TIDMBYG
RNS Number : 4112F
Big Yellow Group PLC
10 July 2023
10 July 2023
Big Yellow Group PLC ("Big Yellow" or "the Group")
Q1 Trading Statement
Big Yellow, the UK's brand leader in self storage, provides the
following update on trading for the first quarter ended 30 June
2023 .
Results
Quarter Quarter ended
Financial metrics ended 30 June Change
30 June 2022
2023
Total revenue for the quarter (1) GBP48.1 million GBP45.1 million 6.7%
Like-for-like store revenue for
the quarter (1,2) GBP47.0 million GBP44.6 million 5.4%
Store metrics
Store Maximum Lettable Area ("MLA") 6,416,000 6,152,000 4%
Closing occupancy (sq ft) 5,255,000 5,320,000 (1%)
Occupancy growth in the quarter
(sq ft) (3) 167,000 174,000 (4%)
Closing occupancy 81.9% 86.5% (4.6 ppts)
Big Yellow stores like-for-like
closing occupancy (4) 85.2% 86.7% (1.5 ppts)
Average achieved net rent per sq
ft GBP32.74 GBP29.99 9%
Closing net achieved rent per sq
ft GBP32.88 GBP30.33 8%
(1) The Group changed the way it sold contents protections to
its customers on 1 June 2022 to an Enhanced Liability Service
("ELS"), which is subject to VAT at 20% and not Insurance Premium
Tax ("IPT") at 12%, the latter being included in revenue. We
estimate the impact of this on the total revenue and like-for-like
revenue for the quarter is 0.7%. For the remainder of the year,
revenue from ELS will be on a comparable basis.
(2) Excluding Aberdeen (acquired June 2022), Harrow and Kingston
North (both opened September 2022) and Kings Cross (opened June
2023).
(3) In June 2022, the Group acquired a store in Aberdeen with
39,000 sq ft of occupancy. The total increase in the Group's
occupancy for the quarter to 30 June 2022 was 213,000 sq ft.
(4) As per (2), additionally excluding the Armadillo stores.
Occupancy across all 109 stores increased by 167,000 sq ft (2.6%
of the MLA at 30 June 2023) compared to a gain of 174,000 sq ft in
the same quarter last year (2.8% of the MLA at 30 June 2022).
Like-for-like closing occupancy for the Big Yellow stores has
increased to 85.2% from 83.1% at 31 March 2023. Closing occupancy,
which includes the impact of new store openings, was 81.9%.
The Armadillo stores, representing 10% of the Group's quarterly
revenue, added 42,000 sq ft of occupancy with closing occupancy of
80%, up from 77% at the end of March.
Closing net achieved rent per sq ft for all stores was GBP32.88,
an increase of 8% from the same time last year, with average rate
up 9% on the same quarter last year.
The Group's like-for-like store revenue increased by 5.4%
compared to the same quarter last year, 6.1% on a like-for-like ELS
basis(1) . The total revenue increase compared to the same quarter
last year of 6.7% includes the increasing impact of our recent Big
Yellow store openings.
Property
The Group opened its 103,000 sq ft landmark store in Kings Cross
on 5th June. Early trading has been strong, and we expect this
store to make a valuable contribution to the Group's performance in
the coming years.
The Group has acquired a 0.8 acre property for development on
Belgrave Gate, central Leicester for GBP1.85 million. We will be
seeking planning permission for a 58,000 sq ft self-storage centre
on the site. The site is currently generating an income of
approximately GBP110,000 per annum, across four short-term rolling
tenancies.
This acquisition takes the number of stores in the Group's
pipeline to 11, of which six have planning consent.
We will shortly be commencing construction on our new 63,000 sq
ft Slough Farnham Road store, which as previously announced, will
be replacing our existing similar capacity leasehold store.
Financing
During the period, the Group increased its revolving credit
facility by GBP30 million to GBP270 million, taking total committed
facilities to GBP548 million, with net debt at 30 June of GBP484
million. In addition, the Group has a $225 million unutilised
credit approved shelf facility with Pricoa Private Capital, which
can be drawn in fixed sterling notes with terms of between 7 and 15
years.
Jim Gibson, Chief Executive Officer, commented:
" We have had a solid start to the year with a return to
occupancy growth this quarter, broadly in line with last year. We
are continuing to manage yield, offsetting the adverse impact of
inflation on our cost base, with average rents growing by 9% over
the quarter. In addition, our prospect numbers are back at
pre-Covid levels, and encouragingly we are achieving higher
conversion rates to move-in, which is perhaps indicative of a
higher proportion of needs-driven serious enquiries.
We continue to have confidence in our business model and its
resilience in this higher interest rate environment. Our freehold
portfolio is 75% weighted to London and the South East, with the
balance in large regional conurbations, which provides a
predictable, resilient income stream across a wide customer base.
In addition to growing our earnings from the existing platform, we
will continue to invest in external growth through developing new
stores and selectively acquiring existing centres."
For further information, please contact:
Big Yellow Group PLC
Nicholas Vetch, Executive Chairman
Jim Gibson, Chief Executive
Officer
John Trotman, Chief Financial
Officer 01276 477 811
Teneo
Charlie Armitstead 07703 330 269
Notes to Editors
Big Yellow is the UK's brand leader in self storage. Big Yellow
now operates from a platform of 109 stores, including 24 stores
branded as Armadillo Self Storage. We have a pipeline of 0.9
million sq ft comprising 11 proposed Big Yellow self storage
facilities. The current maximum lettable area of the existing
platform (including Armadillo) is 6.4 million sq ft. When fully
built out the portfolio will provide approximately 7.3 million sq
ft of flexible storage space. 99% of our stores and sites by value
are held freehold and long leasehold, with the remaining 1% 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 stores,
with excellent customer service, a market-leading online platform,
and significant and increasing investment in sustainability, has
created in Big Yellow the most recognised brand name in the UK self
storage industry.
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END
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