Big Yellow Group Plc · LSE:BYG
Big Yellow — H1 2025 Earnings Presentation
53 slides from Big Yellow's earnings presentation, November 2024
Slide 1: Results for the Six Months ended 30 September 2024
Big Yellow Group PLC Results for the Six Months ended 30 September 2024
Slide 2: Key Financial Metrics
Key Financial Metrics BIG YELLOW GROUP HALF YEAR RESULTS Six Months Six Months CATEGORY Ended Ended CHANGE 30.09.24 30.09.23 Revenue £103.0 million £99.6 million 3% Store Revenue £102.2 million £98.3 million 4% OVERVIEW Like-For-Like Store Revenue £101.0 million £98.1 million 3% Store EBITDA £70.9 m
Slide 3: Key Store Metrics
Key Store Metrics BIG YELLOW GROUP HALF YEAR RESULTS Six Months Six Months CATEGORY Ended Ended CHANGE 30.09.24 30.09.23 Number of Stores 109 109 - Store Maximum Lettable Area 6,421,000 6, 419,000 - OVERVIEW Closing Occupancy (Sq Ft) 5,168,000 5,228,000 (1%) Occupancy Growth In The Period (Sq Ft) 13
Slide 4: First Half Highlights
First Half Highlights BIG YELLOW GROUP HALF YEAR RESULTS • Store revenue growth for the period was 4%, with like-for-like store revenue up by 3%, principally through rental growth, since the period end we have seen some improvement in year-on-year occupancy performance • Like-for-like occupancy incr
Slide 5: Highlights - Investment in New Capacity
BIG YELLOW GROUP Highlights - Investment in New Capacity HALF YEAR RESULTS • Opened new 65,000 sq ft freehold store in Slough Farnham Road, customers successfully transferred from nearby existing leasehold store, which will shortly be handed back to landlord • Acquired freehold property in Leamingto
Slide 6: Operations Update
Operations Update BIG YELLOW GROUP HALF YEAR RESULTS • AI and automation used throughout the business leading to improved efficiencies and productivity • We increased our digital marketing investment in the first half to drive demand and for the full year are projecting an increase of 5% • 93% of pr
Slide 7: Monthly Activity
Monthly Activity BIG YELLOW GROUP HALF YEAR RESULTS Monthly Move-ins Monthly Move-outs 12,000 13,000 11,000 12,000 10,000 11,000 9,000 10,000 9,000 8,000 2023 2023 8,000 7,000 7,000 6,000 2024 6,000 2024 5,000 2025 5,000 2025 4,000 4,000 OVERVIEW Monthly Changes in Occupancy • Prospect numbers were
Slide 8: Financial Review
FINANCIAL REVIEW Harrow, London, September 2022
Slide 9: Portfolio Summary
Portfolio Summary BIG YELLOW GROUP HALF YEAR RESULTS • Like-for-like Big Yellow closing occupancy up 1.9 ppts from 1 April and down 1.5 ppts from September 2023 to 80.9% FINANCIAL REVIEW • Occupancy gain in the period of 139,000 sq ft (2023: 140,000 sq ft) • Closing net rent up 4% to £34.77, average
Slide 10: Portfolio Summary
Portfolio Summary BIG YELLOW GROUP HALF YEAR RESULTS SEPTEMBER 2024 SEPTEMBER 2023 BIG YELLOW BIG YELLOW BIG YELLOW BIG YELLOW ESTABLISHED DEVELOPING ARMADILLO TOTAL ESTABLISHED DEVELOPING ARMADILLO TOTAL > 3 YEARS < 3 YEARS > 3 YEARS < 3 YEARS Number of stores 79 6 24 109 79 6 24 109 At 30 Septembe
Slide 11: Rental Growth Analysis
Rental Growth Analysis BIG YELLOW GROUP HALF YEAR RESULTS NET RENT PER SQ FT GROWTH NET RENT PER SQ FT GROWTH AVERAGE OCCUPANCY FROM FROM IN THE SIX MONTHS 1 APRIL TO 30 SEPTEMBER 2024 1 APRIL TO 30 SEPTEMBER 2023 75% to 85% 1.6% 2.6% FINANCIAL REVIEW 85% to 90% 4.1% 3.5% Above 90% 5.0% 4.7% • Table
