Interim Management Statement

RNS Number : 3327V

Big Yellow Group PLC

11 January 2012

 



11 January 2012

Big Yellow Group PLC

("Big Yellow" or "the Group")

Interim Management Statement

The Board of Big Yellow Group PLC, the UK's leading self storage brand, is pleased to provide the following update on trading for the third quarter ending 31 December 2011. 

52 Wholly Owned Stores

In the December quarter, where we typically see a seasonal fall in occupancy, the wholly owned stores fell in occupancy by 57,000 sq ft (1.7% of capacity) compared to a loss of 75,000 sq ft (2.3% of capacity) in the same quarter last year.

Closing occupancy was 2,034,000 sq ft across all 52 stores at 31 December, representing 61.7% of their 3,297,000 sq ft total capacity.  This is an increase from 1,874,000 sq ft occupied at the same time last year and down from 2,091,000 sq ft occupied (63.4% of total capacity) at 30 September 2011.

Occupancy in the 32 established stores that were mature prior to the downturn was 1,403,000 sq ft (72.3% of capacity)

‒   Up 32,000 sq ft from 1,371,000 sq ft (70.6% of capacity) at 31 December 2010

‒   Down 49,000 sq ft from 1,452,000 sq ft (74.8% of capacity) at 30 September 2011

Occupancy in the the 20 lease-up stores was 631,000 sq ft (46.5% of capacity)

‒   Up 128,000 sq ft from 503,000 sq ft at 31 December 2010

‒   Down 8,000 sq ft from 639,000 sq ft (47.1% of capacity) at 30 September 2011

Total store revenue for the 52 stores was £16.2 million for the quarter

‒   Up 8% from £15.0 million for the same quarter last year

‒   Down 2% from £16.6 million for the quarter to 30 September 2011

In addition, the group earned management fees and non-storage rental income of £0.4 million in the quarter (same quarter last year: £0.6 million, quarter to 30 September 2011: £0.4 million).

Annualised store revenue (annualised storage, packing material and insurance revenues at the end of the period) was £63.0 million at 31 December 2011, up 7% from £58.9 million at 31 December 2010.

The 52 stores achieved an average net rent per sq ft over the quarter of £26.69, compared to £26.71 for the same quarter last year and £26.68 for the quarter to 30 September 2011. 

The closing net rent per sq ft for the 32 established stores at 31 December 2011 was £26.67 per sq ft, compared to £26.41 per sq ft at 30 September 2011 and £26.34 per sq ft at 31 March 2011.

12 Big Yellow Limited Partnership ("Partnership") Stores

Occupancy grew by 7,000 sq ft in the quarter to 296,000 sq ft across the twelve Partnership stores, representing 39.8% of their 743,000 sq ft total capacity at 31 December. This is an increase from 180,000 sq ft at the same time last year and from 289,000 sq ft occupied at 30 September 2011.

Total store revenue for the 12 stores was £1.7 million for the quarter

‒   Up 55% from £1.1 million for the same quarter last year

‒   Unchanged from £1.7 million for the quarter to 30 September 2011

Annualised store revenue was £6.6 million at 31 December 2011, an increase of 50% from £4.4 million at 31 December 2010

The twelve stores achieved an average net rent per sq ft over the quarter of £18.10, which was down 4% from £18.93 for the same quarter last year and down 3% from £18.70 for the quarter to 30 September 2011.

Store update

We are currently constructing wholly owned stores in New Cross, South East London, and Chiswick, West London.  New Cross is expected to open in February 2012 and Chiswick in May 2012.

James Gibson, Chief Executive Officer, commented:

"Given the current uncertain economic and consumer environment, the reported year-on-year improvement in revenue and occupancy performance is a pleasing result.  Indeed, move-in activity in the wholly owned store portfolio was up 15% on the same quarter last year, reflecting an improvement in both domestic and business activity.

We typically see a return to occupancy and revenue growth in the quarter to March.  January has started positively, both in terms of reservation numbers and occupancy growth.

We remain committed to our stated medium term objective of growing cash flow and earnings, and look forward to 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

Weber Shandwick Financial                                                                              020 7067 0700

Nick Oborne/John Moriarty

Notes to Editors 

Big Yellow Group PLC is the best known and one of the most dynamic self storage groups in the UK.  It was founded in September 1998 by Nicholas Vetch, Philip Burks, and James Gibson and listed on AIM in May 2000, moving to the Official List of the London Stock Exchange in June 2002. 

Big Yellow has expanded rapidly and now operates from 64 stores, 56 in London and the South, two in Sheffield, and one each in Birmingham, Edinburgh, Leeds, Liverpool, Nottingham and Stockport. Two further stores are currently under construction in London, with a further four development sites, of which three have planning. Of the 70 total stores and sites, 59 are held freehold and four long leasehold (together representing approximately 94% by value of the total property assets); seven stores are held short leasehold.  All the stores have distinct yellow branding, with the majority being within the M25 or in strong urban conurbations.  The Group currently operates from a platform of 4.0 million sq ft.  When fully built out the portfolio will provide approximately 4.4 million sq ft of flexible storage space. 

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.  Its focus on the location and visibility of its buildings, coupled with excellent customer service, has created the most recognised brand name in the UK self storage industry.

 

END

 

 

IMSGGUQAGUPPGQU