Investing.com — Features of Big Yellow Group (LON: ) traded higher after its third-quarter trading update, posting modest revenue growth amid a challenging operating environment.

The self-storage operator reported total revenue of £51.4 million for the quarter ending December 31, 2024, representing a 2% year-on-year increase.

Total (EPA:) revenue for the year to date stood at £154.4 million, marking a 3% increase compared to the same period last year.

The Big Yellow Group reported a 2% increase in total revenue to £51.4 million in Q3, driven by a 2% increase in movements, including a 9% increase in business movements.

This led to a slight increase in overall occupancy closings 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: ) reported that like-for-like operating expenses rose 6% during the quarter, although it marked an improvement from 10% increase reported in the first half of the financial year.

Big Yellow Group expects to further reduce inflation in operating costs to 3%-4% annually.

“Events beyond our control, including policy making, do not make the job of running businesses any easier; however we are confident that this business will continue to prove itself strong although not completely immune from these challenges,” said Jim Gibson, chief executive of 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.

The UK-based company’s shares were up 3% at 03:26 ET (08:26 GMT).