TORONTO, April 23, 2025 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. ("StorageVault” or the "Corporation”) (SVI-TSX) reported the Corporation's 2025 first quarter results, completes another 100,000 square feet of new space, announces $126.2 million of acquisitions and increases dividend. Iqbal Khan, Chief Financial Officer, commented:
"We are pleased to start the year off with positive same store revenue and NOI growth leading to AFFO per common share growth of 4.2%. In addition, we completed 100,000 square feet of new or renovated space and today are announcing the acquisition of 12 complementary locations for $126.2 million. For the balance of the year, we will continue to be disciplined purchasers of assets, continue to be active on our NCIB if our shares remain undervalued and will maintain a strong emphasis on cost control, while maximizing revenues, NOI and free cash flow.”
2025 First Quarter Results
Revenue for the first quarter of 2025 increased to $76.3 million compared to $71.4 million in Q1 2024 and net operating income ("NOI”), a non-IFRS measure, grew to $47.7 million from $44.2 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 an increased cash balance of $17.9 million at the end of the quarter. The Q1 2025 net loss of $11.4 million (net loss of $8.0 million for Q1 2024) is impacted by the following non-cash and non-recurring items - $26.7 million of depreciation and amortization, $0.1 million in stock based compensation, $1.1 million of interest accretion on convertible debentures, $1.0 million of unrealized loss on derivative financial instruments, and deferred tax recovery of $2.2 million.
Revenue and NOI from Existing Self Storage stores increased by 1.4% and 2.6%, compared to the same period last year. Funds from operations ("FFO”), a non-IFRS measure, were $15.4 million for Q1 2025 compared to $15.1 million in Q1 2024, a 1.5% increase year over year. Adjusted funds from operations ("AFFO”), a non-IFRS measure, were $17.0 million for Q1 2025 compared to $16.6 million in Q1 2024, a 2.0% increase. On a per basic common share basis, FFO and AFFO increased by 3.7% and 4.2%, respectively.
Our Q1 2025 FFO and AFFO results are muted by operational and interest expenses related to lease-up stores acquired in fiscal 2024 ($127.0 million of the $215.0 million of acquisitions) and a nominal contribution from the 210,000 square feet of expanded and renovated space completed in Q4 2024 and Q1 2025. As these acquisitions and expansions stabilize, the Corporation expects to add an incremental annual $8.5 million of NOI within the next 3 years resulting in an equivalent incremental growth of FFO and AFFO.
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, 2025 filed on SEDAR+ at www.sedarplus.ca.
StorageVault to Acquire 12 Complementary Locations for $126.2 Million
StorageVault has agreed to acquire 11 stores and one adjacent vacant parcel of land from eight vendor groups (collectively, the "Vendors”) for an aggregate purchase price of $126.2 million, subject to customary adjustments and due diligence conditions (the "Acquisitions”). Seven of the transactions are arm's length and one, consisting of 2 stores and totaling $21.9 million, is a related party acquisition (the "Related Party Acquisition”) with Access Self Storage Inc. ("Access”) as the Vendor. It is anticipated that the acquisitions will close in Q2 and Q3 2025. Eight of the assets are in Ontario, three are in Manitoba and one in British Columbia.
Purchase Price and Payment
The aggregate purchase price is $126.2 million, subject to adjustments, and is payable with funds on hand, first mortgages, and promissory notes.
Conditions Precedent to the Acquisitions
The obligations of StorageVault to complete the Acquisitions are subject to conditions including, but not limited to: satisfactory due diligence, obtaining first mortgage commitments, and satisfactory environmental site assessment reports. The obligations of both StorageVault and the Vendors to complete the closing of the Acquisitions are subject to the satisfaction of other customary closing conditions.
Exemption from MI 61-101
As Access is a non-arm's length party to StorageVault, the Related Party Acquisition is considered a "related party transaction” under MI 61-101 - "Protection of Minority Security Holders in Special Transactions” ("MI 61-101”). StorageVault will rely on exemptions from the formal valuation and minority approval requirements of MI 61-101, in respect of the Related Party Acquisition, pursuant to Section 5.5(a) and Section 5.7(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-101.