Slide 12: Store Operating Expenses
Store Operating Expenses BIG YELLOW GROUP HALF YEAR RESULTS PERIOD PERIOD % OF STORE • Pre non-recurring items, store operating costs have increased by 12%. New ENDED ENDED OPERATING CATEGORY CHANGE stores account for an extra £0.6 million of operating expense, remaining 30.09.24 30.09.23 COSTS IN i
Slide 13: Consolidated Income Statement
Consolidated Income Statement BIG YELLOW GROUP HALF YEAR RESULTS SIX MONTHS SIX MONTHS ENDED ENDED 30.09.24 30.09.23 £000 £000 • Revenue up 3%, store revenue up 4%, driven by an increase in Revenue 103.0 99.6 average achieved net rent, offset by slight fall in average occupancy Cost of Sales (32.1)
Slide 14: Adjusted PBT Bridge
Adjusted PBT Bridge BIG YELLOW GROUP HALF YEAR RESULTS Decrease Decrease in Increase in admin (£0.4m) Increase in other in Increase in gross capitalised profit expenses operating net interest FINANCIAL income interest payable £1.4m APPENDIX (£0.9m) (£0.9m) £0.2m £1.6m REVIEW £53.5m £54.9m Adjusted A
Slide 15: Cash Flow and Net Debt Movement
Cash Flow and Net Debt Movement BIG YELLOW GROUP HALF YEAR RESULTS 30.09.24 30.09.23 £m £m Opening Net Debt (385.4) (486.6) Cash Generated from Operations 65.5 68.3 Net Finance Costs (11.4) (12.8) • Operating cash flow after net finance costs and pre-working capital FINANCIAL Interest on Obligations
Slide 16: Capital Structure
Capital Structure BIG YELLOW GROUP HALF YEAR RESULTS 30.09.24 30.09.23 FINANCIAL Net Debt / Gross Property Assets 12% 18% APPENDIX Net Debt / Adjusted Net Assets 13% 21% • The Group’s gross property assets are £2.95 billion with an adjusted NAV per share of £13.48 REVIEW Net Debt / Market Capitalisa
Slide 17: Debt Facilities
Debt Facilities BIG YELLOW GROUP HALF YEAR RESULTS AVERAGE 30.09.24 DEBT EXPIRY FACILITY INTEREST DRAWN COST FINANCIAL Aviva Loan September 2028 £154.1m £154.1m 3.4% M&G Loan (£35 million fixed at 4.5% plus September 2029 £120m £120m 6.6% APPENDIX margin, £85 million floating) REVIEW Revolving Bank
Slide 18: Property Review
PROPERTY REVIEW Staples Corner, Summer 2026 18
Slide 19: New Site Development
New Site Development BIG YELLOW GROUP HALF YEAR RESULTS • Opening of freehold store in Slough Farnham Road in period, replacing a nearby leasehold, consistent with our strategy of reducing rent liabilities. Slough Farnham Road our first net zero store, with a solar PV installation of 200kWp (our lar
Slide 20: Slough Farnham Road
Slough Farnham Road BIG YELLOW GROUP HALF YEAR RESULTS PROPERTY REVIEW 20 20
Slide 21: Development Pipeline with Planning
Development Pipeline with Planning BIG YELLOW GROUP HALF YEAR RESULTS ANTICIPATED CAPACITY SITE PROMINENT LOCATION STATUS SQ FT Construction commenced with a view to opening in Staines, The Causeway Summer 2025. We are also developing 9 industrial 66,000 London units on the site totalling 99,000 sq
Slide 22: Development Pipeline with Planning
Development Pipeline with Planning BIG YELLOW GROUP HALF YEAR RESULTS ANTICIPATED CAPACITY SITE PROMINENT LOCATION STATUS SQ FT Replacement for Demolition in progress, construction to commence Staples Corner, existing leasehold North Circular Road in late 2024 with a view to opening in Summer London
