Big Yellow Trading Statement, July 2018.
19th July 2018
The 74 Big Yellow stores increased occupancy over the quarter by 131,000 sq ft resulting in a closing occupancy of 83.4%. Like for like closing occupancy was 84.2%, an increase of 2.6 ppts from 30 June 2017. The Group's average achieved net rent per sq ft increased by 3.2% compared to the same quarter last year.
The Group's like for like revenue increased by 7.6% compared to the same quarter last year, driven by a combination of growth in occupancy and rate.
Revenue from the Armadillo portfolio for the quarter to 30 June 2018 increased by 23% to £3.7 million compared to the same quarter last year. Like for like revenue, excluding Stockton South, Newcastle and Gateshead (all acquired in the year ended 31 March 2018) increased by 9% compared to the same quarter last year.
The 25,000 sq ft extension to our Wandsworth store opened in May 2018, taking the store's MLA to 72,000 sq ft.
We are currently fitting out the available vacant space at our site in Wapping to create a self storage centre of approximately 25,000 sq ft, which will open at the end of this month.
Our landmark Manchester city centre store of 60,000 sq ft on Water Street is currently under construction with a scheduled opening in summer 2019. We will also commence construction, later this year, of our 72,000 sq ft store in Camberwell, London, with the store scheduled to open in spring 2020.
In addition, we have recently submitted our planning application on our proposed Kings Cross store.
We are continuing planning discussions on our other development sites and will provide further updates in due course.
James Gibson, Chief Executive Officer, commented:
"We have continued to grow our like for like occupancy to over 84%, and remain focussed on our core objective of 90% across the portfolio. As we have reduced vacant capacity, our pricing model is delivering improved rental growth and we are pleased to have achieved growth in average net rent of 3.2%.
Like for like revenue has increased by 7.6% with a more balanced contribution from occupancy and rate growth than in the previous year.
As reported in our full year results in May we are continuing to follow a more aggressive expansion strategy, largely through the acquisition of raw land as there are very few existing stores that are available to purchase and of the requisite quality. The acquisition of sites for our proposed stores in Hove and Uxbridge were completed during the quarter."