STORAGEVAULT CANADA INC.
(“
StorageVault” or the
“
Corporation”) (
SVI-TSX) reported
the Corporation’s 2024 first quarter results and increases its
dividend. Iqbal Khan, Chief Financial Officer, commented:
“Our national strategically located portfolio
achieved same store NOI growth of 5.2%, AFFO growth of 6.6% per
common share, while maintaining over 90% 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
ResultsRevenue for the first quarter of 2024 increased to
$71.4 million compared to $67.4 million in Q1 2023 and net
operating income (“NOI”), a non-IFRS measure, grew to $44.2 million
from $42.6 million for the comparative period. Our 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, $0.2 million 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% and 5.2%, compared to the same period last
year. Funds from operations (“FFO”), a non-IFRS measure, were $15.1
million for Q1 2024 compared to $14.8 million in Q1 2023, a 2.3%
increase year over year. Adjusted funds from operations (“AFFO”), a
non-IFRS measure, were $16.6 million for Q1 2024 compared to $15.8
million in Q1 2023, a 5.6% increase. On a per basic common share
basis, FFO and AFFO increased by 3.3% and 6.6%, respectively.
For a reconciliation of the above NOI, FFO, and
AFFO amounts to IFRS, please see “Non-IFRS Financial Measures” and
the reconciliation tables below, and the Corporation’s Management’s
Discussion & Analysis for the three months ended March 31, 2024
filed on SEDAR+ at www.sedarplus.ca.
Increased Dividend StorageVault
is increasing its quarterly dividend by 0.5% beginning Q2 2024 to
$0.002903 per common share.
Our StrategyStorageVault 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 InformationFor
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+ at
www.sedarplus.ca.
Non-IFRS Financial
MeasuresManagement 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 to similar measures presented by other
companies. The non-IFRS Measures referenced in this news release
include the following:
- Net Operating Income
(“NOI”) – NOI is defined as storage and related
services revenue less related property operating costs. NOI does
not include interest expense or income, depreciation and
amortization, corporate administrative costs, stock based
compensation costs or taxes. NOI assists management in assessing
profitability and valuation from principal business
activities.
- Funds from Operations
(“FFO”) – FFO is defined as net income (loss)
excluding gains or losses from the sale of depreciable real estate,
plus depreciation and amortization, realized gains or losses on
real estate, realized and unrealized gains or losses on interest
rate swaps, interest accretion on convertible debentures, realized
and unrealized gains or losses on derivative financial instruments,
stock based compensation expenses and deferred income taxes; and
after adjustments for equity accounted entities and non-controlling
interests. FFO should not be viewed as an alternative to cash from
operating activities, net income, or other measures calculated in
accordance with IFRS. The Corporation believes that FFO can be a
beneficial measure, when combined with primary IFRS measures, to
assist in the evaluation of the Corporation’s ability to generate
cash and evaluate its return on investments as it excludes the
effects of real estate amortization and gains and losses from the
sale of real estate, all of which are based on historical cost
accounting and which may be of limited significance in evaluating
current performance.
- Adjusted Funds from Operations
(“AFFO”) – AFFO is defined as FFO plus acquisition
and integration costs. Acquisition and integration costs are one
time in nature to the specific assets purchased in the current
period or pending and are expensed under IFRS.
- Existing Self Storage – means
stabilized stores that StorageVault has owned or leased at least
since the beginning of the previous fiscal year.
NOI, FFO, AFFO and Existing Self Storage, should
not be viewed as an alternative to, in isolation from, or superior
to, net income or cash flow from operations, or results from
StorageVault’s comprehensive operations, respectively, or other
measures calculated in accordance with IFRS. NOI, FFO and AFFO
should not be interpreted as an indicator of cash generated from
operating activities and is not indicative of cash available to
fund operating expenditures, or for the payment of cash
distributions. Existing Self Storage should not be considered a
measure of StorageVault’s comprehensive operations. NOI, FFO, AFFO
and Existing Self Storage are simply additional measures of
operating performance which highlight trends in StorageVault’s core
business that may not otherwise be apparent when relying solely on
IFRS financial measures. StorageVault’s management also uses these
non-IFRS measures in order to facilitate operating performance
comparisons from period to period and to prepare operating budgets.
