UK self-storage company Big Yellow Group PLC (LON:BYG) reported a 7.1% increase in revenue for the third quarter as the closing occupancy rate and average net rent grew.
Revenue rose to £31.7mln in the quarter ended 31 December 2018 from £29.6mln a year ago. On a like-for-like basis, revenue gained 6.4%.
The closing occupancy rate, as a percentage of store maximum lettable area, was 81.1%, compared to 79.7%. last year. Like-for-like closing occupancy increased by 2.4 ppts to 82.1%.
Closing occupancy was 3.78mln square feet (sq ft), up 3.6% from 3.65mln sq ft last year.
However, overall occupancy fell by 126,000 sq ft in a “seasonally weaker third quarter” after a loss of 170,000 sq ft the prior year.
The average net rent per sq ft rose 3.0% to £27.24 from £26.44 the previous year.
Revenue from the company’s Armadillo self-storage portfolio jumped 17% to £3.8mln while like-for-like revenue rose 5%.
“As with the first half, this growth is coming from both occupancy and rate, and we would expect to see this continuing in 2019 as we return to occupancy growth in our fourth quarter and seasonally stronger Spring and Summer trading period,” said chief executive James Gibson.
“We remain focused on our core objective of 90% occupancy across the portfolio.”
Big Yellow is expanding with construction underway at its Manchester and Camberwell stores, which are expected to open in summer 2019 and spring 2020 respectively.
READ: Big Yellow unveils plans to raise £67mln to fund next stage of expansion
The group was also recently granted planning consent for a 57,000 sq ft store in Bracknell, which is expected to open in summer 2020.
Big Yellow plans to start construction for the redevelopment of its Battersea store next summer after receiving planning consent.
In January, the group completed the £28mln purchase of the Wyvern Industrial Estate in New Malden, London.