REG - Big Yellow Group PLC - Trading Statement

Big YellowAnnouncement

12/01/2023 07:00

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RNS Number : 4572M  Big Yellow Group PLC  12 January 2023

12 January 2023

 

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 third quarter ended
31 December 2022.

 

 Financial metrics                                                  Quarter ended      Quarter ended

31 December 2022
31 December 2021

                                                                                                          Change
 Total revenue for the quarter                                      £48.1 million      £45.2 million      6%
 Like-for-like store revenue for the quarter((1))                   £41.5 million      £39.3 million      6%
 Total revenue for the year to date                                 £142.0 million     £127.0 million     12%
 Like-for-like store revenue for the year to date((1))              £122.8 million     £114.4 million     7%
 Store metrics - all 108 stores
 Store Maximum Lettable Area ("MLA")                                6,295,000          6,062,000          4%
 Closing occupancy (sq ft)                                          5,060,000          5,182,000          (2%)
 Closing occupancy                                                  80.4%              85.5%              (5.1 ppts)
 Closing occupancy - like-for-like stores((1))                      83.6%              86.0%              (2.4 ppts)
 Average achieved net rent per sq ft for the quarter                £31.85             £28.97             10%
 Closing net rent per sq ft                                         £32.31             £29.41             10%
 Like-for-like average net achieved rent per sq ft for the quarter  £33.99             £30.92             10%
 Like-for-like closing net rent per sq ft                           £34.45             £31.40             10%

(1)  The like-for-like metrics exclude stores opened and acquired in the
current and preceding financial years, and the Armadillo stores

In our seasonally weaker third quarter, occupancy across all 108 stores
decreased by 240,000 sq ft (3.8% of the MLA at 31 December 2022) compared to a
loss of 245,000 sq ft in the same quarter last year (4.0% of the MLA at 31
December 2021).

 

We have seen a similar loss in occupancy to the prior year.  Over the
quarter the move-ins and move-outs were broadly in line with the same period
last year.

 

Closing occupancy, reflecting the additional capacity from five recently
opened stores, for all stores was 80.4%, a decrease of 5.1 ppts from 85.5%
last year.  Like-for-like closing occupancy was 83.6%, a decrease of 2.4
ppts from the same time last year.

 

Closing net achieved rent per sq ft for all stores was £32.31, an increase of
10% from the same time last year, with average rate up 10% on the same quarter
last year, with like-for-like net rent growth showing similar increases.

 

The Group's like-for-like store revenue increased by 6% in the
quarter.  Like-for-like store revenue growth for the year to date is 7%.

 

Acquisition of freehold site

 

During the period, the Group acquired a 2.1 acre freehold site in Staples
Corner, London for £13.25 million.  The site is located close to our
existing leasehold 112,000 sq ft store at Staples Corner and is currently let
on a short-term basis to Renault.  Our intention is to seek planning consent
for a 130,000 sq ft store on the new site.  Following construction of the
new store, we will transfer the customers from the existing store to the new
location, and then seek to assign the existing lease.  This acquisition is
consistent with our strategy of looking to acquire freehold interests to
reduce our short leasehold rental liabilities and improve the quality of our
portfolio.

 

Jim Gibson, Chief Executive Officer, commented:

 

"We are pleased to have continued to deliver solid revenue growth in a
challenging macro-environment.  The quarterly seasonal loss of occupancy was
in-line with last year, and overall prior year comparators year to date have
been strong.  The fourth quarter last year was impacted by the Russian
invasion of Ukraine in February leading to weaker occupancy growth than we
would have expected.  Although it is early in the current fourth quarter, we
are seeing a return to growth in net reservations and occupancy.  We now
move into our seasonally stronger spring and summer trading period.

 

We remain confident in the resilience of our model and have continued to
invest in our business with the acquisition of the freehold site at Staples
Corner."

 

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                                  020 7260 2700
 Ben Foster
 Oliver Bell

 

Notes to Editors

Big Yellow is the UK's brand leader in self storage.  Big Yellow now operates
from a platform of 108 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 6.3 million sq ft.  When fully
built out the portfolio will provide approximately 7.2 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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