Shares digital

When Philip Burks, a founders of self-storage specialists Big Yellow (BYG), sold 1.6 million shares, his wife Davinia acquired 1 million. We are assured these deals do not herald a matrimonial disagreement but took place for tax planning reasons.

The group is rapidly expanding. At the end of December it had opened 45 stores. More importantly it has 28 sites in the development pipeline, of which 12 have planning permission. Although the company recently failed with a planning appeal for its Blackheath site, it is usually successful with its planning applications.

The company had net debt of £261 million at the end of December but has substantial undrawn facilities and freehold property assets much greater than its borrowings.

The group’s last trading update confirmed that the market was ‘more challenging’. Demand for self-storage facilities is affected by the level of activity in the housing market.

The shares peaked at 705p in 2006, when the market became euphoric at the prospects of the group converting to a Reit. But life as a Reit has disappointed the bulls. However, the iconic brand is still favoured by analysts, especially as the shares sell at a modest discount to NAV of 425p.

Shares says: Long-term prospects are encouraging and the shares should continue to do well.

The writer holds shares in this company