U.K. self-storage operator Big Yellow Group PLC released interim operating-performance results for the third quarter of its 2017 fiscal year, which ended Dec. 31. The company reported same-store revenue of £26.9 million for the period, up 5 percent from a year ago. Revenue for just the company’s Armadillo Self Storage portfolio was £2.6 million, a 17 percent year-over-year increase, according to a press release.
Occupancy across the company’s portfolio of 73 locations closed at 75.5 percent for the period, compared to 73.6 percent the previous year. Same-store occupancy was 76 percent, up from 73.6 percent a year ago.
The third quarter is typically among the company’s weakest each year, the release stated. "After a weaker October, occupancy performance improved in November and December, delivering a similar performance to last year, with a loss of 137,000 square feet compared to a loss of 138,000 square feet in the prior year,” CEO James Gibson said. “Average year-on-year rate growth slowed to 2.3 percent in the quarter compared to 2.8 percent for the first half of the year.”
Big Yellow began construction in December on a 55,000-square-foot self-storage facility in Guildford, England, which is expected to open in early 2018, In addition, the company has received planning approval for a 25,000-square-foot expansion of its Wandsworth, England, location. That project is expected to be complete in spring 2018.
“As we referred to in our half-year results, significant uncertainties remain around the U.K.'s economic outlook,” Gibson noted. “That said, we believe new supply in our key areas of operation, particularly London, will remain constrained over the medium to longer term and that the business is well-placed to face down most challenges.”
Big Yellow Group operates 89 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. Its total portfolio comprises 5.3 million square feet.