Archives de catégorie Europe

Parrédaction

Les derniers chiffres du self stockage en Europe

Le concept né aux Etats Unis il y a trentaine d’années, consiste en la location de pièces appelées boxes. Elles sont fermées à clé et gardiennées. Le client a un code d’accès et détient seul la clé, il accède à son box quand bon lui semble. Outre sa grande souplesse avec des formalités réduites, il n’y a pas d’engagement de durée.

Le Royaume-Uni a été le premier en Europe à développer le concept du self stockage. Aujourd’hui on compte 860 en Angleterre. La progression est fulgurante il y avait seulement 60 sites en 1995.

En Europe continentale 550 sites sont ouvert dont 30% en France.

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Le marché anglais a exactement 7 ans d’avance sur le marché français. Il y avait 170 sites en 2000, soit le niveau actuel de la France. Si le self stockage français se comporte comme son voisin britannique, il devrait y avoir 800 bâtiments en France en 2014.

En tous les 167 sites français en 2007 représentent 520 000 m2 louables, soit 67 000 boxes. Les sites français font en moyenne 3 100 m2, avec des boxes d’une taille moyenne de 7,76 m2.

Les derniers sondages montrent que 35% des parisiens connaissent ce concept, alors qu’en province ce chiffre tombe à 10%.

Parrédaction

Première conférence self stockage en Espagne

Asociación Española de Self Storage (AESS) avait prévu des visites de sites de self-stockage et des intervenants européens tels que Cesare Carcano, président de Casaforte (Italie), Philippe Peyrot, président d’Annexx (France) et Alexander Ruckensteiner, président de Bluespace (Espagne) ont pu exposer leurs expériences et présenter l’état de leur marché national respectif.

Pour une première, ce fut un succès, de nombreux fournisseurs européens et opérateurs espagnols étaient au rendez-vous, ainsi que de futurs opérateurs.

Parrédaction

Public Storage, Inc. and Shurgard Storage Centers hold a shareholder meeting on

Public Storage, Inc. (NYSE:PSA) and Shurgard Storage Centers, Inc. (NYSE:SHU) announced today that they will each hold a shareholder meeting on July 26, 2006. Public Storage will hold its annual meeting of shareholders at 9:00 a.m. (PDT) on July 26, 2006, and Shurgard will hold a special meeting of shareholders at 9:00 a.m. (PDT) on July 26, 2006. Public Storage and Shurgard shareholders of record at the close of business on June 23, 2006 will be entitled to vote at their respective meetings. [

Parrédaction

A Year of Crazy Change in France Sixty-five percent of facilities sold

What a year! The French self-storage market was soft in 2003-2004, but last year was a turning point. Companies that didn’t get it right exited; those that chose the wrong location, developed a business plan based on U.S. ratios, or didn’t have enough financial support. During the last 12 months, 88 sites have been sold, representing 65 percent of all French facilities. After the wave of mergers and acquisitions, the market shows us a new face, with 68 percent controlled by only three corporations: Homebox, Shurgard and Une Pièce en Plus (UPP). Each company still in business now has an expansion plan, which wasn’t the case 18 month ago.

What has changed? Following 2000-2002, a period of strong expansion fueled by U.K./U.S. developers, the companies that looked at their bottom line and didn’t like what they saw reevaluated their plans. Awareness of self-storage services was low in France, so developers had to slow ramp up and proceed cautiously. To reduce construction costs for construction and head offices, they sought better locations and had to keep pace with the market. Those who didn’t adapt were sold. The survivors are now ready to expand because the market is thriving. France is already the second-largest European market, and without a doubt, self-storage will be successful.

What didn’t change? Most new entrants have difficulty finding sites, insurance and especially financing. Obviously, financial institutions need to accept the industry. Lack of capital has contributed to a situation in which most established facilities are owned by large companies.

In April 2005, Une Pièce en Plus bought all French facilities owned by Access, one of the oldest European companies. Seven of the sites were sold by UPP to Armadillo Self-Stockage last summer. Access has disappeared from France, but its English counterpart continues to trade under the name.

Devon Self-storage’s Lyon and Toulouse sites sold to Homebox in March. The facility in Marseille is expected to be bought by Shurgard.

BoxAvenue, which built only conversions, had six Paris sites and four in the province, nine of which were bought by Shurgard in January. Only Nantes stays independent and trades under the BoxAvenue name.

Shurgard was acquired by Public Storage in March 2005. At the time, Shurgard had 46 facilities in France. The U.S sites will be re-branded Public Storage, but in Europe nobody knows that brand, and even if Shurgard is a weird name no French person can pronounce correctly, it seems the brand will survive here. Before the merger, the company tried to buy a maximum of facilities to boost its numbers. The main challenge now is to be profitable.

In August 2004, Safestore bought Bridgepoint, UPP’s parent company. The new owner has strong development plans for UPP. Safestore bought the Access sites in Paris, and is focusing expansion on Paris, where it already has 16 sites. The plan is to open one facility a year.

Homebox has 19 facilities throughout France’s largest cities. The company underwent major changes, developing a sort of franchise for all its sites, which is yielding positive results. New facilities are opening under the franchise agreement.

