available to us and
our supporting firm (a separate PwC network firm) by the financial function.
We are responsible for the active direction, supervision and review of the work performed by the supporting firm
to ensure that sufficient and appropriate audit evidence was obtained to support our opinion on the consolidated
financial statements as a whole. We maintain ultimate responsibility for the opinion and oversee the overall
direction, supervision, and performance of the group audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds
for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit
and the nature, timing and extent of our audit procedures on the individual financial statement line items and
disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the consolidated
financial statements as a whole.
SHURGARD ANNUAL REPORT 2024
277
Based on our professional judgement, we determined materiality for the consolidated financial statements as a
whole as follows:
Overall group materiality
€66 million
How we determined it
1% of group total assets
Rationale for the materiality benchmark
We believe that total assets is the primary measure used by the
shareholders in assessing the performance of the group.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and the nature and extent of our testing of account balances,
classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality
was 50% of overall materiality, amounting to €33 million for the consolidated financial statements.
In determining the performance materiality, we considered a number of factors – risk assessment and
aggregation risk and the effectiveness of controls - and concluded that an amount at the lower end, of our normal
range was appropriate.
In addition, we set a specific materiality level of €9.7 million for items within the statement of profit or loss which
is based on 5% of the groups adjusted profit before tax, which equates to EPRA earnings.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit
above €3.3 million, as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Reporting on other information
The other information comprises all the information included in the “Annual Report” but does not include the
consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other
information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon. The consolidated sustainability statement is included in this other
information and has been the subject of a separate report, which contains an 'Unqualified conclusion' on the
limited level of assurance with regard to this sustainability information, issued by PwC Bedrijfsrevisoren BV/PwC
Reviseurs d'Entreprises SRL on 27 February 2025.
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 based on these responsibilities.
Responsibilities for the consolidated financial statements and the audit
Responsibilities of the directors for the consolidated financial statements
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the
preparation of the consolidated financial statements that give a true and fair view in accordance with
International Financial Reporting Standards as adopted by the European Union, the requirements of Guernsey
law 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.
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
have 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
SHURGARD ANNUAL REPORT 2024
278
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 aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using
data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather
than testing complete populations. We will often seek to target particular items for testing based on their size or
risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the
population from which the sample is selected.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
scepticism 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 the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the group’s ability to continue as a going concern over a
period of at least twelve months from the date of approval of the consolidated financial statements. 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
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
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.
Use of this report
This independent auditor’s report, including the opinions, has been prepared for and only for the members as a
body in accordance with Section 262 of The Companies (Guernsey) Law, 2008 and for no other purpose. We
do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent
in writing.
SHURGARD ANNUAL REPORT 2024
279
Report on other legal and regulatory requirements
Company Law exception reporting
Under The Companies (Guernsey) Law, 2008 we are required to report to you if, in our opinion:
● we have not received all the information and explanations we require for our audit;
● proper accounting records have not been kept; or
● the consolidated financial statements are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
European Uniform Electronic Format (ESEF)
We have also verified, in accordance with the draft standard on the verification of the compliance of the annual
report with the European Uniform Electronic Format (hereinafter “ESEF”), the compliance of the ESEF format
with the regulatory technical standards established by the European Delegate Regulation No. 2019/815 of 17
December 2018 (hereinafter: “Delegated Regulation”) and with the Royal Decree of 14 November 2007
concerning the obligations of issuers of financial instruments admitted to trading on a regulated market.
The board of directors is responsible for the preparation of an annual report, in accordance with ESEF
requirements, including the consolidated accounts in the form of an electronic file in ESEF format (hereinafter
“digital consolidated accounts”).
Our responsibility is to obtain sufficient appropriate evidence to conclude that the format and marking language
of the digital consolidated financial accounts comply in all material respects with the ESEF requirements under
the Delegated Regulation.
Based on our procedures performed, we believe that the format of the annual report and marking of information
in the digital consolidated accounts included in the annual report of Shurgard Self Storage Ltd issuer per 31
December 2024 comply, and which will be available in the Belgian official mechanism for the storage of
regulated information (STORI) of the FSMA, are, in all material respects, in compliance with the ESEF
requirements under the Delegated Regulation and the Royal Decree of 14 November 2007.
