Big Yellow Group (LSE:BYG) saw its stock increase by 2.4% on Thursday following the release of its first-quarter update, which showed higher occupancy rates and steady revenue growth.
The UK self-storage company reported a closing occupancy rate of 79.4%, up 0.7 percentage points from 78.7% at the end of March, though still 2.4 points below the June 2024 level.
Net closing rent reached £35.75 per square foot, marking a 5% year-on-year increase, while quarterly revenue grew by 3% compared to the same period last year.
Big Yellow has introduced cost-saving initiatives, including greater automation to reduce staffing levels and expenses without compromising customer service. The firm also benefits from investments in solar energy and energy efficiency, alongside lower property tax rates.
Store operating costs on a like-for-like basis remained unchanged from the previous year’s quarter, though the company expects a 2-3% rise for the full fiscal year. The group is positioned to gain from declining short-term interest rates due to its £223 million floating-rate debt, accounting for 54% of total borrowings.
CEO Jim Gibson commented, “We saw some improvement in demand through the quarter, which has continued into July, with improved yoy occupancy performance. Our customer base remains stable with move-outs lower than last year.”
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