Big Yellow Group Plc · LSE:BYG
Big Yellow — FY2024 Earnings Presentation
52 slides from Big Yellow's earnings presentation, 2024
Slide 1: Financial results for the year ended 31 March 2024
Big Yellow Group PLC Financial results for the year ended 31 March 2024
Slide 2: Our Investment Case
Our Investment Case BIG YELLOW GROUP FULL 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 3: Key Financial Metrics
Key Financial Metrics BIG YELLOW GROUP FULL YEAR RESULTS CATEGORY 2024 2023 CHANGE Revenue £199.6 million £188.8 million 6% Like-For-Like Store Revenue £193.5 million £185.6 million 4% OVERVIEW Store EBITDA £143.0 million £134.0 million 7% Cash Flow From Operating Activities (After Net Finance Costs
Slide 4: Key Operational Metrics
Key Operational Metrics BIG YELLOW GROUP FULL YEAR RESULTS CATEGORY 2024 2023 CHANGE Number of Stores 109 108 Store Maximum Lettable Area 6,419,000 6,292,000 2% OVERVIEW Closing Occupancy (Sq Ft) 5,029,000 5,088,000 (1%) Closing Occupancy (%) 78.3% 80.9% (2.6 ppts) Closing occupancy Like-For-Like Bi
Slide 5: Highlights
Highlights BIG YELLOW GROUP FULL YEAR RESULTS • Revenue growth of 6%, with like-for-like store revenue up by 4%, driven by increases in average achieved rents • Big Yellow store like-for-like occupancy decrease of 2.3 ppts to 80.9% (March 2023: 83.2%). Closing occupancy, reflecting the additional ca
Slide 6: Highlights - Investment In New Capacity
BIG YELLOW GROUP Highlights - Investment In New Capacity FULL YEAR RESULTS • £107 million (net of expenses) raised by way of a placing of 6.3% of the Company’s issued share capital to fund the build out of the development pipeline OVERVIEW • Kings Cross opening and one extension added 127,000 sq ft
Slide 7: Operations Update
Operations Update BIG YELLOW GROUP FULL YEAR RESULTS • AI and automation used throughout the business leading to improved efficiencies and productivity – benefit to store headcount, saving £0.4 million annualised. Head office headcount is down slightly on four years’ ago, with revenue up 54% • Marke
Slide 8: Monthly Activity
Monthly Activity BIG YELLOW GROUP FULL 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 2022 2022 8,000 7,000 7,000 6,000 2023 2023 6,000 5,000 2024 5,000 2024 4,000 4,000 OVERVIEW Monthly Changes in Occupancy • Prospect numbers more
Slide 9: Financial Review
FINANCIAL REVIEW Harrow, London, September 2022
Slide 10: Portfolio Summary
Portfolio Summary BIG YELLOW GROUP FULL YEAR RESULTS • Like-for-like Big Yellow closing occupancy down 2.3 ppts to 80.9% FINANCIAL REVIEW • Closing net rent up 5.1% to £34.14, average rate up 7.5% • Like-for-like store revenue up 4% • Store EBITDA margin up to 72.5% (2023: 71.8%) • Absorption of ste
Slide 11: Portfolio Summary
Portfolio Summary BIG YELLOW GROUP FULL YEAR RESULTS MARCH 2024 MARCH 2023 BIG YELLOW BIG YELLOW BIG YELLOW BIG YELLOW TOTAL TOTAL ESTABLISHED DEVELOPING ARMADILLO TOTAL ESTABLISHED DEVELOPING ARMADILLO TOTAL BIG YELLOW BIG YELLOW > 3 YEARS < 3 YEARS > 3 YEARS < 3 YEARS Number of stores 76 9 85 24 1
Slide 12: Proforma Open Stores Analysis for the year ended 31 March 2024
BIG YELLOW GROUP Proforma Open Stores Analysis for the year ended 31 March 2024 – 109 Stores FULL YEAR RESULTS £000 Self Storage Income 1,589 Enhanced Liability Service Income 162 Contents protection cover FINANCIAL Packing Materials Income 26 Other Income From Storage Customers 19 Includes out-of-h
Slide 13: Rental Growth Analysis
