SVI StorageVault Canada Inc

STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX) reports the Corporation’s full year 2024 audited results. Iqbal Khan, Chief Financial Officer, commented:

“We finished the year with same store revenue, NOI and AFFO growth of 3.7%, 3.3% and 4.4% in Q4; $215 million in acquisitions and 110,000 square feet of new and or renovated space – resulting in an increase of 825,000 rentable sqft to our platform. For 2025, we expect to continue to achieve revenue, NOI and AFFO growth, complete over $100 million of acquisitions, to complete 150,000 square feet of expansion and renovations, and to continue to increase our free cash flow. We are dedicated to being Canada’s storage provider and to offering premium full-service storage, moving and logistics solutions.”

2024 Full Year Audited ResultsRevenue increased to $304.7 million in 2024 from $288.7 million in 2023 and net operating income (“NOI”), a non-IFRS measure, grew to $201.6 million from $193.6 million. Cash flow from operations grew to $100.9 million from $85.8 million and when combined with our financing, acquisitions, expansions, and $36.3 million in share repurchase resulted in a cash balance of $16.3 million at the end of the year. The net loss of $30.2 million or $0.08 loss per common share for the year (net loss of $1.7 million or $0.01 loss per common share for 2023) is a result of the following non-cash and non-recurring items – $102.7 million of depreciation and amortization, $2.7 million in stock based compensation, $4.5 million of interest accretion on convertible debentures, $6.3 million of unrealized loss on derivative financial instruments, $2.7 million of realized loss on real estate (related to the derecognition and replacement of capital improvements made at our stores) and deferred tax recovery of $9.1 million.

Revenue and NOI growth from Existing Self Storage, a non-IFRS measure, increased by 3.3% and 2.8%, over the prior year. Funds from operations (“FFO”), a non-IFRS measure, were $79.6 million in 2024 compared to $80.1 million for 2023, a 0.7% decrease year over year. Adjusted funds from operations (“AFFO"), a non-IFRS measure, were $88.8 million for 2024 compared to $86.0 million for 2023, a 3.2% increase year over year. On a per share basis, FFO and AFFO, non-IFRS ratios, increased by 0.4% and 4.4%.

Annualizing results from our 2024 acquisitions would have resulted in revenues of $311.8 million, NOI of $207.1 million, FFO of $80.9 million and AFFO of $90.3 million. The annualized results are muted by the operational and interest expenses related to $127 million of lease-up stores acquired in fiscal 2024 and only includes a nominal contribution from the 110,000 square feet of expanded and renovated space. As these acquisitions and expansions stabilize, the Corporation expects to add an incremental $7.5 million of NOI, FFO and AFFO, annually. See definition of “Annualized Information” below.

For a reconciliation of the above NOI, FFO, AFFO and Existing Self Storage amounts to IFRS, please see “Non-IFRS Financial Measures” and the reconciliation tables below, and ‎the Corporation’s Management’s Discussion & Analysis for the fiscal year ended December 31, 2024 filed on SEDAR+ at www.sedarplus.ca.

2024 Fourth Quarter ResultsFor the fourth quarter of 2024, revenue increased to $80.2 million from $74.3 million in Q4 2023 and NOI, a non-IFRS measure, grew to $53.4 million from $49.9 million. Our cash flow from operations increased year over year and when combined with our financing and investing activities resulted in a cash balance of $16.3 million at the end of the quarter. The Q4 2024 net loss of $6.6 million (net loss of $27.8 million for Q4 2023) is impacted by the following non-cash and non-recurring items – $26.2 million of depreciation and amortization, $2.0 million in stock based compensation, $1.1 million of interest accretion on convertible debentures, $4.2 million of unrealized loss on derivative financial instruments, $1.3 million of realized gain on real estate (related to the derecognition and replacement of capital improvements made at our stores) and deferred tax recovery of $4.1 million.

