Big Yellow FY25-26 Results Update

Goldman Sachs maintains a Sell rating on Big Yellow (BYG.L) with a reduced price target of 800p, citing weak FY25/26 occupancy of 77.8% and expectations for slowing rental rate growth.

Key Takeaways

• 1.Goldman Sachs maintains a Sell rating on Big Yellow, lowering the price target from 860p to 800p following weak operating results.
• 2.Established portfolio occupancy dropped to 77.8%, marking its lowest level since 2016, with further declines expected.
• 3.Rental rate growth is decelerating, with forecasts lowered to 1% for the next two fiscal years due to increased competition and vacancy.

Table of Contents

• Weak occupancy in challenging environment
• Moderating rate growth
• Stabilised occupancy to take longer
• Valuation
• Key thesis points
• Weak occupancy and moderating rate growth amid softer demand
• Stabilised occupancy to take longer in the development pipeline
• Soft UK macroeconomic environment
• Changes in estimates
• Key risks to our view and price target
• Disclosure Appendix
• Financials

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