Mr. Iqbal Khan reports

STORAGEVAULT REPORTS 2023 THIRD QUARTER RESULTS AND INCREASES DIVIDEND

Storagevault Canada Inc. has released its 2023 third quarter results and increased its dividend. Iqbal Khan, chief financial officer, commented: "For Q3, driven by our best-in-class platform and robust demand for our space, we once again achieved a strong same-store revenue and [net operating income] growth of 5.1 per cent and 4.7 per cent. In addition, at the end of Q3, 95 per cent of our debt is fixed, and we have reduced our average cost of debt to 4.47 per cent from 4.73 per cent since the start of the year. These achievements, together with our strong balance sheet, have placed us in a strong position to realize our annual expectations."

2023 third quarter results

Revenue for the third quarter of 2023 increased to $75.7-million compared with $69.3-million in Q3 2022 and net operating income (NOI), a non-IFRS (international financial reporting standard) measure, grew to $52.7-million from $49.0-million for the comparative period. The company's 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 $10.7-million at the end of the quarter. The Q3 2023 net income of $16.4-million (net loss of $2.1-million for Q3 2022) is impacted by the following non-cash items: $24.9-million of depreciation and amortization, $15.6-million of unrealized gain 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 5.1 per cent and 4.7 per cent, compared with the same period last year. Funds from operations (FFO), a non-IFRS measure, were $23.8-million for Q3 2023 compared with $21.3-million in Q3 2022, an 11.9-per-cent increase year over year. Adjusted funds from operations (AFFO), a non-IFRS measure, were $25.2-million for Q3 2023 compared with $23.4-million in Q3 2022, a 7.7-per-cent increase. On a per-basic-common-share basis, FFO and AFFO increased by 12.4 per cent and 8.2 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 nine months ended Sept. 30, 2023, filed on SEDAR+.

2023 nine-month year-to-date results

Revenue for the nine months ended Sept. 30, 2023, increased to $214.5-million from $192.7-million, an 11.3-per-cent increase, and NOI, a non-IFRS measure, grew to $143.7-million from $130.0-million, for the comparative period, a 10.5-per-cent increase. For the nine months ended Sept. 30, 2023, cash flow from operations was $69.0-million and, when combined with the company's financing and investing activities, resulted in a cash balance of $10.7-million. The net income of $26.1-million for the nine months ended Sept. 30, 2023 (net loss of $18.0-million for 2022), is a result of the following non-cash and non-recurring items: $75.2-million in depreciation and amortization, $4.0-million realized gain on derivative financial instruments, $17.0-million of unrealized gain on derivative financial instruments, a $15.6-million gain on real estate disposition from an expropriation, and deferred tax recovery of $6.3-million.

The company's revenue and NOI from existing self-storage, a non-IFRS measure, increased by 4.8 per cent and 4.3 per cent, compared with the same period last year. FFO, a non-IFRS measure, was $59.2-million compared with $53.0-million for the same period in 2022, an 11.7-per-cent increase year over year. AFFO, a non-IFRS measure, was $63.2-million compared with $60.9-million for the same period in 2022, a 3.7-per-cent increase year over year. On a per-basic-common-share basis, FFO and AFFO increased by 11.8 per cent and 3.8 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 nine months ended Sept. 30, 2023, filed on SEDAR+.

Increased dividend

Storagevault is increasing its quarterly dividend by 0.5 per cent beginning Q4 2023 to 0.2874 cent per common share.

Company strategy

Storagevault is focused on owning and operating storage in the top markets in Canada. Its 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. The company's growth strategy is focused on acquisitions, organic growth, expansion of its existing stores, and expansion of its portable storage and records management businesses.

Further information

For comprehensive disclosure of Storagevault's performance for the three and nine months ended Sept. 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 nine months ended Sept. 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 680 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.

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