Other Information
There can be no assurance that the Acquisitions will be completed as proposed or at all. No new insiders will be created, nor will any change of control occur, as a result of the Acquisitions.
Increased Dividend
StorageVault is increasing its Q2 2025 dividend by 0.5% to $0.002961 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 months ended March 31, 2025 and its financial position as at such date, please see StorageVault's Unaudited Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2025 filed on SEDAR+ at www.sedarplus.ca.
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 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.
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 | ||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||
| Storage revenue and related services | $ | 75,822,832 | $ | 70,944,870 | $ | 4,877,962 | 6.9 | % | $ | 75,822,832 | $ | 70,944,870 | $ | 4,877,962 | 6.9 | % | |||||||
| Management fees | 448,471 | 446,208 | 2,263 | 0.5 | % | 448,471 | 446,208 | 2,263 | 0.5 | % | |||||||||||||
| 76,271,303 | 71,391,078 | 4,880,225 | 6.8 | % | 76,271,303 | 71,391,078 | 4,880,225 | 6.8 | % | ||||||||||||||
| Operating costs | 28,615,810 | 27,148,549 | 1,467,261 | 5.4 | % | 28,615,810 | 27,148,549 | 1,467,261 | 5.4 | % | |||||||||||||
| Net operating income 1 | 47,655,493 | 44,242,529 | 3,412,964 | 7.7 | % | 47,655,493 | 44,242,529 | 3,412,964 | 7.7 | % | |||||||||||||
| Less: | |||||||||||||||||||||||
| Acquisition and integration costs | 1,612,851 | 1,512,594 | 100,257 | 6.6 | % | 1,612,851 | 1,512,594 | 100,257 | 6.6 | % | |||||||||||||
| Selling, general and administrative | 6,087,577 | 5,507,508 | 580,069 | 10.5 | % | 6,087,577 | 5,507,508 | 580,069 | 10.5 | % | |||||||||||||
| Interest | 24,597,948 | 22,090,472 | 2,507,476 | 11.4 | % | 24,597,948 | 22,090,472 | 2,507,476 | 11.4 | % | |||||||||||||
| Stock based compensation | 83,959 | 234,379 | (150,420 | ) | -64.2 | % | 83,959 | 234,379 | (150,420 | ) | -64.2 | % | |||||||||||
| Realized (gain) loss on real estate | 39,827 | 1,932,705 | (1,892,878 | ) | -97.9 | % | 39,827 | 1,932,705 | (1,892,878 | ) | -97.9 | % | |||||||||||
| Unrealized (gain) loss on derivative financial instruments | 969,752 | (2,014,752 | ) | 2,984,504 | -148.1 | % | 969,752 | (2,014,752 | ) | 2,984,504 | -148.1 | % | |||||||||||
| Interest accretion on convertible debentures | 1,129,896 | 1,105,212 | 24,684 | 2.2 | % | 1,129,896 | 1,105,212 | 24,684 | 2.2 | % | |||||||||||||
| Depreciation and amortization | 26,653,029 | 23,585,744 | 3,067,285 | 13.0 | % | 26,653,029 | 23,585,744 | 3,067,285 | 13.0 | % | |||||||||||||
| 61,174,839 | 53,953,862 | 7,220,977 | 13.4 | % | 61,174,839 | 53,953,862 | 7,220,977 | 13.4 | % | ||||||||||||||
| Net income (loss) before tax | (13,519,346 | ) | (9,711,333 | ) | (3,808,013 | ) | -39.2 | % | (13,519,346 | ) | (9,711,333 | ) | (3,808,013 | ) | -39.2 | % | |||||||
| Deferred tax (expense) recovery | 2,150,336 | 1,753,251 | 397,085 | 22.6 | % | 2,150,336 | 1,753,251 | 397,085 | 22.6 | % | |||||||||||||
| Net income (loss) after tax | $ | (11,369,010 | ) | $ | (7,958,082 | ) | $ | (3,410,928 | ) | -42.9 | % | $ | (11,369,010 | ) | $ | (7,958,082 | ) | $ | (3,410,928 | ) | -42.9 | % | |
| 1 Non-IFRS Measure. | |||||||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||||
| Three Months Ended March 31 | Fiscal | ||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||
| $ | % | $ | % | ||||||||||||||||||||
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