Last checked at 12 Jan 2023 07:00
12 January 2023
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 2022.
Financial metrics | Quarter ended 31 December 2022 | Quarter ended31 December 2021 |
Change |
Total revenue for the quarter | £48.1 million | £45.2 million | 6% |
Like-for-like store revenue for the quarter(1) | £41.5 million | £39.3 million | 6% |
Total revenue for the year to date | £142.0 million | £127.0 million | 12% |
Like-for-like store revenue for the year to date(1) | £122.8 million | £114.4 million | 7% |
Store metrics - all 108 stores | |||
Store Maximum Lettable Area ("MLA") | 6,295,000 | 6,062,000 | 4% |
Closing occupancy (sq ft) | 5,060,000 | 5,182,000 | (2%) |
Closing occupancy | 80.4% | 85.5% | (5.1 ppts) |
Closing occupancy - like-for-like stores(1) | 83.6% | 86.0% | (2.4 ppts) |
Average achieved net rent per sq ft for the quarter | £31.85 | £28.97 | 10% |
Closing net rent per sq ft | £32.31 | £29.41 | 10% |
Like-for-like average net achieved rent per sq ft for the quarter | £33.99 | £30.92 | 10% |
Like-for-like closing net rent per sq ft | £34.45 | £31.40 | 10% |
(1) The like-for-like metrics exclude stores opened and acquired in the current and preceding financial years, and the Armadillo stores
In our seasonally weaker third quarter, occupancy across all 108 stores decreased by 240,000 sq ft (3.8% of the MLA at 31 December 2022) compared to a loss of 245,000 sq ft in the same quarter last year (4.0% of the MLA at 31 December 2021).
We have seen a similar loss in occupancy to the prior year. Over the quarter the move-ins and move-outs were broadly in line with the same period last year.
Closing occupancy, reflecting the additional capacity from five recently opened stores, for all stores was 80.4%, a decrease of 5.1 ppts from 85.5% last year. Like-for-like closing occupancy was 83.6%, a decrease of 2.4 ppts from the same time last year.
Closing net achieved rent per sq ft for all stores was £32.31, an increase of 10% from the same time last year, with average rate up 10% on the same quarter last year, with like-for-like net rent growth showing similar increases.
The Group's like-for-like store revenue increased by 6% in the quarter. Like-for-like store revenue growth for the year to date is 7%.
Acquisition of freehold site
During the period, the Group acquired a 2.1 acre freehold site in Staples Corner, London for £13.25 million. The site is located close to our existing leasehold 112,000 sq ft store at Staples Corner and is currently let on a short-term basis to Renault. Our intention is to seek planning consent for a 130,000 sq ft store on the new site. Following construction of the new store, we will transfer the customers from the existing store to the new location, and then seek to assign the existing lease. This acquisition is consistent with our strategy of looking to acquire freehold interests to reduce our short leasehold rental liabilities and improve the quality of our portfolio.
Jim Gibson, Chief Executive Officer, commented:
"We are pleased to have continued to deliver solid revenue growth in a challenging macro-environment. The quarterly seasonal loss of occupancy was in-line with last year, and overall prior year comparators year to date have been strong. The fourth quarter last year was impacted by the Russian invasion of Ukraine in February leading to weaker occupancy growth than we would have expected. Although it is early in the current fourth quarter, we are seeing a return to growth in net reservations and occupancy. We now move into our seasonally stronger spring and summer trading period.
We remain confident in the resilience of our model and have continued to invest in our business with the acquisition of the freehold site at Staples Corner."
For further information, please contact:
Big Yellow Group PLC | 01276 477 811 |
Nicholas Vetch, Executive Chairman | |
Jim Gibson, Chief Executive Officer | |
John Trotman, Chief Financial Officer | |
Teneo | 020 7260 2700 |
Ben Foster | |
Oliver Bell |
Notes to Editors
Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 108 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 6.3 million sq ft. When fully built out the portfolio will provide approximately 7.2 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.