[b]Now Entering …[/b]

Three-year-old Annexx is focusing on developing third-generation sites in the southwest of France. It owns three facilities in Toulouse, one in Bordeaux and another in Perpignan. Construction plans call for three new facilities annually.

Armadillo Self-Stockage shines as the new meaningful entrant. Armadillo was founded in Scotland by Alister Jack, who started Aardvark Self-storage in 1996 and sold it to Mentmore Abbey in the autumn of 2002. Armadillo is his latest star venture. He joined the French market in 2005 with the purchase of seven former Access sites, three in Paris, three in Lyon and one in Nice. Armadillo intends to expand in France.

Flexi Stockage opened its first site a year ago in Argenteuil near Paris. The company, backed by Irish Investors, has plans to open two sites a year in the Paris area.

More small entrepreneurs are interested in developing self-storage in France. The thinking process goes like this: “I have this not-so-great (or half-empty) warehouse that I’m not sure what to do with. Maybe self-storage is the way to go!” But because this business requires lot of capital, few design large, third-generation facilities. Instead, they develop small facilities from 600 to 2,500 square meters. The stores are usually managed as a sideline to a main business.

The French Self-storage Association has behaved like an elite club. Because it snubs new operators, now it has only three members. That’s 8 percent of all operators, even if the trio represents 68 percent of facilities. The French association has been recently hard-pressed by the European association FEDESSA to change its policy and accept small operators. The change will be difficult but necessary if the association wants to regain credibility and true representation.

France’s population is roughly equal to that of the United Kingdom. According to a recently released Steel Storage study, the U.K. market boasts 976 facilities with more than 100 new ones opening annually. France, with its 138 facilities, is ripe for self-storage. The service is well accepted by the French, but remains five years behind the United Kingdom. Self-storage is a business that blossoms slowly; it takes time for product awareness to grow.

Lately, midsize U.K. operators have shown keen interest in expanding their business into France by acquiring existing facilities; however, what was for sale has been sold. They will have to wait a couple of years before new opportunities arise.

Parrédaction

Public Storage achète Shurgard pour 5 milliards de dollars

L’accord était attendu depuis longtemps, c’est aujourd’hui officiel : l’américain Public Storage va racheter son homologue Shurgard Storage Centers, leader mondial du «self stockage» (service de location d’espaces de stockage dans des sites conçus à cet effet) pour un somme avoisinnant les 5 milliards de dollars.

Public Storage va ainsi émettre environ 38.4 millions d’actions communes en échange de l’ensemble des actions de Shurgard et reprend également les 1,8 milliard de dollars de dette. La finalisation de la transaction est prévu pour le second trimestre.

Shurgard Storage Centers Inc. est cotée à la bourse de New-York en tant que Real Estate Investment Trust (REIT) et gère plus de 610 sites dans 154 villes, dans 22 états des Etats-Unis et en Europe (Belgique, France, Suède, Royaume-Uni, Pays-Bas, Danemark et Allemagne ). En France, l’américain a racheté BoxAvenue, possède un réseau de près 46 sites.

Parrédaction

Public Storage buys Shurgard

The Boards of Directors of both companies approved a definitive merger agreement under which Public Storage will acquire Shurgard at a total transaction value of approximately $5.0 billion. Under the transaction, which is taxable, Public Storage will issue approximately 38.4 million shares of common stock, will assume approximately $1.8 billion of Shurgard debt and $136 million of Shurgard preferred stock will be redeemed. The transaction is targeted to close by the end of the second quarter 2006.

Under the terms of the merger agreement and upon close of the transaction, each share of Shurgard common stock will be exchanged for 0.82 shares of Public Storage common stock, representing a current value per Shurgard common share of $65.16 based on Public Storage’s close on Monday, March 6, 2006. This represents a 39% premium to Shurgard’s closing stock price on Friday, July 29, 2005, the last day prior to when Public Storage publicly announced its proposal to acquire Shurgard. Upon closing, Shurgard’s shareholders will own approximately 23% of the outstanding shares of the combined company.

The merger will enhance the size of the nation’s largest self-storage company with a combined total market capitalization of approximately $18 billion and with ownership interest in over 2,100 facilities in 38 states and seven European nations.

« The combination of Public Storage and Shurgard creates the largest self-storage company in the world, with significant operating platforms in both the United States and Europe, and enhances our prospects for continued growth and improved profitability, » said Ronald L. Havner, Jr., President and Chief Executive Officer of Public Storage. « We are pleased that Shurgard’s Board of Directors and management have recognized the compelling financial and strategic benefits of this transaction. This transaction provides Shurgard’s shareholders with a substantial premium for their shares and the opportunity to benefit from participation in the upside potential of the combined entity. We look forward to creating additional value for the shareholders of the combined company. »

David K. Grant, President and Chief Executive Officer of Shurgard, stated, « This merger represents a win-win situation for both Shurgard and Public Storage shareholders. A few months ago, we initiated a process to determine the best course of action for our Company. After reviewing a number of strategic alternatives, it is clear that this transaction is the best option to create long-term value for our shareholders. There are very few real estate asset classes that are as scalable as self-storage and none that benefits as much from economies of scale. Our combined employees represent the best and the brightest in the industry with deep experience in every aspect of the business in eight different countries. So there is a huge opportunity for these two groups of employees to benefit from each other’s experience and ideas. »

Given the geographic overlap of the Public Storage and Shurgard portfolios, economies of scale are expected in media. Other savings are expected to be achieved by reducing duplicate expenses for Yellow Pages and other advertising, management information systems and other back-office functions.

