Shurgard Self Storage : LoknStore shareholders vote in favor of acquisition

FOR IMMEDIATE RELEASE

June 10, 2024 at 1:45 p.m. BST

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

Shurgard Self Storage Ltd

("Shurgard" or the "Company")

Lok'nStore shareholders vote in favor of acquisition

On April 11, 2024, Shurgard (Euronext Brussels: SHUR), the largest developer, owner, and operator of self-storage facilities in Europe, announced a cash offer to acquire the entire issued and to be issued share capital of Lok'nStore (the "Acquisition"). The UK scheme of arrangement to implement the Acquisition was subject to Lok'nStore shareholder approval, which Shurgard is pleased to announce was received today, with 76.92% of those voting at the Court Meeting and 76.94% of those voting at the General Meeting, voting in favor. Shurgard and Lokn'Store have now begun integration planning to ensure that both parties are prepared for successful completion, which is expected to occur on August 1, 2024. Shurgard will consolidate Lok'nStore financial as of this date.

Commenting on the Acquisition, Marc Oursin, Chief Executive Officer of Shurgard, said:

"Following the successful shareholder vote, I am looking forward to bringing this high-quality business and team into Shurgard. The acquisition of Lok'nStore will double our presence in the UK, a key target market, and will accelerate our growth strategy. It has a highly attractive, recently repositioned, modern, purpose-built portfolio, on top of which it brings a strong pipeline. Furthermore, its strong development team will accelerate new opportunities in London, the South-East and Manchester. We expect the NOI yield at maturity to be in line with our guidance at c. 8%. We are excited about our ability to acquire, develop, and expand in the UK alongside our other European markets."

Acquisition highlights

• In line with our strategy to increase footprint in key target markets, Lok'nStore represents a unique opportunity to double Shurgard's UK footprint from 47 to 99 stores in key locations with attractive supply/ demand dynamics. The Acquisition adds depth and visibility to our UK pipeline with an additional 171,000 sqm MLA owned stores, representing a full two years of total Shurgard growth;
• Substantially refreshed, modern and purpose-built owned stores portfolio with:

1. 43% built since 2022 versus 13% for Shurgard in the UK, a portfolio with significant growth potential though ramp up;

1. Efficient portfolio with 76% purpose-built (including secured development pipeline) versus 63% for Shurgard leading to low maintenance cost and attractive real estate;

1. Majority of freehold ownership (79% versus 93%) in line with our strategy and opportunities for leasehold acquisitions;

1. A slightly higher average unit size of 6.9 sqm versus 5.9 sqm for Shurgard leading to potential optimization of the unit mix; and

• 1. An average MLA of 5,000 sqm per store versus 5,100 sqm per store for Shurgard, stores with optimal size from an operational efficiency point of view.
• 89% owned stores located in London, South-East and Greater Manchester regions with the highest income per inhabitant in UK, representing a highly concentrated and efficient portfolio in affluent regions. The competition intensity being similar than in London, with 45 inhabitants per units versus 43 for Shurgard;
• 18 stores under management contract generating £1.7m management fee p.a., 1/3 located outside the main areas of London, South East and Greater Manchester;

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• The transaction will generate a NOI yield of c.8% at maturity (5-6 years), calculated on total all in cost (€613 million inclusive of the secured development pipeline):

1. Shurgard has a proven track-record of successfully integrating and driving synergies and growth from acquisitions;

1. Significant opportunity to further accelerate growth by driving Lok'nStore's occupancy to 90% (from 67%) over next two years by utilizing our proprietary dynamic pricing model and online marketing proven track record. Pipeline stores are also expected to reach 90% within two years of opening in line with Shurgard group average;

1. Digitalization supporting dynamic pricing model, a key driver of rental growth with a rate CAGR of 2% to stabilization;

• 1. Expect at least €4-5 million of costs & tax synergies in first full year and further opportunities for efficiencies as Lok'nStore benefits from Shurgard's scale, e-rental solution and market-leading operational platform with a site-by-site optimization plan;
• Accretion on Shurgard adjusted EPRA earnings per share: mid-single digit dilutive in 2024, neutral in 2025 and accretive from 2026 onwards;
• We maintain a financial policy with a target to keep LTV at c. 25% and 4.0x to 5.0 Net debt/Underlying EBITDA, with a short-to-medium-term maximum of 35% LTV or above 5.0x Net debt/Underlying EBITDA. We aim to finance Lok'nStore and Shurgard's future development pipeline with a mix of debt and equity. We remain committed to a robust balance sheet and being within our financial policy in the medium-term.

