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StorageVault Reports 2019 Third Quarter and Year to Date Results and Increases Dividend

TORONTO, Nov. 15, 2019 (GLOBE NEWSWIRE) — STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX-V) reported the Corporation’s 2019 third quarter and nine months year to date results. Iqbal Khan, Chief Financial Officer, commented:

“We continue to see strong same store performance, achieving 7% year over year increases in both revenue and NOI in Q3. Our focus continues to be on integrating and improving our operational performance.”

2019 Third Quarter Results
The Q3 2019 net loss of $9.4 million (net loss of $6.4 million for Q3 2018) is after $20.5 million of depreciation and amortization, a non-cash item.

Revenue for the third quarter increased to $37.3 million compared to $25.7 million in Q3 2018 and net operating income (“NOI”), a non-IFRS measure, grew to $24.8 million from $18.0 million for the comparative period.

As a result of our revenue management program, increased occupancy and operational efficiency, Existing Self Storage stores revenue increased 7.1% compared to the same period last year, and NOI, a non-IFRS measure, increased 7.1% compared to the same period last year. Due to acquisition and integration costs incurred ($1.3 million in Q3 2019 versus $0.4 million in Q3 2018) for the $372.7 million of acquisitions closed in fiscal 2019, funds from operations (“FFO”), a non-IFRS measure, were $9.5 million for Q3 2019 compared to $8.6 million in Q3 2018, a 10.6% change from the same period last year. Adjusted funds from operations (“AFFO”), a non-IFRS measure, were $10.8 million for Q3 2019 compared to $9.0 million in Q3 2018, a 20.0% increase from the same period last year.

For a reconciliation of the above NOI, FFO, and AFFO amounts to IFRS, please see the Corporation’s Management’s Discussion & Analysis for the three and nine months ended September 30, 2019 filed on SEDAR at www.sedar.com.

2019 Nine Months Year to Date Results
The net loss of $34.6 million for the nine months ended September 30, 2019 (net loss of $23.3 million for 2018) is after $56.6 million in depreciation and amortization and $3.6 million in stock based compensation, which was offset by a deferred tax recovery of $4.6 million, all non-cash items.

Revenue for the nine months ended September 30, 2019 increased to $97.8 million from $69.8 million and NOI, a non-IFRS measure, grew to $65.4 million from $47.6 million, for the comparative period. For the nine months ended September 30, 2019, cash flow from operations was $21.9 million (net of $6.3 million in acquisition and integration costs) and when combined with our financing and investing activities resulted in a cash balance of $12.9 million.

Our Existing Self Storage stores revenue increased 7.3% compared to the same period last year, and NOI, a non-IFRS measure, increased 7.4% compared to the same period last year.  Due to acquisition and integration costs incurred ($6.3 million versus $1.4 million) for the $372.7 million of acquisitions closed in fiscal 2019, FFO, a non-IFRS measure, were $21.0 million compared to $21.4 million for the same period in 2018, a 1.9% change year over year. AFFO, a non-IFRS measure, were $27.3 million compared to $22.8 million for the same period in 2018, a 19.8% increase year over year.

For a reconciliation of the above NOI, FFO, and AFFO amounts to IFRS, please see the Corporation’s Management’s Discussion & Analysis for the three and nine months ended September 30, 2019 filed on SEDAR at www.sedar.com.

Increased Dividend
Based on the strong quarterly and year over year results, StorageVault is increasing its quarterly dividend by 0.5% beginning Q4 2019 to $0.002653 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, 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 business.

Further Information
For comprehensive disclosure of StorageVault’s performance for the three and nine months ended September 30, 2019 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 and nine months ended September 30, 2019 filed on SEDAR at www.sedar.com.

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:

  1. 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.
  1. 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, stock based compensation expenses, and deferred income taxes; and after adjustments for equity accounted entities and non-controlling interests. 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.
  1. 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.
  1. Existing Self Storage – means stores that the StorageVault has owned or leased 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.

About StorageVault Canada Inc.

StorageVault owns and operates 201 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. StorageVault owns 151 of these locations plus over 4,600 portable storage units representing over 8.1 million rentable square feet. For further information, contact Mr. Steven Scott or Mr. Iqbal Khan:

Tel: 1-877-622-0205
ir@storagevaultcanada.com

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