Revenue and NOI from Existing Self Storage stores increased by 3.7% and 3.3%, compared to the same period last year. Funds from operations (“FFO”), a non-IFRS measure, were $21.6 million for Q4 2024 compared to $20.9 million in Q4 2023, a 3.7% increase year over year. Adjusted funds from operations (“AFFO”), a non-IFRS measure, were $23.3 million for Q4 2024 compared to $22.8 million in Q4 2023, a 2.1% increase. On a per basic common share basis, FFO increased by 5.0% and AFFO increased by 3.4%.

For a reconciliation of the above NOI, FFO, AFFO and Existing Self Storage amounts to IFRS, please see “Non-IFRS Financial Measures” and the reconciliation tables below, and ‎the Corporation’s Management’s Discussion & Analysis for the fiscal year ended December 31, 2024 filed on SEDAR+ at www.sedarplus.ca.

Renews and Upsizes Credit Line to $400 Million StorageVault increased one of its credit facilities from $320 million to $400 million and extended the maturity date to February 28, 2028.

Increased Dividend StorageVault is increasing its Q1 2025 dividend by 0.5% to $0.002946 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 year ended December 31, 2024 and its financial position as at such date, please see StorageVault’s Consolidated Financial Statements, Management’s Discussion and Analysis and Annual Information Form for the year ended December 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:

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.
2. 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.
3. Adjusted Funds from Operations (“AFFO”) – AFFO is defined as FFO plus acquisition and integration costs and interest expense on lease-up stores. 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. Interest expense on lease-up stores relates to interest expensed, that would otherwise be capitalized, for non-stabilized stores (portion remaining to be leased up).
4. 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)												(audited)
		Three Months Ended December 31												Fiscal
								Change												Change
			2024			2023		$			%				2024			2023		$			%
Storage revenue and related services		$	79,741,783		$	73,750,304		$	5,991,479		8.1	%		$	302,777,461		$	286,687,556		$	16,089,905		5.6	%
Management fees			498,952			518,609			(19,657	)	-3.8	%			1,927,744			2,037,056			(109,312	)	-5.4	%
			80,240,735			74,268,913			5,971,822		8.0	%			304,705,205			288,724,612			15,980,593		5.5	%
Operating costs			26,884,298			24,336,840			2,547,458		10.5	%			103,103,429			95,131,868			7,971,561		8.4	%
Net operating income 1			53,356,437			49,932,073			3,424,364		6.9	%			201,601,776			193,592,744			8,009,032		4.1	%
Less:
	Acquisition and integration costs		1,454,130			1,959,784			(505,654	)	-25.8	%			7,698,561			5,904,217			1,794,344		30.4	%
	Selling, general and administrative		6,108,158			6,300,966			(192,808	)	-3.1	%			24,335,050			24,290,628			44,422		0.2	%
	Interest		24,159,210			20,809,179			3,350,031		16.1	%			90,006,235			83,297,441			6,708,794		8.1	%
	Stock based compensation		1,989,486			2,944,323			(954,837	)	-32.4	%			2,684,644			3,795,626			(1,110,982	)	-29.3	%
	Realized (gain) loss on real estate		(1,256,871	)		87,689			(1,344,560	)	-1533.3	%			2,675,845			(15,528,115	)		18,203,960		-117.2	%
	Realized (gain) loss on derivative financial instruments		-			(23,454	)		23,454		-100.0	%			-			(3,994,356	)		3,994,356		-100.0	%
	Unrealized (gain) loss on derivative financial instruments		4,215,334			18,458,800			(14,243,466	)	-77.2	%			6,330,251			1,450,089			4,880,162		336.5	%
	Interest accretion on convertible debentures		1,129,877			4,195,644			(3,065,767	)	-73.1	%			4,469,820			4,195,644			274,176		6.5	%
	Depreciation and amortization		26,240,752			25,278,530			962,222		3.8	%			102,682,412			100,518,182			2,164,230		2.2	%
			64,040,076			80,011,461			(15,971,385	)	-20.0	%			240,882,818			203,929,356			36,953,462		18.1	%
Net income (loss) before tax			(10,683,639	)		(30,079,388	)		19,395,749		64.5	%			(39,281,042	)		(10,336,612	)		(28,944,430	)	-280.0	%
	Deferred tax (expense) recovery		4,080,153			2,292,414			1,787,739		78.0	%			9,057,910			8,636,454			421,456		4.9	%
Net income (loss) after tax		$	(6,603,486	)	$	(27,786,974	)	$	21,183,488		76.2	%		$	(30,223,132	)	$	(1,700,158	)	$	(28,522,974	)	-1677.7	%
1	Non-IFRS Measure.

