Shurgard Self-Storage shares tumble on guidance cut

Shares of Shurgard Self-Storage Ltd (SHUR) on the Amsterdam Stock Exchange (AMS) plummeted on Thursday after the company adjusted its fiscal 2026 guidance and abandoned its medium-term targets due to sluggish operating performance. The self-storage firm lowered its 2026 revenue growth forecast to 3.5%-4.5% from an earlier range of 6%-8%.

It also trimmed underlying EBITDA guidance to €263m-€268m from €278m-€289m. Shurgard now anticipates adjusted EPRA earnings per share of €1.64-€1.68, a decline of 3%-6% year-over-year, as opposed to the previously expected range of -1% to +4%. Property operating revenue grew 3% year-over-year to €229.6m in the first half of 2026, with same-store sales up by only 1.4%, which was below fourth quarter 2025 levels.

Shurgard cited a slower than expected pace of growth, noting that in-place rent growth was just 1% and occupancy rose by 10 basis points to 88.5%. The UK segment, accounting for 28% of the company's gross asset value, saw negative growth of 0.9%, while France remained relatively stable. EBITDA fell 1% year-over-year to €124m, with the operating margin slipping by 2.1 percentage points to 54%.

Shurgard ceased to reaffirm its 2027-2030 targets, which had targeted 6%-8% compound annual growth in adjusted EPRA earnings per share. The company stated it would reassess medium-term guidance once market conditions allow for a more definitive evaluation. Additionally, Shurgard abandoned its 9%-10% net operating income yield-on-cost target for properties.

EPRA net tangible assets per share stood at €53.6, up 1% year-to-date and 4% year-over-year, compared to the 10% growth seen in fiscal 2025. The company retained its annual dividend target of €1.17 per share, which will continue to be paid in cash. The company's loan-to-value ratio was 23.7%, and net debt to underlying EBITDA was 6.5x, both within the company's target ranges. This report was produced with AI assistance and subsequently reviewed by an editor.