Shares in Big Yellow (BYG) rose 7 per cent after the self-storage space operator posted a sharp increase in profits and a 32 per cent uplift in the total dividend payment. Demand for self-storage space was strong in London and elsewhere, and occupancy rates rose from 67.9 per cent to 73.2 per cent despite an increase in storage space of 234,000 sq ft.
Adjusted net asset value grew by 14 per cent to 510p a share, boosted by a £64m valuation uplift on the portfolio. At the same time, like-for-like rental income grew by 2.4 per cent, through a mixture of price increases for existing customers and reduced discounts for new customers.
Big Yellow also moved to snap up the two-thirds stake it did not own in a joint venture set up in 2007 with Pramerica Real Estate Investors. Big Yellow paid £39m and also took on £57m of debt, largely funded by a £76m placing last November. Other acquisitions included a former Royal Mail depot in Cambridge. As an indication of the strong demand for storage space, this purchase is the group's first new site acquisition for construction in seven years.
Analysts at Peel Hunt are forecasting adjusted EPS of 30.6p for the current year and adjusted NAV of 489p a share (from 27.1p/510p in 2015), but with scope for upgrades.
| BIG YELLOW (BYG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 694.5p | MARKET VALUE: | £1.09bn | |
| TOUCH: | 694-696p | 12-MONTH HIGH: | 709p | LOW: 451p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 480p | NET DEBT: | 37% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 61.9 | 6.9 | 5.3 | 9 |
| 2012 | 65.7 | -35.6 | -27.7 | 10 |
| 2013 | 69.7 | 31.9 | 24.4 | 11 |
| 2014 | 72.2 | 59.8 | 42.5 | 16.4 |
| 2015 | 84.3 | 105 | 72.5 | 21.7 |
| % change | +17 | +76 | +71 | +32 |
Ex-div: 11 Jun Payment: 23 Jul | ||||