Slide 23: Development Pipeline without Planning
BIG YELLOW GROUP Development Pipeline without Planning HALF YEAR RESULTS ANTICIPATED CAPACITY SITE PROMINENT LOCATION STATUS SQ FT Site acquired in June 2022. Planning PROPERTY REVIEW Old Kent Road, London Old Kent Road application submitted in October 2023, 77,000 decision expected early 2025 Site
Slide 24: Our Portfolio
Our Portfolio BIG YELLOW GROUP HALF YEAR RESULTS KEY 85 Big Yellow stores (47 in London) 13 Big Yellow stores under development (9 in London) 24 Armadillo stores (1 in London) Outside London 65 stores and sites London 57 stores and sites PROPERTY REVIEW 24 24
Slide 25: Summary
Summary BIG YELLOW GROUP HALF YEAR RESULTS • We will continue to innovate and invest in our people and culture, our brands, operating platform and sustainability • Pipeline of 13 stores (1 million sq ft), principally in London with nine under construction. In addition, we have 1.4 million sq ft of f
Slide 26: Appendix
APPENDIX Hove, September 2022
Slide 27: Our Investment Case
Our Investment Case BIG YELLOW GROUP HALF YEAR RESULTS • UK self storage penetration in key urban conurbations remains relatively low • Limited new supply coming onto the market ATTRACTIVE MARKET DYNAMICS • Resilient through the global financial crisis and performed well during the pandemic • Awaren
Slide 28: Sustainability Update
Sustainability Update BIG YELLOW GROUP HALF YEAR RESULTS • We now have our Science-Based Targets (“SBTs”) fully verified to reinforce our pathways to 100% renewable energy and net zero carbon emission plan by 2032 • The solar retro-fit programme is projected to cost £25 million, of which £13.6 milli
Slide 29: Pathway To 100% Renewable Energy And Zero Carbon Emission Plan
BIG YELLOW GROUP Pathway To 100% Renewable Energy And Zero Carbon Emission Plan To 2030 & 2032 HALF YEAR RESULTS • Our ambition is for Big Yellow to be fully aligned to the UK Government’s commitments to sustainability by addressing our emissions by 2050, at the latest • Our two 2030 targets are int
Slide 30: Solar Generation
Solar Generation BIG YELLOW GROUP HALF YEAR RESULTS Solar Generation on the Big Yellow Estate 20 9,000 Solar Retrofit Programme 18 8,000 • 12 additional stores been identified for installation in 24/25 16 7,000 • Structural surveys have been conducted on a further eight stores for future solar insta
Slide 31: Science-Based Targets
Science-Based Targets BIG YELLOW GROUP HALF YEAR RESULTS • Our Science-Based Targets are fully verified. These are as follows: − Big Yellow commits to reduce absolute Scope 1 and 2 GHG emissions 70% by FYE2032 from a FY2019-20 base year − Big Yellow also commits to reduce Scope 3 GHG emissions from
Slide 32: SBT Trajectories And Actions
SBT Trajectories And Actions BIG YELLOW GROUP HALF YEAR RESULTS SBT Scope 1&2 trajectory Scope 1&2 3500 • We are tracking ahead of our 3000 2032 target. We will continue to 2500 remove gas from the estate and install solar to reduce our reliance 2000 on grid bought power 1500 • A new energy efficien
Slide 33: Social
Social BIG YELLOW GROUP HALF YEAR RESULTS • 8 successful 12-week work placements through our charity partners: − After completing a successful extended work placement in our Gypsy Corner store, a young lady from Working Chance has progressed to a permanent role − After completing a successful extend
