Self-storage company Big Yellow Group (LSE: BYG) saw revenues increase 5.7% year-on-year to £150.1 million in the nine months to 31 December, despite a 2% drop in occupancy rates during the “seasonally weaker” Q3.
The company’s shares were unchanged at 1,155p on Thursday lunchtime.
Maximum lettable space grew slightly to 6.4 million square feet, but closing occupancy fell to 78%, or 5 million square feet. However, the average rent per square foot was up 6.8% at £34.
CEO Jim Gibson said it was too early to judge if the Q3 occupancy performance is sustainable, but bookings have picked up recently.
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With net debt at 3 times earnings and a new £300m revolving credit facility, Big Yellow is set to start work on new stores which “will add significantly to earnings”, Gibson added.
Big Yellow shares are down 4.1% year to date.