Other statements
This report is consistent with the additional report to the audit committee referred to in article 11 of the Regulation
(EU) N° 537/2014
.
Evelyn Brady
For and on behalf of PricewaterhouseCoopers CI LLP
Chartered Accountants and Recognised Auditor
Guernsey, Channel Islands
27 February 2025
a. The maintenance and integrity of the Shurgard Self Storage Limited’s website is the
responsibility of the directors; the work carried out by the auditors does not involve
consideration of these matters and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the financial statements since they were initially
presented on the website.
b.
Legislation in Guernsey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
SHURGARD T 2018
280
STAND-ALONE ACCOUNTS OF
SHURGARD SELF STORAGE
LTD AND AUDITOR’S REPORT
SHURGARD ANNUAL REPORT 2024
281
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.
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.
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
In August 2024, the
Company acquired all interest in Lokn’Store, for a total amount of €447,853 thousands. The
transaction was financed through a loan note payable amounting to €439,862 thousands to Shurgard
Luxembourg, with 10-years maturity, bearing interest of 3.80%.
SHURGARD ANNUAL REPORT 2024
282
BALANCE SHEET
(in € thousands)
ASSETS
Codes December 31, 2024
December 31, 2023
Formation expenses
20
2,118
2,640
Fixed assets
21/28
1,651,656
1,203,803
Financial fixed assets
28
1,651,656
1,203,803
Affiliated Companies
280/1
1,651,656
1,203,803
Participating interests
280
1,651,656
1,203,803
Current assets
29/58
102,895
190,777
Amounts receivable within one year
40/41
102,811
190,520
Cash and bank
54/58
85
257
Accruals and deferred charges
490/1
29
64
TOTAL ASSETS
20/58
1,756,698
1,397,284
LIABILITIES AND EQUITY
Codes December 31, 2024
December 31, 2023
Equity
10/15
1,315,635
1,396,187
Capital
10
70,287
69,449
Share premium account
1100/10
898,429
854,549
Reserves
13
365,299
479,196
Available reserves
133
365,299
479,196
Accumulated profits (losses)
14
(18,380)
(7,006)
Amounts payable after more than one year
17
439,862
-
Financial debts
170/4
439,862
-
Other loans
174/0
439,862
-
Amounts payable within one year
42/48
1,201
1,097
Trade debts
44
1,201
1,092
Taxes, remuneration and social security
45
-
5
Remuneration and social security
454/9
-
5
TOTAL LIABILITIES
10/49
1,756,698
1,397,284
SHURGARD ANNUAL REPORT 2024
283
INCOME STATEMENT
(in € thousands) Codes December 31, 2024
December 31, 2023
Operating income and operating charges
143
159
Gross margin
9900
143
159
Remuneration, social security and
pensions
62
(829)
(755)
Amortization of formation expenses and
Intangible fixed assets
630
(584)
(3,293)
Other operating charges
640/8
(3,792)
(3,884)
Operating profit (loss)
9901
(5,062)
(7,773)
Financial income
75/76B
-
-
Non-recurring financial income
76B
-
-
Financial charges
65/66B
(7,381)
(112)
Recurring financial charges
65
(7,381)
(112)
Non-recurring financial charges
66B
-
-
Profit (loss) for the year before taxes
9903
(12,442)
(7,885)
Income taxes on the result
67/77
1,068
836
Profit (loss) for the year
9904
(11,374)
(7,049)
Transfer (-) to/release (+) from tax-
exempt reserves
-
-
Profit (Loss) of the year available for
appropriation
9905
(11,374)
(7,049)
APPROPRIATION OF RESULT
Codes December 31, 2024
December 31, 2023
Profit (Loss) to be appropriated.
9906
(11,374)
(7,006)
Profit (Loss) of the year available for
appropriation
(9905)
(11,374)
(7,049)
Profit (Loss) of the preceding year brought
forward
14P
-
43
Appropriations to equity
691/2
-
-
to legal reserve
6920
to other reserves
6921
Profit (loss) to be carried forward
(14)
(11,374)
(7,006)
Profit to be distributed
694/7
-
-
SHURGARD ANNUAL REPORT 2024
284
NOTES TO THE ACCOUNTS
20 FORMATION EXPENSE
Formation expense consists of cost incurred with the Company’s capital increases.
