Mr. Steven Scott reports

STORAGEVAULT REPORTS 2024 FIRST QUARTER RESULTS AND INCREASES DIVIDEND

Storagevault Canada Inc. has released its 2024 first quarter results and has increased its dividend. Iqbal Khan, chief financial officer, commented:

"Our national strategically located portfolio achieved same store NOI growth of 5.2 per cent, AFFO growth of 6.6 per cent per common share, while maintaining over 90-per-cent fixed rate debt. We are pleased to have announced the acquisition of two stores for $43-million earlier this week with quick closings that demonstrate the strength of our balance sheet and team. With the recent change to the capital gains inclusion rate, the ability to close quickly is critical. For the balance of the year, we will continue to be disciplined purchasers of assets and will focus on controlling expenses, while maximizing revenues, NOI and free cash flow."

2024 first quarter results

Revenue for the first quarter of 2024 increased to $71.4-million compared with $67.4-million in Q1 2023 and net operating income (NOI), a non-IFRS (international financial reporting standards) measure, grew to $44.2-million from $42.6-million for the comparative period. The company's cash flow from operations increased year over year and when combined with our financing, acquisitions and expansions resulted in a cash balance of $14.3-million at the end of the quarter. The Q1 2024 net loss of $8.0-million (net loss of $2.9-million for Q1 2023) is impacted by the following non-cash and non-recurring items -- $23.6-million of depreciation and amortization, $200,000 in stock-based compensation, $1.1-million interest accretion on convertible debentures, $2.0-million of unrealized gain on derivative financial instruments, and deferred tax recovery of $1.8-million.

Revenue and NOI from existing self storage stores increased by 5.9 per cent and 5.2 per cent, compared with the same period last year. Funds from operations (FFO), a non-IFRS measure, were $15.1-million for Q1 2024 compared with $14.8-million in Q1 2023, a 2.3-per-cent increase year over year. Adjusted funds from operations (AFFO), a non-IFRS measure, were $16.6-million for Q1 2024 compared with $15.8-million in Q1 2023, a 5.6-per-cent increase. On a per-basic-common-share basis, FFO and AFFO increased by 3.3 per cent and 6.6 per cent, respectively.

Increased dividend

StorageVault is increasing its quarterly dividend by 0.5 per cent beginning Q2 2024 to 0.2903 cent per common share.

The company's 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 months ended March 31, 2024,, 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 months ended March 31, 2024, filed on SEDAR+.

About StorageVault Canada Inc.

StorageVault owns and operates 244 storage locations across Canada. StorageVault owns 213 of these locations plus over 5,000 portable storage units representing over 11.8 million rentable square feet on over 690 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.