Storage facilities provider Big Yellow Group PLC (LON:BYG) saw a 5% year-on-year increase in like-for-like (LFL) revenue in the April-to-June quarter.
LFL revenue rose to £27.3mln from £26.0mln in the same period of 2016, though average achieved net rent per square foot eased to £26 from £26.03.
At the end of the reporting period, the occupancy level stood at 82.0%, up from 78.0% a year earlier.
Enquiries for storage quotes were broadly in line with the same quarter last year, but "move-ins" increased by 4% compared to the same quarter last year, Big Yellow said.
There was less churn in the business resulting in "move-outs" being down by 4% compared to the same quarter last year. The combination of these factors drove the improved occupancy performance over the quarter.
"In May, with our final report, we set out our focus on occupancy gain and so it is pleasing to report strong occupancy growth of 4ppts to 82% across the portfolio,” chief executive James Gibson reminded investors.
“Our long held target of 85% is now within reach and, as we have previously indicated, that target is now under review. Net average achieved rent over the quarter has been flat, but we are confident that, at these higher occupancy levels, our pricing model will deliver growth in net achieved rents in due course,” Gibson said.
“Supply remains constrained, particularly in London and other large conurbations where our stores operate. We are aware of only one store opening in London in the next 12 months, but also one closure, resulting in no net increase in supply.
“We continue to look to acquire additional land or sites, and our financial strength should allow us to exploit any opportunities that arise," Gibson said.
Shares in Big Yellow were off 1.1% at 780.75p in mid-morning trade, having initially risen to 790p on the trading update.