Mr. Steven Scott reports

STORAGEVAULT REPORTS 2023 SECOND QUARTER RESULTS AND INCREASES DIVIDEND

Storagevault Canada Inc. has released its 2023 second quarter results and increased its dividend. Iqbal Khan, chief financial officer, commented:

"For the first half of fiscal 2023, we significantly reduced our variable-rate debt exposure and, despite the normalization of our business from the prior year, we still achieved a same-store revenue and [net operating income] growth of 4.6 per cent and 4.1 per cent. For the second half of the year, we will continue to focus on maximizing revenues, NOI and free cash flow, while controlling expenses."

2023 second quarter results

Revenue for the second quarter of 2023 increased to $71.3-million compared with $66.0-million in Q2 2022, and net operating income (NOI), a non-IFRS (international financial reporting standard) measure, grew to $48.4-million from $44.3-million for the comparative period. Cash flow from operations increased year over year and, when combined with the company's financing and investing activities, resulted in a cash balance of $16.3-million at the end of the quarter. The Q2 2023 net income of $12.6-million (net loss of $7.3-million for Q2 2022) is a result of a $15.6-million gain on a real estate disposition from an expropriation and impacted by the following non-cash items -- $24.7-million of depreciation and amortization, $700,000 of unrealized loss on derivative financial instruments, and deferred tax recovery recorded in the quarter of $2.1-million.

Revenue and NOI from existing self-storage stores increased by 1.7 per cent and 2.2 per cent, compared with the same period last year. Funds from operations (FFO), a non-IFRS measure, were $20.6-million for Q2 2023 compared with $16.9-million in Q2 2022, a 21.5-per-cent increase year over year. Adjusted funds from operations (AFFO), a non-IFRS measure, were $22.1-million for Q2 2023 compared with $21.8-million in Q2 2022, a 1.6-per-cent increase. On a per-basic-common-share basis, FFO and AFFO increased by 21.6 per cent and 1.7 per cent, respectively.

For a reconciliation of the above NOI, FFO and AFFO amounts to IFRS, please see the corporation's management's discussion and analysis for the three and six months ended June 30, 2023, filed on SEDAR.

2023 six-month year-to-date results

Revenue for the six months ended June 30, 2023, increased to $138.7-million from $123.4-million, and NOI, a non-IFRS measure, grew to $91.0-million from $81.0-million, for the comparative period, a 12.4-per-cent increase. For the six months ended June 30, 2023, cash flow from operations was $42.6-million and, when combined with the company's financing and investing activities, resulted in a cash balance of $16.3-million. The net income of $9.7-million for the six months ended June 30, 2023 (net loss of $15.9-million for 2022), is a result of a $15.6-million gain on real estate disposition from an expropriation and impacted by the following non-cash items -- $50.3-million in depreciation and amortization, $4.0-million realized gain on derivative financial instruments, $1.4-million of unrealized gain on derivative financial instruments, and deferred tax recovery of $4.2-million.

Revenue and NOI from existing self-storage, a non-IFRS measure, increased by 4.6 per cent and 4.1 per cent, compared with the same period last year. FFO, a non-IFRS measure, was $35.4-million compared with $31.7-million for the same period in 2022, an 11.6-per-cent increase year over year. AFFO, a non-IFRS measure, was $37.9-million compared with $37.5-million for the same period in 2022, a 1.1-per-cent increase year over year. On a per-basic-common-per-share basis, FFO and AFFO increased by 11.5 per cent and 1.1 per cent, respectively.

For a reconciliation of the above NOI, FFO and AFFO amounts to IFRS, please see the corporation's management's discussion and analysis for the three and six months ended June 30, 2023, filed on SEDAR.

Increased dividend

Storagevault is increasing its quarterly dividend by 0.5 per cent beginning Q3 2023 to 00.2859 cent per common share.

Our Strategy

StorageVault is focused on owning and operating storage in the top markets in Canada. Our goal is to have multiple stores in each market, with complementary portable storage units and records management storage services, to take advantage of economies of scale. Our growth strategy is focused on acquisitions, organic growth, expansion of our existing stores and expansion of our portable storage and records management businesses.

Further Information

For comprehensive disclosure of StorageVault's performance for the three and six months ended June 30, 2023 and its financial position as at such date, please see StorageVault's Unaudited Interim Financial Statements and Management's Discussion and Analysis for the three and six months ended June 30, 2023 filed on SEDAR.

About StorageVault Canada Inc.

StorageVault owns and operates 240 storage locations across Canada. StorageVault owns 209 of these locations plus over 5,000 portable storage units representing over 11.5-million rentable square feet on over 675 acres of land. StorageVault also provides last mile storage and logistics' solutions and professional records management services, such as document and media storage, imaging and shredding services.

We seek Safe Harbor.