REG - Big Yellow Group PLC - Q1 Trading Statement

Big YellowAnnouncement

18/07/2024 07:00

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RNS Number : 8405W  Big Yellow Group PLC  18 July 2024

18 July 2024

 

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 2024.

Results

                                                    Quarter ended    Quarter ended

30 June 2024
30 June 2023

 Financial metrics                                                                   Change
 Total revenue for the quarter                      £50.2 million    £48.1 million   4%
 Like-for-like store revenue for the quarter ((1))  £49.1 million    £47.6 million   3%
 Store metrics
 Store Maximum Lettable Area ("MLA")                6,419,000        6,416,000       -
 Closing occupancy (sq ft)                          5,249,000        5,255,000       -
 Occupancy growth in the quarter (sq ft)            220,000          167,000         32%
 Closing occupancy                                  81.8%            81.9%           (0.1 ppts)
 Like-for-like closing occupancy ((1))              82.4%            83.0%           (0.6 ppts)
 Average achieved net rent per sq ft                £34.13           £32.74          4%
 Closing net achieved rent per sq ft                £34.06           £32.88          4%

(1)   Excluding Kings Cross (opened June 2023).

Occupancy across all 109 stores increased by 220,000 sq ft (3.4% of the MLA at
30 June 2024) compared to a gain of 167,000 sq ft in the same quarter last
year (2.6% of the MLA at 30 June 2023).

Like-for-like closing occupancy for the portfolio has increased by 3.4 ppts to
82.4% from 79.0% at 31 March 2024 and is down 0.6 ppts from 30 June 2023.
 Closing occupancy was 81.8%, down 0.1 ppts from June 2023.

Closing net achieved rent per sq ft for all stores was £34.06, an increase of
4% from the same time last year, with average rate up 4% on the same quarter
last year.

The Group's revenue for the quarter was up 4%, with like-for-like store
revenue up 3% compared to the same quarter last year.

Property

Our new freehold store in Slough Farnham Road opens next week, and we will
shortly start the process of transferring customers from our nearby leasehold
store to the new location, ahead of surrendering the lease back to the
landlord.  We have commenced the construction programme of six other stores,
which are at various stages, and we will provide a more detailed update with
our interim results in November.

As previously reported, we were pleased to obtain planning consent at appeal
for a 68,400 sq ft store in Kentish Town, in the London Borough of Camden, a
densely populated area of inner London.  We now have planning on nine of our
14 pipeline stores.

 

Jim Gibson, Chief Executive Officer, commented:

"As stated in May, we saw an improvement in our demand in the fourth quarter
last year, which has continued into the current quarter, delivering a solid
occupancy performance, coupled with continued growth in average rent.   The
principal driver of demand has been from our domestic customers.

We are focussed on driving occupancy to higher, previously achieved levels and
maintaining sustainable rental growth reflective of a more modest inflationary
environment.

Following the receipt of planning on nine sites we are now embarking on an
intense period of construction activity, particularly concentrated in London,
which will be the driver of significant value over the next few years."

 

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

 

Sodali &
Co
020 7250 1446

Ben Foster

 

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 1.0 million sq ft comprising 14 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 7.4 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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