Last checked at 22 Jul 2016 07:00
22 July 2016
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 first quarter ended 30 June 2016.
Results
| Quarter ended 30 June 2016 | Quarter ended30 June 2015 | % |
Store maximum lettable area ("MLA") | 4,551,000 | 4,404,000 | +3 |
Closing Occupancy (sq ft) | 3,549,000 | 3,324,000 | +7 |
Closing Occupancy (% of MLA) | 78.0% | 75.5% | +2.5ppts |
Like-for-like Closing Occupancy(1) | 78.5% | 75.5% | +3.0ppts |
Revenue | £26.4m | £24.1m | +10 |
Like-for-like Revenue(1) | £26.0m | £24.1m | +8 |
Average like-for-like net achieved rent per sq ft(1) | £25.99 | £25.31 | +3 |
(1) Excluding Cambridge which opened in January 2016 and Nine Elms and Twickenham
2 (acquired from Lock and Leave on 28 April 2016).
The 73 stores increased occupancy over the quarter by 110,000 sq ft (2.4% of the MLA at 30 June 2016) compared to a gain of 146,000 sq ft in the same quarter last year (3.3% of the MLA at 30 June 2015). This increase excludes the 76,000 sq ft of occupancy acquired in the Nine Elms and Twickenham 2 stores.
The Group's like-for-like revenue increased by 8% compared to the same quarter last year.
The revenue from the Armadillo portfolio for the quarter to 30 June 2016 increased by 11% to £2.5 million compared to the same quarter last year. Like-for-like revenue, excluding West Molesey and Canterbury (acquired from Lock and Leave on 28 April 2016), increased by 6% compared to the same quarter last year.
Hedging
In July 2016, the Group entered into an interest rate derivative over £30 million of its debt at the rate of 0.4% plus underlying margin on the loan until October 2021. After the expiry in September 2016 of an outstanding hedge on £30 million of its debt, the Group's proforma average cost of debt will be 3.2%, compared to 3.5% at 30 June 2016. The marginal cost of debt drawn under the Group's revolving facility is currently 1.75%.
Development
We are continuing to progress planning on our development sites and will provide a further update in November with our interim results.
James Gibson, Chief Executive Officer, commented:
"We make no attempt to forecast the longer term impact of the Referendum result, however current performance in the Group's stores is satisfactory in the circumstances.
Big Yellow's financial strength, with interest cover of approximately 6.5 times should allow us to exploit any opportunities to acquire additional land or sites should they present themselves."
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 Strategy 020 3603 5220
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 extensions 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.