CIBCThey currently have an $8.25 target. GLTA
EQUITY RESEARCH
February 23, 2022 Flash Research
STORAGEVAULT CANADA INC.
Q4/21 First Look: A Good Ending To Another Pandemic Year
Our Conclusion
SVI produced a solid Q4/21, coming in line with our estimates and
consensus on strong revenue and NOI growth. The year ahead continues to look bright, with the recovering Canadian economy and inflation representing tailwinds. Deals remain a source of growth in the fragmented self-storage space; management expects to complete more than $100MM of acquisitions this year – which looks readily achievable as it has already completed $45MM.
Key Points
SVI grew NOI by ~33% Y/Y to $37.8MM, in line with our $37.6MM estimate and similar consensus. Revenues of $56.8MM were up ~35% Y/Y, coming in just above our $55.8MM estimate and similar consensus. NOI margin of 66.5% was a touch under our 67.5% estimate (roughly offset by higher revenues). Same-store growth was strong, up 17.5% for NOI and 16.9% for revenues.
FFO/share of $0.04 and AFFO/share of $0.05 were both in line with our estimates and consensus. SVI announced a nominal 0.5% dividend increase; yield remains at 0.2%.
The balance sheet remains in good shape, with current debt-to-GBV of ~66% (recall income-producing properties are not carried on the balance sheet at fair value). The weighted-average interest rate is 3.89% and weighted- average term to maturity is just over four years. Of this year’s principal repayments of $650MM (~50% of $1.33B outstanding debt), ~$214MM is on mortgages (at 4.33% WAIR) and are expected to be refinanced; another ~$390MM is on covenant-based lines of credit and do not require repayment if covenants are met (SVI is currently in compliance).