Big Yellow Group Plc (LON:BYG) has reported higher first-quarter revenue and occupancy growth, while also outlining progress on its store pipeline and recent disposals.
Results
| Financial metrics | Quarter ended 30 June 2026 | Quarter ended 30 June 2025 | Change |
| Total revenue for the quarter | £53.2 million | £51.5 million | 3% |
| Like-for-like store revenue for the quarter1 | £52.2 million | £51.1 million | 2% |
| Store metrics | |||
| Store Maximum Lettable Area (“MLA”) | 6,721,000 | 6,423,000 | 5% |
| Closing occupancy (sq ft) | 5,146,000 | 5,103,000 | 1% |
| Occupancy growth in the quarter (sq ft) | 161,000 | 47,000 | 114,000 sq ft |
| Closing occupancy | 76.6% | 79.4% | (2.8 ppts) |
| Like-for-like occupancy1 | 79.2% | 79.4% | (0.2 ppts) |
| Average achieved net rent per sq ft | £36.68 | £35.67 | 3% |
| Closing net achieved rent per sq ft | £36.45 | £35.75 | 2% |
1 Excludes Staines, Queensbury, Slough Bath Road and Wembley (all opened in the last 12 months)
Occupancy across all 113 stores increased by 161,000 sq ft (2.4% of the MLA at 30 June 2026) compared with a gain of 47,000 sq ft in the same quarter last year (0.7% of the MLA at 30 June 2025).
Like-for-like closing occupancy for the portfolio increased by 2.2 ppts to 79.2% from 77.0% at 31 March 2026 and is down 0.2 ppts from 30 June 2025.
Closing net achieved rent per sq ft for all stores was £36.45, an increase of 2% from the same time last year, with average rate up 3% on the same quarter last year.
The Group’s revenue for the quarter was up 3% compared with the same quarter last year, with like-for-like store revenue up 2%.
Operating expenses
We continue to invest in automation, which allows us not to replace certain leavers from the business and thereby reduce our headcount and staff costs without impacting customer service. Our investment in solar and energy efficiency measures is anticipated to deliver further reductions in our utilities expenditure, and we plan to deliver a more efficient marketing plan in the current year. These savings will help offset some of the impact of increases in our property rates from the 2026 Rating Revaluation.
Due to the timing of these efficiency initiatives, we expect there to be a first half increase in store operating expenditure of 4% on a like-for-like basis, with a lower increase in the second half, delivering a combined 3% increase in like-for-like store operating expenditure for the full year.
Property
We acquired a freehold site in Acton, London in the quarter and now have 12 pipeline stores, with planning consent granted on nine of these. We are currently on site at six of the pipeline stores, which will add approximately 356,000 sq ft of capacity. We have four of these six stores due to open this financial year: Staples Corner, London (replacement for existing leasehold store, additional 18,000 sq ft opening in July 2026), Kentish Town, London (70,000 sq ft opening in September 2026), Epsom, London (59,000 sq ft opening in September 2026) and Wapping, London (additional 95,000 sq ft opening in December 2026). We anticipate opening a further two stores in the year ending 31 March 2028.
As we previously announced, we sold our industrial estate in Harrow, London, in June for £38.4 million, subject to a £2 million retention from the sale which will be released on the satisfaction of certain conditions. The proceeds from the disposal will be used to fund the build of the 11 new stores and one replacement store in the development pipeline. On a proforma basis, the 12 pipeline stores are expected to generate £35 million of net operating income, representing a return of 16.5% on the £212 million cost to complete. We are beginning to see the impact of new store openings with discernible revenue contributions from the four stores recently opened and we expect that to accelerate incrementally as further openings come online. The quality of these new stores should not be underestimated.
Jim Gibson, Chief Executive Officer, commented:
“We have delivered a resilient performance in the first quarter, despite the challenges in the wider operating environment. We have delivered stronger occupancy growth than in the same period last year, whilst maintaining steady rate growth. Our stores opened last year are contributing to an increase in overall occupied space year on year by the end of June.
We recognise that the operating environment may continue to be challenging in the months ahead, given the current fiscal and budgetary uncertainties, which will likely not be clarified until the autumn.
In the meantime, we continue to focus on disciplined cost control, development of our new store pipeline and delivering a consistently high standard of customer service. The new store development, which will drive significant value in the years ahead, will be completed whilst maintaining a prudent capital structure.”
