TIDMBYG
RNS Number : 0723N
Big Yellow Group PLC
15 January 2019
15 January 2019
Big Yellow Group PLC
("Big Yellow" or "the Group")
Third quarter trading update
The Board of Big Yellow Group PLC, the UK's brand leader in self
storage, is pleased to provide the following update on trading for
the third quarter ended 31 December 2018.
Results
31 December 31 December
2018 2017 Change
------------------------------------------ ------------ ------------ ---------
Store maximum lettable area ("MLA")
(1) 4,656,000 4,576,000 1.7%
Closing Occupancy (sq ft) 3,778,000 3,646,000 3.6%
Occupancy loss in the quarter (sq
ft) (126,000) (170,000) 26%
Closing Occupancy (% of MLA) 81.1% 79.7% 1.4 ppts
Like-for-like closing occupancy(2) 82.1% 79.7% 2.4 ppts
Revenue for the quarter GBP31.7m GBP29.6m 7.1%
Like-for-like revenue for the quarter(2) GBP31.5m GBP29.6m 6.4%
Year to date revenue GBP93.8m GBP87.7m 7.0%
Like-for-like revenue year to date(2) GBP93.4m GBP87.7m 6.5%
Average quarterly net achieved
rent per sq ft GBP27.24 GBP26.44 3.0%
Closing net achieved rent per sq
ft GBP27.64 GBP26.89 2.8%
------------------------------------------ ------------ ------------ ---------
(1) The prior period MLA has been restated for the 25,000 sq ft
extension to Wandsworth, which came on-line in May 2018. The
closing occupancy % has also been restated.
(2) Excluding Guildford Central (opened March 2018) and Wapping (opened July 2018).
Closing occupancy was 81.1%, an increase of 1.4 ppts from the
same time last year. Like-for-like closing occupancy increased by
2.4 ppts to 82.1%.
In our seasonally weaker third quarter, occupancy decreased by
126,000 sq ft (2.7% of the MLA at 31 December 2018) compared to a
loss of 170,000 sq ft in the same quarter last year (3.7% of the
MLA at 31 December 2017).
The average achieved net rent per sq ft for the quarter was up
3.0% compared to the same quarter last year. Closing net achieved
rent per sq ft was GBP27.64, an increase of 2.8% from the same time
last year and up 3.4% from 31 March 2018.
The Group's revenue increased by 7.1% compared to the same
quarter last year, and is up 7.0% for the year to date.
Like-for-like revenue increased by 6.4% compared to the same
quarter last year.
The revenue from the Armadillo portfolio for the quarter to 31
December 2018 increased by 17% to GBP3.8 million compared to the
same quarter last year. Like-for-like revenue, excluding the three
most recent store acquisitions, increased by 5% compared to the
same quarter last year.
Property
Construction is underway on our Manchester and Camberwell
stores, which we anticipate will open in Summer 2019 and Spring
2020 respectively.
We have recently been granted planning consent for a 57,000 sq
ft store in Bracknell. We anticipate the store will open in Summer
2020.
As reported previously, we have obtained planning consent for a
comprehensive redevelopment of our Battersea store. We have
commenced the process of transferring the customers to nearby
stores and we are aiming to commence construction next Summer, with
a view to re-opening the larger store in Summer 2020.
The Group completed the purchase of the Wyvern Industrial Estate
in New Malden, London for GBP28 million in early January 2019. Big
Yellow occupies approximately half of the estate, with an 81,000 sq
ft net lettable area store.
James Gibson, Chief Executive Officer, commented:
"We are pleased to be reporting a solid set of results, with
revenue growth of 7.1% compared to the same quarter last year, and
like-for-like revenue growth of 6.4%. As with the first half, this
growth is coming from both occupancy and rate, and we would expect
to see this continuing in 2019 as we return to occupancy growth in
our fourth quarter and seasonally stronger Spring and Summer
trading period. We remain focussed on our core objective of 90%
occupancy across the portfolio.
The development of new stores to provide external growth, is as
previously reported, a key objective of the business. To that end,
we are delighted to have been granted planning consents at
Battersea and Bracknell."
For further information, please contact:
Big Yellow Group PLC 01276 477 811
Nicholas Vetch, Executive Chairman
James Gibson, Chief Executive Officer
John Trotman, Chief Financial Officer
Teneo Blue Rubicon 020 7260 2700
Ben Foster
Matthew Denham
About us
Big Yellow is the UK's brand leader in self storage. Big Yellow
now operates from a platform of 97 stores, including 22 stores
branded as Armadillo Self Storage, in which the Group has a 20%
interest. We own a further eleven Big Yellow self storage
development sites (including two extension sites), of which two
have planning consent. The current maximum lettable area of the
existing platform (including Armadillo) is 5.6 million sq ft. When
fully built out the portfolio will provide approximately 6.3
million sq ft of flexible storage space. Of the Big Yellow stores
and sites, 97% by value are held freehold and long leasehold, with
the remaining 3% short leasehold.
The Group has pioneered the development of the latest generation
of self storage facilities, which utilise state of the art
technology and are located in high profile, accessible, main road
locations. Our focus on the location and visibility of our Big
Yellow stores, coupled with our excellent customer service and our
market leading online platform, has created the most recognised
brand name in the UK self storage industry.
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END
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