Big Yellow Group Navigates Weaker Seasonality with Solid Rent Growth

Big Yellow Group PLC (BYG), the UK's leading self-storage provider, released its third-quarter trading statement, revealing a resilient performance amidst seasonal headwinds.

The report highlights a revenue increase and improved occupancy trends, alongside strategic investments in digital marketing and expansion.

Revenue for the quarter ended December 31, 2025, reached £52.3 million, a 2% increase compared to £51.4 million in the same period last year. Year-to-date revenue also saw a 2% rise, climbing to £157.5 million from £154.4 million. Like-for-like store revenue mirrored this growth, indicating consistent performance across established locations.

Occupancy figures presented a mixed picture. While closing occupancy decreased by 82,000 sq ft during the quarter, this represented significant improvement compared to the 180,000 sq ft decrease in the same period last year.

Overall closing occupancy stood at 75.4%, factoring in the addition of 142,000 sq ft from two newly opened stores. Like-for-like closing occupancy was 76.7%, a 1.0 percentage point decrease year-on-year, but an improvement from the 2.3 percentage point decrease reported at the end of September.

A key driver of Big Yellow's performance was its ability to increase rental rates. The average achieved net rent per sq ft for the quarter rose by 4% to £36.19, compared to £34.87 last year.

Similarly, the year-to-date average increased by 4%, reaching £35.98. Closing net rent per sq ft also saw a 3% increase, landing at £36.32. This demonstrates the company's pricing power and ability to generate revenue growth even with slight occupancy dips.

The company is actively managing its operating expenses. Like-for-like operating expenses for the year to date are down 0.5% on the prior year. However, Big Yellow anticipates a 2-3% increase in like-for-like operating expenses for the full year, as it strategically invests savings into digital marketing.

This investment aims to drive demand and further improve occupancy rates. Adjusted EPS growth for the full year is anticipated to be approximately 2%, impacted by a one-off insurance receipt in the prior year.

Driver Breakdown:

• Strategic Pricing: Increasing net rent per sq ft drives revenue growth.
• Occupancy Focus: Efforts to improve occupancy rates yielding positive results.
• Digital Investment: Strategic marketing spend to boost demand and occupancy.

CEO Jim Gibson commented, “We have seen an increase in demand starting from the beginning of November and are pleased to be reporting an improvement in relative occupancy performance over the quarter and have narrowed further the year-on-year like-for-like gap.”

Big Yellow's commitment to expansion is evident in its pipeline of new stores. The company is opening two additional stores before the end of the year and four in the next financial year.

Furthermore, planning consent has been secured for 10 of its 13 pipeline stores, paving the way for future growth. The company maintains a conservative capital structure, positioning it well to capitalize on development and acquisition opportunities.