REG - Big Yellow Group PLC - Trading Statement

Big YellowAnnouncement

11/01/2024 07:00

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RNS Number : 3092Z  Big Yellow Group PLC  11 January 2024

11 January 2024

 

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 2023.

 Financial metrics                                         Quarter ended      Quarter ended

31 December 2023
31 December 2022

                                                                                                 Change
 Total revenue for the quarter                             £50.5 million      £48.1 million      5%
 Like-for-like store revenue for the quarter((1))          £48.8 million      £47.1 million      4%
 Total revenue for the year to date                        £150.1 million     £142.0 million     6%
 Like-for-like store revenue for the year to date((1))     £145.6 million     £139.6 million     4%
 Store metrics - all 109 stores
 Store Maximum Lettable Area ("MLA")                       6,419,000          6,295,000          2%
 Closing occupancy (sq ft)                                 4,979,000          5,060,000          (2%)
 Closing occupancy                                         77.6%              80.4%              (2.8 ppts)
 Closing occupancy - Big Yellow like-for-like stores((2))                                        (2.3 ppts)

                                                           80.4%              82.7%
 Average achieved net rent per sq ft for the quarter       £34.00             £31.85             7%
 Closing net rent per sq ft                                £34.65             £32.31             7%

(1)   Excluding Aberdeen (acquired June 2022), Harrow and Kingston North
(both opened September 2022) and Kings Cross (opened June 2023)

(2)   As per (1), additionally excluding the Armadillo stores

 

In our seasonally weaker third quarter, occupancy across all 109 stores
decreased by 249,000 sq ft (3.9% of the MLA at 31 December 2023) compared to a
similar loss of 240,000 sq ft in the same quarter last year (3.8% of the MLA
at 31 December 2022).

Closing occupancy, reflecting the additional capacity from five recently
opened stores, for all stores was 77.6%, a decrease of 2.8 ppts from 80.4%
last year.  Like-for-like closing occupancy for the Big Yellow stores was
80.4%, a decrease of 2.3 ppts from the same time last year.

Closing net achieved rent per sq ft for all stores was £34.65, an increase of
7% from the same time last year, with average rate up 7% on the same quarter
last year.

The Group's revenue increased by 5% in the quarter, with like-for-like store
revenue up 4%.  Revenue for the year to date is up 6%, with like-for-like
store revenue growth of 4%.

Refinancing of Revolving Credit Facility ("RCF")

As announced in December, the Group has put in place a new £300 million
ESG-linked facility for an initial term of three years, with the option to
extend the facility by two additional one-year terms through to December 2028,
subject to lender approval.  The facility has been provided by Lloyds Bank
plc, HSBC UK Bank plc, Bank of Ireland, and Barclays Bank plc, with Barclays
joining the existing three bank syndicate.  The margin of 1.25% over SONIA is
unchanged from the existing facility.  At 31 December 2023, our net debt was
£372 million, of which approximately 50% is fixed, with the balance variable.

 

Jim Gibson, Chief Executive Officer, commented:

"The occupancy performance in the third quarter has been similar to last year
and although it is too early in the quarter to judge whether it is
sustainable, we have seen a pick-up in our book of reservations.

We are gearing up to commence construction on all the sites on which we have
planning consent, and where vacant possession is available, which we expect
will add significantly to earnings over the next few years.  The refinancing
of the RCF, and with net debt to EBITDA of approximately three times, means we
can execute this expansion without taking undue risk."

 

For further information, please contact:

 

Big Yellow Group
PLC
                      01276 477 811

Nicholas Vetch CBE, Executive Chairman

Jim Gibson, Chief Executive Officer

John Trotman, Chief Financial Officer

 

Teneo
 
 

Charlie Armitstead
 
020 7260 2700

Oliver Bell

 

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 13 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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