Investing.com -- Shares of Big Yellow Group (LON:BYG) traded higher following its third-quarter trading update, which posted a modest revenue growth amid a challenging operating environment.
The self-storage operator reported total revenue of £51.4 million for the quarter ended December 31, 2024, representing a 2% year-on-year increase.
Total (EPA:TTEF) revenue for the year to date stood at £154.4 million, marking a 3% rise compared to the same period last year.
Big Yellow Group reported a 2% increase in total revenue to £51.4 million in Q3, driven by a 2% rise in move-ins, including a 9% increase in business move-ins.
This led to a slight improvement in total closing occupancy to 77.7%. Despite a challenging operating environment, the company maintained pricing power, with average net rent per square foot increasing 2% year-on-year to £35.26.
In the context of inflationary pressures and rising costs, Big Yellow (OTC:YELLQ) reported that like-for-like operating expenses rose by 6% during the quarter, although this marked an improvement from the 10% increase reported in the first half of the financial year.
Big Yellow Group expects to further reduce operating cost inflation to 3%-4% annually.
“Events beyond our control, including policy making, are not making the job of running businesses any easier; nonetheless we are confident that this business will continue to prove itself resilient even if not completely immune from these challenges,” said Jim Gibson, chief executive at Big Yellow Group.
Big Yellow Group maintains a net debt-to-EBITDA ratio of three times, within its target range. The company plans to invest £176 million over three years to expand its footprint with 13 new stores, supporting future growth.
Shares of the UK-based company were up 3% at 03:26 ET (08:26 GMT).