Portfolio

Big Yellow Q3 revenues up against weak economic backdrop

By Frank Prenesti

Date: Thursday 16 Jan 2020

(Sharecast News) - Self storage group Big Yellow reported a 1.9% rise in third quarter revenue as political and economic uncertainty continued in the lead-up to the UK General Election.
For the three months to December 31, revenue increased to £32.3m. Like-for-like closing occupancy was 80.7%, down 0.4% year on year.

Third quarter occupancy fell by 165,000 sq ft compared to a loss of 126,000 sq ft in the same quarter last year.

Like-for-like closing occupancy fell 0.4 percentage points to 80.7%. Closing occupancy was 79.9%, after the opening of the company's site in Manchester in May 2019 and the closure of its Battersea operation in March 2019.

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 £28.42, an increase of 2.8% from the same time last year, and up 4.2% from 31 March 2019.

The company on Thursday said that it had seen a pick up in demand since the start of the fourth quarter we are seeing a pick-up in demand with enquiries through its digital channels, and growing net reservations.

"Occupancy has also started to grow from its seasonally low point at the end of December," said chief executive James Gibson.

"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.".

Gibson said the group's development pipeline amounts to approximately 890,000 sq ft, representing 19% of current maximum lettable area, with an estimated future cost to complete of £90m.

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