Public Storage will retain its headquarters in Glendale, California. Dave Grant will remain with the Company at least through the close of the transaction. An independent member of Shurgard’s Board of Directors will join the Public Storage Board of Directors upon closing.

The transaction is subject to customary closing conditions and regulatory approvals and the majority approval of both companies’ shareholders. Members of the Hughes family, who collectively own approximately 36% of Public Storage’s outstanding shares, have agreed to vote their shares in favor of the transaction. Similarly, Charles K. Barbo, Chairman of Shurgard, has agreed to vote his shares in favor of the transaction.

In connection with the transaction, Goldman Sachs is serving as exclusive financial advisor to Public Storage, and Wachtell, Lipton, Rosen & Katz is serving as its legal counsel. Citigroup Corporate and Investment Banking and Banc of America Securities LLC are serving as financial advisors to Shurgard, and Willkie Farr & Gallagher LLP and Perkins Coie LLP are serving as its legal counsel.

[b]Analyst/Investor Conference Call and Web Cast[/b]

A conference call has been scheduled for Tuesday, March 7, 2006, at 8:00 a.m. (PST) to discuss the merger. The participant toll free number is (877) 368-5103 (conference ID number 6282604). A simultaneous audio web cast may be accessed by using the link at www.publicstorage.com under « Corporate Information, Investor Relations. » A replay of the conference call may be accessed through March 13, 2006 by calling (800) 642-1687 or by using the aforementioned web link. Both forms of replay utilize conference ID number 6282604.

About Public Storage, Inc.

Public Storage, Inc., an S&P 500 company, is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities. The Company’s headquarters are located in Glendale, California. The Company’s self-storage properties are located in 37 states. At December 31, 2005, the Company had interests in 1,501 storage facilities with approximately 92 million net rentable square feet.

Additional information about Public Storage, Inc. is available on its website, www.publicstorage.com

About Shurgard Storage Centers, Inc

Shurgard Storage Centers, Inc. is a real estate investment trust headquartered in Seattle, Washington. Shurgard specializes in all aspects of the self-storage industry and operates a network of over 644 operating storage centers located throughout the United States and in Europe.

Parrédaction

Shurgard Announces Fourth Quarter and 2004 Annual Results

European Operating Results

At constant exchange rates, the Europe Same Store segment in the fourth quarter of 2004 generated increases in revenue of 7.7% and NOI before leasehold and indirect expenses of 2.0% over the fourth quarter of 2003. NOI after leasehold and indirect expenses in the quarter grew 0.5% from the same quarter in 2003. Strong revenue growth due to a combination of occupancy gains and rental rate growth was largely offset during the quarter by increased operating expenses, primarily related to special marketing efforts as management targets occupancy growth in the stores not yet at stabilized occupancy levels. At constant exchange rates, Europe Same Stores for the full year 2004 generated growth in revenue and NOI after leasehold and indirect expenses of 9.5% and 15.5%, respectively, over the previous year.

The average occupancy for the full year 2004 of the Europe Same Store pool (75%) is lower than the average occupancy of the Domestic Same Store portfolio during the same period (85%), in part because of the significantly younger average age of the stores in the European portfolio, with some stores in the Europe Same Store pool still in rent-up. The Company also believes its operating performance in Europe continues to be influenced by weaker economies in some of its European markets and by a temporary over-supply in certain markets from new developments by Shurgard and its competitors.

