Big Yellow’s revenue rises on occupancy gains

Self-storage provider Big Yellow Group has posted a 6.6% rise in like-for-like revenue for the quarter ending 31 December, driven by occupancy gains. Like-for-like revenue reached £33.7m for the quarter, with total revenue for the period up 7.4% to £34.7m compared with the same quarter in 2019. Closing occupancy was 85.7% on a like-for-like basis, up 5.8% on the previous year. Average achieved net rent per sq ft tallied £28.01, marginally down on £28.03 in the previous year. During the period the group exchanged contracts to buy a 5.6-acre site in Staines for a £44.6m development. This will comprise a 65,400 sq ft self-storage centre and 98,500 sq ft of warehousing. The self-storage provider said construction of its stores in Uxbridge and Hove is on schedule and they are expected to open in 2021 and 2022 respectively. Planning discussions continue on other development sites. James Gibson, chief executive, said the main driver of its occupancy performance has been its domestic customer base, although business demand has “also continued to improve”. He added: “Although it is early in the fourth quarter, we are continuing to see growth in year-on-year prospects and occupancy, however as we have always stated, our visibility of future demand is limited to two to four weeks. “We remain confident of the longer-term growth prospects of our business; the principal drivers being revenue growth from the existing portfolio and targeted expansion focussed principally in our core area of London and its commuter towns, where new supply remains constrained.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette