U.K. self-storage operator Big Yellow Group PLC released operating-performance results for the fourth quarter and its 2014 fiscal year, which ended March 31. The company reported revenue of £17.7 million for its 54 wholly owned self-storage locations, up 11 percent from the same quarter a year ago. For the year, the company reported revenue of £72.2 million, a 4 percent increase from 2013. Its adjusted pretax profit was £29.2 million, a 15 percent increase from last year.
Year-end occupancy for Big Yellow’s wholly owned facilities was 69.8 percent, up 8 percent year over year but down slightly from 70.5 percent in September. Occupancy increased 2.1 percent during the quarter.
Net rent per square foot was £26.15 for the year, an increase of 6 percent from 2013. Revenue per available square foot was £20.64 for 2014, a 4 percent increase year over year.
"In an improving economy, we have delivered occupancy, revenue and cash-flow growth for the fifth year in a row following the deep recession in 2008 and 2009,” said Nicholas Vetch, executive chairman. “This performance illustrates the resilience of the Big Yellow business model and the self-storage market more generally.”
In April, the company opened a 70,000-square-foot Big Yellow facility in West London and acquired a 10-property portfolio from Armadillo Self Storage through a joint venture with an Australian consortium.
“New housing developments in London are at a multi-decade high, and as completions increase, this should translate into more housing transactions,” Vetch said. “Land in London and the Southeast continues to be increasingly scarce for non-residential development, which should benefit Big Yellow, as new supply of self storage facilities will remain constrained.”
The company raised its final dividend to 8.4 pence per share, a 40 percent increase from 6 pence last year.
Big Yellow Group operates 77 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo Self Storage brand names, with most concentrated in Greater London. The portfolio comprises 4.6 million square feet.