Economic activity might have slowed recently ahead of the EU referendum, but demand for space at self-storage group Big Yellow (BYG) remained largely unaffected. In fact, like-for-like occupancy rates rose from 73.2 per cent to 76.7 per cent, nearer to its 85 per cent target, and the group managed to push through rental increases to push average net rent per square foot up nearly 3 per cent to £25.73.
With 80 per cent of revenue generated in the more prosperous south-east and London, the property portfolio itself received a valuation hike of £58m, and there was also a profit on disposal of surplus land of £4.8m. Crucially, rental income grew by more than a fifth, boosted by the opening of two new stores in Enfield and Cambridge. And since the year-end the company has acquired the four-store Lock and Leave portfolio for £21m.
Demand for land has made it hard to acquire new sites, but Big Yellow managed to secure a one-acre site at King's Cross, which is expected to become a 90,000 sq ft store, subject to planning consent. A similar site has also been secured in Camberwell, and when these and other developments have been completed, capacity should rise from 5.3m sq ft to 5.7m sq ft.
Analysts at Peel Hunt are forecasting adjusted net asset value at March 2017 of 575p (from 569p in 2016).
| BIG YELLOW (BYG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 874p | MARKET VALUE: | £1.38bn | |
| TOUCH: | 870-874p | 12-MONTH HIGH: | 874p | LOW: 620p |
| DIVIDEND YIELD: | 2.8% | DEVELOPMENT PROPERTIES: | £33.9m | |
| PREMIUM TO NAV: | 65% | |||
| INVESTMENT PROP: | £1.1bn* | NET DEBT: | 36% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 386 | -35.6 | -27.7 | 10 |
| 2013 | 396 | 31.9 | 24.4 | 11 |
| 2014 | 424 | 59.8 | 42.5 | 16.4 |
| 2015 | 484 | 105 | 72.5 | 21.7 |
| 2016 | 531 | 112 | 71.9 | 24.9 |
| % change | +10 | +7 | -1 | +15 |
Ex-div: 16 Jun Payment: 28 Jul *Includes joint ventures | ||||
