Shares of Big Yellow rise after reporting modest third-quarter revenue growth By Investing.com

Investing.com — Stocks Big yellow group (LON: ) traded higher following a third-quarter trading update, which saw modest revenue growth amid a challenging operating environment.

The self-storage operator reported total revenue of £51.4m for the quarter ended 31 December 2024, an increase of 2% year-on-year.

In total (EPA:) revenues for the year to date were £154.4 million, representing growth of 3% compared to the same period last year.

The big yellow group reported a 2% rise in total revenues to £51.4m in the third quarter, driven by a 2% increase in move-ins, including a 9% rise in business relocations.

This led to a slight improvement in overall occupancy at the close to 77.7%. Despite the challenging operating environment, the company retained its pricing power, with average net rent per square meter increasing by 2% year-on-year to £35.26.

Against a backdrop of inflationary pressures and rising costs, Big Yellow ( OTC: ) reported that like-for-like operating costs rose 6% during the quarter, although that marked an improvement over the 10% increase seen in the first half of the financial year.

Big Yellow Group expects a further decrease in operating cost inflation to 3%-4% per year.

“Events beyond our control, including policy making, do not make the job of running a business any easier; however, we are confident that this business will continue to prove resilient even if it is not completely immune to these challenges,” said Jim Gibson, CEO of Big Yellow Group.

Big Yellow Group maintains a net debt to EBITDA ratio of three times, within the target range. The company plans to invest £176 million over three years to expand its business with 13 new stores, supporting future growth.

Shares of the UK-based company were up 3% at 03:26 ET (08:26 GMT).