The additions for 2024 consist of equity issuance cost incurred in connection with the issuance of 1,174,902 new
ordinary shares issued at a subscription amount of €44,719 thousands.
(in € thousands) December 31, 2024 December 31, 2023
Cost of capital increase
At the beginning of the year 22,610 19,898
Additions 62 2,712
At the end of the year 22,672 22,610
Accumulated amortization
At the beginning of the year 19,970 16,677
Amortization for the year 584 3,293
At the end of the year 20,554 19,970
Net book value
At the beginning of the year 2,640 3,221
At the end of the year
2,118
2,640
SHURGARD ANNUAL REPORT 2024
285
280 PARTICIPATING INTEREST
The Company holds participating interest as follows in affiliated entities:
(in € thousands)
Shares Country
Portion of capital held
as of December 31,
2024
Net book value as
of December 31,
2023
Increases /
(decreases)
during the year
Net book value as
of December 31,
2024
Shareholders’
equity as of
December 31,
2023
Profit / (loss) for
the year ended
December 31,
2023
Shurgard Luxembourg S.à r.l. Luxembourg 100.0% 345,816
-
345,816 357,472 18,729
Shurgard UK Ltd
1
UK 100.0%
857,987
-
857,987
1,097,504
271,074
Shurgard UK Lok’nStore Holding Ltd UK 100.0% - 447,853 447,853 327,874 30,423
Total 1,203,803 447,853 1,651,656
1 Shareholders equity and profit and loss of Shurgard UK Ltd are derived from the 2023 annual accounts.
SHURGARD ANNUAL REPORT 2024
286
10 CAPITAL
December 31, 2024 (in thousands of €) Number of shares
Share capital
Shares in issue
At the end of the previous year 69,449 97,311,896
Issue of new shares – September 26, 2024 dividend distribution 795 1,114,194
Issue of new shares - share option exercises for the year 43 60,708
At the end of the financial year 70,287 98,486,798
Analysis of share capital
Class of shares
Ordinary shares of no-par value.
98,486,798
40/41 AMOUNTS RECEIVABLE WITHIN ONE YEAR
Accounts receivable within one year as of December 31, 2024 and December 31, 2023 consisted of the following:
(in € thousands) December 31, 2024 December 31, 2023
Cash advance granted to Shurgard Luxembourg 92,685 189,670
Shurgard UK LNS Trading Ltd 8,955 -
Shurgard UK Ltd 890 602
Shurgard UK West-London Ltd 104 36
Shurgard Europe SNC 101 13
Shurgard Luxembourg S.à r.l. 31 -
Second Shurgard UK Ltd 21 197
Shurgard UK LNS Semco Ltd 9 -
Shurgard UK TBR LTD 7 -
Credit notes to receive 8 -
Total 102,811 190,520
The receivables do not bear interest and have no maturity date.
174/0 OTHER LOANS PAYABLE WITHIN MORE THAN ONE YEAR
In connection with the Company’s acquisition of LoknStore, Shurgard Luxembourg granted on August 7, 2024 a €439,862
thousands loan to the company, bearing fixed interest of 3.80% per annum and maturing on August 7, 2034.
During the year ended December 31, 2024, the Company paid €7,131 thousands interests on the loan.
44 TRADE DEBTS PAYABLE WITHIN ONE YEAR
(in € thousands) December 31, 2024 December 31, 2023
Payable to Shurgard UK LNS Holding Ltd 32 -
Accrued consultancy fees 928 688
Accounts payable and invoices to receive 241 404
Total 1,201 1,092
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287
62 REMUNERATION, SOCIAL SECURITY AND PENSIONS
Up to February 16, 2023, the Company employed one full time employee and five part-time employees for whom it incurred
the following staff costs for which it incurred the following gross payroll, employers’ social security charges, bonus expense
and other staff costs:
(in € thousands) December 31, 2024 December 31, 2023
Gross payroll -
59
Director's fees
1
803 826
External staff -
31
Employers‘ social security 31 (18)
Bonus expense -
(156)
Other staff costs
2
(5) 13
Total 829 755
1 Gross director’s fees paid to the non-executive members of the Company’s Board.
2
Other staff costs consist mainly of pension plan expenses and other social benefits.
