Results lift Big Yellow Group

Shares in FTSE 250 storage outfit Big Yellow Group (LON:BYG) rose by 2.34% to 1,008p (as of 16:20 BST) after it reported that revenues climbed by 2.3% during the three months ended 30th June. Occupancy dropped by 40 basis points relative to the same quarter a year ago but activity began to pick back up during June and a wave of emergency move-ins in March also boosted figures. Average net rents per square foot improved by 3.7%.

CEO James Gibson commented: “Immediately following the lockdown in March, we saw an impact on demand through a significant reduction in our activity levels and an initial loss in net occupancy, although year-on-year revenue continued to grow, driven by rental growth. The business proved to be relatively resilient, although not immune to the resultant seismic economic shock caused by the lockdown.

“As these measures were gradually relaxed from mid-May, we saw an improvement in demand across all segments, with the second half of the quarter seeing prospects up by 10% on last year, leading to improved occupancy performance. Overall for the quarter we have achieved more growth in occupied space than last year and our like-for-like occupancy as of 14 July is now 84.1%, compared to 83.6% at the same time last year. Our cash collection has been relatively secure, with many of our customers paying by direct debit, and is now broadly in line with last year.

“Although it is early in the second quarter, we are continuing to see an improvement in year-on-year occupancy growth. Significant economic uncertainty remains, and it should be noted that we have limited visibility in this business, with customers tending to reserve only a few weeks before moving in. However, we remain confident of the longer-term growth prospects for the business; the principal drivers being occupancy-led revenue growth from the existing portfolio and targeted expansion in our core area of London and its commuter towns“.