Last checked at 10 Jan 2017 07:00
10 January 2017
Big Yellow Group PLC
("Big Yellow" or "the Group")
Interim Management 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 2016.
Results
| 31 December 2016 | 31 December 2015 | % |
Store maximum lettable area ("MLA") | 4,551,000 | 4,404,000 | +3 |
Closing Occupancy (sq ft) | 3,436,000 | 3,240,000 | +6 |
Closing Occupancy (% of MLA) | 75.5% | 73.6% | +1.9 ppts |
Like-for-like Closing Occupancy(1) | 76.0% | 73.6% | +2.4 ppts |
Revenue for the quarter | £27.4m | £25.7m | +7 |
Like-for-like revenue for the quarter(1) | £26.9m | £25.7m | +5 |
Year to date revenue | £82.2m | £75.9m | +8 |
Like-for-like revenue year to date | £80.7m | £75.9m | +6 |
Average quarterly like-for-like net achieved rent per sq ft(1) |
£26.33 |
£25.73 | +2 |
(1) Excluding Cambridge which opened in January 2016 and Nine Elms and Twickenham 2 (acquired from Lock and Leave on 28 April 2016).
In our seasonally weaker third quarter, the 73 stores decreased in occupancy by 137,000 sq ft (3.0% of the MLA at 31 December 2016) compared to a loss of 138,000 sq ft in the same quarter last year (3.1% of the MLA at 31 December 2015).
The Group's like-for-like revenue increased by 5% compared to the same quarter last year, and is up 6% for the year to date.
The revenue from the Armadillo portfolio for the quarter to 31 December 2016 increased by 17% to £2.6 million compared to the same quarter last year. Like-for-like revenue, excluding West Molesey and Canterbury (acquired from Lock and Leave in April 2016), increased by 4% compared to the same quarter last year.
Development
We commenced construction at Guildford Central in December, with a view to the 55,000 sq ft MLA store opening in early 2018.
In December we obtained planning consent for a 25,000 sq ft extension to our existing Wandsworth store, and we anticipate that the extension works will be completed in Spring 2018.
We are continuing to progress planning on our other development sites and will provide a further update in May with our final results.
James Gibson, Chief Executive Officer, commented:
"After a weaker October, occupancy performance improved in November and December, delivering a similar performance to last year with a loss of 137,000 sq ft (3.0% of MLA) compared to a loss of 138,000 sq ft (3.1% of MLA) in the prior year. Average year on year rate growth slowed to 2.3% in the quarter compared to 2.8% for the first half of the year.
Like-for-like revenue growth for the quarter to December was 5%, impacted by the loss of occupancy in the quarter being more front-ended. Our earnings guidance for the full year remains in line with current consensus.
As we referred to in our half year results significant uncertainties remain around the UK's economic outlook. That said, we believe new supply in our key areas of operation, particularly London, will remain constrained over the medium to longer term and that the business is well placed to face down most challenges.
We look forward to delivering occupancy and revenue growth over this quarter and to continuing this growth into our seasonally stronger spring and summer trading period."
For further information, please contact:
Big Yellow Group PLC 01276 477 811
Nicholas Vetch, Executive Chairman
James Gibson, Chief Executive Officer
John Trotman, Chief Financial Officer
Teneo Blue Rubicon 020 3757 9234
Ben Foster
Chloe Maier
Notes to Editors
Big Yellow Group PLC is the UK's brand leader in self storage. Big Yellow now operates from a platform of 89 stores, including 16 stores branded as Armadillo Self Storage, in which the Group has a 20% interest. We own a further seven Big Yellow self storage development sites (including two extension sites), of which two have planning consent. The current maximum lettable area of this platform is 5.3 million sq ft. When fully built out the portfolio will provide approximately 5.7 million sq ft of flexible storage space. Of the Big Yellow stores and sites, 96% by value are held freehold and long leasehold; with the remaining 4% 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, coupled with our excellent customer service and our market leading online platform, has created the most recognised brand name in the UK self storage industry.