After February 16, 2023, the Company no longer employed employees.
640/8 OTHER OPERATING CHARGES
Other operating charges consists of the following:
(in € thousands) December 31, 2024 December 31, 2023
Lawyer’s, tax and other consultancy fees 815 1,052
Travel expense, irrecoverable VAT and other expenses 599 415
Centralized support. service charges recharged by affiliated undertakings 1,575 1,578
Auditor’s fees 546 264
Insurance expense – D&O 147 165
Public relations 2 20
Membership (association) fees 108 176
Cost incurred in connection with the private placement -
214
Total 3,792 3,884
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65 RECURRING FINANCIAL CHARGES
For the years ended December 31, 2024 and December 31, 2023, recurring financial charges consists of the following:
(in € thousands) December 31, 2024 December 31, 2023
Interest payable Shurgard Luxembourg S.à r.l. 7,131 -
Bank charges 6 5
Fees paid to (share) liquidity providers 33 79
Realized exchange losses 211 28
Total 7,381 112
67/77 INCOME TAXES ON THE RESULT
The tax benefit recorded by the company arises due to the surrender of losses through group relief to other profitable group
companies, for which such other group companies make a group relief payment, which reflects the tax benefit received by
such group companies.
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289
INDEPENDENT AUDITOR’S REPORT
SHURGARD ANNUAL REPORT 2024
290
SHURGARD ANNUAL REPORT 2024
291
292
APPENDIX:
ALTERNATIVE PERFORMANCE
MEASURES (APM)
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293
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 11 of the 2024 financial statements) 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
2024 FY report
FY 2024 FY 2023
Rental revenue Note 5 357,757 312,550
Fee income from customer goods coverage Note 5 37,961 33,683
Ancillary revenue Note 5 10,963 11,468
Property operating revenue
(A)
406,681 357,701
Other revenue Note 5 (178) 222
Real estate operating revenue
Statement of
Profit and Loss
406,503 357,923
Income statement line item
Reference to
2024 FY report
FY 2024 FY 2023
Payroll expense Note 6 47,067 42,138
Real estate and other taxes Note 6 22,936 19,313
Repairs and maintenance Note 6 13,944 13,280
Marketing expense Note 6 11,888 9,887
Utility expense Note 6 6,083 3,939
Doubtful debt expense Note 6 6,962 5,465
Cost of insurance and merchandise sales Note 6 4,592 4,556
Other operating expenses Note 6 25,471 21,892
Real estate operating expenses (B)
Statement of
Profit and Loss
138,943 120,470
Income from property (NOI) (A) - (B) 267,738 237,231
SHURGARD ANNUAL REPORT 2024
294
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 expenses. 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 2024 financial statements.
NOI MARGIN
The NOI margin is calculated as Income from property (“NOI”) divided by property operating revenue for the
relevant year 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 expenses.
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 2024 FY 2023
Income from property (NOI) 267,738 237,231
Property operating revenue ÷ 406,681 357,701
NOI Margin % = 65.8% 66.3%
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, integration and abandoned deals costs and (iii) other non-recurring items (such as cost of equity
raise or significant SaaS implementation costs).
(in € thousands) Q4 2024 Q4 2023 +/- FY 2024 FY 2023 +/-
Operating profit before property related
adj
ustments
63,956 54,134 18.1% 229,052 207,040 10.6%
Depreciation and amortization expense 1,111 893 24.4% 4,121 3,377 22.0%
Other
1
3,876 1,141 N/A 7,272 2,552 185.0%
Underlying EBITDA (AER) 68,943 56,168 22.7% 240,445 212,969 12.9%
Foreign exchange - 441 -100.0% - 1,297 -100.0%
Underlying EBITDA (CER) 68,943 56,609 21.8% 240,445 214,266 12.2%
1 Other are mainly (i) integration costs Lok’nStore €3.7 million, (ii) ERP implementation fees €3.2 million.
SHURGARD ANNUAL REPORT 2024
295
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.
