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(Alliance News) - Big Yellow Group PLC on Thursday said that revenue and lettable area had increased despite occupancy dropping during the "seasonally weaker third quarter".
The Surrey, England-based self-storage facilities operator recorded GBP50.5 million in revenue for the three months ended December 31, up from GBP48.1 million year-on-year. This takes the company's total revenue to GBP150.1 million for the year to date, a 5.7% bump from GBP142.0 million a year prior.
Store maximum lettable area increased slightly in the quarter to 6.4 million square feet from 6.3 million in 2022. Closing occupancy was down 2% year-on-year to 5.0 million square feet and at a rate of 78%.
Average rent per square foot rose 6.8% to GBP34.00 from GBP31.85 year-on-year, as occupancy across all stores decreased by 249,000 square feet, roughly 4% of the maximum lettable area.
In December, Big Yellow completed refinancing with a GBP300 million ESG-linked revolving credit facility, provided by Lloyds Bank PLC, HSBC UK Bank PLC, Bank of Ireland and Barclays Bank PLC. As of December 31, the group's net debt stood at GBP372 million.
Chief Executive Officer Jim Gibson said: "The occupancy performance in the third quarter has been similar to last year and although it is too early in the quarter to judge whether it is sustainable, we have seen a pick-up in our book of reservations.
"We are gearing up to commence construction on all the sites on which we have planning consent, and where vacant possession is available, which we expect will add significantly to earnings over the next few years. The refinancing of the RCF, and with net debt to earnings before interest, tax, depreciation and amortisation of approximately three times, means we can execute this expansion without taking undue risk."
Big Yellow shares were down 0.5% at 1,152.00 pence each in London on Thursday morning.
By Hugh Cameron, Alliance News reporter
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