Big Yellow profit plunges 89%
Big Yellow has reported an 89% fall in annual profit.
The self-storage firm said pretax profit for the year to the end of March had fallen to £75.3m, against £698.9m the previous year.
Valuation was the culprit for much of the swing, owing to a £57.5m reduction in the value of its industrial property and land without self-storage planning in the development pipeline, “reflective of the new financing conditions and wider market environment for land”. The overall portfolio value fell by £30m.
Big Yellow has reported an 89% fall in annual profit.
The self-storage firm said pretax profit for the year to the end of March had fallen to £75.3m, against £698.9m the previous year.
Valuation was the culprit for much of the swing, owing to a £57.5m reduction in the value of its industrial property and land without self-storage planning in the development pipeline, “reflective of the new financing conditions and wider market environment for land”. The overall portfolio value fell by £30m.
The company said: “There was a very significant increase in the valuation of our investment portfolio last year, and this year the valuations have remained relatively flat, with an increase of 1% on the open store portfolio.”
Performance also slipped, with occupancy at its 108 sites falling by 58,000 sq ft, with levels relatively muted since January.
However, revenue grew by 10% to £188.8m, up from £171.3m, thanks to a hike in rents.
The Times (£)
