11 January 2024

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 2023. 

(1)   Excluding Aberdeen (acquired June 2022), Harrow and Kingston North (both opened September 2022) and Kings Cross (opened June 2023)

(2)   As per (1), additionally excluding the Armadillo stores

In our seasonally weaker third quarter, occupancy across all 109 stores decreased by 249,000 sq ft (3.9% of the MLA at 31 December 2023) compared to a similar loss of 240,000 sq ft in the same quarter last year (3.8% of the MLA at 31 December 2022). 

Closing occupancy, reflecting the additional capacity from five recently opened stores, for all stores was 77.6%, a decrease of 2.8 ppts from 80.4% last year.  Like-for-like closing occupancy for the Big Yellow stores was 80.4%, a decrease of 2.3 ppts from the same time last year. 

Closing net achieved rent per sq ft for all stores was £34.65, an increase of 7% from the same time last year, with average rate up 7% on the same quarter last year. 

The Group's revenue increased by 5% in the quarter, with like-for-like store revenue up 4%.  Revenue for the year to date is up 6%, with like-for-like store revenue growth of 4%. 

Refinancing of Revolving Credit Facility ("RCF")

As announced in December, the Group has put in place a new £300 million ESG-linked facility for an initial term of three years, with the option to extend the facility by two additional one-year terms through to December 2028, subject to lender approval.  The facility has been provided by Lloyds Bank plc, HSBC UK Bank plc, Bank of Ireland, and Barclays Bank plc, with Barclays joining the existing three bank syndicate.  The margin of 1.25% over SONIA is unchanged from the existing facility.  At 31 December 2023, our net debt was £372 million, of which approximately 50% is fixed, with the balance variable.

Jim Gibson, Chief Executive Officer, commented:

"The occupancy performance in the third quarter has been similar to last year and although it is too early in the quarter to judge whether it is sustainable, we have seen a pick-up in our book of reservations.

We are gearing up to commence construction on all the sites on which we have planning consent, and where vacant possession is available, which we expect will add significantly to earnings over the next few years.  The refinancing of the RCF, and with net debt to EBITDA of approximately three times, means we can execute this expansion without taking undue risk."

For further information, please contact:

Big Yellow Group PLC                                                                                                                        01276 477 811

Nicholas Vetch CBE, Executive Chairman

Jim Gibson, Chief Executive Officer

John Trotman, Chief Financial Officer

Teneo                                                                                                                                                     

Charlie Armitstead                                                                                                                                  020 7260 2700

Oliver Bell

Notes to Editors 

Big Yellow is the UK's brand leader in self storage.  Big Yellow now operates from a platform of 109 stores, including 24 stores branded as Armadillo Self Storage.  We have a pipeline of 0.9 million sq ft comprising 13 proposed Big Yellow self storage facilities.  The current maximum lettable area of the existing platform (including Armadillo) is 6.4 million sq ft.  When fully built out the portfolio will provide approximately 7.3 million sq ft of flexible storage space.  99% of our stores and sites by value are held freehold and long leasehold, with the remaining 1% 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 stores, with excellent customer service, a market-leading online platform, and significant and increasing investment in sustainability, has created in Big Yellow the most recognised brand name in the UK self storage industry.