(Alliance News) - Big Yellow Group PLC on Thursday said revenue was up in its financial third quarter, boosted by rent increases, as occupancy slipped.
The Surrey, England-based self-storage facilities operator said revenue for the three months that ended December 31 was GBP48.1 million, increasing 6.4% from GBP45.2 million in the fourth quarter of last year.
The company reported total revenue for the first three quarters of financial 2023 was GBP142.0 million, up 12% from GBP127.0 million a year ago.
Occupancy at December 31 was 80.4%, a decline of 5.1 points from 85.5% a year ago, with 5.1 million square foot being let of a maximum available of 6.3 million square foot.
The company said occupancy had decreased by 240,000 square feet in its "seasonally weaker" third quarter, with a similar loss of 245,000 square feet a year ago.
Despite the fall in occupancy, Big Yellow noted that net rent per square foot was GBP32.31, an increase of 10% from GBP29.41 from a year ago.
The company said the fourth quarter also saw its acquisition of a freehold site in London for GBP13.8 million, which is currently being let to automaker Renault SA on a short-term basis.
Chief Executive Officer Jim Gibson said: "We are pleased to have continued to deliver solid revenue growth in a challenging macro-environment. The quarterly seasonal loss of occupancy was in-line with last year, and overall prior year comparators year to date have been strong.
"The fourth quarter last year was impacted by the Russian invasion of Ukraine in February leading to weaker occupancy growth than we would have expected. Although it is early in the current fourth quarter, we are seeing a return to growth in net reservations and occupancy."
Big Yellow shares were up 1.4% trading at 1,190.00 pence per share on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
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