TIDMBYG
RNS Number : 0361G
Big Yellow Group PLC
22 July 2021
22 July 2021
Big Yellow Group PLC ("Big Yellow" or "the Group")
Trading Statement
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 first quarter ended 30 June 2021.
Results
Quarter ended Quarter ended
30 June 2021 30 June
2020 Change
------------------------------------ --------------- --------------- -----------
Store maximum lettable area
("MLA") 4,984,000 4,688,000 6.3%
Closing occupancy (sq ft) 4,490,000 3,919,000 14.6%
Occupancy growth in the quarter 151,000 sq
(sq ft) 289,000 138,000 ft
Closing occupancy (% of MLA) 90.1% 83.6% 6.5 ppts
Like-for-like closing occupancy(1) 92.9% 83.6% 9.3 ppts
Total revenue for the quarter GBP36.6m GBP31.8m 15.1%
Like-for-like store revenue(1) GBP35.4m GBP31.1m 13.8%
Average achieved net rent
per sq ft GBP29.04 GBP28.28 2.7%
Closing net achieved rent
per sq ft GBP28.91 GBP27.93 3.5%
(1) Excluding Camberwell (opened July 2020), Bracknell (opened
September 2020), Battersea (opened November 2020) and Uxbridge
(opened June 2021).
The 79 Big Yellow stores increased in occupancy over the quarter
by 289,000 sq ft (5.8 ppts of the MLA) resulting in a closing
occupancy of 90.1% (2020: 83.6%). Like-for-like closing occupancy
was 92.9%.
The table below shows the change in occupancy by customer type
over the quarter:
Customer type Net sq ft change Net sq ft change Change
in quarter ended in quarter ended
30 June 2021 30 June 2020
Domestic 169,000 sq ft 35,000 sq ft 134,000 sq
ft
------------------ ------------------ --------------
Business 62,000 sq ft 41,000 sq ft 21,000 sq ft
------------------ ------------------ --------------
Student 58,000 sq ft 62,000 sq ft (4,000 sq ft)
------------------ ------------------ --------------
Total 289,000 sq ft 138,000 sq ft 151,000 sq
ft
------------------ ------------------ --------------
The growth in occupancy this quarter was significantly ahead of
last year, which in itself was greater than the 125,000 sq ft
growth delivered in 2019, following a strong recovery once
restrictions began to ease in mid-May 2020.
We saw strong demand from domestic customers in the quarter, in
part due to the stamp duty holiday tapering off from 1 July. This
resulted in an acceleration of housing-related demand in June. We
also saw a higher than expected pick-up in student demand in June
with similar growth for the quarter to that seen last year but down
from the 73,000 sq ft in 2019. June is usually our strongest month
in the first quarter, and this year it had a record gain of 275,000
sq ft.
Some of this occupancy growth from both the housing and student
sectors is relatively short term, and we expect the current quarter
to be impacted by these customers moving out. In addition, there
will be customers who sold their properties several months ago, who
have now successfully acquired a new property prior to the 30 June
deadline and have moved out in early July. There has been an
increase in move-outs in July to date above normal levels, although
this is now normalising, with current notices to move out in line
with 2019, and reservations building again. The current
like-for-like occupancy of the Big Yellow portfolio is 91.0% and we
have returned to occupancy growth.
We continue to see demand from businesses with occupancy
increasing over the quarter and in July to date. As explained
previously, we expect our third quarter to revert to our normal
seasonal loss in occupancy before we return to growth in the fourth
quarter.
As the stores are now at higher levels of occupancy, we are
seeing improving growth in net rent per sq ft. The Group's average
achieved net rent per sq ft increased by 2.7% compared to the same
quarter last year, with closing net rent up 3.5% compared to 30
June 2020.
The Group's like-for-like store revenue increased by 13.8%
compared to the same quarter last year, mostly driven by occupancy
growth, but with a contribution from year-on-year growth in average
net rent and ancillary sales.
Armadillo
Our regional portfolio of 25 stores also delivered significant
outperformance in the quarter, with growth in occupancy of 66,000
sq ft (up 6.4 ppts from 31 March 2021).
The occupancy of the Armadillo portfolio at 30 June 2021 was
90.2% (30 June 2020: 78.2%). Revenue from the portfolio for the
quarter to 30 June 2021 increased by 21% to GBP5.0 million compared
to the same quarter last year. The portfolio saw a loss in
occupancy in the initial weeks of July, but has also now returned
to growth, with a growing book of reservations. The current
occupancy is 88.4%.
Development
The Group's new 54,000 sq ft store in Uxbridge, London opened on
28 June, and we will update on its early trading at the half year.
We are currently on site constructing our new stores in Hayes,
Hove, Harrow, Kings Cross and Kingston North.
In April, the Group acquired a prime 0.9 acre site on Regis Road
in Kentish Town, North London for GBP16.5 million. We will be
seeking planning permission for a 68,000 sq ft self storage centre
on the site. The site is centrally located site in Zone 2 and is a
high quality addition to the Group's development pipeline.
In June the Group acquired 66 Hammersmith Road, West Kensington,
in London for GBP26 million. This is a strategic acquisition
adjacent to the Olympia conference centre, a short distance from
one of the wealthiest and densest enclaves in London. Subject to
planning, the store is currently estimated to open in early 2025,
and will provide approximately 175,000 sq ft of space, including
7,000 sq ft of SME space. The total development cost, including
land acquisition, is estimated to be GBP73 million, with an
expected NOI at stabilisation of GBP5.8 million or 7.9% on cost.
West Kensington, when fully constructed and opened, will represent
our largest capital investment in an individual store to date.
Jim Gibson, Chief Executive Officer, commented:
"We are pleased to have delivered a strong trading performance
in the first quarter and we have now achieved our long-held goal of
like-for-like occupancy of 90%. However, we would caution that this
is during our normally strong summer trading period, short term
uncertainties remain, and we do expect a return to more normal
seasonal trading patterns over the remainder of the year.
We successfully raised GBP100 million from our shareholders by
way of a placing in June, which allowed us to continue to invest in
future growth through the recent strategic acquisitions. These,
along with our existing development pipeline, have the potential to
generate in excess of GBP40 million of net operating income over
the short to medium term, and in so doing create significant value
for our shareholders."
For further information, please contact:
Big Yellow Group PLC 01276 477 811
Nicholas Vetch, Executive Chairman
Jim Gibson, Chief Executive Officer
John Trotman, Chief Financial Officer
Teneo 0203 603 5221
Ben Foster
Matthew Denham
Notes to Editors
Big Yellow is the UK's brand leader in self storage. Big Yellow
now operates from a platform of 104 stores, including 25 stores
branded as Armadillo Self Storage. We own a further 14 Big Yellow
self storage development sites of which seven have planning
consent. The current maximum lettable area of the existing platform
(including Armadillo) is 6.1 million sq ft. When fully built out
the portfolio will provide approximately 7.2 million sq ft of
flexible storage space. 98% of our stores and sites by value are
held freehold and long leasehold, with the remaining 2% 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, with excellent customer service, a market-leading
online platform, and significant and increasing investment in
sustainability, has created the most recognised brand name in the
UK self storage industry.
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END
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