Big Yellow Group PLC 3rd Quarter Results (7316T)

TIDMBYG

RNS Number : 7316T

Big Yellow Group PLC

10 January 2017

10 January 2017

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 third quarter ended 31 December 2016.

Results

 
                                       31 December   31 December 
                                              2016          2015       % 
------------------------------------  ------------  ------------  ------ 
 Store maximum lettable 
  area ("MLA")                           4,551,000     4,404,000      +3 
 Closing Occupancy (sq ft)               3,436,000     3,240,000      +6 
 Closing Occupancy (% of                                            +1.9 
  MLA)                                       75.5%         73.6%    ppts 
                                                                    +2.4 
 Like-for-like Closing Occupancy(1)          76.0%         73.6%    ppts 
 Revenue for the quarter                  GBP27.4m      GBP25.7m      +7 
 Like-for-like revenue for 
  the quarter(1)                          GBP26.9m      GBP25.7m      +5 
 Year to date revenue                     GBP82.2m      GBP75.9m      +8 
 Like-for-like revenue year 
  to date                                 GBP80.7m      GBP75.9m      +6 
 Average quarterly like-for-like 
  net achieved rent per sq 
  ft(1)                                   GBP26.33      GBP25.73      +2 
------------------------------------  ------------  ------------  ------ 
 

(1) Excluding Cambridge which opened in January 2016 and Nine Elms and Twickenham 2 (acquired from Lock and Leave on 28 April 2016).

In our seasonally weaker third quarter, the 73 stores decreased in occupancy by 137,000 sq ft (3.0% of the MLA at 31 December 2016) compared to a loss of 138,000 sq ft in the same quarter last year (3.1% of the MLA at 31 December 2015).

The Group's like-for-like revenue increased by 5% compared to the same quarter last year, and is up 6% for the year to date.

The revenue from the Armadillo portfolio for the quarter to 31 December 2016 increased by 17% to GBP2.6 million compared to the same quarter last year. Like-for-like revenue, excluding West Molesey and Canterbury (acquired from Lock and Leave in April 2016), increased by 4% compared to the same quarter last year.

Development

We commenced construction at Guildford Central in December, with a view to the 55,000 sq ft MLA store opening in early 2018.

In December we obtained planning consent for a 25,000 sq ft extension to our existing Wandsworth store, and we anticipate that the extension works will be completed in Spring 2018.

We are continuing to progress planning on our other development sites and will provide a further update in May with our final results.

James Gibson, Chief Executive Officer, commented:

"After a weaker October, occupancy performance improved in November and December, delivering a similar performance to last year with a loss of 137,000 sq ft (3.0% of MLA) compared to a loss of 138,000 sq ft (3.1% of MLA) in the prior year. Average year on year rate growth slowed to 2.3% in the quarter compared to 2.8% for the first half of the year.

Like-for-like revenue growth for the quarter to December was 5%, impacted by the loss of occupancy in the quarter being more front-ended. Our earnings guidance for the full year remains in line with current consensus.

As we referred to in our half year results significant uncertainties remain around the UK's economic outlook. That said, we believe new supply in our key areas of operation, particularly London, will remain constrained over the medium to longer term and that the business is well placed to face down most challenges.

We look forward to delivering occupancy and revenue growth over this quarter and to continuing this growth 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 Blue Rubicon 020 3757 9234

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 extension 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 10, 2017 02:00 ET (07:00 GMT)