Table 14: SHURGARD STORAGE CENTERS, INC. EUROPEAN YEAR TO DATE SAME STORE RESULTS European Same Store Results for year ended December 31, 2004, 2003 and 2002 (unaudited) As defined in 2004 (1) ——————————— Year ended December 31, ——————————— (in thousands except average rent) 2004 2003(5) % Change ———- ———- ——— Storage center operations revenue $ 73,241 $ 66,867 9.5% Operating expense: Personnel expenses 10,035 9,040 11.0% Real estate taxes 3,150 2,888 9.1% Repairs and maintenance 2,786 2,386 16.8% Marketing expense 4,972 4,297 15.7% Utilities and phone expenses 1,846 1,920 -3.9% Cost of Goods Sold 2,515 2,337 7.6% Store admin and other expenses 5,235 4,849 8.0% ———- ———- Direct operating and real estate tax expense 30,539 27,717 10.2% ———- ———- NOI 42,702 39,150 9.1% Leasehold expense 1,620 1,563 3.6% ———- ———- NOI after leasehold expense 41,082 37,587 9.3% Indirect operating expense (3) 8,781 9,610 -8.6% ———- ———- NOI after indirect operating and leasehold expense $ 32,301 $ 27,977 15.5% ========== ========== Avg. annual rent per sq. ft. (4) $ 21.52 $ 21.17 1.7% Avg. sq. ft. occupancy 75.0% 69.6% 7.8% Total net rentable sq. ft. 4,078,000 4,078,000 Number of properties 72 72 As defined in 2003 (2) ——————————— Year ended December 31, ——————————— (in thousands except average rent) 2003(5) 2002(5) % Change ———- ———- ——— Storage center operations revenue $ 44,523 $ 41,714 6.7% Operating expense: Personnel expenses 5,435 4,832 12.5% Real estate taxes 1,714 1,830 -6.3% Repairs and maintenance 1,447 1,287 12.4% Marketing expense 2,309 2,150 7.4% Utilities and phone expenses 1,084 996 8.8% Cost of Goods Sold 1,466 1,084 35.2% Store admin and other expenses 2,718 2,712 0.2% ———- ———- Direct operating and real estate tax expense 16,173 14,891 8.6% ———- ———- NOI 28,350 26,823 5.7% Leasehold expense 1,167 1,062 9.9% ———- ———- NOI after leasehold expense 27,183 25,761 5.5% Indirect operating expense (3) 5,328 5,480 -2.8% ———- ———- NOI after indirect operating and leasehold expense $ 21,855 $ 20,281 7.8% ========== ========== Avg. annual rent per sq. ft. (4) $ 19.28 $ 18.66 3.3% Avg. sq. ft. occupancy 75.5% 73.5% 2.7% Total net rentable sq. ft. 2,736,000 2,736,000 Number of properties 47 47 (1) Amounts have been translated from local currencies at a constant exchange rate using the average exchange rate for 2004 for the 2004 to 2003 comparison and at 2003 average exchange rates for the 2003 to 2002 comparison. (2) Amounts have been translated from local currencies at a constant exchange rate using the average exchange rate for 2003 for the 2003 to 2002 comparison. (3) Indirect operating expense includes certain shared property costs such as district and regional management, national contracts personnel and marketing, as well as certain overhead costs allocated to property operations such as business information technology, human resources and accounting. It does not include internal real estate acquisition cost or abandoned development expense. Indirect operating expense is allocated to storage centers based on number of months in operation during the period. (4) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period. (5) The 2003 results were not consolidated in our Consolidated Financial Statements. Table 15: SHURGARD STORAGE CENTERS, INC. EUROPEAN 2004 ANNUAL COMPARISON Annual comparison for European same store of 2004 versus 2003 and the annual comparison for European same store of 2003 versus 2002 (unaudited) Percent change of 2004 compared to 2003 —————————– 2004 Number of Average Properties Occupancy Revenue NOI Occupancy Rate —————————– —– ——— —– Belgium 15 77.1% 4.2% 5.4% 1.5% 1.8% Netherlands 15 69.6% 10.6% 9.8% 10.3% 1.2% France 16 82.3% 11.6% 14.3% 11.0% -0.2% Sweden 17 72.2% 10.9% 10.4% 9.3% 2.1% Denmark 2 73.7% 22.5% 37.9% 16.8% 2.4% United Kingdom 7 72.9% 7.1% -0.6% 4.7% 2.6% ———- ———- ——- —– ——— —– Europe Totals 72 75.0% 9.5% 9.1% 7.8% 1.7% ========== ========== ======= ===== ========= ===== Percent change of 2003 compared to 2002 —————————– 2003 Number of Average Properties Occupancy Revenue NOI Occupancy Rate —————————– —– ——— —– Belgium 14 77.3% 1.2% -4.0% -0.9% 4.5% Netherlands 6 75.4% 10.7% 12.9% 5.2% 4.7% France 11 78.5% 14.2% 21.8% 6.1% 6.5% Sweden 11 70.9% -0.8% -5.8% 1.4% -3.0% United Kingdom 5 74.7% 7.0% 11.7% 7.3% 0.2% ———- ———- ——- —– ——— —– Europe Totals 47 75.5% 6.7% 5.7% 2.7% 3.3% ========== ========== ======= ===== ========= ===== Table 16: SHURGARD STORAGE CENTERS, INC. DOMESTIC YEAR TO DATE SAME STORE VINTAGE TABLE Domestic Same Store Vintage Analysis for the year December 31, 2004, 2003 and 2002 (unaudited) (In Total Net millions) Rentable