Big Yellow Shares Reverse Early Gains as Occupancy Dip and Cautious Outlook Weigh

Shares in Big Yellow Group (LON: BYG) opened higher on Monday before reversing course to trade around 1.8% lower, as investors digested a mixed first-quarter trading update from the UK’s self-storage leader.

The stock initially rallied on headline revenue growth, with the group reporting total revenue of £53.2 million for the quarter ended 30 June, up 3% year-on-year, alongside a 2% rise in like-for-like store revenue and a 3% increase in average achieved rent per square foot to £36.68.

Occupancy growth in the quarter also outpaced last year, with 161,000 sq ft added compared with just 47,000 sq ft a year earlier.

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However, gains quickly evaporated as investors focused on the underlying detail. Closing occupancy across the portfolio fell to 76.6%, down 2.8 percentage points year-on-year, while like-for-like occupancy of 79.2% remained slightly below last year’s 79.4%.

Concerns also grew over cost pressures, with the group flagging a 4% rise in first-half like-for-like store operating expenditure, driven by the 2026 Rating Revaluation, before easing in the second half.

Chief Executive Jim Gibson struck a cautious tone, warning that “the operating environment may continue to be challenging in the months ahead” amid fiscal and budgetary uncertainty unlikely to be resolved until autumn.

The update also detailed continued expansion, including a freehold acquisition in Acton and progress across a 12-store pipeline expected to deliver a 16.5% return on a £212 million cost to complete, funded partly by the £38.4 million sale of its Harrow industrial estate.