U.K. self-storage operator Big Yellow Group PLC released operating-performance results for the first six months of its 2016 fiscal year, which ended Sept. 30. The company reported revenue of £50.2 million for the period, up 26 percent from a year ago. Excluding the company’s 12 partnership facilities, revenue was £43.2 million for the period, a 9 percent increase.
Occupancy across the company’s portfolio of 70 locations closed at 76.7 percent for the period compared to 73.2 percent the previous year. Move-ins across all facilities were essentially even year over year, with a net gain of 3,253. Same-store occupancy was 77.3 percent, up from 73.5 percent a year ago. Same-store net rent per square foot was £25.79, a 3.5 percent increase from the same period a year ago.
“As we have stated previously, we make no attempt to judge economic or asset cycles. We believe Big Yellow is well-placed to withstand future headwinds, given the security of our capital structure and market leading brand,” said Nicholas Vetch, executive chairman. “As the Big Yellow portfolio is approaching 80 percent [average occupancy], we remain relentlessly focused on occupancy gain at this stage; but in addition, we have intensified our efforts to develop new capacity.”
Big Yellow acquired two self-storage properties during the period in Camberwell and Kings Cross, England. The company intends to develop a new facility in Camberwell comprising 55,000 to 60,000 square feet. The Kings Cross project is on a 1-acre site and will comprise 85,000 to 90,000 square feet.
“Our principal capital allocation and property strategy has always been to target London and the Southeast, where there is population growth, scarcity of available development land, increasing pressure for housing and densification,” Vetch said. “This results in a compelling investment proposition, particularly in London and the Southeast, which represents 80 percent of our business by revenue. In the longer term, as awareness grows and these factors intensify, demand from business and domestic customers in our big cities is likely to outstrip the available supply of self-storage. Big Yellow is well-positioned to enjoy both the benefits of scarcity and exploit any new opportunities."
The company declared an interim dividend of 12.1 pence per share, a 16 percent increase from the same period last year.
Big Yellow Group operates 84 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo Self Storage brand names, with most concentrated in Greater London. Its total portfolio comprises 5.1 million square feet.
- Big Yellow Group PLC: Results for the Six Months Ended 30 September 2015