Total sq. ft. Storage when Average Occupancy Number of Center all phases —————– Properties Cost (1) are complete 2004 2003 2002 ———— ———- ———– —– —– —– Same Store since 2004 60 $222.6 4,449,000 78% 74% 63% Same Store since 2003 30 137.2 1,845,000 84% 79% 69% Same Store since 2002 or prior 321 1,242.6 20,750,000 86% 85% 85% ————- ———- ———– —– —– —– Same Store total 411 $1,602.4 27,044,000 85% 83% 81% ============= ========== =========== ===== ===== ===== (In thousands) Average Annual Rent (per sq. ft)(2) Revenue ———————– —————————– 2004 2003 2002 2004 2003 2002 ——- ——- ——- ——— ——— ——— Same Store since 2004 $8.15 $7.84 $7.20 $30,937 $27,534 $14,658 Same Store since 2003 13.18 12.58 12.50 22,048 20,287 17,881 Same Store since 2002 or prior 12.04 11.82 11.84 235,084 227,576 226,125 ——- ——- ——- ——— ——— ——— Same Store total $11.53 $11.30 $11.47 $288,069 $275,397 $258,664 ======= ======= ======= ========= ========= ========= (In thousands) NOI (after leaseholds expenses) —————————— 2004 2003 2002 ——— ——— ———- Same Store since 2004 $18,810 $15,800 $7,349 Same Store since 2003 11,596 10,593 8,301 Same Store since 2002 or prior 160,413 154,748 155,562 ——— ——— ———- Same Store total $190,819 $181,141 $171,212 ========= ========= ========== (1) Total capitalized costs to storage centers since the store was acquired or developed. (2) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period. Table 17: SHURGARD STORAGE CENTERS, INC. EUROPEAN DEVELOPMENT European Development Performance Vintage Analysis for the year ended December 31, 2004, 2003 and 2002 (unaudited) (in Total Net Average Occupancy millions) Rentable —————– Number Total sq. ft. For the year ended, of Storage when all December 31, Prop- Center phases are —————– erties Cost (1) complete 2004 2003 2002 ——— ——— ———- ——– —– —– Opened in 2004 Germany 4 $ 28.0 202,000 5.0% – – France 4 24.7 217,000 1.9% – – Denmark 2 15.4 101,000 10.2% – – United Kingdom 3 32.4 123,000 28.9% – – ——— —— ———- ——– —– —– Total opened in 2004 13 $100.5 643,000 9.3% – – ========= ====== ========== ======== ===== ===== Opened in 2003 Belgium 1 $ 3.8 46,000 51.8% 4.9% – Netherlands 7 42.2 351,000 30.3% 2.1% – Germany 5 38.2 268,000 25.8% 2.6% – France 7 46.9 371,000 25.1% 3.1% – Sweden 2 12.5 94,000 36.2% 7.8% – Denmark 1 8.4 50,000 53.1% 9.5% – United Kingdom 3 34.0 149,000 34.4% 4.2% – ——— —— ———- ——– —– —– Total opened in 2003 26 $186.0 1,329,000 30.4% 3.5% – ========= ====== ========== ======== ===== ===== Opened in 2002 Belgium 2 $ 7.8 101,000 46.8% 33.7% 11.7% Netherlands 7 44.0 368,000 49.1% 29.7% 5.1% France 7 46.9 376,000 59.5% 35.0% 10.2% Sweden 3 20.2 151,000 66.5% 40.8% 12.5% Denmark 2 15.7 106,000 60.6% 25.1% 2.1% United Kingdom 3 35.4 163,000 61.2% 27.2% 3.7% ——— —— ———- ——– —– —– Total opened in 2002 24 $170.0 1,265,000 56.6% 32.2% 7.6% ========= ====== ========== ======== ===== ===== New Store Total 63 $456.5 3,237,000 36.5% 14.0% 7.6% ========= ====== ========== ======== ===== ===== Same store: —————— Opened in 2001 Belgium 1 $ 4.0 51,000 65.7% 53.5% 25.8% Netherlands 9 51.7 484,000 64.1% 54.2% 32.3% France 5 35.9 280,000 80.2% 65.2% 40.5% Sweden 6 35.7 315,000 69.4% 55.6% 28.3% Denmark 2 14.4 110,000 73.7% 63.1% 42.0% United Kingdom 2 22.2 102,000 61.8% 56.2% 47.1% ——— —— ———- ——– —– —– Total opened in 2001 25 $163.9 1,342,000 69.4% 57.7% 34.7% ========= ====== ========== ======== ===== ===== Opened in 2000 and before Belgium 14 $ 72.4 855,000 77.8% 77.3% 78.1% Netherlands 6 37.5 345,000 77.2% 75.4% 71.7% France 11 63.2 585,000 83.4% 78.5% 74.0% Sweden 11 68.0 677,000 73.5% 70.9% 70.0% United Kingdom 5 47.6 274,000 77.0% 74.7% 69.6% ——— —— ———- ——– —– —– Total opened before 2001 47 $288.7 2,736,000 77.8% 75.5% 73.5% ========= ====== ========== ======== ===== ===== Same Store Total 72 $452.6 4,078,000 75.0% 69.6% 60.1% ========= ====== ========== ======== ===== ===== (In thousands) Average Annual Rent (per sq. ft) (2) (3) Revenue (2) ———————— ————————– For the year ended, For the year ended, December 31, December 31, ———————— ————————– 2004 2003 2002 2004 2003 2002 —— —— —— ——- ——- ——- Opened in 2004 Germany $17.00 $ – $ – $ 193 $ – $ – France 21.77 – – 106 – – Denmark 18.95 – – 250 – – United Kingdom 19.56 – – 753 – – —— —— —— ——- ——- ——- Total opened in 2004 $19.17 $ – $ – $ 1,302 $ – $ – ====== ====== ====== ======= ======= ======= Opened in 2003 Belgium $14.49 $ 9.43 $ – $ 369 $ 24 $ – Netherlands 19.93 14.97 – 2,266 125 – Germany 14.20 7.62 – 1,069 61 – France 22.24 20.58 – 2,430 287 – Sweden 17.41 13.05 – 717 119 – Denmark 21.98 20.23 – 670 119 – United Kingdom 40.05 36.06 – 2,317 279 – —— —— —— ——- ——- ——- Total opened