In addition, the Corporation’s definitions of NOI, FFO, AFFO and
Existing Self Storage may differ from that of other issuers.
Non-IFRS Financial Measures Reconciliation
The following table reconciles Net Income (Loss)
and Net Operating Income:
|
|
(unaudited) |
|
(unaudited) |
|
|
Three Months Ended March 31 |
|
Fiscal |
|
|
|
|
Change |
|
|
|
Change |
|
|
|
2024 |
|
|
2023 |
|
$ |
% |
|
|
2024 |
|
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
|
Storage revenue and related services |
$ |
70,944,870 |
|
$ |
66,943,141 |
|
$ |
4,001,729 |
|
6.0 |
% |
|
$ |
70,944,870 |
|
$ |
66,943,141 |
|
$ |
4,001,729 |
|
6.0 |
% |
Management fees |
|
446,208 |
|
|
474,331 |
|
|
(28,123 |
) |
-5.9 |
% |
|
|
446,208 |
|
|
474,331 |
|
|
(28,123 |
) |
-5.9 |
% |
|
|
|
71,391,078 |
|
|
67,417,472 |
|
|
3,973,606 |
|
5.9 |
% |
|
|
71,391,078 |
|
|
67,417,472 |
|
|
3,973,606 |
|
5.9 |
% |
Operating costs |
|
27,148,549 |
|
|
24,845,593 |
|
|
2,302,956 |
|
9.3 |
% |
|
|
27,148,549 |
|
|
24,845,593 |
|
|
2,302,956 |
|
9.3 |
% |
Net operating income 1 |
|
44,242,529 |
|
|
42,571,879 |
|
|
1,670,650 |
|
3.9 |
% |
|
|
44,242,529 |
|
|
42,571,879 |
|
|
1,670,650 |
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Acquisition
and integration costs |
|
1,512,594 |
|
|
972,297 |
|
|
540,297 |
|
55.6 |
% |
|
|
1,512,594 |
|
|
972,297 |
|
|
540,297 |
|
55.6 |
% |
|
Selling,
general and administrative |
|
5,507,508 |
|
|
5,835,146 |
|
|
(327,638 |
) |
-5.6 |
% |
|
|
5,507,508 |
|
|
5,835,146 |
|
|
(327,638 |
) |
-5.6 |
% |
|
Interest |
|
22,090,472 |
|
|
20,975,025 |
|
|
1,115,447 |
|
5.3 |
% |
|
|
22,090,472 |
|
|
20,975,025 |
|
|
1,115,447 |
|
5.3 |
% |
|
Stock based
compensation |
|
234,379 |
|
|
309,837 |
|
|
(75,458 |
) |
-24.4 |
% |
|
|
234,379 |
|
|
309,837 |
|
|
(75,458 |
) |
-24.4 |
% |
|
Realized
(gain) loss on real estate |
|
1,932,705 |
|
|
(35,359 |
) |
|
1,968,064 |
|
-5565.9 |
% |
|
|
1,932,705 |
|
|
(35,359 |
) |
|
1,968,064 |
|
-5565.9 |
% |
|
Realized
(gain) loss on derivative financial instruments |
|
- |
|
|
(3,970,902 |
) |
|
3,970,902 |
|
-100.0 |
% |
|
|
- |
|
|
(3,970,902 |
) |
|
3,970,902 |
|
-100.0 |
% |
|
Unrealized
(gain) loss on derivative financial instruments |
|
(2,014,752 |
) |
|
(2,074,497 |
) |
|
59,745 |
|
-2.9 |
% |
|
|
(2,014,752 |
) |
|
(2,074,497 |
) |
|
59,745 |
|
-2.9 |
% |
|
Interest
accretion on convertible debentures |
|
1,105,212 |
|
|
- |
|
|
1,105,212 |
|
- |
|
|
|
1,105,212 |
|
|
- |
|
|
1,105,212 |
|
- |
|
|
Depreciation
and amortization |
|
23,585,744 |
|
|
25,621,018 |
|
|
(2,035,274 |
) |
-7.9 |
% |
|
|
23,585,744 |
|
|
25,621,018 |
|
|
(2,035,274 |
) |
-7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,953,862 |
|
|
47,632,565 |
|
|
6,321,297 |
|
13.3 |
% |
|
|
53,953,862 |
|
|
47,632,565 |
|
|
6,321,297 |
|
13.3 |
% |
Net income (loss) before taxes |
|
(9,711,333 |
) |
|
(5,060,686 |
) |
|
(4,650,647 |
) |
-91.9 |
% |
|
|
(9,711,333 |
) |
|
(5,060,686 |
) |
|
(4,650,647 |
) |
-91.9 |
% |
|
Deferred tax
(expense) recovery |
|
1,753,251 |
|
|
2,156,314 |
|
|
(403,063 |
) |
-18.7 |
% |
|
|
1,753,251 |
|
|
2,156,314 |
|
|
(403,063 |
) |
-18.7 |
% |
Net income (loss) |
$ |
(7,958,082 |
) |
$ |
(2,904,372 |
) |
