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The self-storage industry giant Big Yellow declared their results earlier today, below is a quick summary of highlighting the results.
1. Strong occupancy levels driving 7% revenue growth
2. Closing net rent up 2.7% from March 2017, average rate up 0.8% year on year and up 1.5% in the second half.
3. Cash flow from operating activities (after finance costs) increase by 13% to £63.0 billion.
4. Acquisition of new development sites in Wapping (London), Hove, Bracknell and Slough taking pipeline to approximatively 640.000 sq ft (14% of current MLA)
5. Planning consent obtained at Manchester for a landmark city center store of 60.000 sq ft
6. Planning consent obtained at Camberwell, London for a 72.000 sq ft store
7. Refinancing extending the term of the Group’s debt and reducing the average cost
Armadillo – Update:
1. Acquisition of six stores in the year. Exeter, Plymouth, and Torquay from Quick Store in April 2017. Stockton South from Store it 4U in December 2017. Gateshead and Newcastle from 1stStorage Centres in March 2018.
2. Rebranding and investing in stores
3. Capital spend of £1.5 million over the last 18 months in Armadillo
• Fitting out additional space
• Large space reconfiguration into smaller, higher-yielding units
• Upgrading of stores
Big Yellow digital platform leads to significant increase in inquiry levels in stores post-acquisition, on average double and in some cases, up to three times
Portfolio occupancy peaked at 80% over the summer (average store size of 44,000 sq ft) outperforming investor expectations
New site development:
1. Guildford Central opened March 2018, Wandsworth extension in May 2018
2. Portfolio approaching 85% occupancy -increased focus on new development
3. Acquisition of prime sites in Wapping (East London), Bracknell, Slough, Hove, and Uxbridge
4. Development pipeline of approximately 640,000 sq ft with an estimated cost to complete of £110 million, the total development cost of £187 million with projected net operating income at today’s prices of approximately £16.5 million
5. Planning consent granted at Manchester for a landmark 60,000 sq ft store, opening in Spring 2019 and at Camberwell for a 72,000 sq ft store, planned for opening in Spring 2020
6. Retain focus on freehold, the current percentage of freehold by value is 97% and keep weighting of London and the South East at over 80% by revenue