TORONTO, Aug. 05, 2021 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX-V) reported the Corporation’s 2021 second quarter results and increases its dividend. Iqbal Khan, Chief Financial Officer, commented:
“Strong fundamentals combined with the dedication from our amazing team resulted in exceptional same store performance, with 22.5% year over year increase in revenue and 25.2% increase in NOI in Q2. We continue to focus on accretive acquisitions and have acquired or announced $140 million in acquisitions and are revising our acquisition outlook to $200 million for the year. The market continues to be extremely strong and we are well positioned to take advantage of this for the balance of the year.”
2021 Second Quarter Results
Revenue for the second quarter of 2021 increased to $51.7 million compared to $37.4 million in Q2 2020 and net operating income (“NOI”), a non-IFRS measure, grew to $35.0 million from $25.3 million for the comparative period. Our cash flow from operations increased year over year and when combined with our financing and investing activities resulted in a cash balance of $27.3 million at the end of the quarter. The Q2 2021 net loss of $7.2 million (net loss of $8.7 million for Q2 2020) is after $23.3 million of depreciation and amortization and deferred tax recovery recorded in the quarter of $2.0 million. Both amounts are non-cash items.
As a result of our occupancy levels, revenue management program and operational efficiency, Revenue and NOI from existing self storage stores increased by 22.5% and 25.2%, compared to the same period last year. In the midst of COVID-19, the Corporation still achieved 3.0% Revenue and 3.1% NOI growth for Q2 2020. Funds from operations (“FFO”), a non-IFRS measure, were $14.3 million for Q2 2021 compared to $9.7 million in Q2 2020, a 47.5% increase year over year. Adjusted funds from operations (“AFFO”), a non-IFRS measure, were $16.6 million for Q2 2021 compared to $10.5 million in Q2 2020, a 57.0% increase. Both the FFO and AFFO continue to be muted by the operational and interest expenses related to the $114.6 million in new build and lease-up stores and raw land acquisitions completed in Q4 2020. In Q2 2021, these acquisitions reduced our FFO and AFFO by $0.3 million. The Corporation expects to be cash flow positive and realize the benefits of these acquisitions in fiscal 2022 and beyond.
For a reconciliation of the above NOI, FFO, and AFFO amounts to IFRS, please see pages 11 through 16 of the Corporation’s Management’s Discussion & Analysis for the three and six months ended June 30, 2021 filed on SEDAR at www.sedar.com.
2021 Six Months Year to Date Results
Revenue for the six months ended June 30, 2021 increased to $95.0 million from $73.3 million and NOI, a non-IFRS measure, grew to $62.4 million from $48.3 million, for the comparative period. For the six months ended June 30, 2021, cash flow from operations was $24.8 million and when combined with our financing and investing activities resulted in a cash balance of $27.3 million. The net loss of $18.6 million for the six months ended June 30, 2021 (net loss of $17.0 million for 2020) is after $45.4 million in depreciation and amortization ($40.6 million in 2020), which was offset by a deferred tax recovery of $4.2 million; both non-cash items.
Our revenue and NOI from Existing Self Storage, a non-IFRS measure, increased by 16.6% and 18.8%, compared to the same period last year. FFO, a non-IFRS measure, were $23.0 million compared to $17.6 million for the same period in 2020, a 30.4% increase year over year. AFFO, a non-IFRS measure, were $26.6 million compared to $19.4 million for the same period in 2020, a 37.5% 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 six months ended June 30, 2021 filed on SEDAR at www.sedar.com.
Increased Dividend
StorageVault is increasing its quarterly dividend by 0.5% beginning Q3 2021 to $0.002748 per common share.
The COVID-19 Pandemic
Since the commencement of the pandemic and for the future benefit of the Corporation, we modified our operating platform to continue to meet the strong demand for our services – these changes included improving our virtual systems to offer no-contact rental processes, installation of plexiglass partitions and limiting the number of customers in our offices to one at a time. Our teams are fully employed and clients are able to safely store and access their valuables. We are proud of our team for continuing to adapt to new processes and for their commitment to providing exceptional client and community service.
To date in fiscal 2021, we continue to experience a significant increase in leads and rentals which has resulted in higher occupancies and rental rates across our portfolio. These positive trends resulted in the Corporation achieving strong same store revenue and NOI growth. While clients may be further impacted, including through unemployment, the Corporation has experienced no meaningful increases in accounts receivable.
Since the start of the COVID-19 pandemic, the Corporation continued to execute on our strategies to attract clients through search engine marketing, improving our online presence, virtual community connection programs and the development of a national platform and initiatives to fulfill last mile storage needs. These efforts have allowed us to attract clients who are leveraging our national footprint to offer a complete storage, inventory management and mobilization solution through our self and portable storage and records management infrastructures.
As at June 30, 2021, we continue to generate significant cash flows from our operations, with $27.3 million in cash on hand. Our balance sheet, along with our strong relationships with our lenders, provides us with sufficient borrowing capacity, refinancing and liquidity options to take advantage of acquisition opportunities that meet our requirements, evidenced by the $140.7 million in acquisitions announced to date in fiscal 2021.
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 record management businesses.
Further Information
For comprehensive disclosure of StorageVault’s performance for the three and six months ended June 30, 2021 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, 2021 filed on SEDAR at www.sedar.com.