$ |
(5,053,710 |
) |
-174.0 |
% |
|
$ |
(7,958,082 |
) |
$ |
(2,904,372 |
) |
$ |
(5,053,710 |
) |
-174.0 |
% |
1 |
Non-IFRS
Measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Net Income
(Loss), and Funds from Operations and Adjusted Funds from
Operations:
|
|
(unaudited) |
|
(unaudited) |
|
|
Three Months Ended March 31 |
|
Fiscal |
|
|
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
|
|
|
|
$ |
% |
|
|
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(7,958,082 |
) |
$ |
(2,904,372 |
) |
$ |
(5,053,710 |
) |
-174.0 |
% |
|
$ |
(7,958,082 |
) |
$ |
(2,904,372 |
) |
$ |
(5,053,710 |
) |
-174.0 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
234,379 |
|
|
309,837 |
|
|
(75,458 |
) |
-24.4 |
% |
|
|
234,379 |
|
|
309,837 |
|
|
(75,458 |
) |
-24.4 |
% |
|
Interest
accretion on convertible debentures |
|
1,105,212 |
|
|
- |
|
|
1,105,212 |
|
- |
|
|
|
1,105,212 |
|
|
- |
|
|
1,105,212 |
|
- |
|
|
Realized
(gain) loss on real estate |
|
1,932,705 |
|
|
(35,359 |
) |
|
1,968,064 |
|
-5565.9 |
% |
|
|
1,932,705 |
|
|
(35,359 |
) |
|
1,968,064 |
|
-5565.9 |
% |
|
Realized
(gain) loss on derivative financial instruments |
|
- |
|
|
(3,970,902 |
) |
|
3,970,902 |
|
-100.0 |
% |
|
|
- |
|
|
(3,970,902 |
) |
|
3,970,902 |
|
-100.0 |
% |
|
Unrealized
(gain) loss on derivative financial instruments |
|
(2,014,752 |
) |
|
(2,074,497 |
) |
|
59,745 |
|
-2.9 |
% |
|
|
(2,014,752 |
) |
|
(2,074,497 |
) |
|
59,745 |
|
-2.9 |
% |
|
Deferred tax
(expense) recovery |
|
(1,753,251 |
) |
|
(2,156,314 |
) |
|
403,063 |
|
-18.7 |
% |
|
|
(1,753,251 |
) |
|
(2,156,314 |
) |
|
403,063 |
|
-18.7 |
% |
|
Depreciation
and amortization |
|
23,585,744 |
|
|
25,621,018 |
|
|
(2,035,274 |
) |
-7.9 |
% |
|
|
23,585,744 |
|
|
25,621,018 |
|
|
(2,035,274 |
) |
-7.9 |
% |
|
|
|
23,090,037 |
|
|
17,693,783 |
|
|
5,396,254 |
|
30.5 |
% |
|
|
23,090,037 |
|
|
17,693,783 |
|
|
5,396,254 |
|
30.5 |
% |
FFO 1 |
$ |
15,131,955 |
|
$ |
14,789,411 |
|
$ |
342,544 |
|
2.3 |
% |
|
$ |
15,131,955 |
|
$ |
14,789,411 |
|
$ |
342,544 |
|
2.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Acquisition
and integration costs |
|
1,512,594 |
|
|
972,297 |
|
|
540,297 |
|
55.6 |
% |
|
|
1,512,594 |
|
|
972,297 |
|
|
540,297 |
|
55.6 |
% |
AFFO 1 |
$ |
16,644,549 |
|
$ |
15,761,708 |
|
$ |
882,841 |
|
5.6 |
% |
|
$ |
16,644,549 |
|
$ |
15,761,708 |
|
$ |
882,841 |
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
1 Non-IFRS
Measure. |
|
|
|
|
|
|
|
|
|
|
FFO and AFFO Per Basic Common Share Outstanding |
|
|
|
|
|
|
|
|
|
FFO |
$ |
0.040 |
|
$ |
0.039 |
|
$ |
0.001 |
|
3.3 |
% |
|
$ |
0.040 |
|
$ |
0.039 |
|
$ |
0.001 |
|
3.3 |
% |
|
AFFO |
$ |
0.044 |
|
$ |
0.042 |
|
$ |
0.003 |
|
6.6 |
% |
|
$ |
0.044 |
|
$ |
0.042 |
|
$ |
0.003 |
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Existing Self
Storage Revenue, Operating Costs and Net Operating Income:
|
|
(unaudited) |
|
(unaudited) |
|
|
Three Months Ended March 31 |
|
Fiscal |
|
|
|
2024 |
|
2023 |
Change |
|
|
2024 |
|
2023 |
Change |
|
|
|
|
$ |
% |
|
|
|
$ |
% |
Revenue |
|
|
|
|
|
|
|
|
|
Existing Self Storage 1 |
$ |
61,617,516 |
$ |
58,189,571 |
$ |
3,427,945 |
|
5.9 |
% |
|
$ |
61,617,516 |
$ |
58,189,571 |