in 2003 $21.64 $18.11 $ – $ 9,838 $ 1,014 $ – ====== ====== ====== ======= ======= ======= Opened in 2002 Belgium $12.28 $12.18 $11.48 $ 625 $ 454 $ 122 Netherlands 18.82 18.95 14.76 3,614 2,266 152 France 19.93 20.56 19.89 5,183 3,142 632 Sweden 20.05 18.07 17.13 2,277 1,319 255 Denmark 21.44 20.76 10.70 1,503 607 5 United Kingdom 40.32 42.88 34.91 4,526 2,226 109 —— —— —— ——- ——- ——- Total opened in 2002 $22.14 $21.49 $17.85 $17,728 $10,014 $ 1,275 ====== ====== ====== ======= ======= ======= New Store Total $21.82 $21.15 $17.85 $28,868 $11,028 $ 1,275 ====== ====== ====== ======= ======= ======= Same store: —————— Opened in 2001 Belgium $15.42 $14.77 $14.02 $ 573 $ 449 $ 209 Netherlands 17.94 17.97 17.45 5,906 5,061 3,032 France 22.05 21.84 21.30 5,554 4,449 2,867 Sweden 18.24 17.50 17.77 4,612 3,602 1,875 Denmark 21.23 20.73 20.33 1,888 1,542 998 United Kingdom 41.01 41.85 37.87 2,876 2,706 2,082 —— —— —— ——- ——- ——- Total opened in 2001 $20.76 $20.68 $20.75 $21,409 $17,809 $11,063 ====== ====== ====== ======= ======= ======= Opened in 2000 and before Belgium $15.87 $15.61 $14.91 $11,684 $11,317 $10,949 Netherlands 22.26 21.45 20.47 6,383 6,052 5,457 France 26.29 26.25 24.66 14,271 13,323 11,702 Sweden 20.80 20.37 20.92 11,821 11,222 11,143 United Kingdom 32.40 31.18 31.13 7,673 7,144 6,687 —— —— —— ——- ——- ——- Total opened before 2001 $21.85 $21.36 $20.64 $51,832 $49,058 $45,938 ====== ====== ====== ======= ======= ======= Same Store Total $21.52 $21.17 $20.68 $73,241 $66,867 $57,001 ====== ====== ====== ======= ======= ======= (In thousands) NOI (2) (4) (after leasehold expenses) ——————————– For the year ended, December 31, ——————————– 2004 2003 2002 ——- ——- ——– Opened in 2004 Germany $ (887) $ – $ – France (625) (2) – Denmark (259) – – United Kingdom 84 – – ——- ——- ——– Total opened in 2004 $(1,687) $ (2) $ – ======= ======= ======== Opened in 2003 Belgium $ 110 $ (93) $ – Netherlands (357) (829) – Germany (915) (941) – France (783) (790) – Sweden (92) (314) – Denmark 232 (222) – United Kingdom 456 (204) – ——- ——- ——– Total opened in 2003 $(1,349) $(3,393) $ – ======= ======= ======== Opened in 2002 Belgium $ 89 $ (145) $ (255) Netherlands 1,253 51 (580) France 1,658 (5) (791) Sweden 1,008 186 (413) Denmark 560 (191) (254) United Kingdom 2,274 361 (274) ——- ——- ——– Total opened in 2002 $ 6,842 $ 257 $ (2,567) ======= ======= ======== New Store Total $ 3,806 $(3,138 ) $ (2,567) ======= ======= ======== Same store: —————— Opened in 2001 Belgium $ 317 $ 143 $ (57) Netherlands 2,532 1,907 (4) France 3,073 2,010 809 Sweden 2,133 1,399 (223) Denmark 873 633 107 United Kingdom 1,633 1,557 1,035 ——- ——- ——– Total opened in 2001 $10,561 $ 7,649 $ 1,667 ======= ======= ======== Opened in 2000 and before Belgium $ 7,549 $ 7,322 $ 7,630 Netherlands 3,983 4,020 3,561 France 7,993 7,596 6,248 Sweden 6,475 6,366 6,748 United Kingdom 4,521 4,634 4,153 ——- ——- ——– Total opened before 2001 $30,521 $29,938 $ 28,340 ======= ======= ======== Same Store Total $41,082 $37,587 $ 30,007 ======= ======= ======== (1) The actual completed cost of these projects are reported in U.S. dollars translated at the December 31, 2004 exchange rate of $1.36 to the euro. Operating results (see note (2) below) are reported at the average exchange rate for the year 2004 which was $1.24 to the euro. As these exchange rates are different we believe it does not allow for an accurate measure of property investment yield. We believe the application of a constant exchange rate to both the property cost and operating results would provide a more meaningful measure of investment yield. The cost of the storage centers excludes the excess cost of approximately $247 million we paid for part of our ownership interest acquisition in Shurgard Europe in 2003. (2) The amounts have been translated from local currencies at a constant exchange rate using the average exchange rate for 2004. (3) Average annual rent per square foot is calculated by dividing actual rent collected by the average number of square feet occupied during the period. On the year of opening the average annual rent is lower as the store had not been opened a full year. (4) Expenses in some instances may include certain pre- opening costs Table 19: SHURGARD STORAGE CENTERS, INC. STORE ASSET VALUES AND OPERATING INFORMATION For the three months ended December 31, 2004 (Unaudited) Weighted average (in thousands Net except for No. of ownership Rentable Occupancy Gross Book number of Square properties) Properties interest Feet (Q4 Avg) Value (7) ———- ——— ——— ——— ———– Same Store —————- Domestic wholly owned or leased (1) 328 100% 21,105 85% $1,264,519 