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.
(in € thousands) December 31, 2024 December 31, 2023
Carrying value of interest-bearing loans and borrowings 1,480,529 798,391
Unamortized portion of debt issuance cost 9,471 1,609
Carrying value of lease obligations 146,030 110,816
Less Cash and cash equivalents (142,575) (258,118)
Net financial debt 1,493,455 652,698
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, 2024 December 31, 2023
Net financial debt 1,493,455 652,698
Investment property and investment property under construction
(Note 14)
6,410,540 5,035,770
Loan-to-value ratio 23.3% 13.0%
NET DEBT TO UNDERLYING EBITDA RATIO
Net debt to underlying EBITDA ratio represents the Group’s net financial debt divided by trailing 12 months’
underlying earnings before interest, taxes, depreciation, and amortization (TTM Underlying EBITDA).
(in € thousands) FY 2024 FY 2023
Net financial debt 1,493,455 652,698
TTM Underlying EBITDA 240,445 212,969
Net debt/Underlying EBITDA 6.2x 3.1x
SHURGARD ANNUAL REPORT 2024
296
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 8.0x demonstrates Shurgard’s capacity to meet its outstanding debt obligations on time.
(in € thousands) FY 2024 FY 2023
Underlying EBITDA 240,445 212,969
Interest expense net
1
30,239 20,127
Interest coverage ratio 8.0x 10.6x
1 Excluding foreign exchange (gain)/loss.
SHURGARD ANNUAL REPORT 2024
297
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 September 2024.
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)
2024
2023
EPRA earnings 158,715 156,186
EPRA earnings per share (basic - €) 1.63 1.73
EPRA earnings per share (diluted - €) 1.62 1.73
Adjusted EPRA earnings 167,386 158,401
Adjusted EPRA earnings per share (basic - €) 1.71 1.76
Adjusted EPRA earnings per share (diluted - €) 1.71 1.75
The bases of calculation of each of the above measures set out above, are illustrated below.
EPRA EARNINGS AND EPRA EARNINGS PER SHARE
(in € thousands, except for earnings per share for the year ended December 31)
2024 2023
Profit attributable to ordinary equity holders of the parent for basic earnings 402,851 533,313
Adjustments:
Changes in value of investment properties, development properties held for
investment and other interests
1
(331,071) (294,349)
Profits or losses on disposal of investment properties, development properties held
for investment, right of use assets and other interests
(2) (1)
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 expense of business combinations and non-controlling joint venture
interests and other
- (5)
Current and deferred tax in respect of EPRA adjustments
2
86,511
(83,484)
Adjustments (i) to (viii) above in respect of joint ventures (unless already included
under proportional consolidation)
-
-
Adjustments (i) to (viii) above in respect of joint ventures (unless already included
under proportional consolidation)
- -
Non-controlling interest in respect to the above 426 712
EPRA earnings 158,715 156,186
Basic number of shares 97,641,112 90,213,238
SHURGARD ANNUAL REPORT 2024
298
EPRA earnings per share (basic - €) 1.63 1.73
Diluted number of shares 97,938,426 90,530,920
EPRA earnings per share (diluted - €) 1.62 1.73
1 Including investment property under construction and right-of-use investment property assets.
2 For the year ended December 31, 2023, deferred taxes are impacted by an income of €158.7 million resulting from the reversal of deferred tax liabilities in
connection with the conversion of the group to a UK REIT.
