Cityvarasto

For those not yet familiar with Cityvarasto, could you briefly describe the company, your business model, and how you position yourselves within your market?

Cityvarasto is Finland’s leading self-storage company and one of Europe’s largest operators by number of locations. We currently have 83 locations, including facilities under development, with 74 operating self-storage facilities across 30 Finnish cities, and more than 60% of Finns live within a 15-minute drive of one of our facilities. Our core business is renting self-storage units through a highly digital operating platform, complemented by lettable light industrial space, van rental with more than 500 automated vans, and moving services. These ancillary businesses generate revenue and cost synergies while supporting customer acquisition and visibility for the self-storage business. A key differentiator is our conversion-based growth model: we acquire existing properties, begin operations while retaining suitable light industrial tenants, and convert the space into self-storage in phases as demand develops. This approach deploys capital efficiently, extends the useful life of existing buildings and creates a significantly lower carbon footprint, about 30 % compared to a new-build model. After H1 2026, our LTM revenue was more than EUR 29 million, adjusted EBITDA was around EUR 12 million, the property portfolio exceeded EUR 210 million and LTV was 20%.

Occupancy reached 83% in Q2 2026. Can you walk us through the ramp-up of a new site, and how long does it take to reach mature occupancy?

A successful ramp-up starts with selecting the right location: we focus on areas with strong demand drivers, good accessibility and limited local supply. Once a facility opens, our national brand, digital sales platform and marketing capabilities help us attract customers from day one. Facility sizes vary considerably, so ramp-up periods also differ, but approximately two years is a typical period for a facility to reach mature occupancy. Occupancy generally rises steadily as a facility becomes established in its local market. Our experience also shows that customer loyalty improves as a facility matures: lease periods become longer, and the average rental period today exceeds two years. We consider the Q2 2026 occupancy of 83% a strong level, while the number of facilities still in ramp-up leaves room for further occupancy improvement and pricing optimisation.

How does your dynamic pricing work in practice and how do you balance rent levels against occupancy?

Our pricing is data-driven and takes into account occupancy, demand, the availability of different unit sizes and local market conditions. The objective is not to maximise occupancy, but to optimise revenue. It is a multiple of occupancy rate and the unit price.  In the industry, an occupancy rate of 87.5 % is typically considered optimal, because at 100 % occupancy you are renting at too low price and could increase it. At mature facilities, dynamic pricing and rent adjustments for existing customers provide an additional avenue for revenue growth. Scale also supports profitability because revenue can grow faster than costs as the network expands and the cost per unit declines. At the end of June 2026, the average self-storage contract rent was approximately EUR 25.5 per sqm per month.

You’re targeting around 100 locations by 2029. How do you choose new locations, and how do you avoid cannibalising your existing facilities?

Our growth strategy combines acquisitions, conversion of existing properties and expansion of current facilities. Location selection is based on detailed analysis of population density, traffic flows, accessibility, visibility, competition and local supply. We also draw on more than two decades of local market experience and conduct due diligence before acquiring or leasing a facility. Approximately 90% of our facilities are owned and 10% are leased, reflecting our preference for ownership in a long-term real estate business. In many cases, a broader local network strengthens rather than weakens our position by improving accessibility, brand visibility and our ability to allocate demand across nearby facilities. When we open a facility next to an existing one, it is typically because the first one is full and local demand supports additional capacity. The new facility may have a minor temporary effect on the older site during ramp-up, but we have not seen continuing cannibalisation once the new facility reaches maturity.

More than 60% of Finns live within 15 minutes of one of your facilities. Does that make each new site stronger, and what advantages does it give you over smaller operators?

Yes. Self-storage is a local business, but scale creates significant advantages. Each new location benefits from our existing brand awareness, digital infrastructure, web shop, customer service capabilities and marketing reach, while also making the network more convenient and visible to customers. Our scale gives us the resources to develop our systems, pricing and marketing capabilities and helps build customer trust. It also improves data quality, customer acquisition efficiency and operational leverage as the market matures. Cityvarasto’s aided brand awareness was 57% in the latest industry survey, supporting our position as Finland’s best-known self-storage operator. We have bought about 20 self-storage companies in Finland and our experience also indicates that, after integration, Cityvarasto facilities can achieve higher occupancy and pricing than the acquired businesses had previously.

The other Nordic countries have around 1.4 times as much self-storage space per person as Finland. How do you see that gap evolving and what will drive it?

We think we are catching up. We see the gap as a long-term growth opportunity and expect Finland to move gradually toward the penetration levels seen elsewhere in the Nordic region. Demand is supported by structural trends including urbanisation, smaller apartments, household formation, increasing wealth, remote work, second-hand commerce and changing life situations. These trends increase the need for flexible additional space close to where people live and work. Consumer research commissioned by Cityvarasto also indicates that the need for additional space is becoming a growing everyday challenge, people have more and more stuff. We therefore believe the Finnish self-storage market still has substantial room to grow over the long term. It’s also great to see that Finnish GDP is finally growing, companies are growing and customers are starting to spend money.

Looking ahead, where do you see Cityvarasto one year from now? 

We expect to continue executing the strategy that has driven Cityvarasto’s growth for more than 25 years. This means converting existing properties into self-storage space, acquiring and integrating self-storage businesses and properties, and expanding the network in selected growth markets. We will also continue improving occupancy, optimising pricing and operations, enhancing our digital platform and developing our van rental and moving services. Within our existing property portfolio alone, we have identified more than 20,000 square metres of potential additional self-storage area, providing a substantial internal growth opportunity alongside future acquisitions.

Could you give three reasons why Cityvarasto is an interesting investment?

First, Cityvarasto is the market leader in a growing industry: we are Finland’s largest and best-known self-storage operator in a market that remains less penetrated than comparable Nordic markets and is supported by long-term structural trends. Cityvarasto is also the only listed self-storage company in the Nordic countries.

Second, we have a proven and scalable business model, with more than 25 years of operating history, a capital-efficient conversion model and a 20 % compound annual revenue growth rate over the last ten years. Our acquisition experience and growing network further support economies of scale and lower costs per unit.

Third, we have multiple growth drivers: conversion of existing space, new property investments, occupancy improvement and pricing optimisation, business acquisitions, digital development and ancillary services.