Last checked at 10 Jul 2023 07:00
10 July 2023
Big Yellow Group PLC ("Big Yellow" or "the Group")
Q1 Trading Statement
Big Yellow, the UK's brand leader in self storage, provides the following update on trading for the first quarter ended 30 June 2023.
Results
Financial metrics | Quarter ended 30 June 2023 | Quarter ended30 June 2022 |
Change |
Total revenue for the quarter (1) | £48.1 million | £45.1 million | 6.7% |
Like-for-like store revenue for the quarter (1,2) | £47.0 million | £44.6 million | 5.4% |
Store metrics | |||
Store Maximum Lettable Area ("MLA") | 6,416,000 | 6,152,000 | 4% |
Closing occupancy (sq ft) | 5,255,000 | 5,320,000 | (1%) |
Occupancy growth in the quarter (sq ft) (3) | 167,000 | 174,000 | (4%) |
Closing occupancy | 81.9% | 86.5% | (4.6 ppts) |
Big Yellow stores like-for-like closing occupancy (4) | 85.2% | 86.7% | (1.5 ppts) |
Average achieved net rent per sq ft | £32.74 | £29.99 | 9% |
Closing net achieved rent per sq ft | £32.88 | £30.33 | 8% |
(1) The Group changed the way it sold contents protections to its customers on 1 June 2022 to an Enhanced Liability Service ("ELS"), which is subject to VAT at 20% and not Insurance Premium Tax ("IPT") at 12%, the latter being included in revenue. We estimate the impact of this on the total revenue and like-for-like revenue for the quarter is 0.7%. For the remainder of the year, revenue from ELS will be on a comparable basis.
(2) Excluding Aberdeen (acquired June 2022), Harrow and Kingston North (both opened September 2022) and Kings Cross (opened June 2023).
(3) In June 2022, the Group acquired a store in Aberdeen with 39,000 sq ft of occupancy. The total increase in the Group's occupancy for the quarter to 30 June 2022 was 213,000 sq ft.
(4) As per (2), additionally excluding the Armadillo stores.
Occupancy across all 109 stores increased by 167,000 sq ft (2.6% of the MLA at 30 June 2023) compared to a gain of 174,000 sq ft in the same quarter last year (2.8% of the MLA at 30 June 2022).
Like-for-like closing occupancy for the Big Yellow stores has increased to 85.2% from 83.1% at 31 March 2023. Closing occupancy, which includes the impact of new store openings, was 81.9%.
The Armadillo stores, representing 10% of the Group's quarterly revenue, added 42,000 sq ft of occupancy with closing occupancy of 80%, up from 77% at the end of March.
Closing net achieved rent per sq ft for all stores was £32.88, an increase of 8% from the same time last year, with average rate up 9% on the same quarter last year.
The Group's like-for-like store revenue increased by 5.4% compared to the same quarter last year, 6.1% on a like-for-like ELS basis(1). The total revenue increase compared to the same quarter last year of 6.7% includes the increasing impact of our recent Big Yellow store openings.
Property
The Group opened its 103,000 sq ft landmark store in Kings Cross on 5th June. Early trading has been strong, and we expect this store to make a valuable contribution to the Group's performance in the coming years.
The Group has acquired a 0.8 acre property for development on Belgrave Gate, central Leicester for £1.85 million. We will be seeking planning permission for a 58,000 sq ft self-storage centre on the site. The site is currently generating an income of approximately £110,000 per annum, across four short-term rolling tenancies.
This acquisition takes the number of stores in the Group's pipeline to 11, of which six have planning consent.
We will shortly be commencing construction on our new 63,000 sq ft Slough Farnham Road store, which as previously announced, will be replacing our existing similar capacity leasehold store.
Financing
During the period, the Group increased its revolving credit facility by £30 million to £270 million, taking total committed facilities to £548 million, with net debt at 30 June of £484 million. In addition, the Group has a $225 million unutilised credit approved shelf facility with Pricoa Private Capital, which can be drawn in fixed sterling notes with terms of between 7 and 15 years.
Jim Gibson, Chief Executive Officer, commented:
"We have had a solid start to the year with a return to occupancy growth this quarter, broadly in line with last year. We are continuing to manage yield, offsetting the adverse impact of inflation on our cost base, with average rents growing by 9% over the quarter. In addition, our prospect numbers are back at pre-Covid levels, and encouragingly we are achieving higher conversion rates to move-in, which is perhaps indicative of a higher proportion of needs-driven serious enquiries.
We continue to have confidence in our business model and its resilience in this higher interest rate environment. Our freehold portfolio is 75% weighted to London and the South East, with the balance in large regional conurbations, which provides a predictable, resilient income stream across a wide customer base. In addition to growing our earnings from the existing platform, we will continue to invest in external growth through developing new stores and selectively acquiring existing centres."
For further information, please contact:
Big Yellow Group PLC Nicholas Vetch, Executive Chairman Jim Gibson, Chief Executive Officer John Trotman, Chief Financial Officer
| 01276 477 811 |
Teneo Charlie Armitstead | 07703 330 269 |
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 11 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.