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Investing.com -- Big Yellow Group (LON:BYG) stock gained 2.4% on Thursday after the self-storage company reported an improvement in occupancy levels and stable revenue growth in its first quarter.
The UK-based storage provider said its closing occupancy increased by 0.7 percentage points to 79.4% from 78.7% at the end of March, though this figure remains 2.4 percentage points below the level seen at the end of June 2024.
The company achieved net closing rent of £35.75 per square foot, representing a 5% increase YoY, while revenue for the quarter rose 3% compared to the same period in 2024.
Big Yellow (OTC:YELLQ) has implemented cost control measures including increased automation to reduce headcount and staff costs without affecting customer service. The company is also benefiting from investments in solar power and energy efficiency measures, as well as lower property rates.
Like-for-like store operating expenses remained flat compared to the same quarter last year, though the company anticipates a 2-3% increase for the full year. Big Yellow is also positioned to benefit from falling short-term interest rates through its £223 million of floating rate debt, which represents 54% of its total debt.
CEO Jim Gibson noted, "We saw some improvement in demand through the quarter, which has continued into July, with improved yoy occupancy performance. Our customer base remains stable with move-outs lower than last year."
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