Big Yellow Group has posted a 2% rise in adjusted net asset value per share to 436.3p, driven by strong rental and occupancy growth, in its half-year results.
The self-storage group’s net rent per square foot rose by 2.9% from 1 April 2013, and its 32 established stores reported 77.1% occupancy at the end of the period, up from 72.8% the previous period, and from 77% a year earlier.
The 18 established stores inside London reached 77.9% occupancy, while established stores outside London were 75.3% full.
Its 22 lease-up stores saw occupancy grow from 54.3% to 61.9% over the period, taking overall group occupancy to 70.5%.
The 12 Big Yellow Partnership stores saw occupancy grow around 5% to 60.5% and the company added that its seasonal loss of occupancy in the seven weeks since the period-end was “significantly” down on last year at 32,000 sq ft, compared with 91,000 sq ft in 2012.
Revenue showed a 5.1% like-for-like increase in October this year – the first month following the anniversary of the introduction of VAT – “demonstrating that the VAT impact is firmly in the past and we are now returning to more normal growth”, according to executive chairman Nicholas Vetch.
The group posted a pretax profit of £34.5m, including a £17.8m uplift in the value of its investment properties, in the six months to the end of September. Adjusted pretax profit rose 2% to £14.2m.
Group net debt has fallen by £1.8m to £228.6m.
Vetch added: “We have delivered a good performance with occupancy growth across the wholly owned portfolio in line with the same period last year. This occupancy growth, combined with an improvement in yield, has offset the adverse impact, particularly within the established portfolio, from the introduction of VAT in the second half of last year.
“In our final statement earlier this year we expressed some cautious grounds for optimism which currently looks justified, given the improving economic picture and current trading. We have significant belief in London reinforcing its position as one of the world’s leading cities, if not the pre-eminent one. The weighting of our portfolio to the Greater London area will benefit from the capital’s growth.”
bridget.o’connell@estatesgazette.com
