DB cuts European self-storage operators on pricing, cost pressures

Shurgard Self Storage

19/08/2026 08:42

** Deutsche Bank downgrades European self-storage operators Safestore SAFE.L and Shurgard SHUR.BR to "hold" from "buy" due to aggressive pricing competition
** The broker says earnings are closely tied to housing transactions and swap rates, which are fixed interest rate contracts, both of which are currently acting as major headwinds
** DB says cost inflation was heavily impacted by higher property taxes, noting that trading in the European self-storage sector has disappointed since March
** Shurgard's stock has fallen about 16% since March, while Safestore's has been down about 25%
** It adds the firm states yields offer "significant long-term upside potential" but warns that self-storage share prices are primarily driven by earnings growth
** DB says that with further downgrades likely it fails to see a catalyst over the next 12 months, although it believes these cuts are already priced in

(Reporting by Hugo Lhomedet)
((hugo.lhomedet@thomsonreuters.com))