Domestic consolidated joint ventures (2) 83 79% 5,939 83% 337,863 European consolidated subsidiary (4) 72 87% 4,078 77% 618,821 ———- ——— ——— ——— ———- Total Same Store 483 94% 31,122 84% $2,221,203 ========== ========= ========= ========= ========== New Store —————- Domestic wholly owned or leased developments (1) 22 100% 1,283 67% $ 119,395 Domestic consolidated joint ventures developments (2) 12 73% 728 61% 53,467 Domestic acquisitions (3) 27 96% 1,950 80% 153,784 European consolidated subsidiary developments (4) 30 87% 1,550 60% 296,200 European 20% development ventures developments (5) 32 17% 1,649 30% 225,466 European acquisition (3) 1 100% 38 88% 15,713 Domestic Properties under leasing arrangements (6) 3 0% 211 61% 22,481 ———- ——— ——— ——— ———- Total New Store 127 71% 7,409 60% $ 886,506 ========== ========= ========= ========= ========== TOTALS 610 89% 38,531 79% $3,107,709 ========== ========= ========= ========= ========== (in thousands Fair except for Applicable Q4 Q4 Leasehold value number of properties) debt ( 8 ) Revenue NOI (9) Expense of debt ———- ——— ——– ——— ——— Same Store —————- Domestic wholly owned or leased (1) $ 50,793 $ 59,399 $40,441 $1,116 $ 51,022 Domestic consolidated joint ventures (2) 154,046 13,335 9,066 25 161,184 European consolidated subsidiary (4) 313,797 19,691 11,783 426 313,797 ——– ——– ——- —— ——– Total Same Store $518,636 $ 92,425 $61,290 $1,567 $526,003 ======== ======== ======= ====== ======== New Store —————- Domestic wholly owned or leased developments (1) $ – $ 2,847 $ 1,175 $ 120 $ – Domestic consolidated joint ventures developments (2) 3,807 1,498 668 – 3,837 Domestic acquisitions (3) 36,095 4,517 2,798 – 36,232 European consolidated subsidiary developments (4) 140,614 6,175 2,650 69 140,614 European 20% development ventures developments (5) 137,764 2,920 (691) 61 137,764 European acquisition (3) – 430 247 – – Domestic Properties under leasing arrangements (6) – 584 297 – – ——– ——– ——- —— ——– Total New Store $318,280 $ 18,971 $ 7,144 $ 250 $318,447 ======== ======== ======= ====== ======== TOTALS $836,916 $111,396 $68,434 $1,817 $844,450 ======== ======== ======= ====== ======== 1 Includes owned and leased properties in which we have a 100% interest. 2 Includes properties in which we own an interest less than 100% but that are consolidated in our financial statements. The store information and results reflected the full 100% amounts. Our pro-rata share in the same store pool is approximately 79% and our pro-rata share in the new store pool is represents approximately 73%. 3 Includes all stores acquired in 2004 and 2003. 4 Includes properties developed under Shurgard Europe in which we hold an 87.23% interest. 5 Includes properties developed under First and Second Shurgard in which we hold a 17.4% interest. 6 Three storage centers are operated through a leasing arrangement with a California developer for which the storage centers assets are consolidated in our financial statements but not the store operations. 7 Gross Book Value represents the cost of developing properties at the time they were developed, not the value at which partners interests in the properties may have been acquired for at a later date. The actual completed cost of these projects are reported in U.S. dollars translated at the December 31, 2004 exchange rate of $1.36 to the Euro. Operating results are reported at the average exchange rate for the year ended December 31, 2004 which was $1.24 to the Euro. As these exchange rates are different we believe it does not allow for an accurate measure of property investment yield. However, we believe the application of a constant exchange rate to both the property cost and operating results may provide a more meaningful measure of investment yield. 8 Applicable debt represents debt secured against each asset pool. Represents Net Operating Income after Direct Expenses. The indirect expenses not included in NOI for Domestic 9 Same Store, European Same store, Domestic New Store and Europe Store are the following (in thousands except indirect expense per revenue dollar): Indirect expense Q4 indirect per revenue expense Q4 revenue dollar —————- —————– ————— Domestic Europe Domestic Europe Domestic Europe ——– ——- ——– ——– ——– —— Same Store $4,702 $2,483 $72,734 $13,335 $0.06 $0.19 —— —— ——- ——- —– —– New Store $ 646 $2,798 $ 9,446 $ 9,525 $0.07 $0.29 —— —— ——- ——- —– —– SOURCE: Shurgard Storage Centers, Inc. Shurgard Storage Centers, Inc. Dev Ghose or Stuart Blackie, 206-624-8100 or Broadgate Consultants, Inc. Alan Oshiki, 212-232-2222 (Media Contact) Copyright Business Wire 2005 News Provided by COMTEX
Parrédaction