$ |
3,427,945 |
|
5.9 |
% |
New Self Storage 1 |
|
7,326,745 |
|
6,687,304 |
|
639,441 |
|
9.6 |
% |
|
|
7,326,745 |
|
6,687,304 |
|
639,441 |
|
9.6 |
% |
Total Self Storage |
|
68,944,261 |
|
64,876,875 |
|
4,067,386 |
|
6.3 |
% |
|
|
68,944,261 |
|
64,876,875 |
|
4,067,386 |
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Portable Storage |
|
2,000,609 |
|
2,066,266 |
|
(65,657 |
) |
-3.2 |
% |
|
|
2,000,609 |
|
2,066,266 |
|
(65,657 |
) |
-3.2 |
% |
Management Fees |
|
446,208 |
|
474,331 |
|
(28,123 |
) |
-5.9 |
% |
|
|
446,208 |
|
474,331 |
|
(28,123 |
) |
-5.9 |
% |
Combined |
|
71,391,078 |
|
67,417,472 |
|
3,973,606 |
|
5.9 |
% |
|
|
71,391,078 |
|
67,417,472 |
|
3,973,606 |
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating Costs |
|
|
|
|
|
|
|
|
|
Existing Self Storage |
|
21,278,327 |
|
19,843,439 |
|
1,434,888 |
|
7.2 |
% |
|
|
21,278,327 |
|
19,843,439 |
|
1,434,888 |
|
7.2 |
% |
New Self Storage |
|
4,353,314 |
|
3,412,835 |
|
940,479 |
|
27.6 |
% |
|
|
4,353,314 |
|
3,412,835 |
|
940,479 |
|
27.6 |
% |
Total Self Storage |
|
25,631,641 |
|
23,256,274 |
|
2,375,367 |
|
10.2 |
% |
|
|
25,631,641 |
|
23,256,274 |
|
2,375,367 |
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Portable Storage |
|
1,516,908 |
|
1,589,319 |
|
(72,411 |
) |
-4.6 |
% |
|
|
1,516,908 |
|
1,589,319 |
|
(72,411 |
) |
-4.6 |
% |
Combined |
|
27,148,549 |
|
24,845,593 |
|
2,302,956 |
|
9.3 |
% |
|
|
27,148,549 |
|
24,845,593 |
|
2,302,956 |
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income 1 |
|
|
|
|
|
|
|
|
Existing Self Storage |
|
40,339,189 |
|
38,346,132 |
|
1,993,057 |
|
5.2 |
% |
|
|
40,339,189 |
|
38,346,132 |
|
1,993,057 |
|
5.2 |
% |
New Self Storage |
|
2,973,431 |
|
3,274,469 |
|
(301,038 |
) |
-9.2 |
% |
|
|
2,973,431 |
|
3,274,469 |
|
(301,038 |
) |
-9.2 |
% |
Total Self Storage |
|
43,312,620 |
|
41,620,601 |
|
1,692,019 |
|
4.1 |
% |
|
|
43,312,620 |
|
41,620,601 |
|
1,692,019 |
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Portable Storage |
|
483,701 |
|
476,947 |
|
6,754 |
|
1.4 |
% |
|
|
483,701 |
|
476,947 |
|
6,754 |
|
1.4 |
% |
Management Fees |
|
446,208 |
|
474,331 |
|
(28,123 |
) |
-5.9 |
% |
|
|
446,208 |
|
474,331 |
|
(28,123 |
) |
-5.9 |
% |
Combined |
$ |
44,242,529 |
$ |
42,571,879 |
$ |
1,670,650 |
|
3.9 |
% |
|
$ |
44,242,529 |
$ |
42,571,879 |
$ |
1,670,650 |
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
1 Non -IFRS Measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, imaging and shredding services.
For further information, contact Mr. Steven
Scott or Mr. Iqbal Khan:
Tel: 1-877-622-0205ir@storagevaultcanada.com
Forward-Looking Information:
This news release contains “forward-looking information” within the
meaning of applicable Canadian securities legislation. All
statements, other than statements of historical fact, included
herein are forward-looking information. In particular, this news
release contains forward-looking information regarding: the
Corporation’s goal to continue to be disciplined purchasers of
assets, focusing on controlling expenses, while maximizing
revenues, NOI and free cash flow; and the Corporation’s strategy,
including having multiple stores in the top markets in Canada with
