TORONTO, July 23, 2025 (GLOBE NEWSWIRE) — STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX) reported the Corporation’s 2025 second quarter results and increases dividend. Iqbal Khan, Chief Financial Officer, commented:
“We are pleased to report strong second quarter results, with same store revenue growth of 6.6% and NOI growth of 5.2%, leading to a 5.4% increase in AFFO per common share. Our sustained organic performance, despite broader sector headwinds, demonstrates the strength and resilience of our platform. For the second half of the year, we will continue to be disciplined purchasers of assets and will remain opportunistic under our NCIB should our shares remain undervalued – as supported by recent private market transactions. At the same time, we will maintain a strong emphasis on cost control, while maximizing revenues, NOI and free cash flow.”
2025 Second Quarter Results
Revenue for the second quarter of 2025 increased to $83.5 million compared to $74.1 million in Q2 2024 and net operating income (“NOI”), a non-IFRS measure, grew to $55.2 million from $49.9 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 to $21.5 million at the end of the quarter. The Q2 2025 net loss of $6.2 million (net loss of $8.7 million for Q2 2024) is impacted by the following non-cash and non-recurring items – $27.3 million of depreciation and amortization, $0.1 million in stock based compensation, $1.1 million of interest accretion on convertible debentures, and deferred tax recovery of $2.0 million.
Revenue and NOI from Existing Self Storage stores increased by 6.6% and 5.2%, compared to the same period last year. Funds from operations (“FFO”), a non-IFRS measure, were $20.3 million for Q2 2025 compared to $19.7 million in Q2 2024, a 3.4% increase year over year. Adjusted funds from operations (“AFFO”), a non-IFRS measure, were $22.9 million for Q2 2025 compared to $22.3 million in Q2 2024, a 3.0% increase. On a per basic common share basis, FFO and AFFO increased by 5.8% and 5.4%.
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Our Q2 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 $8.3 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 and six months ended June 30, 2025 filed on SEDAR+ at http://www.sedarplus.ca.
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2025 Six Months Year to Date Results
Revenue for the six months ended June 30, 2025 increased to $159.8 million from $145.5 million, for the comparative period, a 9.8% increase, and NOI, a non-IFRS measure, grew to $102.9 million from $94.2 million, for the comparative period, a 9.2% increase. For the six months ended June 30, 2025, cash flow from operations was $47.0 million and when combined with our financing and investing activities resulted in a cash balance of $21.5 million. The net loss of $17.5 million for the six months ended June 30, 2025 (net loss of $16.6 million for 2024) is impacted by the following non-cash and non-recurring items – $53.9 million in depreciation and amortization, $1.0 million of unrealized loss on derivative financial instruments and deferred tax recovery of $4.1 million.
Our Revenue and NOI from Existing Self Storage, a non-IFRS measure, increased by 4.0% and 4.0%, compared to the same period last year. FFO, a non-IFRS measure, were $35.7 million compared to $34.8 million for the same period in 2024, a 2.6% increase year over year. AFFO, a non-IFRS measure, were $39.9 million compared to $38.9 million for the same period in 2024, a 2.6% increase year over year. On a basic common per share basis, FFO and AFFO increased by 4.9% and 4.9%.
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 and six months ended June 30, 2025 filed on SEDAR+ at http://www.sedarplus.ca.
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Increased Dividend
StorageVault is increasing its Q3 2025 dividend by 0.5% to $0.002976 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.
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Further Information
For comprehensive disclosure of StorageVault’s performance for the three and six months ended June 30, 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 and six months ended June 30, 2025 filed on SEDAR+ at http://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:
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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.
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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.
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Non-IFRS Financial Measures Reconciliation
The following table reconciles Net Income (Loss) and Net Operating Income:
(unaudited) (unaudited) Three Months Ended June 30 Six Months Ended June 30, 2025 Change Change 2025 2024 $% 2025 2024 $% Storage revenue and related services $ 82,977,334 $73,613,282 $9,364,052 12.7% $ 158,800,166 $144,558,152 $14,242,014 9.9%Management fees 543,614 498,207 45,407 9.1% 992,085 944,415 47,670 5.0% 83,520,948 74,111,489 9,409,459 12.7% 159,792,251 145,502,567 14,289,684 9.8%Operating costs 28,298,921 24,185,269 4,113,652 17.0% 56,914,731 51,333,818 5,580,913 10.9%Net operating income 1 55,222,027 49,926,220 5,295,807 10.6% 102,877,520 94,168,749 8,708,771 9.2% Less: Acquisition and integration costs 2,601,449 2,596,685 4,764 0.2% 4,214,300 4,109,279 105,021 2.6% Selling, general and administrative 6,348,400 6,471,995 (123,595)-1.9% 12,435,977 11,979,503 456,474 3.8% Interest 25,937,667 21,194,055 4,743,612 22.4% 50,535,615 43,284,527 7,251,088 16.8% Stock based compensation 83,959 230,332 (146,373)-63.5% 167,918 464,711 (296,793)-63.9% Realized (gain) loss on real estate (30,611) 680,899 (711,510)-104.5% 9,216 2,613,604 (2,604,388)-99.6% Unrealized (gain) loss on derivative financial instruments 7,751 2,525,569 (2,517,818)-99.7% 977,503 510,817 466,686 91.4% Interest accretion on convertible debentures 1,136,371 1,098,815 37,556 3.4% 2,266,267 2,204,027 62,240 2.8% Depreciation and amortization 27,282,165 25,451,003 1,831,162 7.2% 53,935,194 49,036,747 4,898,447 10.0% 63,367,151 60,249,353 3,117,798 5.2% 124,541,990 114,203,215 10,338,775 9.1%Net income (loss) before tax (8,145,124) (10,323,133) 2,178,009 21.1% (21,664,470) (20,034,466) (1,630,004)-8.1% Deferred tax (expense) recovery 1,979,501 1,634,782 344,719 21.1% 4,129,837 3,388,033 741,804 21.9%Net income (loss) after tax$ (6,165,623)$(8,688,351)$2,522,728 29.0% $ (17,534,633)$(16,646,433)$(888,200)-5.3%1Non-IFRS Measure. The following table reconciles Net Income (Loss), and Funds from Operations and Adjusted Funds from Operations:
(unaudited) (unaudited) Three Months Ended June 30 Six Months Ended June 30 2025 2024 Change 2025 2024 Change $% $%
