UK Self-Storage Operator Big Yellow Releases Financial Results for 6 Months Ended Sept. 30

U.K. self-storage operator Big Yellow Group PLC released financial results for the first half of its 2024 fiscal year, which ended on Sept. 30. The business has remained resilient despite challenging conditions marked by subdued trading conditions, expense pressures and rising debt costs while the issuance of new equity has recently diluted earnings per share, according to a press release.

The company reported same-store revenue of £101 million, up 3% year over year. Total revenue for the period was £103 million, a 3% increase from 2023. Same-store occupancy was 80.9%, down from 82.4% the prior year, while average rent per square foot increased 4% to £34.77, the release stated.

Big Yellow added to its portfolio during the period, opening a facility in Slough, England, its first net-zero-energy property. Located on Slough Farnham Road, it comprises 65,000 square feet. The company's pipeline comprises 13 projects in various stages of development, including 10 in London, that’ll comprise approximately 1 million square feet. Of those, 10 have received planning approval, according to the release.

"Although it is pleasing that we expect to return to earnings per share growth in the second half, we have always been more focused on the longer term. We will grow revenue through incrementally increasing occupancy levels from our existing store platform, alongside driving efficiencies across the business through investment in automation,” said Nicholas Vetch, executive chairman. “Furthermore, and critically, we are fully committed to capturing the opportunity of the revenue and earnings growth from our store pipeline, most of which is now in the construction phase. In addition, we expect to see more opportunities to acquire land and replenish our development pipeline in our core areas of operation."

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Founded in 1998, Big Yellow Group operates 109 self-storage locations in the U.K. under the Big Yellow Self Storage and Armadillo brand names, with most concentrated in Greater London and Southeast England. Its total portfolio comprises 6.4 million rentable square feet.

Source: Big Yellow, Results For The Six Months Ended 30 September 2024