Big Yellow H1 profit rises on higher rents as occupancy dips amid Blackstone bid interest

Big Yellow Group on Monday reported a 9% rise in first-half adjusted profit, presenting a mixed picture of rising rents and falling occupancy for private equity firm Blackstone as it weighs a potential takeover bid.

The self-storage provider said adjusted profit before tax for the six months ended Sept. 30 rose to 59.6 million British Pounds, up from 54.9 million British Pounds a year earlier.

Revenue increased by 2% to £105.1 million, driven by a 4% increase in average net rent which offset a drop in occupancy, the company said in a filing.

Like-for-like store occupancy fell 2.3 percentage points from the same time last year to 78.2%.

The results come as Blackstone evaluates a possible cash offer for the UK's largest self-storage company, with a deadline extended to early December.

Statutory profit before tax fell 49% to £74.8 million, which the company attributed to a smaller gain on the revaluation of its property portfolio compared to the prior period.

Big Yellow raised its interim dividend by 5% to 23.8 pence per share.

"These are pleasing results given the significant external and macro challenges of recent years," Executive Chairman Nicholas Vetch said.

"The fifth element is occupancy growth, which is currently our core focus, where we have seen a modest improvement in recent weeks."