Slide 34: Social Marketing
Social Marketing BIG YELLOW GROUP HALF YEAR RESULTS Successful marketing engagement with our Charity Partners APPENDIX 34 34
Slide 35: Governance, ESG Investor Benchmarks, Standards and Campaigns
Governance, ESG Investor Benchmarks, Standards and Campaigns BIG YELLOW GROUP HALF YEAR RESULTS BENCHMARKS AND STANDARDS CDP (Carbon Disclosure Project) • Big Yellow participated since 2012 CAMPAIGNS • Achieved CDP and SER score of A- in 2023 • Official supporter of the TCFD since September 2021 GRE
Slide 36: Marketing and Sales Update
Marketing and Sales Update BIG YELLOW GROUP HALF YEAR RESULTS • Big Yellow has market-leading brand awareness four times higher than the next nearest competitor • Continued investment in digital to drive prospect growth – key to our success with 93% of prospects online, 66% of visits from mobile dev
Slide 37: The Importance of the Brand
The Importance of the Brand BIG YELLOW GROUP HALF YEAR RESULTS • Self storage is a consumer-facing business for both domestic and small business markets • Done right, brand sits at the heart of a business and drives its performance • Self storage is an immature market with 60% first time users – the
Slide 38: Research of Brand and Market Awareness
Research of Brand and Market Awareness BIG YELLOW GROUP HALF YEAR RESULTS UNPROMPTED BRAND AWARENESS • Big Yellow commissioned YouGov survey in May 2024 • Measures unprompted brand awareness • 5,101 adults sampled APPENDIX • Statistically selected and weighted sample that represents a sample of the
Slide 39: High Brand Awareness = High Online Market Share
High Brand Awareness = High Online Market Share BIG YELLOW GROUP HALF YEAR RESULTS • 93% of our prospects come from our digital platforms. 64% of web visits are from smartphones with the balance from laptops and desktop PCs (April 2024 to September 2024) APPENDIX • A significant proportion of these
Slide 40: Customer Insights
Customer Insights BIG YELLOW GROUP HALF YEAR RESULTS • Wide-ranging demographic and domestic customer base; extended families, couples, singles, renters, students, downsizers, space constrained home dwellers • The majority of our customers are overrepresented in ACORN profiled groups and types such
Slide 41: Social Media, PR and Display
Social Media, PR and Display BIG YELLOW GROUP HALF YEAR RESULTS • Pre-roll advertising across YouTube, premium apps and network advertising features heavily in our digital marketing mix, targeting those in market • ESG focussed social media content on LinkedIn, Instagram and Facebook • LinkedIn spot
Slide 42: National Customers
National Customers BIG YELLOW GROUP HALF YEAR RESULTS • Businesses can store at multiple locations nationwide through one dedicated point of contact APPENDIX • Our extended network of third-party providers enables customers to have a single self storage supplier relationship • We provide a range of
Slide 43: Reasons for Using Self Storage
Reasons for Using Self Storage BIG YELLOW GROUP HALF YEAR RESULTS % of customer numbers by type Reasons people used our storage who moved-in during the six months 81% Travelling 6% Domestic 6% 81% Student storage 18% 19% 19% Business 19% Other 11% 11% Residential Rental Sector 16% % of store space o