Rental Growth Analysis BIG YELLOW GROUP FULL YEAR RESULTS NET RENT PER SQ FT GROWTH NET RENT PER SQ FT GROWTH AVERAGE OCCUPANCY FROM FROM IN THE YEAR APRIL 2023 TO MARCH 2024 APRIL 2022 TO MARCH 2023 70% to 85% 5.4% 8.3% FINANCIAL REVIEW 85% to 90% 5.5% 8.7% Above 90% 6.9% 9.7% • Table shows the cha
Slide 14: Store Operating Expenses
Store Operating Expenses BIG YELLOW GROUP FULL YEAR RESULTS YEAR YEAR % OF STORE ENDED ENDED OPERATING • New stores account for an extra £1.5 million of operating expense CATEGORY CHANGE 31.03.24 31.03.23 COSTS IN £000 £000 YEAR • Cost of sales down £0.7 million, switch in June 2022 to selling Enhan
Slide 15: Consolidated Income Statement
Consolidated Income Statement BIG YELLOW GROUP FULL YEAR RESULTS YEAR YEAR ENDED ENDED 31.03.24 31.03.23 £000 £000 Revenue 199.6 188.8 • Revenue up 6%, like-for-like store revenue up 4%, driven by an Cost of Sales (56,0) (54.3) increase in average achieved net rent, offset by slight fall in average
Slide 16: Adjusted PBT Bridge
Adjusted PBT Bridge BIG YELLOW GROUP FULL YEAR RESULTS Increase in Increase in Decrease in Increase in Increase in gross admin other net capitalised profit expenses operating interest interest income payable FINANCIAL £9.1m (£0.7m) (£0.4m) (£7.2m) £ 0.5m APPENDIX REVIEW £106.0m £107.3m Adjusted Adju
Slide 17: Cash Flow And Net Debt Movement
Cash Flow And Net Debt Movement BIG YELLOW GROUP FULL YEAR RESULTS YEAR ENDED YEAR ENDED 31.03.24 31.03.23 £m £m Opening Net Debt (486.6) (411.8) Cash Generated from Operations 135.1 126.2 Net Finance Costs (24.0) (16.5) • Operating cash flow after net finance costs and pre-working FINANCIAL Interes
Slide 18: Capital Structure
Capital Structure BIG YELLOW GROUP FULL YEAR RESULTS 31.03.24 31.03.23 FINANCIAL Net Debt / Gross Property Assets 13% 18% • The Group’s gross property assets are £2.9 billion with an adjusted NAV per share of £12.96 APPENDIX Net Debt / Adjusted Net Assets 15% 21% • The Group maintains a flexible str
Slide 19: Debt Facilities
Debt Facilities BIG YELLOW GROUP FULL YEAR RESULTS AVERAGE 31.03.24 DEBT EXPIRY FACILITY INTEREST DRAWN COST FINANCIAL Aviva Loan September 2028 £155.8m £155.8m 3.3% M&G Loan September 2029 £120m £120m 6.9% APPENDIX Revolving Bank Facility (Lloyds, HSBC, December 2026 £300m £119m 6.4% REVIEW Barclay
Slide 20: Property Review
PROPERTY REVIEW Manchester, May 2019 20
Slide 21: New Site Development
New Site Development BIG YELLOW GROUP FULL YEAR RESULTS • Our 103,000 sq ft Kings Cross store opened in June 2023. This year’s trading has been very encouraging, with the store adding 40,000 sq ft of occupancy by 31 March 2024, and reaching breakeven at the EBITDA level after four months • Purchased
Slide 22: Kings Cross
Kings Cross BIG YELLOW GROUP FULL YEAR RESULTS PROPERTY REVIEW 22 22
Slide 23: Development Pipeline With Planning
Development Pipeline With Planning BIG YELLOW GROUP FULL YEAR RESULTS ANTICIPATED CAPACITY SITE PROMINENT LOCATION STATUS SQ FT Replacement for existing Slough Farnham Road Store opening in July 2024 leasehold store of a similar size PROPERTY REVIEW Construction to commence in June 2024 with a view
Slide 24: Development Pipeline Without Planning
BIG YELLOW GROUP Development Pipeline Without Planning FULL YEAR RESULTS ANTICIPATED CAPACITY SITE PROMINENT LOCATION STATUS SQ FT Kentish Town, London Regis Road Site acquired in April 2021. Planning appeal 68,000 PROPERTY REVIEW submitted and due to be heard in May 2024 Site acquired in June 2021.
