Last checked at 13 Jan 2011 07:00
13 January 2011
Big Yellow Group PLC
("Big Yellow" or "the Company")
Interim Management Statement
The Board of Big Yellow Group PLC, the UK's leading self storage brand, is pleased to provide the following update on trading for the third quarter ending 31 December 2010.
Quarterly highlights
51 Wholly Owned Stores
·; Annualised store revenue (annualised storage, packing material and insurance revenues at the end of the period) of £58.9 million at 31 December 2010, an increase of 7% from £55.1 million at 31 December 2009
·; Total store revenue for the 51 wholly owned stores was £15.0 million for the quarter
- Up 7% from £14.0 million for the 51 stores in the same quarter last year
- Down 3% from £15.5 million for the quarter to 30 September 2010
- This excludes management fees and non-storage rental income earned of £0.6 million (same quarter last year: £0.6 million, quarter to 30 September 2010: £0.6 million)
·; Closing occupancy was 1,874,000 sq ft across all 51 wholly owned stores at 31 December, representing 58% of their 3,229,000 sq ft total capacity
- Up from 1,737,000 sq ft at the same time last year (54% of total capacity)
- Down from 1,949,000 sq ft occupied at 30 September 2010 (60% of total capacity)
- Over the calendar year 2010 occupancy across the 51 wholly owned stores grew by 137,000 sq ft (4.2% of capacity). This compares to a loss of 9,000 sq ft in 2009 and a loss of 54,000 sq ft in 2008.
·; The 32 established stores that were mature prior to the downturn have reduced in occupancy to 1,371,000 sq ft (71% occupancy)
- Up 53,000 sq ft from 1,318,000 sq ft (68% occupancy) at 31 December 2009
- Down 56,000 sq ft from 1,427,000 sq ft (74% occupancy) at 30 September 2010
·; The 19 lease-up stores have occupancy of 503,000 sq ft (39% occupancy)
- Up 84,000 sq ft from 419,000 sq ft (33% occupancy) at 31 December 2009
- Down 19,000 sq ft from 522,000 sq ft (41% occupancy) at 30 September 2010
·; The 51 wholly owned stores achieved an average net rent per sq ft over the quarter of £26.71
- Marginally down from £26.79 for the same quarter last year
- Marginally up from £26.70 for the quarter to 30 September 2010
- Net rent at 31 December 2010 of £26.90 per sq ft
Ten Big Yellow Limited Partnership ("Partnership") Stores
·; Annualised store revenue of £4.4 million at 31 December 2010, an increase of 83% from £2.4 million at 31 December 2009
·; Total store revenue for the 10 stores was £1.1 million for the quarter
- Up 120% from £0.5 million for the same quarter last year
- Unchanged from £1.1 million for the quarter to 30 September 2010
·; Occupancy is 180,000 sq ft across the ten Partnership stores, representing 29% of their 616,000 sq ft total capacity at 31 December
- Up 83,000 sq ft from 97,000 sq ft at the same time last year
- Up 5,000 sq ft from 175,000 sq ft occupied at 30 September 2010
- Over the calendar year 2010 occupancy across the ten stores grew by 83,000 sq ft. This compares to a gain of 56,000 sq ft in 2009 and 9,000 sq ft in 2008
·; The stores achieved an average net rent per sq ft over the quarter of £18.93
- Up 6% from £17.85 for the same quarter last year
- Down 2% from £19.29 for the quarter to 30 September 2010
- Net rent at 31 December 2010 of £19.50 per sq ft
Store update
The total number of Big Yellow stores now open is 61, of which ten are within the Partnership. Eltham will open in March of this year, with construction committed at New Cross and Chiswick within the wholly owned Group. The remaining two Partnership stores will open in 2011, Camberley later this month and Stockport in September.
James Gibson, Chief Executive Officer, commented:
"The December quarter is our seasonally weakest trading quarter and we have seen the anticipated fall in occupancy across our wholly owned stores of approximately 2% of capacity. The portfolio of ten stores in the Partnership, which are in an earlier stage of lease up, moved forward slightly in occupancy over the quarter. Move-ins during the quarter in the wholly owned store portfolio were up 10% compared to the same quarter last year. Against a backdrop of mortgage approvals significantly below their ten year average, and a slowly improving economy, we are encouraged by the increase in occupancy of the wholly owned portfolio from 54% to 58% of capacity over the calendar year.
January has started positively with reservations growing in line with last year, and we look forward to growing occupancy, revenue and cash flow over 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
Weber Shandwick Financial 020 7067 0700
Nick Oborne/ John Moriarty
Notes to Editors
Big Yellow Group PLC is the best known and one of the most dynamic self storage groups in the UK. It was founded in September 1998 by Nicholas Vetch, Philip Burks, and James Gibson and listed on AIM in May 2000, moving to the Official List of the London Stock Exchange in June 2002.
Big Yellow has expanded rapidly and now operates from 61 stores, 54 in London and the South, two in Sheffield, and one each in Birmingham, Edinburgh, Leeds, Liverpool, and Nottingham. There are a further nine stores in development. Of the 70 total stores and sites, 59 are held freehold and four long leasehold (together representing approximately 94% by value of the total property assets); seven stores are held short leasehold. All the stores have distinct yellow branding, with the majority being within the M25 or in strong urban conurbations. When fully built out the portfolio will provide approximately 4.4 million sq ft of flexible storage space.
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. Its focus on the location and visibility of its buildings, coupled with excellent customer service, has created the most recognised brand name in the UK self storage industry.