ADJUSTED EPRA EARNINGS AND ADJUSTED EPRA EARNINGS PER SHARE
(in € thousands, except for earnings per share for the year ended December 31)
2024 2023
EPRA earnings 158,715 156,186
Company specific adjustments:
Deferred tax (benefit) expense on items other than the revaluation of investment
property
438 782
Cost incurred on ERP implementation, Lok’nStore integration and equity issuance 6,932 926
Compensation received for termination lease agreement -
-
Net impact of tax assessments and non-recurring expenses (74) 541
Foreign exchange loss on deal contingent forward 4,269 -
Current income tax adjustments in respect of the above (2,894) (34)
Non-controlling interest in respect to the above -
-
Adjusted EPRA Earnings 167,386 158,401
Basic number of shares 97,641,112 90,213,238
Adjusted EPRA earnings per share (basic) € 1.71 1.76
Diluted number of shares 97,938,426 90,530,920
Adjusted EPRA earnings per share (diluted) € 1.71 1.75
ADJUSTED EPRA EARNINGS EFFECTIVE TAX RATE
(in € thousands, for the year ended December 31)
2024 2023
Adjusted EPRA earnings 167,386 158,401
Current Tax Expense 34,869 29,419
Adjusted EPRA Earnings Effective Tax Rate 17.2% 15.7%
SHURGARD ANNUAL REPORT 2024
299
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, for the year ended December 31) 2024 2023
GBP/EUR exchange rate – increase 10% 4,036 3,626
SEK/EUR exchange rate – increase 10% 322 2,385
DKK/EUR exchange rate – increase 10% 1,074 997
Positive amounts represent an increase in adjusted EPRA earnings.
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 NAV and EPRA Triple NAV, EPRA NRV, EPRA NTA and EPRA NDV per share:
The bases of calculation of each of the above measures set out above, are illustrated below.
(in € thousands, except for NAV per share)
December 31, 2024 December 31, 2023
NAV 4,011,115 3,614,217
NAV per share (basic) € 40.73 37.14
NAV per share (diluted) € 40.62 36.98
EPRA NRV 5,372,358 4,708,381
EPRA NRV per share (diluted) € 54.41 48.17
EPRA NTA (diluted) 4,781,617 4,307,807
EPRA NTA per share (diluted) € 48.43 44.07
EPRA NDV (diluted) 4,035,142 3,667,931
EPRA NDV per share (diluted) € 40.87 37.53
EPRA Group LTV % 23.6% 12.5%
EPRA Combined LTV % 23.6% 12.5%
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, 2024
December 31, 2023
NAV attributable to ordinary equity holders of the parent 4,011,115 3,614,217
Number of ordinary shares at the reporting date 98,486,798 97,311,896
Number of diluted shares at the reporting date 254,807 427,052
NAV per share (basic) € 40.73 37.14
NAV per share (diluted) € 40.62 36.98
SHURGARD ANNUAL REPORT 2024
300
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, 2024
December 31, 2023
Equity attributable to ordinary equity holders of the parent (diluted) 4,011,115 3,614,217
Include / Exclude:
Hybrid instruments -
-
Diluted NAV 4,011,115 3,614,217
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 4,011,115 3,614,217
Exclude:
Deferred taxes on fair value adjustments of investment property 784,341 701,247
Fair value of financial instruments -
-
Goodwill as a result of deferred tax -
-
Include:
Real estate transfer tax 576,902 392,917
EPRA NRV 5,372,358 4,708,381
Fully diluted number of shares 98,741,605 97,738,948
EPRA NRV per share (diluted) € 54.41 48.17
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.
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, 2024
December 31, 2023
Equity attributable to ordinary equity holders of the parent (diluted) 4,011,115 3,614,217
Include / Exclude:
Hybrid instruments -
-
Diluted NAV 4,011,115 3,614,217
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 -
-
SHURGARD ANNUAL REPORT 2024
301
Diluted NAV at fair value 4,011,115 3,614,217
Exclude:
Deferred taxes on fair value adjustments of investment property 784,341 701,247
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
(13,839) (7,657)
Include:
Real estate transfer tax
1
-
-
EPRA NTA 4,781,617 4,307,807
Fully diluted number of shares 98,741,605 97,738,948
EPRA NTA per share (diluted) € 48.43 44.07
1 The Company did not opt for the “optimised net property value” approach, as we do not have a history that would indicate that we can achieve lower taxes
when buying and selling and as we have a buy and hold strategy, which would indicate limited relevance of the optimised EPRA NTA.
In the above EPRA NTA calculation, the fair value adjustment of our notes issued and deferred tax expense other
than on the fair value adjustment of investment property are not considered.
