A boost in occupancy and a hike to rents helped revenue at storage firm Big Yellow to a solid increase in the second quarter.
The FTSE 250 constituent, which operates over a hundred storage sites across the UK, generated £50.2m in revenue in the three months to 30 June. Revenue rose a four per cent year on year.
Like-for-like store revenue rose three per cent from £47.6m to £49.1m. It was also able to push on rent increases to its customers of four per cent across the year, resulting in a further four per cent achieved in net rent year-on-year.
Last week the firm announced it would open a new, 68,400 sq ft site in London’s Kentish Town, after being granted planning permission by Camden council. The development now means that nine of the company’s 14 pipeline stores now have planning.
Jim Gibson, Big Yellow’s CEO and co-founder, said: “As stated in May, we saw an improvement in our demand in the fourth quarter last year, which has continued into the current quarter, delivering a solid occupancy performance, coupled with continued growth in average rent.
“The principal driver of demand has been from our domestic customers.
“We are focussed on driving occupancy to higher, previously achieved levels and maintaining sustainable rental growth reflective of a more modest inflationary environment.
The Bagshot-based firm, which owns as well as operates its storage sites, had struggled to adapt to the higher rate environment as valuations of its properties dipped in response to the rate hikes of 2022 and 2023.
From January 2022, its share price fell by 45 per cent from 1,600p to 943p in less than two years. It has since recovered 33 per cent to 1,216p thanks largely to consecutive updates containing healthy revenue rises.
Gibson, who founded the firm in 1998, said: “Following the receipt of planning on nine sites we are now embarking on an intense period of construction activity, particularly concentrated in London, which will be the driver of significant value over the next few years.”