Big Yellow has announced results for the year ended 31 March 2015. Over the period, the adjusted net asset value rose by 14%, adjusted profit before tax rose by 35%, the EPRA earnings per share rose by 32% to 27.1p and the total dividend for the year was increased from 16.4p to 21.7p (+32%).
Big Yellow now operates from a platform of 84 stores, including 14 stores branded as Armadillo Self Storage, in which the Group has a 20% interest. We own a further five Big Yellow self storage development sites, of which two have planning consent. The current maximum lettable area of this platform is 5.1 million sq ft. When fully built out the portfolio will provide approximately 5.4 million sq ft of flexible storage space. Of the Big Yellow stores and sites, 96% are held freehold and long leasehold (by value); with the remaining 4% short leasehold.
Occupancy rose from 67.9% to 73.2% and this was one of the big drivers of the improved profitability along with an improvement in the average rent per square foot from £24.32 to £24.95.
Two new freehold stores were constructed at Gypsy Corner and Enfield during the year and two existing freehold stores acquired in Oxford and Chester and a freehold interest in an existing store in Battersea. They also bought a freehold building in Cambridge for conversion.
Outstanding bank debt has risen to £277m but, as a percentage of gross assets, the leverage ratio has fallen to 27% from 28% (the gross assets of the company grew significantly with the Pramerica acquisition they made in December 2014). Interest cover was 5.9x based on annualised numbers at the end of March – a big improvement on the 4.1x figure a year earlier.
BYG : Big Yellow achieves 30%+ growth in earnings and dividends