U.K. self-storage operator Big Yellow Group PLC released interim operating-performance results for the first quarter of its 2017 fiscal year, which ended June 30. The company reported same-store revenue of £26 million for the period, up 8 percent from a year ago. Revenue for just the company’s Armadillo Self Storage portfolio was £2.5 million, an 11 percent year-over-year increase, according to a press release.
Occupancy across the company’s portfolio of 73 locations closed at 78 percent for the period, compared to 75.5 percent the previous year. Same-store occupancy was 78.5 percent, up from 75.5 percent a year ago.
Although the ramifications from the Brexit vote on the British economy is not yet known, Big Yellow is optimistic it won’t severely impact its operation or expansion plans. "We make no attempt to forecast the longer-term impact of the referendum result; however, current performance in the group's stores is satisfactory in the circumstances,” CEO James Gibson said. “Big Yellow's financial strength, with interest cover of approximately 6.5 times, should allow us to exploit any opportunities to acquire additional land or sites should they present themselves."
The company indicated it’s progressing on current development projects and will provide an update in November.
Big Yellow Group operates 89 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo Self Storage brand names, with most concentrated in Greater London. Its total portfolio comprises 5.3 million square feet.
Sources:
- Big Yellow Group: Interim Management Statement
