13th Jan 2015 07:55
LONDON (Alliance News) - Big Yellow Group PLC Tuesday reported strong growth in revenue during its fiscal third quarter, partly driven by its acquisition of the whole of the Big Yellow Limited Partnership, and said the decline in occupancy in what is traditionally a weaker quarter was lower than in the previous year.
The self-storage company bought the two thirds of Big Yellow Limited Partnership joint venture that it did not previously own in November, adding 12 stores in cities outside London to its portfolio.
In a trading update Tuesday, it said revenue was GBP21.3 million in the three months to December 31 including those stores, up from GBP18.3 million a year earlier. Excluding the partnership stores, revenue for the latest quarter was GBP20.3 million.
In what is always a seasonally weaker quarter for Big Yellow, all 68 stores in its portfolio reported a combined fall in occupancy by 103,000 square foot, or 2.4% of maximum lettable area, compared with a loss of 120,000 square foot, or 2.9% of maximum lettable area a year earlier. The number of move-ins was up 14% on the year.
"The seasonal loss of occupancy in the group this quarter is in the normal range of 2% to 3% of MLA, and pleasingly towards the lower end of this range, driven by year-on-year improvement in move-in numbers in the stores. This improving demand is broad based across domestic and business customers," Chief Executive James Gibson said in the statement.
Big Yellow also reported net rent per square foot growth of 1.6% for the fiscal third quarter.
The company said revenue for the nine months to end-December was GBP61.2 million, up 13% from GBP54.2 million a year earlier.
"We have had a positive start to January with the seasonal return to occupancy growth and an improving book of reservations. As we have indicated previously, the uncertainty around the General Election in May could lead to some prospects deferring decisions in the run up to and over the election period," it added.
By Steve McGrath; [email protected]; @stevemcgrath1
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