Big Yellow increases 2014 interim dividend by 60%

DividendMax Ltd.

Big Yellow increases 2014 interim dividend by 60%

Highlights

Revenue performance in line with guidance following introduction of VAT on 1 October 2012

Net rent per sq ft increased by 2.9% from 1 April 2013

Adjusted profit before tax up 2% to £14.2 million

60% increase in interim dividend, in line with new dividend policy to distribute 80% of full year adjusted earnings per share

Reduction of Group net debt by £1.8 million to £228.6 million

Prominent 70,000 sq ft MLA Gypsy Corner store on A40 in West London is under construction and expected to open 1 April 2014 on time and on budget

Seasonal loss of occupancy in seven weeks since period end significantly down on last year at 32,000 sq ft (2012: loss of 91,000 sq ft)

Revenue in October 2013 up 5.1% from October 2012

Commenting, Nicholas Vetch, Executive Chairman, said:

"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. We achieved like for like revenue growth of 5.1% in October (the first month following the anniversary of the VAT introduction), demonstrating that the VAT impact is firmly in the past and we are now returning to more normal growth.

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.

We believe that the Company will continue to deliver attractive sustainable returns, on a relatively low risk and limited volatility basis on a long term view. The total returns set out in the statement well illustrate the power of compounding. 

Our confidence in this outlook is reinforced by the power of our brand, our market leading operating platform and critically in our exposure to London and the South East."

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