complementary portable storage units and records management storage
services, to take advantage of economies of scale, and a growth
strategy focused on acquisitions, organic growth, expansion of
existing stores and portable storage and records management
businesses. There can be no assurance that such forward-looking
information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such forward-looking information. This forward-looking information
reflects StorageVault’s current beliefs and is based on information
currently available to StorageVault and on assumptions StorageVault
believes are reasonable. These assumptions include, but are not
limited to: the level of activity in the storage business and the
economy generally; consumer interest in the Corporation’s services
and products; competition and StorageVault’s competitive
advantages; trends in the storage industry, including, increased
growth and growth in the portable storage business; the
availability of attractive and financially competitive asset
acquisitions in the future; the closing of previously announced
acquisitions; the revenue and costs from acquisitions and
operations conducted in fiscal 2023 being extrapolated to the
entire period for 2024 and being consistent with, and reproducible
as, costs and revenue in future periods; and anticipated and
unanticipated costs. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of StorageVault to be materially different from those
expressed or implied by such forward-looking information. Such
risks and other factors may include, but are not limited to:
general business, economic, competitive, political and social
uncertainties; general capital market conditions and market prices
for securities; delay or failure to receive board of directors,
third party or regulatory approvals; the actual results of
StorageVault’s future operations; competition; changes in
legislation, including environmental legislation, affecting
StorageVault; the timing and availability of external financing on
acceptable terms; conclusions of economic evaluations and
appraisals; and lack of qualified, skilled labour or loss of key
individuals. A description of additional risk factors that may
cause actual results to differ materially from forward-looking
information can be found in StorageVault’s disclosure documents on
the SEDAR+ website at www.sedarplus.ca. Although StorageVault has
attempted to identify important risks and factors that could cause
actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking information as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Forward-looking information contained in this news release
is expressly qualified by this cautionary statement. The
forward-looking information contained in this news release
represents the expectations of StorageVault as of the date of this
news release and, accordingly, is subject to change after such
date. However, StorageVault expressly disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities law.
StorageVault Canada (TSX:SVI)
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StorageVault Canada (TSX:SVI)
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