Slide 44: Length of Stay of Customers Vacating in Rolling 12 Months
BIG YELLOW GROUP Length of Stay of Customers Vacating in Rolling 12 Months to 30 September HALF YEAR RESULTS 2024 9.9 2023 9.4 2022 8.9 2021 8.0 2020 9.2 2019 8.6 APPENDIX 2018 7.9 2017 7.8 2016 7.3 Months 2015 6.9 2014 6.9 2013 7.3 2012 7.0 2011 7.2 2010 7.4 2009 8.6 2008 7.7 0 2 4 6 8 10 12 44 44
Slide 45: Customer Average Length of Stay
Customer Average Length of Stay BIG YELLOW GROUP HALF YEAR RESULTS AS AT NUMBER OF MONTHS 30/09/2024 0-3 YEARS >3 YEARS ARMADILLO ALL STORES ALL STORES BIG YELLOW BIG YELLOW 30/09/2023 No of Stores 10 75 24 109 109 Business Existing 10.8 38.6 40.9 36.7 36.1 APPENDIX Vacated 4.6 12.6 15.5 12.9 12.5 T
Slide 46: Track Record Since 2007-8
Track Record Since 2007-8 BIG YELLOW GROUP HALF YEAR RESULTS Occupancy and average rate Revenue (£m) 250 90% £36.00 80% £34.00 70% 200 £32.00 60% CAGR - 8% 50% £30.00 150 40% £28.00 30% £26.00 100 20% 10% £24.00 50 APPENDIX 0% £22.00 0 Occupancy (%) Average net rent (£ per sq ft) 2008200920102011201
Slide 47: Big Yellow Relative TSR Performance
Big Yellow Relative TSR Performance BIG YELLOW GROUP HALF YEAR RESULTS Big Yellow FTSE All Share FTSE 350 Real Estate 3,000 2,500 APPENDIX 2,172.6% 2,000 (13.7% p.a.) 1,500 1,000 500 252.3% (5.3% p.a.) 209.8% (4.7% p.a.) 0 2000 2002 2005 2007 2010 2012 2014 2017 2019 2022 2024 Source: Datastream as
Slide 48: Big Yellow Portfolio
Slough Famham Road, July 2024 Kings Cross, June 2023 Harrow, September 2022 MLA - 65,000 sqft MLA -103,000sqft MLA - 82000sq ft Kingston North, September 2022 Aberdeen, June 2022 Hove, March 2022 Hayes, January 2022 Uxbridge, June 2021 MLA - 56,000 sqft MLA - 54000 sqft MLA - 58,000 sqft MLA - 73,00
Slide 49: Big Yellow Portfolio
oS a frome tt Guildford Central, March 2018 Twickenham 2, April 2016 Nine Elms, April 2016 Cambridge, January 2016 Enfield, April 2015 MLA - 55,000 sq ft MLA - 22,000 sq ft MLA - 65,000 sq ft MLA - 69.000 sqft MLA - 60,000 sq ft —— Oxtord 2, July 2014 Gypsy Corner, April 2014 Chiswick, April 2012 Ne
Slide 50: Big Yellow Portfolio
Sheffield Hillsborough, Fulham, March 2008 Balham, March 2008 Barking, November 2007 October 2008 MLA - 60,000 sq ft MLA - 138,000 sq ft MLA - 61,000 sq ft MLA - 64,000 sq ft = Ealing Southall, November 2007 Sutton, July 2007 Edmonton, October 2006 Kingston, August 2006 Bristol Ashton Gate, July 200
Slide 51: Big Yellow Portfolio
Finchley North, March 2003 ‘MLA - 62,000 sq ft tcc New Malden, May 2002 MLA-81000sqft Dagenham, July 2001 MLA - 51,000 sq ft Milton Keynes, September 2000 MLA - 60,000sq ft = a West Norwood, January 2003 MLA - 57000sq ft Hounslow, December 2001 MLA - 54,000sq ft Wandsworth, April 2001 MLA - 72,000 s
Slide 52: Armadillo Portfolio
ee (kad a | 5 4 Canterbury Daventry Derby Dundee MLA - 35,00 MLA - 35,000 sa ft MLA - 43,000 sq ft MLA- 39.000 MLA - 34,000 sa ft Liverpool Bootle Liverpool South Macclesfield MLA- 3,000 000 sx MLA - 63,000 sq ft Peterborough Plymouth Sheffield Parkway Sheffield West Bar MLA - 50,000 sq ft cd MLA -
Slide 53: Disclaimer
Disclaimer BIG YELLOW GROUP FULL YEAR RESULTS This presentation contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materi