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, 2024
December 31, 2023
NAV attributable to ordinary equity holders of the parent (diluted) 4,011,115 3,614,217
Include / Exclude:
Hybrid instruments
Diluted NAV 4,011,115 3,614,217
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 4,011,115 3,614,217
Exclude:
Goodwill as a result of deferred tax -
-
Goodwill recognized in the statement of financial position -
-
Include: -
-
Fair value of fixed interest rate debt: Carrying value senior
guaranteed notes lower than fair value (Note 19)
24,027 53,714
EPRA NDV 4,035,142 3,667,931
Fully diluted number of shares 98,741,605 97,738,948
EPRA NDV per share (diluted) € 40.87 37.53
In the above EPRA NDV calculation, all our cumulative deferred tax expense is not considered.
SHURGARD ANNUAL REPORT 2024
302
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.
As of December 31, 2024, EPRA LTV is as follows:
Proportionate Consolidation
EPRA LTV Metric
Group as
reported
€ '000
Share of
joint-
ventures
€ '000
Share of
Material
Associates
€ '000
Non-
controlling
Interests
€ '000
Combined
€ '000
Include:
Borrowings from Financial Institutions 288,565 -
-
-
288,566
Bond loans 1,191,964 -
-
-
1,191,964
Foreign currency derivatives (futures,
swaps, options and forwards)
-
-
-
-
-
Net payables 142,888 -
-
1,968 144,856
Exclude:
Cash and cash equivalents (142,575) -
-
5 (142,569)
Net Debt (a) 1,480,842 -
-
1,973 1,482,815
Include:
Investment properties at fair value 6,108,860 -
-
(11,433) 6,097,427
Properties held for sale 657 -
-
-
657
Properties under development 160,629 -
-
- 160,629
Intangibles 13,839 -
-
-
13,839
Total Property Value (b) 6,283,986 -
-
(11,433) 6,272,553
LTV (a/b) 23.6% N/A 23.6%
Reconciliation of certain EPRA LTV components as of December 31, 2024:
SHURGARD ANNUAL REPORT 2024
303
Proportionate Consolidation
EPRA LTV Metric
Group as
reported
€ '000
Share of
joint-
ventures
€ '000
Share of
Material
Associates
€ '000
Non-
controlling
Interests
€ '000
Combined
€ '000
Investment property
Investment property presented in IFRS FS 6,249,911 -
-
-
6,249,911
Less ROU IP (IFRS 16) (141,051) -
-
-
(141,051)
Investment property for EPRA LTV
calculation
6,108,860 -
-
-
6,108,860
Payables, net
Trade and other receivables (29,566) -
-
31 (29,535)
Other current assets (15,707) -
-
(0) (15,707)
Other non-current assets (6,690) -
-
-
(6,690)
Other non-current liabilities -
-
-
-
-
Trade and other payables 143,691 -
-
2,129 145,820
Deferred revenue 40,306 -
-
(86) 40,220
Income tax payable 10,854 -
-
(107) 10,747
Net Payables 142,888 -
-
1,968 144,856
As of December 31, 2023, EPRA LTV is as follows:
Proportionate Consolidation
EPRA LTV Metric
Group as
reported
€ '000
Share of
joint-
ventures
€ '000
Share of
Material
Associates
€ '000
Non-
controlling
Interests
€ '000
Combined
€ '000
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) 615,557 -
-
1,641 617,197
Include:
Owner occupied property -
-
-
-
-
SHURGARD ANNUAL REPORT 2024
304
Investment properties at fair value 4,823,442 -
-
(10,676) 4,812,766
Properties held for sale 530
-
-
-
530
Properties under development 105,951 -
-
(0) 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 2024
305
Reconciliation of certain EPRA LTV components as of December 31, 2023:
Proportionate Consolidation
EPRA LTV Metric
Group as
reported
€ '000
Share of
joint-
ventures
€ '000
Share of
Material
Associates
€ '000
Non-
controlling
Interests
€ '000
Combined
€ '000
Investment property
Investment property presented in IFRS FS 4,929,819 -
-
(10,676) 4,919,142
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 (19,700)
Other current assets (19,721) -
-
12 (19,709)
Other non-current assets (8,979) -
-
-
(8,979)
Other non-current liabilities -
-
-
-
-
Trade and other payables 83,342 -
-
1,694 85,037
Deferred revenue 34,832 -
-
(81) 34,751
Income tax payable 5,538 -
-
(43) 5,495
Net Payables 75,283 -
-
1,611 76,894
CAPITAL EXPENDITURE
(in € thousands) 2024 2023 +/-
Acquisitions / Additions 788,515 67,336 N/A
Development 103,435 63,930 61.8%
Other: completed properties 84,176 49,888 68.7%
Like-for-like portfolio - - N/A
Capital Expenditure 976,126 181,154 438.8%
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 2024 relate to acquisition of stores in the UK, Germany, France and the Netherlands.