The following table reconciles Net Income (Loss), and Funds from Operations and Adjusted Funds from Operations:

		(unaudited)												(audited)
		Three Months Ended December 31												Fiscal
			2024			2023		Change							2024			2023		Change
								$			%									$			%
Net income (loss)		$	(6,603,486	)	$	(27,786,974	)	$	21,183,488		76.2	%		$	(30,223,132	)	$	(1,700,158	)	$	(28,522,974	)	-1677.7	%
Adjustments:
	Stock based compensation		1,989,486			2,944,323			(954,837	)	-32.4	%			2,684,644			3,795,626			(1,110,982	)	-29.3	%
	Interest accretion on convertible debentures		1,129,877			4,195,644			(3,065,767	)	-73.1	%			4,469,820			4,195,644			274,176		6.5	%
	Realized (gain) loss on real estate		(1,256,871	)		87,689			(1,344,560	)	-1533.3	%			2,675,845			(15,528,115	)		18,203,960		-117.2	%
	Realized (gain) loss on derivative financial instruments		-			(23,454	)		23,454		-100.0	%			-			(3,994,356	)		3,994,356		-100.0	%
	Unrealized (gain) loss on derivative financial instruments		4,215,334			18,458,800			(14,243,466	)	-77.2	%			6,330,251			1,450,089			4,880,162		336.5	%
	Deferred tax expense (recovery)		(4,080,153	)		(2,292,414	)		(1,787,739	)	78.0	%			(9,057,910	)		(8,636,454	)		(421,456	)	4.9	%
	Depreciation and amortization		26,240,752			25,278,530			962,222		3.8	%			102,682,412			100,518,182			2,164,230		2.2	%
			28,238,425			48,649,118			(20,410,693	)	-42.0	%			109,785,062			81,800,616			27,984,446		34.2	%
FFO 1		$	21,634,939		$	20,862,144		$	772,795		3.7	%		$	79,561,930		$	80,100,458		$	(538,528	)	-0.7	%
Adjustments:
	Acquisition and integration costs		1,454,130			1,959,784			(505,654	)	-25.8	%			7,698,561			5,904,217			1,794,344		30.4	%
	Interest expensed on non-stabilized stores		216,735			-			216,735		-				1,511,626			-			1,511,626		-
AFFO 1		$	23,305,804		$	22,821,928		$	483,876		2.1	%		$	88,772,117		$	86,004,675		$	2,767,442		3.2	%
	1 Non-IFRS Measure.
	FFO and AFFO Per Basic Common Share Outstanding
	FFO	$	0.058		$	0.056		$	0.003		5.0	%		$	0.213		$	0.213		$	0.001		0.4	%
	AFFO	$	0.063		$	0.061		$	0.002		3.4	%		$	0.238		$	0.228		$	0.010		4.4	%

The following table reconciles Existing Self Storage Revenue, Operating Costs and Net Operating Income:

	(unaudited)										(audited)
	Three Months Ended December 31										Fiscal
	2024		2023		Change						2024		2023		Change
					$			%							$			%
Revenue
Existing Self Storage 1	$	65,666,794	$	63,294,123	$	2,372,671		3.7	%		$	255,880,506	$	247,723,445	$	8,157,061		3.3	%
New Self Storage 1		11,566,267		8,031,713		3,534,554		44.0	%			37,001,291		28,393,433		8,607,858		30.3	%
Total Self Storage		77,233,061		71,325,836		5,907,225		8.3	%			292,881,797		276,116,878		16,764,919		6.1	%
Portable Storage		2,508,722		2,424,468		84,254		3.5	%			9,895,664		10,570,678		(675,014	)	-6.4	%
Management Fees		498,952		518,609		(19,657	)	-3.8	%			1,927,744		2,037,056		(109,312	)	-5.4	%
Combined		80,240,735		74,268,913		5,971,822		8.0	%			304,705,205		288,724,612		15,980,593		5.5	%
Operating Costs
Existing Self Storage		20,103,602		19,173,072		930,530		4.9	%			77,951,419		74,724,650		3,226,769		4.3	%
New Self Storage		4,901,727		3,442,126		1,459,601		42.4	%			18,348,247		13,176,724		5,171,523		39.2	%
Total Self Storage		25,005,329		22,615,198		2,390,131		10.6	%			96,299,666		87,901,374		8,398,292		9.6	%
Portable Storage		1,878,969		1,721,642		157,327		9.1	%			6,803,763		7,230,494		(426,731	)	-5.9	%
Combined		26,884,298		24,336,840		2,547,458		10.5	%			103,103,429		95,131,868		7,971,561		8.4	%
Net Operating Income 1
Existing Self Storage		45,563,192		44,121,051		1,442,141		3.3	%			177,929,087		172,998,795		4,930,292		2.8	%
New Self Storage		6,664,540		4,589,587		2,074,953		45.2	%			18,653,044		15,216,709		3,436,335		22.6	%
Total Self Storage		52,227,732		48,710,638		3,517,094		7.2	%			196,582,131		188,215,504		8,366,627		4.4	%
Portable Storage		629,753		702,826		(73,073	)	-10.4	%			3,091,901		3,340,184		(248,283	)	-7.4	%
Management Fees		498,952		518,609		(19,657	)	-3.8	%			1,927,744		2,037,056		(109,312	)	-5.4	%
Combined	$	53,356,437	$	49,932,073	$	3,424,364		6.9	%		$	201,601,776	$	193,592,744	$	8,009,032		4.1	%
1 Non -IFRS Measure.

About StorageVault Canada Inc.

StorageVault currently owns and operates 251 storage locations across Canada. StorageVault owns 221 of these locations plus over 5,000 portable storage units representing over 12.6 million rentable square feet on over 728 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

Follow us: Instagram: @accessstorageca @depotiumminientrepot @sentinelstorageca @cubeitportablestorage Facebook: /AccessStorageCA /Depotium /SentinelStorageCanada /Cubeit /FlexSpaceLogistics

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 expectations to achieve revenue, NOI and AFFO growth, to complete over $100 million of acquisitions, to complete 150,000 square ‎feet of expansion and renovations, and to continue to increase its cash flow; the expectation that the 2024 acquisitions will add an incremental $7.5 million of NOI, FFO and AFFO, annually; the Corporation’s strategy, including the goal of having multiple stores in each market, with complementary portable storage units and records management storage services; and the Corporation’s growth strategy, including a focus on acquisitions, organic growth, expansion of our existing stores and expansion of our 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 2024 being extrapolated to the entire period for 2025 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.

The expectations to continue to achieve revenue, NOI and AFFO growth, the amount of potential future acquisitions, expansions and renovations by the Corporation in fiscal 2025 and cash flow growth for 2025 contained in this news release may be considered a financial outlook as defined by applicable securities legislation. Such information and any other financial outlooks have been approved by management of the Corporation as of the date hereof. Such financial outlooks are provided for the purpose of presenting information about management's current expectations and goals relating to the future business of the Corporation. Readers are cautioned that reliance on such information may not be appropriate for other purposes.