The Acquisition remains subject to the sanction of the Scheme by the UK Court and the satisfaction (or, where applicable, the waiver) of the other conditions set out in the Scheme Document published by Lok'nStore on 17 May 2024.

A presentation of Shurgard's Lok'nStore Acquisition is available here: https://www.shurgard.com/corporate/investors/acquisitions/loknstore

About Shurgard

Shurgard is the largest provider of self storage in Europe. The company owns and/or operates 282 self-storage facilities and approximately 1.4 million net rentable square meters in seven countries: France, the Netherlands, the United Kingdom, Sweden, Germany, Belgium and Denmark.

Shurgard is a GRESB 5-star and Sector Leader, has an 'AA' ESG rating from MSCI, is rated Low risk by Sustainalytics and has a EPRA sBPR Gold medal. Shurgard is part of the BEL ESG index.

Shurgard's European network currently serves c. 190,000 customers and employs approximately 750 people. Shurgard is listed on Euronext Brussels under the symbol "SHUR".

For additional information: www.shurgard.com/corporate

For high resolution images:https://shurgard.prezly.com/media

Contact

Caroline Thirifay, Director of Investor Relations, Shurgard Self Storage Ltd

E-mail: [e-mail]

M: [phone]

Further information: This announcement is for information purposes only and is not intended to, and does not, constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the acquisition or otherwise, nor shall there be any sale, issuance or transfer of securities of Lok'nStore in any jurisdiction in contravention of applicable law. This announcement does not constitute a prospectus or a prospectus exempted document. Copies of this press release and any formal documentation relating to the Acquisition are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from any jurisdiction where local laws or

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regulations may result in a significant risk of civil, regulatory or criminal exposure if information concerning the Acquisition is sent or made available to Lok'nStore shareholders in that jurisdiction (a "Restricted Jurisdiction") or any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction and persons receiving such documents (including custodians, nominees and trustees) must not mail or otherwise forward, distribute or send them in or into or from any Restricted Jurisdiction. Doing so may render invalid any related purported vote in respect of acceptance of the Acquisition. The Acquisition relates to an offer for the shares of a UK company and is being made by means of a scheme of arrangement provided for under English company law. The Acquisition, implemented by way of a scheme of arrangement, is not subject to the tender offer rules or the proxy solicitation rules under the U.S. Securities Exchange Act 1934 (the "US Exchange Act"), as amended. Accordingly, the Acquisition is subject to the disclosure requirements and practices applicable to a scheme of arrangement involving a target company in the UK admitted to trading on AIM, which differ from the disclosure requirements of the U.S. tender offer and proxy solicitation rules. If, in the future, Shurgard exercises its right to implement the Acquisition by way of a takeover offer (as defined in Chapter 3 of Part 8 of the Companies Act 2006) and determines to extend the takeover offer into the U.S., the Acquisition will be made in compliance with applicable U.S. laws and regulations. In accordance with normal United Kingdom practice and pursuant to Rule 14e-5(b) of the US Exchange Act, Shurgard or its nominees, or its brokers (acting as agents), may from time to time make certain purchases of, or arrangements to purchase, shares or other securities of Lok'nStore outside of the U.S., other than pursuant to the Acquisition, until the date on which the Acquisition and/or a scheme of arrangement becomes effective, lapses or is otherwise withdrawn. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Any information about such purchases or arrangements to purchase shall be disclosed as required in the UK, shall be reported to a Regulatory Information Service and shall be available on the London Stock Exchange website at www.londonstockexchange.com. This announcement will be available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on the Company's website at https://www.shurgard.com/corporate/investors/acquisitions/loknstore promptly and in any event by no later than 12 noon on the business day following the date of this announcement. Neither the content of the website referred to in this announcement nor the content of any website accessible from hyperlinks in this announcement is incorporated into, or forms part of, this announcement.

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