Slide 25: Our Portfolio
Our Portfolio BIG YELLOW GROUP FULL YEAR RESULTS KEY 85 Big Yellow stores (47 in London) 14 Big Yellow stores under development (9 in London) 24 Armadillo stores (1 in London) Outside London 66 stores and sites London 57 stores and sites PROPERTY REVIEW 25 25
Slide 26: Summary
Summary BIG YELLOW GROUP FULL YEAR RESULTS • A resilient performance in a year of transition to a higher interest cost environment; we consider the business to be at peak interest cost, with 50% of our debt variable • We will continue to innovate and invest in our people and culture, our brands, ope
Slide 27: Appendix
APPENDIX Hove, September 2022
Slide 28: Sustainability Update
Sustainability Update BIG YELLOW GROUP FULL 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 FULL 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 FULL YEAR RESULTS Solar Retrofit Programme Solar generation on the Big Yellow estate • 16 stores retrofitted with solar panels in 23/24 20 7000 • Phase 3 is almost complete with just under 2MWp of 18 6000 capacity installed 16 5000 • On top of this Kings Cross was b
Slide 31: Science-Based Targets
Science-Based Targets BIG YELLOW GROUP FULL 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 FULL YEAR RESULTS SBT Scope 1&2 trajectory 3500 Scope 3 3000 • We are in the process of calculating our Scope 3 2500 footprint, which we will report in due course • This comprises emissions calculations using our spend 2000 data from our supply chain and
Slide 33: Social
Social BIG YELLOW GROUP FULL YEAR RESULTS • 12 successful 12-week work placements through our charity partners and local colleges: − After completing a successful extended work placement in our Cardiff store, a young man with Down’s Syndrome has progressed to a permanent role. − Two female refugees
Slide 34: Governance, ESG Investor Benchmarks, Standards and Campaigns
Governance, ESG Investor Benchmarks, Standards and Campaigns BIG YELLOW GROUP FULL 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 35: Marketing And Sales Update
Marketing And Sales Update BIG YELLOW GROUP FULL 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 36: The Importance Of The Brand
The Importance Of The Brand BIG YELLOW GROUP FULL 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 37: Research Of Brand And Market Awareness
Research Of Brand And Market Awareness BIG YELLOW GROUP FULL YEAR RESULTS UNPROMPTED BRAND AWARENESS • Big Yellow commissioned YouGov survey in May 2024 • Measures unprompted brand awareness APPENDIX • 5,101 adults sample • Statistically selected and weighted sample that represents a sample of the d
Slide 38: High Brand Awareness = High Online Market Share
High Brand Awareness = High Online Market Share BIG YELLOW GROUP FULL YEAR RESULTS • 93% of our prospects come from our digital platforms. 66% of web visits are from smartphones with the balance from laptops and desktop PCs (April 2023 to March 2024) APPENDIX • A significant proportion of these web
Slide 39: Customer Insights
Customer Insights BIG YELLOW GROUP FULL YEAR RESULTS • Wide-ranging demographic and domestic customer base; extended families, couples, singles, renters, students, downsizers, space constrained home dwellers • Over 70% of our customers are in the top 3 ACORN categories; Affluent Achievers, Rising Pr
Slide 40: Social Media, PR And Display
Social Media, PR And Display BIG YELLOW GROUP FULL YEAR RESULTS • Targeted YouTube advertising to domestic and business audiences in need of self storage • ESG focussed social media content on Twitter, Instagram and Facebook • LinkedIn spotlights our company culture, employee development, recruitmen
