Storagevault Canada Inc T.SVI

Alternate Symbol(s): T.SVI.DB.C | SVAUF | T.SVI.DB | T.SVI.DB.B

StorageVault Canada Inc. is a Canada-based storage company. The Company's primary business is owning, managing and renting self-storage and portable storage space to individual and commercial customers. The Company is represented regionally under various brands, including Access Storage, Sentinel Storage, Depotium Mini-Entrepot, Cubeit Portable Storage, StorageVault, PUPS Containers, FlexSpace Logistics, movebuddy and others. It owns and operates 244 storage locations across Canada. It owns 213 of these locations plus over 5,000 portable storage units representing over 11.8 million rentable square feet on over 690 acres of land. The Company also provides last mile storage and logistics solutions and professional records management services, such as document and media storage, imaging, and shredding services.

TSX:SVI - Post by User

Storagevault Canada Inc > RBC

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Jul 28, 2022 8:56am

130 Views

Post# 34856428

RBC

Their upside scenario target is $9.25. GLTA

July 27, 2022

StorageVault Canada Inc.
Strong Q2: FFO/share +29% y/y, far outpacing inflation

TSX: SVI | CAD 6.19 | Outperform | Price Target CAD 8.00

Sentiment: Positive

First Look: StorageVault Canada Inc. (“SVI”) reported a strong quarter with FFO/share (excl’ acquisition costs) of $0.058, +29% y/y, vs. RBC/consensus of $0.051/$0.05. The 14% beat came from higher NOI, with SP NOI growth of 14% vs. a tough comp last year. Current pace of growth is far outpacing inflation. While we believe the outsized SP NOI growth (partly covid-induced) should normalize to the mid to high single digit level at some point, current google trend search for storage would suggest that elevated demand could continue in the near term.

Key points:

SP NOI growth (self storage): +13.6% (Rev +13.4%, Exp +12.7%); Growth is being driven by continued revenue management and higher occupancy. Opex pressures came from advertising, property taxes and wages. While the pace of growth has decelerated from 18% in Q1, the quarter is lapping a tough comp a year ago (Q2/21 NOI +25%)
SP NOI margin (self storage): 72% (flat y/y). New store NOI margin was 60%, where we see upside as the acquisitions are integrated into the SVI platform and program.
Capital allocation: SVI completed the acquisition of 6 stores for $169m (one related party), funded with $5m shares (at ~$6.14 per share), and the remainder with a promissory note and mortgage financing. YTD acquisitions total $214m. SVI remains active on the NCIB having acquired $6.4m at an average price of $5.75/share YTD.
Dividend increase: as previously announced, quarterly dividend was increased modestly by 0.5% to $0.0028/share
Leverage: Net debt/annualized EBITDA 10.5x vs. 11x last year. Average cost of debt stood at 4.2% with an average term of 3.84 years (excluding lines of credit).