Big Yellow has confirmed it is calling an EGM to seek shareholder approval for conversion to a REIT.
The FTSE 250 self storage company is in on-going discussions with HM Revenue and Customs regarding tax treatment of rental income but is actively pursuing the change in status.
The company has decided to seek approval to “preserve the expected benefits from the earliest date”.
The board expects the conversion to be successful although acknowledges it is not guaranteed.
This morning’s quarterly trading update showed revenue for the last quarter was up 19% to £12.9m from £10.8m in the same quarter last year.
Occupation is also up 6% from the same quarter last year with 1.74m sq ft of a total of 2.57m sq ft available across 43 storage centres.
James Gibson, chief executive, said: “In the event that we succeed in our ambitions we believe the conversion to REIT status will be of significant benefit to shareholders creating an enhanced level of future dividends in a more tax efficient and transparent structure.
“In addition we believe that the self storage industry as a whole will benefit from the creation of a growing specialist REIT sector, with improved access to capital, driving further development of this relatively young market.’
