Cue the Self Storage Industry and the demand needed! contents At last we are seeing positive signs of Spring and an end to the long Siberian Winter that has blighted much of Europe this year! Spring weather often brings with it an air of change, putting a smile back on people’s faces, creating the urge to “spring-clean” (e.g. tidying up the garden or giving the house a “once- over” and sorting out those things that take up space, but which people just can’t bear to throw out). Cue the self storage industry and the demand needed! FEDESSA News As well as sorting out house contents, many customers will need to put their winter tyres, winter clothing, ski equipment, snow clearance tools, etc., into • Focus on Rodney Walker, CBE . .4 storage to keep their house clutter free, or at least “freer” than it might otherwise • Public Storage FFO zooms . .5 have been. Added to on-going, long-term and temporary storage requirements, • Martyn Dickinson joins Gliderol . .15 this is all music to self storage operators’ ears. It is also a time to concentrate more on customer service, as more opportunities arise to meet and talk with Country Feature . .7 & 8 both existing and potential customers. Community events begin again, often providing an opportunity for operators to gain PR by becoming involved, or by • Profile on Germany promoting charitable causes. Company Features So, while it may have been a long time coming; it’s better late than never and our industry needs to make the best of all available opportunities. • ZeitLager opens in Landshut . .9 Sure, things are still more difficult than they were in the “good times” a few • Secur Self Storage . .10 years ago, and pressure on prices is still being felt in many countries. On the • Lagerbox Self Storage, Germany .12 other hand, definite signs of improvement are now visible in countries like Finland, which we will be featuring along with Russia in our 3/13 edition. • SAFEBOX Self Storage, Germany .13 Also, demand in Germany is now much higher than it has been in recent years • Pickens Selfstorage . .14 and this has allowed operators to increase rental prices. Credit is due to the • Shurgard Self Storage . .18 German operators and their Association, the Verband Deutscher Selfstorage Unternehmen e.V. (VDS), who have promoted the industry, making it more • MyPlace-Selfstorage expands . .19 visible, which has helped to boost demand. German Operators . .11 With this air of confidence, we felt it only right to promote the expanding European self storage industry, and where better to focus our attention in this edition than on Germany, the VDS and German self storage operators. In addition to the companies and their representatives, our thanks go to Front Cover Photograph Catherine Adler at the VDS for her assistance in helping to obtain contributions The front cover photograph shows the from the various German operators. inside of a ZeitLager Self Storage It would also be remiss of us not to mention Rodney Walker, who retired as CEO of the SSA UK at the end of April, after over nine years overseeing the UK facility in Landshut, Germany. Association and helping self storage throughout Europe to grow into a recognisable and professional industry. His achievements are too many to include in this leader; however, the SSA UK have included deservedly suitable references elsewhere in this magazine. To subscribe to the Focus and Self Storage Europe The good news for FEDESSA is that Rodney will not be putting his feet up; he magazine, please contact: still has far too much energy to let that happen. And, in any case, Sandy would Self Storage Association, Priestley House, The Gullet, Nantwich, Cheshire. CW5 5SZ not permit it! FEDESSA will, therefore, continue to benefit as Rodney devotes Tel: + 44 (0)1270 623 150 some of his time to continuing and even expanding his work with FEDESSA. Fax: + 44 (0)1270 623 471 e-mail: [email protected] Last, but not least, as a mark of respect, we have devoted our FEDESSA profile Editorial to Rodney; hopefully, helping to give you a better understanding of his many News items and articles on all aspects of the self storage industry are welcomed, and should be sent, together with involvements over the years and to what goes into making him the man that photographs if appropriate, to the editor, Stan McKerron: he is. e-mail: [email protected] The SSA UK and FEDESSA, or any of its agents/representatives/staff, cannot accept any legal Tony Richman liability for the accuracy of the news items and articles contained in the magazine, which have been obtained FEDESSA European Representative and are