Deal of the Year

The £209 million takeover of a storage company by a competitor five times smaller has been named the Birmingham Deal of the Year.

Safestore Holdings became the biggest self storage company in Britain after spending £209 million to acquire Mentmore Abbey.

The Hertfordshire firm is now the second largest storage company in Europe, with an annual turnover of £50 million.

Parrédaction

Financing in the U.K. Self-Storage Market

Fast growth, enormous potential attract investors

By Andrew Jacobs
The U.S. self-storage market is more than 30 years old and comprises more than 37,000 properties, with an average occupancy of 84.6 percent. It has grown rapidly from 1992, when 19,500 properties experienced an average occupancy rate of 84.8 percent. The U.K. market, on the other hand, is in its early stages, with only 400 facilities. U.K. investors and financiers, encouraged by cross-cultural comparisons, are hopeful their immature self-storage market will follow the product growth enjoyed in the United States over the past few decades.

The U.K. storage market has two distinct characteristics: It is highly fragmented and growing extremely fast. Both are attractive to financiers, as consolidation and growth in any industry require money. The rapid expansion and earning potential of self-storage in the United Kingdom is driving consolidation at the top and bottom ends of the market. The bigger companies in the sector are using their tremendous buying power to seize market share and force operational efficiencies via information-technology systems.

A year ago, the four major U.K. self-storage players were quoted on the London Stock Exchange (LSE): Big Yellow, Lok’nStore, Mentmore and Safestore. These companies used their quoted status to raise capital through the equity markets. The strategy allowed them to avoid expensive debt and finance growth early in the establishment of businesses that, at the time, weren’t generating cash, let alone profits.

The consolidation that has taken place in the United Kingdom over the past year is largely due to U.S. financial institutions that see the enormous potential for growth. U.S. private-equity business Bridgepoint bought Safestore in August 2003 and took it private. In 2004, following a bidding war against Guy Hands, another private-equity player, Safestore—again backed by Bridgepoint—bought Mentmore. Mentmore was removed from the LSE and assimilated into the Safestore business. It’s now the largest U.K. self-storage player, with 70 stores across the country.

Debt vs. Equity Financing

Top-end consolidation of the market is sensible because debt is a cheap way of financing growth in a period of sustained low interest rates. The cost of capital has decreased relative to equity finance, which is relatively expensive in a low-interest-rate environment.

In neither the equity nor debt-financed models are businesses run for dividend flow. It isn’t yield that interests either set of investors at this early stage. They are looking at capital growth and gaining a strong market position for future expansion and dividends. At this point, all the U.K. players are driving for scale and site location, key tenets to a successful business going forward.

There are advantages to both financing models. Being quoted on the LSE allows businesses to issue paper to finance growth, and that motivates those involved—including board members, storage managers and sales teams. Lok’nStore aligned the interests of much of its staff with shareholders by issuing options and discounted shares. The move has yielded significant results, creating motivated team members focused on what they need to make good money for themselves and, therefore, shareholders.

Big Players and the LSE

After the sales of Safestore and Mentmore, the only other LSE quoted player is Big Yellow, which has 32 stores and has just been reclassified from the Support Services sector to the Real Estate sector—an interesting move. This has been done to encourage the City to value the business—not on a discounted cash-flow basis, but in terms of its net asset value. Big Yellow accompanied its announcement with news the company will commission an external valuation of its property assets, all in an attempt to get a higher rating.

The U.K. industry expects Safestore to come back to the market and list on the LSE at some point as Bridgepoint looks for an exit. The move will come as the cost of debt increases in the future and the entire industry matures; all the players will generate not only significant cash, but profits to pay generous dividends to shareholders.

This move would be welcomed by Lok’nStore. A problem with having only two quoted self-storage companies listed on the LSE is the relative lack of comparative businesses. The more quoted players there are, the more interest broking houses will show. Also, it increases the following of sell-side analysts and attracts more investors in the sector, which, again, helps communicate the value of the business and drives liquidity. Lok’nStore’s rating would likely improve if there were more listed self-storage companies.

The relatively green U.K. market is growing fast and already generating noteworthy amounts of cash. It is showing every sign that it will follow the United States in terms of growth, profitability and continued consolidation. An interesting and exciting few years lie ahead for the industry and its financiers as U.K. self-storage grows from adolescence to adulthood.

Andrew Jacobs is chief executive of Lok’nStore Group PLC, one of two self-storage companies quoted on the London Stock Exchange. For more information, visit www.loknstore.co.uk.

This article was reprinted with permission from Inside Self-Storage magazine, the premier magazine of self-storage professionals. For more information, visit www.insideselfstorage.com.

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