Slide 41: Reasons For Using Self Storage
Reasons For Using Self Storage BIG YELLOW GROUP FULL YEAR RESULTS % of customer numbers by type Reasons people used our storage who moved-in during the six months 80% Domestic 79% 20% Travelling 6% Business 6% 21% Student storage 12% 12% % of store space occupied by customer type APPENDIX Other 13%
Slide 42: National Customers
National Customers BIG YELLOW GROUP FULL 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: Length Of Stay (Months) Of Customers Vacating In Year
BIG YELLOW GROUP Length Of Stay (Months) Of Customers Vacating In Year to 31 March 2024 FULL YEAR RESULTS 2024 9.9 2023 9.1 2022 8.4 2021 9.2 2020 8.5 2019 8.4 APPENDIX 2018 7.8 2017 7.5 2016 7.5 2015 7.2 2014 7.6 2013 7.0 2012 7.2 2011 7.1 2010 8.1 2009 8.6 2008 7.4 43 43
Slide 44: Customer Average Length Of Stay
Customer Average Length Of Stay BIG YELLOW GROUP FULL YEAR RESULTS AS AT NUMBER OF MONTHS 31/03/2024 0-3 YEARS >3 YEARS BIG ARMADILLO ALL STORES ALL STORES YELLOW 31/03/2023 No of Stores 9 76 84 24 109 108 Business Existing 12.4 39.2 36.9 40.3 37.1 35.1 APPENDIX Vacated 5.3 12.5 12.3 15.3 12.4 12.4
Slide 45: Track Record Since 2007-8
Track Record Since 2007-8 BIG YELLOW GROUP FULL YEAR RESULTS Revenue (£m) Occupancy and average rate 250 90% £36.00 80% £34.00 70% 200 £32.00 60% CAGR - 8% 50% £30.00 150 40% £28.00 30% 100 £26.00 20% 10% £24.00 50 APPENDIX 0% £22.00 0 2008200920102011201220132014201520162017201820192020202120222023
Slide 46: Big Yellow Relative TSR Performance
Big Yellow Relative TSR Performance BIG YELLOW GROUP FULL YEAR RESULTS Big Yellow FTSE All Share FTSE 350 Real Estate 3,000 2,500 2,000 APPENDIX 1,770.4% (13.6% p.a.) 1,500 1,000 500 232.1% (5.4% p.a.) 191.2% (4.8% p.a.) 0 2000 2002 2005 2007 2009 2012 2014 2017 2019 2021 2024 Source: Datastream as
Slide 47: Big Yellow Portfolio
Kings Cross, June 2023 Harrow, September 2022 MLA - 10% ft MLA - 82000 sq ft MLA - 560 Hove, March 2022 MLA - 58000 sq ft Q (7) < m c ° = v 8 sa nm ° —) ° = 5 Bracknell, September 2020 Camberwell, July 2020 Manchester, May 2019 Wapping, July 2018 Guildford Central, March 2018 MLA ~59000 sq ft MLA -
Slide 48: Big Yellow Portfolio
[i cca i a 2 Twickenham 2, April 2016 Nine Elms, April 2016 Cambildge, January 2016 Enfield, April 2015 ‘Chester, February 2015 Oxtord 2, July 2014 MLA - 22000 sqft MLA -65,000 sqtt MLA ~60000 sqft MLA ~ 60,000 sqtt MLA-€,0005q ft MIA - 35,000sqit Gypsy Corner, April 2014 Chiswick, April 2012 ~~ Now
Slide 49: Big Yellow Portfolio
——— 6) lg cx) (num i Reception id — y i Eas fee | : ki ST i _ L = Kennington, May 2008 Merton, March 2008 Fulham, March 2008 Balham, March 2008 Barking, November 2007 Ealing Southall, November 2007 MLA - 66,000 sqft MILA - 70000 sq ft MLA ~ 138000 sq ft MLA - 61000 sqft MLA - 64000 sq ft MLA - 57000
Slide 50: Big Yellow Portfolio
=: = = 4 «| West Norwood, January 2003 Colchester, December 2002 MLA - 54000sq ft : fo ae Bow, November 2002 Brighton, October 2002 Guildford Stytield, June 2002 New Malden, May 2002 MLA - 132,000 sq ft MLA - 59000 sq ft MLA - 55,000 sq ft MLA - 81000 sq tt MLA - 57,000sq ft Iiford, November 2001 Ca
Slide 51: Armadillo Portfolio
i SSorace bei ; eT 35 Z y Daventry Derby Dundee Exeter MLA - 35,000 sa ft MLA ~ 43,000 sqft MLA-~ 39.000 MLA - 24,000 Liverpool Bootle Liverpool South Macclesfield MLA- 3,000 MLA - 50,000 sq ft MLA - 63,000 sq ft Morecambe Peterborough Plymouth Shetfield Parkway Shetfield West Bar MLA - 50,000 sq it
Slide 52: 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