reproduced in good faith. Advertising Please contact Stan McKerron: 48 Talbot Way, Stapeley, Nantwich, CW5 7RQ. Tel: + 44 (0)1270 624 622 e-mail: [email protected] 3 FEDESSA NEWS Self Storage Europe Volume 2, 2013 FEDESSA NEWS Q. Details about your current employment/company? Q. What is the most physically demanding thing you I am a joint director of Stagpennant Ltd. and am have ever done? contracted as the Secretary General of FEDESSA. This is While this remains private to me, I reckon cross country a job I have done since 2004, having also been the SSA skiing in the army is high on the list. Tony Richman is FEDESSA’s UK’s CEO until recently. Questions answered by Rodney Walker (Secretary Q. What is the most daunting event you have faced? European Representative General of FEDESSA) Q. What have you enjoyed most and what do you feel you have achieved in your association(s)? Attending a Justin Timberlake concert in Birmingham with my middle daughter, Olivia. Tony Richman That is, of course, for you all to judge! However, I wouldn’t have stayed for over nine years if I hadn’t enjoyed most of Q. What is your worst memory? the Zacks Consensus Estimate by 8 cents. it. As to the future, having spent about 40% of my time Losing a close friend in Northern Ireland; but on a less During the reported quarter, Public Storage recorded a 5.8% outside the UK (including 20 years on the continent of personal note, the damage done to the oil fields in Kuwait increase in total revenues to $472.9 million from $445.6 million Europe) I hope to do lots of travelling there now. by the Iraqis (which I saw at first hand when they were still in the year-earlier quarter. Total revenues for the reported burning and spewing out oil). Q. Knowing what you know now, and if you could start quarter were well ahead of the Zacks Consensus Estimate of again, would you have done the same thing? $450 million. Possibly not. Same-store revenues increased 4.8% year over year to $412.6 Q. If not, what changes would you have made? million during the quarter, while Net Operating Income (NOI) climbed 7.9% to $294.1 million. The increase in same-store My first love was forestry, followed latterly by travel revenues was primarily due to a 4.5% rise in realised annual adventures and ornithology. I suspect none of these rent per occupied square foot to $13.79. Occupancy in the would have paid me enough. same-store portfolio was 92.5% at quarter-end versus 91.7% in Q. Family? the prior-year period. Three daughters, Sandy and her two daughters. Public Storage currently has a 49% stake in Shurgard Europe, which has interests in 189 facilities (10 million net rentable Q. Education? square feet) located in seven Western European countries. Mostly from life experiences, along with an honours Q. What is your happiest memory? Public Storage is also the managing member of the JV that owns degree in General Science from London University. Receiving my CBE from HM The Queen. Shurgard Europe. Q. What are your favourite types of books? Q. How do you see the Self Storage Industry in ten During the reported quarter, same-store revenue in Shurgard Adventure, military history and biographies. years time? Europe decreased 2.0% to $47.0 million due to the continued sovereign debt crisis and concerns over the Euro. Same-store Q. What is your favourite type of music? Once this recession is over there is no doubt that there NOI for Shurgard Europe increased 2.1% year over year to will be another spurt in growth throughout the UK and I am tone-deaf, but enjoy all types including folk music $27.7 million, driven by a 1.3% rise in realised annual rent per Europe. If the financial difficulties remain, the and the bagpipes! Q. Being honest, what are three things that you dislike occupied square foot to $25.65. entrepreneurial zest of the industry will see it widening its Q. What is the best film you ever watched? most? services. During the third quarter of 2012, the company acquired four Avatar in 3D! Aggressive people, high tax regimes (VAT!) and bad self storage properties for $56 million cash. Spanning 300,000 Q. What tips would you give for anyone contemplating drivers. net rentable square feet, two of the acquired properties are Q. On which non-self storage subject would you entry/investment into the industry? choose to answer questions on a quiz show? Q. And, maybe three things that you really admire? located in Hawaii, and one each in California and New Jersey. Give it a go, but make sure you have really done your Subsequent to the quarter-end, Public Storage acquired four World geography. Dedication, loyalty and honesty.