Big Yellow says its adjusted net asset value at the end of September 2016 was 594.1 pence per share, up 4% from 569.1 pence per share at 31 March 2016. The Group made an adjusted profit before tax in the period of GBP27.0 million, up 13% from GBP23.9 million for the same period last year. Diluted EPRA earnings per share was 16.9 pence (2015: 15.1 pence), an increase of 12% from the same period last year. A PID of 13.5 pence per share is proposed as the total interim dividend, an increase of 12% from 12.1 pence per share PID for the same period last year.
Like-for-like revenue growth in the first quarter was 8%, which moderated to 6.5% in the second quarter, with the average for the half year of 7.2%. Overall store EBITDA margin increased to 68.5% (2015: 67.0%). Closing like-for-like Group occupancy is up 2.7 percentage points to 79.0% compared to 76.3% at 31 March 2016. The 64 mature stores are 79.7% occupied compared to 78.3% at the same time last year. The six established stores have grown in occupancy from 69.2% to 75.4%. The three developing stores added 29,000 sq ft of occupancy in the period to reach closing occupancy of 60.0%. Since the referendum result, they have seen a slight moderation in demand with lower move-in and move-out activity, resulting in less churn in the business. 15% is occupied by customers who are longer stay lifestyle users decluttering into small rooms as an extension to their accommodation; 50% are using it for less than 12 months as a result of an event in their life, which could be inheritance, moving, carrying out work; and the balance of 35% are businesses, typically SMEs.
They say that developing stores in their core area of London and the South East remains challenging. Sites are scarce, and faced with a housing shortage, policy makers are focussed on residential provision at the expense of commercial development. They are aware of only two stores likely to open in London in the next 12 months. They continue to look for land and existing storage centres, with a focus on London. They will not be opening a store in the current year, but intend to commence construction on Guildford Central shortly, with a view to it opening in January 2018. At 30 September, the future cost of the current pipeline of seven development sites and extensions, six of which are subject to planning, is estimated to be GBP55 million. This excludes any net proceeds that may be received on the redevelopment of the Battersea store and adjoining retail units into a mixed use scheme of residential, retail and self storage.
BYG : Big Yellow NAV up 4% at end September