Mr. Iqbal Khan reports

STORAGEVAULT REPORTS FISCAL 2023 ANNUAL RESULTS; HIGHLIGHTING NOI AND AFFO GROWTH; PROVIDES 2024 OUTLOOK; INCREASES DIVIDEND

Storagevault Canada Inc. has released its full-year 2023 audited results.

Iqbal Khan, chief financial officer, commented: "Our team continued to deliver solid growth in 2023, achieving same-store NOI growth of 4.5 per cent and AFFO per share growth of 7.6 per cent; these results are after achieving a cumulative 32.7 per cent same-store NOI growth and AFFO growth of 74.2 per cent over the past two years. For 2024, we expect to continue to achieve our long-term same-store NOI growth, to complete $70- to $100-million of acquisitions, to complete 50,000 square feet of expansion and renovations, and to continue to increase our cash flow through revenue management and cost control."

2023 full-year audited results

Revenue increased to $288.7-million in 2023 from $261.8-million in 2022 and net operating income (NOI), a non-IFRS (international financial reporting standards) measure, grew to $193.6-million in 2023 from $176.0-million in 2022. Cash flow from operations grew to $85.8-million in 2023 from $76.4-million in 2022 and, when combined with the company's financing, acquisitions, expansions and $21.6-million in share repurchase, resulted in a cash balance of $13.9-million at the end of the year. The net loss of $1.7-million or one cent per common share for the year (net loss of $41.2-million or 11 cents per common share for 2022) is a result of the following non-cash and non-recurring items -- $100.5-million in depreciation and amortization, $4.0-million realized gain on derivative financial instruments, $3.8-million in stock-based compensation, $4.2-million interest accretion on convertible debentures, $1.5-million of unrealized loss on derivative financial instruments, and a $15.5-million gain on real estate disposition from an expropriation and deferred tax recovery of $8.6-million.

Revenue and NOI growth from existing self-storage, a non-IFRS measure, increased by 4.8 per cent and 4.5 per cent, over the prior year. Funds from operations (FFO), a non-IFRS measure, were $80.1-million in 2023, compared with $70.6-million for 2022, a 13.5-per-cent increase year over year. Adjusted funds from operations (AFFO), a non-IFRS measure, were $86.0-million for 2023, compared with $80.2-million for 2022, a 7.3-per-cent increase year over year. On a per-share basis, FFO and AFFO, non-IFRS ratios, increased by 13.8 per cent and 7.6 per cent, respectively.

Annualizing results from the company's 2023 acquisitions would have resulted in revenues of $294.3-million, NOI of $197.6-million, FFO of $83.8-million and AFFO of $89.7-million.

For further information on non-IFRS measures and for a reconciliation of the above NOI, FFO, AFFO and existing self-storage amounts to the most directly comparable IFRS measure, please see the corporation's management's discussion and analysis (MD&A) for the fiscal year ended Dec. 31, 2023, filed on SEDAR+.

2023 fourth quarter results

Revenue for the fourth quarter of 2023 increased to $74.3-million, compared with $69.1-million in Q4 2022, and NOI, a non-IFRS measure, grew to $49.9-million from $46.0-million for the comparative period. The company's cash flow from operations increased year over year and, when combined with its financing, acquisitions and expansions, resulted in a cash balance of $13.9-million at the end of the quarter. The Q4 2023 net loss of $27.8-million (net loss of $23.3-million for Q4 2022) is impacted by the following non-cash and non-recurring items -- $25.3-million of depreciation and amortization, $18.5-million of unrealized loss on derivative financial instruments, $2.9-million in stock-based compensation, $4.2-million interest accretion on convertible debentures, and deferred tax recovery of $2.3-million.

Revenue and NOI from existing self-storage stores increased by 5.1 per cent and 5.1 per cent, compared with the same period last year. FFO, a non-IFRS measure, was $20.9-million for Q4 2023, compared with $17.6-million in Q4 2022, an 18.7-per-cent increase year over year. AFFO, a non-IFRS measure, was $22.8-million for Q4 2023, compared with $19.2-million in Q4 2022, an 18.6-per-cent increase. On a per-basic-common-share basis, FFO and AFFO increased by 19.7 per cent and 19.6 per cent, respectively.

For a reconciliation of the above NOI, FFO and AFFO amounts to IFRS, please see the corporation's MD&A for the year ended Dec. 31, 2023, filed on SEDAR+.

Increased dividend

Storagevault is increasing its quarterly dividend by 0.5 per cent beginning Q1 2024 to 0.2888 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 year ended Dec. 31, 2023, and its financial position as at such date, please see Storagevault's consolidated financial statements, MD&A and annual information form for the year ended Dec. 31, 2023, filed on SEDAR+.

Non-IFRS financial measures

Management uses both IFRS and non-IFRS measures to assess the financial and operating performance of the corporation's operations. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable with similar measures presented by other companies.

Reconciliation of non-IFRS financial measures

An attached table reconciles net income (loss) and net operating income.

Another table reconciles net income (loss), and funds from operations and adjusted funds from operations.

A third table reconciles existing self-storage revenue, operating costs and net operating income.

About Storagevault Canada Inc.

Storagevault owns and operates 243 storage locations across Canada. Storagevault owns 212 of these locations plus over 5,000 portable storage units representing over 11.7 million rentable square feet on over 686 acres of land. Storagevault also provides last-mile storage and logistics solutions and professional records management services, such as document and media storage, and imaging and shredding services.

We seek Safe Harbor.