Big Yellow combines a premium London freehold franchise, 70.5% store EBITDA margins and a 15% development pipeline yield with a 13% NTA discount, supporting attractive long-term compounding.
Overview
Big Yellow is the UK’s premier self-storage REIT, owning and operating 111 high-visibility facilities with approximately 6.5 million sq ft of maximum lettable area, concentrated in Greater London and the South East. Its revenue is predominantly recurring storage rent, supplemented by insurance, merchandise and flexi-office income. Domestic customers generate approximately 68% of store revenue and pay a 16% rent premium per sq ft, while business customers provide a more stable, longer-tenured 32%. FY2026 revenue rose 2.2% to £209.1 million, store EBITDA increased 2.3% to £146.5 million and EPRA EPS grew 2.1% to £0.590. **Pricing growth and tight cost control preserved the 70.5% store EBITDA margin despite occupancy falling to 77.0%.** The company’s £1.0 billion? No—the report states a 1.0 million sq ft development pipeline, targeting approximately 15% unlevered yield on cost and £32.5 million–£36.0 million of stabilized NOI. At £9.10, the shares trade at an approximately 13% discount to £10.38–£10.58 EPRA NTA and offer a dividend yield above 5.0%. **The principal catalysts are occupancy recovery, pipeline absorption, rent compounding and a potential re-rating toward asset value.** Near-term technicals remain mixed, with the stock below its 200-day SMA but above its 50-day SMA and an RSI of 37.5.