Big Yellow Group PLC Trading Statement (9544Z)

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 Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 16, 2020 02:00 ET (07:00 GMT)