TIDMBYG
RNS Number : 9544Z
Big Yellow Group PLC
16 January 2020
16 January 2020
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 2019.
Results
Quarter ended Quarter ended
31 December 31 December Change
2019 2018
------------------------------------ -------------- -------------- -----------
Store maximum lettable area
("MLA") 4,688,000 4,656,000 0.7%
Closing occupancy (sq ft) 3,745,000 3,778,000 (0.9%)
Occupancy loss in the quarter
(sq ft) (165,000) (126,000) (31%)
Closing occupancy (% of MLA) 79.9% 81.1% (1.2 ppts)
Like-for-like closing occupancy(1) 80.7% 81.1% (0.4 ppts)
Revenue for the quarter GBP32.3m GBP31.7m 1.9%
Like-for-like revenue for
the quarter(2) GBP32.0m GBP31.1m 2.9%
Year to date revenue GBP96.6m GBP93.8m 3.0%
Like-for-like revenue year
to date(2) GBP95.8m GBP92.3m 3.8%
Average achieved net rent
per sq ft GBP28.03 GBP27.24 2.9%
Closing net achieved rent
per sq ft GBP28.42 GBP27.64 2.8%
(1) Excluding Manchester (opened May 2019) and Battersea (closed
for redevelopment in March 2019).
(2) Excluding Wapping (opened July 2018), Manchester and Battersea.
In our seasonally weaker third quarter, occupancy decreased by
165,000 sq ft (3.5% of the MLA at 31 December 2019) compared to a
loss of 126,000 sq ft in the same quarter last year (2.7% of the
MLA at 31 December 2018) and a loss of 170,000 sq ft in 2017 (3.7%
of the MLA at 31 December 2017).
Like-for-like closing occupancy was 80.7%, a decrease of 0.4
ppts from the same time last year. Closing occupancy was 79.9%,
after the opening of Manchester in May 2019 and the closure of
Battersea in March 2019.
The Group's average achieved net rent per sq ft increased by
2.9% compared to the same quarter last year. Closing net achieved
rent per sq ft was GBP28.42, an increase of 2.8% from the same time
last year, and up 4.2% from 31 March 2019.
The Group's like-for-like revenue increased by 2.9% in the
quarter and is up 3.8% year to date.
Armadillo
Revenue from the 25 store Armadillo portfolio for the quarter to
31 December 2019 increased by 11.6% to GBP4.3 million compared to
the same quarter last year. Like-for-like revenue, excluding
Grimsby, Daventry and Liverpool Aintree (acquired in April, May and
July 2019 respectively) increased by 4.0% compared to the same
quarter last year.
Development
The construction of our stores in Camberwell (London),
Bracknell, and Battersea (London) are on schedule and we anticipate
that the stores will open in May 2020, June 2020 and July 2020
respectively.
We have recently commenced construction on our Uxbridge store
which we anticipate will open in early 2021.
During the period, as previously reported, we obtained planning
consent on our development sites at Hove and Queensbury
(London).
We are continuing planning discussions on our other development
sites and will provide further updates in due course.
The Group's development pipeline amounts to approximately
890,000 sq ft, representing 19% of current MLA, with an estimated
future cost to complete of GBP90 million.
James Gibson, Chief Executive Officer, commented:
"The economic and political uncertainty that we referred to in
our interim results continued during the lead-up to the December
election. Following, the election however, trading in the quarter
improved.
Despite this uncertainty, the business continued to deliver
revenue and rate growth over the quarter.
Since the start of the fourth quarter we are seeing a pick-up in
demand, as represented by enquiries through our digital channels,
and growing net reservations. Occupancy has also started to grow
from its seasonally low point at the end of December.
We remain focussed on our objective of 90% occupancy and look
forward to delivering growth in occupancy and revenue over the
fourth quarter and continuing this 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 020 7260 2700
Ben Foster
Matthew Denham
Notes to Editors
Big Yellow is the UK's brand leader in self storage. Big Yellow
now operates from a platform of 100 stores, including 25 stores
branded as Armadillo Self Storage, in which the Group has a 20%
interest. We own a further thirteen Big Yellow self storage
development sites, of which six have planning consent. The current
maximum lettable area of the existing platform (including
Armadillo) is 5.7 million sq ft. When fully built out the portfolio
will provide approximately 6.6 million sq ft of flexible storage
space. Of the Big Yellow stores and sites, 98% by value are held
freehold and long leasehold, with the remaining 2% 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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