Big Yellow Group PLC on Monday reported increased revenue in its financial fourth quarter, as increased rents offset a drop in occupancy levels.

The Surrey, England-based self-storage facilities operator said revenue in the year to March 31 totalled £188.8 million, up 10% from £171.3 million the year prior, reflecting new stores and an additional three months of Armadillo which was acquired in July 2021.

Like-for-like store revenue rose 7% to £162.9 million from £151.8 million, mainly from increases in average achieved rents.

Executive Chair Nicholas Vetch said: ‘Our pricing models to new and existing customers have successfully mitigated the impacts of higher inflation, delivering improved average achieved rents, which have been the main driver of revenue growth.’

Statutory pretax profit slumped to £75.3 million, down from £698.9 million in the prior year, although the previous year included a revaluation surplus of £597 million.

On an adjusted basis, pretax profit improved 10% to £106.0 million from £96.8 million.

Store revenue for the fourth quarter was £46.1 million, an increase of 6% from £43.6 million in the same quarter last year, with the rate of growth slowing marginally from 6.4% reported in the third quarter.

Like-for-like occupancy decreased 2.0 percentage points to 84.0% year-on-year while closing occupancy, reflecting the additional capacity from five recently opened stores, was 2.8 percentage points lower.

Like-for-like average achieved net rent per square feet increased by 10% year-on-year to £33.31 from £30.35, with like-for-like closing net rent up 9% to £34.60 from £31.80 in March 2022.

Big Yellow said planning consent has been granted for new stores in Staines and Farnham Road, Slough meaning seven pipeline stores now have planning.

EPRA earnings per share were 56.5 pence, up 8% from 52.5 pence last year, while a final dividend of 22.9 pence made a total payout of 45.2 pence, up 8% from 42.0 pence.

Looking ahead, the company remained positive.

‘We are confident that the existing platform of stores will continue to provide a resilient stream of income, with scope for increase including from the pipeline of new stores.’

Shares in Big Yellow closed down 0.4% to 1,160.28 pence each in London on Monday.

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