EPRA VACANCY RATE
(in € thousands, at CER, except where indicated) 2024 2023 +/-
Estimated rental revenue of vacant space 62,365 47,937 30.1%
Estimated rental revenue of the whole portfolio 420,122 362,323 16.0%
EPRA Vacancy Rate 14.8% 13.2% 1.6pp
SHURGARD ANNUAL REPORT 2024
306
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 year end. The EPRA vacancy rate came to 14.8% at the end of 2024 slightly
up compared to 13.2% in 2023, mainly due to the addition of new properties.
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 2024 Whole
portfolio
FY 2024 LFL portfolio
(in € thousands, at
CER, except where
indicated)
Total
market
value
Rental
revenue
2024
Total
market
value
Rental
revenue
2024
Rental
revenue
2023
Growth in LFL rental
revenue
€
%
France 1,197,050 77,336 1,057,110 71,503 68,798 2,705 3.9%
The Netherlands 1,104,683 74,596 893,200 66,571 61,474 5,097 8.3%
The United Kingdom 1,784,795 80,942 1,145,310 64,506 61,255 3,250 5.3%
Sweden 640,294 41,816 606,369 40,152 39,869 282 0.7%
Germany 856,184 42,885 440,650 29,827 26,984 2,843 10.5%
Belgium 326,160 25,357 326,160 25,357 23,501 1,856 7.9%
Denmark 239,243 14,825 239,243 14,825 14,039 786 5.6%
Total portfolio 6,148,409 357,757 4,708,042 312,740 295,920 16,820 5.7%
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 2024
307
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 2024 FY 2023 +/-
Administrative/operating expense line per IFRS income
statement
1
(166,511) (146,431) 13.7%
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 (823) (728) 13.0%
Service charge costs recovered through rents but not
separately invoiced
- - N/A
EPRA costs (including direct vacancy costs) (165,688) (145,703) 13.7%
Direct vacancy costs - - N/A
EPRA costs (excluding direct vacancy costs) (165,688) (145,703) 13.7%
Gross Rental Income less ground rent costs - per IFRS 358,580 313,279 14.5%
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 358,580 313,279 14.5%
EPRA Cost ratio (including direct vacancy costs) 46.2% 46.5% -0.3pp
EPRA Cost ratio (excluding direct vacancy costs) 46.2% 46.5% -0.3pp
1 The company has a policy of capitalizing overhead and operating expenses (e.g., legal fees, development staff, etc). For the year ended 2024, a total of €4.6
million was eligible for capitalization.
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 2024 FY 2023 +/-
Investment property – wholly owned 6,148,409 4,910,375 25.2%
Investment property – share of JVs/Funds - - N/A
Trading property (including share of JVs) - - N/A
Less: developments 63,447 89,909 -29.4%
Completed property portfolio 6,084,962 4,820,466 26.2%
Allowance for estimated purchasers’ costs 456,686 286,995 59.1%
Gross up completed property portfolio valuation 6,541,648 5,107,461 28.1%
Annualized cash passing rental income 357,757 312,551 14.5%
SHURGARD ANNUAL REPORT 2024
308
Property outgoings (44,616) (38,119) 17.0%
Annualized net rents
313,141 274,431 14.1%
Add: notional rent expiration of rent free periods or other lease
incentives
1
- - N/A
Topped-up net annualized rent 313,141 274,431 14.1%
EPRA Net Initial Yield (NIY) 4.8% 5.4% -0.6pp
EPRA 'topped-up' NIY 4.8% 5.4% -0.6pp
1 No unexpired lease incentives such as rent-free periods, discounted rent periods and step rents applicable.
SHURGARD ANNUAL REPORT 2024
309
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