U.K. self-storage operator Big Yellow Group PLC released its operating-performance results for the third quarter of its fiscal year, which ended Dec. 31. The company reported revenue of £17.9 million for its 54 wholly owned locations, up 6.5 percent from the same quarter a year ago. Revenue was down 2.7 percent from the previous quarter.
Occupancy for the wholly owned facilities was 67.7 percent during the quarter, up 4.4 percent year over year but falling from 70.5 percent the previous quarter. Company officials attributed the quarterly decline to the period being seasonally weaker than other times during the year. Move-ins were up 14 percent during the quarter.
Net rent per square foot was £25.73, an increase of 4.4 percent from the quarter ending March 31. Average net rent per square foot during the quarter was £25.61 compared to £25.43 for the same quarter last year. Revenue per available square foot was £20.78 during the quarter, a 7.2 percent increase year over year.
"The growth in rental yield we reported at the interim stage has continued through this quarter, with net rent per square foot increasing by 4.3 percent over the nine months, said James Gibson, CEO. This occupancy and yield performance has resulted in a pleasing return to year-on-year revenue growth in the quarter of 6.5 percent.
The company also reported progress on the development of its 70,000-square-foot facility at Gypsy Corner in West London. The external shell of the facility has been completed, and work has begun on the interior. The location is scheduled to open in April, officials said.
Within our core market of London, we note the very significant number of large-scale residential developments currently being announced on a daily basis, Gibson said. Although not all these projects will get built, we suspect that the prospective increase in supply will dampen down house price inflation in the medium term. The corollary is that we might expect housing activity to increase, and we can imagine that this might not be unhelpful to Big Yellow.
Big Yellow Group operates 66 self-storage locations in the United Kingdom under the Big Yellow Self Storage brand name, with most concentrated in Greater London. The portfolio comprises 4.2 million square feet.
- Big Yellow Group: Interim Management Statement