Big Yellow Group said its focus on London and the South East had helped it grow revenues ahead of expectations in the first quarter.
But with the introduction of VAT on self storage from October set to weigh on profits, the firm said that it was considering legal action to stop it.
"HM Treasury is pressing ahead with plans to introduce VAT and we expect the implementation to be confirmed following approval of the Finance Bill in Parliament later this month," Big Yellow said.
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"We have received a legal opinion from a leading tax counsel that there may be grounds to challenge the decision, and we are currently considering our legal options."
Any appeal to tax commissioners cannot take place until after the VAT hike comes in.
However, the firm said that strong revenue growth in the three months to the end of June would help mitigate the impact of the tax hike.
It said total revenue for its 54 wholly-owned stores was £16.9m, up 10% on the previous year.
Like-for-like revenue per available foot was £20.45 for the quarter, an increase of 10%.
Total revenues from its 12 partnership stores was up 36% to £1.9m.
"We are encouraged by the continuing strong performance of this business," said Chief Executive James Gibson.
"This growth is being driven by our London, South East and large metropolitan focus, coupled with the continued investment we are making in our store operations, market leading brand and online platform."
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