LONDON - Big Yellow Group (LON:BYG) PLC, a leading UK self-storage provider, reported a modest increase in revenue and occupancy rates for its third quarter ended December 31, 2024, despite facing a seasonally weaker period and external economic pressures.
The company's total revenue for the quarter rose by 2% to £51.4 million, up from £50.5 million in the same quarter the previous year. Year-to-date revenue also saw a 3% increase, reaching £154.4 million compared to £150.1 million for the same period in the prior year.
Occupancy across the Group's 109 stores declined by 180,000 square feet during the quarter, which was an improvement over the 249,000 square feet loss experienced in the previous year's third quarter. Closing occupancy inched up to 77.7%, a marginal increase from 77.6% in the prior year.
The average achieved net rent per square foot for the quarter was £34.87, marking a 3% increase from the same quarter last year. For the year to date, the average net rent per square foot grew by 4%.
Despite these gains, like-for-like store revenue, which excludes the impact of the recently opened Kings Cross store, was up only 2% for the quarter and 3% for the year to date. Like-for-like closing occupancy saw a slight decline of 0.3 percentage points compared to the same time last year.
Jim Gibson, Chief Executive Officer of Big Yellow (OTC:YELLQ), acknowledged the challenges posed by external factors, including policy changes, but expressed confidence in the business's resilience. He noted that adjusted earnings per share (eps) have returned to growth for the first nine months of the financial year and are expected to show further modest improvement by the year's end.
The company also highlighted its ongoing investments in automation, which have contributed to a reduction in store headcount and helped mitigate the impact of increased National Insurance costs announced in the budget. Big Yellow plans to invest approximately £176 million over the next three years to develop nine new stores, which are expected to significantly contribute to future earnings growth.
Big Yellow remains committed to maintaining its net debt to EBITDA ratio within the target range of 3 to 4 times. The company's statement indicates that it is well-positioned to fund its expansion from existing resources while keeping its debt levels in check.
This article is based on a press release statement from Big Yellow Group PLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.